Old duffers brigade have their say on migrants

The publication of a new report on the economic effects of immigration by the House of Lords Economics Affairs Select Committee has prompted the usual and predictable mixture of commentators, rent-a-quotes and so-called experts to come out of the woodwork and use up copious amount of media time. There is no doubt that the committee contains some heavyweights including Lords Layard, Turner, Paul and Skidelsky. And there is a terrific amount of economic data and comment in the report for us to soak up.

But no single report is ever definitive and, as the report itself makes clear, the real problem at the moment is that we simply do not have sufficient accurate data on the scale of the migration flows and the characteristics of those who come to live and work in the UK. The report seems to be heavy on the static effects of large-scale net inward migration - but perhaps gives insufficient weight to the dynamic impact of migration in areas such as innovation within businesses and the longer term bsocial benefits from greater cultural diversity.

Anyway, here is the link to the report for those of you who want to read it for yourself.

And the always lively and interesting commentator Philippe Legrain offers this robust defence of the economic benefits of inward migration

Revision: Innovation

Innovation has been defined by the OECD as “The transformation of an idea into a new, improved product, process or service.” This revision mind map looks at the micro and macroeconomic importance of innovation. Successful innovation can be a driving dynamic of a modern, competitive economy. A range of supply and demand-side policies can be used to foster innovative behaviour. Of key importance is the type of market structure in which innovation within the private sector can be encouraged. We must not forget too the potential for innovation in the public sector and in collaborative ventures between countries.

OCR 2888 - June Case Study - Broad Themes

This is the first in a series of blog posts relating to the OCR A2 Economics Case Study, Economics in a European Context. This summer the pre-release case study materials focus on the EU automotive industry and many of the economic and environmental issues that link to this important industrial sector. I have been working on our toolkit for this paper (due out in a few days) and below I have tried to capture some of the broad themes that I feel are covered by the case study materials. Please do add your own ideas through the blog!

Dynamic Efficiency and Innovation

Our AS micro teaching topic today was that of dynamic efficiency in markets and the link to the power of innovation. It seems to me that dynamic efficiency is an increasingly important aspect when we consider the welfare consequences of market structures. I regard dynamic efficiency as form of efficiency that occurs over time in the sense that a market should meet our changing needs and wants as time progresses. Naturally we expect to pay a premium price for innovative products that enhance the ‘customer experience’ or which deliver something else better than the ‘industry standard.’ But at the heart of this is the impact of process and product innovation by suppliers in the market place.