Results

CEP discussion paper

The equilibrium impact of credit frictions: evidence from default risk using firm-level data

This paper examines the impact of credit frictions arising from firm-level default risk on aggregate economic performance. We build a micro-to-macro model with heterogeneous firms and sector-specific production functions...Read more...

Journal article

Journal of Industrial Economics:

Asymmetric pass-through and competition

We study the retail price pass-through of four major tax changes in petroleum products using daily pricing data from gas stations on small Greek islands. We find that (i) the pass-through of the tax hikes is five times h...Read more...

Journal article

Journal of Property Investment and Finance:

Real estate insights: sweetening the dog's breakfast that is British property taxes

Purpose - This study aims to stimulate debate on the long overdue strategic reform of property taxes. Design/methodology/approach - This study adopts an approach combining a systematic literature review with economic ana...Read more...

CEP discussion paper

Growth insured: export credit insurance and trade

We estimate the causal effect of short-term export credit insurance (ECI) on firm-level exports using administrative data from China?s export credit agency merged with customs and tax records. Exploiting quasi-random var...Read more...

Journal article

Journal of International Economics:

Liquidity as competitive advantage: the role of intangibles

We show that short-term liquidity can be a source of competitive advantage by enabling firms to invest in intangible assets. Our analysis leverages a French reform that capped payment delays in trade credit contracts, wh...Read more...

Blog

LSE British Politics and Policy:

Council tax is an unfair mess - here's a system that could work better

The consensus says that it's a bad tax, yet politicians have been shying away from reforming council tax for decades. Paul Cheshire offers an alternative that could be fairer and act as the wealth tax that many are calli...Read more...

CEP discussion paper

Firm dynamics and growth with soft budget constraints

We develop a model of endogenous growth and firm dynamics with soft budget constraints, where firms differ in their innovation speed and slower firms need additional financing in order to eventually innovate. As creditor...Read more...

Blog

LSE Politics and Policy:

Only the super rich need fear the farmers' inheritance tax

Protesters and high-profile individuals like James Dyson argued that ending the inheritance tax exemption for farmers will spell the end of the family farmer. Paul Cheshire argues that's not the case, and that the introd...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...

Blog

Vox EU:

Good management practices are great for productivity ... as well as profit shifting

Following the release of the Panama Papers and the Paradise Papers, there has been renewed research into profit shifting by multinational firms. This column utilises a novel dataset to show that well-managed subsidiaries...Read more...

CEP discussion paper

Asymmetric pass-through and competition

We study the retail price pass-through of four major tax changes in petroleum products using daily pricing data from gas stations on small Greek islands. We find that (i) the pass-through of the tax hikes is five times h...Read more...

Journal article

Management Science :

Managerial and financial barriers to the green transition

Using data on 10,776 firms across 22 emerging markets, we show that both credit constraints and weak green management hold back corporate investment in green technologies embodied in new machinery, equipment, and vehicle...Read more...

Journal article

Journal of Labor Economics:

The employment and distributional impacts of Nationwide Minimum Wage changes

We estimate the effect of the introduction of the UK?s National Living Wage in 2016, and increases in it up to 2019, using a new empirical method. We apply a bunching approach to a setting with no geographical variation ...Read more...

External report

The state of the UK economy 2024

The state of the UK economy is always an important matter, but it is all the more so in what looks likely to be an election year. This UK in a Changing Europe report takes stock of the UK economy in order to assess how i...Read more...

Journal article

Journal of Urban Economics:

On the economic impacts of mortgage credit expansion policies: evidence from help to buy

We take advantage of two spatial discontinuities in Britain's Help to Buy (HtB) scheme to explore the effectiveness and distributional implications of mortgage credit expansion policies. Employing a Difference-in-Discont...Read more...

CentrePiece article

Low investment Britain: policies to promote foundations for growth

The UK investment ecosystem needs rewiring across the board to increase firms' desire to invest in productive and sustainable assets, and to enhance their ability to do so. Paul Brandily, Mimosa Distefano, Krishan Shah, ...Read more...

