Results

Journal article

Journal of Labor Economics:

The causal effect of an income shock on children's human capital

We investigate the causal impact of a generous unconditional cash transfer at birth on children's health and academic performance. Using rich administrative data, we take advantage of the unexpected introduction of a ?ba...Read more...

Blog

VoxEU:

Why inflation may respond faster to big shocks: The rise of state-dependent pricing

Macroeconomic models distinguish time-dependent pricing, where firms change prices at fixed intervals, from state-dependent pricing, where firms change prices in response to changing demand or costs. This column presents...Read more...

CEP discussion paper

Household taxation, nonlinear occupations, and gender gaps

An enduring source of gender inequality is that some high-paying ("nonlinear") occupations penalize balancing work and household time commitments, as emphasized by Goldin (2014). We ask how household taxation interacts w...Read more...

Blog

Economics Observatory:

Can we explain why inflation in the UK is higher than in the Euro Area?

Swati Dhingra of the Bank of England's Monetary Policy Committee argues that UK inflation is more similar to Europe than it seems, and therefore rate cuts are possible without threatening the return of inflation to targe...Read more...

Journal article

Research Policy:

Mapping digital businesses with big data: some early findings from the UK

Governments around the world want to develop their ICT industries. Researchers and policymakers thus need a clear picture of digital businesses, but conventional datasets and typologies tend to lag real-world change. We ...Read more...

Journal article

American Economic Review:

Monopsony and employer misoptimization explain why wages bunch at round numbers

We show that administrative hourly wage data exhibit considerable bunching at round numbers. We run two experiments randomizing wages around $0.10 and $1.00 to experimentally measure left-digit bias for identical tasks o...Read more...

Journal article

The Economic Journal:

Monopsony and the wage effects of migration

If labour markets are competitive, migration can only affect native wages via marginal products. But under imperfect competition, migration may also increase wage mark-downs ? if firms have greater monopsony power over m...Read more...

CEP discussion paper

Firm-level technology adoption in times of crisis

We investigate the diffusion of frontier technologies across German firms before and during the Covid-19 crisis. Our analysis tracks the nature, timing, and pandemic-related motivations behind technology investments, usi...Read more...

Blog

Vox EU:

Inflation on Wall Street versus Main Street

Since 2021, developed countries have experienced a significant inflation episode. This column uses Decision Maker Panel data from UK CEOs and CFOs to study firms' inflation perceptions and expectations around monthly off...Read more...

Blog

Vox EU:

Distributional consumer price indices and the measurement of inequality

Differences in consumption patterns between lower- and higher-income households suggest the potential for inflation inequality, but evidence on the scale and drivers of this disparity remains scarce. This column uses 'di...Read more...

Journal article

The Economic Journal:

Judge dread: Court severity, repossession risk and demand in mortgage and housing markets

We study the impact of borrower protection on mortgage and housing demand using variation in the likelihood that houses are repossessed coming from heterogeneity in preferences of local judges. We develop a framework tha...Read more...

Blog

LSE Politics and Policy:

Trump's tariffs will put post-Brexit trade policy to the test

With Donald Trump's inauguration imminent, there are questions over the potential consequences of one of his signature policies: tariffs. While during the first Trump administration the UK wasn't too affected by the impo...Read more...

Journal article

Oxford Review of Economic Policy:

Ethnic minority and migrant pay gaps over the life-cycle

It is well-known that ethnic minority and migrant workers have lower average pay than the White UK-born workforce. However, we know much less about how these gaps vary over the life-cycle because of data limitations. We ...Read more...

Journal article

Journal of Economic Literature:

Temporary employment in markets with frictions

Temporary employment has spiked in OECD countries over the last 40 years and is now a common feature of their labor market landscape. A large body of empirical literature examines the spread of temporary employment, but ...Read more...

Journal article

Journal of Urban Economics:

Cities and the sea level

Construction on low elevation coastal zones is risky for both residents and taxpayers who bail them out. To investigate this construction, we analyze spatially disaggregated data covering the entire US Atlantic and Gulf ...Read more...

Blog

Vox EU:

The speed of firm response to inflation

Firm inflation expectations are a key driver of future price growth. This column uses a large economy-wide business survey to understand the response of firms to monthly CPI inflation releases in the UK. Firms' CPI infla...Read more...

