Henri De Groot, Gerard Marlet, Coen Teulings, Wouter Vermeulen, 21 June 2015

Only a few decades ago many talked about the ‘death of cities’. Today, many cities have emerged as hubs of economic activity. This column argues such a phenomenon is due to spill-overs and agglomeration of human capital. The popularity of certain cities is explained by their attractiveness for innovative enterprises and high-educated top talent. But since locations where top talent clusters are scarce, land rents on these locations are high.

Odran Bonnet, Pierre-Henri Bono, Guillaume Chapelle, Étienne Wasmer, 30 June 2014

Thomas Piketty’s claim that the ratio of capital to national income is approaching 19th-century levels has fuelled the debate over inequality. This column argues that Piketty’s claim rests on the recent increase in the price of housing. Other forms of capital are, relative to income, at much lower levels than they were a century ago. Moreover, it is rents – not house prices – that should matter for the dynamics of wealth inequality, and rents have been stable as a proportion of national income in many countries.

Bernardo Guimaraes, Kevin Sheedy, 05 July 2012

Institutions are a key determinant of economic development and indeed many developing institutions are deeply dysfunctional. This column presents a new model suggesting that those in power may prefer to keep bad institutions despite their anti-development effects since they alllow the elite to grab a bigger slice of a smaller pie.

Giovanni Peri, 20 November 2007

Research on US data shows that high immigration cities experienced higher wage and housing price growth. Immigration had a positive productivity effect on natives overall, but important distributional effects. Highly educated natives enjoyed the largest benefits while the less educated did not gain (but did not lose much either).

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