Many economic models are constructed on the basis of an equity-efficiency trade-off, assuming that equality comes at the cost of efficiency. This column argues that inequality is better understood as an economic externality. It matters not only because people care about inequality itself, but because they prefer to live in societies that function smoothly, and […]
Many developing countries are currently facing debt distress, and sovereign debt restructurings often occur with delays. Emerging market debt composition has shifted away from Paris Club creditors and toward private lenders. This column argues that the asymmetry in coordination between private creditors and emerging market debtors has equity and efficiency implications. Private creditors are often […]
Artifical intelligence and automation have implications for tax policy. This column discusses how the economic impact of new technologies is relevant to the taxation of labour and capital. The policy recommendations that emerge depend on several factors: the impact of AI on economic efficiency, the share of capital income in national income, the distribution of […]
The persistent under-representation of women in economics remains a pressing policy concern for researchers and institutions. This column studies the evolution of gender gaps in representation and research output among cohorts of scholars over the past nine decades. The findings reveal remarkable improvements in female representation across cohorts but a stable negative publication gap over […]
Over the last several decades, many countries have devolved power to local governments. This column exploits the government decentralisation in Indonesia that took place after the sudden fall of President Suharto in 1998 and uses establishment-level data to examine the implications of decentralisation for the private sector. While decentralisation can potentially bring many benefits, the […]
Tesla shareholders have indeed shown their support for Elon Musk’s proposed $56 billion pay package and the relocation of the company’s legal home to Texas. Musk himself expressed gratitude for this backing on his social media platform X. The approval of this record-breaking compensation plan could help allay concerns about Musk’s future role at Tesla, […]
Achieving global net zero emissions requires rapid deployment of low-carbon technologies. Using online job postings from 35 countries, this column measures the diffusion of low-carbon technology-related skills from 2014 to 2022 and investigates the role of the 2022 global energy crisis in driving labour demand. The data show a significant rise in job postings in […]
A recent report from the International Panel on Climate Change reveals a consistent rise in extreme heat days, affecting agriculture and beyond. Economic repercussions include reduced labour productivity and increased operational costs. Recent studies also emphasise climate’s financial sector impact, especially in low- and middle-income economies. This column delves into Mexican financial vulnerabilities, revealing the […]
A slowdown in technological progress has been cited as the driving force behind the stagnating productivity growth witnessed in advanced economies. This column examines data on the sources of economic growth in the US and Japan and shows that productivity in ICT-producing sectors is of disproportionate importance to aggregate productivity growth, and also that innovations […]
Current smartphone calls are monophonic which compresses audio elements together and sound flatter and less detailed, but the new technology will bring 3D audio where a caller will hear everything as if they were there with the other person Nokia CEO Pekka Lundmark made a phone call using a new technology called “immersive audio and […]
