Business & Economics

Brexit and Article 50 negotiations: why the smart money might be on no deal

By Matthew Watson

David Cameron famously got precious little from his pre-referendum attempts to negotiate a special position for the UK in relation to existing EU treaty obligations. This was despite almost certainly having held many more cards back then than UK negotiators will do when Article 50 is eventually invoked. In particular, he was still able to threaten that he would lead the Out campaign if he did not get what he wanted, whereas now that the vote to leave has happened that argument has been entirely neutralised.

One concerned economist

By Richard S. Grossman

A few weeks ago, I received an e-mail inviting me to sign a statement drafted by a group calling itself “Economists Concerned by Hillary Clinton’s Economic Agenda.” The statement, a vaguely worded five paragraph denunciation of Democratic policies (and proposed policies) is unremarkable — as are the authors, a collection of reliably conservative policy makers and commentators whose support for Donald Trump appear with some regularity in the media.

New York City’s housing crisis

By Jason M. Barr

New York City is the midst of a housing affordability crisis. Over the last decade, average rents have climbed 15% while the income of renters has increased only 2%. The city’s renaissance since the 1990’s has drawn thousands of new residents; today, the population of 8.5 million people is the highest it has ever been. But New Yorkers are finding that the benefits of city living are not without its costs. The demand for housing has outstripped the real estate community’s ability to supply it; as a result, prices have been rising.

Brexit and Article 50 negotiations: what it would take to strike a deal

By Matthew Watson

In the end, the decision for the UK to formally withdraw its membership of the European Union passed with a reasonably comfortable majority in excess of 1¼ million votes. Every one of the 17.4 million people who voted Leave would have had their own reason for wanting to break with the status quo. However, not one of them had any idea as to what they were voting for next. It is one of the idiosyncrasies of an all-or-nothing referendum.

Why the science of happiness can trump GDP as a guide for policy

By Richard A. Easterlin

For centuries, happiness was exclusively a concern of the humanities; a matter for philosophers, novelists and artists. In the past five decades, however, it has moved into the domain of science and given us a substantial body of research. This wellspring of knowledge now offers us an enticing opportunity: to consider happiness as the leading measure of well-being, supplanting the current favourite, real gross domestic product per capita, or GDP.

The poverty paradox

By Andy Sumner

Amartya Sen’s famous study of famines found that people died not because of a lack of food availability in a country, but because some people lacked entitlements to food. Can the same now be applied to the causes of global poverty?

Small donor democracy? Don’t count on it

By Robert E. Mutch

Hillary Clinton says she wants to get big money out of elections, and one of the ways she wants to do it is to curb the influence of big donors by mobilizing lots of small ones. This reform idea has become very popular recently, thanks to the concern about super PACs and billionaires that has been growing since Citizens United. But the idea is an old one. The first serious small-donor programs began more than 100 years ago, and they have been working more or less continually ever since.

Hamilton’s descendants

By Richard Grossman

Inspired by the 11 Tony awards won by the smash Broadway hit Hamilton, last month I wrote about Alexander Hamilton as the father of the US national debt and discussed the huge benefit the United States derives from having paid its debts promptly for more than two hundred years. Despite that post, no complementary tickets to Hamilton have arrived in my mailbox. And so this month, I will discuss Hamilton’s role as the founding father of American central banking.

Executive remuneration

By Christine Mallin

For many years executive remuneration has been one of the ‘hot topics’ in corporate governance. Each year there is a furore around executive remuneration with the remuneration of CEOs often being a particular area of contention. This year we have seen the spotlight focussed on the remuneration of CEOs at high profile companies such as BP and WPP resulting in much shareholder comment and media attention.

Poverty: a reading list

By Alex Guyver

Poverty can be defined by ‘the condition of having little or no wealth or few material possessions; indigence, destitution’ and is a growing area within development studies. In time for The Development Studies Association annual conference taking place in Oxford this year in September, we have put together this reading list of key books on poverty, including a variety of online and journal resources on topics ranging from poverty reduction and inequality, to economic development and policy.

UK food retailing and the challenge of the ‘new retail’

By Alan Treadgold

And yet on exactly the same day that ASDA was confirming just how bad its sales position is, Amazon announced that it would open in early 2017 another fulfilment centre – its thirteenth – in the UK. Part—but only part—of the reason why Amazon needs more capacity is due to the initial success of its Amazon Fresh food delivery business which launched in the UK in July 2016.

Australia in three words, part 2 – “Kangaroo court”

By William Coleman

A ‘kangaroo court’ is no more Australian than a Californian kangaroo rat. The term originated in the California of 1849, as a legacy of the summary and dubious efforts at informal justice on lawless gold fields. By contrast, the Australian gold fields of that period felt heavily the overbearing hand of the law. This contrast epitomes a larger paradox. Australians are seen as ‘disrespectful of authority’; the truth is they have, from their beginnings, been highly law-prone.

10 things you didn’t know about Brazil’s economy

By the end of the twentieth century, Brazil had ranked as one of the the ten largest economies in the world, but also being that with the fifth largest population, it is facing many obstacles in economic growth. With the 2016 Rio Olympics now upon us, we’ve collated 10 interesting facts about Brazil’s economy from colonial times to the modern day.

What a difference a decade makes in Brazil

By Riordan Roett

Ten years ago Brazil was beginning to enjoy the financial boom from China’s growing appetite for commodities and raw materials. The two countries were a natural fit. Brazil had what Beijing needed – iron ore, beef, soybeans, etc. and China had what Brasilia desperately wanted – foreign exchange to address budget deficits and cost overruns on major infrastructure projects. It was a marriage made in heaven – for four or five years.

Is globalization the problem?

By Eric Sheppard

Populist angst and anger is running through the United States presidential campaign, but also through the Brexit debates, directed at the political establishment, and also at globalization (with the European Union standing in for the latter in the UK context). This anger has taken policy elites by surprise, throwing wrenches into the works of carefully planned political campaigns by mainstream Republican, Democratic, Conservative, and Labour parties on either side of the Atlantic.

Child labour in India: an uncertain future?

By Gurchathen S. Sanghera

India is known to have the largest number of child labourers in the world. Consequently, it has come under intense media and political scrutiny both within India and from afar. Traditional understandings of the causes of child labour have focused on the economic, social-cultural, and historical milieus specific to India, such as caste, class, corruption, gender, illiteracy, lack of law enforcement, political apathy, poverty, religion, etc.