Mary Amiti, Emmanuel Farhi, Gita Gopinath, Oleg Itskhoki, 19 June 2017

One component of the Republicans’ cash-flow tax proposal for corporate reform in the US is the inclusion of a border adjustment tax. This column, taken from a recent VoxEU.org eBook, assesess this politically controversial and often misconstrued tax adjustment that makes export sales deductible from the corporate tax base, while expenditure on imported goods would not be deductible. 

Ravi Kanbur, 13 June 2017

With the World Bank now far from the only game in town in providing development finance, this column argues that it should focus on issues which are truly global in scope, but questions the suitability of the World Bank’s signature instrument, the sovereign loan. The international community does rely on the Word Bank for one global public good – global consensus building – but the current situation of veto power in the hands of a US government which does not acknowledge global public good issues, as evidenced by its withdrawal from the Paris accord, is potentially lethal for perceived and actual independence in consensus building.

Thomas Buchmueller, Helen Levy, 11 June 2017

The Affordable Care Act (ACA), enacted in 2010, was intended to address long- standing problems with the American system of health care and health insurance. This column, taken from a new VoxEU eBook, reviews the main provisions of the ACA related to insurance coverage and healthcare costs, including what is known so far about their impact. It also discusses the recent Republican attempt to ‘repeal and replace’ the law.

Caroline Freund, 07 June 2017

In assessing the underlying causes of the US’ significant trade deficits, the Trump administration’s focus appears to be on alleged unfair trade practices of foreign countries. This column argues that international trade policy has a negligible effect on trade balances. The aggregate US trade deficit results from macroeconomic pressures, while bilateral deficits are due to structural factors, supply chains, and how trade is measured. 

Italo Colantone, Piero Stanig, 20 February 2017

The revival of nationalism in western Europe, which began in the 1990s, has been associated with increasing support for radical right parties. This column uses trade and election data to show that the radical right gets its biggest electoral boost in regions most exposed to Chinese exports. Within these regions communities vote homogenously, whether individuals work in affected industries or not. 

Alexander Wagner, Richard Zeckhauser, Alexandre Ziegler, 24 February 2017

The election of Donald Trump as president of the United States will profoundly affect the US and world economies. This column argues that the stock market has already identified winners and losers among companies and industries. It finds, for example, that investors expect US firms paying high taxes to be relative winners from the Trump presidency, and firms with substantial foreign involvement to be relative losers.   

Meredith Crowley, Huasheng Song, Ning Meng, 10 February 2017

The Trump administration’s announcement of its intention to impose a 20% tax on goods imported from Mexico and its calls for a 45% import tariff on goods from China have alarmed businesses and consumers alike. This column uses data on the foreign market entry decisions of Chinese firms to assess the impact that tariff scares and trade policy uncertainty have on trade flows. The evidence suggests that Trump's threats to raise tariffs can reduce US imports even if the administration doesn't follow through with the threatened tax increases.

Robert Shiller, James Heckman, Oliver Hart, 20 January 2017

What's next for the American economy? In this video, several Nobel Laureates give advice to President Donald J. Trump.

Chad Bown, 29 November 2016

Trade agreements involving the US could be the first economic casualty of the 2016 election. The existing US trade agreements rose from the ashes of WWII and the Great Depression. This column argues that understanding how they protect the US economy, American workers, and consumers is critical to avoiding a repeat of the policy mistakes of earlier eras.

Keith Head, Thierry Mayer, 12 November 2016

Unlike technical progress in transport or communication technologies, regional trade agreements are political decisions that can be reversed, as Brexit and the campaign promises of President-elect Donald Trump to raise tariffs on imports from Mexico demonstrate. This column analyses the consequences for the car industry of these two examples of the dismantling of an RTA. Car production would fall significantly in the UK under Brexit and in Mexico under ‘Trumpit’ due to a combination of tariff-induced sales losses and increased plant costs.

Events