CEP discussion paper

Brexit and investment

In 2016, the UK voted to leave the European Union and growth in UK manufacturing investment ground to a halt. This paper uses administrative trade data to investigate the causal relationship between these events. We expl...Read more...

Blog

The Rest is Money (podcast):

Bank of England Economist: Interest rates must be cut (podcast)

Economist and external member of the Bank of England's Monetary Policy Committee, Swati Dhingra talks to Robert and Steph about why she thinks the time has come to lower Bank Rate, the interest rate set by the Bank of En...Read more...

CEP discussion paper

Leaving the global playing field through optimal non-discriminatory corporate taxes and subsidies

Due to markup distortions, in international trade models with monopolistic competition and heterogeneous firms the market equilibrium is inefficient unless demand exhibits constant elasticity of substitution. When it doe...Read more...

Journal article

American Economic Journal: Applied Economics:

Measuring absolute income mobility: lessons from North America and Europe

We use linked parent-child administrative data for five countries in North America and Europe, as well as detailed survey data for two more, to investigate methodological challenges in the estimation of absolute income m...Read more...

Journal article

The Economic Journal:

Immigration, female labour supply and local cultural norms

We study the local evolution of female labour supply and cultural norms in West Germany in reaction to the sudden presence of East Germans who migrated to the West after reunification. These migrants grew up with high ra...Read more...

Chapter

The evolution of gender in the labor market

in Handbook of Labor Economics

This chapter traces the evolution of the study of gender in the labor market, focusing on how academic thinking on this topic has evolved alongside real world developments in gender inequality from the 1980s to the prese...Read more...

Journal article

The Quarterly Journal of Economics:

Measuring growth in consumer welfare with income-dependent preferences: nonparametric methods and estimates for the United States

How should we measure changes in consumer welfare given observed data on prices and expenditures? This article proposes a nonparametric approach that holds under arbitrary preferences that may depend on observable consum...Read more...

CEP discussion paper

Regional productivity differences in the UK and France: from the micro to the macro

We propose a new data resource that attempts to overcome limitations of standard firm-level datasets for the UK (like the ARD/ABS) by building on administrative data covering the population of UK firms with at least one ...Read more...

CEP discussion paper

Individual welfare analysis: a tale of consumption, time use and preference heterogeneity

How accurately does household income reflect the well-being of the individuals living within the household? Looking at household income does not take unequal consumption sharing within families, the value of time use (le...Read more...

Journal article

Journal of Economic Perspectives:

The evolution of work from home

Full days worked at home account for 28 percent of paid workdays among Americans 20?64 years old, as of mid-2023. That's about four times the 2019 rate and ten times the rate in the mid-1990s. We first explain why the bi...Read more...

Blog

Vox EU:

Price-setting in a high-inflation environment

Since 2021, inflation rates have increased sharply in many advanced economies. Philip Bunn, Nicholas Bloom, Paul Mizen, Ozgen Ozturk, Gregory Thwaites and Ivan Yotzov study firm pricing strategies during the recent perio...Read more...

Blog

The Conversation:

Inflation may be coming down but its unequal effects can still have a big impact on wellbeing

Inflation is coming down across developed economies, although not as much as governments and central banks would like. Price hikes hurt everyone, but research into inflation inequality shows the effects are more pronounc...Read more...

Government consultation

House of Commons Treasury Committee: Pre-appointment hearing of Dr Swati Dhingra to the Monetary Policy Committee

In oral evidence, Dr Dhingra was questioned about her personal suitability for the post and the UK's economic outlook....Read more...

CentrePiece article

In brief... The wellbeing costs of inflation inequalities

Some people face sharper increases in the prices they pay than others - and since inflation makes everyone miserable, they also experience greater loss of happiness. Alberto Prati assesses the costs of such inflation ine...Read more...

CEP discussion paper

The shift to remote work lessens wage-growth pressure

The recent shift to remote work raised the amenity value of employment. As compensation adjusts to share the amenity-value gains with employers, wage-growth pressures moderate. We find empirical support for this mechanis...Read more...

Blog

Vox EU:

Accounting for imported and domestically generated inflation: Supply chains, monetary policy, and the UK's cost of living crisis

Inflation has increased sharply since the start of 2021 as the global economy grapples with the aftermath of the COVID-19 pandemic and Russia's invasion of Ukraine. Swati Dhingra and Jack Page draw on a long tradition of...Read more...

