STUDIES
Studies relevant to Wales are also listed on the LE Wales publication page: www.le-wales.co.uk
Study on the economic benefits of privacy‐enhancing technologies (PETs) - July 2010
Full Report >>
This report for the European Commission's DG Freedom, Security and Justice investigates the economic benefits of privacy-enhancing technologies (PETs) for data controllers, with a particular focus on SMEs. Based on consultations with data protection authorities in 12 Member States, as well as on a large-scale survey of businesses and a number of case studies detailing successful deployments of PETs, the study shows clearly that the benefits of PETs are technology-specific as well as dependent on the applications in which PETs are deployed. Only a subset of PETs protect privacy without reducing the utility of data for data controllers. Such 'true' PETs are currently underused, but they hold the promise of substantial economic benefits.
Study analysing possible changes in the minimum rates and structures of excise duties on alcoholic beverages - May 2010
Full Report >>This report for EC DG Taxation and Customs Union considers the arguments and evidence, for and against changes to the existing minimum duty rates for alcoholic beverages that apply across all EU Member States. The overarching objective of the study is to examine whether the current structures of alcohol taxation and the minimum rates laid down for the various beverage categories are adequately supporting the effective functioning of the internal market, or whether distortions are caused and adaptations would be appropriate.
It begins with a description of the market for alcoholic beverages, then assesses the current burdens of taxation and economic relationships between the different types of alcoholic beverages in different Member States, finishing with an assessment of the economic impact on the particular beverages and on the different Member States of potential changes to the alcohol directives compared to the current status quo. Estimates are constructed from a detailed dataset of microdata, compiled especially for the report.
The impact of price frames on consumer decision making - May 2010
Full Report >>London Economics was comissioned by the Office of Fair Trading to undertake a behavioural economics study into how different price frames may impact upon consumer behaviour. The study uses experimental economics to test if consumers incur behavioural biases under five common pricing practices used by firms, including drip pricing and "3 for 2" offers. The observations from the experiment show that consumers do indeed suffer from behavioural biases including loss aversion and endowment effects.
The economic evidence on the barriers faced by lone parents in Wales in accessing employment and training - May 2010
Full Report >>This research for the Welsh Assembly Government aims to study the relative importance of the various choices and constraints faced by lone parents in Wales and to establish a comprehensive list of the barriers faced by lone parents who wish to access work or learning.
Evaluation of OFT Competition Advocacy - April 2010
Full Report >>London Economics was commissioned to conduct an evaluation of the impact of our advocacy interventions. A survey of government officials illustrates that competition advocacy is valued by those receiving the advice, often resulting in changes to delivery and, in cases, to the very objectives of the policy. The report also explores, with the help of three examples, the potential impacts of advocacy interventions and the challenges associated with the evaluation of these impacts.
Model of Estate Costs (MEC) - March 2010
Full Report >>London Economics were commissioned by AUDE (University Association of Directors of Estate) to update and restructure the previous model of the non-residential estate costs. The new model, the Model of Estate Costs (MEC) allows the estimation of annualised financial costs for different types of freehold, leasehold and licence non-residential estate (teaching, research, etc) and of notional carbon emissions.
Competition in upstream sewage and sludge markets - March 2010
Full Report >>This research provides Ofwat with an independent assessment of the level of ‘in-the-market’ competition that already exists in the upstream sewage and sludge sector in England and Wales; an assessment of the scope for increasing competition in the sewage and sludge markets; and some options for further developing upstream competition in sewage and sludge markets.
Using experiments in consumer research - March 2010
Full Report >>Ofcom has published the report “Using experiments in consumer research” by London Economics. The work informs Ofcom about how behavioural and experimental economics can assist regulators in understanding consumer behaviour. The research implemented a controlled economic experiment which considered a number of options for improving the understanding of consumers when choosing telecommunication services funded through call charges.
An Economic Study on Patent Backlogs and a System of Mutual Recognition - January 2010
Full Report >> Presentation >> The report, prepared on behalf of the Intellectual Property Office (IPO), examines the impact of patent backlogs on patent applicants, third parties and the economy more widely and considers the potential impact of further worksharing between patent offices on the size of the backlogs. The available data regarding backlogs is collected and analysed, providing an indication of the extent of the backlog at different patent offices. The study also identifies the potential costs from delays to the patent system, including effects on applicants, a reduction in incentives to innovate, reduced use of the patent system, and the granting of quasi-monopoly power to non-meritorious patent applications. An indicative estimate of the size of these costs suggests that an additional year of pendency could impose costs of around £7.6 billion at the Trilateral patent offices (the USPTO, the EPO and the JPO).
The results of the study were presented and published at an IPO conference in London on 10 March 2010, attended by representatives from global patent offices and other IP stakeholders, including David Lammy (UK Minister of State Higher Education and Intellectual Property), David Kappos (Director of the USPTO) and Alison Brimelow (President of the EPO). The slides from London Economics’ presentation at the conference can be downloaded above.
Space Exploration Review - December 2009
Full Report >>In 2009 London Economics completed an economic analysis for the British National Space Centre (BNSC) of future business opportunities arising from future space exploration investment in the UK. The analysis used a cost-benefit approach and assessed the benefits to the UK in 6 areas: Tele-robotic and autonomous drilling providing access to inhospitable environments on earth for oil and gas exploration; Low cost launch technology for space services (payload), satellite launch and tourism; Communications and navigation technology for lunar communication networks; Robotics for the food sector, nuclear decommissioning and household robots; and, Space Medicine for aged care and intensive care on earth. This work supported the broader Space Exploration Review by BNSC and the Science & Technology Funding Council (STFC).
