Results

Journal article

The Review of Economics and Statistics:

Reservation wages and the wage flexibility puzzle

Using micro data for the UK and Germany, we provide novel evidence on the cyclical properties of reservation wages and estimate that wages and reservation wages are characterised by moderate and very similar degrees of c...Read more...

Journal article

Japanese Economic Review:

The Joneses in Japan: income comparisons and financial satisfaction

This paper uses relatively large-scale internet survey data from Japan to analyse income comparisons and income satisfaction. In contrast to the vast majority of empirical work in the area of subjective well-being, we ar...Read more...

CEP discussion paper

Sequential exporting across countries and products

How do exporters expand their product scope and geographical presence? We argue that new exporters are uncertain about their profitability in different countries and products, but learn it as they start to export. As a c...Read more...

CEP discussion paper

Prime locations

We harness big data to detect prime locations - large clusters of knowledge-based tradable services - in 125 global cities and track changes in the within-city geography of prime service jobs over a century. Historically...Read more...

CEP discussion paper

History dependence in the housing market

Using data on the universe of housing transactions in England and Wales over a twenty-year period, we document a robust pattern of history dependence in housing markets. Sale prices and selling propensities are affected ...Read more...

Journal article

The Economic Journal:

Resetting the urban network: 117-2012

Do fixed geographic features such as coastlines and rivers determine town locations, or can historical events trap towns in unfavourable locations for centuries? We examine the effects on town locations of the collapse o...Read more...

Journal article

Journal of Behavioral and Experimental Economics:

When experienced and decision utility concur: the case of income comparisons

While there is now something of a consensus in the economics of happiness literature that income comparisons to others help determine subjective well-being, debate continues over the relative importance of own and refere...Read more...

CEP discussion paper

Reservation wages and the wage flexibility puzzle

Wages are only mildly cyclical, implying that shocks to labour demand have a larger short-run impact on unemployment rather than wages, at odds with the quantitative predictions of the canonical search model ? even if wa...Read more...

CEP discussion paper

Space-time (in)consistency in the national accounts: causes and cures

In early 2014 the World Bank published the main findings of the 2011 International Comparison Program (ICP). The result was surprising: the world is apparently richer and more equal than we would have expected based on e...Read more...

CentrePiece article

Can cities be trapped in bad locations?

After the fall of the Roman Empire, urban life in France became a shadow of its former self, but in Britain it completely disappeared. Guy Michaels and Ferdinand Rauch use these contrasting experiences as a natural exper...Read more...

CEP discussion paper

Resetting the urban network: 117-2012

Do locational fundamentals such as coastlines and rivers determine town locations, or can historical events trap towns in unfavourable locations for centuries? We examine the effects on town locations of the collapse of ...Read more...

CEP discussion paper

Priors and Desires

This paper offers a simple but powerful model of wishful thinking, cognitive dissonance, and related biases. Choices maximize subjective expected utility, but beliefs depend on the decision maker's interests as well as o...Read more...

SERC/Urban and Spatial Programme Discussion Paper

Where is the Economics in Spatial Econometrics?

Spatial econometrics has been criticized by some economists because some model specifications have been driven by data-analytic considerations rather than having a firm foundation in economic theory. In particular this a...Read more...

SERC/Urban and Spatial Programme Discussion Paper

In Search of 'W'

This paper provides a survey and critique of how spatial links are taken into account in empirical analysis by applied economists/regional scientists. Spatial spillovers and spatial interrelationships between economic va...Read more...

Journal article

Journal of Public Economics:

The marginal utility of income

In normative public economics it is crucial to know how fast the marginal utility of income declines as income increases. One needs this parameter for cost-benefit analysis, for optimal taxation and for the (Atkinson) me...Read more...

CEP discussion paper

Chain Indices of the Cost of Living and the Path-Dependence Problem: An Empirical Solution

This paper proposes an empirically feasible method for correcting the path-dependence bias of chain indices of the cost of living. Chain indices are discrete approximations to Divisia indices and it is well known that th...Read more...

CEP discussion paper

The Marginal Utility of Income

In normative public economics it is crucial to know how fast the marginal utility of income declines as income increases. One needs this parameter for cost-benefit analysis, for optimal taxation and for the (Atkinson) me...Read more...

CEP discussion paper

Externalities in the Matching of Workers and Firms in Britain

We provide empirical evidence on the nature of spatial externalities in a matching model for the UK. We use a monthly panel of outflows, unemployment and vacancy stocks data from the registers at Jobcentres in the UK; th...Read more...