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News and Press

News Archive 2012

CFO.com magazine

The election will not remove uncertainty

As long as the macroeconomy is uncertain, the common wisdom says, business won't invest. And as long as business refrains from investing, "the economy contracts, generating a recession", according to a June article by Scott Baker and Nicholas Bloom of the [sic] Stanford Center for Economic Performance, and Steven Davis of Chicago Business School.

This article appeared in CFO.com magazine on November 6, 2012
Link to article

Related publications
'Economic Recovery and Policy Uncertainty', CEP US Election Analysis No.2 by Nicholas Bloom and John Van Reenen, October 2012
Policy uncertainty: a new indicator, by Scott R. Baker, Nicholas Bloom and Steven J. Davis. Article in CentrePiece Volume 16, Issue 3, Winter 2011/2012

Related links
Nicholas Bloom webpage
John Van Reenen webpage
Productivity and Innovation Programme webpage

News Posted: 06/11/2012      [Back to the Top]

Vox

Apprenticeship policy in England: Increasing skills versus boosting young people's job prospects

In her article, Hilary Steedman writes:
As in every downturn, youth unemployment is a serious concern. This column looks at apprenticeship policy in England. It argues that England is a long way off the apprentice numbers of countries like Germany but with a clear strategy, some nudging, and flexibility, England could realistically aim for the prize that has so far eluded it – higher skills and high youth participation in the workforce.

The article was published by Vox on October 6, 2012
Link to article

Related links
Hilary Steedman webpage
Education and Skills Programme webpage
Hilary Steedman CEP Publications webpage

News Posted: 06/10/2012      [Back to the Top]

The Evening Standard

Sort out the apprentice system

Letter by Ruth Stivey
Miliband's suggestion of getting employers to 'own' the system by delegating budgets to them is a radical and attractive idea since lack of employer interest in apprenticeships is a major problem. If the 'Tech Bacc' raises the prestige of technical skills I am all for it. John Van Reenen, director of the Centre for Economic Performance, LSE YOU report that Goldman Sachs is taking 10 apprentices and RBS 14. What about small businesses, like my building company, which have taken on apprentices for many years?

The article was published in The Evening Standard on October 5, 2012
Link to article

Related links
John Van Reenen webpage
Productivity and Innovation Programme webpage
John Van Reenen CEP publications webpage

News Posted: 05/10/2012      [Back to the Top]

Huffington Post

Grand illusion: mobility, inequality, and the American Dream

Studies of social mobility as far back as the 1950s and 1960s showed that rates of movement in the United States were generally comparable to other developed countries. This finding itself challenged the longstanding image of America as exceptionally open, but it is a far cry from today, when the United States rates at or near the bottom in comparative studies of social mobility. To take just two examples, a study by Jo Blanden and colleagues at the London School of Economics found that a father's income was a better predictor of a son's income in the United States than in seven other countries, including Germany, Canada, and the United Kingdom.

This article was published in the Huffington Post on October 2, 2012

Related publications

Related Links
Jo Blanden webpage
Stephen Machin webpage
Paul Gregg webpage



News Posted: 02/10/2012      [Back to the Top]

Marketplace

Eurozone members wary of buying other countries' bonds

Today, many French and German banks have cut the amount of debt they hold from troubled euro zone countries by half. And practically the only buyers of Spanish debt are Spanish banks. Ditto for Italy. Not only does that make borrowing more expensive, the fear is that -- like any relationship -- a separation of the eurozone's finances could make it easier for the euro to break up completely...

Related links
Francesco Caselli webpage
Macro Programme webpage

News Posted: 02/10/2012      [Back to the Top]

Guardian

Public sector pay stays neck and neck with private sector for the long race

Over a whole career, men in the public sector will earn the same as their commercial peers - and women will do better.

It is essential that any proposed reforms of the total remuneration package available to current and future public sector employees are evaluated carefully...

Related publications
Are public sector employees overcompensated? by Alexander Danzer, Peter Dolton. Article in CentrePieceVolume 17, Issue 2, Autumn 2012
This article summarises 'Total Reward and Pensions in the UK in the Public and Private Sectors' by Alexander Danzer and Peter Dolton, Labour Economics 19(4): 584-594, August 2012

Related links
Peter Dolton webpage
Education and Skills Programme webpage

News Posted: 01/10/2012      [Back to the Top]

The Atlantic

Here's one tax break all Americans can support

The future of the American worker depends on research and innovation.

