Results

CEP discussion paper

Revisiting test score forecasts and teacher value-added

We develop a framework for comparing forecasts in teacher value-added models. We apply it to interpret the teacher-switching test of Chetty, Friedman, and Rockoff (2014), showing that the teacher-switching coefficient ca...Read more...

Journal article

Review of World Economics:

The changing structure of global value chains and technological change: evidence from the firm-level patent data

This paper explores how changes in the relative position in the Global Value Chains (GVCs) affect firms? innovation activities. The analysis combines matched patent-firm data with information on GVC networks from the OEC...Read more...

CEP discussion paper

The economics of the electric vehicle transition: demand, supply chains, and innovation

Electric vehicles (EVs) are central to decarbonising transport, a sector responsible for 23% of global energyrelated emissions, and their adoption carries both economic and societal implications. This paper provides an e...Read more...

Blog

VoxDev:

Is quality upgrading in agriculture a path to poverty reduction?

Under standard conditions in the Colombian coffee sector, the benefits of producing better coffee are not passed on to farmers, weakening their incentives to invest in higher-quality production. However, when a large int...Read more...

Journal article

The Review of Economics and Statistics:

The importance of student-teacher matching: a multidimensional value-added approach

We propose a framework for value-added models that flexibly characterizes heterogeneous teacher productivity based on multidimensional student characteristics. We show that teacher effectiveness heavily depends on the sp...Read more...

CEP discussion paper

On the shoulders of giants: financial spillovers in innovation networks

Do markets price knowledge spillovers? We show that patent grants influence the stock returns of firms that are connected through technological knowledge dependencies. Using directed patent citations among publicly liste...Read more...

CEP occasional paper

The full returns to higher education in the UK

University education is known to generate significant earnings returns, but its full value may be understated without considering its wider effects on individual wellbeing. This paper estimates the complete lifetime retu...Read more...

Journal article

Journal of Human Resources:

Closing the gap between vocational and general education?

Vocational education delivery is widely debated, with ongoing efforts to improve its effectiveness. In 2010, England introduced University Technical Colleges (UTCs), hybrid institutions combining general and vocational e...Read more...

CEP occasional paper

Mapping Functions for Wellbeing Measures to Generate WELLBYs for Use in Economic Evaluation

Ideally, outcome measurements for interventions that affect wellbeing would report the standard, ONS recommended, life satisfaction question. Responses to this question directly correspond to WELLBYs, which can be moneti...Read more...

CEP discussion paper

Shocked by Covid: exporting along global value chains

This paper examines the impact of protectionist policies on exports within global value chains (GVCs), using the COVID-19 pandemic as a natural experiment. Leveraging UK customs data (2017-2020) and a shift-share identif...Read more...

CEP discussion paper

Willingness to pay for workplace amenities

We develop a revealed preference approach to measure the value of workplace amenities by analyzing how variation in non-wage job attributes affects excess mass in the earnings distribution at budget discontinuities. The ...Read more...

CEP occasional paper

The C-WELLBY: Towards a Universal Measure of Children's Wellbeing for Policy Analysis

There is a pressing need for a universal measure of children's wellbeing, parallel to the WELLBY, for use in cost-benefit analysis. Currently, there is no consensus on how to value the wellbeing of children, raising conc...Read more...

Journal article

Journal of Human Resources :

Where versus what: college value-added and returns to field of study in further education

We use administrative records on educational and labor market trajectories to estimate the value-added of English further education colleges in terms of educational and labor market outcomes and earnings returns to diffe...Read more...

CEP discussion paper

Shock therapy for clean innovation: within-firm reallocation of R&D investments

We analyze how a major negative shock to the producers of fossil fuels may lead to a shift from dirty to clean R&D along the supply chain. First, we develop a theoretical framework of directed technical change, showing t...Read more...

Journal article

International Journal of Industrial Organization:

VAT pass-through and competition: evidence from the Greek islands

We examine how competition affects VAT pass-through in isolated oligopolistic markets as defined by the Greek islands. Using daily gasoline prices and a difference-in-differences methodology, we investigate how changes i...Read more...

Journal article

Economics of Education Review:

Teacher value-added and gender gaps in educational outcomes

This paper uses rich administrative data from Chile to estimate teacher value added (TVA) on test scores and on an educational attainment index. We allow each teacher to have a different TVA for male and female students ...Read more...

