Human behavior is shaped by a complex interplay of environmental factors and intrinsic personality traits, yet many questions remain unanswered. How do factors like family, culture, and socio-economic status shape our preferences and personality? And how do our cognitive limitations in the form of imperfect perception, attention and memory impact decision-making? These challenges lie at the heart of Ernst Fehr’s research. By addressing these questions, he aims to uncover deeper insights into the forces that guide human behavior and decisionmaking, with the potential to influence both theory and real-world practices.

For two and a half years, economist Ralph Ossa served as Chief Economist of the World Trade Organization (WTO) in Geneva. Since early July, he has returned to the University of Zurich. In this interview, he reflects on his final months at the WTO, the US-led trade war, and its effects on global trade.

Maya Eden delves into the deep, unresolved questions within normative economics. She explores the ethical considerations surrounding population, individual rights, and societal obligations, aiming to bring clarity to these complex issues through a blend of economic theory and ethical philosophy.

Ralph Ossa, who served as Chief Economist of the World Trade Organization (WTO) from January 2023 to June 2025, will take up the UBS Foundation Professorship of Economics at the Department of Economics of the University of Zurich (UZH) as of July 1, 2025. After two and a half years in Geneva, the internationally recognized economist is returning to academia.

In Switzerland, the richest 1% own almost half of the country's wealth – partly due to cantonal differences in wealth taxation. This is shown in a new study by UBS Foundation Professor Florian Scheuer.

David Dorn explores how globalization and automation have shaped labor markets, revealing the lasting impact of trade shocks, especially in regions exposed to Chinese imports. His research highlights the connection between economic shifts and broader societal issues, such as political polarization and social inequalities.

Lorenzo Casaburi delves into critical challenges in development economics, particularly in sub-Saharan Africa. His research sheds light on agricultural markets, behavioral insights, and the role of finance in economic growth. Focusing on the transformation of rural economies, Casaburi addresses the complexities of fostering modernization while ensuring inclusive development. Through innovative approaches, he aims to drive systemic change that promotes sustainability and reduces inequality.

How can behavioral economics solve real-world challenges in decision-making, from health and wealth to societal policies? With the rise of Behavioral Economics 3.0, UBS Foundation Professor Sandro Ambühl addresses complex questions on how to improve choices, evaluate policies, and engage individuals on critical issues like retirement savings. Through a blend of theory and empirical research, his work aims to shape better, evidence-based decisions.

In this episode of VoxDevTalks, host Tim Phillips sits down with David Yanagizawa-Drott, Professor at the University of Zurich and founder of the Social Catalyst Lab, to explore the role of economists in shaping and evaluating artificial intelligence (AI), and whether AI will narrow—or deepen—the divide between the Global North and South.

In his recent presentation at NZZ Live, UBS Foundation Professor Sandro Ambühl shows how common wisdom can lead us astray when making financial decisions. Using three key mistakes, he explains how we can make better financial decisions based on scientific evidence and with long-term benefits.

A new working paper by UBS Foundation Professor David Dorn and co-authors finds that self-reported skills on LinkedIn reveal more about earnings and gender gaps than traditional measures of human capital like education or work experience.

Why do some people remain unemployed for months or even years, while others quickly find new work? Can we predict who is at risk of long-term unemployment, and should we intervene earlier, smarter, and more precisely? These questions are not only of academic interest, but of central importance to societies. Understanding the root causes of long-term unemployment and designing effective labor market policies is essential – not just for economic efficiency, but for social cohesion and individual dignity.

As the U.S. ramps up tariffs on Chinese goods once again, the debate over trade policy has taken center stage — and one name keeps surfacing across leading publications: UBS Foundation Professor David Dorn.

Should groceries remain affordable even if it means underpaying the people who stock the shelves? Should access to global markets justify job losses in struggling regions? And how much should a society be willing to give up, economically, to ensure a fairer distribution of income? These kinds of questions lie at the heart of major policy decisions. Again and again, societies are forced to weigh economic efficiency against fairness. But what makes one outcome better than another – and who gets to decide? These are the kinds of questions that drive the research of Maya Eden.

Kurz nach der Ankündigung neuer US-Zölle fand am Wirtschaftspodium Schweiz eine Grundsatzdebatte über die wirtschaftliche Resilienz der Schweiz statt. Bundesrat Albert Rösti lieferte eine pointierte Standortbestimmung. Staatssekretärin Helene Budliger Artieda gewährte Einblicke hinter die Kulissen der Zollverhandlungen.

Joachim Voth studied the factors that contribute most to a fulfilled life and his research shows that there is nothing better for a contented life than work. He believes that society's demonization of work and glorification of leisure is absurd.

People are too quick to attribute intelligence to AI, says Sendhil Mullainathan in an interview with Schweizer Monat on the sidelines of the UBS Center Forum. At the same time, we are only using a tiny part of its potential.

Labor market policies shape firms’ innovation dynamics. A new study by UBS Foundation Professor David Hémous and co-authors shows for the first time that higher minimum wages for low-skill jobs drive firms to develop automation technologies. Rising wages for high-skill labor, in contrast, can hamper this effect.

What are the effects of wealth taxes? A study shows that the effects on the distribution of wealth in the cantons are concentrated at the upper end of the scale. UBS Foundation Professor Florian Scheuer and his co-authors report in a guest commentary.

The economist Daron Acemoglu sees a dangerous loss of trust in Western democracies. He believes that social networks are strengthening extremism.

Artificial intelligence has lately been reshaping nearly every sector of the economy, raising profound questions about the future of work, wealth, and power. Will these advancements enhance the intelligence and performance of human beings, or will they deepen inequality and keep on establishing power among a privileged few? In his lecture at UZH, Nobel laureate Daron Acemoğlu highlights the necessity of implementing suitable AI regulations to benefit society.

As protectionism is gaining ground, global trade is facing a crisis. According to the Chief Economist of the World Trade Organization (WTO), Ralph Ossa, less trade does not make countries safer but weaker.

Which topics have shaped your thinking over the past 12 months? At the UBS Center, we have delved into some of the most critical societal questions of our time: from the challenges facing Europe and Switzerland to the opportunities and risks of AI, all the way to the origins of prosperity. Our annual review brings together key insights and highlights for you.

We are delighted to welcome Roberto Weber as UBS Foundation Professor for the Economics of Corporate Culture, Business Ethics, and Social Responsibility at the University of Zurich. He also serves as the Director of the Zurich Graduate School of Economics. Prof. Weber’s research explores pressing societal and economic issues, with a focus on decision-making, social responsibility, and trust. His work provides valuable insights into how social norms and institutional frameworks influence ethical behavior, both in organizations and markets.

