Business, Government & the International Economy

- 2021
- Working Paper
Most Individuals Prefer to Compromise among Competing Normative Principles of Taxation

By: Itai Sher and Matthew C. Weinzierl

We use a novel survey to gather direct and indirect evidence on how individuals reconcile their simultaneous support for opposing normative principles when forming their policy preferences. Our evidence suggests that, when choosing policy, a minority (approximately one-third) of individuals follow the recommendations of the principle they most strongly support, while the majority of individuals prefer, instead, to compromise. Those who compromise give multiple competing principles weights that roughly correspond to their relative levels of support for them.
- 2021
- Working Paper
Most Individuals Prefer to Compromise among Competing Normative Principles of Taxation

By: Itai Sher and Matthew C. Weinzierl

We use a novel survey to gather direct and indirect evidence on how individuals reconcile their simultaneous support for opposing normative principles when forming their policy preferences. Our evidence suggests that, when choosing policy, a minority (approximately one-third) of individuals follow the recommendations of the principle they most...
- 2021
- Working Paper
What Can Stockouts Tell Us About Inflation? Evidence from Online Micro Data

By: Alberto Cavallo and Oleksiy Kryvtsov

We use a detailed micro dataset on product availability to construct a direct high-frequency measure of consumer product shortages during the 2020-2021 pandemic. We document a widespread multi-fold rise in shortages in nearly all sectors early in the pandemic. Over time, the composition of shortages evolved from many temporary stockouts to mostly discontinued products, concentrated in fewer sectors. We show that product shortages have significant but transitory inflationary effects, and that these effects can be associated with elevated cost of replenishing inventories.
- 2021
- Working Paper
What Can Stockouts Tell Us About Inflation? Evidence from Online Micro Data

By: Alberto Cavallo and Oleksiy Kryvtsov

We use a detailed micro dataset on product availability to construct a direct high-frequency measure of consumer product shortages during the 2020-2021 pandemic. We document a widespread multi-fold rise in shortages in nearly all sectors early in the pandemic. Over time, the composition of shortages evolved from many temporary stockouts to mostly...
- September 2021
- Case
Italy - 'Whatever It Takes'

By: Richard H.K. Vietor, Dante Roscini and Cecile Gambardella
- September 2021
- Case
Italy - 'Whatever It Takes'

By: Richard H.K. Vietor, Dante Roscini and Cecile Gambardella

About the Unit

The BGIE Unit conducts research on, and teaches about, the economic, political, social, and legal environment in which business operates. The Unit includes scholars trained in economics, political science, and history; in its work, it draws on perspectives from all three of these disciplines.

The following demonstrates one way of classifying the approaches the Unit takes to learning and teaching.

The Unit examines the “rules” and policies established by government and other non-business institutions that affect business in the United States.
The Unit turns to history to understand the origins of today’s business environment as well as some of the alternatives that have emerged from time to time.
The Unit examines other countries’ business environments and their historical development.
The BGIE group is deeply interested in the impact of globalization and the way rules are emerging to govern international economic transactions as globalization proceeds.

Recent Publications

Hester Pharmaceuticals (B): Securing Supply

By: Dante Roscini and John Masko

September 2021 |
Supplement |
Faculty Research

In 2020, amid the COVID-19 pandemic and a rise in “reshoring” sentiment in the U.S., Hester Pharmaceuticals had to decide whether to build a new plant for its new oncology drug Akrozumab in Germany or in the U.S., or whether it should hire a contract manufacturing organization (CMO) to produce the drug. As it made its decision, Hester had to con

Keywords: Cost vs Benefits; Trade; Supply Chain; Global Strategy; Pharmaceutical Industry; Italy

Citation

Most Individuals Prefer to Compromise among Competing Normative Principles of Taxation

By: Itai Sher and Matthew C. Weinzierl

2021 |
Working Paper |
Faculty Research

We use a novel survey to gather direct and indirect evidence on how individuals reconcile their simultaneous support for opposing normative principles when forming their policy preferences. Our evidence suggests that, when choosing policy, a minority (approximately one-third) of individuals follow the recommendations of the principle they most strongly support, while the majority of individuals prefer, instead, to compromise. Those who compromise give multiple competing principles weights that roughly correspond to their relative levels of support for them.

Citation

Read Now

What Can Stockouts Tell Us About Inflation? Evidence from Online Micro Data

By: Alberto Cavallo and Oleksiy Kryvtsov

2021 |
Working Paper |
Faculty Research

We use a detailed micro dataset on product availability to construct a direct high-frequency measure of consumer product shortages during the 2020-2021 pandemic. We document a widespread multi-fold rise in shortages in nearly all sectors early in the pandemic. Over time, the composition of shortages evolved from many temporary stockouts to mostly discontinued products, concentrated in fewer sectors. We show that product shortages have significant but transitory inflationary effects, and that these effects can be associated with elevated cost of replenishing inventories.

Keywords: Macroeconomics; Inflation and Deflation; Supply Chain; Consumer Products Industry; United States; China; Canada; France; Germany; Japan; Spain

Citation

Read Now

Italy - 'Whatever It Takes'

By: Richard H.K. Vietor, Dante Roscini and Cecile Gambardella

September 2021 |
Case |
Faculty Research

Citation

Educators

Walmart Chile After the Unrest: Doubling Down or Pulling Out?

By: Vincent Pons, William Mullins, Ruth Costas and Pedro Levindo

August 2021 |
Case |
Faculty Research

Citation

Educators

Oil: History, Present and Future

By: Jurgen Weiss

August 2021 |
Background Note |
Faculty Research

This background note is intended to provide context for a discussion of the strategies for big integrated oil companies in light of both oil’s current role in the global energy system and the uncertainty about changes going forward.

Keywords: Oil; Energy Markets; Oil Prices; Oil Companies; Decarbonization; Environmental Sustainability; Strategy; Globalized Markets and Industries

Citation

Educators