Study on Consumer Detriment in the area of Dynamic Packages - November 2009
Full Report >>In a report published by EC DG Health and Consumers, London Economics has estimated consumer detriment in EU-27 in the area of ‘dynamic travel packages’. A ‘dynamic package’ is a holiday package where different tourist services (flights, car rental, accommodation, excursions etc.) are put together at the same time to fit the specifications of a consumer. Based on a consumer survey undertaken in 17 EU Member States, the study estimates that 23% of the population in EU-27 have used dynamic packages within the last 2 years and that yearly personal consumer detriment in EU-27 is €1,065 million gross and €1,005 million net (after compensation).
Our study also looked at structural consumer detriment. This detriment arises, in particular, due to some consumers not being aware of the different levels of protection that different types of travel arrangements afford. We concluded that the lack of information by a significant fraction of travellers and the large and growing importance of the dynamic travel package sector would be likely to combine to make structural detriment in this market significant.
Analysis of development in the field of direct investment and M&A - November 2009
Full Report >>The report presents first the latest developments in international capital flows, FDI and portfolio, at a world-wide level and more particularly the level of the EU27 and EU Member States. In addition it provides an analysis of the impact of the financial crisis in 2008-09 on international capital flows and potential stress points in the future.
An assessment of the UK Discretionary Penalties Regime - October 2009
Full Report >>The OFT has today published a report by London Economics on the efficacy of the UK discretionary penalty regime. The study benchmarks the OFT regime against other main jurisdictions and frames it within the theoretical debate on the determinants of an 'optimal' penalties regime. The report informs this question by analysing the academic literature and providing a comparison of the UK with international peers in both the tools used and the fine levels imposed.
The report also emphasises that fines are not the sole way of achieving deterrence. Other policies, such as leniency, personal sanctions and settlements, are important ingredients in any toolkit. In considering these, the report tells us that the overall penalty toolkit for the OFT is good, with recourse to fines and personal sanctions backed by a strong leniency policy.
An analysis of the relationship between school meal take-up and prices – September 2009
Full Report >>London Economics were commissioned by the School Food Trust to undertake an analysis of the relationship between school meal take up and the price charged. Using a range of data sources and approaches – including direct evidence from secondary data sources, School Food trust annual surveys and individual Local Authorities, we estimated that the elasticity of demand for school meals was in the range of -0.70 and -1.00.
The Importance of Wholesale Financial Services to the EU Economy 2009 – September 2009
Full Report >>This report investigates the role, structure and importance of wholesale financial services in the European Union. The specific topic for this year’s report is the EU’s wholesale finance market and its various competitors under a range of differing scenarios, such as changing demographics, the rise of Asia and emerging market economies, the impact of regulation and the consequences of recent market turbulence. The impact of these forecasts for the EU growth rate, its country constituents and its key competitors is also considered.
Evaluation of a sample of OFT's consumer enforcement cases - October 2009
Full Report >>This study for the Office of Fair Trading reviews the effectiveness of six past consumer protection interventions by the OFT. The project carried out six case studies and in each case it identified the sources of consumer detriment and evaluated the reduction in consumer detriment attributable to the interventions of the OFT. The six cases covered involved: price transparency in online sales of flight tickets; business practices of a double glazing company; airline terms and conditions; business practices for online sales of consumer electronics; selling practices in a book club; and consumer rights in the area of credit card usage. Based on the six case studies London Economics considered more generally how to monitor performance in relation to future interventions.
Road Testing of Consumer Remedies - July 2009
Full Report >>This report was jointly commissioned by the Office of Fair Trading (OFT) and Competition Commission (CC) from London Economics. They were asked to examine the potential techniques that could be used by the OFT and CC to evaluate remedies designed to impact on consumer behaviour prior to their implementation.
Analysis of the impact of raising private fee contributions on participation in Further Education - July 2009
Full Report >>London Economics were commissioned by the Department for Business, Innovation and Skills to undertake a detailed econometric analysis of the impact of raising private fee contributions on participation in Further Education. The analysis was based on the survey of all Further Education Colleges in England, as well as a detailed analysis of the Individual Learner Record. The analysis illustrated that the elasticity of demand for Further Education amongst those currently paying is relatively inelastic – ranging at between -0.1 and -0.4 depending on the model specification and data source used. There was some variation in the results depending on the type and subject of course, the extent of employer support and the personal characteristics of students.
The evolution of the high-volume retail sector in Europe over the past 5 years - July 2009
The overarching aim of this study is to provide a complete and detailed insight of the evolution of high-volume retailers (HVR) in the food and clothing sectors in different EU Member States, over the last 5 years.
The main conclusions from the analysis are the following. The number of HVR (firms with more than 5% market share) in the food sector is around 5 in each country. The combined market share of the top-5 firms (C5) in the food retail market varies significantly between countries. Germany and the UK are the most concentrated markets with over 70% of the market controlled by the largest five firms. The French market is also comparatively concentrated (C5 of 60%) whereas in Italy, Spain and the Czech Republic it is between 30% and 45%. Over the last three years, there have been significant increases in market concentration in the UK, the Czech Republic, Romania and Spain.
The clothing retail sector remains fragmented across the selected countries where data was available. The C5 in the UK is the highest with 35%, in Germany is second (around 25%), while in Italy and France the top-5 firms control less than 20% of the market. The report provides other interesting conclusions on the evolution of this sector.