Journal article

Review of Income and Wealth :

The well-being cost of inflation inequalities

In terms of well-being, how costly is inflation? To answer this question, empirical evaluations have typically studied average inflation rates at the national level, thus disregarding the role of inflation inequalities w...Read more...

Blog

Vox EU:

Firm inflation expectations in quantitative and text data

Inflation rates and short-term inflation expectations in the UK have increased significantly since 2021. This column uses quantitative and text data from the Decision Maker Panel to analyse the factors affecting inflatio...Read more...

Journal article

Fiscal Studies:

The gendered division of paid and domestic work under lockdown

This paper provides novel empirical evidence on the effects of the COVID-19 pandemic on the division of labour between parents of school-aged children in two-parent opposite-gender families. In line with existing evidenc...Read more...

Blog

BBC Radio 4:

Understand The Economy: 1. Inflation (podcast)

Understanding inflation can help understand why our shopping is getting more and more expensive and why prices rarely seem to come down. Tim Harford explains why the inflation figure we see on the TV might not reflect th...Read more...

Blog

LSE Europp:

The well-being cost of inflation inequalities

Inflation is not distributed equally across society. Alberto Prati assesses the wellbeing cost of inflation inequalities in France, showing why measuring them is important for a policy agenda that places citizens' wellbe...Read more...

Blog

Vox EU:

Energy costs: views of leading economists on windfall taxes and consumer price caps

Proposed policy responses to steeply rising energy costs include windfall taxes, and caps on consumer energy prices. Asked whether an energy price cap would be a more appropriate immediate response to inflation than rais...Read more...

CEP discussion paper

The well-being cost of inflation inequalities

In terms of well-being, how costly is inflation? To answer this question, empirical evaluations have typically studied average inflation rates at the national level, thus disregarding the role of inflation inequalities w...Read more...

Blog

Economics Observatory:

Is inflation avoidable?

Inflation in the UK is at a 40 year high, with prices rising across the economy. Shoppers can look for cheaper products, but many are already buying the lowest-cost options and the prices of those bargains are going up f...Read more...

Blog

Vox EU:

Firming up price inflation

Inflation rates in the UK and US are currently at their highest levels in over 30 years. This column uses firm-level data from the Decision Maker Panel to study inflation dynamics in the UK, and in particular since the s...Read more...

Blog

Economics Observatory:

Are wages keeping up with the cost of living?

There is currently much debate about whether pay should keep pace with either productivity or inflation. How we measure price growth has a big influence on what we observe, shedding light on how different parts of the ec...Read more...

Journal article

The Quarterly Journal of Economics :

The slope of the Phillips Curve: evidence from US States

We estimate the slope of the Phillips curve in the cross section of U.S. states using newly constructed state-level price indices for nontradeable goods back to 1978. Our estimates indicate that the slope of the Phillips...Read more...

Blog

Economics Observatory:

Inflation update: what's driving the cost of living crisis?

Prices in the UK continue to rise, with the Consumer Price Index up 9.4% in June. A closer look at the underlying data shows that more items are going up in price than are going down, suggesting high inflation could be h...Read more...

Journal article

Labour Economics:

Slack and prices during Covid-19: accounting for labor market participation

Strong labor force participation cyclicality during the Covid-19 pandemic has put further into question the capacity of standard Phillips Curve (PC) models to fully capture labor market cyclical conditions. In this paper...Read more...

CEP discussion paper

A few Euro more: benefit generosity and the optimal path of unemployment benefits

In this paper, we exploit the provision of higher UB at different points of the unemployment spell to shed light on the relative cost of insurance at different horizons after the job loss. First, we exploit a double cap ...Read more...

Blog

VoxEU:

Inflation, market power, and price controls: views of leading economists

With sharply rising US inflation prompting debate about the potential role of powerful firms in driving up prices and whether antitrust interventions and/or price controls may be an effective policy response, the IGM For...Read more...

Journal article

Education Economics:

A comparison of earnings related to higher technical and academic education

Not much is known about higher technical education in England, but current education policy looks positively at it to improve labour productivity and social mobility. We provide updated estimates of individual earnings d...Read more...

Journal article

Journal of the European Economic Association:

Vehicle currency pricing and exchange rate pass-through

Using detailed firm-level transactions data for UK imports, we find that invoicing in a vehicle currency is pervasive, with more than half of the transactions in our sample invoiced in neither sterling nor the exporter?s...Read more...

