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Development Economy Featured

The impact of wealth inequality on economic growth: Evidence from Italy during its structural transformation

Economic equality and growth are important policy objectives, but the relationship between the two aims is complex. This column examines how the distribution of land ownership shaped Italy’s structural transformation after WWII. A relatively egalitarian agrarian economy corresponded with higher levels of economic growth, fostering a successful entrepreneurial model with flexible networks of small and […]

Environment Featured

No solid scientific basis for degrowth

In the last decade, many publications have appeared on degrowth as a strategy to confront environmental and social problems. This column reviews their content, data, and methods. The authors conclude that a large majority of the studies are opinions rather than analysis, few studies use quantitative or qualitative data, and even fewer use formal modelling; […]

Banking Featured Finance

Much money, little capital, and few reforms: The 2023 banking turmoil

The events of March 2023 in the US and Switzerland showed, once again, that banking systems remain fragile. The latest Geneva Report on the World Economy assesses whether reforms to date suffice to deal with a changing environment and ongoing structural changes, and what additional reforms may be necessary. While the specific causes of bank […]

Healthcare Economy Featured

Demographic change: Individual blessing, but headwinds for European growth

Developed countries are ageing fast. Although longer and healthier lives imply huge welfare gains for individuals, the effects on economic growth have been elusive. This column uses a structural model to estimate the contributions of demographic change to the historical and projected future economic growth in the four largest European economies. The model projects that […]

Finance Business Featured

The economics of organisational strategy

Many of today’s global problems, such as sustainability, technology, skills, and diversity can only be solved by organisations. This column argues that more work is needed to understand strategic management by firms, how firms behave, and how they respond to economic incentives. Future research should study strategic decisions by firms as well as their internal […]

Economy Development Featured

Religion matters for economic growth through various channels

Though social scientists have long questioned how religion affects economic growth, a lack of accessible data hindered their efforts. Recently, advances in computing, novel econometric techniques, and the availability of new data have enabled researchers to test how religion has influenced growth in rich and poor countries, both historically and in the present. This column […]

Healthcare Economy Featured

Online versus in-person services: Effects on patients and providers

Switching the delivery of one-to-one services from in-person to online offers potential cost savings and increased convenience, but what are the impacts on providers and consumers? This column studies the effects of online delivery of primary care doctor consultations in Sweden. The authors find that online consultations are delivered sooner, are shorter, and yield similar […]

tax Featured Finance

Exchange rate models are better than you think, and why they didn’t work in the old days

It is generally believed that standard macroeconomic models of foreign exchange rates do not fit the data well. However, this column argues that a model that includes real interest rates, expected inflation, the US trade balance, and measures of global risk and liquidity demand fits the data for the US dollar against other G10 currencies […]

Finance Business Featured

The urban wage premium for women: Evidence across the wage distribution

The urban wage premium – the positive wage differential between more and less dense geographic areas – is rarely estimated separately for men and women. This column shows that, in Brazil, agglomeration economies benefit men and women differently in dense areas: the urban wage premiums for men and women change across the wage distribution and […]