Departmental news

From July 10th to July 12th, we have welcomed 40 A-level students to the Department for a three-day Work Experience Placement for a taste of a career in chemical sciences.

Tax expert Dr Arun Advani’s ambitious research agenda has been backed by the UK’s national research funding body with the award of a prestigious Future Leaders Fellowship.

Founded in 2018, the FLF scheme aims to provide long-term support to talented researchers investigating complex problems with funding, career development and skills training. Around 500 fellows have been appointed since the scheme began.

Dr Advani will become the University of Warwick’s third Future Leaders Fellow and the first from the Faculty of Social Science.

The award will support new research from Dr Advani into the use of trusts and other ‘split ownership’ structures by the wealthy, the impact of such schemes on inequality, and whether the taxation and regulation of trusts should be reformed.

Dr Advani is widely recognised as an expert on the complex and arcane UK tax system. The award will enable him to bring his skills to bear on this under-researched topic, which is also a feature of wealth management in the USA and in Commonwealth countries.

He explains: “Trusts are a key tool in wealth management and tax planning. While they can offer benefits such as protection for minors or others who are unable to manage their own finances, they can also be exploited as a means of concealing the true ownership of assets and a way of evading tax. They also make it difficult to accurately assess wealth inequality, a key issue for the new UK Government.

“We found with our work on non-doms that a major barrier to reform is the lack of real, robust data. Without quantitative evidence it is difficult for policymakers to model the outcome of reforms.

“This project will close the evidence gap in the area of trusts and work up practical, implementable reforms.”

Congratulating Dr Advani on his Fellowship, Head of Department Professor Ben Lockwood said: “Arun is committed to using his research to achieve real-world change. He has been at the forefront of research into UK tax issues for the best part of a decade and has developed an outstanding reputation as analyst and commentator on tax and equality issues.

“This Fellowship award will allow him to lead an entirely new area of study in the understanding of inequality and tax policy, and establish the UK as the global hub of wealth trust research.”

18 July 2024

Warwick Economics PhD student, Adam Di Liza, has received the Best Paper prize of the Business and Industry Section of the Royal Statistical Society awarded at the PhD Symposium 2024 in Industrial Economics.

Adam's paper, Social Influence in Online Reviews: Evidence from the Steam Store, discusses his research on how the reviews left by users might influence the reviews others leave. Using a policy change on the Steam gaming platform the paper shows that when users are exposed to the reviews of others, they are more likely to leave a negative review if they see a negative review. However, this does not happen when users see a positive review. This negativity bias increases the gap between lower rated and higher rated games. Other key findings of this research point out that less experienced users are influenced by the reviews of others much more, and policies that correct this negative bias increase the sales of products on the platform.

Adam, who is a first year PhD student of Economics at Warwick, was awarded the Best Paper prize of the Business and Industrial Section of the Royal Statistical Society for the best contribution to the use and advancement of statistical-econometric methods and/or data collection to the analysis of industrial economic issues.

Adam's prize was announced at the PhD Symposium in Industrial Economics, as part of a two-day research conference of the Network of Industrial Economists (NIE) on Innovation and Competition in Digital Platforms held at the University of Warwick on 27-28 June 2024. The symposium brings together early career economists (PhD students and postdoctoral researchers) to foster discussion and dissemination of research in all areas of industrial economics and to provide them with feedback on their work from a designated discussant drawn from both internal and external faculty.

Commented on the award, Adam said:

“It's great that so many people found my research interesting. Understanding the specifics of online review generation is hopefully useful for platforms, but also us as consumers. Not only did I get really good feedback, but I got to discuss this in detail with my fellow presenters throughout the day. Both my supervisors, Professor Mirko Draca and Dr Ao Wang, have been of immense help as I wrote this up over the last few months and I definitely couldn't have done this without them.”

We congratulate Adam on this achievement and wish him further successes in the future.

Related information

Adam Di Liza is a first year PhD student in the Department of Economics at the University of Warwick. Further information about his research and publications can be found on his PhD student Profile – Adam Di Liza.

The Network of Industrial Economists

Established in 1970, the Network of Industrial Economists (NIE) is a forum for interchange among university economists in the UK, and for interaction between academia, business, and government on topics of industry economics.

