The carriers must pay attention to their passport validity An erection of a harder border between the UK and EU involves not only changes in customs work, fees and tax calculations, and other money-related issues, but a lot of small details, many of which were previously ignored by carriers, and which are now critically important. For example, the validity periods of ID documents and the amount of time UK drivers can spend in the EU, and vice versa, are of newfound significance. As stated on the official UK government website, UK drivers that enter the EU must have a passport that is valid for at least six months. Every UK citizen can stay in the EU without a visa on condition that he/she does not spend more than 90 days in the EU over a 180-day period. This means that carriers must calculate how many days their employees (drivers) have spent in the EU at any given time. The 90 day countdown begins as soon as you cross the UK/EU border. From the 1st of October citizens of EU, EEZ countries and Switzerland will need to present their passports to enter the UK. ID cards will no longer be considered a valid travel document. The number of documents required to cross the UK/EU border has also significantly increased. From the 1st of January the movement of goods across the UK/EU border in either direction are considered exports and imports simultaneously. This means that all documents related to transport and the movement of goods from one area to another must be filled and completed. Free movement of goods has ended. This will create a huge amount of bureaucracy for British ports and airports since all cargo from Europe goes through them. Goods from the UK, on the other hand, can go in various directions, distributing the workload of document inspection. <11an>limit:2;categories:jobs|courses|conferences;disciplines:Politics|International Economics (JEL F)</11an> Same old story During the first days of January, it quickly became clear that none of the parties involved with the ports were completely prepared for the new order – institutions, cargo operators, carriers, export/import companies. Nobody. Preparation for the 1st of January was also hindered by the chaos at the UK/EU border in December, which was caused by the EU closing its borders with the UK due to the fear of spreading the new COVID-19 type. Businesses felt the consequences of Brexit in the first week on January: food deliveries were delayed due to issues with customs documents, logistics companies stopped sending goods, while some retailers found out that their delivery chains were obsolete. After ten years in close cooperation, UK and EU carriers were suddenly forced to learn a lot in a very short time. In early January, The New York Times reported that the European delivery company, DPD, was going to stop sending packages from the UK to the EU for a period to give it time to figure out new cross-border systems. At the same time, the retailer Marks & Spencer announced that due to the border crossing issues, its stores in Paris would not receive deliveries of fresh salad and other food items from the UK, apologising to their customers for the limited availability of goods. First to crack were the seafood (crustacean) producers and suppliers. On 18th of January, they came to Westminster to protest the additional bureaucracy caused by BREXIT, which had caused delays of cargo deliveries to EU, and which had resulted in a lot of damaged goods and significant losses. Producers of crustaceans have calculated that delivery to clients now requires 48+ hours, while previously it took only 24 hours. According to Venture Seafood director, Garry Hodgson, representatives of his company were delayed for 30 hours in France because they were obliged to fill out 400 forms for one cargo of crustaceans on its way to Spain. Before Brexit, most deliveries required a document of supply, but now each shipment needs an export health certificate, fishing certificate, customs permit, and safety documents. In addition, any carrier of mixed or combined cargo can be held at the border due to a single box having improper documentation. Because of this the importers have started to pay additional fees for empty trucks to ensure that goods travelling through the Eurotunnel are delivered on time. This has resulted in partially empty trucks moving between countries. It’s also increased the number of trucks on the roads, because two or even three trucks now transport a cargo that could previously have been transported by a single truck. While waiting for the chaos on the borders to subside, many EU carriers reduced or even stopped their deliveries to the UK, a moratorium that resulted in many empty trucks returning from the UK to the EU. The companies were willing to pay for the trucks to return empty because it was cheaper than getting stuck for 4-5 days in another country. How will Brexit affect the shipping industry? Right now, no one can confidently answer this question. Experts are busy studying data and making estimates, and unfortunately none are optimistic. For example, a survey by the Chartered Institute of Procurement & Supply shows that in January drivers spent 3-5% more time at the UK border than before Brexit. The experts warn that the delays will likely only increase and that this will create real problems both for the carriers and manufacturers of fresh products. Survey results also showed that more than a half of UK companies that import or export goods to EU had delayed deliveries in January, mainly, due to additional paperwork. Transporeon, a German logistics software company, tracks cargo truck movement in Europe in real time. The Live Tracker summarizes GPS data and is able to show how much time trucks spend in lines at each point of crossing. The executive director of the company Stephan Sieberi stated that: “a truck has value only if it moves”. If every day 10,000 trucks spend an additional hour at the border, it means that 10,000 working hours have been lost. “Waiting time increase by 5-10% in the port of Dover is a significant indicator for the logistics services providers”, said Sieberi. In the middle of February the BBC stated that the British government thought the worst had passed and that the total cargo flow had reached the levels of the previous year. BBC data showed that outgoing train traffic in the beginning of February was at 98% compared to traffic in February last year, while incoming land vehicle traffic reached 99% compared to last year. Approximately 80-90% of trucks arrive at the border prepared for the new situation. In January and February, truck traffic from Kent to the EU, including ferries and through Eurotunnel, reached 67% and 82% compared to the 2020. Ferry companies, however, do not keep track of empty returning trucks, and some estimates suggested that approximately 50% of trucks returning to the EU were empty. French sources speculated that as much as 60% of the returning trucks could have been empty. Before Brexit, the number of empty trucks never exceeded 30%. It is obvious that the changes brought about by Brexit and the unusual effects of COVID-19 will continue to affect the shipping industry, making it imperative that all parties pay close attention to the current guidelines, and ensure that they are ready to make quick decisions should things change. Entrepreneur, Rolands Peterson, is an economic, transport and logistics expert. He pays particular attention to developments in the global economy.
2021 began not only with an understanding that COVID-19 restrictions would likely continue for some time, but that the effects of Brexit – Great Britain leaving European Union – would also start to be felt. That Brexit would bring about changes to the UK/EU border was known for months. And yet, when it happened, most of the carriers and state institutions were not ready, creating (or rather, extending) the chaos in ports and near the Eurotunnel.
Urban, Rural and Transportation Economics (JEL R)
Best Open Source Software for Economics Graphing and Plotting
1. Gnuplot Gnuplot is one of the best-established graphing tools, popular among intermediate and advanced users. Available cross-platform for Windows, Linux and Mac, its primary function is the visualization of mathematical data and functions. Over the years its functions have diversified so that it is now usable for the visual display of all kinds of scientific data, in both two-and three-dimensional plots. It is a command line program, so some amount of programming knowledge is required. However, having been in use for many years (since 1986), there is extensive documentation and advice on using the program which can be found online. 2. Matplotlib Matplotlib is another popular option for economists looking for tools to aid in the visual display of their results. It is a 2D Python library for plotting which produces particularly attractive figures, and the library can be used in Python scripts or be run on web application serves. This library is a good choice for anyone familiar with the statistical software package Matlab, as the Matplotlib interface is similar, making it easy to learn. The default style of the graphs produced by Matplotlib is attractive and polished, requiring less tweaking than those produced by Gnuplot. However, Matplotlib works only with Python, whereas Gnuplot can work with other programming languages too. 3. R R is already popular among statisticians and scientists working in data-heavy fields for statistical analysis in addition to graphing. It uses a command-line interface, thus requiring some degree of technical ability, but once mastered is a powerful tool for data analysis and can be very beneficial for an economist. There are a wide range of graph types available in both 2D and 3D formats, which is beneficial for finding the perfect format for displaying your data. However, while the default graph style produced by R is functional, it requires some work to make the produced graphs look more elegant. R is an excellent plotting option for the economist working with a large data set, particularly if they are already familiar with the programming language. If you want to take advantage of the advanced features of plotting with R but are intimidated by the command line, then R Commander can be a great help – it is a graphical user interface for R which is designed to be accessible for novices. 4. Gephi A further possibility is Gephi, an visualization tool for the exploration of networks and complex systems. It is most known as a social network analysis tool for visualising the social relationships between individuals, but it also has applications for economic research. Alongside delivering network metrics and calculations, Gephi offers a high degree of design control enabling users to build high quality graphics suitable for publication and poster display. As it is Java-based it runs cross-platform, and although it requires some technical knowledge of network analysis, the user experience is fairly accessible. An alternative tool for these kinds of data sets is NodeXL, an open-source plug-in for Microsoft Excel which allows the analysis of social network data with Excel, and is more suitable for beginners. Each of these tools can help you to communicate your data more effectively by presenting it in an attractive and carefully-designed format. Software ranges from the more technical, command-line based tools like Gnuplot and R, which are very powerful but require more extensive technical knowledge, to GUI-based programs like R Commander or NodeXL which are more accessible to novice users. Also important to consider is the type of data which you wish to visualize; large data sets are better suited to heavy-duty tools like R, whereas social network data is better served by more specific tools like Gephi or NodeXL. From this wide range of tools you can find the perfect open-source solution for plotting and graphing in order to make your data shine.
A great way to make your presentations or papers slick and memorable is to improve your graphs and diagrams. The standard graphs produced by software such as Excel or SPSS can convey the required information, but tend to lack style as these tools have limited customisation options. Other software exists for the singular purpose of configuring your diagrams, including many which are open-source and hence freely available. As an economist, it's important to make sure your graphs are looking as good as possible, as they are essential for winning over and keeping the attention of your audience.
