Results

CEP occasional paper

Prices and inflation in the UK - A new dataset

This paper presents a new dataset of 41 million UK consumer prices, providing facts on the frequency, size and timing of price changes between 1988 and 2020. The micro data are the ‘price quotes’ of individual consumer p...Read more...

Blog

LSE Brexit:

Three years on: the UK is paying a high economic price for its decision to leave the EU

How has the Leave vote affected the UK economy, ask Swati Dhingra and Thomas Sampson (LSE) in this second of two blogs based on the CEP Election Analysis briefing on Brexit. It summarizes CEP research on how the referend...Read more...

Blog

LSE Business Review:

Brexit will leave the UK worse off economically in all scenarios

Since the UK voted to leave the European Union in June 2016, Brexit has dominated UK politics and economic policy. Three and a half years after the referendum, the UK is yet to leave the EU, there is no certainty over if...Read more...

Blog

LSE Brexit:

Economic consequences of Brexit are overwhelmingly negative

The economic consequences of Brexit are overwhelmingly negative, estimate Swati Dhingra and Thomas Sampson (LSE). The more the UK distances itself from the EU’s economic institutions and policies, the greater will be the...Read more...

CEP election analysis

Brexit economics

Since the UK voted to leave the European Union in June 2016, Brexit has dominated UK politics and economic policy. Three and a half years after the referendum, the UK is yet to leave the EU, there is no certainty over if...Read more...

Blog

LSE Business Review:

Eurosceptic votes are less likely when EU interventions visibly boost local job markets

Eurosceptic votes are less likely when EU interventions visibly boost local job markets Anti-systemic political movements have emerged in recent years in a large number of countries across the globe. These parties genera...Read more...

CEP discussion paper

Innovation union: costs and benefits of innovation policy coordination

In this paper, we document large heterogeneity in innovation policy and performance between old and new EU member states, and present firm-level evidence on the close link between foreign direct investment (FDI) spillove...Read more...

Journal article

Journal of Regional Science:

Direct democracy and intergenerational conflicts in ageing societies

To evaluate the potential effects of population ageing on the outcomes of direct democracy, we analyze the effect of age on voting decisions in public referendums. In a case study of the Stuttgart 21 referendum on one of...Read more...

CEP Brexit analysis

Trade and worker deskilling: how the post-Brexit pound has hurt Britain’s workers

The unexpected result of the Brexit referendum, working through the rapid depreciation of the sterling, has hurt British workers. New CEP work shows that the big drop in the value of the pound caused a rise in import pri...Read more...

CEP discussion paper

Searching for carbon leaks in multinational companies

Does unilateral climate change policy cause companies to shift the location of production, thereby creating carbon leakage? In this paper, we analyse the effect of the European Union Emissions Trading System (EU ETS) on ...Read more...

CEP discussion paper

The effect of the Brexit referendum result on subjective well-being

We study the effect of the Brexit referendum result on subjective well-being in the United Kingdom. Using a quasi-experimental design, we find that this outcome led to an overall decrease in subjective well-being in the ...Read more...

CentrePiece article

The price of Brexit

Writing in the summer 2018 issue of CentrePiece magazine, Thomas Sampson notes that the full economic consequences of the UK’s leave vote will not be realised for many years. But two years after the referendum, we can al...Read more...

CEP discussion paper

The generation gap in direct democracy

We provide the first systematic documentation and analysis of a generation gap in direct democracy outcomes across a wide range of topics using postelection survey data covering more than 300 Swiss referenda and four dec...Read more...

CEP Brexit analysis

The Brexit vote, inflation and UK living standards

The vote to leave the European Union (EU) was an unanticipated shock to the UK economy that increased uncertainty and reduced the country’s expected future openness to trade, investment and immigration with the EU. Our r...Read more...

Journal article

National Institute Economic Review:

Local economic effects of Brexit

This paper studies local economic impacts of the increases in trade barriers associated with Brexit. Predictions of the local impact of Brexit are presented under two different scenarios, soft and hard Brexit, which are ...Read more...

CEP discussion paper

Goods and factor market integration: A quantitative assessment of the EU enlargement

The economic effects from labor market integration are crucially affected by the extent to which countries are open to trade. In this paper we build a multi-country dynamic general equilibrium model with trade in goods a...Read more...

CEP election analysis

Brexit as Climate Policy: The Agenda on Energy and the Environment

The Great Recession and a sluggish economic recovery were instrumental in meeting the legally binding climate change targets that the UK has set for itself. But without more drastic policy interventions, it is unlikely t...Read more...