NIE Conference and PhD Symposium 2024, 27-28 June 2024, University of Warwick

Royal Statistical Society

Founded in 1834, the Royal Statistical Society is one of the world’s leading organisations advocating for the importance of statistics and data. It’s a professional body for all statisticians and data analysts with more than 10,000 members in the UK and across the world.

We congratulate a Warwick Economics finalist, Alex Reid (BSc Economics), who is one of the winners of the University's Outstanding Student Contribution Awards 2024 for demonstrating his entrepreneurial flair during his time at Warwick. The OSCAs recognise and celebrate the outstanding contributions of Warwick's students who not only excel academically, but also find the time to campaign for good causes, fundraise, start small business, and work with local charities.

In his second year, Alex got in touch to tell us about how he and two of his friends created a social media app called Butterfly, available to Warwick students, so that they could receive relevant content about campus life and feel connected to fellow students. We outlined the benefits of the app in the article Butterfly helps students spread their social wings, which was published in March 2023.

When we interviewed Alex then, he commented on his venture:

"We all felt that social media has lost its way - far from being social, these days it is about passive scrolling and the consumption of entertainment, often far removed from our own day to day lives."

Now, Alex has just finished his final year exams and is getting ready for his graduation on 23 July at which he will be receiving his Outstanding Student Contribution Award 2024.

We asked Alex how he felt about being awarded an OSCA and he said:

"Warwick is an amazing place to learn, connect, and innovate - I'm very grateful to have had these opportunities and be awarded the OSCA."

The app Butterfly is available in the AppStore and Google Play Store.

Professor Caroline Elliott has taken up a prestigious role on the UK’s Regulatory Policy Committee (RPC), an independent body of experts which assesses the quality of evidence and analysis used to inform government regulatory proposals.

Since taking up her appointment in March she has already provided expert review on a range of policy issues including multiple drafts of a white paper, an impact assessment for proposed secondary legislation, and two post-implementation reviews.

Looking towards the future, Caroline said: “I hope that I’ll be able to make a difference by using my applied research knowledge and my academic skills on the impact assessments. We’re also going to start looking at policy options assessments and I’m excited to bring my knowledge to bear on the independent reviews.”

Caroline is continuing a tradition of Warwick economists contributing to the work of the committee – the position became vacant when Dr Jonathan Cave’s term of appointment came to an end. He is delighted that, after a rigorous selection process, the Committee chose to appoint another “proper card-carrying academic economist.”

Caroline said: “Jonathan sent me the advertisement for the role, and when I looked into the work of the committee, I thought it looked amazing. I teach industrial economics, regulation and competition policy and I always try and link my teaching to the real world - I never want to be criticised as being an ivory tower academic. Here was an opportunity to put my work into practice – to not just comment on the work of others, or the work of the government, but to be directly involved.

“As an economist, and as an academic economist, I believe there are two things I bring to the role. The first is my familiarity with academic literature and evidence. The second way in which I feel I’m contributing comes back to my academic training. As an academic, as an applied economist, you’re always looking for data. Sometimes you’re having to pull data together from different sources. And because I come from this background I can assist with this.”

Jonathan is delighted that Caroline has been appointed as his successor. “I think because I kept citing peer-reviewed literature in my Opinions and other interventions, trying to ensure that regulatory analysis made appropriate use of economic empirical methodologies and theoretical tools, including the use of real options analysis - I think they saw the value of having a replacement who is similarly positioned.”

Asked if he had any advice for Caroline, Jonathan said: “Don’t be afraid to challenge people and to be the voice within the committee resisting calls to compromise when that isn’t appropriate, by ensuring that the impacts of whatever regulations ministers wish to propose are rigorously assessed against real problems, but without being drawn into comments about whether the policies themselves are ‘right’ or ‘wrong’.

“I’d encourage her to be very actively engaged with the new government in a partnership based on a culture of evaluation and analysis and a mechanism design view of regulations and the regulatory process of which the RPC is a part. She should strive to remain committed to the concept and values of better regulation and work hard to make those concepts her own – in the committee, in her academic research and teaching and in leaving her mark on the better regulation framework itself.

“If you see how policies are made you can build better regulatory economics models. Regulation is not a matter of feeding a problem into a machine, turning a crank on a machine and ‘solving’ the problem – politics intervenes, economics intervenes, delays intervene, and the things you should be looking for are not always where they should be. For instance, we spent a lot of time worrying about how – or whether – to scrutinise the impacts when government threatens to regulate, business behaviour changes in anticipation and the regulation is abandoned. I think Caroline will find this useful in her academic work, and her teaching.”