This matters not just for Apple's profits, but for the future of the American economy. Although patents in theory protect intellectual property, in practice, innovative companies that invest in research appropriate just some of the benefits of their efforts. This is an unavoidable feature of the way innovation is created today and the speed at which new ideas and new knowledge spread in the tech industry. The magnitude of these knowledge spillovers is substantial. In two of the most rigorous studies to date, economists Nick Bloom of Stanford and John Van Reenen of the London School of Economics followed thousands of firms and found that the spillovers were so large that R&D investments of one firm raised not only the stock price of that firm but also the stock price of other firms in the same industry.

Related publications
Trade Induced Technical Change? The Impact of Chinese Imports on Innovation, Diffusion IT and Productivity, Nicholas Bloom, Mirko Draca and John Van Reenen, Centre for Economic Performance Discussion Paper No.1000, January 2011
Identifying Technology Spillovers and Product Market Rivalry, Nicholas Bloom, Mark Schankerman and John Van Reenen, Centre for Economic Performance Discussion Paper No.675, updated September 2010

Related links
Nick Bloom webpage
Mirko Draca webpage 
John Van Reenen webpage
Productivity and Innovation Programme webpage



News Posted: 28/09/2012      [Back to the Top]

SERC / Grantham Research Project Launched

An investigation of the Carbon Footprint of the Retail Sector

New SERC/Grantham project launched: an investigation of the Carbon Footprint of the Retail Sector

LSE's Spatial Economics Research Centre and Grantham Research Institute have begun a new collaborative project exploring the environmental effects of town centre first planning, and its impact on retail sector carbon footprints.

Land use regulation policies shape the location and the size of retail sites in the UK. The justification for Town Centre First Policies (TCFP) when they were imposed in England in 1996 rested strongly on their supposed ability to facilitate ‘linked trips’ and a desire to retain access to shopping for poorer households without cars. The main supposed benefit, therefore was that TCFP was worthwhile because of environmental and distributional gains, i.e. town centre sites were the most “sustainable”. Based on the premise that town centres are the most accessible location for alternative (non-car) means of transport and reduce the need to travel, imposing TCFP was expected to reduce the carbon footprint of the retail sector and help make the distribution of real incomes fairer.

In on-going work, Professor Paul Cheshire SERC and LSE Geography and Dr Christian Hilber (SERC and LSE Geography) are researching the implications of TCFP on the cost side, specifically, on the productivity of the retail sector The findings of this research suggest that both TCFP and more restrictive local application of planning policies impose substantial costs in terms of foregone output on the retail sector. This new SERC/Grantham project with Dr Rosa Sanchis-Guarner (SERC and Grantham) follows up by focusing on the claimed benefits of TCFP and rigorously evaluating them. The project aims to test if TCFP does in fact reduce the overall carbon footprint of retail. While TCFPs may facilitate ‘linked trips’ and make shopping trips without cars easier (the claimed benefits), there are a number of reasons to suspect that the overall carbon footprint effect of TCFP may be negative – the claimed benefits may be, in other words, another cost.

First, even if TCFP has encouraged some substitution towards public transport, most consumers still use private cars to go shopping (according to the National Travel Survey, in 2010 around 65% of shopping trips in GB were done by car/van, 22% by foot and only 10% of shopping trips were done by local bus or rail). Second, given that population has continued to decentralise, shopping patterns could have been adversely affected if retail is forced to locate in town centres while consumers increasingly live out of town. Average shopping trips might have been made longer and almost certainly diverted to more congested conditions. More frequent and longer trips by car to congested town centres can have potential adverse effects on carbon emissions associated with shopping trips. Carbon emissions and other toxic gases can also have harmful effects on population health outcomes. Third, on the logistics side, while there are no potential offsetting gains from the increased use of public transport, access for deliveries will almost certainly have been made more congested, lorry sizes reduced and distances from distribution depots on the outskirts of towns accessible to the motorway network, increased. Moreover, more expensive space and smaller shop sizes reduces storage space within shops, increasing the frequency of deliveries. Finally, previous research has shown that one impact of TCFP was to reduce the rate of retail development and this is reflected in an aging retail estate. Older buildings are less energy efficient.

Overall, therefore, the likely effects of TCFP on sustainability are unclear. The research of this project, using various datasets on shopping patterns, gas emissions and store energy use, aims to evaluate the effect of land use planning policies on the carbon footprint, emissions and energy use in the retail sector. Additionally, it also aims to analyse the effect of carbon emissions stemming from the retail sector on air pollution and population health outcomes. Finally, the carbon footprint effects of the emergence of internet shopping and how this affects traditional shopping trips (and their carbon footprint) would also be explored.