CEP election analysis

Brexit and the UK Economy

This general election is pitched as the ‘Brexit Election’, one that will give the incoming government a mandate to negotiate the terms of the UK’s exit from the European Union (EU). The Conservatives and Labour have both...Read more...

CEP election analysis

Immigration and the UK Economy

Immigration to the UK has grown a lot over the last 20 years and a significant fraction of this growth has been from other EU countries, especially after 2004 and the accession of the eight East European countries (‘A8’)...Read more...

CEP discussion paper

Who voted for Brexit? A comprehensive district-Level analysis

On 23 June 2016, the British electorate voted to leave the European Union. We analyse vote and turnout shares across 380 local authority areas in the United Kingdom. We find that exposure to the EU in terms of immigratio...Read more...

Journal article

Oxford Review of Economic Policy:

A hitch-hiker's guide to post-Brexit trade negotiations: Options and principles

Brexit will require the UK to negotiate new trade arrangements with the EU. After summarizing the main options for future UK-EU trade relations, this article reviews the purpose of trade agreements. We highlight that tra...Read more...

CentrePiece article

Who voted Leave?

If EU immigration had remained at its 1991 level, the Leave vote share may have been considerably lower. That is one of the conclusions of CEP research by Monica Langella and Professor Alan Manning, which explores the ef...Read more...

CentrePiece article

Brexit and the UK labour market

Following the referendum vote to leave the European Union, the UK faces a trade-off between retaining access to the Single Market and restricting free movement of labour. Barbara Petrongolo considers the likely impact of...Read more...

Blog

LSE British Politics and Policy:

Who voted Leave: the characteristics of individuals mattered, but so did those of local areas

Individual demographics had a huge effect in determining the outcome of the referendum, but the characteristics of local areas mattered as well, explain Monica Langella and Alan Manning. Immigration, the decline in manuf...Read more...

CEP Brexit analysis

BREXIT 2016: policy analysis from the Centre for Economic Performance

On June 23rd, the British people will vote in a referendum over whether or not to remain in the European Union. It is the most important vote that most of us will have in our lifetimes. And one that will have major reper...Read more...

CentrePiece article

Brexit: the final assessment

John Van Reenen summarises the economic impact of a vote to leave the EU....Read more...

CentrePiece article

Why immigration is no reason to leave the EU

A major argument of Brexit campaigners is that leaving the European Union would give the UK more control over the flow of immigrants, who they claim hurt the jobs and pay of native-born workers. CEP research shows that E...Read more...

CentrePiece article

Foreign investors love Britain - but Brexit would end the affair

Investment from overseas brings many benefits to the UK economy, including higher pay and productivity. According to CEP research, leaving the European Union could lead to a fall in inward foreign direct investment in th...Read more...

CentrePiece article

Brexit: the impact on UK trade and living standards

For over two years, a CEP research team has been studying the likely impact on the living standards of UK households of a referendum vote to leave the European Union. The first of three reports summarised here focuses on...Read more...

CEP Brexit analysis

Who bears the pain? How the costs of Brexit would be distributed across income groups

Read more...

CEP Brexit analysis

‘ECONOMISTS FOR BREXIT’: A critique

Read more...

CEP Brexit analysis

Brexit and the impact of immigration on the UK

A reduction in immigration from the European Union (EU) following a vote for Brexit would not lead to any improvement in living standards for those born in the UK. Cuts in EU immigration would not offset the big fall in ...Read more...

CEP Brexit analysis

The UK Treasury analysis of 'The long-term economic impact of EU membership and the alternatives': CEP Commentary

Overly cautious assumptions in the Treasury’s recent report on the long-run consequences for the UK economy of leaving the European Union (EU) mean that it has probably underestimated the economic costs. That is one of t...Read more...

CEP Brexit analysis

The impact of Brexit on foreign investment in the UK

The third in a series of Brexit reports from the Centre for Economic Performance (CEP), examines how leaving the EU would affect UK incomes through changes in foreign investment in the UK. Leaving the European Union (EU)...Read more...

Blog

LSE British Politics and Policy:

The question is not whether Brexit will cost the UK in economic terms but how much

For over two years, a research team at the Centre for Economic Performance (CEP) has been studying the likely impact of the UK leaving the European Union. Their latest report focuses on the impact of ‘Brexit’ through cha...Read more...

