Our projects are designed to empower policy makers to create positive change. With a focus on collaboration and outreach, we provide original, standards-based research on key policy issues.
SCEPA joined with the Economic Policy Institute on Capitol Hill to brief congressional staff and policy experts on tax expenditures, or incentives given through the tax code without scrutiny by Congress.
SCEPA economists are working on the prospects for a more progressive economic order to emerge from the shock of the recession. They have published papers and documents that place current events in a longer-term context as well as policy proposals to deal with short-term concerns. They are also documenting the emerging discussion of how the discipline of economics is reacting to the Great Recession and the questioning of conventional economic analysis.
Lance Taylor, a SCEPA Faculty Fellow, presents an overview of his new book, Maynard’s Revenge, in a Google Tech Talk.
The book, published this November by Harvard University Press, is a timely analysis of mainstream macroeconomics, posing the need for a more useful and realistic economic analysis that can provide a better understanding of the ongoing global financial and economic crisis.
The government spends $143 billion through tax breaks in an effort to expand pension coverage and security. Yet, over half of the American workforce does not have a pension. Retirement insecurity hurts business plans, workers’ lives and retiree well-being. Reform is needed.
SCEPA’s Guaranteeing Retirement Income Project, sponsored by the Rockefeller Foundation and in collaboration with Demos and the Economic Policy Institute, has a plan to guarantee safe and secure retirement income for all Americans.
- Published on Wednesday, April 02, 2014
Can We Anticipate, Can We Adapt?
The patterns and probability of extreme weather - and its accompanying risks to society and ecosystems - are being altered by climate change due to the buildup of the greenhouse gases. While our ability to project such changes is improving, it remains inadequate at the local level, where most resilience and adaptation planning occurs. Even more troubling, needed action will likely be deferred by the economic and political obstacles that stand in the way of long-term resilience planning.
In late March, the Intergovernmental Panel on Climate Change (IPCC) issued a report, 'Impacts, Adaptation and Vulnerability,' by its second Working Group as part of the Fifth Assessment Report. On April 7, 2014, Princeton's Michael Oppenheimer, one of the lead authors of the report, joined SCEPA to give a presentation on New York City's climate plan as an example of both the obstacles and possibilities of long-term planning for climate change.
Oppenheimer is the Albert G. Milbank Professor of Geosciences and International Affairs in the Woodrow Wilson School and the Department of Geosciences at Princeton University. He is director of the program in Science, Technology and Environmental Policy (STEP) at the Woodrow Wilson School and Faculty Associate of the Atmospheric and Ocean Sciences Program, Princeton Environmental Institute, and the Princeton Institute for International and Regional Studies.
Oppenheimer serves as a Coordinating Lead Author on the second Working Group report. The first report, "The Physical Science Basis," released in September 2013 by the first Working Group, was the subject of a SCEPA panel held in November 2013 on the Local and Global Impacts of of Climate Change.
SCEPA's Economics of Climate Change Project, led by New School Professor of Economics Willi Semmler, is generously supported by the Fritz Thyssen Foundation and the German Research Foundation (DFG). This event is in coordination with the Environmental Policy and Sustainability Program at the Milano School.
- Published on Wednesday, April 02, 2014
On March 31, 2014, the Intergovernmental Panel on Climate Change (IPCC) released their second report as part of their Fifth Assessment on climate change.
One of the lead authors of the report, Princeton's Michael Oppenheimer, will be joining SCEPA on Monday, April 7th at 6:00pm to discuss the report, New York City's climate plan and the difficulties of long-term planning for climate change (RSVP or watch live online).
The report, Climate Change 2014: Impacts, Adaptation, and Vulnerability, is clear in its conclusion that climate change is having an effect on the world and its oceans. After specifying its impacts to date, impending risks and the possibilities to take action, it concludes that decisions need to be made to mitigate these risks.
Following are resources on the report's content:
1. The New York Times reviews the report's major conclusions;
2. IPCC's summary for policymakers; and
3. A webcast of the IPCC's conference releasing the report.
In November, SCEPA held an event to discuss the first report on the physical science of climate change with experts from Columbia and Rutgers, who focused on the local and global impacts (watch the video).
SCEPA Faculty Fellow Willi Semmler, head of the Economics of Climate Change project, published a paper with co-authors Stephan Klasen and Anthony Bonen that reviews how the economic damages of climate change are modeled and measured. Bonen joins the Worldly Philosopher blog to debate how economists and climate scientists assess these costs.
- Published on Tuesday, April 01, 2014
This week's Worldly Philosopher, Rishabh Kumar, writes on the wealth inequality debate.
The wealth inequality debate has taken center stage since the publication of Tom Piketty's new book, "Capital in the Twenty-First Century." Piketty drives home the point that wealth owners are better off than income earners because the rate of return on capital is higher than the return on income. Since wealth holders increase as we move up the class distribution, this implies an increasing income gap between the poorest and richest households.
In recent (and upcoming) research, my co-authors and I are examining the income distribution for the United States between 1986-2009. Using data from the Congressional Budget Office (CBO) and Bureau of Labor Statistics (BLS), we observe the gap between the super rich (the top 1 perce) and the bottom groups is indeed increasing (Figure 1: Shares of Different Household Groups in Total Household Income. Source: Upcoming in Taylor, Rezai, Kumar and Barbosa, 2014). But unlike Piketty, we did not count capital gains, and we discovered that the super rich are also increasing their share of income. Therefore, the rapidly increasing inequality that favors a few does not solely depend on capital and wealth, as Piketty's analysis implies.
Thus, even without wealth gains, the top 1 percent was able to increase its share of "non-wealth" income (the black line in Figure 1) from just under 9 percent in 1986 to around 18 percent by 2009. This happened while the income shares of the other groups remained relatively stagnant, if not decreasing. Piketty ascribes inequality to the concentration of wealth in the hands of the few. Our findings complement the story – the richest class in the United States has also benefited from higher (real) labor compensation and transfers (interest, dividends etc). In a broad sense, the total growth in income in the United States over the last two decades is heavily skewed in favor of the super rich.