CEP discussion paper

Teacher value-added and gender gaps in educational outcomes

This paper uses rich administrative data from Chile to estimate teacher value added (TVA) on test scores and on an educational attainment index. We allow each teacher to have a different TVA for male and female students ...Read more...

CEP discussion paper

The organizational economics of school chains

We use the insights of firms' organizational economics to study school chains' organization. We match information on decentralization of activities for approximately 400 chains and 2,000 schools in England to student and...Read more...

Journal article

Regional Studies:

Global production networks meets evolutionary economic geography

Two of the canonical approaches in regional studies are global production networks (GPNs) and evolutionary economic geography (EEG). Recent geopolitical and economic events have shown the importance of both theories in e...Read more...

CentrePiece article

How much is your time worth?

Wages indicate how much people want for their time at work, but how can we find out what value they place on time spent doing other things? Christian Krekel and George MacKerron analyse over two million responses to a sm...Read more...

CentrePiece article

Geopolitics and the electric vehicle revolution

Rising demand for electric vehicles (EVs) is changing the geopolitical landscape, as the world pivots away from fossil fuels towards the green minerals critical to the EV supply chain. Benjamin Jones, Viet Nguyen-Tien, R...Read more...

Blog

Trade Talks:

Did responsible sourcing by multinationals help workers in poor countries? (podcast)

A series of industrial accidents that killed workers in the supply chains of multinational corporations triggered backlash by Western consumers. In response, many global companies committed to treat workers in poor count...Read more...

CEP discussion paper

Back to Edgeworth? Estimating the value of time using hedonic experiences

Following early economist Francis Y. Edgeworth's proposal to measure people's hedonic experiences as they go about their daily lives, we use a smartphone app that surveyed a panel of 30; 928 individuals UK-wide over seve...Read more...

External report

Trading up

After nearly half a century of EU membership, Britain needs a trade strategy. The stakes are high: such a strategy shapes what families and firms buy from abroad, and what gets produced domestically; influences our jobs,...Read more...

CEP discussion paper

VAT pass-through and competition: evidence from the Greek Islands

We examine how competition affects VAT pass-through in isolated oligopolistic markets as defined by the Greek islands. Using daily gasoline prices and a difference-in-differences methodology, we investigate how changes i...Read more...

Journal article

AEA Papers and Proceedings:

The local labor market effects of modern manufacturing capital: evidence from France

Using an event study methodology and comprehensive micro data from the French manufacturing sector, we analyze the local labor market effects of investments in modern manufacturing capital, including modern automation te...Read more...

Journal article

Research Policy:

Global value chains and domestic innovation

This paper explores how changes in both position and participation in Global Value Chain (GVC) networks affect firm innovation. The analysis combines matched patent-firm data for Japan with measures of GVC network centra...Read more...

CEP discussion paper

Responsible sourcing? Theory and evidence from Costa Rica

Multinational enterprises (MNEs) increasingly impose "Responsible Sourcing" (RS) standards on their suppliers worldwide, including requirements on worker compensation, benefits and working conditions. Are these policies ...Read more...

Journal article

International Review of Economics and Finance :

Bank default risk propagation along supply chains: evidence from the UK

How does banks' default risk affect the probability of default of non-financial businesses? The literature has focused on the banks' direct corporate customers. It fails to consider the role of supply chain relationships...Read more...

Blog

FRBSF Economic Letter:

Supply Chain Disruptions, Trade Costs, and Labor Markets

Global supply chain disruptions due to the Covid-19 pandemic have increased the costs of trade between countries. Given the interconnectedness of the US economy with the rest of the world, higher trade costs can have imp...Read more...

Blog

Vox EU:

Responsible sourcing: Theory and evidence from Costa Rica

There is growing pressure on multinational enterprises to implement 'responsible sourcing' requirements for their suppliers in low- and middle-income countries. These include minimum standards on working conditions, such...Read more...

Journal article

The World Economy:

The electric vehicle revolution: critical material supply chains, trade and development

The emergence of a mass market for electric vehicles (EVs) offers development opportunities for countries that have abundant resources of cobalt, nickel, lithium, copper, aluminium and manganese. Not surprisingly, develo...Read more...

Blog

Vox Dev:

Responsible sourcing? Theory and evidence from Costa Rica

The authors investigate whether responsible sourcing policies implemented by multinational enterprises for their suppliers have impacts on the ground and, if they do, what these mean for firms and workers in the host cou...Read more...