CEP Brexit analysis

The consequences of Brexit for UK trade and living standards

The economic consequences of leaving the EU will depend on what policies the UK adopts following Brexit. But lower trade due to reduced integration with EU countries is likely to cost the UK economy far more than is gain...Read more...

CEP discussion paper

How have EU's trade agreements impacted consumers?

Over the past two decades, the European Commission has negotiated a number of Free Trade Agreements (FTAs) which contain both traditional elements of bilateral tariff reductions, as well as additional liberalisation meas...Read more...

CEP Brexit analysis

Life after Brexit : what are the UK’s options outside the European Union?

Suppose the UK votes to leave the European Union (EU): what happens next? This report outlines some of the options for the UK outside the EU and discusses the costs and benefits of each alternative....Read more...

CEP election analysis

#ElectionEconomics: The Research Evidence on Key Issues for Voters in the 2015 UK General Election

Please see the CEP #ElectionEconomics report(Paper 1)and the Executive Summary (Paper 2) that cover all the election 2015 briefings, discussing the research evidence on 15 of the UK's key policy battlegrounds: immigratio...Read more...

Blog

LSE American Politics and Policy Blog:

Experts react to the Scottish referendum result: The Nays have it

On 18 September, Scotland voted against independence from the United Kingdom by a margin of 55-45 per cent, an event that will be of interest to many in the U.S. given the commentary made there by many in the lead up to ...Read more...

CEP election analysis

The Scottish Referendum: Breaking Up is Hard – and expensive - to Do

The Scottish Referendum: CEP Director John Van Reenen on why with a 'YES' vote, the Scottish people will be poorer. A lot poorer...Read more...

Blog

LSE European Politics and Policy Blog:

Leaving the European Union would likely have a significant negative impact on the UK’s economy

How would leaving the EU affect the UK’s economy? Gianmarco Ottaviano, João Paulo Pessoa, Thomas Sampson and John Van Reenen outline findings from a new report on the economic consequences of a ‘Brexit’. They indicate th...Read more...

CentrePiece article

Immigration and the UK Labour Market

David Metcalf, chair of the Migration Advisory Committee (MAC), outlines recent changes in the regulatory framework for immigrant workers....Read more...

CEP discussion paper

Industry Compensation Under Relocation Risk: A Firm-Level Analysis of the EU Emissions Trading Scheme

When industry compensation is offered to prevent relocation of regulated firms, efficiency requires that payments be distributed across firms so as to equalize marginal relocation probabilities, weighted by the damage ca...Read more...

CentrePiece article

The polluter-doesn't-pay principle

By granting discounts on environmental taxes to heavy polluting firms, the government is missing out on significant tax revenues and achieving considerably less in reducing greenhouse gas emissions. That is the central c...Read more...

CEP discussion paper

Environmental Policy and Directed Technological Change: Evidence from the European Carbon Market

This paper investigates the impact of the EU Emissions Trading Scheme (EU ETS) on technological change. We exploit installations-level inclusion criteria to estimate the impact of the EU ETS on firms patenting. We find t...Read more...

SERC/Urban and Spatial Programme Discussion Paper

Homeownership and NIMBYism: A Spatial Analysis of Airport Effects

This study evaluates the cost of aircraft noise in Berlin, Germany, on the background of the home-voter hypothesis, which has received increasing attention in the literature. First, we use exogenous variation in airport ...Read more...

CEP policy analysis

Still time to reclaim the European Union Emissions Trading System for the European tax payer

The criteria proposed by the EU Commission to identify industries that will receive free emission permits in the third phase of the European Union Emissions Trading System (EU ETS) are not restrictive enough. Evidence fr...Read more...

Journal article

The Economic Journal:

The part-time pay penalty for women in Britain

Women in Britain who work part-time have, on average, hourly earnings about 25% less than that of women working full-time. This gap has widened greatly over the past 30 years. This article tries to explain this part-time...Read more...

CEP discussion paper

The Part-Time Pay Penalty

In 2003, women working part-time in the UK earned, on average, 22% less than women working full-time. Compared to women who work FT, PT women are more likely to have low levels of education, to be in a couple, to have yo...Read more...

CEP discussion paper

Are European Labor Markets As Awful As All That?

“The standard explanation of why advanced Europe has generated less work per adult than the US is that something is seriously amiss with EU labor markets. The theme of this piece is simple. Compared to an ideal competiti...Read more...