More in Global Economy


2 months

David Ricardo's Comparative Advantage After Two Centuries

Two centuries ago in 1817, the great economist David Ricardo published his most prominent work: "On the Principles of Political Economy and Taxation."Among many other insights, it's the book that introduced the idea of "comparative advantage" (especially in Chapter 7) and thus offered a way of thinking about the potential for gains from trade -- both between countries and within areas of a single country -- that has been central to economic thinking on these topics ever since. In Cloth for Wine? The Relevance of Ricardo’s Comparative Advantage in the 21st Century, Simon Evenett has edited a collection of 15 short essays thinking through how and when comparative advantage applies to modern economies. The book is published by the Center for Economic Policy Research (CEPR) Press, in association with the UK government Department for International Trade.

2 months

Migration from a Global Perspective

International migration is one of the hot-button subjects everywhere. The World Migration Report 2018 from the International Organization for Migration (the UN Migration Agency) provides a wealth of facts and background not just about the economics, which is my focus here, but also about regional aspects of migration, international frameworks governing migration, media coverage of migration, how potential migrants perceive their choices, and more.

2 months

How Coalitional Instincts Make Weird Groups and Stupid People

I like to think of myself as an individual who makes up his own mind, but that's almost certainly wrong for me, and you, gentle reader, as well. A vast literature in psychology points out that, in effect, a number of separate personalities live in each of our brains. Which decision gets made at a certain time is determined in part by how issues of reward and risk are framed and communicated to us. Moreover, we are members of groups. If my wife or one of my children is in a serious dispute, I will lose some degree of my sunny disposition and rational fair-mindedness. Probably I won't lose all of it. Maybe I'll lose less of it than a typical person in a similar situation. But I'll lose some of it. 

2 months

India: Headed Toward Most Populous Country

Throughout my lifetime, China has been the most populous country in the world. But India has nearly caught up, and should overtake China in the next couple of years.

2 months

Difficulties of Making Predictions: Global Power Politics Edition

Making predictions is hard, especially about the future. It's a comment that seems to have been attributed to everyone from Nostradamus to Niels Bohr to Yogi Berra. But it's deeply true. Most of us have a tendency to make statements about the future with a high level of self-belief, avoid later reconsidering how wrong we were, and then make more statements.

2 months

The Economics of Advertising

There's an old rueful line from firms that advertise: "We know that half of all we spend on advertising is wasted, but we don't know which half." It's not clear who originally coined the phrase. But we do know that the effects of advertising have changed dramatically in a digital age. Half of all advertising spending may still be wasted, but now it's for a very different reason.

2 months

The Modern Shape-Up Labor Market

It’s not unusual to hear predictions that in the future, we will all have opportunities to run our own companies, or that jobs will become a series of freelance contracts. Here’s a representative comment from business school professor Arun Sundararajan (“The Future of Work,” Finance & Development, June 2017, p. 7-11):