April 2017

Bignon, Jobst, 30 April 2017, 6853 reads

Data constraints have made it difficult to establish a causal link between the design of central bank eligibility frameworks and economic outcomes. In this column, the authors argue the series of non-agricultural economic crises in 19th century France caused by phylloxera – a disease that devastated vineyards in the country – allows the confounding factors that normally impede the investigation of lending of last resort policies to be disentangled. Regions that benefitted from easier access to central bank refinancing exhibited lower default rates, as firms could more easily smooth liquidity shocks. Importantly, the lower default rates were not the result of the central bank bailing out the private sector by buying up worthless assets.

Kanbur, Snell, 30 April 2017, 7334 reads

Observed inequality has limitations for normative assessment, which raises the question of whether inequality measurement is redundant and should be replaced by the study of the underlying causes of inequality. This column argues that even in the context of the ‘process versus outcomes’ question, overall indices of inequality still maintain their relevance, but now as statistical tests of fairness.

Rubolino, Waldenström, 29 April 2017, 6099 reads

The responsiveness of high-income earners to taxation is a central aspect of tax system design. This column presents patterns in the tax elasticity of top earners for up to 30 countries over a period of 115 years. Tax elasticities vary tremendously over time, space, and income, with a J-shaped pattern emerging over the past century. Tax avoidance behaviour strongly influences the elasticity of the very top earners, while there is less support for the role of labour supply responses across earners.

Gürkaynak, Tille, 28 April 2017, 17055 reads

Are Dynamic Stochastic General Equilibrium (DSGE) models worthwhile? Some economists suggest not, due to their complex nature and disputable assumptions.  This column introduces a new eBook which provides an all-round evaluation of DSGE models, widely used by many central banks, by looking at their current and historical uses as well as their future position in economics.

Baier, Yotov, Zylkin, 28 April 2017, 7888 reads

There is a large empirical literature examining the effects of free trade agreements. However, most studies to date have focused on a common average effect across all agreements or have assumed that the effects are common across similar types of agreements. This column examines heterogeneity in the effects of free trade agreements. Along with across-agreement heterogeneity, substantial within-agreement heterogeneity is observed. The effects of a specific agreement can be starkly different for two trading partners.

Auer, Borio, Filardo, 28 April 2017, 11978 reads

In the past two decades, international trade has been transformed by the rise of global value chains. This column suggests that the rise of global value chains can help resolve the puzzle of the increasingly global nature of domestic inflation. Their expansion has greatly increased international competition for both intermediate and final goods and services, meaning price pressures arising from economic slack in one country become more relevant for others. This may be changing the trade-offs central banks face when managing domestic inflation.

Eggertsson, Mehrotra, Robbins, 27 April 2017, 7214 reads

The Federal Reserve has raised rates twice since the 2016 US election and eyes are now on the future path of the Federal Funds rate, which depends crucially on the Fed’s view of the neutral rate of interest. This column argues that that current policy may be at or close to the natural rate, and that the forces that have led to the low rates are unlikely to be reversed in the immediate future. It also identifies measures that could eliminate secular stagnation via appropriate policy, should negative rates persist.

Cheung, Chinn, Garcia Pascual, Zhang, 27 April 2017, 11816 reads

Previous assessments of nominal exchange rate determination have focused on a narrow set of models. Using data for six currencies, this column examines the performance of an expanded set of models at various forecast horizons. No model consistently outperforms a random walk benchmark, although the purchasing power parity model does fairly well. Overall, combinations of model, specification, and currency that work in one period will not necessarily work well in another.

Kollmann, Pataracchia, Raciborski, Ratto, Roeger, Vogel, 27 April 2017, 44577 reads

The Global Crisis led to a sharp contraction and long-lasting slump in both Eurozone and US real activity, but the post-crisis adjustment in the Eurozone and the US shows striking differences. This column argues that financial shocks were key determinants of the 2008-09 Great Recession, for both the Eurozone and the US. The post-2009 slump in the Eurozone mainly reflects a combination of adverse aggregate demand and supply shocks, in particular lower productivity growth, and persistent adverse shocks to capital investment linked to the poor health of the Eurozone financial system. Mono-causal explanations of the persistent slump are thus insufficient. Adverse financial shocks were less persistent for the US.

