Roads to Deeper European Integration

by Henrik Braconier and Mauro Pisu, Voxeu.org Despite substantial integration, national borders still provide a large obstacle to trade in Europe. This column shows that much of these ‘iceberg costs’ can be attributed to underdeveloped infrastructure, namely roads. Improving international roadways to the level of national ones could substantially raise gains to trade.

Seeking Truth of Inequality through Gini’s Way

Who Let the Gini Out? Searching for Sources of Inequality by Davide Furceri and Prakash Loungani, Voxeu.org Income inequality has been growing in many economies over the past two decades, and it is currently historically high. This column adds two new contributors to the popular explanations of increased inequality. Fiscal consolidations, especially those following the …

Why Hasn’t Japan’s Massive Government Debt Wreaked Havoc (Yet)?

by Charles Yuji Horioka, Takaaki Nomoto and Akiko Terada-Hagiwara Originally posted in Voxeu.org 21 January 2014 Japan’s sovereign debt-to-GDP ratio is higher than any country in Europe and more than twice the OECD average. This column explains why Japan’s massive government debt did not wreak havoc in the past. Robust domestic saving and a temporary …

It’s Time to Eliminate the US Corporate Income Tax

by Laurence J. Kotlikoff, Voxeu.org Though taxing corporations may be a political no-brainer, it may be a big economic mistake. This column discusses recent research showing that the tax is not paid primarily by rich corporate shareholders. They can, and do, move their capital away from countries that have high corporate rates. Eliminating the US …

Overcoming the Obstacles to International Macro Policy Coordination Is Hard

by Olivier Blanchard, Jonathan D Ostry and Atish R Ghosh, Voxeu.org The world has just been through a period of unprecedented macro policy activism. More is set to come as central banks exit unconventional policies, governments fix their fiscal positions, and financial regulations are reformed. These national policies have undeniable international spillovers. This column argues …