Maya Eden joined the Department of Economics at the University of Zurich as Professor of Economics in June 2024 and is an Affiliated Professor at the UBS Center. Her research spans a broad spectrum of issues in macroeconomics, normative and welfare economics. In this interview, she explains why ethical considerations need to be taken in account to design policy and talks about her motivation for conducting research in this area.

Few economists have studied the consequences of globalization as extensively as David Dorn. The expert on the US economy explains what will help the country in the current situation - and what will not.

The world is a better place thanks to the many people who work to make it so, states UBS Foundation Professor Dina Pomeranz in a NZZ guest commentary.

For many companies, corporate culture is a cornerstone of their business that influences the performance and, not least, determines the value of the company. But why is it (still) so important and, above all, how great is the risk of it becoming an end in itself? Get answers from the interview with Prof. Luigi Guiso from the Einaudi Institute for Economics and Finance who was the keynote speaker at our Opinion event in Lugano.

Meet Ingrid Löfman and Philipp Sternal, the newest recipients of the UBS Center Scholarship and PhD students at the Zurich Graduate School of Economics. In this double interview, they share their motivations for pursuing a PhD, the economic mysteries they’re eager to solve, and what makes studying in Zurich special. Their unique journeys offer valuable insights not just for fellow economists but for anyone intrigued by the intricacies of human behavior and global economic challenges.

Das UBS Center for Economics in Society (UBS Center) an der Universität Zürich gibt einen Führungswechsel bekannt: Kaspar Villiger tritt Ende dieses Jahres als Präsident des Stiftungsrats zurück. Christian Mumenthaler, ehemaliger Group CEO von Swiss Re, wird seine Nachfolge antreten und übernimmt das Amt per 1. Januar 2025. Mit seiner Vision und Expertise wird er das UBS Center dabei unterstützen, seine Rolle als Brücke zwischen Wissenschaft und Gesellschaft weiter auszubauen.

The UBS Center for Economics in Society (UBS Center) at the University of Zurich announces a leadership change as Kaspar Villiger steps down as Chairman of the Foundation Council at the end of this year. Christian Mumenthaler, former Group CEO of Swiss Re, will assume the role as his successor effective 1 January 2025, bringing his vision and expertise to guide the UBS Center’s continued effort in building bridges between academia and the broader society.

On November 14, the UBS Center and Università della Svizzera italiana gathered a significant audience in a joint event to explore the critical role corporate culture plays in both the triumphs and failures of businesses today. In his keynote lecture, Prof. Luigi Guiso delved into the evolving understanding of corporate culture in economic research and business. The panelists concluded that corporate culture is a living, dynamic construct shaped by leadership, values, and societal influences.

Applications of artificial intelligence are everywhere. In the UZH 'Talk im Turm', Prof. Abraham Bernstein and UBS Foundation Professor David Dorn discussed how they could change the world of work.

This year's Nobel Prize winners in economics show the influence of institutions on a country's prosperity. The three prizewinners have close ties to the University of Zurich, as UBS Foundation Professors David Hémous and Florian Scheuer outline in their article for 'Die Volkswirtschaft', an economic policy magazine by the Swiss State Secretariat for Economic Affairs (SECO).

On October 31, the UBS Center Forum for Economic Dialogue gathered a significant audience to hear insights from leading experts on the role of AI in our society. Despite intense discussions about the risks and misuse of AI, the overall assessment of the new technology was positive. With the right foundations in place, AI holds immense potential to drive innovation, increase prosperity, and reduce inequality.

Over the years, digitalization has led to the axing of many lower-skilled jobs, thereby polarizing the employment market. But AI could enhance some of the simpler jobs and reduce inequality.

Prof. Dina Pomeranz, assistant professor of applied economics, has a strong passion for global fairness and development. Her research addresses critical issues such as taxation, public policy, and poverty alleviation in developing countries and emphasizes the importance of recognizing global progress. The interview took place at the restaurant Kantorei in Zurich.

Andreas I. Mueller is joining the Department of Economics at the University of Zurich as Professor of Macroeconomics and Labor Markets and will be an Affiliated Professor at the UBS Center. His research spans a broad spectrum of issues in macroeconomics, labor economics, and monetary economics. In this interview, he explains why unemployment represents a massive unused resource and talks about his motivation for conducting research in this area.

Economic historian Joel Mokyr is an optimist. He believes in the power of technological progress to improve the world. But national vanities and irrational fears sparked by new inventions sometimes make him despair.

A new research paper on capital gains taxation by UBS Foundation Professor Florian Scheuer together with Mark Aguiar and Benjamin Moll offers fresh perspectives on how we should think about taxing capital gains and wealth in today's fluctuating financial markets.

Why does inequality trigger such negative feelings? UBS Center Director Ernst Fehr researches the human desire for fairness. He divides people into three categories. The following interview was conducted by Swiss daily NZZ.

Economist David Dorn has conducted research on the consequences of China's rise for America. In this FAZ interview, he talks about subsidies, tariffs, and the erosion of free trade.

In a recent paper UBS Foundation Professor David Hémous and the co-authors of the paper advocate for both carbon taxes and green innovation subsidies to minimize social costs and drive innovation towards clean technologies.

Joel Mokyr’s lecture at the University of Zurich underscored the significance of useful knowledge and the Enlightenment in shaping the economic landscape of Europe, highlighting the unique conditions in Britain that facilitated the Industrial Revolution.

Donald Trump has a good chance of being reelected as US president this year. What would that mean for American democracy? An interview with Harvard political scientist Daniel Ziblatt.

A new research paper delves into intriguing questions surrounding the economic and political consequences of the 2018-2019 trade war between the United States, China, and other US trade partners. UBS Foundation Professor David Dorn and co-authors offer insights into the multifaceted relationship between trade policy, economic outcomes, and political preferences in the United States.

Small loans can help people establish and expand their small businesses. A field study in Ghana has now revealed that men ask for and receive more money from microcredit companies than women. However, if women are better informed, they are more likely to apply for higher amounts.

The Swiss Federal Council and Parliament want to fund aid to Ukraine directly from the development cooperation budget. This would have devastating consequences on the world's poorest countries, explains UBS Foundation Professor Dina Pomeranz in a NZZ guest commentary.

Bundesrat Ignazio Cassis sagte 2018 an der Universität Zürich: «Die Schweiz liegt im Herzen Europas und Europa im Herzen der Schweiz» und «Nichts tun ist kein Plan». Anlässlich des Wirtschaftspodium Schweiz 2024 präsentieren wir seine neuste Einschätzung zur Frage, ob sich die Schweiz in der Europafrage an einem Scheideweg befindet und dazu, welche Richtung der Bundesrat einschlagen wird.