The methodology aims to estimate causal effects, including the precise role of different land use policies on the carbon footprint of the retail sector. Subject to data availability we also aim to explore the related distributional effects of TCFP as well as potential substitution effects: consumers may choose to shop online to avoid congested and inconvenient shopping trips by public transport or foot to town centre retailers.

For more details contact Dr Rosa Sanchis-Guarner.

News Posted: 27/09/2012      [Back to the Top]

Not the treasury view blog spot

The impact of alternative paths of fiscal consolidation on output and employment

In a blog, Jonathan Portes writes, NIESR has just published research estimating the economic impact of immediate versus delayed fiscal consolidation in the UK. The research was undertaken by Dawn Holland (NIESR), John Van Reenen, Professor of Economics at the London School of Economics and Director of the Centre for Economic Performance, and Nitika Bagaria, a Phd student also at LSE and CEP.

This article appeared in Not the Treasury View blog on Friday 3 August, 2012
Link to article

Related publications
Fiscal Consolidation During a Depression, Nitika Bagaria, Dawn Holland and John Van Reenen, Centre for Economic Performance Special Paper No.27, August 2012
Fiscal Consolidation During a Depression, Nitika Bagaria, Dawn Holland and John Van Reenen. Article in the National Institute Economic Review, July 2012; vol. 221, 1: pp. F42-F54.

Related links
Nitika Bagaria webpage
John Van Reenen webpage
Productivity and Innovation Programme webpage

News Posted: 03/08/2012      [Back to the Top]

Noticias de Alava

Los expertos piden mutualizar la deuda y la intervención del BCE

…el punto muerto: la senda hacia la salida de la crisis. Entre los españoles figuran Luis Garicano, del London School of Economics, o Guillermo de la Dehesa. También suscriben el documento los alemanes Lars...
Experts call to mutualise debt and for the intervention of the ECB
Seventeen prestigious European economists demand a collective response to the harassment of the euro
Economists, grouped at the Institute for New Economic Thinking, have the document entitled Breaking the deadlock: the path to ending the crisis. Among the listed Spanish, Luis Garicano of the London School of Economics, and Guillermo de la Dehesa.

The article was published in Noticias de Alava on Wednesday 25 July, 2012
Link to article

Related links
Luis Garicano webpage
Productivity and Innovation Programme webpage

Also published:
Tuesday 24 July
Capital Madrid
Tormenta política en Australia por comparar a Queensland con la Espana 'en quiebra'

El Mundo
17 grandes economistas exigen que intervenga el BCE y mutualizar la deuda

Economia Digital
Los economistas llaman a Draghi

Economia Digital
Economistes europeus exigeixen al BCE que actuï immediatament per salvar a Espanya

El Mundo
17 grandes economistas exigen mutualizar la deuda y que intervenga el Banco Central Europeo

UGT
Expertos proponen medidas para evitar un desastre incalculable

News Posted: 25/07/2012      [Back to the Top]

Daily Mail

Spain edges closer to disaster as the euro crisis apreads

Euro doomed, say experts
The euro has broken down and faces collapse with 'incalculable economic losses and human suffering', according to an extraordinary warning from a group of leading economists. The experts include two members of Germany's Council of Economic Experts and leading euro specialists at the London School of Economics [Luis Garicano and Guillermo de la Dehesa], all of whom support the single currency.

This article appeared in The Daily Mail on Wednesday 25 July, 2012
Link to article

Related links
Luis Garicano webpage
Productivity and Innovation Programme webpage

News Posted: 25/07/2012      [Back to the Top]

LSE Public Debate

Ending the Housing Crisis: Should we ever build on the Green Belt?

Organised by British Governement@ LSE and LSE London, this event forms part of the LSE Hot Topics series. House prices in Britain remain exceptionally high. We urgently need more housing, but where should we build it? Can we meet our needs by redeveloping existing built up areas? Or does the problem call for more radical solutions.

On Wednesday 27 June 2012, Professor Henry Overman, Alex Morton, Professor Anne Power and Tony Burton will debate the issue.

