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 …
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 …
Based on empirical evidence and ideas from experimental and behavioural economics, economist Dan Ariely describes common tendencies that lead individuals and groups towards patterns of irrationality and decision making traps, in his book Predictably Irrational: The Hidden Forces That Shape Our Decisions. Continue Reading …
Market failures occur when the allocation of goods and services by markets are not efficient and lead to net social welfare loss. Economist Peter Abelson describes, in his book Public Economics – Principles and Practice, common causes of market failure and solutions governments might take in response. Continue Reading …
A business’ sustainability over the long term depends on its capacity to maintain an enduring competitive advantage. Frameworks such as The Morningstar Economic Moat Rating provide a helpful starting point to think about sources of long term competitive advantage in business. Continue Reading …
Harvard Economist Michael E. Porter’s work on competition, strategy and value chains in the 70s and 80s still hold relevance to this day as a tool to analyse competition intensity, industry attractiveness and business profitability. A useful starting point for all business students and professionals. Continue Reading …