Haichao Fan, Yu Liu, Nancy Qian, Jaya Wen, 29 July 2018

Enforcement of VAT requires accurate records of firm transactions that can be traced to both parties. This column describes how the Chinese government’s digitisation of the country’s VAT process increased enforcement, which in turn increased overall tax revenues in the short run. However, the increased enforcement caused firms to contract in the medium run, reducing the long-run gains in tax revenues.

Jacques Bughin, Hans‐Helmut Kotz, Jan Mischke, 22 March 2018

One stark feature of the global economy in the 21st century is the ongoing slowdown of productivity growth. This column explores the key factors behind this trend for several countries around the world. Weak demand is found to be a critical driver of the slowdown by holding back investment and changing the structure of consumption baskets, and through economies of scale effects. Although digitisation offers a potential way back, its benefits will require a strengthening of aggregate demand.

Bruno S. Frey, 02 October 2017

One of the major effects of digitisation has been to drastically lower costs of measurement in a wide range of activities and areas. This column argues that this has prompted many to react against the domination of measurement and the loss of intrinsic preferences, often by escaping into areas not yet captured by measurement which will likely be preserved.

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