Econometrics, Statistics and Quantitative Methods (JEL C)
1. Apply broadly, but only if you’re really interested When applying to college many people send out dozens of applications, including ones to universities they aren't even particularly interested in attending. While at undergraduate level these 'safety' schools might be a good idea in order to guarantee you'll get an education (although there's also an argument for taking another year out to improve your grades and reapplying), at the graduate level this isn't necessarily the best strategy. <11an>limit:3;categories:PhD Programs;disciplines:Economics</11an> Yes, applying to only your two dream departments is an extreme gamble, but it's probably better to put your all into applying to those places, as well as maybe one or two backups you'd still be happy to attend, in order to ensure your most important applications get the lion's share of your attention and time. That way you can really put your heart into your applications, which will shine through and likely help land you a spot in the program of your dreams. Moreover, if you’re actually interested in a program at the outset, you’re much more likely to be able to maintain that momentum and ultimately work your way through to a completed dissertation. If you attend a school you don't particularly like, and especially if your program isn't exactly what you wanted to do, you may find yourself getting demotivated down the line, and a PhD is big jump up in terms of work quantity and self-discipline than even a Master's degree. 2. Spend ample time on your dissertation proposal Although a thoroughly researched dissertation proposal is a key component of many applications, it remains conspicuously absent from others. Yet, whether you are asked to include a 10-page proposal or simply a paragraph highlighting your specific interests, this description is often the crux of what separates an admitted PhD candidate from one who is left wondering why they were rejected. The proposal you write in your application will possibly have little to do with the research you will actually conduct - many change their research several times over the first few months, and your tutor will help you narrow down and improve your topic. That being said, the clarity of focus you have in your proposal, along with the reasons you give for wanting to work with specific professors, can make all the difference. So don't be fooled into writing off the thesis proposal element of your application because you know your research topic will change anyway. Instead, use this as a chance to show how passionate and committed you are to your discipline while also showing off your great writing, research and organizational skills, as well as showing that you're familiar with the research interests of your chosen tutors. Speaking of which... 3. Familiarize yourself with the professors you’d like to work with Even if your PhD application does not specifically ask you to list professors with whom you would like to work, an awareness of the research being done in the department to which you are applying and a readiness to talk about how you could add to it will give you a firm leg up in case you are called in for an interview. Additionally, drawing connections between your own research interests and the work of specific professors demonstrates that you have done your homework – it shows you are familiar with the department and can offer a detailed argument for why you would be a good addition to it. A good tactic is to get in touch with potential advisors before you apply. This can be a great idea because they can give you tips on your proposal before you formally apply, and can tell you before whether they'd be interested in attaching themselves to your research. Remember, you'll be working a lot with your tutor in order to make this the best piece of academic writing you've ever done, so they have to be excited by it too. Saying this, some programs specifically ask you not to contact anyone individually until you’ve already made the cut, so look at the application guidelines carefully and choose to send that email or not based on what they suggest. 4. Highlight relevant qualifications and don’t dwell on those that aren’t Many young people's academic and career journeys do not follow a perfectly straight trajectory. And this is fine. In fact, it can arguably add to the breadth of your knowledge base and make you a more well-rounded candidate than those who have only gained experience in one specific area. Thus, in your application, do not apologize for a hodgepodge CV. Instead, draw a map for the admissions team by highlighting the interconnectedness of various positions you have held, while simply omitting those that may not be relevant. There is no reason to explain past jobs or studies that are not related to your current interests, and doing so might draw attention away from all of your other qualifications that make you a great candidate. Yet, if questions arise then be prepared to discuss your winding path and offer sincere and confident reasons for why you’ve made the choices you have – giving emphasis to how they’ve shaped your current interests, and how they can (if they can) help you moving forward. 5. Thoroughly prepare for your interview If you make it through to an interview, be it in person or via Skype or telephone, make sure you have a clear understanding of what type of interview it will be and prepare yourself accordingly. Don’t be afraid to ask for as many details as possible – will it be a one-on-one interview or will you be addressing a group of professors? Should you prepare a presentation or is it more of a casual conversation? The more information you have beforehand the better you can prepare, thus minimizing the risk of being caught off guard. Moreover, once you’re in the interview you should also come prepared with more detailed questions, both to show your interest in the program and to help you figure out if it really is a good fit for you. And don't forget the obvious stuff: dress smartly, be polite (thank yous and pleased to meet yous), and remember a smile can go a long way.
Whether you are applying to a structured program like those typically found in the United States, an independent research PhD like those in much of Europe and elsewhere, or a hybrid of the two, the first step is to gather your thoughts (and paperwork) in an effort to convince the admissions board that you are the most qualified and motivated candidate for the position. Regardless of location or discipline, your application will almost certainly include a personal statement, transcripts, copies of your previous degrees and letters of recommendation. If you plan to start your PhD application this autumn, download our free guide "How to successfully apply to a PhD in Economics".
Will a PhD help my career? Will doing a PhD boost your career options? Absolutely, but with some caveats. If you want to work in academia, for example in research or as a professor, then doing a PhD is essential. Having a PhD can also help you to land jobs in industry, for example working as an analyst or as an actuary. When applying for these jobs, your PhD is both a demonstration of your prior experience in running a research project, and an example of your motivation and self-discipline. Our Salary Report found, however, that while the gender pay gap is closing for PhD positions, women still earn less than men, and for senior positions, there still exists a 'glass ceiling' for women, meaning they are less likely to be chosen for these roles. Yes, the direction of travel may be the right one, but we are clearly still travelling with the handbrake on. A PhD is also not essential for every job. If you know that you want to work in a field such as finance or accounting, then real-world job experience can be just as important when applying for jobs as academic qualifications. And there are some employers who will be put off by a candidate with a PhD who is applying for entry-level jobs, finding them to be overqualified. It's not a good idea to do a PhD just because you think it will help you generally to get a better job in the long run, as this may not be the case. The time you spend studying is time that could be spent accruing work experience. So before you make your decision really consider the specific role that you want or the field in which you want to work, and then see if a PhD would be helpful for that career path. <11an>limit:3;categories:PhD Programs;disciplines:Economics</11an> How can I fund a PhD? One of the most important issues to consider when thinking about a possible PhD is the question of funding. As working on a PhD is generally a full-time job, you will need funding to cover your living costs and other expenses. There are a number of sources of funding: you might get funding directly from the research budget of your supervisor, or the department in which you do your PhD; you might get funding from your university; or you might get funding from an external body such as the Wellcome Trust. If you are pursuing a PhD abroad, for example if you are Dutch but are doing a PhD in Germany, then you may be able to apply for funding from both the Dutch and German governmental bodies, doubling your chance of successfully receiving funding. You might also get partial funding from several of these sources. Some students are so keen to do a PhD that they wish to start even if they do not have any funding. This, however, is not advisable. The amount of work which a PhD requires is immense (at least three years full time, often more), and agreeing to work this much for no payment is a recipe for disaster. If you can't get funding now, it's better to wait and apply for more funding rather than risking starting your project unfunded. Is a PhD the right option for me? You should also think about whether doing a PhD would suit you personally. Those who are interested in doing a PhD tend to be those who are academically inclined and who already enjoyed – hopefully thoroughly – doing a Bachelor's degree and a Master's degree. Those are certainly good qualities to have; however, a PhD is a rather different kettle of fish. A PhD requires you to come up with your own ideas and to work independently – essentially running your own research project. This is terrific for someone who values independence and exploratory learning, but can be a difficult adjustment for those who are more used to having strict guidelines and structure imposed on to them. For this reason, it's common for people to wait a few years after completing their graduate degree before doing a PhD, so they can gain some experience in managing their own time. Another requirement for PhD students is a degree of self-confidence and assurance about both their work and themselves. Academia is a demanding environment and students often complain that supervisors give more negative than positive feedback. To be successful in a PhD, you'll need to be able to take criticism without becoming discouraged. It's also not uncommon for supervisors to be extremely demanding, so in order to preserve your life outside of work, you'll need to be an effective self-advocate. This is another area in which a few years of work experience can help to build up your confidence, making you a better PhD candidate in the process. Is your PhD project right for you? Sometimes people can get caught up in the idea of doing a PhD without really thinking about whether they should study the particular project they have chosen. There are generally two ways to choose a PhD project: either you apply for a specific role as a PhD student in an existing lab or group, in which case your project will be largely assigned to you by your supervisor; or you come up with your own project idea and submit this proposal to a grad school or department. The first path is safer in that it involves a project which has been chosen by people with a great deal of experience of PhDs and the field, so you can be confident that the project is realistically achievable and will contribute usefully to the field. The second path allows you to follow your own passions and to investigate your own ideas, but is riskier because there is a greater chance that your project is too big to complete in a reasonable time frame, that your experiment might not work, or that the project might not be perceived as useful by others in the field. Take time to consider not only if you want to do a PhD in general, but also whether you want to do this specific PhD. Get as much feedback as you can from supervisors, friends doing PhDs, former teachers, and mentors about your project ideas and whether they would make an achievable and worthwhile project. Finally, be realistic about your interests and strengths – if you've never liked statistics then doing a project heavily based on data analysis is unlikely to make you happy. Ideally your project should be a subject that inspires and excites you, and to which you feel like you could make a valuable contribution with your ideas. Are the institution, department, and supervisors right for your PhD project? Another big factor in how your PhD will pan out is the environment in which you will work. Doing a PhD can be isolating and you need people around you who will support and help you out. Some academic groups are small and insular, others are large and diverse, but in either case you need to be among people who understand your work and will give you the time that you need. It's hard to know in advance if your supervisor will be difficult, but you can get a good idea by talking to other PhD students who have them as a supervisor and listening to their experiences. Many PhD students will be happy to share this information with you if you are thinking about applying to the same supervisor. Finally, don't feel as if your only opportunity to do a PhD is the program that you apply to first. You can apply to several programs at the same time and see which interview process excites you the most, or you can wait until you find the right supervisor or institution which will make your experience more enjoyable.
Taking the step towards doing a PhD is a big decision, and one that shouldn't be made without the proper research and consideration. Once taken, however, it can be an extremely valuable experience and one that can set you up nicely in the future. Here we consider some of the things you should definitely think about before taking the plunge.