Dal Bó, Finan, Folke, Persson, Rickne, 26 April 2017, 7722 reads

Ancient Athenians drew lots to determine who served in public office, but oligarchs at that time (and ever since) have argued that there is a trade-off between competence and fair representation. This column uses Swedish population data on cognitive and leadership ability to argue that democracy in Sweden has created government by competent people who are representative of all walks of life. Sweden’s inclusive meritocracy suggests that electoral democracy can help us avoid the tension between representation and competence.

Caliendo, Feenstra, Romalis, Taylor, 26 April 2017, 13322 reads

Tariff barriers today are small on average, suggesting only limited welfare gains from their removal. This column argues, however, that the current generation of standard trade models have missed an important source of gains from trade by neglecting the more complex case of a world with production linkages and multiple sectors. Under monopolistic competition, the effects of firm entry may be so powerful, that optimal tariffs are not positive but negative. Even the removal of small positive tariffs could thus produce significant welfare gains.

Inoue, Todo, 25 April 2017, 7945 reads

Natural disasters have enormous economic consequences, with the 2011 Great East Japan Earthquake providing a particularly stark recent example. This column uses supply chain data for more than one million Japanese firms to explore how negative shocks from natural disasters propagate through firm networks. Shocks are found to propagate very quickly, due in large part to certain ‘hub’ firms that have a high number of supply chain partners. Production substitution is the key to slowing the propagation.

Mayhew, 25 April 2017, 9862 reads

Higher education authorities are concerned about the implications of Brexit for the income and international standing of UK universities – the possible reduction in the numbers of EU students and staff and the loss of EU research funding. This column explores these threats and argues that there may be real cause for concern among lower ranking institutions faced by the perfect storm of Brexit, a general toughening of immigration rules, and greater competition promised in the UK government’s recent White Paper on higher education. 

Abad, D'Errico, Killeen, Luz, Peltonen, Portes, Urbano, 25 April 2017, 11072 reads

The Global Crisis highlighted how linkages between banks and shadow banking entities can lead to the amplification of shocks across borders and sectors, prompting policymakers to seek to improve the monitoring framework for assessing the interconnectedness of the shadow banking system. This column documents the cross-sector and cross-border exposures of EU banks to globally domiciled shadow banking entities. Among the findings are that 60% of these exposures are to shadow banking entities domiciled outside the EU and hence outside its supervisory powers,  and that approximately 65% of the exposures are to non-money market fund investment funds, finance companies, and securitisation entities. 

Kose, Ohnsorge, Ye, 24 April 2017, 6470 reads

Investment growth in emerging market and developing economies has slowed sharply since 2010. This column argues that this slowdown reflects a range of factors, including negative terms-of-trade shocks, slowing FDI inflows, weak activity, and rising private debt burdens and political risk. Policymakers can boost investment directly through public investment, and indirectly by taking measures to improve overall growth prospects and the business climate.

Beck, 24 April 2017, 8151 reads

Nine years after the onset of the Global Crisis, the problem of non-performing assets is still acute in the Eurozone. This column takes stock of the different proposals to deal with the issue. It argues that a Eurozone-level asset management company can resolve bank fragility and spur economic recovery, but warns that lack of political will and legal barriers can impede the creation of such an agency. 

Alacevich, Tarozzi, 23 April 2017, 7758 reads

Data typically show that people become progressively taller as living standards improve. But despite impressive recent rates of economic growth, India remains one of the worst-performing countries in terms of height. Using data from Indian and English health surveys, this column reveals that, conditional on parents’ height, children of Indian ethnicity are on average taller when born and raised in England rather than in India. The results provide evidence against the importance of genetic factors in explaining the disappointing growth performance of Indian children.

Bordo, 23 April 2017, 10260 reads

Beginning in 1944, the Bretton Woods system played a major role in shaping the global economy in the post-war period. This column describes how although it was successful in bringing about exemplary and stable economic performance in the 1950s and 1960s, familiar confidence and liquidity problems, as well as inflationary pressure and central bankers’ responses to it, ensured that Bretton Woods was short-lived. Nonetheless, legacies of the system, like the dollar standard, remain with us and will likely be with us for some time to come.

Shiller, Waldfogel, 22 April 2017, 10830 reads

The vast majority of online content is financed through ad revenue. This column looks at how the growing use of ad blockers is affecting incentives for online content creation. Using data on site traffic and the proportion of users with ad blockers engaged, it argues that ad blocking intially increases traffic, but as ad revenues decline and sites are less inclined to invest in content, the pattern reverses and visitor numbers decline.