Journal article

The Quarterly Journal of Economics:

The effects of joining multinational supply chains: new evidence from firm-to-firm linkages

We study the effects of becoming a supplier to multinational corporations (MNCs) using tax data tracking firm-to-firm transactions in Costa Rica. Event study estimates reveal that domestic firms experience strong and per...Read more...

Journal article

Strategy Science:

Local value chains in European MNEs

Ghemawat's work in international business strategy demonstrates that Multinational Enterprises (MNEs) create value both by overcoming and by exploiting the price differences that exist at country borders. This paper eval...Read more...

CentrePiece article

How Brexit has raised UK food prices

Some products imported to the UK from the European Union have been more affected by the post-Brexit trading rules than others. Jan David Bakker, Nikhil Datta, Josh De Lyon, Luisa Opitz and Dilan Yang find that leaving th...Read more...

External report

Post-Brexit imports, supply chains, and the effect on consumer prices

This report documents the decrease in imports and shows how the patterns of imports vary across sectors following the UK's departure from the Single Market and Customs Union at the end of 2020. The authors, Jan David Bak...Read more...

Journal article

Annual Review of Economics :

Risks and global supply chains: what we know and what we need to know

Recent supply disruptions catapulted the issue of risk in global supply chains (GSCs) to the top of policy agendas and created the impression that shortages would have been less severe if GSCs had been either shorter and...Read more...

Blog

VoxEU:

Global supply chain risk and resilience

Supply disruptions caused by systemic shocks such as Brexit, Covid, and Russia-Ukraine tensions have catapulted the issue of risk in global supply chains to the top of policy agendas. In some sectors, however, there is a...Read more...

CEP discussion paper

Technology transfer in global value chains

Firm-to-firm relationships in global value chains create opportunities for North-South technology diffusion. This paper studies technology transfer in value chains when contracts are incomplete and in-put production tech...Read more...

Blog

Vox EU:

Service offshoring and export experience

Trade in services is important but difficult to measure. This column introduces a new dataset that helps understand the contribution of services to global value chains and their role in the process of exporting goods. Fi...Read more...

Journal article

Journal of Environmental Economics and Management:

Green product innovation in industrial networks: a theoretical model

Previous studies have modeled green technological change as innovations in the process of production (e.g., abatement technologies or energy sources). But greening the economy also requires changing products. The automot...Read more...

Blog

LSE US Centre:

Trade protection along supply chains: how antidumping measures against China hurt downstream industries

Production processes are often no longer confined to a single country; supply chains can be fragmented across great distances. By contrast, tariffs are often used by individual countries to protect certain industries. In...Read more...

CEP discussion paper

Trade protection along supply chains

During the last decades, the United States has applied increasingly high trade protection against China. We combine detailed information on US antidumping (AD) duties? the most widely used trade barrier ? with US input-o...Read more...

CEP discussion paper

Pandemics, global supply chains and local labor demand: evidence from 100 million posted jobs in China

This paper studies how the COVID-19 pandemic has affected labor demand, using over 100 million posted jobs on one of the largest online platforms in China. Our data reveal that the number of newly posted jobs within the ...Read more...

Journal article

Quarterly Journal of Economics:

Misallocation in the market for inputs: enforcement and the organization of production

The strength of contract enforcement determines how firms source inputs and organize production. Using microdata on Indian manufacturing plants, we show that production and sourcing decisions appear systematically distor...Read more...

CVER Research Paper

Closing the Gap Between Vocational and General Education? Evidence from University Technical Colleges in England

Some countries, notably those which have long had a weak history of vocational education like the UK and the US, have recently seen a rapid expansion of hybrid schools which provide both general and vocational education....Read more...

CEP occasional paper

Regional differences in UK transport BCRs: an empirical assessment

The UK government uses a Value for Money (VfM) framework to help allocate infrastructure expenditure. At the core of this framework is a benefit to cost ratio (BCR) that is calculated using a set of established monetised...Read more...

CEP discussion paper

Growing like China: firm performance and global production line position

Global value chains have fundamentally transformed international trade and development in recent decades. We use matched firm-level customs and manufacturing survey data, together with Input-Output tables for China, to e...Read more...

Blog

LSE Consulting:

Vulnerabilities of supply chains post-Brexit

Nikhil Datta, Jan Bakker, Elitsa Garnizova & Josh De-Lyon show how consumers in the UK are highly dependent on products originating in the EU, where 40 percent of all consumption of food products in the UK comes from EU ...Read more...