Blog

Africa at LSE:

Public disclosure policies don't improve tax collection in Uganda

Public disclosure policies are designed to raise tax compliance where alternative enforcement capacity is limited. But they can also have negative consequences by showcasing the true extent of tax compliance, write Priya...Read more...

CEP discussion paper

Public disclosure and tax compliance: evidence from Uganda

Public disclosure policies have potential to raise tax compliance where alternative enforcement capacity is limited. We study the effects of reporting delinquents and recognizing compliers and provide evidence on the soc...Read more...

Blog

Trade Talks:

Industrial policy and the rise of Romania's Silicon Valley (podcast)

In 2001, Romania gave an income tax break to a select group of software programmers. Isabela Manelici explains how this particular industrial policy helped stem Romania's "brain drain" problem, transformed the country's ...Read more...

Blog

Vox EU:

Competition and pass-through: lessons from the Greek islands

Although theoretical analysis shows that competition is a key determinant of how firms pass through changes in tax rates to consumers, empirical evidence is scant. This column explores changes in the excise duty on petro...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...

CEP discussion paper

Strapped for cash: the role of financial constraints for innovating firms

This paper makes use of a reform that allowed firms to use patents as stand-alone collateral, to estimate the magnitude of collateral constraints and to quantify the aggregate impact of these constraints on misallocation...Read more...

CEP discussion paper

Import competition, trade credit and financial frictions in general equilibrium

We analyze the role of trade credit and financial frictions in the propagation of international trade shocks along the supply chain. First, we show empirically that exposure to import competition from China increased the...Read more...

Chapter

Firms and finance during the green transition

in Scaling up sustainable finance and investment in the global south

Creating economically and politically legitimate solutions to tackle climate change is one of the most pressing and challenging issues of our time. For emerging and developing economies, the task is made more difficult d...Read more...

Blog

Harvard Business Review:

The UK economic crisis might not be a one-off

Markets have reacted poorly to the UK government's new "mini-budget" combining energy price caps with tax cuts for the well off. The government's search for a quick fix to economic growth is a mistake. In fact, restartin...Read more...

Journal article

American Economic Journal: Applied Economics :

Competition and pass-through: evidence from isolated markets

We measure how pass-through varies with competition in isolated oligopolistic markets with captive consumers. Using daily pricing data from gas stations on small Greek islands, we study how unanticipated and exogenous ch...Read more...

Blog

Banque de France:

Ten years on from the business tax reform: how has it affected companies' behaviour?

In 2010, the French corporation tax known as the local economic contribution or CET (contribution economique territoriale) replaced the business tax (TP - taxe professionnelle). This latter tax on production had come und...Read more...

Journal article

Economic Modelling:

Credit constraints, selection and productivity growth

This paper presents a tractable model of innovation and growth with firm heterogeneity and financial frictions. The model is used to uncover new mechanisms linking access to credit and productivity growth, highlighting t...Read more...

CEP discussion paper

Managerial and financial barriers during the green transition

Using data on 10,769 firms across 22 emerging markets, we show that both credit constraints and weak green management hold back corporate investment in green technologies embodied in new machinery, equipment and vehicles...Read more...

Journal article

The Review of Economics and Statistics:

A natural experiment on job insecurity and fertility in France

Job insecurity can have wide-ranging consequences outside of the labour market. A 1999 rise in the French layoff tax paid by large private firms when they laid off older workers made younger workers less secure; this ins...Read more...

Blog

LSE British Politics and Policy:

The progressive quandary: how to design an immigration policy that balances competing objectives

There is a tension between strong employment rights, a supportive welfare state, equal rights for migrants and locals, and an open, non-selective immigration policy that creates hard decisions for progressive politicians...Read more...

Blog

LSE Business Review:

Will the US child tax credit reduce poverty and improve outcomes for children and parents?

The American Rescue Plan Act of 2021 temporarily increased the value of the child tax credit from $2,000 to $3,000 for children aged 6-16 and to $3,600 for younger children. To date, the Biden administration has been una...Read more...

Blog

Economics Observatory:

How might an independent Scotland build fiscal capacity?

