26.04.2016: Fabrizio Zilibotti on income inequality and growth
The relationship between inequality and economic growth is complex. Yet, an evergrowing income inequality risks harming future growth by creating support for bad policies. A column by Fabrizio Zilibotti in the current issue of the Swiss newspaper Finanz und Wirtschaft.
26.04.2016: New York Times features David Dorn's research on trade and political polarization
The New York Times features David Dorn's research on trade and political polarization on its front page. The new research shows that the U.S. regions which were hardest hit by Chinese import competition became much more likely to elect politicians from the far right or far left, thus contributing to the strong ideological polarization of U.S. Congress. While trade-exposed regions with white population majority move to right, non-white voters move to the left, thus eroding support for moderate candidates in both the Republican and Democratic parties.
18.03.2016: Evidence from the auto industry about technical change and climate change
Can directed technical change be used to combat climate change? David Hémous (University of Zurich) together with his colleagues Philippe Aghion (Harvard University), Antoine Dechezleprêtre (LSE), Ralf Martin (LSE), and John Van Reenen (LSE) answer this question in their recently published article in the Journal of Political Economy. They show that firms tend to innovate more in clean (and less in dirty) technologies when they face higher tax-inclusive fuel prices.
15.03.2016: Brain connectivity reveals hidden motives
Often, it is hard to understand why people behave the way they do, because their true motives remain hidden. A team around Grit Hein and Ernst Fehr have now shown how peoples’ motives are characterized by a specific interplay between different brain regions and how this interplay allows precise classification of the motives underlying a shown behavior.
10.02.2016: Ernst Fehr is one of the Highly Cited Researchers 2015
26.01.2016: How free trade with China harmed the lives of U.S. workers
A new study by labor economists David Autor, David Dorn, and Gordon Hanson shows that increased trade with China caused severe and permanent harm to many American workers. Exposed workers experience greater job churning and reduced lifetime income.