Income Distribution and Growth: A Global Model

This paper estimates the effects of a change in the wage share on growth at global level in the G20 countries. A decrease in the wage share in isolation leads to lower growth in the euro area, Germany, France, Italy, the UK, the US, Japan, Turkey, and South Korea, whereas it stimulates growth in Canada, Australia, Argentina, Mexico, China, India, and South Africa. However, a simultaneous decline in the wage share in all these countries leads to a decline in global growth. Furthermore, Canada, Argentina, Mexico, and India also experience negative effects on growth when they decrease their wage share along with their trading partners. The results indicate that the global decline in labour share has had significant negative effects on growth

Going Electric: Expert Survey on the Future of Battery Technologies for Electric Vehicles

The paper describes the results of a survey, carried out with leading EU experts, on the capacity of both fully electric and plug-in hybrid vehicles to reach commercial success in the next twenty years. The success of electric transport is hampered by a combination of low range, scarce efficiency and high costs of batteries. Costs are expected to decrease in response to increasing sales volume and technical improvements, and advances would result from adequate investments in research, development and demonstration (RD&D). Experts' judgements are collected to shed light on the inherently uncertain relationship between RD&D efforts and consequent technical progress, and to assess the complex dynamics that will hinder or support the widespread diffusion of electric vehicles. The analysis of the experts' data results in a number of important policy recommendations to guide future RD&D choices and target commitments both for the EU and its member states