Journal article

International Economic Review:

The Brexit vote, inflation and UK living standards

This article studies how voting for Brexit affected living standards in the United Kingdom. Using heterogeneity in exposure to import costs across product groups, we analyze how the depreciation of sterling caused by the...Read more...

Blog

LSE Business Review:

The risks of prolonged higher inflation

With consumer prices rising at the fastest pace for three decades, what are the risks of prolonged higher inflation as a result of the current stance of fiscal and monetary policy, and what is the likely impact of an eas...Read more...

CentrePiece article

Rising sea levels and the future of coastal cities

Despite the higher susceptibility to floods and a growing climate crisis, more than 10% of the world's population lives in low-elevation coastal zones - and that share is increasing. Guy Michaels and colleagues present a...Read more...

Journal article

History of the Family:

Households and entrepreneurship in England and Wales, 1851-1911

This article uses the British Business Census of Entrepreneurs (BBCE) to examine the relationship between the household and entrepreneurship in England and Wales between 1851 and 1911. The BBCE allows three kinds of entr...Read more...

Journal article

Annual Review of Economics:

Inflation inequality: measurement, causes, and policy implications

Does inflation vary across the income distribution? This article reviews the growing literature on inflation inequality, describing recent advances and opportunities for further research in four areas. First, new price i...Read more...

CEP discussion paper

Cities and the sea level

Construction on low elevation coastal zones is risky for both residents and taxpayers who bail them out, especially when sea levels are rising. We study this construction using spatially disaggregated data on the US Atla...Read more...

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...

CEP Covid-19 analysis

Prices and inflation in a pandemic - a micro data approach

The Covid-19 lockdowns and recession are the most exceptional economic events in living memory and will impact the economy for years to come. One vital channel is via price changes. Price rises and cuts alter real wages,...Read more...

Journal article

Journal of Economic Perspectives:

Place-based policies and spatial disparities across European cities

Spatial disparities in income and worklessness across areas of the European Union are profound and persistent. Concerns about these disparities and the appropriate policy response are longstanding. Two trends have re-ene...Read more...

Journal article

Journal of Economic Dynamics and Control:

Comments on "labor market trends and the changing value of time"

The last century was characterized by a well-documented marked increase in income inequality in the US (see Alvaredo et al., 2018, among many others), which fostered a vast debate among academics and policy makers about ...Read more...

CEP discussion paper

Exchange rates and consumer prices: evidence from Brexit

This paper studies how the depreciation of sterling following the Brexit referendum affected consumer prices in the United Kingdom. Our identification strategy uses input-output linkages to account for heterogeneity in e...Read more...

CEP discussion paper

Vehicle currency pricing and exchange rate pass-through

Using detailed firm-level transactions data for UK imports, we find that invoicing in a vehicle currency is pervasive, with more than half of transactions in our sample invoiced in neither sterling nor the exporter's cur...Read more...

Journal article

The Quarterly Journal of Economics:

The unequal gains from product innovations: evidence from the US retail sector

This article examines how product innovations led to inflation inequality in the United States from 2004 to 2015. Using scanner data from the retail sector, I find that annual inflation for retail products was 0.661 (std...Read more...

CVER Research Paper

A comparison of earnings related to higher level vocational/technical and academic education

Using rich administrative data for a full cohort of English secondary school leavers (2002/03 academic year), we compare earnings of people with higher vocational/technical qualifications to the earnings of degree holder...Read more...

Blog

CVER Blog:

Higher vocational education: An alternative to degrees?

A detailed picture of earnings effects of university degrees is emerging, but not much is known about the benefits of higher vocational education. A recent report by the IFS provides evidence on the extensive earnings b...Read more...

CEP discussion paper

Making smart meters smarter the smart way

We report first results from a large scale randomized control trial of different forms of energy consumption feedback facilitated by smart meters and smart phone feedback apps. Nearly 40,000 customers of a large energy r...Read more...

Journal article

Journal of International Economics:

The interconnections between services and goods trade at the firm-level

In this paper we study how international trade in goods and services interact at the firm level. Using a rich dataset on Belgian firms for the period 1995?2005, we show that: i) firms are much more likely to source servi...Read more...

Journal article

Regional Science and Urban Economics:

You've come a long way, baby. Husbands' commuting time and family labour supply

This paper explores the effects of husbands? commuting time on wives? employment and family time allocation. We develop a unitary family model, and we show that when market services are imperfect substitutes of home prod...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...