Lorenzo Casaburi is joining the UBS Center as UBS Foundation Associate Professor of Development Economics. Professor Casaburi studies economic development in sub-Saharan Africa, with a focus on agricultural markets. His research combines extensive fieldwork, rigorous identification methods, and insights from behavioral economics, industrial organization, and contract theory. In this interview, he talks about his passion for his work and about the challenges and opportunities of conducting research in sub-Saharan Africa.

With the passing of Daniel Kahneman on March 27, 2024, we bid farewell to a remarkable scholar whose pioneering work has forever altered our understanding of human behavior. We are deeply saddened by his passing so soon after his 90th birthday. Our thoughts and compassion are with his family and his loved ones.

American democracy is in danger of becoming a tyranny of the minority, warns Daniel Ziblatt. He calls for a reform of the electoral system and says what Trump would do differently in a second term in the White House.

Donald Trump stands a good chance of being re-elected President of the US. Swiss economist David Dorn, along with US researchers, has published a series of studies that are causing a stir in the political world of the US. They explain a part of Trump’s success, as well as the causes and consequences of his trade war – and show why a continuation is imminent. Handelszeitung met David Dorn in Zurich for a conversation.

Bundespräsident der Republik Österreich Alexander Van der Bellen bezeichnet die Europäische Union als eine beständige Baustelle, aber trotz ihrer Schwächen als unverzichtbar. In seiner Rede an der Universität Zürich unterstrich er die dringende Notwendigkeit einer stärkeren Einheit, um Krisen wie den Klimanotstand zu bewältigen und betonte die Bedeutung einer mutigeren Vision für die Zukunft Europas.

During Trump's first term in office, the US increased tariffs on many trading partners. From an economic perspective, the measures were not a success. A new study by David Dorn and co-authors shows that the trade policy was nevertheless favorable for the Republican Party.

We are delighted to introduce Marcel Caesmann as our new UBS Center Scholarship holder. Marcel holds a BA in Sociology, Politics and Economics from the Zeppelin University in Friedrichshafen and an MSc in Economic History from the London School of Economics and Political Science (LSE). In 2020, he joined the Department of Economics’ Zurich Graduate School of Economics. Marcel is currently a visiting PhD Researcher at UC Berkeley. His research interests lie in Economic History, Political Economy, and Cultural Economics.

Many people who invest their money make extremely illogical mistakes. UBS Foundation Professor Sandro Ambühl tells you which ones are typical. And how to avoid them.

How did cooperative behavior prevail in human evolution? Researchers from the Universities of Zurich, Lausanne and Constance have challenged two prevailing explanations – repeated interactions on the one hand or group competition on the other. Instead, they conclude, both mechanisms synergistically contribute to fostering cooperation effectively. The new study by Ernst Fehr and other researchers, which was published in the renowned journal Nature, thus contributes to answering one of the great unsolved mysteries of human evolution.

In a major interview, former finance minister Kaspar Villiger explains how our country can be successful in the future. He talks about how he disappointed his parents - and why it's not a bad thing when Federal Councilors have an emotional outburst.

Mistrust between ethnic groups is a major problem for many African countries. Economist David Yanagizawa-Drott accompanies a project in Ghana that seeks to build trust between the different ethnic groups and at the same time improve school teaching.

We invite you to browse through the highlights of the UBS Center’s activities over the past year. After all, the topicality of the issues we have been discussing in recent months has not diminished in the new year. Two speeches stood out for us in terms of their authenticity and scope: we have therefore prepared a special supplement with the speeches of Nobel laureate Herta Müller and political figurehead Wolfgang Schäuble. To our deepest regret, Wolfgang Schäuble passed away only a few weeks after his appearance in Zurich. We are still deeply affected by his sudden passing.

Wir gedenken des kürzlich verstorbenen Wolfgang Schäuble, dessen Tod uns zutiefst betrübt. Unsere Gedanken sind bei seiner Familie und seinen Angehörigen. Sein Vortrag an der Universität Zürich im Oktober letzten Jahres ist uns noch sehr präsent. Der ehemalige Bundesrat Kaspar Villiger hielt die Laudatio vor Dr. Schäubles Festrede – eine Hommage an eine politische Galionsfigur, die Wolfgang Schäuble verkörpert hat.

Yale professor Hélène Landemore discusses migration issues in Europe, the 2024 US election, and how AI could help solve the Middle East conflict.

Right-wing populists are on the rise in both the US and in Europe and are becoming a threat to democracy. Do we need a “rule of the knowers”? This is at least the measure that the American political scientist Jason Brennan calls for. Here are his reasons.

Right-wing populists endanger democracies. Harvard political scientist Daniel Ziblatt provides a guide for preventing autocrats.

In the limelight of the French president’s state visit to Switzerland, political scientist Hélène Landemore sees French democracy in crisis. Without a reform of the constitution, a revolution could soon take place.

Zurich-based Professor David Dorn researches the downsides of globalization – making him one of the most respected Swiss economists. In an interview with NZZ am Sonntag he talks about globalization and immigration to Switzerland.

The CDU politician Wolfgang Schäuble spoke at the University of Zurich about the future of free democracy. In his speech, he painted a cautiously optimistic picture, peppered with anecdotes and quotes from his impressive political career.

Democracies around the globe are facing pressure on its democratic norms and institutions – affecting established and fragile democracies alike. Low voter turnout, a polarized electorate, populists gaining grounds – so many things are chipping away at democracy, making it obvious that it needs care and tending to survive. How this can be achieved is the subject of our event series in the fall.

The renowned professor Steven Pinker is an unshakeable believer in human progress and reason. How does he respond to widespread pessimism?

Wolfgang Schäuble has been involved in politics in Germany for 50 years, and hardly anyone has ever had such extensive experience. In a wide-ranging interview, the 81-year-old looks at the war in the Middle East and Ukraine, the role of Switzerland, and the shift to the right in Europe.

The Corona pandemic and the Ukraine war are the two most recent events that put globalization to the test. In this UZH Magazin interview, political scientist Stefanie Walter and UBS Foundation Professor David Dorn discuss the challenges for global cooperation and its future.

Governments need tax revenue to create wealth and prosperity for their countries, but in low-income countries, raising taxes often hits the poorest people the hardest. UBS Foundation Professor Dina Pomeranz is searching for solutions in Tanzania and the Democratic Republic of the Congo to prevent that from happening.

Poverty, infant mortality, and other ills have decreased enormously over the past 30 years. But for how much longer? Swiss daily Tagesanzeiger asked 16 people from different scientific disciplines to outline big unresolved questions in their field and attempt to answer them. This is UBS Foundation Professor Dina Pomeranz' contribution.

