London School of Economics and Political Science

About: London School of Economics and Political Science is a education organization based out in London, United Kingdom. It is known for research contribution in the topics: Politics & Population. The organization has 8759 authors who have published 35017 publications receiving 1436302 citations.

Money Illusion and Housing Frenzies

Abstract: A reduction in in‡ation can fuel run-ups in housing prices if people suer from money illusion For example, investors who decide whether to rent or buy a house simply comparing monthly rent and mortgage payments do not take into account that in‡ation lowers future real mortgage costs We decompose the price-rent ratio in a rational component -meant to capture proxy eect and risk premia -and an implied mispricing We …nd that in‡ation and nominal interest rates explain a large share of the time-series variation of the mispricing, and that the tilt eect is unlikely to rationalize this …nding

Taxation and International Migration of Superstars: Evidence from the European Football Market †

Abstract: We analyze the effects of top tax rates on international migration of football players in 14 European countries since 1985. Both country case studies and multinomial regressions show evidence of strong mobility responses to tax rates, with an elasticity of the number of foreign (domestic) players to the net-of-tax rate around one (around 0.15). We also find evidence of sorting effects (low taxes attract highability players who displace low-ability players) and displacement effects (low taxes on foreigners displace domestic players). Those results can be rationalized in a simple model of migration and taxation with rigid labor demand. (JEL F22, H24, H31, J44, J61, L83)

Neoliberalism as concept

Abstract: This paper is a critical exploration of the of the term neoliberalism. Drawing on a wide range of literature across the critical social sciences and with particular emphasis on the political economy of development, it evaluates the consequences of the term's proliferation and expanded usage since the 1980s. It advances a case that neoliberalism has become a deeply problematic and incoherent term that has multiple and contradictory meanings, and thus has diminished analytical value. In addition, the paper also explores the one-sided, morally laden usage of the term by non-economists to describe economic phenomena, and the way that this serves to signify and reproduce the divide between economics and the rest of the social sciences.

Patents and Cumulative Innovation: Causal Evidence from the Courts*

Abstract: Cumulative innovation is central to economic growth. Do patent rights facilitate or impede such follow-on innovation? This paper studies the effect of removing patent protection through court invalidation on the subsequent research related to the focal patent, as measured by later citations. We exploit random allocation of judges at the U.S. Court of Appeal for the Federal Circuit to control for the endogeneity of patent invalidation. We find that patent invalidation leads to a 50 percent increase in subsequent citations to the focal patent, on average, but the impact is highly heterogeneous. Patent rights appear to block follow-on innovation only in the technology fields of computers, electronics and medical instruments. Moreover, the effect is entirely driven by invalidation of patents owned by large patentees that triggers entry of small innovators, suggesting that patents may impede the ‘democratization’ of innovation.