CEP discussion paper

The interconnections between services and goods trade at the firm-level

In this paper we study how international trade in goods and services interact at the firm level. Using a rich dataset on Belgian firms during the period 1995-2005, we show that: i) firms are much more likely to source se...Read more...

CentrePiece article

Stamp duty, mobility and the UK housing crisis

The UK?s stamp duty land tax raises substantial revenues for the government, but it also contributes to the UK?s housing crisis by preventing households from moving to more suitable homes. That is the central conclusion ...Read more...

Journal article

Journal of Urban Economics:

Transfer taxes and household mobility: distortion on the housing or labor market?

We estimate the effect of the UK Stamp Duty Land Tax (SDLT) ? a transfer tax on the purchase price of property or land ? on different types of household mobility using micro data. Exploiting a discontinuity in the tax sc...Read more...

SERC/Urban and Spatial Programme Discussion Paper

Transfer Taxes and Household Mobility: Distortion on the Housing or Labor Market?

We estimate the effect of the UK Stamp Duty Land Tax (SDLT) ? a transfer tax on the purchase price of property or land ? on different types of household mobility using micro data. Exploiting a discontinuity in the tax sc...Read more...

CentrePiece article

Superstar houses and the American mortgage frenzy

Clement Bellet shows how visible wealth inequality fuelled the US mortgage boom that preceded the financial crisis....Read more...

CEP discussion paper

The paradox of the Joneses: superstar houses and mortgage frenzy in suburban America

Despite a major upscaling of suburban houses over the last decades, house satisfaction has remained steady in the United States. I show that upward comparison in size can explain this paradox, as top housing size mirrore...Read more...

Journal article

Environment and Planning A:

Ethnic diversity and business performance: Which firms? Which cities?

A growing literature examines how ethnic diversity influences economic outcomes in cities and inside firms. However, firm?city interactions remain more or less unexplored. Ethnic diversity may help firm performance by in...Read more...

Journal article

Energy Policy:

Competition and norms: a self-defeating combination?

This paper investigates the effects of information feedback mechanisms on electricity and heating usage at a student hall of residence in London. In a randomised control trial, we formulate different treatments such as f...Read more...

CEP real wages update

Slowing UK Wage Growth

We have previously examined the path of nominal and real wages in the UK (Blanchflower and Machin, 2014a, 2014b, 2014c). In that work, we expressed the view that in recent years there has been sufficient slack in the lab...Read more...

Journal article

Journal of International Economics:

Institutions and export dynamics

We study how contract enforcement and export experience shape firm export dynamics in an environment with incomplete information. We show that exporters start with higher volumes and sell for longer periods in countries ...Read more...

SERC/Urban and Spatial Programme Discussion Paper

Transfer Taxes and Household Mobility: Distortion on the Housing or Labor Market?

We estimate the effect of the UK Stamp Duty Land Tax (SDLT) ? a transfer tax on the purchase price of property or land ? on different types of household mobility using micro data. Exploiting a discontinuity in the tax sc...Read more...

Journal article

Journal of International Economics:

Spatial exporters

In this paper, we provide causal evidence that firms serve new markets which are geographically close to their prior export destinations with a higher probability than standard gravity models predict. We quantify the imp...Read more...

CEP occasional paper

Mapping information economy businesses with big data: findings for the UK

Governments around the world want to develop their ICT and digital industries. Policymakers thus need a clear sense of the size and characteristics of digital businesses, but this is hard to do with conventional datasets...Read more...

CEP report

Internationalization and Innovation of Firms: Evidence and Policy

We use a representative and cross-country comparable sample of manufacturing firms (EFIGE) to document patterns of interaction among firm-level internationalization, innovation and productivity across seven European coun...Read more...

CEP discussion paper

The Great Stagnation: What Can Policymakers Do?

Although the economic recovery in the UK has been disappointing, it is inappropriate to either assert that Japan?s two lost decades illustrate the ineffectiveness of stimulative monetary policy or that the UK is predesti...Read more...

SERC/Urban and Spatial Programme Discussion Paper

The Effect of the UK Stamp Duty Land Tax on Household Mobility

We estimate the effect of the UK Stamp Duty Land Tax on household mobility using micro data. Exploiting a discontinuity in the tax schedule as a quasi-experimental setting, we isolate the impact of the stamp duty from ot...Read more...