Journal article

Oxford Review of Economic Policy:

What is the meaning of (statistical) life? Benefit-cost analysis in the time of Covid-19

Efforts to support public policy decisions need to be conducted carefully and thoughtfully. Recent efforts to estimate the social benefits of reductions in mortality risks associated with COVID-19 interventions are likel...Read more...

CentrePiece article

Covid-19 and the future of international supply chains

Frank Pisch analyses 'just-in-time' production networks to assess the prospects for world trade after Covid-19...Read more...

CEP discussion paper

Better together? Heterogeneous effects of tracking on student achievement

I study the effects of early between-school ability tracking on student achievement, exploiting institutional differences between German federal states. In all states, about 40% of students transition to separate academi...Read more...

Journal article

European Journal of Finance:

Is firm-level clean or dirty innovation valued more?

We examine how Tobin's Q is linked to 'clean' and 'dirty' innovation and innovation efficiency at the firm level. Clean innovation relates to patented technologies in areas such as renewable energy generation and electri...Read more...

CVER Research Paper

Where versus What: College Value-Added and Returns to Field of Study in Further Education

Enrolling in vocational education and training programs constitutes a natural response to the current dynamics of the labour market, which is being reshaped by routinisation, automation, and outsourcing. We estimate the ...Read more...

CEP discussion paper

Bank default risk propagation along supply chains: evidence from the UK

How does banks? default risk affect the probability of default of non-financial businesses? The literature has addressed this question by focusing on the direct effects on the banks? corporate customers ? demonstrating t...Read more...

CEP discussion paper

Managing global production: theory and evidence from just-in-time supply chains

Global value chains are highly fragmented across countries and dominated by a few large multinational firms. But the challenges of an increasingly difficult international business environment are raising the question of ...Read more...

CEP discussion paper

Rising protectionism and global value chains: quantifying the general equilibrium effects

Quantifying the effects of trade policy in the age of ?global value chains? (GVCs) requires an enhanced analytical framework that takes the observed international input-output relations in due account. However, existing ...Read more...

Journal article

Journal of Urban Economics:

The economic effects of density: a synthesis

This paper synthesises the state of knowledge on the economic effects of density. We consider 347 estimates of density elasticities of a broad range of outcomes ranging from wages, innovation, rents, various amenities, t...Read more...

CEP discussion paper

International buyers' sourcing and suppliers' markups in Bangladeshi garments

Large international buyers play a key role in global value chains. We exploit detailed transaction-level data on the usage of material inputs to study how Bangladeshi garment suppliers' markups vary across international ...Read more...

Journal article

Review of Economics and Statistics:

Tall buildings and land values: height and construction cost elasticities in Chicago, 1870-2010

Despite unprecedented vertical growth in large cities, the economics of skyscrapers remain understudied. We combine data on tall buildings with a panel of land prices covering 140 years to analyze the determinants of urb...Read more...

CEP discussion paper

Organizing global supply chains: input-output linkages and vertical integration

We study whether and how the technological importance of an input ? measured by its cost share ? is related to the decision of whether to ?make? or ?buy? that input. Using detailed French international trade data and an ...Read more...

CEP discussion paper

Misallocation in the market for inputs: enforcement and the organization of production

The strength of contract enforcement determines how firms source inputs and organize production. Using microdata on Indian manufacturing plants, we show that production and sourcing decisions appear systematically distor...Read more...

Journal article

Social Science and Medicine:

Life satisfaction, QALYs, and the monetary value of health

The monetary value of a quality-adjusted life-year (QALY) is frequently used to assess the benefits of health interventions and inform funding decisions. However, there is little consensus on methods for the estimation o...Read more...

CEP discussion paper

Internalizing global value chains: a firm-level analysis

In recent decades, advances in information and communication technology and falling trade barriers have led firms to retain within their boundaries and in their domestic economies only a subset of their production stages...Read more...

CEP discussion paper

The hospital as a multi-product firm: the effect of hospital competition on value-added indicators of clinical quality

There is increasing international interest in using Patient Reported Outcome Measures (PROMs) to assess health care provider performance. PROMs are a fundamental advance on existing indicators of health care quality in t...Read more...

Journal article

Psychological Science:

Models of affective decision making: how do feelings predict choice?

Intuitively, how you feel about potential outcomes will determine your decisions. Indeed, an implicit assumption in one of the most influential theories in psychology, prospect theory, is that feelings govern choice. Sur...Read more...

Journal article

Journal of International Economics:

How firms export: processing vs. ordinary trade with financial frictions

The fragmentation of production across borders allows firms to make and export final goods, or to perform only intermediate stages of production by processing imported inputs for re-exporting. We examine how financial fr...Read more...