Tim Besley and Chris Dann explain how developing a sense of common purpose is critical for nation-building - and would be a key issue for an independent Scotland....Read more...

Blog

LSE Covid-19:

A sense of mutual obligation means that even the rich should see the point of paying their taxes

Creating a strong sense of reciprocity between the state and its citizens makes it more likely they will pay taxes willingly, says Timothy Besley (LSE). As we emerge from a pandemic that emphasised the importance of mutu...Read more...

CEP discussion paper

Organizational capacity and profit shifting

Good organizational capacity drives productivity and potential taxable profits but may also enable multinationals (MNEs) to more efficiently re-allocate profits across tax jurisdictions, lowering actual taxable profits. ...Read more...

Blog

VoxEU:

Corporate taxes: views of leading economists on profit-shifting, tax base and a global minimum rate

Romesh Vaitilingam reports on economists' responses to the IGM Forum poll on issues surrounding the G7 global deal on corporate taxes....Read more...

Blog

Grantham Institute blogs:

The answer to housing's stubborn carbon emissions problem: green offsets

Paul Cheshire and Christian Hilber propose 'green offsets' to reduce property taxes in a way that is strictly scaled to energy efficiency, as a simple intervention to address the UK's urgent need to reduce its residentia...Read more...

Blog

Vox EU:

How to improve tax compliance: Evidence from population-wide experiments in Belgium

Tax compliance lies at the heart of well-functioning societies, but the US and Europe spend vast sums annually to enforce it. This column discusses the results of population-wide experiments run in collaboration with the...Read more...

Journal article

Journal of Political Economy:

How to improve tax compliance? Evidence from population-wide experiments in Belgium

We study the impact of simplification, deterrence, and tax morale on tax compliance. We ran four natural field experiments varying the communication of the tax administration with the universe of income taxpayers in Belg...Read more...

CEP discussion paper

Innovation and human capital policy

If innovation is to be subsidized, a natural place to start is to increase the quantity and quality of human capital. Innovation, after all, begins with people. Simply stimulating the ?demand side? through R&D subsidies ...Read more...

CentrePiece article

Innovation policy to restore American prosperity

The new US administration has the opportunity to reset an economic model that has failed to deliver prosperity for millions of Americans for decades. John Van Reenen calls for a Grand Innovation Challenge Fund ? federal ...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...

CentrePiece article

Climate change policy: the case for a Covid-19 carbon tax

Ralf Martin and John Van Reenen explain how taxing emissions could help to meet the costs of the crisis and encourage investment in clean innovation....Read more...

CEP discussion paper

A natural experiment on job insecurity and fertility in France

Job insecurity can have wide-ranging consequences outside of the labour market. We here argue that it reduces fertility amongst the employed. The 1999 rise in the French Delalande tax, paid by large private firms when th...Read more...

CEP industrial strategy paper

Has the Financial Crisis Undermined Credit Reallocation in the United Kingdom?

The global financial crisis and its aftermath heightened awareness of the role of credit frictions in affecting aggregate economic performance. An important question is whether capital is being allocated to its most prod...Read more...

CEP discussion paper

The aggregate consequences of default risk: evidence from firm-level data

This paper studies the implications of perceived default risk for aggregate output and productivity. Using a model of credit contracts with moral hazard, we show that a firm?s probability of default is a sufficient stati...Read more...

Journal article

Fiscal Studies:

Financing local police spending in England and Wales: fiscal federalism in practice

Since 1995, police forces in England and Wales have been able to raise revenues locally to supplement grants from central government. We analyse the variation across police force areas in locally raised police revenues o...Read more...

CEP discussion paper

Trade shocks and credit reallocation

The effect of trade liberalization on welfare and economic activity remains one of the most important questions in economics. The literature identifies a number of key determinants that reduce the potential gains from tr...Read more...

CEP discussion paper

Competition and pass-through: evidence from isolated markets

We measure how pass-through varies with competition in isolated oligopolistic markets with captive consumers. Using daily pricing data from gas stations on small Greek islands, we study how unanticipated and exogenous ch...Read more...

