CEBI research covered in Financial Times
Research on how to support “left-behind” places by CEBI researchers Asger Lau Andersen and Niels Johannesen is featured in a recent Financial Times article. The research, which was recently published in The Quarterly Journal of Economics, provides new methods to track how money flows across households, firms, and regions. It shows that economic activity depends not just on how much is spent, but also on who receives that spending and how it circulates through the economy. Using detailed microdata from Denmark, the paper breaks down national economic flows to reveal how income and spending move between different groups in the population, and shows that spending by some households generates stronger effects in the domestic economy than others. These insights offer a clearer picture of how economic shocks propagate and help inform the design of targeted economic policies by showing how their effects can differ markedly across places and groups.
You can read the full article in Financial Times here and you will find the research paper in Quarterly Journal of Economics here