CGR-SEF Workshop | Quantitative Analysis of Social and Economic Issues

This Wednesday, 21st of November Dr. Caterina Gennaioli (CGR) and Dr. Sebastian Axbard (SEF) are organising a workshop on quantitative analysis of social and economic issues. Dr. Anna Raute (SEF), Dr. Georg von Graevenitz (SBM), Dr. Reinhard Weisser (SEF) and Prof. Pedro Martins (SBM) will be discussing their most recent research on maternal labour supply, R&D and IP strategies after the financial crisis, performance and human disaster, and rent sharing in Chine.

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Fifth annual meeting on the ‘Theory and Empirics of Inequality, Poverty and Mobility’, 19th October 2018, at QMUL, Charterhouse Square.

BY Dr SANGHAMITRA BANDYOPADHYAY

On the 19th of October, we hosted the fifth meeting on the ‘Theory and Empirics of Inequality, Poverty and Mobility’, at the QMUL premises on Charterhouse Square, London. There was a large spread of theoretical and applied issues addressed in the six papers presented. In the morning three papers discussed issues related to the measurement of mobility and poverty, with applications to the EU, Mexico and with global poverty data, while in the afternoon three papers discussed the impact of mining on individual well-being in Sub-Saharan Africa, how social connections and financial incentives affect productivity in tasks that require coordination among workers via an experiment in a garment factory in India, and a final paper evaluating the effect of aid on conflict in Indonesia.

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From left to right: Sanchari Roy (King’s College), Caterina Gennaioli (SBM, QMUL), Elena Barcena Martin (Universidad de Málaga, Spain), Gaston Yalonetzky (Leeds and Oxford), Sambit Bhattacharya (University of Sussex), Florent Bresson (Université Clermont Auvergne, France), Beatriz Rodriguez-Satizabal (SBM, QMUL), Amrita Dhillon (Kings College, London), Wenjing Duan (SBM, QMUL), Ying Cui (SBM, QMUL) and, the organiser, Sanghamitra Bandyopadhyay (SBM, QMUL)

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CGR Annual Globalisation Seminar and Workshop on Political Economy and Economic Development

On Friday, 9th of November the Centre for Globalisation Research (CGR) of the School of Business and Management, Queen Mary University of London is hosting the annual Globalisation Seminar and workshop on Political Economy and Economic Development organised by Dr. Caterina Gennaioli (CGR Director).

CGR2018EventWordCloud

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Brown Bag Seminar | Social Capital, Government Expenditures and Growth

This Monday 1st of October, Dr. Ugo Troiano will be presenting his research. Dr  Troiano works at the University of Michigan as an Assistant Professor of Economics. He is also a Faculty Research Fellow NBER in Political Economy and Public Economics, Research Associate at the Office of Tax Policy Research and Faculty Associate in the Institute for Social Research CPS.

Abstract

This paper shows that social capital increases economic growth by raising government investment in human capital. We present a model of stochastic endogenous growth with imperfect political agency. Only some people correctly anticipate the future returns to current spending on public education. Greater social discussion of information makes this knowledge more widespread among voters. As a result, we find it alleviates myopic political incentives to underinvest in human capital, and it helps the selection of politicians that ensure high productivity in public education. Through this mechanism, we show that social capital raises the equilibrium growth rate of output and reduces its volatility. We provide evidence consistent with the predictions of our model. Individuals with higher social capital are more informed about their government. Countries with higher social capital spend a higher share of output on public education.

Industrial Revolution: factor prices and innovations

BY DR. RAVSHONBEK (ROSH) OTOJANOV

A previous post outlined a number of major inventions (or macro-inventions) of the eighteenth century that were the basis for the inventions of the nineteenth century that propelled productivity growth. These innovations, according to Robert Allen, would not have taken place in Britain in the absence of cheap coal deposits. Another unique factor driving the innovations was Britain’s expensive labour. Labour was expensive in Britain, and economic historians have traced the origins of the high wages back to the Black Death plague (in the 14th century) that reduced the working age population significantly. Moreover, Britain’s commercial success in the international economy played a role in the growth of wages.

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Figure 1. Average nominal wages and the cost of wood and coal, 1600-1914. Panel (a): Average weekly wages. Panel (b): The price of wood (1600-1870) and coal in GBP per Toe. Data sources: Thomas and Dimsdale (2017) and Fouquet (2011)

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Industrial Revolution: powerful innovations

By Dr. Ravshonbek (Rosh) Otojanov

The British Industrial Revolution was a watershed moment in the history of humanity; an important result of which was an irreversible positive turning point in the living standards. There have been a number of explanations to what facilitated the transition from low to modern growth in the eighteenth century. In a series of brief posts, I will document the two of the many explanations put forward by scholars Robert Allen and Joe Mokyr. Both the scholars put technological progress at the centre-stage, but they differ in their views on what provided impetus to the technological progress.

Real GDP for the 1500-1914 period. The shaded region covers the 1760-1900 period
                      Real GDP, 1500-1914.                                           Shaded region: 1760-1900.               Data: Broadberry et al. (2015)

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Putin’s economic dilemma

By Brigitte Granville and Vladimir Mau
Re-blogged

Despite Western sanctions and oil-price volatility, Russia is currently on sturdier economic footing than most of its critics ever could have imagined just a few years ago. But while prudent fiscal and monetary policies have laid the groundwork for long-term sustainable growth, the government must resist the temptation of short-term stimulus.

Russia has a way of illustrating universal problems. Consider the goal of economic development. Political leaders have an interest in delivering economic prosperity very quickly, and yet the policies needed to enable sustainable long-term growth can take quite a while to bear fruit. The political and policy clocks are rarely synchronized.

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