Understanding How the Coronavirus Affects the Global Economy: A Guide for Non-Economists

The coronavirus is causing considerable damage to the global economy, and the potential damage is continuing to grow. Unlike many other crises, evaluating the economic impact of the coronavirus is extremely challenging, due to the complexity of the ways in which it affects economic activity. This paper explains the main channels that economists think about when attempting to gauge the virus’s economic fallout, and then presents some of the most recent assessments being circulated in the research community. It is written in a manner that is accessible to non-economists, while still making use of the cutting-edge contributions made in the academic literature

Understanding How the Coronavirus Affects the Global Economy: A Guide for Non-Economists

The coronavirus is causing considerable damage to the global economy, and the potential damage is continuing to grow. Unlike many other crises, evaluating the economic impact of the coronavirus is extremely challenging, due to the complexity of the ways in which it affects economic activity. This paper explains the main channels that economists think about when attempting to gauge the virus’s economic fallout, and then presents some of the most recent assessments being circulated in the research community. It is written in a manner that is accessible to non-economists, while still making use of the cutting-edge contributions made in the academic literature

مجلس ”التنسيق“ وليس ”التعاون“: تحدّيات الاتحاد أمام الدول الأعضاء

The Gulf Cooperation Council (GCC) has progressed substantially since its inception in 1981, and it has developed from defense and military cooperation to economic integration, such as the customs union, the single market, and firm plans for monetary union. Some of the member states are currently aiming to evolve the relationship from cooperation into a potentially complete union, especially in the economic, defense, and foreign policy domains. The dream of union has the potential to confer significant and unprecedented benefits upon the Gulf countries. However, among the relatively enthusiastic states, there exists a supposition that it is possible to forge a union that does not impinge upon the independence and sovereignty of the member countries, and without the larger countries dominating the smaller ones. This principle is fundamentally incorrect and unrealistic. The reason is that a functioning union is based on the principle of realizing a collective goal even, if it contradicts a member's short term interests. In fact the prevalence of this erroneous mindset explains the failure to realize a substantial return on Gulf economic projects, and it also threatens the success of the single currency. If the Gulf countries want to seriously consider the idea of a political union, they need to fundamentally change the GCC and their own views on the requirements for constructive interaction. The European experience, as embodied in the European Union (EU), is a useful source of information and recommendations on the best way to realize the ambitious and promising project of political union

From hands off to hands on: the evolution of Bahrain's industrial policy during the 21st century

Purpose – This paper aims to address two fundamental questions: (1) How has Bahrain's industrial policy evolved during the 21st century? and (2) what factors contribute to this evolution? Design/methodology/approach – Utilizing secondary data, this paper identifies key decision-makers responsible for economic policy in Bahrain and delineates the evolution of Bahrain's industrial policy throughout the 21st century. Subsequently, it employs a series of interviews with elite civil servants engaged in the formulation and implementation of Bahrain's economic policies to understand the reasons behind the observed changes. Findings – Since assuming the role of Crown Prince in 1999, Sh. Salman bin Hamad Al Khalifa has been the key economic decision-maker in Bahrain. During the 21st century, Bahrain has shifted away from decisions closely aligned with the Washington Consensus towards those more in line with classical industrial policy. Interviews reveal that the private sector's underperformance in job creation, coupled with fiscal pressures, has driven this departure from the Washington Consensus. Moreover, the early successes of the interventionist Saudi Vision 2030 and Bahrain's own success in technocratically managing the COVID-19 pandemic have accelerated this transition. Practical implications – Insights into the determinants of Bahrain's industrial policy can guide policymakers in refining future strategies. Recognizing the positive role of intellectual developments in academic economics literature becomes crucial for informed decision-making. Originality/value – This paper fills a gap in the existing literature by providing answers to its research questions, particularly considering the significant changes witnessed in Bahrain's industrial policy post-pandemic

Can tailored communications motivate volunteers? A field experiment

Over 25% of the US population volunteers. Clary et al. (1998) devised a survey that identifies a volunteer’s primary motive for volunteering. We investigate the effect of tailoring the communications that volunteers receive from their organizations (e.g., printed newsletters, update emails) to each volunteer’s stated motive for volunteering affects volunteer performance. We find that in general, such tailoring has no effect, but that for volunteers who are motivated primarily by the pursuit of career-related benefits, such tailoring can have a substantial, positive effect on hours volunteered. We also find that the (in)effectiveness of this tailoring does not depend upon the volunteers’ knowledge of the tailoring. The tailoring of communications does not involve the explicit manipulation of material incentives. This renders it particularly attractive given the emergence of evidence on how extrinsic incentives can crowd out intrinsic incentives, especially in the domain of charitable contributions

Do people donate more when they perceive a single beneficiary whom they know? A field experimental test of the identifiability effect

According to the identifiability effect, people will donate more to a single beneficiary rather than to many beneficiaries, holding constant what the donations are actually used for. We test the identifiability effect for two novel subject pools (the suppliers and beneficiaries of volunteer labor). We also test a refinement of the identifiability effect where we vary whether or not the single beneficiary is personally known to the solicitees. While the behavior of volunteers is consistent with the identifiability effect, we find that the identifiability effect is reversed for beneficiaries of volunteer labor. Moreover, we find that making the single beneficiary personally known to the solicitees lowers donations by a statistically insignificant amount, suggesting that it does not enhance donations

Can tailored communications motivate volunteers? A field experiment

Over 25% of the US population volunteers. Clary et al. (1998) devised a survey that identifies a volunteer’s primary motive for volunteering. We investigate the effect of tailoring the communications that volunteers receive from their organizations (e.g., printed newsletters, update emails) to each volunteer’s stated motive for volunteering affects volunteer performance. We find that in general, such tailoring has no effect, but that for volunteers who are motivated primarily by the pursuit of career-related benefits, such tailoring can have a substantial, positive effect on hours volunteered. We also find that the (in)effectiveness of this tailoring does not depend upon the volunteers’ knowledge of the tailoring. The tailoring of communications does not involve the explicit manipulation of material incentives. This renders it particularly attractive given the emergence of evidence on how extrinsic incentives can crowd out intrinsic incentives, especially in the domain of charitable contributions

Do people donate more when they perceive a single beneficiary whom they know? A field experimental test of the identifiability effect

According to the identifiability effect, people will donate more to a single beneficiary rather than to many beneficiaries, holding constant what the donations are actually used for. We test the identifiability effect for two novel subject pools (the suppliers and beneficiaries of volunteer labor). We also test a refinement of the identifiability effect where we vary whether or not the single beneficiary is personally known to the solicitees. While the behavior of volunteers is consistent with the identifiability effect, we find that the identifiability effect is reversed for beneficiaries of volunteer labor. Moreover, we find that making the single beneficiary personally known to the solicitees lowers donations by a statistically insignificant amount, suggesting that it does not enhance donations

Markets as economizers of information: Field experimental examination of the “Hayek Hypothesis”

The work of Friedrich Von Hayek contains several testable predictions about the nature of market processes. Vernon Smith termed the most important one the ‘Hayek hypothesis’: equilibrium prices and the gains from trade can be achieved in the presence of diffuse, decentralized information, and in the absence of price-taking behavior and centralized market direction. Vernon Smith tested this by surveying data on laboratory experimental markets and found strong support. We repeat this exercise using field experimental market data. Using field experiments allows us to test several other predictions. Generally speaking, we find support for Hayek’s theories