Alexander Cappelen, Bertil Tungodden, 26 May 2016

What happens in the brain when something is fair or unfair? In this video, Alexander Cappelen and Bertil Tungodden present their research on the effects of fairness on our brains. Using fMRI technology, the neuroeconomics study shows that the brain reacts to unfairness. Income inequalities are perceived as fair if they reflect different work contributions. This video was recorded at the Choice Lab, Norwegian School of Economics, in Bergen.

Peter Petri, Michael Plummer, 30 April 2016

The Trans-Pacific Partnership faces a serious political challenge in the US, with some viewing it as primarily benefitting the wealthy. This column argues that it will slightly favour middle- and low-income US households, while also generating substantial benefits for poorer developing countries. As with any trade agreement, the gains and losses will be asymmetrically distributed, but the gains should permit ample support for individuals adversely affected.

Javier Cravino, Andrei Levchenko, 23 November 2015

Large exchange rate swings remain a prominent and recurring feature of the world economy. This column uses household consumption patterns to examine the distributional impact of the devaluation of the peso during Mexico’s ‘Tequila Crisis’. Cost of living increases are found to be 1.25 to 1.6 times higher for the poor compared to the rich. In the interests of equity, exchange rate policy should take account of such distributional impacts.

Jonathan Heathcote, Gianluca Violante, Fabrizio Perri, 02 February 2010

The unemployment rate has dominated economic headlines, but recessions raise numerous problems. This column warns that recessions raise earnings inequality and income inequality, absent mitigating government programmes. The current recession has indeed raised such inequality, but consumption inequality has surprisingly declined.

Xavier Sala-i-Martin, Maxim Pinkovskiy, 22 January 2010

World poverty is falling. This column presents new estimates of the world’s income distribution and suggests that world poverty is disappearing faster than previously thought. From 1970 to 2006, poverty fell by 86% in South Asia, 73% in Latin America, 39% in the Middle East, and 20% in Africa. Barring a catastrophe, there will never be more than a billion people in poverty in the future history of the world.

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