A new discussion paper by Adelina Gschwandtner and Michael Burton, KDPE 1702, January 2017.
The main objective of the present project is to analyse and understand what drives purchases of organic food in the UK and how much UK consumers are willing to pay for organic food products so that new perspectives can be developed and proposed to policy makers. This is important since there has been almost no recent formal economic analysis of the willingness to pay for organic products in the UK. The existing organic markets in the UK allow us to understand real purchasing behaviour but this is limited to current market conditions. Stated preferences techniques allow to explore new, yet inexistent aspects of the market in a controlled, experimental way. However, by far the strongest criticism brought to stated preferences techniques is the hypothetical bias derived from the hypothetical nature of the experiment. The present study is intending to resolve this issue by collecting data on both real and hypothetical behaviour.
A new discussion paper by Alex Klein and Guy Tchuente, KDPE 1701, December 2016.
This paper offers an identification strategy in the situation when researchers work with crosssectional data, face unobserved heterogeneity causing endogeneity problem, lack instrumental variables and, on top of it, face sample selection problem. To accomplish that, we take advantage of recent advances of spatial econometrics. What motives us to consider the case of cross-sectional data which data generating process involves sample selection and seemingly unsolvable problem of endogeneity and no instrumental variables?
A new discussion paper by Miguel A. León-Ledesma and Mathan Satchi, KDPE 1614, November 2016.
In macroeconomics, we typically model production by specifying a ‘production function,’ which tells us how much output is produced with given quantities of the ‘factors of production,’ often taken simply as capital and labour. Factor shares refer to the proportion of the income earned by production that goes to each factor, so the labour share is the proportion of this income that is earned by workers through supplying labour. There are various issues with how we measure factor shares, but a key aspect of what is known as ‘balanced growth’ is the idea that as income grows over long periods of time, the labour share remains approximately constant.
A study from the School of Economics has found that an increase in Asian elderly population share will significantly lower economic growth due to decreased labour participation in the region.
The results of the study implies that governments facing population ageing have a challenging task to provide social security and public services for the aged while maintaining economic growth. This fundamental issue is common across all economies around the world.
Many Asian economies are currently faced with the challenge of rapidly ageing population, which can be harmful to the economy in the long run. The study, conducted by Dr Keisuke Otsu and Dr Katsuyuki Shibayama from the University’s School of Economics with the results published in Asian Development Review, analysed the effects of projected population ageing on potential growth in Asian economies over the period 2015–2050 using quantitative assessment.