UBS Center Spotlight 2020
Dec 2020
In the media
The Center’s affiliated researchers actively participate in public discussions on current issues and provide expert advice to government organizations and decision makers.
Coronavirus
Our researchers are involved in public analysis and discussion in national and international media. Based on research results and economic models, they provide assessments of the economic consequences in connection with the corona crisis. In addition to contributions from their respective areas of expertise, they have published a joint position paper together with all professors of the Department of Economics at UZH. This paper summarizes the consensus of the economic debate and outlines options for action for Switzerland.
US presidential elections
Which president is better for the global economy? Globalization, trade and labor expert David Dorn gives an assessment of the consequences of the presidential election in the US. He also explains why the economic decline of some regions in the US has deepened the ideological divide, amplifying polarization.
Social mobility takes generations
While differences in income and wealth can be justified, low social mobility seems difficult to accept in meritocratic societies. Economic historian Joachim Voth explains why many people today are no better off than their parents and why – as long as the rules of the game remain broadly the same – one should not have overly high expectations of changes in the income position, even in a meritocratic environment.
The Center’s affiliated researchers actively participate in public discussions on current issues and provide expert advice to government organizations and decision makers.
Coronavirus
Our researchers are involved in public analysis and discussion in national and international media. Based on research results and economic models, they provide assessments of the economic consequences in connection with the corona crisis. In addition to contributions from their respective areas of expertise, they have published a joint position paper together with all professors of the Department of Economics at UZH. This paper summarizes the consensus of the economic debate and outlines options for action for Switzerland.
Interview and media requests: maura.wyler@ubscenter.uzh.ch / 044 634 35 81
Events 2020
The economics of climate change
William Nordhaus did not sugarcoat anything in his public lecture: International climate policy is at a dead end, he stated. Policy makers are far off from reaching the 2-degree target and even if the goals of the Paris Agreement are met, we would be nowhere near the 2-degree limitation. Nordhaus identifies the free-rider problem as the biggest challenge for global agreements to work, since the agreements are voluntary and without penalties for non-participation. To solve the free-rider problem, Nordhaus suggests forming a “climate club” among countries. The club structure aims to overcome free-riding as members “pay dues” through costly abatements. At the same time, costly penalties are applied to non-participants, e.g., in form of trade tariffs.
Corona crisis Switzerland
The coronavirus has put the world in a state of emergency. During the first wave, Switzerland took far-reaching measures to stop the virus from spreading. Back then, it was uncertain how the situation would develop after the lockdown. In the webinar, UBS Foundation Professor David Dorn and cardiologist and immunologist Paul Mohacsi discussed how a gradual relaxation can be achieved considering economic and medical aspects. This event was carried out in cooperation with our partner OEC Alumni UZH.
(In-)Equality and prosperity (Forum for Economic Dialogue)
What better way to open an event series on inequality than with a firework of different short presentations on the topic? The 35-minutes session is packed with insights from ongoing research on different aspects of inequality. The first talk provides a political perspective, showing how confidence about one’s own future opportunities influences voting behavior. Three presenters focus on innovation, labor, and taxation, discussing the interplay between rising automation, job losses and corresponding policy measures. Another group presents findings from the field of development and behavioral economics, showing that early interventions in children’s life as well as learning to be more patient can make a huge difference in education outcomes and wealth accumulation.
Taxing the superrich (Forum for Economic Dialogue)
Based on his research on taxation, UBS Foundation Professor Florian Scheuer explores the various approaches of how to tax the superrich more effectively as a measure to create a fairer tax system. His data show not only great differences in income and wealth inequalities, but also in tax systems and policies across OECD countries. These differences are interlinked with the way the superrich are taxed in different countries, especially regarding income and wealth. Scheuer provides an overview of the tax situation the superrich currently face and evaluates various reform proposals. He also reviews the pros and cons of wealth taxes versus alternative policies that achieve similar objectives – such as Joe Biden’s reform plans for the US tax system. Concluding, Scheuer identifies a possible solution for fixing capital taxation, suggesting a retrospective accrual tax where the statutory tax rate rises with the holding period, but the tax is only assessed upon realization of capital gains.