CEP discussion paper

A toolkit of policies to promote innovation

Economic theory suggests that market economies are likely to under-provide innovation due to the public good nature of knowledge. Empirical evidence from the US and other advanced economies supports this idea. We summari...Read more...

Journal article

European Economic Review:

Host-country financial development and multinational activity

This paper evaluates the influence of host-country financial conditions on the global operations of multinational firms. Using detailed U.S. data, we establish that financial development in a country is associated with r...Read more...

Journal article

Journal of the European Economic Association:

Joseph Schumpeter Lecture, EEA Annual Congress 2017: do tax cuts produce more Einsteins? The impacts of financial incentives versus exposure to innovation on the supply of inventors

Many countries provide financial incentives to spur innovation, ranging from tax incentives to research and development grants. In this paper, we study how such financial incentives affect individuals' decisions to pursu...Read more...

CEP discussion paper

How to improve tax compliance? Evidence from population-wide experiments in Belgium

We study the impact of deterrence, tax morale, and simplifying information on tax compliance. We ran _ve experiments spanning the tax process which varied the communication of the tax administration with all income taxpa...Read more...

Journal article

Quantitative Economics:

Incidence, salience, and spillovers: the direct and indirect effects of tax credits on wages

Tax credits are a popular way to alleviate in-work poverty. A common empirical assumption is that the benefit of the tax credit is borne solely by the claimant workers. However, economic theory suggests no particular rea...Read more...

CEP discussion paper

Do tax cuts produce more Einsteins? The impacts of financial incentives vs. exposure to innovation on the supply of inventors

Many countries provide financial incentives to spur innovation, ranging from tax incentives to research and development grants. In this paper, we study how such financial incentives affect individuals' decisions to pursu...Read more...

Journal article

Regional Science and Urban Economics:

The bedroom tax

Housing subsidies for low income households are a central pillar of many welfare systems, but an expensive one. This paper investigates the consequences of an unusual policy aimed at reducing the cost of these subsidies ...Read more...

CEP discussion paper

The inverted-U relationship between credit access and productivity growth

In this paper we identify two counteracting effects of credit access on productivity growth: on the one hand, better access to credit makes it easier for entrepreneurs to innovate; on the other hand, better credit access...Read more...

Journal article

Journal of Housing Economics:

Housing in Europe: a different continent ? a continent of differences

This article provides the introduction to the special issue on `Housing in Europe: a different continent ? a continent of differences? in the Journal of Housing Economics in 2018. Europe is a large continent with a long ...Read more...

Journal article

International Economics:

Relaxing credit constraints in emerging economies: the impact of public loans on the productivity of Brazilian manufacturers

In emerging economies credit constraints are often perceived as one of the most important market frictions hampering firm productivity growth in manufacturing. Huge amount of public money is devoted to the removal of suc...Read more...

CentrePiece article

In brief... The bedroom tax

The `bedroom tax? ? a UK government policy introduced in 2013 that cut housing benefits for social tenants deemed to have a `spare? bedroom ? saved some public money, according to research by Steve Gibbons and colleagues...Read more...

CEP discussion paper

Financial markets and the allocation of capital: the role of productivity

The efficient allocation of credit is a key element for the success of an economy. Traditional measures of allocative efficiency focus on the Q-theory of investment and, in particular, on the elasticity of finance to inv...Read more...

CEP discussion paper

The bedroom tax

Housing subsidies for low income households are a central pillar of many welfare systems, but an expensive one. This paper investigates the consequences of an unusual policy aimed at reducing the burden of these subsidie...Read more...

CEP industrial strategy paper

Investing in People: The Case for Human Capital Tax Credits

It is now widely recognised that human capital accumulation and research and development (R&D) are key drivers of economic growth, as is documented in most standard textbooks (e.g. Acemoglu, 2007; Romer, 1996). Estimates...Read more...

