Until the late 19th century, states raised most of their government revenues from import tariffs. This column asks whether the practice could work today. A side effect of taxes is that they discourage the economic activity that they are assessed on. Tariffs are taxes on imports and no different: they shrink trade. The authors allow […]
Who has more authority in the eyes of the public – male or female economists? This column uses an information experiment to show that the opinions of visibly senior female economists (professors in top economics departments) carry more weight. A plausible explanation is that credentials (signals of success) may reduce or reverse stereotyped discrimination: women […]
In higher-income countries, urban proximity has been shown to enhance workers’ skills and income, but less is known about low- and middle-income countries. This column examines how the income of initially poor workers in Brazil changes after urban migration. Wages go up immediately for migrants to both southern and northern Brazilian cities, but only in […]
Low-income households in US cities tend to be segregated in low-opportunity neighbourhoods with worse access to good schools and desirable urban amenities. Public transportation is often expected to bridge inequalities, but sparsely distributed public transit networks may end up concentrating poverty further if high- and low-income households sort differently between driving-accessible and transit-accessible residential neighbourhoods. […]
The IFA World Franchise Show, hosted by the International Franchise Association, is the ultimate global gathering for anyone looking to launch, grow, or invest in a franchise business. Taking place from 9–10 May 2025 at the Miami Beach Convention Center, this landmark event brings together the world’s top franchise brands, industry experts, and aspiring business owners […]
Tariff escalation between China and the US will result in decoupling of goods trade, raising fears that Chinese exports destined to the US market in 2024 will be redirected or deflected to third markets. Fearful of intensified competition from Chinese products, some business associations and officials are calling for pre-emptive measures by importing governments. This […]
Extractive taxation is considered one of the main causes of the French Revolution. This column exploits regional variations in the French salt tax, which accounted for 22% of royal revenues in 1780, to document that areas of France burdened by a higher tax rate experienced more revolts in the years leading up to the Revolution. […]
In the past decade, China has become the largest creditor to developing countries, surpassing the IMF, World Bank, and Paris Club countries. This column discusses how China’s overseas lending interacts with US monetary policy – another key driver of the global financial cycle. It finds that Chinese and US policies jointly influence the level and […]
With the prospect of far-reaching decoupling of goods trade between China and the US, fears of deflection of Chinese exports to third markets have returned. This column examines the factual record on the frequency of, and foreign government response to, Chinese trade deflection during the first US-China trade war. The authors find that trade deflection […]
During the Greek debt crisis, zombie firms and non-performing business loans peaked at 20% and 50%, respectively. This column examines the negative effects of ‘zombie’ firms on investment, employment, and productivity during the crisis. The findings suggest that zombie firms have a negative impact on the economy through multiple channels, but highlight heterogeneities across sectors. […]