Inequality – facts and consequences (Forum for Economic Dialogue)
Research insights on economic inequality and its consequences take center stage in this discussion panel, bringing together three experts with multiple perspectives. While Branko Milanovic’s historical data show that the rise of Asia has led to a decrease in global inequality in the past decade and that the growth of the global top 1% has slowed down in recent years, the discussants agree that overall, inequality is still very high. Janet Currie argues that there is too much inequality, when there is a privileged group that can separate itself from a deteriorating public service, say through private hospitals or schools. UBS Foundation Professor David Dorn emphasizes that the threshold – when inequality is clearly harmful – is reached when some large income groups cannot profit anymore from the overall growth in the country, like currently in the US. Finally, they discuss whether the corona pandemic will increase inequality or whether it might even accelerate the progressive reduction of global inequality.
Inequality and the future of capitalism (Forum for Economic Dialogue)
In his presentation, Sir Angus Deaton talks about the advantages and disadvantages of capitalism and the inequalities that result from it. He emphasizes that capitalism has brought great prosperity in the past, even to poor countries. But the system has flaws that need to be fixed, such as the health care system in the US. Thus, Deaton concludes, we need to repair capitalism through better regulations and restore competition by fixing antitrust, re-orienting the courts, campaigning finance reform, enforcing rules on lobbying, and eliminating tax havens.
The economics of climate change
William Nordhaus did not sugarcoat anything in his public lecture: International climate policy is at a dead end, he stated. Policy makers are far off from reaching the 2-degree target and even if the goals of the Paris Agreement are met, we would be nowhere near the 2-degree limitation. Nordhaus identifies the free-rider problem as the biggest challenge for global agreements to work, since the agreements are voluntary and without penalties for non-participation. To solve the free-rider problem, Nordhaus suggests forming a “climate club” among countries. The club structure aims to overcome free-riding as members “pay dues” through costly abatements. At the same time, costly penalties are applied to non-participants, e.g., in form of trade tariffs.
Corona crisis Switzerland
The coronavirus has put the world in a state of emergency. During the first wave, Switzerland took far-reaching measures to stop the virus from spreading. Back then, it was uncertain how the situation would develop after the lockdown. In the webinar, UBS Foundation Professor David Dorn and cardiologist and immunologist Paul Mohacsi discussed how a gradual relaxation can be achieved considering economic and medical aspects. This event was carried out in cooperation with our partner OEC Alumni UZH.
Opinion event by Nobel laureate William Nordhaus
Webinar with UBS Foundation Professor David Dorn
Research slam with several UZH researchers
Webinar with UBS Foundation Professor Florian Scheuer
Panel discussion with Janet Currie, David Dorn and Branko Milanovic
Keynote by Nobel laureate Sir Angus Deaton
Center publications
Taxing the superrich (Public paper)
Over the past decades, many developed countries have experienced considerable increases in income and wealth inequality, led by an extraordinary concentration among the very richest swath of households. This has focused policy attention on the superrich. Various political and economic arguments for at least partially offsetting this rise in inequality have been put forward. In particular, politicians have called for increasing the tax burden on rich households, both in the form of higher top rates for existing income taxes as well as new tax levies targeting the superrich. Most prominently, the idea of introducing an annual wealth tax has recently gained attention in the United States. Public Paper No.9 provides an overview of the tax situation the superrich currently face and evaluates various reform proposals.