The use of needs based formulae in the allocation of public resources - July 2009
Full Report >>This report for the Independent Commission on Funding and Finance for Wales (the ‘Holtham Commission’) reviews the international literature on the use of needs based formulae for allocating public funds. The report provides a discussion of some of the key issues that are associated with constructing and using needs based distribution formulae and provides an indication of the types of formulae in use.
An Exploratory Study into the Effect of a Change in Business Ownership on Employment and Wages – June 2009
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The main aim of this exploratory study is to draw together economic evidence relating to the effect of a change in business ownership upon a range of firm outcomes; with particular focus on employment and wage impacts. The study presents data on changes in business ownership for Wales in comparison to nine other European regions and reviews the literature on the effects of changes in business ownership, particularly on employment and wages.
London Living Wage Benefits Study - May 2009
Full report » 
; Executive Summary ;
Sample Contractor Data Request.pdf ; Sample Contractor Questionnaire.pdf
A growing number of organisations have committed to providing the pay and conditions of the London Living Wage to all staff, including contracted support staff. London Economics were appointed by the Greater London Authority (GLA) Economics to undertake an independent study of the social and economic benefits to organisations (both buyer and contractor) and employees from implementing London Living Wage provisions. This report outlines the methodology and main findings of this study.
Review of non-residential social care charges in Wales - May 2009
A report with accompanying baseline assessment, produced by LE Wales for the Welsh Assembly Government, which provides an analysis of local authority charging for non-residential social care services and of the policy options for introducing more consistency in such charging.Innovation in the Water Industry in England and Wales - February 2009
As part of the independent Cave Review of competition and innovation in water markets, London Economics undertook a benchmarking exercise of innovation across all water and sewerage companies in England and Wales. The work also provides international comparisons of innovation,, and assesses the barriers to innovation and how these may be addressed.Extended Schools: Establishing a Baseline Methodology to Estimate the Impact of the Extended School Programme on Attainment - January 2009
Full Report >>London Economics were commissioned by the Department for Children, Schools and Families to establish a methodology for the evaluation of the Extended School programme. The analysis involved a detailed analysis of the National Pupil Database and Annual Schools Census, alongside administrative information relating to the Extended Schools initiative from the Training and Development Agency for Schools. The analysis relies on a propensity score matching and difference in difference methodology to isolate the impact of Extended Schools from other education initiatives and trends in attainment over time.
An analysis of teacher mobility within the European Union - December 2008
London Economics recently undertook an analysis of teacher mobility within the European Union. The study undertakes a quantitative and qualitative analysis of teacher mobility across the European Union Member States where information exists. It explores the relative benefits, costs, strengths and weaknesses of the various mobility programmes. On the basis of case studies we identify mobility practices that have been successful but also look at areas where some improvements may be made. The study provides policy recommendations at European, national and school decision-making levels that might be useful to improve the design and the implementation of mobility programmes.Economic benefit of the Consultative Committee for Professional Management Organisations (CCPMO) - December 2008
Full report » ; Executive summary »
Economic impacts of large scale infrastructure investments – review of international evidence - November 2008
This study reviews the international literature on the economic impacts of large scale investments in both physical and intellectual infrastructure. Evidence across a range of sectors is examined, including transport, ICT, education and renewable energy.Evaluation of the CAP policy on protected designations of origin (PDO) and protected geographical indications (PGI) - November 2008
The study is based on two elements. A descriptive part provides a detailed analysis of the development of the Protected Designations of Origin (PDO) and Protected Geographical Indications (PGI) schemes over the course of the evaluation period, including the regulatory framework and the implementation mechanism underpinning the schemes. The second part of the project focuses on the effectiveness of the PDO/PGI scheme and analysis in particular the use of the system over the evaluation period and its results and impacts. The main information sources for the evaluation were primary data available from the DG Agriculture and Member States, surveys of public authorities and consumers, and case studies in 10 Member States involving detailed surveys of producers and other stakeholders of the PDO/PGI value chain, consumer associations and public authorities.
Analysis of development in the field of direct investment and M&A - November 2008
This study examines first the developments in international capital flows, especially FDI, in 2007. Next, as a special topic, it undertakes an in-depth quantitative analysis of the difference in economic performance between domestically-owned and foreign-owned business in Europe. The performance indicators used in the analysis are turnover, employment and profitability in levels and over the nineties.
