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Microeconomic Insights

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Economy

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Microeconomic Insights

17.02.2024

Connecting to power: How political connections can reduce innovation | Microeconomic Insights

Recently, researchers and policymakers have become concerned about the growing dominance of large firms, declining business dynamism, and slower productivity growth in the US and other OECD member countries (Decker et al. 2016; De Loecker and Eeckhout 2018). At the same time, political “rent-seeking” has increased (Zingales 2012; Bessen 2016). In the research we summarize […]

Microeconomic Insights

20.02.2024

Informality, Consumption Taxes, and Redistribution | Microeconomic Insights

Rich countries achieve significant redistribution via broad-based income taxes, but the income tax base covers only a fraction of the income distribution in developing countries, due in part to enforceability constraints (Jensen, 2022). Instead, developing countries rely primarily on indirect consumption taxes to collect revenue, such as the value-added tax (VAT), which are perceived as […]

Microeconomic Insights

05.03.2024

The social safety net as a long-term investment | Microeconomic Insights

Social safety net programs are designed to help people with low incomes meet their food, housing, and healthcare needs. Dating to President Lyndon B. Johnson’s War on Poverty in the US, the objective of these programs is “not only to relieve the symptom of poverty, but to cure it and, above all, to prevent it.” […]

Microeconomic Insights

17.05.2024

Beyond Health: Nonhealth Risk and the Value of Disability Insurance | Microeconomic Insights

In the United States, the Social Security Disability Insurance and Supplemental Security Income programs together provide access to health insurance and $200 billion annually in cash benefits to nearly 13 million Americans. This support is provided primarily as assistance for people who cannot work because of severe health conditions. Some have attributed the expansion of […]

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