Jonathan says that his decade as an RPC member was “fascinating” and saw many changes and developments. He worked hard to encourage the committee to avoid compromising or watering down its opinions for spurious reasons, arguing against “voices that felt we should temporise or give green ratings to things that did not merit them, for the fear that the political cost of refusing would be too high.” Rather than asking if each contested Bill was ‘the right hill to die on’, he tried to sit down with departments to negotiate where possible, and to publish Red opinions where important analytic principles or impacts were not properly acknowledged.

He also became adept at navigating changing political priorities: “I think the biggest lesson I had to learn along the way was how to sail in the direction of better regulation by tacking across a wind blowing from the deregulatory quarter.”

Jonathan also argued strongly for the committee to be allowed to give its opinions at an earlier stage in the policy process: “A few years ago, we only got to look at things when the bills were laid before Parliament, by which time all the decisions had been made. We commented, many times, on impact assessments that were more ex-post rationalisation than a formative influence on the creation of policy – which led to the most tendentious type of data-mining and the temptation to rely on ‘policy-driven evidence.’ Now the RPC is looking at things much earlier in the process, at the options assessment stage.”

In Jonathan’s experience, this particular challenge is not unique to the UK. He said: “I’m very pleased and proud about our international engagement with RegWatch Europe (a network of similar EU scrutiny bodies) our OECD counterpart and OIRA in the United States. I’ve worked closely with them over the years to share best practice and identify common problems, and there has been lot of progress made on this challenge of ex-ante assessment.

“Another challenge is the need to look back and evaluate regulations to see if they have done what they set out to do. I’ve had a long struggle to champion “post-implementation review” and I think we’ve made good progress. The UK is regarded as setting the world standard in this and we’ve been trying to maintain that. That’s been a really good thing.”

ENDS

THE features "We are Chemistry” programme as an exemplar for a practical and student-centred approach to fostering belonging at university. bit.ly/3V98dDN

Local artists, schoolchildren and their families in Radford, members of Coventry City Council and University of Warwick researchers have teamed up for a unique project to explore what puts people off making their homes more energy efficient.

Dr Lory Barile from the Department of Economics at the University worked with creative partners and experts in Net Zero to develop a series of lessons and practical activities for pupils at St. Augustine’s Catholic Primary School, Radford.

The children carried out science experiments to test out the insulation properties of different materials and built models of houses showing what they could do to make their homes more energy efficient to provide affordable warmth whilst helping to tackle global warming.

Parents and guardians then attended a showcase of their children’s work and their model houses. This provided a relaxed forum to discuss how homes can be better insulated, and what help is available from Coventry council for local residents.

Dr Barile explained: “Coventry has one of the highest levels of fuel poverty in the UK. In some areas of the city half of the households are in fuel poverty – that is, they need to spend at least 10% of their household income on keeping warm.

“If we can find more effective ways of speaking with residents about retrofit measures, we will make a big contribution to the success of Coventry’s net zero agenda.”

The objective of the project was to increase awareness of retrofit measures – such as double-glazing or cavity wall insulation - and to understand barriers to engagement with schemes designed to improve residents’ house energy efficiency.

Dr Barlie explained: “My project uses elements of a method called design thinking, and engages children in creative and interactive activities to help kick-start conversations with Radford’s adult householders.

“By embracing creativity, we hope that this pilot study will be a catalyst for change and inspire other residents in Coventry to increase their take up of government schemes aimed at creating healthy homes, reducing carbon emissions, energy bills, and fuel poverty.

“We also hope that the project will improve the way the council engages with the needs and aspirations of the local community.

“We are now working on creating an online teaching pack that all schools across the City will be able to use to raise the awareness of children and families about domestic energy efficiency.”

Bret Willers, Head of Sustainability & Climate Change at Coventry City Council said: “This pilot project has been very successful in raising people’s awareness as to how to better insulate their homes and how to access free funding to improve energy efficiency.

“We hope that this pilot will contribute to increase the take up of schemes available to households to meet the City’s commitment to tackling climate change and addressing fuel poverty.”

