Politics and economics

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%.

Jeffrey Frankel, 29 March 2019

The supposed deadline for a conclusion to China–US trade negotiations has been postponed until late April. This column argues that the structural reform aspect of the negotiations is reminiscent of US negotiations with Japan three decades ago, and that the Structural Impediments Initiative between the two countries could, in theory, serve as a useful model for the current US–China negotiations. The question is whether Presidents Trump and Xi have as firm a grasp on economic principles as their predecessors. 

Peter A.G. van Bergeijk, 18 March 2019

Many associate Brexit and the Trumpian trade wars with the start of a new phase of deglobalisation. This column argues that we should view them as symptoms rather than causes, as the world had already started to fundamentally change before either came on the horizon. Neither the delay to Brexit nor the extended pause in the US–China tariff war means that the risks of deglobalisation have diminished.

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