Robert Ainsworth, Rajeev Dehejia, Cristian Pop-Eleches , Miguel Urquiola, 07 February 2021

While giving households the freedom to choose their children’s schools is said to improve educational outcomes, households do not always choose the option that would boost their child’s performance the most. This column uses an informational experiment in Romania to examine whether households simply lack information about the schools’ ‘value-added’ or prefer to prioritise other school traits. When informed about the value-added of the local schools, households assigned higher preference ranks to high value-added schools. However, the experiment also affected the preferences of the students, suggesting that both information limitations and preferences seem to matter in school choice.

Isabela Manelici, Smaranda Pantea, 08 November 2020

Industrial policies can be an effective tool for governments to shape the development of different sectors to achieve productivity growth. But there is little evidence of their effectiveness or efficiency. This column examines the impact of an income tax break for IT workers in Romania. The findings suggest that targeted policies of this kind can boost key sectors. This finding is encouraging in terms of the ability of governments to design and implement effective industrial policies. 

Beata Javorcik, Yue Li, 15 February 2013

Retailing has experienced disruptive technology progress in recent decades – what might be called Walmartisation. This column explains how the entry of global retail chains may transform the retail sector and the supplying industries in the host economies. Focusing on the Romanian case, it shows that a 10% increase in the number of foreign chains’ outlets is associated with a 2.4% to 2.6% increase in the productivity in the supplying industries.

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