Gender inequality is not only based on the effects of gender norms on behavior and choices, but also, if not even more so, on perceived gender norms. A new survey across 60 countries shows that misperceptions regarding the support of affirmative action for women are widespread.

Florian Scheuer has been director of the UZH Department of Economics since the beginning of 2023. In an interview with Oec. Magazin, he reveals his goals as director of the institute and how he will ensure that the renowned institute remains a pioneer in the future.

Since becoming a member of the German Council of Economic Experts, also known as the "Wirtschaftsweise", Ulrike Malmendier has been a star of the German economists' guild, partly because of her illustrious career in the USA. In an interview with NZZ, the UBS Center Advisory Board member explains why inflation is so high and whether a wage-price spiral is looming. Moreover, she states that the government's 2030 electricity targets are unrealistic.

Artificial intelligence will make certain jobs in service industries redundant, but technological progress will ensure higher per capita economic output, higher wages, and more prosperity in the longer term. Learn more by reading UBS Center Foundation Professor Joachim Voth’s op-ed as published in Finanz und Wirtschaft.

In the USA, the emergence of monopolies has been allowed to continue for far too long, says American lawyer Eric Posner in an interview with NZZ. This has contributed significantly to inequality and political polarization. If the government consistently protected competition, the US economy could grow 1.25 times as quickly as it currently does.

Tension between Athens, Berlin during Greek debt crisis hit German car sales in WWII reprisal areas, a study by UBS Foundation Professor Joachim Voth and co-author finds. Learn more from this report by Greek political and financial newspaper Kathimerini.

Nobel Prize winner and UBS Center Advisory Board member Abhijit Banerjee hated school and became an economist by accident. Today, he is overhauling our ideas of life in poverty with field experiments. Learn more from his conversation with NZZ.

To what extent the wealth derived from slavery contributed to Europe’s economic growth has been a hotly debated question for more than two centuries. Most economists studying the question have looked at national aggregates. This column examines geographically disaggregated data on the impact that slavery wealth had on Britain’s industrial development. The authors find that slaveholding areas were less agricultural, closer to cotton mills, and had more property wealth. Not only did the slave trade affect the geography of economic development after 1750, it also accelerated Britain’s Industrial Revolution.

Pandemie, Klimawandel, Krieg in der Ukraine und Energieknappheit versetzen die Schweiz in den Krisenmodus. Wie fit sind unsere föderalistischen Strukturen für die Krisenbewältigung? Alt Bundesrat Ueli Maurer äussert sich im Interview zu den Stärken und Schwächen des Schweizer Föderalismus und stimmt ein auf das kommende Wirtschaftspodium vom 3. April 2023, wo er als Hauptreferent auftritt.

Google and Facebook sell our personal data and earn billions worth of profits by doing that. Economist Gregory Crawford and philosopher Francis Cheneval think that they ought to share the money with us and that we should have ownership rights over our personal data.

The past shows: A shortage of labor stimulates technical progress. This gives hope for the future. More thoughts are revealed in the article from “Fazit” - the economics blog of the Frankfurter Allgemeine Zeitung.

Income inequality is increasing. According to UBS Foundation Professor David Dorn, this is causing wider demographic groups to turn their back on the established system – most notably in the US, but also elsewhere. UZH Magazin talked to Dorn about redistribution of salaries, temporary protective tariffs and the future of work.

Two research projects by UBS Foundation Professors Dina Pomeranz and Florian Scheuer on the topic of taxation are being funded by the Swiss National Science Foundation with CHF 1.7 million and CHF 1.2 million respectively. Taxes, sound boring? On the contrary, the multifaceted nature of the topic of taxation is reflected in the different focus of the projects.

Today, economics is a universal behavioral science, says Ernst Fehr. In an experiment at schools, the economist shows that young students who can regulate themselves well learn better. This ability can be trained.

Equality of opportunity is a significant feature of a well-functioning democratic society. Increasing economic and social inequalities are therefore perceived as major challenges in public and academic discourse. UBS Foundation Professor David Dorn initiated and has been leading the University Research Priority Program 'Equality of Opportunity' since 2021.

Regulators should deflate the crypto bubble by treating cryptocurrencies like a lottery. That would be a signal to the markets that profits and returns are risky at best in this segment. Learn more by reading UBS Center Foundation Professor Joachim Voth’s op-ed as published in Finanz und Wirtschaft.

On the occasion of our 10th anniversary, we invite you to browse through the Center’s highlights from the past decade. What are the social and economic origins of populism? How can we reduce inequality? Is culture key? How can we keep Swiss finance in the game? Can Europe be saved? Answers to these and other important questions are provided by numerous experts in lectures, interviews, and papers made possible by the UBS Center.

Just before the end of the year, we would like to put a spotlight on our world of research with you. The topics are current issues that have preoccupied us throughout the year: Switzerland as an endangered success model, green innovation policies, spin dictators, European energy policy at war, and superstar firms as a threat to competition and democracy. What measures are needed to address these issues? You will find answers to these questions in the works and assessments of our researchers and other experts.

Resurgent nationalism and increasing populism, rejection of free trade, opposition to immigration, growing global inequality, and a retreat from multilateralism: These are the defining issues of our time that fuel the globalization backlash. What are the causes of these phenomena and what are effective solutions to address these issues?

With Claudia Gentile and Lexi Schubert the UBS Center has two new scholarship holders – both young talented women, who are devoting their dissertations to important economic issues: environmental policies and the psychological aspects of poverty. In this interview, the two talk about their passion for economics and the advantages of a research semester abroad.

It is almost impossible to predict when the next financial crisis will occur. However, we know how to react correctly in such a crisis. This year's Nobel Prize honors three economists for their research on banks and how their actions contribute to the formation of financial crises.

Since 1980, the world economy has experienced an increase of dominant firms. Dominant firms face limited competition in their market and exert monopoly power. At our anniversary edition of the Forum for Economic Dialogue we focused on questions around these superstar firms and their impact on society.

Reducing poverty and inequality is one of the five global challenges that the researchers at the Department of Economics want to help solve. They presented their own research and work that inspired them in short talks at the fourth Research Slam.

Big tech companies are getting bigger and bigger. Is this exacerbating income inequality? Yes, says economics professor David Dorn. Income is being redistributed more strongly from labor to capital.

Being a core area of economics, finance related topics are reflected in numerous activities of the UBS Center. Questions on the most diverse aspects of finance are key: What can we learn from past financial crises? What does a fair tax system look like? What does the financial system of the future look like? How can we keep Swiss finance in play? How do we deal with sovereign debt?

Monopolies lead to high prices for consumers, low wages for employees - and excessive corporate profits. The tech giants are a prime example of this development. Economist Jan Eeckhout explains how this came about and what can be done about it.