Disappearing middle class (Public paper)
The creeping hollowing out of the middle class and the simultaneous rise of automation have become hotly debated topics in the popular media and among policy makers, and there is certainly no shortage of dire predictions about the ascent of robots and subsequent obsolescence of workers. But – doomsday prophecies aside – what are the facts? What is happening to workers, specifically middle-class ones? And, from a policy perspective, what can (or should) be done to address this fundamental shift in who – or what – does which jobs? Public Paper No.8 tackles these questions head-on. The author first identifies the types of individuals who are likely to work in middle-class occupations and tracks how they act on the labor market outcomes. Then he evaluates policies proposed in recent years that have been aimed at combating the labor market malaise middle-class workers have experienced.
Taxing the superrich (Public paper)
Over the past decades, many developed countries have experienced considerable increases in income and wealth inequality, led by an extraordinary concentration among the very richest swath of households. This has focused policy attention on the superrich. Various political and economic arguments for at least partially offsetting this rise in inequality have been put forward. In particular, politicians have called for increasing the tax burden on rich households, both in the form of higher top rates for existing income taxes as well as new tax levies targeting the superrich. Most prominently, the idea of introducing an annual wealth tax has recently gained attention in the United States. Public Paper No.9 provides an overview of the tax situation the superrich currently face and evaluates various reform proposals.
Disappearing middle class (Public paper)
The creeping hollowing out of the middle class and the simultaneous rise of automation have become hotly debated topics in the popular media and among policy makers, and there is certainly no shortage of dire predictions about the ascent of robots and subsequent obsolescence of workers. But – doomsday prophecies aside – what are the facts? What is happening to workers, specifically middle-class ones? And, from a policy perspective, what can (or should) be done to address this fundamental shift in who – or what – does which jobs? Public Paper No.8 tackles these questions head-on. The author first identifies the types of individuals who are likely to work in middle-class occupations and tracks how they act on the labor market outcomes. Then he evaluates policies proposed in recent years that have been aimed at combating the labor market malaise middle-class workers have experienced.
Public paper No.9 by Florian Scheuer
Public paper No.8 by Nir Jaimovich
Top five publications
Autor, David, David Dorn, Gordon Hanson, and Kaveh Majlesi. 2020. Importing Political Polarization? The Electoral Consequences of Rising Trade Exposure. American Economic Review, 110 (10): 3139–83 download
Autor, David, David Dorn, Lawrence F. Katz, Christina Patterson, and John Van Reenen. 2020. The Fall of the Labor Share and the Rise of Superstar Firms. The Quarterly Journal of Economics, Volume 135, Issue 2: 645–709. download
Baranov, Victoria, Sonia Bhalotra, Pietro Biroli, and Joanna Maselko. 2020. Maternal Depression, Women’s Empowerment, and Parental Investment: Evidence from a Randomized Controlled Trial. American Economic Review, 110 (3): 824–59. download
Bursztyn, Leonardo, Alessandra L. González, and David Yanagizawa-Drott. 2020. Misperceived Social Norms: Women Working Outside the Home in Saudi Arabia. American Economic Review, 110 (10): 2997–3029. download
Epper, Thomas, Ernst Fehr, Helga Fehr-Duda, Claus Thustrup Kreiner, David Dreyer Lassen, Søren Leth-Petersen, and Gregers Nytoft Rasmussen. 2020. Time Discounting and Wealth Inequality American Economic Review, 110 (4): 1177-1205. download
Course for the future
In June 2020, UBS announced the extension of its engagement for the University of Zurich for an additional 10 years with a new donation of approximately 25 million Swiss francs, enabling the UBS Center to build on its past achievements.
Bringing European values and views into global dialogue
The University of Zurich has become one of the leading universities in Europe in the field of economics – and this is in large part due to the UBS Center, which has been able to establish itself in Switzerland as a driving force and a platform for dialogue between scientists, policy makers, and society.
Additional professorship and continuation of PhD scholarships
The extension of the initial 2012 framework agreement includes the continuation of the activities of the UBS Center in their previous scope. This applies in particular to the Center’s public events, publication series and communication activities on various channels. Ernst Fehr will remain director of the Center, as will the strongly staffed advisory board and the existing donated professorships. The UBS Foundation has now the opportunity to fund an additional professorship; the independent appointment committee of the University of Zurich will determine who will take up the professorship. Furthermore, the foundation will continue its scholarship program, thus carrying on its support for the Zurich Graduate School of Economics.