Clay, Lingwall, Stephens, 22 April 2017, 6993 reads

The exact causes of (and lessons from) the Great Compression – the decline in US income inequality in the mid-20th century – remain unclear. This column uses census data and changes in law to examine the effect of education across the complete distribution of income. Policies that increased attendance for young children in the late 19th and early 20th centuries appear to have had long-term implications for earnings and inequality, with returns to schooling highest among those at the lower end of the income distribution.

Gehrig, Iannino, 21 April 2017, 11211 reads

The first Basel Accord initiated what has become a three decade-long process of regulatory convergence of the international banking system. This column argues that by trying to regulate minimal capital standards, the Basel process itself contributed to an ever-increasing shortfall in aggregate bank capital. Consequently, European banks have become increasingly exposed to systemic risk, suggesting that expansive monetary policy could adversely affect the resiliency of banks. 

Tomlinson, 21 April 2017, 15729 reads

Many commentators have portrayed Britain’s referendum decision to leave the EU as being motivated by a popular rejection of globalisation. This column argues that in seeking to understand the economic basis of the Brexit vote, we should concentrate not on globalisation but on the long-term impact of de-industrialisation, which has left a legacy of a much more polarised service sector labour market, with large numbers of people condemned to poorly paid and insecure jobs.

Huertas, 21 April 2017, 4620 reads

Central banks helped contain the Global Crisis using a policy of 'eligibility easing'. The policy expanded the collateral that could be used to access liquidity facilities and the range of counterparties that could request liquidity. This column argues that although eligibility easing successfully reduced the need for central banks to act as lender of last resort or to provide emergency liquidity assistance, the time has come to determine its future role as a macro-prudential tool.

Nangle, Tickle, 20 April 2017, 5827 reads

While defined benefit pension schemes are typically viewed as users rather than sources of sponsor-firm funds, the considerations taken into account when firms choose to scale contributions are such that they become indistinguishable from other firm financing decisions. This column analyses how pension scheme funding deficits arise and argues that whilst deficits do not exist by design, firms’ decision to fund or underfund a defined benefit scheme might usefully be examined as one of many competing sources of long-term finance.

Clemens, Lewis, Postel, 19 April 2017, 10784 reads

Many claim that immigrants negatively affect the labour market prospects of native workers in advanced countries. This column studies a large change in immigration restrictions in the US – the 1965 exclusion of almost half a million Mexican seasonal farm workers (braceros) from the US labour market. The bracero exclusion did not increase the employment or wages of native workers, and technology adoption was one of the adjustment channels. 

Irwin, 19 April 2017, 29637 reads

The idea of comparative advantage is an essential part of every economists’ intellectual toolkit. On the 200th anniversary of the publication of “On the Principles of Political Economy and Taxation”, this column salutes David Ricardo’s achievement of setting out the theory for comparative advantage for the first time.

Bottazzi, See, Manasse, 18 April 2017, 6528 reads

Modern Italy has more inter-ethnic marriages – a consequence of recent immigration. This column uses recent census data to show that  inter-ethnic marriages in Italy have a significantly higher risk of separation, which persists even when accounting for spousal traits and self-selection. The difference is smaller for recent marriages, reflecting a more secular society.

Crafts, 18 April 2017, 7910 reads

Depending on the outcome of negotiations, Brexit potentially changes the rules that govern the use of industrial policy. The UK government has in mind risky policy reforms that appear to be incompatible with EU rules on state aid. This column argues that this is an unheralded downside of a hard Brexit. 

Miller, Ghosal, 17 April 2017, 10304 reads

Lacking some supra-national, overseeing authority, sovereigns in default typically renegotiate with their creditors. In these negotiations, the owed principal typically receives a ‘haircut’. This column explores whether overburdened sovereign debtors can strategically leverage delay as they bargain with their creditors. Under asymmetric information, a delay in the form of offers that the debtor knows won’t be accepted can work out in the debtor’s favour. The findings suggest that strategic delay can be used to show where restructuring is necessary.

Fratesi, Rodríguez-Pose, 16 April 2017, 7201 reads

Prior to the Great Recession, many European regions witnessed the emergence of economies which were impervious to changes in the business cycle (or ‘sheltered’ economies). We know little about how such regions coped with the Global Crisis. This column argues that regions with more sheltered economies performed worse in terms of employment change after the crisis compared to those with more open economies. Regional policy should focus on making lagging regions more open, dynamic, and competitive.