Impact evaluation of the Tradeshow Access Programme (TAP) - September 2008
Full report >> Executive Summary >> Annexes >>
Study on the role and regulation of non-credit institutions in EU mortgage markets - September 2008
This study analyses non-credit institutions in EU Member State mortgage markets. The study identifies Member States where non-credit institutions are allowed to provide mortgage credit; provides information on the regulation and supervision of these undertakings; the funding techniques non-credit institutions are allowed to use; the size of the mortgage lending activities of non-credit institutions, both domestically and cross-border; and information on the barriers faced by non-credit institutions when engaging in cross-border lending activity. The study covers the EU27.Development of an Approach to Distributing Supporting People Monies to Local Authority Areas - September 2008
LE Wales were commissioned by the Welsh Assembly Government to examine the feasibility of introducing a formula-based mechanism for the distribution of Supporting People funds to local authorities. There was no presumption that such a mechanism was feasible and the intention was that any such mechanism should reflect the distribution of ‘need’ for housing-related support services.2008 SMG model - August 2008
The Model, with updated parameters, allows HEIs to compute their own estimates of the sustainable and total estate provisions using either a range of default input values or their own institution-specific information and assumptions. The Model is accompanied by a User Guide. The cost model allows users to calculate both the cost of maintaining the estate in a steady state and the total cost of the estate taking into account the opportunity cost of the funds tied up in the estate. The benchmarking tool allows users to compare under different assumptions the size of their non-residential estate with the size the benchmark tool.The Importance of Wholesale Financial Services to the EU Economy 2008 – July 2008
This report investigates the role, structure and importance of wholesale financial services in the European Union. The specific topic for this year’s report is the EU’s wholesale finance market and its various competitors under a range of differing scenarios, such as changing demographics, the rise of Asia and emerging market economies, the impact of regulation and the consequences of recent market turbulence. The impact of these forecasts for the EU growth rate, its country constituents and its key competitors is also considered.Impact assessment for proposed changes to UK copyright law - June 2008
London Economics was commissioned by the UK Intellectual Property Office (UK-IPO) to provide an impact assessment of four different options for the revision of the current conditions for exemption from payment of music licensing fees for the public performance of musical work. The impact assessment sought to understand, and where possible quantify, the likely costs and benefits of implementing each of the options, including the likely impact on the fees collected by the collecting societies and the probable effect on the relevant users.Assessing Current and Potential Provision of Free School Meals – June 2008
London Economics completed a report for the School Food Trust examining the eligibility criteria relating to Free School Meals, and the costs to the Exchequer that might be associated with a range of alternative policy options. The report illustrates that there are a large number of children that are entitled to free school meals but are not registered to take up this right. The report shows that the current eligibility criteria are equivalent to a household income of approximately £10,000 per annum, while HM Treasury definition of relative poverty is estimated to be closer to £12,000.Analysis of the regulatory environment facing the owners of London Heathrow – June 2008
London Economics recently completed an analysis of the regulatory environment facing the owners of London Heathrow on behalf of London First. The report was launched by the Secretary of State for Transport – Ruth Kelly – on the 25th June 2008.Review of data relating to those eligible to teach mathematics or science – May 2008
London Economics recently completed a report for the Training and Development Agency for Schools assessing the characteristics and outcomes associated with those eligible to teach maths or science both inside and outside the teaching profession. The work involved a detailed analysis of the Labour Force Survey and Teacher Information Line (TIL) data to assess the extent to which information contained in the TIL was representative of the wider population of individuals eligible to teach maths and science, as well as considering the economic outcomes (such as employment and earnings) achieved by individuals in possession of degree level qualifications conferring eligibility to teach maths or science.Economic Impacts of Increased Flexibility and Liberalisation in European Spectrum Management – April 2008
London Economics was commissioned by a group of European communications sector companies to carry out an independent review of the available evidence examining the costs and benefits of greater flexibility in the use of radio spectrum. This report sets out the findings of that review and is based on existing studies that examine the actual and potential impacts of spectrum liberalisation.Interim Evaluation of Welsh Medium Teaching Schemes – April 2008
This interim evaluation was undertaken by LE Wales and Dateb for the Higher Education Funding Council for Wales (HEFCW). The main objective was to assess the extent to which the Postgraduate Scholarship Scheme and the Postdoctoral Teaching Fellowship Scheme had been successful to date and to identify any lessons about their operation that might be used to inform future developments. It involved both desk research and interviews with stakeholders.Research and analysis of UK Trade & Investment’s regional trade operations – March 2008
In April 2007, UK Trade & Investment (UKTI) and the nine Regional Development Agencies (RDAs) commissioned London Economics to produce an evidence-based analysis of the best options for raising UK productivity and meeting the interests of companies in the English regions through supporting business internationalisation. London Economics were tasked with providing an appraisal framework and subsequent analysis of a number of options associated with the provision of international trade advisory services.Study on the Impact of Co-operative
Groups on the Competitiveness of their
Craft and Small Enterprise Members - January 2008
London Economics were commissioned by EC DG Enterprise and Industry toundertake an in-depth study on the impact of co-operative groups on the
competitiveness of their craft and small enterprise members. The analysis
undertaken was based on extensive identification of both co-operatives and
their members across the European Union; primary data collection of
information on service provision using telephone surveys; and the collection
of secondary data on key financial metrics using the Amadeus data set that
covers approximately 10 million companies across the European Union.
An analysis of higher education student finance regimes in the United Kingdom - November 2007
London Economics recently produced an analysis of higher education student finance regimes in the United Kingdom as well as for a number of other countries internationally. The report was undertaken on behalf of Million+.
An economic impact analysis for the Marylebone Cricket Club (MCC) - September 2007
London Economics recently undertook an economic impact analysis for the Marylebone Cricket Club (MCC). This analysis assessed the impact of hosting major cricket matches at Lord's on the local and London economies.IBPT Decision on the approach to the regulation of price squeeze in telecommunications markets - July 2007
London Economics assisted the Institut Belge de Poste et Telecommunications with the development of IBPT’s guidelines on its approach to the regulation of price squeeze in telecommunications markets. LE, working with legal advisors McDermott Will & Emery/Stanbrook LLP, advised on regulatory practices in other countries, on the appropriate structure of the test and on the economic and legal implications of alternative approaches to assessing whether or not a price squeeze is present.A proposed model for assessing the economic impact of proposed changes to the law relating to non-disclosure and misrepresentation - July 2007
This report, published by the Law Commission as part of the Consultation Paper No 182 INSURANCE CONTRACT LAW: Misrepresentation, Non-Disclosure and Breach of Warranty by the Insured, sets out a model for assessing the economic effects of the proposed reforms. The study presents the elementary stages for the provision of that model for further consultation. However, the modeling is currently based on a number of assumptions and hypotheses and should not be seen as the definitive or final approach upon which further analysis may take place. Rather, it is an initial attempt to conceptualise the analytical framework and highlight both the assumptions and information necessary to undertake a more rigorous analysis.Impact Assessment Relating to the Economic and Governance Evolution of Space in Europe - April 2007
London Economics were one of the contributors to this RPA led study for the European Commission’s DG Enterprise & Industry. The research reviewed the market for space and space related services, including the development of a number of demand scenarios, and also reviewed the roles of the key public sector actors and undertook an analysis of potential future management models.
