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Luis Garicano

@lugaricano.bsky.social
2.5K followers 98 following 102 posts

Economist. Professor @LSE SPP My webpage: sites.google.com/site/luisgaricano Substack (innovation, econ., Europe): SiliconContinent.com My book on the Euro is out on June 2025.

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Reposted by Luis Garicano
Christian Odendahl @codendahl.bsky.social · 05/01/2026
The EU can only do so much in this new world, and it is odd to pretend otherwise. I thought that @lugaricano.bsky.social provided us with a needed provocation in this piece. constitutionofinnovation.eu
constitutionofinnovation.eu
The Constitution of Innovation: A New European Renaissance
An academic paper examining Europe's innovation challenges and proposing a constitutional framework for economic renaissance.
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Karen Attiah @karenattiah.bsky.social · 18/11/2025
I will never forget having to edit Jamal’s final, posthumous piece for the Washington Post, after he was murdered. He was calling for free expression in the Arab world. You can read it here : www.washingtonpost.com/opinions/glo...
washingtonpost.com
Opinion | Jamal Khashoggi: What the Arab world needs most is free expression
The Arab world needs a modern version of the old transnational media so citizens can be informed about global events.
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Bomelito @bmlto.wsocial.eu · 13/11/2025
🇪🇺"Europe was at the cutting edge of innovation in the lifetime of most Europeans alive today. It could again be a continent of builders, traders and inventors who seek opportunity in the world’s second largest market. The European Union does not need a new treaty or powers." @lugaricano.bsky.social
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Ben Schroeter @benschroeter.bsky.social · 10/11/2025
Must read by @lugaricano.bsky.social and @competitionprof.bsky.social. constitutionofinnovation.eu
constitutionofinnovation.eu
The Constitution of Innovation: A New European Renaissance
An academic paper examining Europe's innovation challenges and proposing a constitutional framework for economic renaissance.
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Andy Langenkamp @andylangenkamp.bsky.social · 04/08/2025
@lugaricano.bsky.social: You cannot win a trade war against the army that protects you. Our weakness is Russia. With a threatening Russia on our doorstep, and the Ukraine war ongoing, Europe cannot afford any break with the US www.siliconcontinent.com/p/the-turnbe...
siliconcontinent.com
The surrender in Turnberry
11 thoughts on the EU-US trade deal
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Heikki Bergholm @heikkibergholm.bsky.social · 20/06/2025
”time to admit QE's later rounds were clear policy errors”
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Luis Garicano @lugaricano.bsky.social · 18/06/2025
Today in SiliconContinent, Klaus Masuch and I explain carefully the redistribution of risks that are an inevitable consequence of modern monetary policy (QE etc.) and the huge transfers of wealth that have in fact taken place as a result. www.siliconcontinent.com/p/the-hidden...
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Kay Jebelli @kayjebelli.bsky.social · 04/06/2025
This turns the single market on its head, it's exactly what people like @lugaricano.bsky.social‬ have been talking about, when they say that the modern EC is failing at its raison d'être, where the economy is concerned. Enforcing a single market. www.siliconcontinent.com/p/the-myth-...
siliconcontinent.com
The myth of the single market
Why Europe’s internal barriers are higher than Trump's tariffs
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Fiona Scott Morton @proffionasm.bsky.social · 04/06/2025
I have a new book! Digital Platform Regulation. Fun analysis of what society should do to get some competition out of of our favorite gatekeeper platform. Relevant to the DMA and US antitrust remedies. And free! Download here: som.yale.edu/centers/thur...
som.yale.edu
Digital Platform Regulation
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Luis Garicano @lugaricano.bsky.social · 28/05/2025
As long term rates increase, the problems that created the doom loop in Europe are unsolved. Why? Italy's politicians like to have a captive buyer of debt. And German politicians like to control €2.5 trillion through local Sparkassen. My post today: www.siliconcontinent.com/p/the-return...
siliconcontinent.com
The Return of the Doom Loop?
Higher yields expose Europe's unfinished banking union
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Luis Garicano @lugaricano.bsky.social · 14/05/2025
I explain today why the Single market is broken: mutual recognition is not what we think it is; harmonisation actually fragments, and the Commission is not doing its core job. If you only ever read one post of Silicon Continent, let it be this one. www.siliconcontinent.com/p/the-myth-o...