Economists should work less like physicists and more like craftsmen, says Nobel laureate Abhijit Banerjee in an interview with Schweizer Monat. They could help solve global problems - but they would first have to win back the public's trust.

Dina Pomeranz and Dave Donaldson (MIT) talked with Tim Phillips (Vox) about their work on ghost firms along with Paul Carrillo and Monica Singhal. The group has been investigating how ghost firms operate in Ecuador, evaluating the government’s efforts to shut them down.

Sergei Guriev knows the Putin system intimately. Because he was too liberal for Moscow, he had to flee. Now he tells us who Putin still listens to, what the Kremlin leader is doing in the crisis - and how serious the nuclear threat is.

The labor market is currently dominated by divergent trends. On the one hand, we have enormous technological progress and innovation as well as record high profits of large corporations, which are competing for the best talents with attractive wages and new work models. On the other hand, we have rising prices, a declining labor’s share of GDP, stagnating wages, especially those of middle-class workers, resulting in a polarization of the labor market. What are the causes of these trends and what solutions from business and politics are needed to safeguard prosperity and counteract polarizing trends that are harmful to society?

The European Single Market allows its citizens to choose in which country they want to work. This freedom of movement should lead to a convergence of wages and employment rates across countries. However, despite increasing migration flows within Europe, a full equilibration of wage levels is not in sight.

Florian Scheuer spricht im Studio Libero über die Ungleichheit der Einkommen und der Vermögen in der Schweiz, über die 99-Prozent-Initiative der Juso und über Besonderheiten im Schweizer Steuersystem.

Economist Esther Duflo explains why the fight against climate change is so difficult. And why people often don't do what models predict.

Nir Jaimovich is leaving the UBS Center to accept a new position as Anonymous Family Chancellor Endowed Chair in Macroeconomics at UC San Diego. From 2017 to 2022, he was Professor of Economics at the Department of Economics, University of Zurich, and Affiliated Professor at the UBS Center. We wish him all the best and continued success in San Diego.

Reducing global carbon emissions can seem like an uphill battle. Countries struggle to implement policies that do not lead to unintended consequences defying their original aims and economic interests. A change in our understanding of the effects of policies on technological innovation can help overcome this hurdle. The authors propose a green industrial policy that combines emission taxes, trade policy and subsidies.

Why do we find it so difficult to solve pressing global problems? Nobel laureate in economics Abhijit Banerjee explains the reasons.

Nobel laureate in economics Esther Duflo is skeptical about single, decisive measures. She has used field trials in developing countries to study how to reduce poverty. Her research has improved the lives of 540 million people.

Culture is a core element of human coexistence and encompasses all areas of life, including the economy. The influence of culture on various economic dimensions is the subject of numerous studies and provides important insights into core issues of economic behavior: Which rules and incentives are needed for a successful corporate culture? What role do cultural values play in financial decisions? How can we identify and change harmful practices based on misbeliefs and misconceptions?

It would be good if empires like Russia and China were to break up, says Gérard Roland of the University of California at Berkeley. He is convinced that the world is developing in the direction of small democracies that enter into military alliances with each other.

Wir befinden uns in einer epochalen Auseinandersetzung zwischen Demokratie und Despotismus, Rechtsstaat und Willkür, Freiheit und Zwang. Als kleines, exportorientiertes Land muss sich die Schweiz wappnen. Ein Auszug aus Kaspar Villiger's Rede am Wirtschaftspodium Schweiz, publiziert als Gastkommentar in der Neuen Zürcher Zeitung.

No other topic shows the interrelation of our own environment with global developments as clearly as climate change. Economists of all disciplines agree that climate change is having unprecedented effects on economic and social development and should be one of our top priorities. If we want to sustainably reduce CO2 emissions, globally coordinated measures are needed. The question is, how do we do that? What are the costs of climate change and what are sensible measures in the fight against global warming?

The consensus view until the 2010s was that trade had little impact on inequality in high-income countries. This column reviews the recent evidence that challenges this view. Manufacturing employment contracted sharply in countries like the US and the UK which faced rapid net import growth from China. The resulting, persistent adverse effects on employment and incomes of low-skilled workers do not appear to have been offset by trade’s effect on prices, which seems to have benefited rich and poor households alike. Mitigating these effects is an important but difficult task for policymakers.

Many think billionaires are spared too much by the taxman compared to average earners. Where does this impression come from? Article translated from the original which appeared in the Frankfurter Allgemeine Zeitung by Florian Scheuer.

Digital data collection began with the breakthrough of the internet over twenty years ago. The amount of data collected and its use have led to remarkable social progress, but at the same time they lead to problems. What can economics contribute to solving these problems? What role can it play in regulating of digitization? Gregory Crawford provides insights into his work and shows how his findings can contribute to the regulation of digitization in our society.

Inequality, opportunities, and development is a subject area that encompasses numerous current social issues. How can we reduce inequality? What are the causes of social and economic inequality? How can we create opportunities for women in the labor market? What measures help to combat inequality in developing countries?

Neuroeconomic methods can be used to explore the biological basis of human behavior in unprecedented ways and allow us to better understand the motives and processes that define our behavior. In this interview, Ernst Fehr explains how neuroeconomics provides answers to fundamental questions the field faces.

Das Coronavirus und Covid-19 beschäftigen die Welt. Aktuell beteiligen sich Forschende des Departments in nationalen und internationalen Medien an der öffentlichen Analyse und Diskussion. Neben den Beiträgen aus ihren jeweiligen Spezialgebieten haben die Professorinnen und Professoren des Department of Economics ein gemeinsames Positionspapier veröffentlicht. Dieses fasst den Konsens der ökonomischen Debatte zusammen und zeigt Handlungsoptionen für die Schweiz auf.

Just before the end of the year, we would like to put a spotlight on our world of research with you. The topics are current issues that have preoccupied us throughout the year: Healthcare and pension provision, economics of global challenges, sustainability and climate change. What measures are needed to address these issues? Do we need rules and bans or is an appeal to personal responsibility enough? You will find answers to these questions in the works and assessments of our researchers and other experts.

«People weigh losses more than gains of the same size,» UBS Center director Ernst Fehr says in an interview with finews.com. The idea behind this is that events or processes that are more readily available in our memory determine our decisions more strongly than memories that are less readily available.

Religion and prosperity – do they go hand-in-hand? Can extreme religious events in the past influence levels of economic prosperity (or poverty) today? Can a doctrinaire insistence on religious conformity have a negative impact on economic development? Find out below by reading UBS Center Foundation Professor Joachim Voth’s op-ed on “The Cost of Intolerance” as published in Finanz und Wirtschaft.