Increasingly sidelined, the one-time arbiter of sensible, down-to-earth politics, has seen its stock plummet and the centre-ground left barren, sparsely populated by members of a fading political establishment. As Mehdi Hasan has observed, ‘labels like 'centrist' and 'moderate,' which common sense tells us should reflect the views of a majority… have come to be applied to those who represent minority interests and opinions”. But why? How exactly has this come to pass? And where, if anywhere, does the future of the centre lie? <11an>limit:2;categories:jobs|courses|conferences;disciplines:Politics</11an> A very brief and incomplete history Like the monikers ‘left’ and ‘right’, the ‘centre’, as a political orientation, finds its roots in the French Revolution and the seating arrangements of the short-lived National Assembly. It designated those that sat between the high clergy and wealthy on the right of the chair, and the lower clergy and poorer folks on the left. It was there that contrasting ideas met, were mediated, and (sometimes) found synthesis. In the centuries that followed, the ‘centre’ was sporadically appropriated as both a signifier and epithet. To a modern, anglophone ear, though, it’s mostly associated with the politics of the 1950s and 90s. President Dwight Eisenhowever was among its most strident torchbearers, committed to a politics he called ‘the middle ground’: socially-minded, yet limited governance that despised communism. Riding on his coattails, was UK Prime Minister, Harold Macmillan, whose political career was grounded in a similar set of principles he codified in, ‘The Middle Way’. Positioned between ‘socialism and pure capitalism’, it was underpinned by the enduring belief that ‘quiet, calm deliberation disentangles every knot’. This period of supremacy abruptly ended in the 1960s, when centrism fell victim to the political convulsions that swept the west. In a context of counterculture and revolution, the considered nature for which it was known, looked staid and out of touch. Chastened, its proponents retreated from power, licking their wounds. They would remain out of favour for some time, forced to watch as on both sides of the Atlantic high-office swapped between left and right. Margaret Thatcher would remind centrists of their diminished status, goading them ‘for abandoning all beliefs, principles, values and policies’. The emergence, in the 90s, of ‘third way’ advocates, Bill Clinton and Tony Blair, marked the triumphant return and the advent of centrism’s most celebrated period. Despite hailing from nominally leftist parties, both ran on economic platforms promising public spending limits and balanced budgets. Barack Obama and David Cameron - their ideological successors - would later take up the mantle. So what does it actually stand for? The centre has always been defined by what it’s in the centre of, and, thus, has shifted in response to broader political trends. In the early 60s, it was against the anti-war left; in the 80s it opposed Thatcher; and now, in 2020, it can't stand Trump. It knows well what it isn't; and less well what it is. This can - and often does - manifest in negatively framed messaging ill-suited for the catchy soundbites required of modern campaigning. Joe Biden’s election promise to ‘return to normalcy’, is illustrative - devoid of a forward vision, it’s failing to get pulses racing. In spite of its unfixed state, centrism has become a byword for moderation and triangulation, of working across the aisle. Its recent proponents have typically been fiscally conservative, socially liberal, committed to open borders on trade, and invariably hard-lined on law and order. The scholar, Bo Winegard, has attempted, more explicitly, to codify its core tenets in his ‘Centrist Manifesto’, claiming that ‘political progress is achieved by caution, temperance and compromise’, and urging against ‘dramatic alterations that [could] upset a reasonably successful social order’ - the words ‘reasonably successful’ doing a lot of work. Which brings us to the pertinent question: in a world of Trump, Brexit, and rising temperatures what role, if any, can this amalgam of principles expect to play? Centrism today In the clamoring of current discourse, centrists stake claim to the only escape route away from the bickering and bellicosity. Uniquely positioned above the petty point-scoring and time-wasting agendas of the extremes, and guided, according to Winegard, by a mantra of ‘careful consideration and slow implementation’, they alone can ensure a return to sensible politics. Abstractly, and without context, this offer sounds persuasive, indeed, it feels close to common sense. Applied to the current moment, however, and its shortcomings come into focus. Firstly, the things in which centrism traffics - moderation, incremental change, etc. - lose their appeal in crises. For in hard times like these, it can be difficult to separate suggestions of pragmatic tinkering from attempts to preserve the status quo. And to many the status quo is part of the crisis - it’s complicit. Insisting on the existence of moral equivalences on all sides - a core centrist belief central to compromise - has also drawn ire for being a privileged position available only to those insulated from the sharp-end of inequality and the climate crisis. Without this protection - that growing numbers are also deprived - it follows that their calls for change would be far more urgent. Consequently, assurance is increasingly found in pledges that acknowledge the scale of what is faced, however extreme, and commit to decisive, transformative measures. Calls to ‘drain the swamp’ and demands for ‘medicare for all’ speak to this feeling, and have gained traction at opposite ends of the spectrum because they accept the gravity of people’s concerns and promise to tackle them head-on. Whether its widespread political alienation or concerns over healthcare, the language, and implied commitment, sound appropriate in scope. This is what centrism runs into time and again. On today’s biggest questions - generational indebtedness, housing crises, spiralling inequality, job insecurity - questions that threaten opportunity, livelihoods, lives even, it’s proposals sound insufficient in scale. How, for instance, does the politics of moderation propose to shift the US$1 trillion debt from the shoulders of American millennials? Is it even possible for the ‘slow implementation’ of anything to address the rampant inequality that’s dividing communities? And what of the most important question of all: climate breakdown? The threat posed by the climate is existential and can only be navigated through radical action, as part of a long-term vision - this is roundly accepted. With the stakes so perilously high, relying on a political tradition steeped in a culture of compromise may well be foolhardy. For the planet to survive in any habitable form overhaul is needed, an overhaul of energy, of transport systems, of consumption. Despite its flaws, the Green New Deal (GND) was an attempt at this, legislation proportionate to the size of the problem, climate policy informed by scientists demands for ‘war-like’ mobilisation. Many centrists, however, balked at the idea, Nancy Pelosi called it ‘too broad’ and the Blue Dog Coalition of Democrats would rather prohibit a federal deficit running in peacetime, making the GND, and a whole host of redistributive investment programs, impossible. A choice beckons Amidst political polarisation and burning of the planet, the future of centrism is unsure. Its failure to formulate coherent responses to the biggest issues of the day has left it flirting with irrelevance, and representing, as Hasan commented, only minority interests and opinions. To guarantee its future, it has two options: double-down and continue to force old methods on new issues, or recognise its self-imposed limitations and think bigger. Now is not the time for caution, but for assertive action. To miss this opportunity is to perish. Header Image Credit: ChameleonsEye on Shutterstock (licensed image - editorial use - copyright)
The current moment is one defined by crisis. It can be found everywhere: in the climate, economy, mental health, even in democracy. It’s so ubiquitous as to have almost become the new norm. Amid the chaos, politics has struggled to keep up, its landscape is in permanent shift, its rulebook long thrown away. New formations have emerged, metastasized, sometimes died, and occasionally taken over - developments often surprising and hard to make sense of. What’s clear, though, is that polarisation has set in. From Bernie to Bolsanaro, from Modi to Make America Great Again, the voices now heard, the names that fill newspaper columns, are reminding us just how wide the political spectrum is. For many, it's a terrifying prospect, for others, it’s a thrilling and necessary reset. For the centre, as developments in the US and UK are showing, it may well spell death.
Public Economics & Economic Policy (JEL H)
Top Free Online Courses in Statistics and Data Analysis
1. Statistics with R Specialisation by Coursera (Duke University) Duration: 10 weeks Background needed: Basic math, no programming experience required. 2. Intro to Statistics by Udacity (Stanford University) Duration: 8 weeks Background needed: Introductory course, no experience required. 3. Statistical Learning by Stanford University Duration: 10 weeks Background needed: Basic knowledge of statistics, linear algebra, and computing. 4. Introduction to R by Leada Duration: Self Paced Background needed: Introductory course, no experience required. 5. Statistics: The Science of Decisions by Udacity (San Jose State University) Duration: Self Paced; approximately 4 months Background needed: Basic understanding of proportions (fractions, decimals, and percentages), negative numbers, basic algebra (solving equations), and exponents and square roots. 6. Introduction to Probability Theory by Saylor Duration: Self Paced Background needed: Completed courses in single-variable and multi-variable calculus, linear algebra, and differential equations, or equivalents. 7. Statistical Thinking for Data Science and Analytics by EDX (Columbia University) Duration: 5 weeks Background needed: Introductory course, no experience required. 8. Foundations of Data Analysis - Part 1: Statistics Using R by EDX (University of Texas) Duration: 6 weeks Background needed: Introductory course, no experience required. 9. Learning from Data - Caltech Duration: Self Paced Background needed: Introductory course, no experience required.
There are now more online learning options than ever, including courses which are - thank you Internet - absolutely free. Whether you want to prepare for your upcoming university course, need to pick up some extra skills to help with your job, or you are just interested in a subject and want to learn more, there will be an online course out there that can help you achieve your goals. Particularly during the COVID-19 pandemic, which has forced many of us to spend more time indoors and less time on campus or at evening classes, online courses can be a great way to carry on your education while minimising risk. Here are some of the best the internet has to offer in the area of statistics and data analysis.
Improving Fundamentals of Econometrics with Online Practice Tests
Getting to grips with the fundamentals of econometrics – where the field of economics meets and overlaps with the field of statistics – is often a daunting prospect. The age-old maxim that practice makes perfect is at least as applicable to econometrics as to any other skill. Reaching a useful level of proficiency requires a good deal, and likely several years, of hard graft and persistent learning. Indeed, students need to get their heads around the basics of data analysis and core statistical methods, as well as gain confidence in the use of more advanced panel data and regression models. For those teaching econometrics at university, the challenge often lies, like in many subjects, in helping students grasp the basics of the discipline. This has traditionally been achieved through the classic mixture of textbooks, set journal articles, seminars and lectures. But in a reality consisting of large class sizes and limited contact time between tutors and students, the extent to which a professor of econometrics can effectively monitor and support the progress of each student is often very restricted. And that is before even considering the added challenge presented by the 2020/21 (22,23...) global pandemic and the accompanying social and academic distancing. One professor at Hamburg University and Universität Potsdam, Thomas Siedler, has developed a new online resource to help econometrics lecturers and students alike tackle the challenge of practicing and gauging students’ progress in the fundamentals of econometrics. As an experienced economics lecturer with a focus on microeconometrics, Prof. Siedler initially developed mcEmpirics for students on his own econometrics courses at Hamburg University. After excellent feedback, in early 2020 he opened it up to anyone with access to the internet. As with most good ideas, the principle of mcEmpirics is simple. It offers a quiz-based format for students, with each test compiled from a pool of over 800 questions. These cover core econometrics topics, including questions about the statistics software package STATA, and questions based on key econometrics textbooks, with a focus on applied econometrics. Some of the undergraduate favourites covered include publications by Joshua Angrist & Jörn-Steffen Pischke, Jeffrey M Wooldridge, and James Stock & Mark Watson, names most econometrics teachers are familiar with. Recognition of the value of mcEmpirics for economics students came quickly, with funding being pledged in April 2020 by the Claussen-Simon Stiftung. This is a charitable funding body that supports creative and innovative projects in the areas of digitization, networking, and coaching. The aim of the funding is to help further quick and effective solutions for education, especially for remote learning and digital teaching, given the context of the Covid-19 pandemic. The foundation clearly saw mcEmpirics as a major and valuable contribution to this goal in the field of econometrics. Individual users can access all quizzes for a small fee (€2 to €3, approx. $2.50 - $3.50) per month, specifying which topic, keyword, or book chapter they would like to focus on. The site then generates a multiple-choice quiz. After attempting the quiz, users see explanations and suggestions for further reading so they can dig deeper and revise econometrics topics they struggled with. As it has gained popularity, mcEmpirics has expanded beyond its low-cost individual subscription model for students (although this is still available), offering an additional option for university economics departments. The new campus licences allow department heads or individual lecturers to integrate the practice tests on mcEmpirics into their own courses. It also enables econometrics tutors to develop customized tests based on their own curricula, using both the library of questions included, as well as adding their own. Additionally, the tool enables tutors to set deadlines and collect results centrally, download results and view the progress of individual students as the course proceeds. In this way, mcEmpirics is helping economics departments and professors of econometrics set their students meaningful tasks in the context of the difficult teaching landscape of a worldwide pandemic. Furthermore, the possibility to track progress through regular semi-formal assessments helps tutors gain an overview of how well their students are absorbing the material. Given the challenges for university departments and tutors in every subject, economics included, the prospect of a simple and accessible tool that can effectively support student learning is an appealing one indeed. As a final note, here at INOMICS we have had some fun playing with mcEmpirics over the past few weeks and comparing our results within the team. With a free-trial available (three free quizzes) it is certainly worth taking a few minutes to check it out.
