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EOPP: Economic Organisation and Public Policy Programme

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News Archive 2007

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PSA Award
Sir Nicholas Stern awarded the Political Publication of the Year Award

Sir Nicholas Stern has been awarded the Political Publication of the Year award by the Political Studies Association’s (PSA) for the Stern Review on the Economics of Climate Change, commissioned by Gordon Brown, UK prime minister, and published in October 2006.This is the first time that the judges have awarded the Political Publication of the Year to a report.

For more details click here.


News Posted: 28 November 2007      [Back to the Top]

House of Lords Appointment
Professor Sir Nicholas Stern to be appointed to the House of Lords.

Professor Sir Nicholas Stern was appointed to the House of Lords as a non-party-political peer on Thursday, 18 October 2007, and and will be introduced into the House of Lords on 17 December, 2007


News Posted: 26 November 2007      [Back to the Top]

Conference
BREAD/CEPR Conference on Development Economics at LSE

The Centre for Economic Policy Research (CEPR) Development Economics Program and the Bureau for Research and Economic Analysis of Development (BREAD) are organizing a joint conference on 5th-6th October, 2007 at the London School of Economics. The conference will take place in R505 in STICERD, which is on the 5th floor of the Lionel Robbins Building.

For more information, see the website of the conference.


News Posted: 05 October 2007      [Back to the Top]

World Bank Conference
Lecture by Maitreesh Ghatak on 'Provision of Public Services by Non-state Actors'

Maitreesh Ghatak delivered a lecture on "The Provision of Public Services by Non-state Actors" at the World Bank's Annual Bank Conference on Development Economics (ABCDE) held at Bled, Slovenia in May 2007.

To watch video, click here.


News Posted: 12 September 2007      [Back to the Top]

Recent Publications
Tim Besley and Maitreesh Ghatak: Retailing public goods: The economics of corporate social responsibility

A paper by Tim Besley and Maitreesh Ghatak entitled 'Retailing public goods: The economics of corporate social responsibility' has been published in the Journal of Public Economics, Vol. 91, No. 9, p. 1645–1663, September 2007 [Lead article]. This paper explores the feasibility and desirability of Corporate Social Responsibility (CSR). The authors identify CSR with creation of public goods or curtailment of public bads. Using a model with profitmaximizing firms, the paper shows that there is a direct parallel between CSR and traditional models of private provision of public goods. Indeed, firms that use CSR will produce public goods at exactly the same level as predicted by the standard voluntary contribution equilibrium for public goods. The authors compare CSR with government provision and charitable provision, discussing when CSR by private for-profit firms could have a comparative advantage in dealing with public goods provision.

News Posted: 29 August 2007      [Back to the Top]

Call for Papers
CEPR/BREAD Conference on Development Economics

To be held at LSE 5th - 6th October 2007

Sponsored by: London School of Economics, EBRD and CEPR

Conference Location: R505, STICERD, LSE

Call for Papers:

The Centre for Economic Policy Research (CEPR) Development Economics Program and the Bureau for Research and Economic Analysis of Development (BREAD) will hold a joint conference on 5th-6th October, 2007 at the London School of Economics.

You are invited to submit a paper for the conference. Please submit your paper via email to both iput@cepr.org and Bread.conf@gmail.com The deadline for submissions is 20th August 2007.

All papers presented at the conference will be selected through this open submissions process. To leave ample time for discussion only a small number of papers will be selected for this 2 day conference and there will be no parallel sessions.

Papers will be selected by Robin Burgess (LSE and CEPR) and Esther Duflo (MIT and CEPR).

For enquiries about registration, travel and accommodation, please contact Ingrid Put at CEPR email: iput@cepr.org

News Posted: 16 July 2007      [Back to the Top]

Recent Publications
Maitreesh Ghatak (joint with Pranab Bardhan and Alexander Karaivanov): ''Wealth Inequality and Collective Action''

A paper by Maitreesh Ghatak (joint with Pranab Bardhan and Alexander Karaivanov) titled 'Wealth Inequality and Collective Action' has been published in the Journal of Public Economics, Vol. 91, No. 9, p. 1843–1874, September 2007. The authors analyze the effect of inequality in the distribution of endowment of a private input (briefly, wealth) that is complementary in production with a collective input on efficiency. The collective input is the outcome of a collective action problem (e.g., contribution to pure or impure public goods and extraction from common-property resources). In an environment where transactions costs prevent the efficient allocation of the private input across individuals, and the collective action problem is resolved in a decentralized manner, they characterize the optimal second-best distribution of wealth.They show that while efficiency increases with greater equality within the group of contributors and non-contributors, in some situations there is an optimal degree of inequality between the groups, thereby locating Olson’s original insight in a more general framework.

