Benjamin Born, Gernot Müller, Moritz Schularick, Petr Sedláček, 18 July 2018

Growth and employment in the US have been robust over the past 18 months, and President Trump frequently takes personal credit for these trends. This column explores how the US economy would have evolved without Trump. An analysis shows no difference between the post-election performance of the US economy under Trump and a synthetic ‘doppelganger’ US economy without Trump, suggesting that there has been no ‘Trump effect’.  

Simon Wren-Lewis, 15 July 2018

Gabriel Felbermayr, Jens Südekum, 28 June 2018

Jeffrey Frankel, 26 June 2018

Chad Bown, Euijin Jung, Zhiyao (Lucy) Lu, 19 June 2018

Pascal Lamy, 06 June 2018

Yuriy Gorodnichenko, Tho Pham, Oleksandr Talavera, 02 June 2018

The rise of social media has profoundly affected how people acquire and process information. Using Twitter data on the Brexit referendum and the 2016 US presidential election, this column studies how social media bots shape public opinion and voting outcomes. Bots have a tangible effect on the tweeting activity of humans, but the degree of their influence depends on whether they provide information consistent with humans’ priors. The findings suggest that effect of bots was likely marginal, but possibly large enough to affect voting outcomes in the two elections.

Stefan Gerlach, 04 April 2018

It was generally expected that the new US administration’s economic policies would lead to an appreciation of the US dollar. Yet the opposite has happened. This column argues that a large part of the fluctuations of the US dollar against the euro since the election of President Trump can be tied to movements in the relative attractiveness of holding US dollars versus the euro.

Chad Bown, 08 March 2018

President Trump’s announced intention to impose import tariffs of 25% on steel and 10% on aluminium touched off a wave of retaliation threats and trade policy responses from trading partners, including the EU. This column examines the scope for retaliation against the Trump administration’s proposed tariffs under WTO dispute settlement. It estimates that if the sources of all US steel and aluminium imports were part of this dispute, trading partners would be permitted to retaliate by a collective amount of $14.2 billion per year.

Simon Evenett, Johannes Fritz, 24 January 2018

On 22 January 2018, President Trump imposed safeguard duties on imported washing machines and solar panels and cells. This column analyses import surges into the US from 2006 to 2016 to put these tariff increases in perspective. Using a simple, theory-inspired method for identifying surges, it finds that during 2014-6 a category of manufactured good in the US had a one-in-32 chance of witnessing an import surge each year. US import surges aren’t concentrated in sectors where China has severe excess capacity either.

Sijbren Cnossen, Arjan Lejour, Maarten van ’t Riet, 24 November 2017

Some US multinationals have displayed a willingness to relinquish their American nationality and move their headquarters abroad. Such ‘inversions’ generally aim to avoid and minimise taxes. This column argues that the new Trump tax plan is likely to halt tax inversions by US multinationals. However, the plan will increase treaty shopping, incentivising multinationals to redirect dividends through third-party countries with generous tax treaties.

Mario Blejer, Piroska Nagy-Mohacsi, 22 November 2017

Global politics of late has been marked by the rise of anti-elite political movements and anti-establishment leaders. This column analyses the tactics of such populists through the lens of the ‘time inconsistency’ problem – that what is considered a long-term optimal policy today may not be optimal when that future arrives. Populist leaders seek to gain and increase their power by undermining democratic institutions and conventional commitment devices. Several ‘second generation’ institutional commitment devices to counter this are proposed.

Gabriel Felbermayr, Marina Steininger, Erdal Yalcin, 22 November 2017

The Trump administration intends to restructure US international trade relations with its major trade partners to correct what it perceives to be unfair trade and establish a ‘level playing field’. This column uses a structurally estimated and simulated trade model to analyse three potential protectionist policies that have been discussed by the administration. The results suggest that the promise to create more jobs and investment in the US through such policies is a fallacy.

Mario Monti, 14 November 2017

The Anglo-Saxons have been admired for their sense of rationality. However Mario Monti talks about recent political events that completely changed the situation. This video was recorded at the "10 years after the crisis" conference held in London, on 22 September 2017.

Barry Eichengreen, Michael Haines, Matthew Jaremski, David Leblang, 25 October 2017

The 1896 US presidential election has acquired new resonance in light of the recent up-surge in populism. This column combines voting results with economic, financial, and demographic data from the 1890s to offer a systematic empirical study of voting patterns in the election. The results confirm a role for identity politics, but also a role for economic factors. They also suggest, however, that a small or even moderate change in economic conditions would not have altered the outcome of the 1896 election, nor the subsequent course of American history.  

Gordon Hanson, Chen Liu, Craig McIntosh, 04 October 2017

Rising inequality and stagnating manufacturing wages have many in the Western world questioning whether immigration may be responsible. This column takes a close look at data for the US, and reveals that tighter immigration controls are unlikely to improve the fortunes of low-skilled workers. Long-term demographic changes in the Americas imply that the pressure from illegal immigrants on US labour markets is already abating and will continue to do so.

Levi Boxell, 01 October 2017

The internet has received a substantial amount of blame for the recent increase in political polarisation. Using US data, this column argues that, in fact, the internet has played no significant role in a generally increasing trend of political polarisation that goes back at least to the 1970s. The results highlight the importance of looking beyond convenient narrative explanations, and the need for a deeper understanding of the drivers of political sentiment.

William Nordhaus, 23 August 2017

The change in the structure of global supply has important implications for US President Donald Trump as he contemplates tearing up existing international trade deals. This column argues that he risks destroying the fruits of almost 100 years of global trade cooperation, the benefits of which to citizens in the US far outweigh the costs. This spirit of cooperation is also the basis for coordinated global action on issues such as climate change.

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