The workshops, facilitated by Warwick researchers, members of the Council, student ambassadors, teachers, and local artists, included an interactive workshop on energy conservation, 3D models of energy efficient homes, and a final celebratory event with adults engaged in discussions on barriers to housing retrofitting, where children’s work and learning was also showcased. Parents turnout was extremely high, highlighting the potential of using similar approaches to work with local communities and address the challenges of climate change.

The information gathered from these workshops has informed the development of a survey that has been distributed to all parents in the school and will guide future iterations of the methodology in areas of Coventry where engagement with retrofit measures is particularly low.

The survey is available here. Coventry residents are invited to fill it in and enter a draw for one of three £50 Love2shop vouchers.

Two members of the Department are taking on leadership roles in the University’s Research Spotlight programme, a new programme designed to promote collaborative work on urgent global challenges.

Professor Daniel Sgroi has been appointed Chair of the new interdisciplinary Behaviour Spotlight, and Professor Thijs van Rens is a member of the leadership team for the Health Spotlight.

A total of six interdisciplinary ‘Research Spotlights’ have been created. Each of them identifies a major global challenge: “They are all serious interdisciplinary areas that are going to make a big difference,” Daniel explains. “The University has asked, ‘what are the big issues facing the world?’ and decided to put a spotlight on each of them and bring people from every department together to work on them.

“This is important because most of the world’s big problems are problems that can only really be solved by disciplines working together – for example, how we deal with climate change, how we tackle political polarisation, how we handle pandemics.

“We know from COVID that medics worked with behavioural scientists so that they didn’t just develop vaccines, they developed strategies to ensure people would take them.

“Our Behaviour Spotlight aims to facilitate interdisciplinary collaboration between behavioural researchers that seek to understand and address some of the biggest problems faced by the world today.

“We can provide seed funding for pilot experiments or to kick-start projects, we can create and financially support new seminar series, workshops and conferences, and help fund early-stage research.

“We have a big network already, inherited from the Behaviour, Brain & Society GRP, but we now want to reach across the whole university. We’ll be inviting anyone doing behavioural research at Warwick to join us as part of our mission to build a university-wide network of active researchers.”

A new Health Spotlight has also been created. Professor Thijs van Rens is one of four academics on the leadership team. He said:

"There are many people at University working on research that is relevant to health, at Warwick Medical School, of course, but also in Business, Chemistry, Economics, Engineering, English, History, Mathematics, Physics, Psychology, Statistics and probably other departments as well.

“Our aim is to build the network and infrastructure to bring these people together so that together we can make better progress on the big questions that cannot be addressed from a single discipline.

“Some of the interdisciplinary areas that we will focus on are technologies in health, prevention and public health, mental health and wellbeing, and interdisciplinary methodologies. Warwick has strengths in all of these areas, and we hope that by providing a supportive environment for collaboration, we can further build on these strengths and encourage ‘blue-skies’ research ideas.”

“My own research on healthy and sustainable diets has made me realise how the quality of the research can benefit from an interdisciplinary team, and how much it helps to secure funding for that research."

Professor Ben Lockwood, Head of the Economics Department, said “I am delighted that Daniel and Thijs have been appointed to these leadership roles and will be contributing to the University’s ambitious interdisciplinary research programme.”

The Spotlight programme is intended to run for at least 10 years and is an indication of the University’s long-term commitment to world-changing research.

 FIND OUT MORE

• Behaviour Spotlight : Behaviour | Research at Warwick
• Health Spotlight: Health | Research at Warwick

We were delighted to attend an event at University Hospitals Coventry and Warwickshire last week for the official opening of their new clinical research facility.

We are proud to report that four of the best Warwick Economics student dissertations have been published in the sixth round of the Warwick Monash Economics Student Papers (WM-ESP) series.

The WM-ESP portal showcases the top innovative and original research papers written by Warwick and Monash undergraduate and postgraduate students. Over 74 papers have been published since its launch in 2021, covering the most significant topics for young economists in todays climate, including the housing market, climate change, gender inequality and healthcare.

We congratulate our four students for this fantastic achievement and for the fascinating research that they have conducted; we wish them all the best for their future endeavours.

You can find out more about their research papers below:

Relevant Links

Top Economics student research showcased on Warwick Monash portal in it's fifth release 9 October 2023

Fourth Suite of student research papers showcased on Warwick Monash portal 9 March 2023