Nobel laureate Jean Tirole spoke to the Neue Zürcher Zeitung in the margins of the UBS Center Forum for Economic Dialogue earlier this month. Read the translated interview below to discover Mr Tirole’s views on COP26, emissions trading, nuclear power plants as well as his suggestions for tackling climate change.

How different is human behaviour today to 90 years ago or 200 years ago? How easily are we swayed in our opinions by others? What lessons can be learned by analysing and understanding the power of propaganda, be it propaganda marches or fake news? UBS Foundation Professor Joachim Voth explores these questions in a fascinating podcast as part of the Tim Phillips VoxTalks series where he uncovers parallels between the spread of the Spanish Flu virus to the spread of Nazi propaganda in 1933 Hamburg and what implications this can have for us today.

Eine ZDF-Dokumentation schaut auf vier historische Pandemien und deren Langzeitfolgen zurück. UBS Foundation Professor Joachim Voth zeigt auf, wieso die Engländer die Zeit nach der Pest als das "goldene Zeitalter der einfachen Arbeitskräfte" beschrieben. «So reich, wie die Menschen im 14. und 15. Jahrhundert sind, sind sie bis ins 19. Jahrhundert nicht mehr,» fasst er den heutigen Stand der Forschung zusammen.

In the pandemic, the global economy was able to play to its strengths, says UBS Foundation Professor David Dorn. But globalization also creates net losers.

In a recent exclusive webcast for the UBS Center, University of Chicago’s Professor Esteban Rossi-Hansberg outlined his assessment model of the effect of global warming on economic outcomes and welfare. Assuming heterogenous temperature changes, Rossi-Hansberg explores the resulting impact on decisions regarding where to live, move, trade, and invest.

Im Interview mit SRF «Trend» betont Florian Scheuer, dass es eine gesellschaftliche und letztlich auch politische Frage sei, wie viel Ungleichheit wir haben möchten. Die Aufgabe der Forschung ist es in diesem Zusammenhang, die richtigen Mittel und Instrumente dafür zu erarbeiten, die gewünschte Reduktion dann auch zu erreichen.

The unequal distribution of wealth has been further exacerbated by the Corona pandemic in Switzerland, says economics professor Florian Scheuer in an interview with AWP Soziale Sicherheit. This can lead to increased relative poverty.

Die ungleiche Verteilung der Vermögen hat sich durch die Corona-Pandemie auch in der Schweiz nochmals verschärft, sagt Wirtschaftsprofessor Florian Scheuer im Gespräch mit AWP Soziale Sicherheit. Das kann zu einer erhöhten relativen Armut führen.

Führen Mindestlöhne wirklich zu höherer Arbeitslosigkeit? Sind hohe Löhne schädlich für die Produktivität oder ebnen sie den Weg für Innovationen und kreative Lösungen? UBS Foundation Professor Joachim Voth geht der Frage nach, was höhere Löhne für eine Volkswirtschaft wirklich bedeuten und ob die ökonomische Theorie der Realität entspricht.

Do minimum wages really lead to higher unemployment? Are high wages detrimental to productivity or do they pave the way for innovation and creative solutions? UBS Foundation Professor Joachim Voth takes a closer look at what higher wages really mean for an economy and whether economic theory reflects real life.

UBS Foundation Professor, Florian Scheuer, recently gave an interview to Blue News where he discusses new proposals for a global minimum tax, possible repercussions and challenges for Switzerland and what Switzerland can do to remain attractive to big corporations.

UBS Foundation Professor Florian Scheuer hat kürzlich ein Interview mit Blue News gegeben, in dem er über neue Vorschläge für eine globale Mindeststeuer, mögliche Auswirkungen und Herausforderungen für die Schweiz spricht und darüber, was die Schweiz tun kann, um für große Unternehmen attraktiv zu bleiben.

The Swiss welfare systems are facing major challenges - first and foremost retirement provision: an aging society, low interest rates for pension provision as well as misguided incentives for early retirement. Where are the limits of the welfare state and what priorities need to be set in order to ensure the future viability of the social systems? These questions were the focus of a lively discussion among the panel of experts at the Wirtschaftspodium Schweiz (see box). After the event, we spoke with two of the panellists, economist Monika Bütler and economist and UBS pension expert Veronica Weisser, about inequalities and injustices in the pension system.

Die Schweizer Sozialsysteme stehen vor grossen Herausforderungen – allen voran die Altersvorsorge: eine alternde Gesellschaft, tiefe Zinsen für die Altersvorsorge sowie Fehlanreize zur Frühpensionierung. Wo sind die Grenzen des Wohlfahrtsstaates und welche Prioritäten sind zu setzen, um die Zukunftsfähigkeit der Sozialsysteme gewährleisten zu können? Diese Fragen wurden am Wirtschaftspodium Schweiz rege diskutiert. Wir sprachen im Anschluss an die Veranstaltung mit den beiden Referentinnen, Ökonomin Monika Bütler sowie Ökonomin und UBS Vorsorgeexpertin Veronica Weisser, über Ungleichheiten und Ungerechtigkeiten im Vorsorgesystem.

When we make decisions for others, we assume that they have the same preferences as we do. And if they don't, we’ll impose our preferences on them. Research by UBS Foundation Professor Sandro Ambühl shows that this assumption and paternalistic interventions based on ideals lead to suboptimal results.

Die Schweizer Sozialsysteme stehen vor grossen Herausforderungen: eine alternde Gesellschaft, steigende Gesundheits- und Pflegekosten, tiefe Zinsen für die Altersvorsorge, sowie Fehlanreize im Gesundheitsweisen und zur Frühpensionierung. Wachsende Ansprüche stehen Fragen der Machbarkeit gegenüber. Wo sind die Grenzen des Wohlfahrtsstaates? Und welche Prioritäten sind zu setzen, um die Zukunftsfähigkeit der Sozialsysteme gewährleisten zu können?

The “Roaring Twenties” were an epic era, molded by optimism and excess. The First World War was over, as was the Spanish flu. And now, one hundred year later, we are again fighting a pandemic. Are there parallels? Nicoletta Cimmino spoke with Joachim Voth, Professor of Economics.

Aktuelle Studien zeigen, die Pandemie hat die wirtschaftliche Ungleichheit in der Schweiz ausgeweitet. Wie lässt es sich erklären, dass die Reichen immer reicher werden und selbst in einer globalen Krise Rekordgewinne einfahren können? UBS Foundation Professor Florian Scheuer beantwortet diese Frage im Gespräch mit dem SRF Wirtschaftsmagazin ECO.

