…distributional analysis is helpful. It helps inform the debate, and … shows how money is allocated by Government around the different income quintiles of society.
Wage inequality between men and women has split opinion in the UK after the Government last week announced that all large firms would have to publish the gap in average earnings between their male and female employees. In light of that debate, today’s HESA data on the pay of recent graduates is interesting. It shows that female graduates are slightly more likely than male graduates to be in work a year after graduating, but they earn considerably less.
Of course, that’s not necessarily a causal link Read more
I just heard that Seamus Hogan died unexpectedly last week. Seamus is one of the people I admired most and a role model for any young economist. He always had time to talk through any problem and help out, even for the greenest of young graduates. His loss will be keenly felt by all those who knew him.
The ONS finds that older people are far more trusting of others than the young, they just don’t trust the Government. Does this account for Churchill’s apocryphal line?
If a man is not a socialist by the time he is 20, he has no heart. If he is not a conservative by the time he is 40, he has no brain.
The first reckoning for any Budget is when the Office for Budget Responsibility releases its estimates of the fiscal and economic impact of the measures. The second is when the Chancellor appears in front of the Treasury Select Committee and explains the reasoning behind the Budget. George Osborne’s Summer Budget appearance happened yesterday and shed light on a number of his more controversial fiscal policies. This is my summary of his answers, presented without comment. Read more
A fascinating talk by psychologist, Dan Gilbert. Ten years old but worth watching if you haven’t seen it before.
The core point is that people get buyer’s remorse when choices are reversible and become increasingly unhappy with their decision. When choices are irreversible, endowment effects kick in and they become happier with their choice over time. Importantly, most people do not realise that this effect exists.
- Does this have implications for choice architecture? Would it be beneficial to make some choices irreversible to increase the utility gained from them?
- If people are unaware of the effect, will they under-utilise commitment mechanisms that make decisions irreversible?