Stefan Pichler, Nicolas Robert Ziebarth, 12 May 2018

In the past decade, dozens of US cities and seven US states have mandated employers to offer paid sick leave. This column investigates the relationship between sick pay and influenza-like illness rates. The results suggest that the mandates reduced the spread of infectious diseases, while having no significant effect on employment or wages.

Bruno Biais, Jean-Charles Rochet, Paul Woolley, 21 August 2014

The Global Crisis has intensified debates over the merits of financial innovation and the optimal size of the financial sector. This column presents a model in which the growth of finance is driven by the development of a financial innovation. The model can help explain the securitised mortgage debacle that triggered the latest crisis, the tech bubble in the late 1990s, and junk bonds in the 1980s. A striking implication of the model is that regulation should be toughest when finance seems most robust and when innovations are waxing strongly.

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