Martin Nybom, Kelly Vosters, 14 October 2018

In 2014, Gregory Clark proposed a ‘simple law of mobility’ suggesting that intergenerational mobility is much lower than previously believed, and relatively uniform across countries. This column tests this law using US and Swedish data. The results show, in contrast to the simple law of mobility, no evidence of a rise in intergenerational persistence and no evidence of uniformity across countries.

Thorsten Beck, Emily Jones , Peter Knaack, 14 October 2018

In today’s world of globalised finance, regulators in developing countries have to weigh up the international ramifications of their decisions. This column presents the results of a research project which combines cross-country panel analysis and in-depth case studies of the political economy of the adoption of Basel II/III in the developing world. It finds that regulators in developing countries do not merely adopt Basel II/III because these standards provide the optimal technical solution to financial stability risks in their jurisdictions; concerns about reputation and competition are also important. 

Cevat Giray Aksoy, Christopher S. Carpenter, Ralph De Haas, Kevin Tran, 14 October 2018

Can the introduction of new legislation influence how citizens think about key social issues? This column uses the gradual rollout of same-sex relationship recognition policies throughout Europe to demonstrate how laws can shape attitudes towards sexual minorities. As marriage equality and other policies expand throughout the world we can expect to see continued improvements in attitudes towards sexual minorities in the countries involved but, conversely, anti-LGBT legislation could erode such acceptance.

Mikael Homanen, 14 October 2018

Bank creditors have non-financial preferences too, and may withdraw deposits as a form of discipline. This column shows that protests against the Dakota Access Pipeline that targeted investor banks caused significant decreases in deposit growth, and global data suggest that this type of reaction to bank-specific scandals is widespread.

Brian Bell, Rui Costa, Stephen Machin, 13 October 2018

Changes to compulsory school leaving laws that force some people to stay in school longer have been shown to boost education and reduce crime. This column uses changes in such laws in the US to show that the driver behind the reduction in crime is not better employment outcomes, but ‘dynamic incapacitation’. Crime rates peak at age 18, and keeping teenagers in school during this key period can help ensure that they never proceed down the wrong track.

Other Recent Columns:

Events

CEPR Policy Research