CEP discussion paper

Models of affective decision-making: how do feelings predict choice?

Intuitively, how we feel about potential outcomes will determine our decisions. Indeed, one of the most influential theories in psychology, Prospect Theory, implicitly assumes that feelings govern choice. Surprisingly, h...Read more...

CEP discussion paper

Minimum wages and firm value

How does the value of a firm change in response to a minimum wage hike? The evidence we have to date is not well-suited to answer this question, principally because events that have been studied are not completely unknow...Read more...

CEP discussion paper

How firms export: processing vs. ordinary trade with financial frictions

The fragmentation of production across borders allows firms to make and export final goods, or to perform only intermediate stages of production by processing imported inputs for re-exporting. We examine how financial fr...Read more...

CEP discussion paper

Intrafirm trade and vertical fragmentation in US multinational corporations

Using firm-level data, we document two new facts regarding intrafirm trade and the activities of the foreign affiliates of U.S. multinational corporations. First, intrafirm trade is concentrated among a small number of l...Read more...

SERC/Urban and Spatial Programme Discussion Paper

The Vertical City: The Price of Land and the Height of Buildings in Chicago 1870-2010

We analyze the determinants of building heights in Chicago by combining a micro-geographic data set on tall buildings with a unique panel of land prices covering 140 years. Consistent with the predictions of classic urba...Read more...

Journal article

American Economic Review:

Monopolistic competition and optimum product selection

We provide novel insights on the decentralization of optimal outcomes under monopolistic competition with nonseparable utility, variable demand elasticity, and endogenous firm heterogeneity. Relative to the unconstrained...Read more...

SERC/Urban and Spatial Programme Discussion Paper

No Escape? The Co-ordination Problem in Heritage Preservation

Conservation areas (CAs) are among the most restrictive English planning policies. Designation implies a significant limitation of owners? control over the shape and appearance of their properties. The policy, however, c...Read more...

SERC/Urban and Spatial Programme Discussion Paper

Game of Zones: The Economics of Conservation Areas

Provided there are positive external benefits attached to the historic character of buildings, owners of properties in designated conservation areas benefit from a reduction in uncertainty regarding the future of their a...Read more...

CEP discussion paper

Global Value Chains During the Great Trade Collapse: A Bullwhip Effect?

This paper analyzes the performance of global value chains during the trade collapse. To do so, it exploits a unique transaction-level dataset on French firms containing information on cross-border monthly transactions m...Read more...

CentrePiece article

Unequal Britain: how real are regional disparities?

Average earnings vary widely across the regions of Britain, a fact that has prompted many decades of policies aimed at reducing regional disparities. But as Henry Overman and Steve Gibbons demonstrate, such variation rev...Read more...

SERC/Urban and Spatial Programme Discussion Paper

The Amenity Value of English Nature: A Hedonic Price Approach

Using a hedonic property value price approach, we estimate the amenity value associated with proximity to habitats, designated areas, domestic gardens and other natural amenities in England. There is a long tradition of ...Read more...

CEP discussion paper

The Interrelationship between HR, Strategy and Profitability in Service SMEs: Empirical Evidence from the UK Tourism Hospitality and Leisure Sector

We investigate the strategies, HR attributes and their synergies that are associated with superior performance in service SMEs using data from the UK Tourism Hospitality and Leisure (THL) sector. A major advantage of our...Read more...

CEP discussion paper

Strategic Patenting and Software Innovation

Strategic patenting is widely believed to raise the costs of innovating, especially in industries characterised by cumulative innovation. This paper studies the effects of strategic patenting on R&D, patenting and market...Read more...

CEP discussion paper

Knowledge Flow and Sequential Innovation: Implications for Technology Diffusion, R&D and Market Value

It is shown that spillovers can enhance private returns to innovation if they feed back into the dynamic research of the original inventor (Internalized spillovers), but will always reduce private returns, if the origina...Read more...

CEP discussion paper

Identifying Technology Spillovers and Product Market Rivalry

The impact of R&D on growth through spillovers has been a major topic of economic research over the last thirty years. A central problem in the literature is that firm performance is affected by two countervailing ?spill...Read more...

CEP discussion paper

Collateral Value and Forbearance Lending

We investigate the foreclosure policy of collateral-based loans in which the endogenous collateral value plays a crucial role. If creditors are able to commit, then the equilibrium arrangement is more likely to feature f...Read more...