A new initiative from Hamburg University, Universität Potsdam, and the Berlin School of Economics is helping economics students get ahead in the fundamentals of econometrics. The online tool mcEmpirics offers econometrics practice tests for students and is now being rolled out for whole economics departments with new campus-licenses. Especially with the challenges of remote teaching resulting from the ongoing global pandemic, mcEmpirics is gaining notice as a digital solution for economics students and teachers worldwide.
However simple sounding this choice may be, the question is, in fact, a tricky one. What’s even meant by each term? In the current polarised political climate, where both are bandied about and often weaponised, definitions have blurred. Deplorable in the eyes of some, the roadmap to utopia to others. Many are understandably confused. What should one make of being branded a champagne-sipping socialist? Or a capitalist pig? To make sense of it all, we have delineated each term as concisely as possible. Meaning next time the political barbs start flying, you will at least know how offended to be when one comes your way. <11an>limit:2;categories:jobs|courses|conferences;disciplines:General Economics (JEL A)</11an> Capitalism Of the myriad differences that distinguish capitalism from socialism it’s the level of government involvement in the economy that’s most fundamental. The capitalist model is premised on the private ownership of the means of production and property. The economy relies on open, free markets whose forces - the so-called ‘invisible hand’ - determine prices, incomes, wealth and the distribution of goods. In theory, unencumbered competition then drives innovation - in technology and practice - and encourages companies to make the best products they can as cheaply as possible. Over time, therefore, products improve in quality, while becoming cheaper. ‘Inefficient’ companies that fail to keep up, as in, their products are relatively expensive or poor in quality, are quickly usurped and go out of business. This allows resources to flow to other, more ‘efficient’ areas - a process Joseph Schumpeter called ‘creative destruction’. Meanwhile, the consumer is ensured maximum choice at the minimum price - again, in theory at least. And this is what lies at capitalism’s heart: the promise of meritocracy, of efficiency winning out. It underpins the whole system. This leads neatly to another key distinction from socialism: equality, or, in capitalism’s case, the lack thereof. Under capitalism, inequality is essential. It serves as a driving force, incentivising work with the lure of what could be. The spoils are there, you just need a good work ethic and the right ideas. And who decides which ideas are right? The market. It’s this cold, unbiased mechanism of relentless wheat-from-chaff-separation that drives economic development and moves us forward. Socialism A socialist economy, on the other hand, is driven by a vastly different logic. Through greater governmental intervention, it seeks to (re) allocate resources in a more egalitarian way. In part, this is ensured by state ownership– as opposed to individual– of the major means of production. As the main employer, the state can then determine wages, working hours, and preserve a certain standard of working conditions as it sees fit. Employment rates, thus, are not vulnerable to spasms of the market, meaning full employment can be guaranteed - in some socialist societies that is. In others, individual ownership of property and enterprise is permitted, but is accompanied by high taxes, especially on the rich, and tighter, more stringent government control, to help avoid exploitative practices from developing. To purists, this is no longer socialism, but rather a form of social democracy. In America, it’s tyranny. Where capitalism favours efficiency, socialism focuses on equality, a channeling of wealth from the rich to the poor, and the establishment and preservation of an even playing field - definitely in opportunity, and occasionally in outcome. This is achieved by various means including the state-led provision of healthcare, free at the point of use, price controls, higher taxes, and far more spending on public services. In practice In reality, most countries - even the US, the paragon of capitalist life - operate mixed economies, that is with economic elements of both capitalism and socialism. Therefore, the question playing out around the world is less a choice of one or the other, but more nuanced. Typically, it’s the pitting of greater public provision, in the form of healthcare, education and social security, typically funded by higher taxes (i.e socialist inclined policy), against tax cuts and a general retreat of the state out of the individual’s life (i.e free-market capitalist inclined policy). It's notable that in the majority of cases these proposals are made while accepting an overarching capitalist system. The extremes may be tweaked, but the fundamentals are normally left unquestioned. Header Image Credit: Stefan Malloch on Shutterstock (licensed image - copyright)
As claims go, Francis Fukuyama’s insistence that history’s run its course has aged rather badly. The ascent of China, the Great Recession, spiralling inequality across the West, and now COVID-19, have all, in their own way, undermined his notion that capitalist liberal democracy is the political endgame. If anything, political choice seems to be expanding. People are increasingly being offered the opportunity to continue with capitalism, occasionally of the nativist variety and sometimes strictly neoliberal, or, alternatively, to try a little socialism.
How COVID-19 has Affected Economists in the Global North and South
Overall, 36% of economists reported having been negatively affected by COVID professionally (excluding the turn to home-office), with 6% made redundant. Although this may be similar to comparable sectors, mapped geographically, the numbers tell another - depressingly familiar - story. Simply put, economists working in the Global South have suffered far higher levels of job loss, greater reductions in hours and salary, and have had more promotions postponed, than their Global North counterparts. The data is stark: 62% of economists in Africa, 56% in South Asia, and 42% in Caribbean, South & Central America, reported being negatively affected by the pandemic professionally, compared with just 23% in North America, and only 16% in Western Europe. Global inequality The International Labour Organisation’s (ILO) report ‘COVID-19 and the world of work’ makes it possible to place these figures among global labour market trends, and, thus, better understand the nuances of the economists’ experience. ILO research uses ‘working-hour losses’ as an aggregate indicator of COVID-19’s impact on the global labour market, and encompasses shorter hours, being employed but not working, being unemployed, and withdrawal from the labour force. With respect to the Global North/South divide, ILO data contains notable parallels to INOMICS’ survey, reporting that ‘lower-middle-income countries have been hardest hit’ and have endured ‘an estimated decline in working hours of 23.3% in the second quarter of the year’- the equivalent of 240 million full time jobs. This trend continued throughout the third quarter and is accounted for by greater prevalence of informal work, limited opportunities for teleworking, and general resource constraints. Unfortunately, because of unevenly distributed fiscal stimuli, its consequences are also set to worsen - the report expressing concern that ‘the estimated stimulus gap for low-income countries is less than 1% of the total value of the fiscal stimulus packages announced by high-income countries’. A diverging economic experience Where our results and the ILO’s report diverge, however, is among the regions in which employment disruption is at its most severe. For economists that is Africa and South Asia. But this bucks the global labour trend which has seen workers in Latin American and Caribbean countries worst affected, the region losing a full quarter of all working hours in the third quarter. In Central America alone, hours lost reached 30%. Moreover, ILO data reports that African continent sustained an 11.5% working hours loss in the third quarter, 3.5% more than Western Europe, and just 0.7% more than Northern Europe. Given that almost two thirds of economists in Africa reported being negatively affected by COVID, it would appear they are among the more disproportionally hit of the continent’s professions. Everything, though, remains in flux, making comprehensive analysis of COVID’s ongoing effect on the labour market a difficult process. With that said, INOMICS’ data, placed among that of the ILO, offers a glimpse of the regional discrepancy which underpins the economist’s experience, a discrepancy that, while fitting with larger trends, diverges in where job disruption is at its highest. It’s one that, here at INOMICS, we will continue to track. Complete Economics Salary Survey
The damage wrought by COVID, far from equalising, has been pointedly prejudiced. While the virus itself may struggle to differentiate between people, the world in which it operates has no such problem. Indeed, its structures have ensured COVID’s disruption of employment has fallen unevenly across regions - the experience of economists a case in point. Data from the forthcoming INOMICS’ Salary Report speaks to this directly, revealing the relationship between where one works - specifically in which country - and the level of vocational dislocation.
Economic Development, Innovation and Growth (JEL O)
<11an>limit:2;categories:jobs|courses|conferences;disciplines:General Economics (JEL A)|Health, Education, and Welfare (JEL I)</11an> Fortunately, most economists - particularly researchers - have been able to home-office throughout the crisis, transitioning with some ease, with much of their work already reliant solely on access to a computer. This is reflected by almost two thirds of economists reporting that, besides the migration home, they’ve experienced no change to their work. In the words of one: ‘it’s all remained the same’. This, however, cannot be said of teachers, for whom the transition to online learning, while mostly possible, has invariably been a bumpy road. Capturing the prevailing mood, teachers described E-teaching as ‘difficult, time-consuming and boring’, bemoaned their lack of ‘technical help’, and spoke of increased ‘inefficiency’ that had led to ‘an increased workload’. Students mirrored this frustration, though for different reasons. They cited reduced tutor contact hours as a disruptive influence, and were also dismayed by the closure of libraries. For many, though, it’s the future that is the greatest cause of concern. The scarcity of job opportunities was reported multiple times as a primary consequence of the pandemic, a concern expressed often by those on the verge of graduation, or early in their careers. This development will be especially worrisome for those straddled with enormous student loan debt (American student loan debt stands $1.5 trillion) who now face an increasingly precarious future. The prospect of which, according to testimonies from this cohort, has prompted increases in ‘mental stress’, ‘anxiety’, and a fear of perpetual joblessness, all compounded by knowledge that, in certain areas, the worst of the pandemic could be yet to come. The demand for diminishing work was also noted to have negatively affected worker power, empowering the employer. Articulating this emerging reality, one economist predicted that ‘labor struggles for fair pay [would] continue in the long term’, while an economics PhD relayed, in slightly more dramatic terms, that labor relations at their workplace ‘were destroyed’. Another frequent story was that of ‘delayed promotions’, almost 10% of survey participants reporting a promotion postponed as a result of the pandemic. Epitomising this experience, one researcher explained that his promotion was ‘postponed because my research has stalled. I cannot go for visiting research stays in universities and research institutes locally and internationally. And without research, my work has been made redundant as I now do mostly teaching, lecturing and administrative work online from home.’ Such disillusion was not uncommon. A sizable number have also lost their jobs, around 6% of survey participants, and the prospect of this number increasing is having a significant effect, many noting a pervading ‘atmosphere of uncertainty’, aptly captured by one economist who spoke of the looming ‘threat of future redundancies’ that hovered over his workplace. Put in perspective, though, economics has, by-and-large, been able to work on through, placing it among the luckier industries. The discipline can also be both proud of the work it’s continued to produce and the role it’s assumed responding to the crisis. There’s little doubt - in the face of the pandemic economists have risen to the challenge. Complete Economics Salary Survey
That the world of work has radically changed we know, we see it before our eyes: kitchens have replaced offices; pajamas, suits; and housemates often now fill the space previously occupied by colleagues. But how have these changes - and others - been felt by economists around the world? Through a textual analysis undertaken in the INOMICS Salary Survey, we answer that question and, in doing so, paint an anecdotal picture of economists’ COVID experience.
