Demographic ageing is putting considerable pressure on the economic and social systems of industrialised countries. This column highlights that although the US is in a more favourable position than other OECD countries with respect to the expected future change in old-age dependency ratios, it is also characterised by large differences in labour market outcomes across […]
Raising the legal age for purchasing tobacco products to 21 has emerged as a preferred strategy to reduce the rates of youth smoking and vaping in the US. This column uses both self-reported and biomarker measures to assess the impact of implementing such policies. The authors find that self-reported smoking rates decline markedly upon introduction […]
Households differ considerably in terms of the inflation they experience at any point in time. This column examines the nature and sources of inflation differences for purchases of supermarket goods across a large panel of French and German households. The main reasons for the differences are that prices (and thus price changes) differ from place […]
Whether post-pandemic inflation can be explained by demand-side versus supply-side factors is critical for setting monetary policy. Nevertheless, there is widespread disagreement about the underlying sources of recent inflation. This column argues that part of the disagreement is due to differences in (i) the variables being studied (inflation or interest rates), (ii) the countries analysed, […]
Human-induced climate change is making disasters more frequent and more intense. Policy could help reduce the economic costs of climate change by helping firms withstand extreme weather events. This column explores how management practices shape the impact of environmental shocks on firms. Well-managed firms are doing more to adapt to climate change and are more […]
Business environments dominated by information flows and autonomous tasks, typical of knowledge-intensive industries, are likely to require enough social capital to be viable and productive. This column uses a new database to investigate the influence of trust, a key element of social capital, on labour productivity in intangible-intensive industries. In such industries, productivity gains from […]
Expansion in access to public infrastructure has been found to improve a host of development outcomes. This column uses variation in the access to paved roads through a large-scale rural road construction programme in India to study how road access impacts fertility decisions and investments in child health. It finds that increased access to paved […]
Women in Latin America have higher educational attainment than men, and gender inequality in maths and reading scores has fallen over time. Yet, gender gaps in labour force participation persist. This column examines gender inequality in Latin America, and finds that employed women are over-represented in smaller firms and the informal sector. Women still spend […]
Firm inflation expectations are a key driver of future price growth. This column uses a large economy-wide business survey to understand the response of firms to monthly CPI inflation releases in the UK. Firms’ CPI inflation perceptions respond very quickly, in a matter of hours after the CPI release. Expected own-price growth also responds strongly […]
The need to mitigate climate change has never been more urgent. Governments play a critical role in the green transition, through green public investment, subsidies, and implementing carbon pricing policies. This column uses a macro-climate model to examine the interplay between mitigation policies and fiscal sustainability considerations. It highlights a key trade-off between limiting transition […]