Review of statistical planning issues underlying Welsh medium initial teacher training – March 2007
LE Wales advised the Welsh Assembly Government on an approach to modelling the supply and demand of initial teacher training (ITT) places for Welsh medium teachers as a contribution to the Assembly Government’s work on ITT intake planning. We also advised on appropriate data sources and on a definition of what constitutes a Welsh medium ITT course. Our report is available in both Welsh and English.Structure and Performance of Six European Wholesale Electricity Markets in 2003, 2004, and 2005 - February 2007
The report provides an in-depth assessment of the electricity wholesale markets in Belgium, Germany, Spain, France, the Netherlands and Great Britain with a view to determining how competitive markets were in 2003, 2004 and 2005. The report provides summary key results for traditional market structural indicators, electricity-specific measures of market structure and market outcome measures. It also provides the results of a range of statistical analysis. The main results are also subjected to sensitivity tests and a range of alternative scenarios are assessed.The economic benefits of a degree - February 2007
London Economics were commissioned by Universities UK in association with PricewaterhouseCoopers LLP to undertake a review of the economic evidence relating to the benefits of higher education qualification attainment. The report illustrated the significant benefits from undertaking a degree; the variation of economic outcomes depending on a number of factors; as well as the likely impact of differential top up fees on the economic rate of return to degree level qualification attainment. The report was launched in the Palace of Westminster in February 2007.International case studies of the commercial use of public information - December 2006
This report, undertaken for the OFT as part of its market study into the commercial use of public information, provides background information on the general public sector information policy of Australia, Sweden and the United States and examines in greater detail the policies and practices of three different Public Sector Information Holders (PSIH) in each country, namely the Meteorological Offices, the Company Registers, and the National Mapping agencies.Incentive Proposals for Quality of Service Measures in Finnish Electricity Distribution - November 2006
This report, prepared for the Energy Market Authority of Finland (EMV) reviews how customer quality of service be regulated and recommends that the regulation include some form of incentives that result in rewards or penalties if measured targets are not met. It also proposes that specific regulations be enacted for separate service categories and reviews these proposed regulations in detail.Research into Payment Protection Insurance in the UK- October 2006
The report reviews the relevant payment protection insurance market and analyses those characteristics of the market that may be limiting competition and giving rise to consumer detriment. The report also identifies a series of additional data that would be desirable to obtain to further the analysis of the sector.
The Case for State Lotteries - September 2006
The report provides a comprehensive overview of the gaming market in the EU25 and assesses the likely impact of full liberalisation of gaming activities on lotteries and good causes funded by lotteries. The report also reviews the wider socio-economic effects of gaming.Study on the Economic Impact of Auditors’ Liability Regimes - September 2006
Full report » | Presentation »
This study focuses on the market for statutory audits of large companies in Europe. It reviews first the state of the international market for audit firms in the EU. Next, it examines the insurance market for statutory audits. It then examines the likely short-run and long-run effects of the possible disappearance of one or more of the Big-4 firms. Next, it focuses on the economic impact of alternative auditor liability regimes. Finally, it reviews and assesses different options for limiting auditors’ liability.
Evaluating the Cumulative Impact of Safety, Health and Environmental Regulation on the UK Industrial Coatings, Aerosols and Speciality Chemicals Sectors - August 2006
This report provides estimates of the cost of compliance with current safety, health and environmental regulations in excess of the minimum costs necessary to ensure current levels of protection, describes the perceived benefits of these regulations and sets out a number of proposals for reducing the cost of compliance with the current regulations while maintaining current levels of protection.An Assessment of the Regulatory Framework for Electronic Communications – Growth and Investment in the EU e-Communications Sector - July 2006
The study provides first data on investments in the electronic communications markets in the EU Member States and analyses sources of differences across Member States, sectors and competitors (incumbent versus new entrants). Next, provides a comparative analysis of growth of the electronic communications sector in the EU and in other main geographical markets. Finally, it focuses on aspects of the electronic communications regulatory framework that could be improved to stimulate growth and investments.
Developments in car retailing and after-sales markets under Regulation 1400/2002 - June 2006
This report reviews market developments in automotive retailing and after-sales sectors following the entry into force of the Regulation No. 1400/2002 (henceforth referred to as BER 1400/2002 or simply BER), the new EC regulation covering distribution and after sales services of new motor vehicles in the EU. BER 1400/2002 replaced the previous Regulation (Regulation 1475/95). The report focuses on the competition implications of the new rules for a) the distribution of new cars; b) the car service and repair sector; and, c) the market for automotive spare parts. The study covers developments in twelve Member States, namely Denmark, Germany, Estonia, Spain, France, Italy, Hungary, the Netherlands, Poland, Portugal, Sweden, United Kingdom. The focus of the study is on developments over the period 1997 – 2004, with a particular emphasis on any changes during the period following the entry into force of the new BER.