For more information including time, venue and registration details, please visit the SERC website http://www.spatialeconomics.ac.uk/SERC/events/special.asp#greenbelt

Visit Henry Overman's webpage
Visit British Government@LSE website
Visit LSE London website

 



News Posted: 26/06/2012      [Back to the Top]

The Sun

Breakdown SOS

MENTAL health is such an important issue it deserves its own Government minister, says a top professor.The call by Lord Layard follows an explosion in mental illness. It now accounts for almost half of all sickness in the UK - including 700,000 child victims. His team of experts at the respected London School of Economics found three-quarters of sufferers get no treatment. Professor Lord Layard said of the epidemic: "It needs its own Cabinet minister."

This article appeared in The Sun on June 18, 2012
[No link available]

Related publications
'How Mental Illness Loses Out in the NHS'. A report by the Centre for Economic Performance's Mental Health Policy Group. Published June 18, 2012.
Details
Download the report here

Related links
Richard Layard webpage
Mental Health Policy Group webpage
Wellbeing Programme webpage

News Posted: 18/06/2012      [Back to the Top]

The Daily Telegraph

Mental illness accounts for nearly half of all ill health, as report claims NHS 'fails' to meet needs of sufferers

Despite its prevalence, three-quarters of people suffering from mental illness are not getting treatment as the NHS fails to meet their needs, according to a report. The authors, from the Mental Health Policy Group at the London School of Economics (LSE), claim the under-treatment of people suffering from mental illnesses is the most "glaring case of health inequality" in Britain.

The article was published in The Daily Telegraph on June 18, 2012
Link to article

Related publications
'How Mental Illness Loses Out in the NHS'. A report by the Centre for Economic Performance's Mental Health Policy Group. Published June 18, 2012.
Details
Download the report here

Related links
Richard Layard webpage
Mental Health Policy Group webpage
Wellbeing Programme webpage

News Posted: 18/06/2012      [Back to the Top]

The Guardian

Look at the evidence

Mental health problems account for nearly 40% of all illness but only 13% of NHS funds are devoted to their treatment, according to a major report published today by the London School of Economics.

The article appeared in The Guardian on June 18, 2012
Link to article

Related publications
'How Mental Illness Loses Out in the NHS'. A report by the Centre for Economic Performance's Mental Health Policy Group. Published June 18, 2012.
Details
Download the report here

Related links
Richard Layard webpage
Mental Health Policy Group webpage
Wellbeing Programme webpage

News Posted: 18/06/2012      [Back to the Top]

The Guardian

Scandal of mental illness: only 25% of people in need get help

Talking therapies such as cognitive behaviour therapy relieves anxiety and depression in 40% of those treated, says the Mental Health Policy Group led by Lord Layard. But despite government funding to train more therapists, availability is patchy with some NHS commissioners not spending the money as intended, and services for children being cut in some areas. "It is a real scandal that we have 6 million people with depression or crippling anxiety conditions and 700,000 children with problem behaviours, anxiety or depression," says the report. "Yet three quarters of each group get no treatment."

The article appeared in The Guardian on June 18, 2012
Link to article


Related publications
'How Mental Illness Loses Out in the NHS'. A report by the Centre for Economic Performance's Mental Health Policy Group. Published June 18, 2012.
Details
Download the report here

Related links
Richard Layard webpage
Mental Health Policy Group webpage
Wellbeing Programme webpage

News Posted: 18/06/2012      [Back to the Top]

Department of Geography and Environment Public Lecture

Professor Diane Coyle on 'Enough: policies for a sustainable economy'

Public Lecture - Enough: Policies for a sustainable economy

On Thursday 14 June, the LSE Department of Geography and the Environment will host a public lecture by Professor Diane Coyle on "Enough: policies for a sustainable economy".

The world's leading economies are facing many crises. What these crises have in common is a reckless disregard for the future. This lecture examines the policy changes necessary to run the economy for tomorrow as well as today.

Diane Coyle runs Enlightenment Economics. She is vice chair of the BBC Trust, and a visiting professor at the University of Manchester.

The lecture runs from 6.30 - 8.00pm and will take place in the New Theatre, LSE East Building, Houghton Street, London WC2A 2AE. Professor Henry Overman will chair this event. Full details can be found on the LSE Events website at the following link: http://www2.lse.ac.uk/publicEvents/events/2012/06/20120614t1830vNT.aspx.