Why you should be using a multi-channel marketing approach
Multi-channel marketing campaigns allow institutions to increase conversion rates by interacting with potential candidates (students, professors and researchers) at different stages of their decision process, using the best channel for that stage. For example, a candidate who has already visited your institution website is more likely to respond positively to a direct email campaign, while a young candidate who has not yet heard of your university/centre/company is more responsive to meeting representatives at a recruitment fair. Additionally, the investment in a multi-channel campaign is more controlled and reduces the risk of overspending on one channel. To be effective with a multi-channel campaign, it is necessary to set up goals, have a consistent message across the channels and implement a detailed system of analysis to be able to measure the return on investment from each channel in terms of quality of candidates, lead management and enrolments. Benefits of Multi-Channel Campaigns Better understanding of potential candidates thanks to better feedback: By using different channels, your organization can collect feedback and experience from different types of candidates. Additionally, platforms like social media are more likely to incentivize prospective candidates to communicate directly with your team, ask questions and contribute with ideas that will increase the value of your institution. Higher brand exposure: Looking for a new job or enrolling in a study program is a decision that is not taken overnight; on the contrary, it requires time and deep thinking. By advertising your opportunity directly on job boards or study program aggregators you will be targeting candidates who have taken a decision to make a change in their life or career. However, you are missing out on the opportunity to make an impression on passive candidates, not yet actively looking for your opportunity. Social media, blogs, apps, etc. can give you access to these passive candidates who will turn back to your institution once they feel ready to enrol. As a side effect you may also get an ambassador for your institution who will tell friends and colleagues about your opportunities. You can check here additional 10 tips to build a University brand online. Better budget distribution: A prospective student/employee who uses social media as their main job/program finding tool will not have the same profile as somebody who prefers online listings or email newsletters. Once your organization can identify the most effective channels to attract the most suitable candidates, you can then optimize your campaigns. Challenges of Multi-Channel Campaigns Effectiveness of your message: In a multi-channel campaign you do not only need consistency in your message but also to keep it effective. Regardless of the channel you use, the message should inspire people to take action and apply to your position, study program or conference. Detailed planned campaigns: The responsibilities with a multi-channel campaign do not stop once the message is out in different channels. Upon launching the campaigns, touch points with your prospective candidates need to be coordinated along with the setting-up of mini reminder campaigns per channel. Remember that the decision of enrolling in a new course or applying for a new job requires more than a one-time communication with the candidate. Results attribution: Previously we mentioned the need to have a detailed analysis system to measure the return on investment from each channel. It seems straight-forward to set up goals and a couple of key metrics per channel, however in realilty, to know what really triggers each enrolment can take time or need a personal follow-up. Depending on your budget, you may need to decide on approximate KPIs or to invest real time and effort knowing which channels brought your students, professors and researchers. Recommendation to Start Your Multi-Channel Recruitment Campaign Consolidate your database of leads: In order to manage your leads properly, it is important to have a single database of prospective candidates with the same information filled-in in their profiles. You could also add the source of the leads, in order to manage the conversion rates per source. There are multiple CRM systems available in the recruitment market; you just need to choose the right one according to your budget and expectations. Choose the marketing channels that you would like to use: The best way to choose the right marketing channels for your campaign starts with segmenting your market. By analyzing the profile of the ideal student for your program or ideal candidate for your position, and disclosing all touching points where your target audience interacts and consumes information, will help you to deliver your message effectively. Take into account lifestyles, hobbies, work routine of your target group. In this way you will find channels that offer a higher impact than traditional media. To explore more effective ways to target millennials, feel free to read further on how to market universities to a digital generation. Create consistency of messages and experience across all channels: The consistency of your message is highly important. Remember that regardless of the channel (social media, online catalogues, and email marketing, traditional media) you are competing for space in the mind of your target audience. Identify which are the selling points of your institution/program/job and which are the must-have attributes expected by your candidates. Be careful measuring results of your campaign: We have talked about the importance of measuring results and the challenge that this presents. The trick is to decide in advance the must-have and nice-to-have metrics. Decide which are the mandatory KPIs for decision-making and organize your team to collect them. For those metrics that are not listed in your mandatory KPIs, prepare yourself to step back in case they demand a lot of time and resources from your team Designing and implementing a multi-channel campaign can be a project that demands time and effort from you and your recruitment team. It may also seem to be expensive and it often requires resources that are not easily available at your institution. At INOMICS we have designed a special promotion to help your institution implement a successful multi-channel campaign. Thanks to our experience from last spring with the summer schools, we decided to implement our knowledge in content marketing, social media promotion and online listing to promote masters, PhDs, courses and online learning offers. From past campaigns, our customers attributed around 10% of the campaign results to our multichannel offer. If you are interested in booking a multichannel campaign for your program, you can contact us at info@inomics.com. Check INOMICS Multi-channel Offer
Multi-channel marketing is the practice of interacting with customers by using a combination of direct and indirect communication channels such as websites, online and offline catalogues, email, direct mail, mobile, messaging apps, social media, etc. Multi-channel marketing has been heavily used mostly in the retail industry by enabling customers to buy a product or service by using the communication channel of their preference. However this approach can also be very effective in the recruitment industry.
<11an>limit:2;categories:jobs|courses|conferences;disciplines:Microeconomics (JEL D)</11an> Principles of Microeconomics - N. Gregory Mankiw Now in its seventh edition, this textbook on microeconomics is one of the most widely-used and respected. Offering an in-depth overview of all of the fundamentals of the microeconomic discipline, it’s also a surprisingly accessible read for a dense university textbook. It’s arranged in short chapters, Mankiw himself is a highly respected economist, and it’s a great starting point even for laypeople. Freakonomics: A Rogue Economist Explains the Hidden Side of Everything - Steven Levitt and Stephen J. Dubner No list of microeconomics books would be complete without the extremely famous, and very enjoyable, Freakonomics. Levitt and Dubner’s book, a collection of articles, focuses on the application of economic methods to everyday things. There are chapters on cheating, drug dealing, the KKK, and even naming children, among other things. It was such a huge success it spawned a blog, a radio show, a sequel, and even a film. Prices and Quantities: Fundamentals of Microeconomics - Rakesh V. Vohra This book attempts to change up exactly how microeconomics is taught, by beginning with the most basic principles which only involve one variable and steadily getting more complicated. What this achieves is that the mathematics required to fully grasp microeconomics is simplified, in that the calculus steadily gets harder as the book progresses. Vohra also uses real-world examples to make concepts easier to grasp, making this a great addition to your microeconomics library. Thinking, Fast and Slow - Daniel Kahneman In short a summary of Kahneman’s research over the course of several decades of highly successful economics work, Thinking, Fast and Slow is much more than that. Really, it’s a book about how human judgment can’t really be trusted - and how knowing this information can change how you see your own decision-making processes and change your life. The book has sold over one million copies and is also an important behavioural economics book. Microeconomics - Paul Krugman and Robin Wells Much the same as the duo’s book on macroeconomics, Krugman and Wells’ book explaining the fundamentals of microeconomics is accessible, nicely written, and covers most everything you’ll need to know about the discipline. It tries its best not to use jargon when explaining its concepts, and uses plenty of real-world examples to make them as easy to understand as possible. This is a great book if you want to get away from the dense language and confusing jargon of economics and easily learn about microeconomics which, after all, isn’t rocket science!
Anyone in the midst of their undergraduate degree will know of the two main tenets of economics: micro and macro. If you’re looking for the best macroeconomic books, you can head over to our article on that topic, because in this piece, we’ll be going through some of the most useful and interesting microeconomic books which will help you get up to speed on all of the fundamentals of the discipline. And remember, these books aren’t only for students - laypeople who are interested in the subject can also benefit from picking up one of these tomes. And what better time to do some reading than when stuck inside during the pandemic?
Check out our job listings <11an>limit:2;categories:jobs|courses|conferences;disciplines:Macroeconomics and Monetary Economics (JEL E)</11an> 1. Macroeconomics: Principles, Problems, and Policies - Campbell McDonnell, Stanley Brue, Sean Flynn Perhaps the most essential book on macroeconomics you will ever need, this textbook is often all you need to pass an undergraduate course in the discipline. Weighing in at nearly 600 pages, it is an extremely comprehensive textbook which gives in-depth information on all of the major aspects of macroeconomic theory. While it deals with complex themes and mathematics, it is written in an accessible style, making it great for beginners but compiling enough information to be useful for advanced learners too. 2. The Future of Capitalism: Facing the New Anxieties - Paul Collier In this important book, renowned economist Collier highlights the multiple failings of capitalism and how these have affected the relationships between different groups in society. Drawing from his own experiences from working-class Sheffield to uber-academic Oxford, he then tries to show us how we can fix capitalism - and make a better future for us all. 3. Macroeconomics - Paul Krugman, Robin Wells A slightly less advanced work but one written with the purpose of explaining economics in an easy to understand way, with examples and using the storytelling for which Krugman is best known, Macroeconomics is a great introduction to the core principles of the discipline. The mathematical side of economics is toned down massively to make the ideas easier to comprehend, and much of the book is related to real-world events, specifically the 2008 financial crisis, about which Krugman wrote extensively. Still, the book is comprehensive at nearly 600 pages, and is a perfect supplement to the more mathematics-focused side of economics. 4. Gigged: The Gig Economy, the End of the Job, and the Future of Work - Sarah Kessler Kessler in this book outlines a neglected, or at least seldom thought-about, part of the economy: gig workers. A symptom of the digital era, the freelancer receives none of the benefits of full time work - like medical insurance or holiday days - but is able to pick their own hours and work the jobs they want to work - if they can find them. Almost a social study, Kessler’s work follows multiple individuals doing various forms of gig economy work to answer the question of what our job markets, and economic system, will look like in the very near future. 5. The Willing World: Shaping and Sharing a Sustainable Global Prosperity - James Bacchus As climate change only gets worse and an environmental catastrophe looms, James Bacchus turns our attention back towards an idea that has only become less popular in recent times: globalisation. In The Willing World, though, Bacchus convincingly argues that the best way to solve the crisis - and to help fix our broken institutions - is through international institutions and global cooperation. The rules and regulations he argues must be put in place in order for us to start seeing our economies and our environment as one and the same must be legally binding, under an international rule of law, so to speak - and he outlines how this could be done.