CEP discussion paper

Female Employment and Fertility - The Effects of Rising Female Wages

Increases in female employment and falling fertility rates have often been linked to rising female wages. However, over the last 30 years the US total fertility rate has been fairly stable while female wages have continu...Read more...

CEP discussion paper

The Household Effects of Government Spending

This paper provides new evidence on the effects of fiscal policy by studying, using household-level data, how households respond to shifts in government spending. Our identification strategy allows us to control for time...Read more...

CEP discussion paper

Spatial Exporters

In this paper, we provide causal evidence that firms serve new markets which are geographically close to their prior export destinations with a higher probability than standard gravity models predict. We quantify the imp...Read more...

SERC/Urban and Spatial Programme Discussion Paper

The Effects of Agglomeration on Wages: Evidence from the Micro-Level

This paper estimates individual wage equations in order to test two rival non-nested theories of economic agglomeration, namely New Economic Geography (NEG), as represented by the NEG wage equation and urban economic (UE...Read more...

Blog

LSE British Politics and Policy:

From `Plan B? to `Plan V?: what the UK economy needs to reboot and rebalance growth

With the threat of stagflation and interest rate rises, the current economic climate shows little sign of improvement in the near future. John Van Reenen finds that the government?s severe austerity programme, with its v...Read more...

Journal article

American Economic Journal: Applied Economics:

Minimum wages and firm profitability

We study the impact of minimum wages on firm profitability, exploiting the changes induced by the introduction of a UK national minimum wage in 1999. We use pre-policy information on the distribution of wages to implemen...Read more...

SERC/Urban and Spatial Programme Discussion Paper

Plant-level Determinants of Total Factor Productivity in Great Britain, 1997-2006

This paper examines the determinants of total factor productivity (TFP) using a GB plant-level dataset. Using a systems-GMM approach, it considers the role of the following four plant characteristics: internal and extern...Read more...

CEP discussion paper

Trade Crisis? What Trade Crisis?

We provide an analysis of the 2008-2009 trade collapse using microdata from a small open economy, Belgium. First, we find that changes in firm-country-product exports and imports occurred mostly at the intensive margin: ...Read more...

CEP discussion paper

The Growth of Extended 'Entry Tournaments' and the Decline of Institutionalised Occupational Labour Markets in Britain

In recent years, British labour markets have been characterised by a decline of institutional regulation of entry routes into many occupations and internal labour markets. This paper examines this change by comparing occ...Read more...

CEP discussion paper

Can Family-Support Policies Help Explain Differences in Working Hours Across Countries?

It has been suggested in the literature that taxes and subsidies play an important role in explaining the differences in working hours across countries. In this paper I test whether public programmes for family support p...Read more...

CEP discussion paper

The Extent of Collective Bargaining and Workplace Representation: Transitions between States and their Determinants. A Comparative Analysis of Germany and Great Britain

Industrial relations are in flux in many nations, perhaps most notably in Germany and Britain. That said, comparatively little is known in any detail of the changing pattern of the institutions of collective bargaining a...Read more...

SERC/Urban and Spatial Programme Discussion Paper

Productivity and Firm Selection: Quantifying the 'New' Gains from Trade

We discuss how standard computable equilibrium models of trade policy can be enriched with selection effects without missing other important channels of adjustment. This is achieved by estimating and simulating a partial...Read more...

CEP discussion paper

Service Traders in the UK

We provide a novel set of stylized facts on firms engaging in international trade in services, using unique firm-level data on services exports and imports in the United Kingdom in 2000- 2005. Less than 10% of firms trad...Read more...

CEP discussion paper

Central Bank's Two-Way Communication with the Public and Inflation Dynamics

Using a model of island economy where financial markets aggregate dispersed information of the public, we analyze how two-way communication between the central bank and the public affects inflation dynamics. When inflati...Read more...

CEP discussion paper

Robustly Optimal Monetary Policy

This paper analyses optimal monetary policy in response to shocks using a model that avoids making specific assumptions about the stickiness of prices, and thus the nature of the Phillips curve. Nonetheless, certain robu...Read more...

CEP discussion paper

Inflation Persistence When Price Stickiness Differs Between Industries

There is much evidence that price-adjustment frequencies vary widely across industries. This paper shows that inflation persistence is lower with heterogeneity in price stickiness than without it, taking as given the deg...Read more...