Lindert, 15 April 2017, 9095 reads

The debate over how the real income gaps between countries have evolved over the centuries has heated up since the 1990s. This column argues for a reshuffling of the global ranks between Columbus and WWI. Findings include that (i) the real income gap between northwest Europe and the major Asian countries was greater since the 1500s than previously estimated; (ii) contrary to all previous estimates, Mughal India around 1600 was already far behind both Japan and Northwest Europe; and (iii) average incomes in North America were already higher than in Britain or France in the late 17th century, long before Maddison’s suggested catching-up date for the US versus Britain of around 1900. 

Ball, Chari, Mishra, 14 April 2017, 5702 reads

The inflation rate in India rose from 3.7% to 12.1% between 2001 and 2010, raising concerns that it will rise again. This column separately analyses India's core and headline inflation rates and argues that the average level of core inflation has been consistently less than that of headline inflation. Short-term volatility in prices, especially for food, has driven India’s headline inflation. Estimating a Phillips curve suggests a core inflation–output trade-off in India similar to that of advanced economies during the 1970s and 1980s.

Licchetta, Stelmach, 14 April 2017, 7518 reads

Population ageing is one of the most commonly cited drivers of rising healthcare spending. However, other non-demographic cost pressures, such as increasing relative health spending and technological advancement, also contribute substantially over the longer term. This column argues that taking these additional factors into account, the UK’s net public debt due to healthcare is projected to be up to twice as large in 2066. These findings stress the importance of balancing the budget as early as possible to keep public finances on a sustainable path.

Rubolino, Waldenström, 13 April 2017, 14878 reads

The link between tax progressivity and the income distribution is the subject of intense debate. This column presents new evidence from tax reforms during the 1980s and 1990s to examine how reduced progressivity affects top income shares. Reduced progressivity boosted top incomes, particularly for those in the top 0.1% of earners. Income tax changes are therefore a plausible candidate for explaining the recent surge in income inequality.

Ezcurra, Rodríguez-Pose, 13 April 2017, 6134 reads

Spatial inequality is understood as a function of geography or administrative planning, but its relation to ethnic segregation is less well understood. This column analyses this relationship using regional data for 71 countries with different levels of economic development. The degree of spatial concentration of ethnic groups is a robust and highly significant predictor of within-country income disparities. More ethnically segregated countries experience higher levels of spatial inequality and are thus more prone to conflict.

Dippel, Gold, Heblich, Pinto, 12 April 2017, 12071 reads

Finding exogenous variables to establish control mechanisms is difficult outside of randomised control trials. This column shows that under certain circumstances, it is possible to separate out the causal effect of an unknown variable on the observed and unobserved variables. When applied to trade exposure and voter sentiment for populist parties, the model is largely accurate and gives the surprising finding that 170% of the total effect of trade exposure on populist voting is explained by labour markets, meaning that trade exposure’s other effects on voting – those that do not run through labour markets – are politically moderating.

Danthine, 12 April 2017, 5879 reads

In this column, Jean-Pierre Danthine, a co-author of "Making Sense of Subsidiarity: How Much Centralization for Europe?", revisits the report nearly 25 years on from its publication. He examines the main themes of the report and shows how such areas as centralisation/decentralisation, subsidiarity, and macroeconomic stabilisation have played out over the years since the report was published. He concludes that the report was both prescient and, at the same time, represents a view from the past of the 'road not taken'.

Lombardi, Siklos, 11 April 2017, 9729 reads

Macroprudential policies increasingly lie at the heart of how central banks jointly manage of price and financial stability. However, consensus over best practice has yet to emerge. This column presents an improved indicator to measure individual economies’ macroprudential policy capacity. Improvements include incorporating the shadow banking sector, and distinguishing the types of institutions that wield authority. Results suggest that improvements continue to be made with respect to the development of an international financial system with improved resilience to shocks. 

Crescenzi, Di Cataldo, Rodríguez-Pose, 11 April 2017, 10517 reads

Transport infrastructure investment is a cornerstone of growth-promoting strategies around the world. However, investment in new infrastructure is not always conducive to stronger economic performance. This column argues that the lack of positive economic returns may be due to institutional failures mitigating the growth effects of public capital expenditures. In contexts marked by weak and inefficient governments and widespread corruption, different types of road investments yield low or no economic returns.