If you’re currently in the throes of an undergrad degree in economics, or even if you’re just a layman looking to brush up on your macroeconomic knowledge, it’s essential you have the right literature to help you keep up to date. There are plenty of textbooks out there which purport to be the best way to get to grips with the discipline, but some are, naturally, better than others. On top of that, there are plenty of more popular economics books which deal with a specific topic in more detail. So without further ado, INOMICS brings you the list of the best books on macroeconomics.
Macroeconomics and Monetary Economics (JEL E)
Browse our finance economics job listings Investment banking Investment banking is a high pressure, high reward sort of job. It requires quick thinking, the ability to remain calm under pressure, and the ability to predict outcomes of complex systems. If this sounds appealing to you, then you could be suited to investment banking work. Such jobs are generally available in the financial centres of big cities like London or Frankfurt and tend to be in organisations which are quite formal and rigid in their structures – for example, you'd be expected to wear a suit, and there can be a rather competitive attitude between employees. It is also typical to work long hours and sometimes on the weekends. Some people will find this atmosphere stressful and off-putting, but people who thrive in a fast-paced environment may find it highly stimulating. <11an>limit:2;categories:jobs|courses|conferences;disciplines:Financial Economics (JEL G)</11an> Commercial banking In contrast to an investment bank, which generally provides services for the financial needs of large corporations, commercial banking is the sector which provides financial services such as deposits, loans, and basic investments for corporations or individuals. Possible jobs in commercial banking cover a wide range of specialities, such as relationship management, strategy, business development, and businesses analysis. These roles require strong people skills and the ability to manage employees or customers, so they are suited to people who know how to motivate others. Financial management Financial management refers to the planning, monitoring, and controlling of an organisation's monetary resources. Many organisations require financial management, from big businesses to small non-profits. As a job, it requires the ability to plan ahead and to stay on top of the many incoming and outgoing streams of revenue, meaning that it is suited to people who are highly organised and who can keep track of many things at once. Financial managers generally work with other high-level managers, but not necessarily with other economists or money people. So if you want to work as a financial manager in a smaller organisation, you'll need to be able to communicate clearly with non-experts who may not have much knowledge or experience in financial matters. Asset Management Asset management is a growing field which is potentially very lucrative. It is the making of investments on behalf of an individual or a company, in order to increase their total assets over time. Working in asset management requires you to make smart investments on behalf of your clients, and so built up their funds without risking too much. As well as the extensive knowledge of finance which you should gain from your financial economics degree, to be an asset manager you will also need strong quantitative skills as you will be digging through a large amount of data and possibly doing tasks like modelling which require statistical knowledge. As it is essentially a job proving a service, you will also need to be communicative and capable of managing clients and your staff. This work is suited to someone with a good head for numbers and a reasonable approach to risk, who isn't scared of moving around large amounts of money.
If you're working on a degree in economics with a specialisation in finance, or if you're considering doing such a course, then you might be wondering about the career options that it will open to you. Here are some of the top career paths for financial economists.
Perhaps a worse indictment, however, is that for many they never had much effect. They never came close to capturing their actual reality: the shortage of food, the fragmentation of community, the political alienation. While coping with these concerns, that the 1% had further increased their collective wealth by X trillion dollars was only ever background noise, a little salt on the wound. Statistics of this kind may sell newspapers, but they don’t capture experience. There's no let-up Alas, such is the prevalence of inequality, it’s at risk of defining our time. Among the Organisation for Economic Co-operation and Development (OECD) countries, it’s reached a record high, and economists see little sign of it abating. We now live in societies divided: the haves and have nots; those with opportunity and those denied; inhabitants of good, desirable areas, and the left-behind, the forgotten. In a moment in which fracturing communities need healing, inequality undermines any efforts, driving its big wedge into the ever-growing in between. Indeed, it’s only in the last 15 years, or so, that the full impact of these divisions have been assessed in earnest, and the array of inequality’s far-reaching effects laid bare. Some are not so easily identifiable, let alone quantifiable. And yet, an appreciation of them is essential if the true nature of inequality is to be understood. The reality beyond the money-oriented stats; inequality as experienced on-the-ground. Academics should be thanked for filling the void, as there now exists a robust body of research concerning the psychological effects of inequality, exploring, in particular, the trust it diminishes among individuals, and for institutions; the sense of community it erodes; and its links to growing political apathy. It’s these more insidious impacts, often obscured from popular view, that are of interest here – and it’s no exaggeration to say, they run deep. Solidarity on the wane Research by sociologists Marii Paskov and Caroline Dewilde has shown that living in unequal societies fundamentally changes the way people interact with those living around them, and, more broadly, how they perceive their community. Most notably, inter-societal solidarity – that is the willingness of individuals to try and improve the living conditions of other members of their community – suffers. As a general rule, the solidarity expressed by an individual is stronger ‘toward people with whom there is less social distance’, social distance describing the distance between different groups within the same society. Rather unhelpfully, inequality creates the opposite conditions, increasing the social, and also the mental space between community members. This distance limits the individual's ability to recognise the indirect benefits they, too, stand to enjoy by helping others. Thus, the notion that improving one person’s life benefits the whole of society is quickly forgotten. As the collective traits of generosity and compassion reduce, and social cohesion is damaged, the slippery slope is then further greased. The same study shows that declining solidarity is quickly reflected in dwindling public support for government-led redistribution, which, for communities facing high levels of inequality, is exactly what is most needed. Mistrust Economist Henrik Jordhal has looked further, linking greater social distance not just to estrangement, but to higher levels of mistrust. Specifically, the growing belief that other members of one’s community are fundamentally different from oneself. Exactly why this is so dangerous requires little imagination. Scepticism of others prevents the establishment of relationships, setting in motion a vicious cycle: social distance leads to mistrust which leads to further social distancing. Divisions are sown, consolidated, and communities fragment – often, to give things a volatile edge, on ethnic lines. Suspicion pervades the air. And sometimes, violence can follow. Moreover, the work of Professor Frank J Elgar has shown that societies with low levels of trust struggle to create the social supports and connections required to improve the health, and allow for the comfortable ageing, of its members – even outside of a welfare state context. Communities, in effect, err towards atomisation. An individual's welfare, regardless of age, is no longer considered a collective concern, and is seen solely as the responsibility of the individual – and, thus, Thatcher’s dream is realised. Political apathy Declining trust is not exclusive to individuals, but extends to people’s faith in institutions. In a research paper exploring the impact of inequality on values and attitudes, social scientist Frederic L Pryor found that people in less equal countries had less interest in politics, less confidence in their sitting parliament, and often bemoaned a societal lack of respect for authority. And his work is no outlier. Associate professor Frederick Solt argues in a similar vein. His analysis has demonstrated that higher levels of inequality ‘powerfully depress political interest, the frequency of political discussion, and participation in elections’. It’s hardly surprising either. For how is it possible to reconcile the optimistic, soundbite promises of politicians with the biting reality of a life stung by inequality? Successive governments from across the political spectrum have tried (some harder than others) and failed to arrest the trend toward inequality. As things deteriorate, disillusionment is, in many ways, the logical response. To make matters worse, the apathy Solt’s work observes applies to all but the most affluent. With their political intentions unperturbed, and enjoying an ever-growing slice of the economic pie, they are even better placed to set the political agenda, a privilege that can be – and often is – used to ring-fence wealth, exacerbating the original problem. Self-reinforcing And herein lies one of the larger problems. Inequality is reinforcing itself, it’s digging in. Those benefiting from its advance – maybe predictably – are unwilling to surrender their place at the top of the tree. But surrender they must. Before that happens, though, one prohibiting fallacy needs dispelling. Often observed in unequal societies is the collective belief that the wealthy elites (most of whom were in fact born rich), have risen to their position by virtue of superior talent, endeavour, and dedication rather than their birthright, while those languishing at the bottom owe their squalor to idleness and profligacy. This unhelpful internalisation, which attempts to legitimise the status quo, is patently untrue. Inequality stymies social mobility, and although just one of its many causes, its eradication would greatly improve the meritocratic nature of our unequal world – and make people happier. When former IMF chief, Christine Lagarde, is compelled to say that, ‘reducing excessive inequality is not just morally and politically correct, it is good economics’, you know it’s time to act – even the neoliberals are conceding it's gone too far. We must demand that our politicians address the growing gulf. For there is nothing natural or inevitable about the scale of inequality that we endure. It is a choice and it has to be reversed.
Inequality is rampant, we hardly need telling. Rarely does the print media pass up an opportunity to remind us. We stand inundated by an endless stream of statistics – on scales barely fathomable – each one more depressing than the last. For instance, it’s widely known that: ‘8% of humanity takes home 50% of global income’; that ‘the top 1% own 45% of the world’s wealth’; and how could we forget that ‘the 26 richest people on earth had the same net worth as the poorest half’. As shocking as these stats once were, they’re now dishearteningly familiar; we can recite them unassisted; we are numb to them.
