Will Your Job Disappear?

The double whammy of job‐displacing technological advance and wage‐deflating globalization has demoted the American middle class, even as the rich get richer from access to global markets and from their slice of profits from managing massive global financial flows. The specter of growing inequality is haunting free‐market capitalism as never before since the early days of the Industrial Revolution. What is happening? What is to be done? Top economists take a hard look at a hard reality.     

Why Do Municipalities Cooperate to Provide Local Public Services? An Empirical Analysis

Intermunicipal cooperation is being increasingly adopted in various countries as a part of local service delivery reforms. This article draws on survey data from Spain's municipalities to examine the reasons underpinning the decisions of local governments to engage in intermunicipal cooperation and privatisation. Our empirical analysis indicates that small municipalities prefer to rely on cooperation for reducing costs, while their larger counterparts prefer to privatise the delivery of services. By cooperating, scale economies can be achieved with lower transaction costs and fewer concerns for competition than is the case via private production.     

The State,Socialisation, and Private Schooling: When Will Governments Support Alternative Producers?

Understanding the institutional features that can improve learning outcomes and reduce inequality is a top priority for international and development organisations around the world. Economists appear to have a good case for support to non-governmental alternatives as suppliers of schooling. However, unlike other policy domains, freer international trade or privatisation, economists have been remarkably unsuccessful in promoting the adoption of this idea. We develop a general positive model of why governments typically produce schooling which introduces the key notion of the lack of verifiability of socialisation and instruction of beliefs, which makes third party contracting for socialisation problematic. We use the model to explain variations around the world in levels of private schooling. We also predict the circumstances in which efforts to promote the different alternatives to government production – like charter, voucher, and scholarship – are likely to be successful.