On policy and politics
In English, the words "politics" and "policy", though similar, have different meanings. "Politics" refers to the political process (elections, parties, ideologies, etc.). "Policy", in turn, refers to the set of actions adopted to achieve an objective (monetary policy, competition policy, health policy, etc.).
A sovereign wealth fund to invest in strategic companies: a good or a bad idea?
The possible creation of a sovereign wealth fund (SWF) in Portugal to invest in strategic companies is a bad idea for structural, governance, and empirical reasons that are well documented in the economic literature.
Portugal and the Productivity Challenge
There are numbers that hurt more than diagnoses. In 2024, labor productivity per hour in Portugal stood at just 67% of the European Union average, and 55% of the Eurozone. For every hour worked in Lisbon, less than half is produced compared to Munich or Lyon; even relative to Madrid, the gap is around twenty percentage points.
Import Tariffs: Why?
Import tariffs are discouraged by economists but celebrated by certain politicians and economic agents. Donald Trump is currently their number one fan, having declared “tariff” as “the most beautiful word […]
Carry-on luggage: The Vueling case and its effects
Recently, European Union lawmakers voted in favor of adopting a proposal that will allow air travelers to carry, free of charge, one personal item and one piece of hand luggage […]
Housing Supply and Rent Prices
Many developed countries are undergoing a housing crisis, with many families having difficulty finding an affordable hope — and with housing prices showing no sign of a decline. There is […]
The Short-run Effects of Congestion Pricing in New York City
New York City became the first city in the US to introduce a congestion charge for vehicles entering Manhattan’s Central Business District (CBD). The new fees, introduced in January of […]
The Impact of Reducing Licensing Hours
Occupational licensing is often cited as a form of regulatory capture—a situation where regulation serves the interests of industry insiders rather than those of consumers, potential entrants, or society at […]
Who Bears the Burden of Local Taxes?
Who bears the burden of local taxes? Generally speaking, economic theory predicts that the incidence of taxes (and tariffs) is higher on the agent who is more dependent on the […]
Cultural Exception? The Impact of Price Regulation on Prices and Variety in the Market for Books
Price-fixing is generally seen as a bad thing. In many jurisdictions, price-fixing, understood as an agreement among competitors, is actually a crime, possibly punishable with prison sentences. However, fixed book […]