Institutions and economics

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.

Pierre Cahuc, Stéphane Carcillo, Bérengère Patault, Flavien Moreau, 08 November 2020

Businesses often worry about unpredictable outcomes and an alleged pro-worker bias among judges when they go to labour courts. This column uses information from around 145,000 decisions made by French appeals courts over the period 2006-2016 to examine the impact of labour court judge bias on the economic performance of firms. The findings suggest that some judges are more pro-worker than others, and that this bias matters for small, low-performing firms, but not for other firms.

Sebastian Galiani, Ugo Panizza, 28 September 2020

Academic economists need to be published, but is the journal system fair and efficient? Sebastian Galiani and Ugo Panizza tell Tim Phillips about a new free VoxEU ebook that tackles racism in publishing, whether you should be judged by your citations, and the tyranny of the top five. 

Download the eBook free from VoxEU here

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