Economies are complex systems. Businesses are interlinked through fragmented supply-chains that connect diverse countries, regions and cities across the world. We help you understand this complexity and the role of tax and finance, innovation and infrastructure on economic development.
Hector Pollitt argues that there is great value in economic modelling results provided that the right sort of tool is used for the policy question in hand.
I’m writing in response to a recent blog for Climate Strategies by Katy Roelich. Katy’s blog covers the complexity of i…
Outdated theories, unrealistic assumptions… our understanding of international trade is skewed.
This latest blog by Hector Pollitt suggests that the ‘more is better’ assumption is too simplistic. In fact, he argues, the benefits of international trade are overplayed and it’s…
The concept of environmental tax reform is not new and is core to environmental economics, but is it compatible with Modern Monetary Theory?
Environmental taxes aim to raise revenues for government, while at the same time discouraging behaviour that damages the environment. Ex…
Unlike most other macroeconomic models, ours (E3ME) includes endogenous money as a core feature (including borrowing by government).
This difference is important because it allows us to best predict outcomes that might be encountered by our clients. Find out how…
We …
Hector Pollitt, explores: what is macroeconomic modelling? And why do we do it?
I am not a fan of economic models because they have all proven wrong.David Davis MP, Secretary of State for Exiting the EU, December 2017.
Is this the case? Is it reasonable to take this view?…
It is now widely acknowledged that decarbonisation will not be possible without putting a price on carbon. Some economists (and most modellers outside Cambridge Econometrics) even suggest that a carbon price would be sufficient to meet carbon targets.
But in the UK there is a …
It is nearly four years since the inception of the Northern Powerhouse. Has the performance gap between the Greater South East and the rest of England, the North-South divide, narrowed?
In short, no. Recent newspaper articles refer to the persistence of the gap between the nor…
In his second guest blogpost Ron Martin, Professor of Economic Geography, University of Cambridge explores whether the productivity of Britain’s northern cities would improve by substantially expanding their size, or seeking to merge them into a single very large city.
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How will increased robotisation affect income, production and consumption? Will society benefit from the transition to automation in the long-run? Are humans destined for redundancy and poverty?
In his second blogpost on this subject our Director, Hector Pollitt explains why e…
This blogpost is based on Chapter 5 of Cambridge Econometrics’ shortlisted Indigo Prize entry entitled: “Virtually ignored – how we’re failing to measure the 21st century economy”, by Sachin Babbar, Michael Lee, Richard Lewney & Jack Spencer.
Robin Crusoe is a nation…
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