Publishing Institution: Economics for Inclusive Prosperity (EfIP) / Topic: Economic Policy

Author:: David Deming
Publication Date:: 06-2019
Content Type:: Policy Brief
Institution:: Economics for Inclusive Prosperity (EfIP)
Abstract:: Despite growing public concern about the cost of college, higher education is still the best investment a young person can make. The American public understands that college is both increasingly necessary and increasingly unaffordable. This dynamic explains the growing public conversation around the idea of “free college”.
Topic:: Economics, Education, Economic Policy, and Higher Education
Political Geography:: United States

Author:: David Klenert and Linus Mattauch
Publication Date:: 08-2019
Content Type:: Policy Brief
Institution:: Economics for Inclusive Prosperity (EfIP)
Abstract:: It is common knowledge among economists that the most efficient instrument to mitigate climate change is a price on carbon. However, current carbon prices around the world are too low to reach global climate targets. This essay assesses the difficulties in designing successful carbon pricing reforms. It discusses how to overcome these difficulties by combining traditional public economics lessons with findings from behavioral and political science. We stress insights from public finance about the “second-best” nature of pricing carbon reforms. Further, we highlight how framing a carbon tax reform around tangible benefits can enhance political support. Finally, we explain how certain countries were successful at introducing high carbon prices and what can be learned from these cases for making progress with climate change mitigation.
Topic:: Climate Change, Economics, Science and Technology, Natural Resources, Global Warming, Green Technology, and Economic Policy
Political Geography:: United States

Author:: Maximilian Kasy
Publication Date:: 08-2019
Content Type:: Working Paper
Institution:: Economics for Inclusive Prosperity (EfIP)
Abstract:: Decision making based on data - whether by policymakers drawing on empirical research, or by algorithms using machine learning - is becoming ever more widespread. Any time such decisions are made, we need to carefully think about the goals we want to achieve, and the policies we might possibly use to achieve them. Data cannot absolve us of this responsibility. They do not allow us to avoid value judgements, and do not relieve us from taking sides in distributional conflicts. This essay introduces a general framework to clarify this point, and then discusses a series of settings in which the choice of objectives (goals) has far-reaching and maybe unexpected implications.
Topic:: Economics, Science and Technology, Labor Policies, Economic Policy, and Artificial Intelligence
Political Geography:: United States

Author:: Şebnem Kalemli-Özcan
Publication Date:: 10-2019
Content Type:: Policy Brief
Institution:: Economics for Inclusive Prosperity (EfIP)
Abstract:: There has been a large increase in corporate leverage in many countries since the early 2000s. Figure 1 plots corporate debt to GDP since 2002 for different groups of countries. With the exception of the U.S., both advanced economies and emerging markets have corporate debt exceeding GDP since 2005. U.S. corporate debt is also on an increasing trend. The fastest growth in corporate debt has been observed in emerging markets. A closer look will reveal that China and other fast growing emerging countries in Asia drive most of the increase in corporate debt for the emerging markets.
Topic:: Debt, Economics, Markets, Regulation, Multinational Corporations, and Economic Policy
Political Geography:: United States and Global Focus

Author:: Arindrajit Dube
Publication Date:: 12-2018
Content Type:: Policy Brief
Institution:: Economics for Inclusive Prosperity (EfIP)
Abstract:: During the past 40 years, the United States has experienced a sharp and sustained rise in wage and income inequality. The high level of inequality in the United States reflects both a disconnect between (1) average wages and productivity, and (2) top and bottom wages.
Topic:: Economics, Labor Issues, Income Inequality, Labor Policies, Wage Subsidies, Economic Policy, and Economic Theory
Political Geography:: United States

Author:: Dani Rodrik
Publication Date:: 12-2018
Content Type:: Policy Brief
Institution:: Economics for Inclusive Prosperity (EfIP)
Abstract:: Theory and empirics both suggest that international trade has sharp distributional implications. Furthermore, redistribution caused by trade is often viewed by the general public as more harmful or disruptive than other domestic market shocks. I discuss conditions under which there may be a legitimate case for restricting trade to promote domestic social inclusion, and propose a specific policy – a social safeguards clause – targeting those circumstances.
Topic:: Economics, Globalization, International Trade and Finance, Economic Policy, Economic Theory, and Trade Liberalization
Political Geography:: Global Focus

Author:: Gabriel Zucman
Publication Date:: 09-2018
Content Type:: Policy Brief
Institution:: Economics for Inclusive Prosperity (EfIP)
Abstract:: Globalization and the rise of intangible capital have increased tax avoidance opportunities for large firms dramatically. 40% of multinational profits are shifted to tax havens each year globally and the United States loses about 15% of its corporate income tax revenue because of this shifting. I discuss the evidence on the redistributive effects of international tax competition. I then present a proposal to reform the corporate tax that would remove any incentive for firms to shift profits or move real activity to lowtax places. Contrary to a widespread view, it is possible to tax multinational companies (potentially at high rates) in a globalized world, even in the absence of international policy coordination.
Topic:: Economics, Globalization, Regulation, Multinational Corporations, Tax Systems, Economic Policy, and Economic Theory
Political Geography:: Global Focus

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