Politics and economics

Thiemo Fetzer, Carlo Schwarz, 23 April 2019

Tariff retaliation is widely believed to be politically motivated. This column presents evidence that retaliation against the Trump administration's tariff hikes seems to be systematically targeted against the Republican voter base. China appears to have been able to achieve a high degree of political targeting but likely harmed its own economy by targeting agricultural goods for which the US is a major supplier. The EU, on the other hand, appears to be more successful in navigating the trade-off. It also finds some evidence suggesting that Republican candidates fared worse in the mid-term elections in the US counties most exposed to retaliation.

Karl Aiginger, 20 April 2019

Populism represents a challenge to liberal democracy, pluralism, human rights, and the exchange of ideas. This column examines the features and drivers of populism, as well as the potential strategic response by the EU and its member states. This includes a vision for Europe to become the role model for high-income societies providing well-being, lower unemployment, and less inequality, and a leader in decarbonisation and public sector management.

Guo Xu, Marianne Bertrand, Robin Burgess, 14 April 2019

How the personnel of the state perform is likely to have important implications for its effectiveness and economic performance. This column combines administrative records with survey data on the performance of Indian Administrative Service officers to examine how social proximity affects bureaucrat performance. The results suggest that officers allocated to their home state perform worse than comparable officers who are allocated to non-home states.

Thilo Huning, Nikolaus Wolf, 12 April 2019

State borders can change due to both political and economic disputes. This column shows how the formation of the German state can be traced back to British political intervention at the end of the Napoleonic War. In preventing Russia from gaining territory westwards, Britain set in motion a series of events that gave Prussia strategic trade advantages. This led to the formation of Europe's first customs union (the Zollverein) and prepared the political unification of Germany.

Mathieu Couttenier, Sophie Hatte, Mathias Thoenig, Stephanos Vlachos, 02 April 2019

Populists often claim that immigration is a threat to the interests of the majority. This column quantifies the extent to which the media coverage of immigrant crime fuelled populist political support in a Swiss referendum. It finds that disproportionate coverage of immigrant crime increased an anti-minaret vote by 5%.

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