Wendy Carlin, David Soskice, 23 January 2018

Following the post-financial crisis recession, the UK and other high-income countries have experienced slow growth and stagnant productivity, along with both low inflation and, more recently, low unemployment. This column introduces an intuitive macroeconomic model that helps explain this puzzling combination.

Jonathan Haskel, Stian Westlake, 23 January 2018

Many economists have suggested that slowing technical innovation is behind the secular stagnation and slowdown in total factor productivity growth that have plagued many advanced economies since the Global Crisis. This column argues that the recent rise of the intangible economy could play an important role. An assessment of measurement trends and the properties of intangible investment across the globe suggests that total factor productivity growth will continue to be low until governments design the institutions an intangible economy needs, and until its commercial, legal, and ethical norms are worked out.

Koji Ito, Ivan Deseatnicov, Kyoji Fukao, 23 January 2018

The study of global value chains has become increasingly relevant as production becomes more and more fragmented across countries. This column uses evidence from Japan to evaluate recent theories that such chains have caused some of the country’s industries to become less competitive. The findings suggest that considering production for exports and domestic sales separately may provide a more complete picture of firm heterogeneity within industries, and a more complete picture of interconnected countries at the industry level.

Laurens Cherchye, Bram De Rock, Rachel Griffith, Martin O'Connell, Kate Smith, Frederic Vermeulen, 22 January 2018

The impact of variation in diet quality across individuals on obesity and diet-related disease has received much attention, but variation in individuals’ diet quality over time less so. This column combines British data on food purchases with a model in which individual choice is driven by the influence of a healthy self and an unhealthy self to examine self-control problems in food choice. The results indicate that self-control problems in food purchases are important, and that the interaction of the mechanisms at play merits investigation.

Hannes Mueller, Dominic Rohner, 22 January 2018

Power sharing has been proposed as a potential solution to political violence in ethnically or religiously diverse countries. Using data from the Troubles in Northern Ireland, this column shows that power sharing has significant and substantial effects in terms of curbing violence. These positive effects disappear when power sharing ends, however, implying that that political cooperation and inclusion need to be maintained in the long run if the benefits of lower violence are to continue.

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