Go to SERC website
Henry Overman's webpage

News Posted: 29/05/2012      [Back to the Top]

CEP Press Release

Executive Pay: share ownership by institutional investors improves the link to corporate performance

Executive Pay:

Share ownership by institutional investors improves the link to corporate performance

Publicly quoted UK firms with higher levels of institutional ownership of their shares have a stronger and more symmetric link between corporate performance and executive pay.

That is one of the findings of new research by Dr Brian Bell and Professor John Van Reenen of the Centre for Economic Performance (CEP).

Download full press release here

Related links:
Brian Bell webpage
John Van Reenen Webpage webpage
Productivity Programme webpage



News Posted: 04/05/2012      [Back to the Top]

Radio Netherlands

'The Dutch are a happy people'

The Netherlands ranks fourth on a list of the world’s most contented nations. The list, drawn up by three economists, was published on the eve of a UN conference on happiness. Economists John Helliwell, Richard Layard and Jeffrey Sachs analysed a series of studies and surveys conducted in the past few years. The three researchers used a number of parameters including income, freedom, trust in the government and life expectancy.

The programme was broadcast on Radio Netherlands on April 3, 2012
Link to article

Related publications
World Happiness Report, John Helliwell, Richard Layard and Jeffrey Sachs (eds), Columbia University's Earth Institute, April 2012
Details

Related links
Richard Layard webpage
Wellbeing Programme webpage

News Posted: 03/04/2012      [Back to the Top]

Commentary on Budget 2012

Wanted - A real budget for Growth

The Chancellor delivered his third budget yesterday. CEP Director Professor John Van Reenen gives his initial reaction. There were some positive steps such as the extension of personal allowances, but the Budget had an empty core. There is a missed opportunity for coherent tax reform, no retreat from a failing macro-economic policy, insufficient attention to policy evaluations and most damagingly, no credible plan for long-term growth.

Link to full article

Related links
John Van Reenen webpage
LSE Growth Commission webpage


News Posted: 22/03/2012      [Back to the Top]

International Herald Tribune

For youths in Britain, few jobs and rising anger

Youngsters in Britain are becoming increasingly desperate, as youth unemployment has soared to 22.3 per cent. Increases in apprenticeships are proposed as one possible solution. LSE economist, Hilary Steedman comments.

This article was published in the International Herald Tribune (The New York Times) on February 15, 2012 Link to article

Also in
Thursday 16 February
Pittsburgh Post-Gazette
Britain's youth face sense of down and out

Related publications
Apprenticeship Policy in England: Increasing Skills versus Boosting Young People's Job Prospects, Hilary Steedman, Centre for Economic Performance Policy Analysis, December 2011
The State of Apprenticeship in 2010. International Comparisons: Australia, Austria, England, France, Germany, Ireland, Sweden, Switzerland. Centre for Economic Performance Special Report for the Apprenticeship Ambassadors Network by Hilary Steedman, September 2010

Related links
Hilary Steedman webpage
Education and Skills Programme webpage

News Posted: 15/02/2012      [Back to the Top]

Labour Party

Rethinking mental health in the twenty-first century – speech by Andy Burnham

Andy Burnham MP, Labour's Shadow Health Secretary, in a speech to the Centre for Social Justice, said: I recently shadowed a GP in Coventry and was surprised by the number of time he referred to IAPT. As he said, a huge step forward and an avenue that simply wasn't available only a few years ago. It came about because of Lord Richard Layard's work, who made both the social justice case, but also the economic case.

Posted on the Labour Party website on January 31, 2012. Link to the speech

Related publications
Happiness: Lessons from a New Science, Richard Layard. Penguin books, 2011 (second edition) Details
Measuring Subjective Wellbeing for Public Policy, Paul Dolan, Richard Layard, and Robert Metcalfe (2011), Office of National Statistics, February

Related links
Richard Layard webpage
Wellbeing Programme webpage
Happiness Researchwebpage

News Posted: 31/01/2012      [Back to the Top]

Launch of LSE Growth Commission

Press Release

The LSE Growth Commission has been created to provide an authoritative input to a growth strategy for the United Kingdom. The commission will report within one year and along the way it will take evidence from leading figures from academia, business and policy.

To launch the commission, Larry Summers (Harvard and former US Treasury Secretary) and Steve Nickell (Nuffield College Oxford and OBR) will give evidence on how to improve the growth performance of the UK economy in the medium to long-term.

For more information on the launch event please go to event webpage

Download the press release (PDF)

Related Links
LSE Growth Commissioner biographies (PDF)
Institute for Government webpage



News Posted: 20/01/2012      [Back to the Top]