The costs of Welsh medium provision in higher education institutions - June 2006
In 2005, London Economics were commissioned by the Higher Education Funding Council for Wales (HEFCW) to undertake a study to determine in detail the additional costs that can be associated with delivery of courses and modules through the medium of Welsh. Our final report was presented to a sector seminar in September 2006 and HEFCW subsequently made changes to the arrangements for the Welsh medium funding premium.
Impact assessment of implementing GHS (Globally Harmonised System of Classification and Labelling of Chemicals) – trade effects - May 2006
In July 2003, the Globally Harmonised System of Classification and Labelling of Chemicals (GHS) was formally adopted by the UN ECOSOC. Its aim is to bring together the major world classification and labelling (C&L) systems of chemicals (substances and preparations/mixtures) into a single new system. This part of the impact assessment provides empirical evidence on the likely trade impacts of GHS implementation. The emphasis is on the chemicals exports from and imports into the EU area. The methodology employed for this work has three main components: estimation of an empirical relation between trade flows and trade barriers; estimation of the change in the level of relevant barriers resulting from GHS implementation; and estimation of the total trade impact of GHS, taking into account the two above.
Study to Inform the Policy Review of the Aggregates Levy Sustainability Fund - April 2006
This study undertaken assesses the costs and benefits of completed and current projects funded by the Aggregates Levy Sustainability Fund Programme during the period 2004 to 2007. It also aims to investigate whether continued funding after 2007 would provide value for money and, if so, what activities should be funded.
The Cost Of Space - 2005
This report provides a methodology to calculate and benchmark the total cost of any higher education institution’s (HEI’s) non-residential estate in the UK.
Drivers Of The Size Of The HE Estate - 2005
The report develops an estate size benchmarking tool that is based on a statistically estimated relationship between the size of the non-residential estate and a number of drivers such as income, location, characteristics of the estate and composition of the student body.
Evaluation of the National Top-Up to the EU School Milk Subsidy in England - December 2005
The report addresses the relevance, effectiveness and efficiency of the scheme; assesses the rationale for the National Top-Up scheme, including its suitability as a policy instrument for the consumption of milk by children in England; examines the effectiveness of the scheme in achieving its intended outcomes, giving consideration to the level and pattern of take-up of the scheme by LEAs; considers the efficiency of the scheme and the value for money it represents; explores whether the scheme has given rise to any unintended outcomes, either beneficial or detrimental; assesses whether the scheme contributes to Government objectives; and makes recommendations on how to improve the scheme in terms of its effectiveness and use of resources.
Study on the returns to various types of investment in education and training - December 2005
This report for DG Education and Culture analyses various investment scenarios for achieving the Lisbon targets in the educational field and compares investment costs with its related benefits. The analysis of the investments and economic returns is done at a private and social level for the different Lisbon targets and for each Member State.
Project to Assess the Impact of the New EU Chemicals Strategy (REACH) and to Develop a Model - Economic Model and MatLab Code - September 2005
The report assesses the economic costs along the supply chain of the testing and registration phase of the new chemicals policy. The analysis includes an assessment of the impact on the prices of the chemical and of the products that successively use the chemical along the supply chain and how these changes in prices affect downstream producers and final users, and an assessment of the impact on availability of product varieties (product withdrawals) and how these withdrawals affect downstream producers and final users.The Costs and Benefits of Integration of EU Mortgage Markets - August 2005
London Economics was commissioned by the European Commission - DG Internal Market and Services to study the costs and benefits of new initiatives that would lead to the full integration of markets for residential mortgages and home loans in the 25 EU Member States. The report estimates these costs and benefits and also assesses the degree to which EU mortgage markets are integrated at present and the obstacles to their further integration.
Securities trading, clearing, central counterparties and settlement in EU 25 – an overview of current arrangements - June 2005
The report provides a description of the securities trading, clearing and settlement infrastructures of the cash equities and bonds markets in the 25 Member States of the EU (as of March 2005) and an assessment of the nature of the vertical agreements between the trading, clearing and settlement infrastructures.
The impact of size-based pricing on mail users - 2004
This report presents the results of London Economics’ study for Postwatch concerning the impact of the change to size based pricing (SBP) proposed by Royal Mail in August 2003. The proposal represents a major change to Royal Mail’s pricing structure and would affect most postal users to varying degrees. The proposed price changes vary greatly across weight categories and product types. Some of the changes would be enormous. Some prices would increase by more than 200%, while others would decrease by more than 50%. In general, the prices of lighter products with off-format shapes would rise, while the prices of heavier items with more standard shapes would fall. The study assesses the impact of these changes on a wide range of commercial and non-commercial users.
A Review of the All-Island Financial Services Sector - November 2004
This report for InterTradeIreland provides an analysis of the size, scale, employment and earnings of the sector in Northern Ireland, Ireland, and in the island as a whole. It also assesses the extent of cross-border trade in financial services and the significance of perceived barriers to cross-border trade. Finally, the report examines the options to further integrate financial services in the island of Ireland.
Structure and Functioning of the Electricity Market in Belgium in a European Perspective - October 2004
London Economics was commissioned by the General Council of the “Commission fédérale de Régulation de l’Electricité et du Gaz” (CREG) to analyse whether, and to what extent, the current federal regulation makes the markets for production, trading and supply of electricity competitive or potentially competitive and, if not, what remedies could be implemented. The report takes into account electricity market developments in major European countries, especially neighbouring countries, presents detailed findings regarding the structure and functioning of the three Belgian electricity markets of interest (generation, trading, and supply), analyses structural and regulatory impediments to competition in these markets, and proposes a range of remedies to address these impediments.
