Economics Observatory | Questions and answers about coronavirus and the UK economy

Update: how is the war in Ukraine affecting global food prices?

The protracted conflict in Ukraine cannot keep food prices rising perpetually. Costs have started receding in the global market, as well as in several advanced economies. But food inflation persists in many developing countries, largely due to domestic challenges that go beyond the Russian invasion.

Science, technology & innovation

How can public investment in research improve UK economic performance?

Public investment in scientific endeavour is essential for the success of UK business and industry – and, more broadly, for a productive economy, a healthy society and a sustainable world. A report written early in the 2010s laid out the evidence on the central role of research for our future.

Families & households

How might house prices affect workers’ productivity in OECD economies?

Higher house prices may be partly to blame for the sluggish growth of labour productivity in the OECD countries in recent decades. The adverse impact seems to be less severe in more complex economies – those that produce a greater diversity of products based on specialised know-how.

Families & households

What are the effects of paid family leave programmes in the United States?

To compensate for the lack of national provision, nine US states plus the District of Columbia have launched their own paid family leave programmes, with four more in the works. Studies highlight the effects of these policies on health, fertility and employment, but there is still much to learn.

Science, technology & innovation

What might be the economic impact of AI tools like ChatGPT?

Generative artificial intelligence tools are changing the way we use the internet. Some people are concerned that such systems could replace countless jobs; others expect quick productivity gains. As with past technological innovations, change is likely to be less dramatic than the hype suggests.

MAGAZINE

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Digital technologies have had a profound effect on the production and consumption of creative goods and services – from archives to video games. They have also challenged how economists analyse the creative industries and beyond, with the growing importance of platforms and network effects.

Communicating economics

#studentviews: How can UK policy-makers stop young people from vaping?

The UK proposes to introduce an excise duty on e-cigarettes, with the primary goal being to reduce their consumption. The policy’s effectiveness will depend on whether the price increase is enough to deter people from buying these products – and whether an overall smoking ban is implemented.

Pensions, savings & investment

Should the state pension age go up in countries with ageing populations?

In the developing world, falling fertility and rising life expectancy are leading to ageing populations. This has big implications for public spending, including on pensions. In response, many countries are raising the state pension age and/or debating whether it should go up further.

Prices & interest rates

Why have insurance premiums gone up so much?

Higher insurance premiums for cars and homes are being driven by a mix of factors, including changing regulations, changing human behaviour and a changing climate. Insurers have to balance the need for adequate reserves for claims, maintained profitability and affordable coverage for consumers.

News

Looking forward, looking back

This is a bumper year for elections, with over 60 countries and around half the world’s population going to the polls. Economic researchers can play an important role in providing independent analysis and robust evidence to inform the decisions that voters make about their future political leaders.

Families & households

How can we tackle the UK’s housing crisis?

With high property prices, rising rents and sluggish rates of new-build, the UK is facing a crisis of housing affordability. A comprehensive strategy is urgently needed, one that’s joined up with other key areas of public policy, including taxation and investment in human capital.

Public spending, taxes & debt

What would be the effects of abolishing or reforming inheritance tax?

Inheritance taxes aim to raise revenue and reduce inequality of opportunity arising from differences in parental wealth. But current UK policy has little impact on social mobility. Scrapping the tax would benefit the wealthiest, while reforms could reduce unfairness and negative economic effects.

Attitudes, media & governance

How are geopolitical risks affecting the world economy?

Geopolitical risks posed by elections, polarisation and conflicts within and between states have inevitable knock-on effects on the economy, both globally and for individual countries. This year more than ever, managing these risks and shoring up institutions that promote stability are essential.

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