Latest RLAB News

Below are the latest headlines for CEP and STICERD. For full coverage see the CEP News and Visitors Site and the STICERD News and Visitors Site

Guardian
Happiness expert Paul Dolan: what makes me happy

Article by Paul Dolan
Paul Dolan explains how happiness should be defined and measured in terms of experiences of pleasure and purpose over time.

This article was published by the Guardian on November 22, 2014
Link to article here

Related Links
Paul Dolan webpage
Wellbeing Programme webpage
Paul Dolan CEP publications webpage

Investors Chronicle
The QE problem

QE so that it has the desirable effects of stimulating economic activity and averting horrible debt dynamics, while not creating a moral hazard problem? Yes, say Luis Garicano at the LSE and Lucrezia Reichlin at the London Business School. They propose the creation of a synthetic bond, comprised of risk-free portions of governments' debt, weighted by GDP.

This article was published by the Investors Chronicle on November 21, 2014
Link to article here

Related links
Luis Garicano webpage
Productivity and Innovation Programme webpage

Financial Times
Economists raise doubts on tax levers for Holyrood

Poll respondent Sir Christopher Pissarides, professor at the London School of Economics, said the prospect that governments in London and Edinburgh would compete to attract taxpayers would far outweigh any gains; and administration would be complicated.

This article was published by the Financial Times on November 21, 2014
Link to article here

Related links
Christopher Pissarides webpage
Macro Programme webpage


New analysis published
Poor lose, and rich gain from direct tax and benefit changes since May 2010 – without cutting the deficit

New analysis from Essex University and the LSE analyses the impact of benefit and direct tax changes since the election in detail. This shows that the poorest income groups lost the biggest share of their incomes on average, and those in the bottom half of incomes lost overall.

The full paper can be downloaded here (pdf)

The research, by Paola De Agostini, John Hills and Holly Sutherland suggests that who has gained or lost most as a result of the Coalition’s policy changes depends critically on when reforms are measured from.

Prof Sutherland, Director of EUROMOD at the Institute for Social and Economic Research (ISER) at the University of Essex commented: “It is striking how seemingly technical issues or minor differences in assumptions like which tax system is taken as the starting point for Coalition reforms, or whether to assume 100% take-up of benefits have very big implications for what we conclude about whether the rich or the poor were harder hit.”  

Prof Hills, Director of the Centre for Analysis of Social Exclusion at LSE, commented: “What is most remarkable about these results is that the overall effect of direct tax and benefit changes under the Coalition have not contributed to cutting the deficit.  The savings from benefit reforms have been offset by the cost of raising the tax-free income tax allowance.  But those with incomes in the bottom half have lost more on average from benefit and tax credit changes than they have gained from the higher tax allowance.”

Paola De Agostini is Senior Research Officer at the Institute for Social and Economic Research (ISER) at the University of Essex.

John Hills is Professor of Social Policy and Director of the Centre for Analysis of Social Exclusion (CASE) at the London School of Economics.    

Holly Sutherland is Research Professor and Director of EUROMOD at the Institute for Social and Economic Research (ISER) at the University of Essex. 

The paper was prepared as part of CASE’s Social Policy in a Cold Climate programme, which is funded by the Joseph Rowntree Foundation, Nuffield Foundation, and with London-specific analysis funded by the Trust for London.  The views expressed are those of the authors and not necessarily those of the funders.  The analysis uses the tax-benefit model, EUROMOD, based at the University of Essex.


The Executive Time Use Project
What do CEOs do all day?

Markerplace's Sally Herships interviewed Professor Andrea Prat from Columbia University, who is one of the principal investigator of STICERD's Executive Time Use Project. In the article from November 10th, Prat points out that CEOs spend most of their days in meetings. And, he notes, most of the meetings are with employees inside the company. Contrary to common belief, he says that the more time a CEO spends in meetings with his or her employees, the better the company does.

The Executive Time Use Project is an international data collection effort to analyze how corporate leaders in the US, Europe and Asia organiser their working time. It generates reports that help policy makers understand the behaviour and the priorities of top corporate leaders.