Politics and economics

Barbara Petrongolo, Ghazala Azmat, Roberto Galbiati, Tommaso Monacelli, Moritz Schularick, 10 May 2021

Recent campaigns such as Black Lives Matter and #MeToo highlight the urgent need for a deeper understanding of persistent economic differences across different social groups. In an increasingly diverse society, insight into what underpins gaps along lines of race, ethnicity and gender, and the role of perceptions in driving conduct, is imperative. Similarly, the assessment of policies designed to tackle these issues is essential. With the aim of informing this discussion, the Managing Editors of Economic Policy are opening a call for papers for a special issue on “Stereotypes, Attitudes and Discrimination” to bring together the best ideas to inform the debate and provide high-impact policy advice.

Gianmarco Daniele, Tommaso Giommoni, 10 May 2021

Austerity measures have been widely adopted around the world with mixed results in terms of public debt reduction and adverse political effects. This column examines the effect of fiscal austerity policies on corruption in Italian municipalities. The budget rules have led to a decrease in both recorded corruption rates and corruption charges per euro spent, without a clear effect on local public service provision. The drop in corruption emerges mostly in pre-electoral years for mayors eligible for reelection. Budget constraints might induce local governments to curb expenditures while dampening exposure to corruption.

Petros C. Mavroidis, André Sapir, 28 April 2021

China’s ascension to the WTO followed years of negotiations with the incumbent members and was hailed at the time as a victory for the liberal paradigm – part of the ‘end of history’. But today frictions remain. This first in a series of three columns presents the build-up to China joining the multilateral trade agreement, arguing that expectations for its subsequent behaviour were misguided from the off.

Shamena Anwar, Patrick Bayer, Randi Hjalmarsson, 23 April 2021

In the justice system, the jury is meant to be representative of the community. Yet, juries across the US are often highly unrepresentative, especially for racial minority populations. Using data from Harris County, Texas, this column examines how unequal representation impacts verdicts and sentences. Many zip codes with the highest proportion of white residents are overrepresented on juries. If the jury pool were more reflective of the county, the average sentence would fall by almost 15 years for Black defendants and the likelihood of a life sentence by more than 50%. Policy responses could include expanding the jury source list and oversampling residents from underrepresented neighbourhoods in calls for jury duty.

Jonathan Muringani, Rune Fitjar, Andrés Rodríguez-Pose, 20 April 2021

Social capital matters for economic growth and development, but different types of social capital matter in very different ways. This column examines how differences in social capital across Europe shape regional economic growth. While ‘bridging’ social capital is linked to higher regional economic growth, ‘bonding’ social capital leads to lower growth. This is particularly the case in less-developed regions and in regions with a lower endowment of human capital. As the level of education increases, the need for bridging social capital declines, implying that bridging social capital and human capital are, to a certain extent, substitutes.

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