Labor Productivity and Wage Allocation: Thom and I Were Right!

The EU Commission’s recent report on Monitoring progress in the Member States for Italy, on pag 2,  acknowledges that “Slow productivity growth is mostly due to inefficiency in allocating resources. Indeed, Italy’s investment rate is comparable to that of other euro-area countries, but its level of capital efficiency is lower and declining.According to a recent […]

What’s wrong with Europe?

by Paolo Manasse and Isabella Rota Baldini The US and Europe; a tale of two cities: while the economic recovery is well underway in the United States, with growth back to 2.5 percent and falling unemployment, the Eurozone economy is struggling to recover. Why? We argue in this paper that the major differences between the […]