Sudden Delivery Disruptions Due to Pandemic Will Not Go Away Any Time Soon
A couple of steps short of humanitarian disaster and incalculable damage to the environment At the end of the year around Christmas, up to 10,000 trucks headed from Dover to Calais via the Eurotunnel. When France suddenly closed its border with the UK, all trucks and their drivers that were still in Britain got stranded in the ports without any information about when they would be able to continue their journeys, and without food or access to essential hygiene facilities. Truck congestions near the ports in Kent were so bad that they even caused local traffic disturbances in some areas. Police were brought in to help organize the HGV queues. With the chaos difficult to contain, a possible humanitarian disaster in Kent seemed a real possibility. A huge number of people carrying various freights ranging from foodstuffs to goods and products were stuck, and some of the stranded products required special storage conditions available only at their destinations. Movement of unaccompanied freights (containers, etc.) was not stopped. However, how quickly the carriers regroup could transfer the freights stuck on the trucks to sea or air freight containers remained unclear, for the obstacles in their way were significant. Was it even possible given the trucks were tightly parked side by side in an open field inaccessible to other vehicles or reloading equipment? In any case, switching all land freights to sea or air freight transportation is impossible in a short time, as their capacities are limited. France remained resolute and stated that only drivers with a negative COVID-19 test would be allowed in. This meant that the UK were obliged to arrange mass testing very quickly, bringing in the army and fire service for the task. As a result, several thousands trucks crossed the Eurotunnel on December 25 alone. This created an additional load both on the tunnel and its servicing companies, and was undoubtedly a huge burden on the environment at both ends, owing to the large number of trucks and the huge amounts of exhaust gases that were generated. How prepared are countries for a sudden stop of deliveries? From the European perspective, the disruption of deliveries from Britain is no real disaster as there are other suppliers available. From the British perspective, on the other hand, no deliveries coming in from the continent is a real issue. Where will the necessary goods come from in the absence of long-term stocks? And how will Britain obtain goods that are not made in sufficient quantities domestically? The situation at the channel was further hampered by the timing – it's during Christmas season that trade companies generate their largest turnover. Ian Wright, chief executive of the British Food and Drink Federation (FDF)1, noted that France’s decision to block accompanied freight from the UK to the continent “can cause serious disruptions to fresh food supply.” While at the same time, the British Retail Consortium (BRC)2 stated that short-term haulage suspension would not stop retail trade, as retailers had created stocks. It seemed that nobody could predict how long the ban would last. The influential newspaper, The Guardian, estimated that around 3000 trucks carrying vegetables, flowers and plants come to the UK from Europe every day. According to The Guardian, it is the small shops, local markets, restaurants and catering companies, together which supply up to 40% of Britain's fruit and veg, that will most likely experience shortages of those foodstuffs should there be further problems. Analyzing the situation, theconversation.com3 journalists pointed out that Brexit risked just-in-time delivery systems, which were easily disrupted, and that leaving the EU, the source of a third of Britain's food, opened new risks. Brexit had not yet happened when the British first experienced what the disruptions of deliveries meant, even if only for a few days. “We were not surprised that concerns about food shortages emerged when France and over 40 countries imposed travel or truck movement bans on the UK,” theconversation.com noted. This situation has highlighted a problem which has not been openly or frequently enough discussed: whether we are prepared for a possible halting of logistics, due to COVID-19 or anything else (natural or technogenic disaster, etc.). I believe that it’s time for Britain, and others, to check their stocks of essential goods and develop plans B, C, etc. in case of any further unexpected supply disruptions. Risk assessment is more important than ever COVID-19 is still tearing the world apart. Although active vaccination campaigns have already begun, it is clear that this year we will not return to normal life as we have known it. Currently, there are no available data on the losses suffered by the UK haulers and exporters due to closure of the border with France and other countries. At the height of the crisis, haulers cautiously said that they would “account losses as precautionary measures to stop the spread of COVID-19”. But this is no long-term solution. Representatives of Nottingham-based, Baxter Freight, stated that the delays had cost the industry “millions of pounds an hour”, while director of Peterborough-based, Chiltern Distribution, Paul Jackson estimated that freight delays had cost the company “more than 5000 pounds a day”. During the crisis, the company had also looked into the possibility of redirecting freights via Belgium, but the earliest available supply corridor available was on January 4. The Scottish Seafood Association has also declared that it will demand compensation for the loss of profit from the Government, as during Christmas season their goods did not make it to their target markets in Europe. Jimmy Buchan, chief executive of the SSA, said that “people’s livelihoods and jobs are under threat”. Clearly, the events in the UK showed that every hauler must focus on potential risk analysis and crisis solutions more than ever before. Entrepreneur, Rolands Peterson, is an economic, transport and logistics expert. He pays particular attention to developments in the global economy. 1 Food and Drink Federation (FDF) 2 The British Retail Consortium (BRC) 3 https://theconversation.com/food-shortages-brexit-and-covid-19-how-britains-problems-converged-at-christmas-152412
At the end of 2020, chaos in the transport industry ensued after many European countries, including France, decided to ban all travel from the UK. The reason was the rapid outbreak of a new COVID-19 strand. Ultimately, the industry was not ready for such a turn of events. It is incredibly difficult to prepare for what came to pass: in the morning everything started as usual, and then a few hours later, all change and a 180-degree turn.
Browse our job listings for economics opportunities University courses on Innovation Economics Naturally, one of the best ways to learn about innovation economics is to study it as part of an academic course. Courses on innovation economics are most often found within economics departments, but they may also be taught in business schools because of the discipline's close links with entrepreneurship. You can see examples of some courses at highly regarded universities which specialise in innovation economics below: Econ 410b. The Economics of Innovation - Undergraduate course, Yale University, US Economics of Innovation - Undergraduate course, Nottingham University Business School, UK Economics of innovation - Master's course, École polytechnique fédérale de Lausanne, Switzerland LUBS2665 Economics of Innovation - “Broadening” module for undergraduate students, University of Leeds, UK Upcoming conference on Innovation Economics If you are more advanced in your career – for example, if you are a PhD student or postdoc with an interest in this field, then you might consider attending a conference. The biggest conference in the field is the annual “Conference on Innovation Economics”, an international conference. Obviously during the pandemic this may be difficult, but at some point the conference will begin again. Thirteenth Annual Conference on Innovation Economics Academic journals on Innovation Economics For senior researchers who need to know about the latest research, or for students who are trying to learn about the field, academic journals can be of great help, keeping you up to date with the latest findings in the field. Here are two journals which specialise in innovation economics: Economics of Innovation and New Technology Published by Taylor & Francis, this journal is “devoted to the theoretical and empirical analysis of the determinants and effects of innovation, new technology and technological knowledge. It aims to provide a bridge between different strands of literature and different contributions of economic theory and empirical economics.” Innovations – Journal Of Innovation Economics & Management (I-JIEM) Co-edited by the Research Network on Innovation (RRI) and De Boeck Université, this journal is focused on “discussion of new innovation strategies of firms and organization which have an impact on the economy and society.” Blogs on Innovation Economics For a more casual but very up-to-date read, you might want to check out blogs like the one below. This is written by a professor of innovation economics at UCL. Blog of Mariana Massucato, Professor in the Economics of Innovation and Public Value at University College London (UCL) Books on Innovation Economics Finally, the best way for a newcomer to the field to get a really good handle on it is to read a book on it. There will be plenty of in-depth information to give you an overview of the subject and to fill in any gaps in your understanding. Try either of the books below: Handbook of the Economics of Innovation Published by Elsevier and edited by Bronwyn H. Hall and Nathan Rosenberg, this book promises to 'examine the genesis of technological change and the ways we commercialize and diffuse it. Innovation Economics: The Race for Global Advantage Published by Yale University Press, and authored by Robert D. Atkinson and Stephen J. Ezell, this books discusses the global race for innovation advantage, suggesting that America has some catching up to do.
Innovation Economics is a branch of economics that focuses on (rather predictably) innovation, alongside the study of technology, knowledge, and entrepreneurship. It aims to understand where new ideas come from, and how we can put forward policies which will encourage the development of new ways of thinking. As many nations move away from an industrial model of production and towards a knowledge-based economy, the economics of innovation becomes more and more relevant. Although it is a fairly new field, innovation economics has risen to prominence quickly over the last few years. The following is a list of links and resources to help teach you and keep you up to date on all the latest developments in innovation economics.