Keep the germs away, wash your hands. The coronavirus pandemic has reminded us that hand washing protects against the spread of infectious diseases. The disgust we feel when someone does not wash their hands after going to the toilet has an important function. But, while being a powerful biological response that has preserved our species for millennia, disgust turns out to be a double-edged sword. As a recent episode of Freakonomics Radio shows, it may be keeping us from pursuing strategies that would improve the environment or the economy.

Über Unternehmenskultur zu sprechen, ist in der Geschäftswelt ziemlich populär geworden. Aber warum sollten sich Unternehmen überhaupt für die Unternehmenskultur interessieren? Warum sind «weiche» Konzepte wie Kultur wichtig? Können sich Unternehmen nicht einfach auf «harte» Fakten verlassen – den Wert klarer und effizienter institutioneller Regeln und Anreize? In diesem Public Paper legen wir dar, dass Unternehmenskultur wichtig ist, weil menschliches Verhalten immer von den vorherrschenden gesellschaftlichen Normen mitbestimmt wird.

Just before the end of the year, we would like to put a spotlight on our world of research with you. The topics are current issues that have preoccupied us throughout the year: Inequality, taxes, climate change and the Corona crisis. What measures are needed to address these issues? Do we need rules and bans or is an appeal to personal responsibility enough? You will find answers to these questions in the works and assessments of our researchers and other experts.

The UBS Center welcomes two outstanding young talents as this year’s UBS Center Scholarship holders. They were selected from several hundred applicants to the Zurich Graduate School of Economics (Zurich GSE). We asked the freshman doctoral students about their motivation to obtain their degree in Zurich.

NZZ Interview | Nobel Prize winner Angus Deaton speaks of "death out of despair": In the USA, the mortality of non-academics has risen sharply. Deaton diagnoses a deep divide between people with good and poor education.

Special times call for special measures. That is why our annual forum this year took place online. Despite the change in format, we have sought to maintain our customary standards. We had a series of events in store, focusing on different aspects of inequality – a topic that has become even more important in light of the global pandemic and its devastating consequences, which has hit many of the most vulnerable people in the world particularly hard.

US Elections 2020 | The economic decline of some regions has deepened the ideological divide.
A commentary by David Dorn.

While differences in income and wealth can be justified, low social mobility seems difficult to accept in meritocratic societies. A commentary by Joachim Voth.

Dr. Matthias Ammann joined the UBS Center as COO in September 2020. Prior to that, he was a Fellow at Avenir Suisse from 2017 to 2020, where he focused on education policy and on the potential of digitization for government and administration. He completed his doctorate at the University of St. Gallen after his studies in International Affairs and Governance as well as International Management at the University of St. Gallen and the Copenhagen Business School.

The UBS Center for Economics in Society (UBS Center) was established as an Associate Institute at the University of Zurich (UZH) to build a bridge between science and society. From the very beginning, the Center's credo was "Economics for Society". This was made possible thanks to a donation of CHF 100 million from UBS on the occasion of its 150-year anniversary. UBS has now decided to extend its engagement for an additional 10 years with a new donation of approximately 25 million Swiss francs, enabling the UBS Center to build on its past achievements.

Als 2012 das das UBS Center for Economics in Society (UBS Center) an der Universität Zürich (UZH) gegründet wurde, geschah dies mit dem Ziel, eine Brücke zwischen Wissenschaft und Gesellschaft zu schlagen. Von Beginn an lautete daher das Credo des Centers «Economics for Society». Möglich machte dies damals eine 100-Millionen-Spende von UBS anlässlich ihres 150-jährigen Jubiläums. Nun hat UBS entschieden, ihr Engagement mit einer neuen Finanzierung von rund 25 Millionen Schweizer Franken um weitere zehn Jahre zu verlängern, um das bisher Erreichte weiterzuführen.

No other topic shows the interrelation of our own environment with global developments as clearly as climate change. Economists of all disciplines agree that climate change is having unprecedented effects on economic and social development and should be one of our top priorities. We spoke with David Hémous on the challenges facing economists and politicians to find answers to the climate change – and fast.

In a fast moving world, there is little time for classification and reflection. However, anyone who really wants to understand something needs context. Joachim Voth's research assumes this task and places social phenomena in their cultural and historical contexts. He applies economic tools, and he likes to refute established theses with his results.

Alberto Alesina, Nathan Ropes Professor of Political Economy at Harvard University and member of the Scientific Advisory Board of the UBS Center for Economics in Society, died suddenly on May 23, 2020 while hiking.

The challenge to address Covid-19 related urgent health needs and to protect citizens from deep economic distress vary substantially across countries worldwide. In low-and middle-income countries resources and infrastructure are lacking as to implement appropriate measures. This can lead to very negative long-term effects, for example maintaining other health programs such as vaccines for children. Dina Pomeranz offers her analysis and issues a wake-up call to the global community.

Das Coronavirus hat die Welt im Griff. Die Massnahmen zur Eindämmung des Virus haben bereits jetzt eine globale Wirtschaftskrise erheblichen Ausmasses hervorgerufen. Ziel dieses Positionspapiers ist es, die Sicht des Department of Economics auf den Konsens zu beschreiben, der sich in der ökonomischen Disziplin nach intensiven Debatten über den Umgang mit der Krise abzeichnet, und herauszuarbeiten, was dies unserer Meinung nach für die Schweiz bedeutet.

The coronavirus has the world in its grip. It is certain that the measures to contain the virus have already caused a major global economic crisis. The aim of this policy paper is to lay out the Department of Economics' view of the consensus that is emerging in the economics profession after thourough debates on how to deal with the crisis. And to work out what we think this means for Switzerland.

The world stands still while the shockwaves of the corona virus reverberate around the world. Far-reaching economic consequences are difficult to assess. Will some of us be better off than others once we turn back to business as usual? Are we seeing a radical shift in the digitalization of work? Can Western democracies really deal with a challenge of this magnitude? Joachim Voth has studied the economic consequences of plagues. We sat down with him to learn from his research.

Joachim Voth draws parallels between the current strategies to control the coronavirus and those used to combat the plague in Marseille in 1720. Back then, the rigorous mobility restriction by building plague walls proved to be the most effective solution. Today, politics must balance the costs and benefits of restricting the movement of people and goods. The free exchange of goods and capital does not have to be restricted; only very few diseases are transmitted by contaminated goods. The free movement of people itself also contributes to the advantages of globalisation, but it is far less important for production. Voth argues that the lesson from Wuhan should be that we start a broad discussion about how much mobility is actually desirable.

Last February, José Vila-Belda gave a nanoTalk at the University of Zurich explaining the key contributions for which professors Abhijit Banerjee, Esther Duflo and Michael Kremer were awarded the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2019. By breaking down big open questions into smaller but rigorous and policy-relevant scientific tests and leveraging the power of field experiments, Duflo and her colleagues have revolutionized the study of the causes of poverty and the policies that can effectively reduce it.