CVER Briefing Note

Investing in People: The Case for Human Capital Tax Credits

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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

The Scandinavian Journal of Economics:

A characteristics approach to optimal taxation: line drawing and tax-driven product innovation

Real-world tax legislation assigns goods to different categories of tax rates on the basis of observable characteristics, allowing the tax system to handle a constantly evolving set of available goods. We recast the theo...Read more...

Journal article

The Review of Economics and Statistics:

Survive another day: using changes in the composition of investments to measure the cost of credit constraints

We introduce a novel empirical strategy to measure the size of credit shocks. Theoretically, we show that credit shocks reduce the value of long-term relative to short-term investments. Empirically, we can therefore comp...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

Do tax incentives for research increase firm innovation? An RD design for R&D, patents and spillovers

We present evidence of the positive causal impacts of research and development (R&D) tax incentives on a firm's own innovation and that of its technological neighbors (spillovers). Exploiting a change in the assets-based...Read more...

Journal article

Journal of Political Economy:

Carbon taxes, path dependency, and directed technical change: evidence from the auto industry

Can directed technical change be used to combat climate change? We construct new firm-level panel data on auto industry innovation distinguishing between ?dirty? (internal combustion engine) and ?clean? (e.g., electric, ...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...

SERC/Urban and Spatial Programme Discussion Paper

Credit Constraints and the Composition of Housing Sales. Farewell to First-Time Buyers?

During the housing bust of 2008?2009, home prices and transaction volumes fell across the entire United Kingdom. However, while the fall in prices was similar across housing types, transaction volumes fell more for homes...Read more...

CEP election analysis

Top Rate of Income Tax

The main political parties disagree about the appropriate rate of income Tax on the highest incomes. This note lays out the economic principles surrounding the top rate of income tax and considers the evidence that high ...Read more...

CEP discussion paper

Relaxing credit constraints in emerging economies: the impact of public loans on the performance of Brazilian manufacturers

n emerging economies credit constraints are often perceived as one of the most important market frictions hampering firm innovation and productivity growth in manufacturing. Huge amounts of public money are devoted to th...Read more...

Journal article

Journal of Public Economics:

The impact of a carbon tax on manufacturing: Evidence from microdata

We estimate the impact of a carbon tax on manufacturing plants using panel data from the UK production census. Our identification strategy builds on the comparison of outcomes between plants subject to the full tax and p...Read more...

CEP discussion paper

Eliciting taxpayer preferences increases tax compliance

Two experiments show that eliciting taxpayer preferences on government spending?providing taxpayer agency--increases tax compliance. We first create an income and taxation environment in a laboratory setting to test for ...Read more...

CEP discussion paper

Concentration versus re-matching? Evidence about the locational effects of commuting costs

Using administrative employer-employee data from Germany, I exploit two reductions of tax breaks for commuting in 2003/4 and 2006/7 to estimate commuting costs? effect on the decision to switch job and move house. Standa...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...

CEP discussion paper

Survive Another Day: Using Changes in the Composition of Investments to Measure the Cost of Credit Constraints

We introduce a novel empirical strategy to measure credit shocks. Theoretically, we show that credit shocks reduce the value of long term investments relative to short term ones. Under the (conservative) assumption that ...Read more...

SERC/Urban and Spatial Programme Discussion Paper

The Causal Effect of Credit Guarantees for SMEs: Evidence from Italy

We evaluate the effectiveness of a partial credit guarantee program implemented in a large Italian region using unique microdata from a broad set of firms. Our results show that the policy was effective to the extent tha...Read more...

CEP discussion paper

Exporters, Importers and Credit Constraints

This paper analyses the interaction between credit constraints and trading behaviour. I construct a unique dataset containing firm-level trade transactions data, balance sheets and credit scores from an independent credi...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...

CentrePiece article

Big ideas: Innovation policy

In the last CentrePiece, John Van Reenen stressed the importance of competition and labour market flexibility for productivity growth. His latest in CEP's 'big ideas' series describes the impact of research on how policy...Read more...

SERC/Urban and Spatial Programme Discussion Paper

Tax Competition Among Local Governments: Evidence from a Property Tax Reform in Finland

This paper uses a Finnish policy intervention to study tax competition among local governments. Changes in the statutory lower limits to the property tax rates are used as a source of exogenous variation to estimate the ...Read more...