Model assumptions<o:p></o:p> Bertrand competition is price competition in an oligopolistic market in which two or more firms produce a homogeneous good. Let's have a quick look at the main assumptions of the model:<o:p></o:p> Homogeneous good: The goods that are being produced and sold by competing firms are completely identical in the eyes of the consumers. Consumers have no preference for either of the firms and therefore buy from the firm offering the good at a lower price.<o:p></o:p> Competition in prices: In contrast to Cournot or Stackelberg competition, firms do not compete in quantities but in prices. This means that each firm sets the price for its product with the aim to maximize its own profit (and of course taking into account the prices set by competing firms).<o:p></o:p> A standard example for Bertrand competition is the market for gasoline. Petrol stations announce the price per liter and the consumers (drivers) decide at which petrol station they refuel their car. As petrol is a homogeneous good, most of the consumers will opt for the petrol station with the lowest price (of course, we must assume the petrol stations in question are located next to each other; otherwise convenience of location can cause these goods to be heterogeneous).<o:p></o:p> In the unique Nash equilibrium of the Bertrand competition model, firms set their prices equal to marginal costs and make no profit. Let us try to understand why this happens. Suppose there are two firms that produce a homogeneous good at constant marginal costs denoted by \(c\) and compete by simultaneously setting prices. Consumers buy from the firm charging the lower price, because they perceive the goods sold by the two firms as perfect substitutes. We will assume that the demand is split equally if firms charge the same price. The profit of firm \(i\) is given by \(\pi_{i}=(p_{i}-c)D_{i}(p_{i},p_{j})\) if there are no fixed costs, where \(D_{i}(p_{i},p_{j})\) is the demand faced by firm \(i\) if firm \(i\) charges price \(p_{i}\) and firm \(j\) charges price \(p_{j}\). The demand \(D_{i}(p_{i},p_{j})\) faced by firm \(i\) depends on the prices of both firms: If firm \(i\) charges a higher price than firm \(j\) (\(p_{i}>p_{j}\)) all consumers buy from firm \(j\), firm \(i\) has no demand and makes a profit of zero. If firm \(j\) charges a higher price then firm \(i\) (\(p_{j}>p_{i}\)) all consumers buy from firm \(i\) and firm \(i\) makes a profit of \(\pi_{i}=(p_{i}-c)D(p_{i})\). If firms \(i\) and \(j\) charge the same price (\(p_{i}=p_{j}\)) demand is split equally and firm \(i\) makes a profit of \(\pi_{i}=(p_{i}-c)\frac{1}{2}D(p_{i})\). So why will firms price at marginal costs in equilibrium? To understand this, suppose that two firms, let us call them Airbus (firm \(A\)) and Boeing (firm \(B\)) produce the same passenger plane at marginal costs equal to 10 million US Dollars. Customers buy from the firm charging the lower price (in this case, customers would include militaries, airlines, or airplane leasing companies that then lease airplanes to airlines). Let us say that Boeing charges a price above marginal costs, for example 50 million per plane (\(p_{B}=50\)). Now Airbus has three options. It can charge the same price, a higher price or a lower price. Clearly, a higher price does not make much sense, because all customers would remain with firm \(B\). Setting the same price means that the two firms share the demand equally and each firm makes a profit of \(\pi_{i}=\frac{(p-c)D(p_{i})}{2}=20D(p)\). If firm \(A\) charges a price below \(p_{B}\), the highest price it can charge to get all customers is a price that is a little bit lower than the one of firm \(B\), that is, 49.99 million US Dollars. Now Airbus obtains the entire demand and makes a profit of \(\pi_{A}=39.99D(p_{A})\). This profit is higher than the shared profit at equal prices if firm \(A\) charges a price only slightly below the price of firm \(B\). But of course, if Airbus charges a price slightly below the price of Boeing, then Boeing has no demand and makes a profit of zero. By charging a slightly lower price than Airbus it can obtain the entire demand and make a positive profit. Put differently, each firm wants to undercut the price of the rival to obtain the entire market demand. The incentive to undercut the rival only disappears when charging a lower price does not increase profits, which happens at a price equal to marginal costs. If the competitor prices at a level equal to marginal costs it does not make sense for the other firm to charge a higher or lower price. (At a higher price, the firm has no customers; at a price below marginal costs the firm makes a loss). In Bertrand competition, this result is independent of the number of firms, which means that even if there are only two firms in the market prices are equal to marginal costs and profits are zero (as in perfect competition). <11an>limit:3;categories:Master's Programs;disciplines:Economics</11an> Let’s have a look at the best response functions of symmetric firms in a Bertrand game as shown in the figure below. The blue line is the best response function of firm 2 for a given price \(p_{1}\) and the green line is the best response function of firm \(1\); \(p_{M}\) denotes the monopoly price. If you look closely you see that the green line is slightly below the 45-degree line (at points on the 45-degree line both firms charge the same price) if the price of firm 2 is above marginal costs and below the monopoly price. For any price charged by firm 2 in this interval, firm 1 will charge a price slightly below. The same is true for firm 2, of course. The best response functions are upward sloping because when a competitor has a higher price, it's optimal for the other firm to charge a price higher than their current price, but just below the competitor’s new high price. The intersection of the two lines (the red dot) represents the unique Nash equilibrium of the game. There is only one point at which firms are playing a mutual best response and no firm has an incentive to deviate given the price chosen by the competitor. As we can see in the figure, this is the point at which the price is equal to marginal costs. Figure 1: best response functions Further reading In Bertrand competition, when firms are not equally efficient - meaning one firm has lower marginal costs of production than the other firms - then the firm with the lowest marginal cost will obtain the entire demand and make a positive profit. Spulber shows in “Bertrand competition when rivals’ costs are unknown” (The Journal of Industrial Economics, 1995) that both firms price above marginal costs and obtain positive profits if the firms do not know the cost function of the competitor. Good to know In real-world markets, firms usually make positive profits. Why is that? First of all, firms rarely offer perfectly homogeneous goods. Even though the physical good that two firms are selling may be the same, goods produced or sold by different firms are not perceived as being identical (perfect substitutes) by consumers. Consumers may prefer to buy a good at a particular firm for a variety of reasons. For example, the firm's shop might have a more convenient location, consumers might be loyal to a specific brand, or perhaps different services are offered with the good. Second, in the classical Bertrand game firms interact only once. In real world markets, however, the same firms interact repeatedly day after day and may cooperate to maintain prices above marginal costs. Third, firms may be capacity constrained which means that they might not be able to produce enough to serve the entire market. As a consequence, the firm charging the higher price will not lose all customers to the competitor because the competitor cannot produce enough to serve the entire market. So, a firm in this situation can make a positive profit even if it charges a price above marginal costs. <o:p></o:p>
Bertrand competition is a model of competition in which two or more firms produce a homogenous good and compete in prices. Theoretically, this competition in prices, providing the goods are perfect substitutes, ends with the firms selling their goods at marginal costs and thus making zero profits. The result is also called the Bertrand paradox, named after the economist Joseph Bertrand (1822–1900).
COVID-19 and the Effect on Female Employment and the Gender Pay Gap
However, along with impressive scientific advances, have come huge economic and societal costs, many yet to be fully counted. In particular, lockdowns - and all their attendant economic woe - are reversing decades of progress made narrowing the gender pay gap and improving working conditions for women. Largely, this is because women are overrepresented in many of the industries hardest hit by societal shutdown, namely service, retail and entertainment. It’s estimated that 40% of all employed women worldwide, that is 510 million women, work in these sectors. Paid domestic workers - those working for private households - make for an illustrative example. According to ILO statistics, nearly 55 million domestic workers, two thirds of whom are women, have reported being significantly affected by job losses or reductions in working hours and earnings in the last few months alone. In the Global South, many of the problems women have faced stem from their greater reliance on informal employment, employment which often lacks protection by legal and regulatory frameworks, and therefore has left them more vulnerable to the ongoing economic downturn. The ILO’s Global Wage Report 2020/21 provides a broader context. Referring to data collected from over 150 countries, it estimates that, excluding wage subsidies, women globally lost 8.1% of their wages in the second quarter of 2020, compared to 5.4% for men. According to the report, this discrepancy is mainly accounted for by the difference in wage loss due to reduced workings hours: ‘while the average difference in wage bill losses caused by lay-offs was smaller than 0.4 percentage points between women and men, the average wage bill loss due to the drop in workings hours was 6.9% for women compared to 4.7% for men’. Turning to the field of economics, the INOMICS Salary Survey shows that the economists’ experience is not entirely faithful to these broader trends. Of the almost 2000 participants, 38% of male economists reported that their position had been negatively affected by the pandemic, compared to 34% of their female colleagues. Unemployment rates, on the other hand, were more in sync with the ILO’s findings, 11% of female respondents reporting unemployment, compared to 7% of men since the start of the pandemic. It should be pointed out, though, that INOMICS’ data suggests unemployment was higher for female economists before the pandemic, which may account for some of the difference. Still, these numbers fail to tell the full story, and do not convey the broader impacts lockdown measures have had on the gendered division of labour. As the majority of domestic tasks disproportionately fall to women, many have found themselves increasingly stretched, burdened by homeschooling responsibilities, never-ending childcare, and countless other domestic responsibilities that ‘stay at home’ rulings have imposed. Touching on her personal experience, one female economist reported that she was ‘expected to achieve the same outcomes [by her employer] while working from home and homeschooling the children’, meaning her workload had actually increased during the pandemic. Of course, the situation is a developing one, subject to great change, and is contingent, in large part, on government responses which have varied enormously. INOMICS is keeping track, and will keep you updated, on all further developments. You can still fill out our salary survey for economists. Data filled in will be used for future reports. For our full salary report please visit our salary report page.
Less than a year on from COVID’s genome sequencing, vaccination programs are being rolled out around the world. And while the pandemic is far from over, it would appear we’re approaching its endgame, arriving there faster than anyone dared hope. The previous fastest ever vaccine to be developed was for Mumps - and that took four years.
Jobs for Economists in the Government: The Right Career to Consider?
Regardless of where you’re from, or where you’d like to work, however, every government employs economists, and it’s easy to argue that they’re needed now more than ever - though in the weird times of the pandemic, finding a government job may be more complicated. Ready for the search? Check out our job listings Security and Stability Traditionally, working for the government meant more job security than working in the private sector. While this may no longer be true across the board, it is still the case in many countries. In this post, we want to focus specifically on jobs within the government itself, not including public sector jobs in national banks or public universities, two areas where job security is much less concrete than previously thought. Looking beyond these two branches, the types of jobs available to economists are quite diverse. For instance, if you are a recent graduate looking for work, you should remember to think outside the box and look to governmental areas not exclusively connected with economics, such as the Patent and Trademark Office, the Department or Ministry of Transportation, Commerce, Labor, Health, Defense, or even the military. In a post a couple of years back, Tyler Cowen of Marginal Revolution examined the breakdown of economists across U.S. government departments, not including the Federal Reserve. Interestingly, he found that the Department of Agriculture was the second largest employer of economists after the Department of Labor. That’s a good bit of info to keep in mind when sending out applications! Moreover, many governments also offer traineeships or internships for recent graduates, which can be a great way to get your foot in the door while gaining experience. In the UK, there is a professional network called the Government Economic Service, which offers positions at all levels to UK citizens, EU citizens and others. Intergovernmental Agencies and Money While not every government has a coordinated core of economists, there are also many intergovernmental agencies to keep in mind. For example, the Organization for Economic Cooperation and Development (OECD)hires economists of all backgrounds and specializations to work on a wide range of issues. Within supranational governmental bodies, such as the European Union, there are also myriad departments looking for qualified economists. With institutes and branches across Europe, the opportunities for economists within the EU are quite vast. Furthermore, there’s salary to consider. In the U.S., economists employed by the federal government earned an average of $106,850 per year as of 2012, according to the Bureau of Labor Statistics. While such a substantial salary might not reflect the reality of every country, high-level economists do tend to receive hefty remuneration across the board, making government positions quite sought after and worth aiming for. Additionally, remember that in this day and age choosing a career is never a straight path. If you can’t imagine working in the government for your whole life, that doesn’t mean you shouldn’t apply for government jobs right now. There are plenty of incredibly successful people who started in government positions then went on to make an impact elsewhere. For instance, Sheryl Sandberg, who, prior to becoming the COO of Facebook and a world-renowned author, gained valuable experience working for the Secretary of the Treasury. Lastly, when searching listings for government jobs, remember to look at your country’s job portals as well as other platforms, including INOMICS. Sometimes bureaucratic sites lack regular updates, so it’s best to peruse other avenues as well to make sure you’ve seen everything out there.
When discussing jobs in the government, the type of work that comes to mind is most likely influenced by your particular background. In countries in which large segments of the economy are nationalized, it’s possible to become a civil servant in nearly any field. In other places, your options might be more limited.