How financial distress drives firms into the arms of organised crime
Evidence from Italian businesses whose revenues collapsed during lockdown illustrates how the mafia operates as a predatory lender of last resort, stepping in when a firm’s financial foundations begin to fail. The state must provide fast, accessible liquidity to beat the criminals at their own game.
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The hidden costs of wildfire pollution for health and education
Breathing smoke from wildfires doesn’t just send people to hospital: it leaves lasting scars on human development. Public health responses should focus on the most vulnerable, including pregnant women; while investing in fire prevention today will save money on healthcare and education tomorrow.
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The family connection: how socio-emotional skills pass down generations
The social and emotional skills that help us to manage stress, work with others and navigate challenges are as important as cognitive abilities in influencing later life outcomes. New research reveals the extent to which they are being shaped through children’s experiences from the earliest years.
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Defeating malaria: how local volunteers and shopkeepers help save lives
Training local volunteers and medicine shopkeepers can help to reduce the risk of mortality from malaria in lower-income countries. Investment in hospitals naturally remains vital, but boosting capacity at local level – particularly in the quality of local public clinics – will save lives.
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How aggregate and individual shocks combine to shape household incomes
How important are the ups and downs of the economy for individual families? Personal setbacks have more permanent effects on households’ lifetime earnings than a general economic downturn. But macroeconomic shocks are still critical because they set the stage on which microeconomic shocks play out.
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Immigration, jobs and wages: why places and people tell different stories
Immigration affects places and people in different ways. Evidence from a natural experiment in Germany in the early 1990s shows that regional employment may fall while most workers keep their jobs. Adjustment costs often fall on those entering the labour market rather than those already employed.
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Labour market tightness and recent inflation: learning the right lessons
The inflation of 2021-23 has reignited debate among economists about the impact of labour market tightness on inflationary pressures – a connection long known as the Phillips curve. New research warns that assuming a nonlinear relationship could lead to significant policy mis-steps.
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The illusion of choice: multibrand price dispersion in modern retail
Modern consumers are used to a flood of options whenever they are shopping for something. Whether it’s car insurance or fizzy drinks, there are endless brands from which to choose. But many brands are owned by the same firms – and this affects how suppliers set their prices.
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