Ex-post Evaluation of the Impact of Rescue and Restructuring Aid on the International Competitiveness of the Sector(s) Affected by Such Aid - June 2004
London Economics was commissioned by the European Commission - DG Enterprise to evaluate the impact of rescue and restructuring aid on the international competitiveness on the sectors affected by such aid. This ex-post evaluation focuses on the survival of companies having received rescue and/or restructuring State aid, the social and economic effects of such aid on the aid-receiving companies, and the impact of State aid at the sectoral level.
A Synthesis of the Mid-Term Evaluations of the FIFG 2000-2006 - March 2004
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This report for the European Commission - Directorate General For Fisheries summarises and highlights the key findings of 49 mid-term evaluations of the Financial Instrument for Fisheries Guidance 2000-2006. The results of the report were presented at the conference organised by the European Commission "Steering Towards 2007-2013: What Financial Support for the Common Fisheries Policy and Coastal Zone Development?" held in Bundoran, Co. Donegal, Ireland on May 27-29, 2004.
Wealth Creation from Science, Engineering and Technology - March 2004
The Engineering and Technology Board commissioned London Economics to undertake a study of the contribution of Science, Engineering and Technology (SET) to the wealth and quality of life in the United Kingdom. We use two approaches in estimating the contribution of SET in the economy: the contribution of those sectors of the economy that employed SET skills most intensively, and the direct output effect of all SET workers in the economy. We look at the contribution that SET made to the level of GDP, to the growth rate of GDP, and to the growth rate of labour productivity. In making the analysis, we compare the performance of the UK economy against the French, German, Japanese and US economies.
Overview of EU25 securities trading, clearing, central counterparties, and securities settlement - February 2004
The report for the European Commission - DG Competition provides a pan-European overview of trading, clearing and central counterparties, settlement, and custody, of equity, corporate and government bonds, and the related infrastructures (exchanges, clearing institutions and central counterparties, central securities depositories and international central securities depositories at primary level and international central securities depositories and banks at secondary level). In addition, the report analyses the recent evolutions in the sector. The second part of the report presents the situation in each Member State (EU25) as of February 2004 and provides comments on issues of potential competition scrutiny, such as exclusive arrangements and access.
Investigation of the determinants of farm-retail price spreads - February 2004
London Economics was commissioned by the Department for Environment, Food and Rural Affairs (Defra) to undertake an econometric analysis of the factors that have affected the spreads between farm gate prices and retail prices. According to the terms of reference of the project, the study was to focus on developments in the United Kingdom and a number of other EU Member States and cover a range of agricultural products. Moreover, particular attention was to be paid to the buying power of food retailers as stronger buying power is often cited as one of the reasons explaining weak farm gate prices.
Financial markets and the funding of enterprises in the European Union: what future? - 2003
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This report uses scenarios to explore the future landscape of the financial services industry in the European Union. The question posed is whether the structure of business finance will shift towards greater reliance on capital markets, equity and bonds, and away from bank finance. After reviewing the key factors that drove change in the nineties, the report examines whether these factors are likely to continue to drive change in the years ahead; looks at new pressure points and, finally, draws three scenarios for the future.
Study of the Consequences of Further Liberalisation of the Postal Market in Norway - December 2003
This Report for the Norwegian Ministry of Transport and Communications provides consultancy advice on the consequences of further liberalisation of the postal market in Norway. The study evaluates the impact of postal liberalisation, based on qualitative analysis and quantitative modelling. Under each of the models, we assess the impacts on liberation across various scenarios, ranging from preserving the status quo to abolishing the reserved area. The results of the analysis show that the estimated impact on the profitability of Norway Post from full liberalisation is between NOK 200 million and NOK 400 million, whereas the incremental impact of accelerated liberalisation is estimated to be about NOK 147 million. In addition, we also evaluate the impact of postal liberalisation on various groups like customers, business, postal operators, government, rural areas and evaluate the consequences on employment, uniform tariffs, USO, economies of scale, effective competition and national goals.
London and Foreign Direct Inward Investment - November 2003
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London Economics was commissioned by Greater London Authority (GLA) Economics to undertake a study on how London as a world city contributes to attract foreign direct inward investment (FDI) into the United Kingdom, and the risks to London’s attractiveness for FDI in the future. The report reviews recent trends in direct foreign inward investment into London, examines the impact and drivers of such investment and discusses some potential threats to sustaining recent trends.
PR04 Scope for Efficiency Studies - November 2003
This report for OFWAT provides an assessment of the scope for future operating and capital efficiency in the water and sewerage industries by using both a "top-down" and "bottom-up" approach. The top-down approach assesses the scope for future efficiency improvements by analysing past productivity trends in the water and sewerage industries and by undertaking a comparison with "similar" industries. The "similar" industries have been selected by using cluster selection techniques. The component-based, or "bottom-up", approach estimates efficiency gains for operating expenditure and capital costs for each component activity of water and sewerage. An evaluation of potential savings from the adoption of cost-reducing technologies and management and procurement practices was also undertaken as a part of the study. Overall, our analysis suggests that operating and capital efficiency improvements in the range of 0.1% to 1.3% are achievable in AMP4.
ICT and GDP Growth in the United Kingdom: A Sectoral Analysis - April 2003
This report for Cisco Systems quantifies the contribution of Information and Communication Technologies (ICT) to output and labour productivity growth for twelve sectors of the UK. By using growth accounting methods, this study shows that the contribution of ICT to economic performance is substantial for most of the UK sectors.