We are pleased to introduce the 2019 class of our scholarship holders. Five talented young scholars have been selected among the top-applicants for the Zurich Graduate School of Economics. They come from all over the world and will be affiliated with the UBS Center during their doctoral studies at the University of Zurich.

When asked about what inspires her as an economist, Ekaterina Zhuravskaya has a few different answers. First, it’s purely academic, she’s trying to solve some of the puzzles that she sees within the political economy. The second comes from the policy failures she sees in democracies, autocratic states and dictatorships and getting to the roots of these. And the third is bringing up a new generation of scholars and economists, watching her students grow and transition in bright young academics.

We followed up on the "Women in Economics" initiative by UBS and CEPR and organized a breakfast talk with Marianne Bertrand, Raquel Fernandez, and Ekaterina Zhuravskaya for young female economists at the University of Zurich’s Graduate School of Economics.

Taxes are the price we pay for living in a safe and organized country; tax competition ensures that this price remains fair. With this statement, former Swiss Finance Minister Kaspar Villiger openend the sixth edition of our “Wirtschaftspodium” in Zurich.

A sound corporate culture drives a company’s overall performance sustainably – this is not only common sense, but also evidenced in research. Why is culture so important for economic success, and what are the characteristics of a successful corporate culture? A new paper by Ernst Fehr puts cooperation and feedback center stage.

The newly established policy brief series conveys main research insights to politicians, policy makers, and the broader public. The policy briefs are nontechnical summaries of research findings that address today’s key challenges, and they come with policy suggestions derived from the research results.

David Hémous recently received a prestigious grant from the European Research Council, while Urša Krenk just started her doctoral studies at the Zurich Graduate School of Economics. Although they are at different stages of their academic careers, they have one thing in common: their passion for economic research.

1:0, 7:2, 11:3. No – not the latest ice hockey scores, but the ratio of male to female speakers at the UBS Center’s 2018 events. 9:1 – the professors and 8:5 – the scholarship holders at the UBS Center. 18:6 – the UBS Center Advisory Board members.

Culture and economics are closely interlinked: a country’s economic success depends on the quality of its culture. This insight is not new, yet, it has long been ignored. It has returned, however, to the center of economists’ attention, as an event by the UBS Center showed in November.

Why are our financial decisions often irrational, leading to bad choices? Behavioral economist Dan Ariely answered this question in a very entertaining and thought- provoking way.

New technologies, new services, new client needs – is the financial market at a historic turning point? And if so, what are the implications for Swiss finance? At this year’s UBS Center Podium economic historians and experts from the financial sector were divided on the question about the significance of today’s changes in finance.

Ladina Jenal is the new Chief Operating Officer of the UBS International Center of Economics in Society. Her research interests focus on risk management, internal control and corporate governance as well as economic impacts of maternity on labour markets.

We are excited to announce the upcoming publication series titled “UBS Center Policy Briefs.” To get some insights, we sat down with editor-in-chief Florian Scheuer.

Does bank expansion cripple growth? How does working during pregnancy affect newborn babies? How can we reduce food waste? What are the right work incentives in disability insurance? These are only a few of the questions that our senior scholarship holders address in their research projects.

'How to Deal with the Globalization Backlash?' was the question for leading thinkers and academics at the UBS Center Forum for Economic Dialogue.

They have dedicated themselves to reduce poverty around the globe. Esther Duflo (MIT) and Abhijit V. Banerjee (MIT) visited the University of Zurich to share the lessons they learned after publishing Poor Economics.

The new UBS Center Public Paper shows that Switzerland is a center of stability – in a good as well as in a less good sense.

Chipping away at the many misconceptions surrounding migration is just a first step toward finding viable solutions to this highly charged topic. This was one of the main insights of this year’s Wirtschaftspodium Schweiz.

There is a thin line between news bias, fake news, and propaganda. Just look at the current debate about manipulation of the media in the U.S. While mass media is believed to play a powerful role in democracies, the ability of the media to perform its prescribed role as the “watchdog” has been questioned.

Ralph Ossa was appointed to the Professorship in Economics of Globalization and Emerging Markets, endowed by the UBS Center. He joined the University of Zurich at the beginning of this year. His research focuses on international trade, economic geography, and economic development.

Economic models tend to assume that people are informed about the decisions they make, so that consumers are able to make markets work to their advantage. Robert Shiller argued that this assumption is at least partially wrong, as many competitive markets by their very nature spawn deception and trickery.

Whether you call it the third or the fourth industrial revolution, we are entering an era of unprecedented economic, technological and social change. But what are the forces driving this change and will humanity benefit or suffer as a result?

Seventy years after Winston Churchill gave his historic address calling for a “United States of Europe” at the University of Zurich, Nobel Laureate Professor of economics Paul Krugman stood at the same podium and delivered a provocative lecture on Europe’s future.

Life expectancy in Western societies increases while birth rates drop. There is a fifty-percent chance that a child born today in Switzerland will live to be 100 years old. What does this mean for the economy and for society? How can the pension system be secured?

Thanks to his recent best-selling book *This Time is Different: Eight Centuries of Financial Folly*, Ken Rogoff is widely regarded as one of the world’s leaders on the topic. This may explain why the main auditorium of the University of Zurich was much too small for the hundreds of people who wanted to hear what the former IMF Chief Economist had to say about the world’s current debt problems.

Nobel Prize Winner Mohammed ElBaradei opened this year’s forum with a powerful and moving address. He argued the world is facing a crisis of governance and advocated for a global social contract based on inclusion and fostering solidarity.

High debt levels and violent conflicts are two of the themes that have been dominating the headlines for months. It goes without saying that both are seen as indicators of failure or decline. But as economic historian Hans-Joachim Voth shows, this does not always hold true. On the contrary, there were times when military conflict acted as an engine for development and high debt levels spurred economic growth.

On a macroeconomic level, the wealth of nations greatly depends on investment in human capital. For Switzerland with few natural resources, the many positive effects of strong human capital are particularly important. But what kind of human capital does Switzerland need?

Leading international figures from science, business, and politics discussed why large parts of the world are still waiting for a return to stable economic growth and a reduction in unemployment and debt levels six years after the outbreak of the financial crisis.

Switzerland is doing well...too well? Is the model for success in danger? Participants in the UBS Center Swiss Forum discussed the strengths and weaknesses of Switzerland as a business location.

Forum for Economic Dialogue 2012 – a successful inauguration. Leading economists took it in turn to address the critical issues confronting the international financial system today.