What did we miss about globalisation? In an early 2019 lecture, American economist Paul Krugman presented his views on several characteristics about globalisation that we have observed and missed over time. Krugman emphasises the need for greater discourse on globalisation in relation to the dynamics of change, short run effects, social and distributional impacts, and the interactions with the political economy. Continue Reading …
In most developed countries, labour’s share of national income has fallen since the mid 1980s. Empirical studies found the shift from labour to capital intensive industries, or the impact of trade exposures and outsourcing, as unlikely to explain these trends entirely; and that the impact of globalisation, labour-capital bargaining power, capital accumulation and uneven technology adoption to be interesting and important considerations. Continue Reading …
Businesses must pass the one dollar test. That is, they must earn a return of invested capital (ROIC) in excess of the opportunity cost of capital. In their paper, Calculating Returns on Invested Capital, Credit Suisse’s M. Mauboussin & D.Callahan from Credit Suisse provide a helpful introduction to the topic. Continue Reading …
An OECD study quantified the effects of government funding on business R&D across 17 OECD nations over the last few decades. It describes the historical effectiveness of policy instruments such as tax incentives and direct public funding, and provides several recommendations for more effective R&D policy design. Continue Reading …