SERC/Urban and Spatial Programme Discussion Paper

House Prices and Credit Constraints: Making Sense of the U.S. Experience

Most US house price models break down in the mid-2000's, due to the omission of exogenous changes in mortgage credit supply (associated with the sub-prime mortgage boom) from house price-to-rent ratio and inverted housin...Read more...

SERC/Urban and Spatial Programme Discussion Paper

Shifting Credit Standards and the Boom and Bust in U.S. House Prices

The U.S. house price boom has been linked to an unsustainable easing of mortgage credit standards. However, standard time series models of US house prices omit credit constraints and perform poorly in the 2000?s. We inco...Read more...

CEP discussion paper

Communal Responsibility and the Coexistence of Money and Credit Under Anonymous Matching

Communal responsibility, a medieval institution studied by Greif (2006), supported the use of credit among European merchants in the absence of modern enforcement technologies. This paper shows how this mechanism helps t...Read more...

CentrePiece article

In brief... The future of finance

A new CEP report says that the financial system has become far more complicated than it need to be - and dangerously unstable too...Read more...

CEP discussion paper

Adjusting to Capital Account Liberalization

We study theoretically how the adjustment to liberalization of international financial transaction depends upon the degree of domestic financial development. Using a model with domestic and international borrowing constr...Read more...

SERC/Urban and Spatial Programme Discussion Paper

The Mortgage Interest Deduction and its Impact on Homeownership Decisions

This paper examines the impact of the combined U.S. state and federal mortgage interest deduction (MID) on homeownership attainment, using data from 1984 to 2007 and exploiting variation in the subsidy across states, ove...Read more...

SERC/Urban and Spatial Programme Discussion Paper

Housing Markets and the Financial Crisis of 2007-2009: Lessons for the Future

An unsustainable weakening of credit standards induced a US mortgage and housing bubble whose consumption impact was amplified by innovations altering the collateral role of housing. In countries with more stable credit ...Read more...

CEP election analysis

Financial Regulation: Can We Avoid Another Great Recession?

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CEP election analysis

Bankers' Bonuses

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CEP discussion paper

Welfare Policy and the Distribution of Hours of Work

We examine the distribution of hours of work across industrial sectors in OECD countries. We find large disparities when sectors are divided into three groups: one that produces goods without home substitutes and two oth...Read more...

CEP discussion paper

The Impacts of the Climate Change Levy on business: Evidence from Microdata

We estimate the impacts of the Climate Change Levy (CCL) on manufacturing plants using panel data from the UK production census. Our identification strategy builds on the comparison of outcomes between plants subject to ...Read more...

CEP discussion paper

Employment Outcomes in the Welfare State

We examine the implications of tax and subsidy policies for employment in the 'three worlds of welfare', Anglo-Saxon, Continental European and Scandinavian. We argue that home production is key to a proper evaluation of ...Read more...

CEP discussion paper

Seigniorage

In this paper I analyse four different but related concepts, each of which highlights some aspect of the way in which the state acquires command over real resources through its ability to issue fiat money. They are (1) s...Read more...

CEP discussion paper

The Incidence of an Earned Income Tax Credit: Evaluating the Impact on Wages in the UK

Tax credits have been a popular way to alleviate in-work poverty. The assumption is typically that the incidence is on the claimant workers. However, economic theory suggests no particular reason to believe that this sho...Read more...

CEP discussion paper

The Incidence of UK Housing Benefit: Evidence from the 1990s Reforms

Housing Benefit (HB) in the UK subsidizes the rent of tenants in both the private and public sectors. Its share in total welfare benefits has risen markedly through time and there is widespread dissatisfaction with it. B...Read more...

CEP discussion paper

Measuring the Cost Effectiveness of an R&D Tax Credit for the UK

This paper investigates the economic impact of the government's proposed new UK R&D tax credit. We measure the benefit of the credit by the effect on value added in the short and long?run. This is simulated from existin...Read more...