House, Proebsting, Tesar, 11 April 2017, 33486 reads

Austerity policies implemented during the Great Recession have been blamed for the slow recovery in several European countries. Using data from 29 advanced economies, this column shows that austerity policies negatively affect economic performance by reducing GDP, inflation, consumption, and investment. It also warns that efforts to reduce debt through austerity in the depths of the economic recession were counterproductive.

Bar-Gill, Gandal, 10 April 2017, 12070 reads

Online echo chambers – in which people engage only with others that share, and media that reflect, their opinions and biases – have become an area of concern in the wake of last year’s startling political upsets. This column investigates how users navigate and explore an online content space. Highly social users and younger users are most likely to get caught in echo chambers, while opinion leaders are less likely to get caught. Reducing the visibility of content popularity information, such as ‘like’ and ‘view’ counts, may help mitigate echo chamber effects. 

Claessens, van Horen, 10 April 2017, 5889 reads

Foreign banks can be important for trade. They can increase the availability of external finance for exporting firms and help overcome information asymmetries. This column shows that firms in emerging markets tend to export more when foreign banks are present, especially when the parent bank is headquartered in the importing country. In advanced countries, where financial markets are more developed and information is more readily available, the presence of foreign banks does not play such a role. Financial globalisation through the local presence of foreign banks can thus positively affect real integration.

Acemoğlu, Restrepo, 10 April 2017, 43939 reads

As robots and other computer-assisted technologies take over tasks previously performed by labour, there is increasing concern about the future of jobs and wages. This column discusses evidence that industrial robots reduced employment and wages between 1990 and 2007. Estimates suggest that an extra robot per 1,000 workers reduces the employment to population ratio by 0.18-0.34 percentage points and wages by 0.25-0.5%. This effect is distinct from the impacts of imports, the decline of routine jobs, offshoring, other types of IT capital, or the total capital stock. 

Auriol, Platteau, 09 April 2017, 6795 reads

The extent to which Islam is responsible for the problems encountered in countries in which it dominates has been the subject of much attention. This column explores the effect of religions with differing organisational structures on progressive institutional reforms, state corruption, and political stability. Decentralised religions such as Islam are more conducive to institutional stagnation and political instability than centralised religions such as Catholicism or Eastern Christianity, with negative consequences for long-term development.

Durlauf, 08 April 2017, 39734 reads

Kenneth Arrow, co-recipient of the 1972 Nobel Memorial Prize in Economic Sciences, passed away in February. This column outlines the ideas of one of the transcendent minds in the history of economics. The author, holder of a chair named in Arrow’s honour, notes that while his contributions were central in creating much of what constitutes modern quantitative social science, he was always profoundly aware of the limitations of the edifice, constantly seeking to challenge and broaden economic theory.

Editors, 08 April 2017, 12267 reads

Central banks are now moving towards exiting from quantitative easing and other unconventional monetary policies. This column highlights a 2013 CEPR/ICMB report that examined the policy challenges surrounding this difficult and unprecedented task. It explores ways policymakers could handle exit and its long-run implications. This is part of the CEPR Flashbacks series that highlights the relevance of past CEPR reports to today’s challenges.

Our CEPR Flashbacks highlight past CEPR reports relevant to today’s challenges. This column highlights a report first published in 2013, which examined how the exit from unconventional monetary policies could be handled by policymakers, what the post-exit world will look like, and the long-run implications for central banks. 

Fontagné, Martin, Orefice, 07 April 2017, 10635 reads

With Brexit and the election of Donald Trump, tariffs and exchange rates are back at the centre stage of policy debates. This column revisits the assumptions economists make when estimating how tariffs and exchange rates affect exporters’ performance. It argues that the elasticity of firm-level exports to firm-level export prices is an important factor that should be taken into account. Using French firm-level data, it finds that exporters react even more strongly to firm-level electricity cost shocks than to tariff or exchange rate shocks.

Jordà, Richter, Schularick, Taylor, 07 April 2017, 20293 reads

Higher capital ratios are unlikely to prevent a financial crisis. This is empirically true both for the entire history of advanced economies from 1870 to 2013 and for the post-WW2 period, and holds both within and between countries. The authors of this column reach this conclusion using newly collected data on the liability side of banks’ balance sheets in 17 countries.  However, higher capital buffers have social benefits in terms of macro-stability: recoveries from financial crisis recessions are much quicker with higher bank capital. 