“Perhaps the most important study this year was released by technology group Cisco Systems but carried out by independent consultancy London Economics. It showed that investment in information and communications technology (ICT) accounted for 25 per cent of total output growth in the UK and transformed labour productivity”. (The Daily Telegraph, 07/07/2003).
London Economics Review of European Union Electricity Markets - April 2003
This study reviews the regulatory regimes in the EU member states and examines how the differences in regulatory policy and openness to investment are likely to have had an impact on new investment.
Assessment of Restrictions in the Supply of Professional Services - March 2003
The London Economics/Indecon report analyses competition and restrictions in eight profession in 3 sectors: engineers and architects, medical practitioners, veterinary surgeons, dentists and optometrists in the medical sector and solicitors and barristers in the legal sector. The report notes that three types of restrictions are common across the eight professions. These are restrictions on entry to each profession, limitations on the amount of advertising practitioners can undertake and, with the exception of architects, engineers and optometrists, restrictions on the organisational form.
Comparing the economic performance of family businesses and non-family businesses - 2002
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This report for the European Foundation for the Improvement of Living and Working Conditions reviews the performance of family and non-family businesses. LE’s work surveys the key characteristics of family businesses and examines the empirical evidence comparing performance with non-family businesses. Four themes appear salient in linking the key characteristics with the business performance: ownership and control, management strategies and style, long-term view, and human resources.
Study on a Methodology for Identifying Sectors with Serious Structural Problems - December 2002
London Economics was commissioned by DG Competition state aid II to develop a general methodology to be used by EC officials to draw up an initial “List of sectors” where serious structural problems prevail. In the report we set out an analytical framework that reviews various aspects (sales, output, employment) of an industry when the industry is in decline or faces deep structural problems. The study investigates the availability of relevant data sources at the EU or EEA level, and proposes a methodology for establishing a “List of sectors” that is robust and feasible on the basis of our findings on the availability of data.
Quantification of the Macro-economic Impact of Integration of EU Financial Markets - November 2002
The report for the European Commission-DG Internal Market assesses the likely impact of financial market integration on equity and bond markets. Through macroeconomic simulations it quantifies the impact on investment, GDP and employment for each of the EU countries.
"The study is the first substantive piece of empirical research on the impact of financial integration on the cost of share trading in Europe.” (European Commission)
“This research highlights the powerful role that efficient and liquid financial markets can play in complementing bank-based finance to support growth and employment in Europe." (European Commission)
"This study is further proof that financial market integration has an important role to play in raising the long-run growth potential of the EU economy. Financial integration will reduce the cost of financing for companies and foster a better allocation of capital. Higher growth and lower capital costs will translate into welfare gains for European citizens". (Pedro Solbes, EC Commissioner for Economic and Financial Affairs).
“London Economics recently produced a report (…) attempting to measure the macroeconomic impact of financial integration. It is an excellent report, both for the wealth of information it provides, and for its econometric ingenuity”. (Professor Luigi Spaventa, Chairman of Commisione Nazionale per le Società e la Borsa, Italy)
Assessment of the benefits of universal postal service to Consignia - March 2002
The report for Postwatch evaluates and quantifies the benefits of Consignia’s (Royal Mail) Universal Service Obligation (USO). The study reports the results of the application of a general economic model using pricing and production decisions by a multi-product monopolist to the postal sector. The methodology employed uses demand and supply side models and techniques to evaluate the full impact on the postal operator that results from changes in prices and quantities.
Investigating the Use of Regional Economic Forecasting Models in Wales - January 2002
The report for Future Skills Wales reviews the economic forecasts and forecast models used by Education and Learning Wales (ELWa) and its partners, sets out a number of recommendations on how greater benefits could be derived from the forecasting-related activities, and examines how regional data and regional forecasts can be used in a skills’ gap projection exercise.
Polarisation and Financial Services Intermediary Regulation - July 2000
The report to the FSA studies the economic effects of a range of possible options for changes to the polarisation regime.
Working Conditions in Hotels and Restaurants: National reports for France, Italy, Portugal and Sweden
Full report France » 
| Full report Italy » | Full report Portugal » | Full report Sweden »
The reports for European Foundation for the Improving of Living and Working Conditions assess the impact of trends such as globalisation, increased competition and developments in technology, and look at the role of social dialogue in the sectors. They also feature several examples of interesting and innovative practice at local and national level aimed at improving the quality of work for workers in the hotels and restaurants sector.
Working Conditions in Road Transport: National reports for France, Italy, Portugal and Sweden
Full report France » | Full report Italy » | Full report Portugal » | Full report Sweden »
The reports for the European Foundation for the Improving of Living and Working Conditions assess the impact of trends such as globalisation, increased competition and developments in technology, and look at the role of social dialogue in the sectors. They also feature several examples of interesting and innovative practice at local and national level aimed at improving the quality of work for workers in the hotels and restaurants sector.
Examination of UK Milk Prices and Financial Returns
This report presents the results of the empirical analysis of the UK dairy value chain that LE undertook for the Milk Development Council. The study examines milk prices and financial returns from the UK dairy supply chain by looking at several factors. First, we consider the relative bargaining power of the various economic actors of the dairy chain. Second, we analyse the demand of milk and its sensitivity to price and income. Third, we study the efficiency of the dairy chain and the value of the basket of dairy products produced in the UK. Fourth, we investigate price transmission between farmgate and retail prices of milk for four different EU countries. Fifth, we develop a structural model explaining the spread between the retail and the farmgate price of milk. In addition, the study also examines the link between the UK farmgate milk price and the exchange rate.