News Posted: 29 June 2007      [Back to the Top]

Recent Publications
Maitreesh Ghatak (joint with Massimo Morelli and Tomas Sjostrom): 'Entrepreneurial Talent, Occupational Choice, and Trickle Up Policies' Journal of Economic Theory, vol.137, no.1, November 2007

A paper by Maitreesh Ghatak (joint with Massimo Morelli and Tomas Sjostrom) entitled Entrepreneurial Talent, Occupational Choice, and Trickle Up Policies has been published in the Journal of Economic Theory, Volume 137, No. 1, November 2007. The authors study market inefficiencies and policy remedies when agents choose their occupations, and entrepreneurial talent is subject to private information. Untalented entrepreneurs depress the returns to entrepreneurship because of adverse selection. The severity of this problem depends on the outside option of entrepreneurs, which is working for wages. This links credit, product and labour markets. A rise in wages reduces the adverse selection problem. These multimarket interactions amplify productivity shocks and may generate multiple equilibria. If it is impossible to screen entrepreneurs then all agents unani mously support a tax on entrepreneurs that drives out the less talented ones. However, if screening is possible, e.g., if wealthy entrepreneurs can provide collateral for their loans, then wealthy entrepreneurs do not support surplus enhancing taxes.


News Posted: 29 June 2007      [Back to the Top]

Recent Publications
Oriana Bandiera: 'Contract Duration and Investment Incentives: Evidence from Land Tenancy Agreements' Journal of the European Economic Association, September 2007

A paper by Oriana Bandiera titled "Contract Duration and Investment Incentives: Evidence from Land Tenancy Agreements" has been published in Journal of the European Economic Association, September 2007. The paper analyses the empirical determinants of contract length, a key and yet neglected dimension of contractual structure. The author estimates contract length and contract type jointly using original data on tenancy agreements signed between 1870 and 1880 in the district of Siracusa, Italy. The findings indicate that the choice of contract length is driven by the need to provide incentives for non observable investment, taking into account transaction costs and imperfections in the credit markets that make incentive provision costly. The results also illustrate that since both length and the compensation scheme are used to provide incentives within the same contract, joint analysis is important for a correct interpretation of the evidence.


News Posted: 19 June 2007      [Back to the Top]

News Posted: 18 June 2007      [Back to the Top]

Recent Publications
Oriana Bandiera (joint with Iwan Barankay and Imran Rasul): 'Incentives for Managers and Inequality Among Workers: Evidence from a Firm-Level Experiment' Quarterly Journal of Economics Vol 122:2, May 2007

A paper by Oriana Bandiera (joint with Iwan Barankay and Imran Rasul), "Incentives for Managers and Inequality Among Workers; Evidence from a Firm-Level Experiment " has been published in the Quarterly Journal of Economics, vol.122, no.2, May 2007.

Abstract: The authors present evidence from a firm level experiment in which they engineered an exogenous change in managerial compensation from fixed wages to performance pay based on the average productivity of lower-tier workers. They find that the introduction of managerial performance pay raises both the mean and dispersion of worker productivity. Analysis of individual level productivity data shows that managers target their effort towards high ability workers, and the least able workers are less likely to be selected into employment.


News Posted: 18 June 2007      [Back to the Top]

Policy Papers
Maitreesh Ghatak (joint with Abhijit Banerjee, Pranab Bardhan, Kaushik Basu, Mrinal Datta-Chaudhuri, Ashok Guha, Mukul Majumdar, Dilip Mookherjee, and Debraj Ray): ''Beyond Nandigram: Industrialization in West Bengal''

Following the much-publicised peasant unrest over land acquisition for an automobile factory in Nandigram, a village in West Bengal, India, and subsequent police firings that resulted in loss of many lives, Maitreesh Ghatak and his co-authors have published an article entitled "Beyond Nandigram: Industrialization in West Bengal" in Economic and Political Weekly, where they claim that if one is to learn the right lessons from the tragedy of Nandigram, then it must be ensured that the government is involved in the land acquisition process and that one correctly deals with three sets of issues: the size and form of compensation, the eligibility for compensation and the credibility of the process.

News Posted: 28 April 2007      [Back to the Top]

Recent Publications
Andrea Prat (joint with Cremer and Luis Garicano): ''Language and Theory of the Firm'', Quarterly Journal of Economics 122(1): 373-407, February 2007

A paper by Andrea Prat (joint with Jacques Cremer and Luis Garicano) titled "Language and Theory of the Firm" has been published in the Quarterly Journal of Economics 122(1): 373-407, February 2007. The authors characterize efficient technical languages and study their interaction with the scope and structure of organizations. Efficient languages use precise words for frequent events and vague words for unusual ones. A broader organizational scope allows for more synergies to be captured, but reduces within-unit efficiency, since it requires a more generic language. A manager working as specialized translator may also be used to achieve between-unit coordination while maintaining separate languages. Their theory reconciles two recent well-documented phenomena within organizations: the recent increase in information centralization and the reduction in hierarchical centralization.

News Posted: 01 February 2007      [Back to the Top]

EOPP: Research Grant Awarded
Oriana Bandiera

Economic and Social Research Council Research Grant.

Grant awarded from 2007 to 2008

News Posted: 01 January 2007      [Back to the Top]

EOPP: Research Grant Awarded
Oriana Bandiera, Timothy Besley, Robin Burgess and Maitreesh Ghatak (with Paul Collier and Stefan Dercon)

Department for International Development: "Institutions, Growth and Poverty"

Grant awarded from 2007 to 2011

News Posted: 01 January 2007      [Back to the Top]

EOPP: Research Grant Awarded
Robin Burgess

Economic and Social Research Council: "Infrastructure and Development: Evidence from India and East Africa"

Grant awarded from 2007 to 2010


News Posted: 01 January 2007      [Back to the Top]