Di Cataldo, Rodríguez-Pose, 06 April 2017, 5826 reads

EU development strategies are aimed at producing growth with “a strong emphasis on job creation and poverty reduction”. But it is unclear whether the economic conditions in EU regions are ideal for the generation of employment and labour market inclusion. This column argues that the quality of public institutions and the endowment of human capital – two key factors behind EU growth strategies – are essential for the reduction of labour market exclusion and the promotion of inclusive employment across Europe.

Chen, Karabarbounis, Neiman, 05 April 2017, 19459 reads

Corporate saving has increased relative to GDP and corporate investment across the world over the past three decades, reflecting how the global decline in the labour has led to increased corporate profits. This column characterises these trends using national income accounts and firm-level data, and relates them to firm characteristics and the accumulation of financial assets. In response to declines in the components of the cost of capital, a model with capital market imperfections generates an increase in corporate saving similar to that found in the data.

Powell, Ruiz Gómez, 05 April 2017, 7159 reads

Latin America and the Caribbean needs higher growth without increasing debt. This column, based on the new 2017 IDB macroeconomic report, argues that completing intra-regional trade integration is a low-hanging fruit. Trade deals abound, the region has advanced, but regional trade is low – current agreements are too complex and inconsistent. A bottom-up, concrete, politically viable action plan is outlined. Deeper integration would boost growth in any scenario, but the pay-off is even larger if the world becomes more protectionist.

Guariso, Rogall, 04 April 2017, 9375 reads

There is a lively debate about the role of inequality as a trigger of ethnic conflicts. This column reports groundbreaking research into the effect of the amount of regional rainfall on crops, which is used to measure inequality between ethnic groups. Inequality caused by the weather's effect on crops has a large and significant impact on the prevalence of ethnic conflict. This effect is strongest when a lack of rainfall penalises ethnic groups with no access to power. 

Perotti, 04 April 2017, 8546 reads

The members of the Eurozone are diverse in terms of their institutional quality. This column outlines the redistributive effects created by the rigid structure of a monetary union next to its direct effects on monetary credibility, and highlights the general equilibrium benefits that core countries draw from it and the cost paid by the productive sector in ‘weaker’ countries. Europe faces a clear challenge, but the success of the transition to the banking union suggests that collective efforts towards institutional evolution can succeed.

O'Rourke, Williamson, 03 April 2017, 10159 reads

The Great Divergence in living standards between the West and the Rest is being eroded as developing economies rapidly industrialise. This column explores the origins of modern industrial growth in regions that fell behind the West during the Great Divergence. Modern manufacturing growth in the global periphery dates back to the interwar period, and in some regions much earlier. It depended on a complex interaction between factor endowments, the global context, economic policies, and luck.

Hatton, 03 April 2017, 14064 reads

There is growing concern about the long-term health effects of atmospheric pollution. Conditions were much worse a century ago in Western countries, when coal-fired industrialisation reached its zenith, than they are now in countries where pollution presents the greatest challenges today. This column highlights the effect of polluted air on adult heights using a sample of British army soldiers in WWI. Pollution accounts for a difference of almost an inch between the average adult heights in least and most polluted localities.

Kilian, 02 April 2017, 10279 reads

Technological advances caused a boom in the production of ‘tight’ oil in the US, starting in 2008, which has changed how the US is affected by movements in global fuel prices. This column identifies how the US tight oil boom contributed to the decline of global oil prices in 2014-16, and how it has changed the way oil price shocks are transmitted – not just in the US but in the global economy, explaining how European gasoline prices have been less responsive than the US price of gasoline to shocks.

Razin, 01 April 2017, 6182 reads

Israel has received almost one million immigrants from the former Soviet Union, close to 19% of its established population. The extraordinary exodus of Soviet Jews to Israel in the 1990s is relevant to the current debate about globalisation. This column argues that the wave of immigration was distinctive for its large high-skilled cohort and its quick integration into the domestic labour market. Soviet-Jew immigration raised productivity, underpinned technological prowess, and had a large impact on income inequality and redistribution in Israel’s welfare state.

Papageorge, Pauley, Cohen, Wilson, Hamilton, Pollak, 01 April 2017, 5325 reads

A link has been established between domestic violence and poor labour market outcomes. This column uses US data to explore the relationship between health and both domestic violence and drug use. HIV+ women who benefitted from the introduction of a medical innovation that delayed the onset of immune system decline experienced less domestic violence and reduced their drug use. Ignoring the link between medical innovation, health, and outcomes such as these is likely to lead to underinvestment in research.

Events