In June 2020, UBS announced the extension of its engagement for the University of Zurich for an additional 10 years with a new donation of approximately 25 million Swiss francs, enabling the UBS Center to build on its past achievements.
Bringing European values and views into global dialogue
The University of Zurich has become one of the leading universities in Europe in the field of economics – and this is in large part due to the UBS Center, which has been able to establish itself in Switzerland as a driving force and a platform for dialogue between scientists, policy makers, and society.
Aerial view of the main building of the University of Zurich © UZH / Manfred Richter
Events 2021
The Center’s events come in different formats, including two annual conferences with leading representatives from the academic, private, and public sectors debating a key contemporary economic issue. The Opinions events feature top representatives from academia to voice their views in public speeches.
Sustainable social systems (Wirtschaftspodium Schweiz)
Switzerland’s social security systems are facing major challenges: an aging society, rising health and care costs, low interest rates for retirement provisions, as well as misguided incentives in health care and early retirement. Growing demands are confronted with questions of feasibility. Where are the limits of the welfare state? And what priorities need to be set to ensure the sustainability of the social systems?
Experts from the fields of retirement provision and health care will discuss these and other questions in two expert panels on the topics of “Solutions to secure retirement provision” and “The health care system between ethics and affordability”. In the concluding political panel these impulses will be taken up and the political priorities discussed.
Steven Pinker: Enlightenment now
If you follow the news, the world appears to be sinking into chaos, hatred, and irrationality. Is the world really falling apart? According to Steven Pinker, Johnstone Family Professor at Harvard University, the reality created by the media is an illusion: a symptom of historical amnesia and statistical fallacies. Relying on empirical data, he shows that our lives have become longer, healthier, safer, richer, happier, and more peaceful – not just in the West, but worldwide.
Pinker argues that this progress is the result of the Enlightenment: the conviction that reason and science can enhance human flourishing. This ideology and its values are threatened by the negative public discourse, which fuels fears and results in a corrosive fatalism. Pinker makes the case for reason, science, and humanism: the ideals we need to confront our problems and continue our progress.
In cooperation with Swiss Institute of International Studies (SIAF)
The Center’s events come in different formats, including two annual conferences with leading representatives from the academic, private, and public sectors debating a key contemporary economic issue. The Opinions events feature top representatives from academia to voice their views in public speeches.
Sustainable social systems (Wirtschaftspodium Schweiz)
Switzerland’s social security systems are facing major challenges: an aging society, rising health and care costs, low interest rates for retirement provisions, as well as misguided incentives in health care and early retirement. Growing demands are confronted with questions of feasibility. Where are the limits of the welfare state? And what priorities need to be set to ensure the sustainability of the social systems?
Wirtschaftspodium Schweiz, April 2021
Opinion event with Steven Pinker, 26.5.2021
Quotes
I hope that you can say that we, in this generation, had the resolve to overcome the obstacles and take the steps necessary to preserve our unique and beautiful planet.
Keynote 21.1.2020
Nobel laureate William Nordhaus
It is a situation in which one should not only look for the help of the state. In fact, even the individual can do a lot to slow down the spread of the virus through changes in behavior.
Oec Alumni Webinar 29.4.2020
David Dorn
Enormous corporate power is undermining competition and transferring resources upwards, from poor to rich.
Forum for Economic Dialogue 11.11.2020
Nobel laureate Sir Angus Deaton
Scientific knowledge does not release us from making difficult decisions in complex environments, but it can provide insights that we should take into consideration when making these decisions.
Chairman of the Foundation Council
Kaspar Villiger
Here is a shocker: The world has made spectacular progress in every single measure of human well-being. Here is a second shocker: Almost no one knows about it.
Opinion event 26.5.2021
Steven Pinker