Institutions and economics

Thorsten Beck, 29 September 2021

The World Bank permanently suspended its Doing Business project earlier this month. This column argues that the suspension puts an end to a very useful data-collection exercise that went astray by focusing on rankings and political publicity. Beyond specific conflicts of interest within the World Bank, the demise of Doing Business reaffirms Goodhart’s Law that when an index becomes a policy target, it ceases to be a good measure.

Thomas Gehrig, 21 May 2021

ESG – Environmental, Social and Governance – measures of bank performance are getting a lot of attention from shareholders and policymakers. But might more investment in ESG make banks less resilient? Thomas Gehrig tells Tim Phillips what the first research on this topic reveals.

Read More here: CEPR Discussion Paper, DP15816 Social Responsibility and Bank Resiliency by Thomas Gehrig, Maria Chiara Iannino, Stephan Unger

Massimo Morelli, Matia Vannoni, 29 March 2021

The link between regulation and the economy has been central in political economy since the 1970s. Using data on US states from 1965 to 2012, this column argues that regulation may be good or bad for the economy depending on its type and the information and incentives of the regulators. More regulation leads to higher economic growth when that regulation is more detailed, when the current level of regulation is lower, when uncertainty is higher, and in contexts with greater competition and/or opportunity of experimentation among regulation proposers and greater accountability. 

Yohan Iddawela, Neil Lee, Andrés Rodríguez-Pose, 21 February 2021

Differences in the quality of local and regional governments and their implications for development have attracted considerable attention, especially in Europe and Asia. In Africa, the recent drive towards decentralisation has, however, neglected how variations in the quality of sub-national governments affect development prospects. This column addresses this gap in knowledge by measuring variations in subnational government quality in 22 African countries, and connecting these variations to differences in levels of development across the continent. The quality of sub-national governments is an important driver of economic development in African regions.

Guido de Blasio, Alessio D'Ignazio, Marco Letta, 27 November 2020

The use of artificial intelligence in preventing crime is gaining increasing interest in research and policymaking circles. This column discusses how machine learning can be leveraged to predict local corruption in Italy. It highlights how such algorithmic predictions could be employed in the service of anti-corruption efforts, while preserving transparency and accountability of the decisions taken by the policymaker.

Other Recent Articles:

Events

CEPR Policy Research