siliconcontinent.com
The myth of the single market
Why Europe’s internal barriers are higher than Trump's tariffs
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Guntram Wolff @guntramwolff.bsky.social · 09/04/2025
How to pay for European defense - a nice review of our @bruegel.bsky.social report with @steinbacharmin.bsky.social and @jzettelmeyer.bsky.social by @lugaricano.bsky.social www.siliconcontinent.com/p/how-to-pay...
siliconcontinent.com
How to pay for European defense
The proposal for a European Defense Mechanism
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Andrew Duff @andrewduffeu.bsky.social · 22/03/2025
Ukraine is the test case. "If the bloc fails to act decisively, it risks remaining caught between a dysfunctional confederation and the 'ever closer union' it hopes to become." @lugaricano.bsky.social @politico.eu www.politico.eu/article/hung...
politico.eu
How to confront Orbán and save the EU
The legal tools to address this internal opposition exist — Europe just needs to use them, and meet the moment with courage.
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Jacques Crémer @jcremer.bsky.social · 12/03/2025
This blog post by @pietergaricano.bsky.social while ostensibly about education makes crucial points about the limits of European policies, which are specially relevant as we think of industrial policy. www.siliconcontinent.com/p/policies-w...
siliconcontinent.com
Policies without Politics
The European Commission has set its sights on education.
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LSE School of Public Policy @lsepublicpolicy.bsky.social · 12/03/2025
Europe’s economy is in trouble. Our Professor of Public Policy @lugaricano.bsky.social recently featured on the @economist.com podcast “Money Talks” to discuss the challenges facing Europe’s leaders today. 🇪🇺🎧 www.economist.com/podcasts/202...
economist.com
The European economy has a Trump problem
Our podcast on markets, the economy and business. This week, we discuss the numerous threats to Europe’s shaky economy
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Chris Abbott @c-abbs.bsky.social · 08/03/2025
open.substack.com/pub/siliconc... Excellent piece by @lugaricano.bsky.social
open.substack.com
Trading with Bullies
Economics for a Hard-Power World
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Matt Abrams @mattabrams.org · 08/03/2025
@lugaricano.bsky.social @hooverinstitution.bsky.social www.linkedin.com/posts/mattab...
linkedin.com
Matt Abrams on LinkedIn: Trading with Bullies | annotated by Matt
Valuable reads from John H. Cochrane and Luis Garicano and opens up as many questions as answers as I call out below. One overarching statement, however, our…
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Ismael Peña-López @ictlogist.bsky.social · 05/03/2025
Esplèndid text de @lugaricano.bsky.social sobre el concepte "externalitats sobre la seguretat nacional" i com aquest concepte pot ajudar a comprendre (i a actuar) els canvis sobre comerç internacional, proteccionisme i subvencions a la producció nacional 1/2 www.siliconcontinent.com/p/trading-wi...
siliconcontinent.com
Trading with Bullies
Economics for a Hard-Power World
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Luis Garicano @lugaricano.bsky.social · 05/03/2025
"Trading with Buliles" How to think like an economist in a world of hard power. - The national security externality - Strategic sectors - When integration encances resilience. Including fascinating new work on Geoeconomics (Maggiori, Becko, Kooi) www.siliconcontinent.com/p/trading-wi...
siliconcontinent.com
Trading with Bullies
Economics for a Hard-Power World
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Luis Garicano @lugaricano.bsky.social · 03/03/2025
Good point by Martin, which i missed at the time. Sorry.
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Verfassungsblog @verfassungsblog.de · 03/03/2025
Ukraine needs to join the European Union as fast as possible. Neither Trump nor Putin can veto this! ANDREW DUFF advocates for the fast-track accession and calls for a revision of its terms and conditions: verfassungsblog.de/fast-trackin...
The first step must be to reverse the unorthodox incursion of unanimity into Council decision making on enlargement.
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Jason Furman @jasonfurman.bsky.social · 23/02/2025
COVID ripped apart economies around the world. Amazingly most rich countries snapped back almost completely very quickly. By the end of 2021, 12 of 27 advanced OECD economies had unemployment rates below pre-COVID forecasts. The US did not. In fact, it was the fourth worst. A 🧵
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Christian Odendahl @codendahl.bsky.social · 24/02/2025
Our leader on #Merz and the debt brake. Get rid of it, and do it now. www.economist.com/leaders/2025...
economist.com
Germany’s election victor must ditch its debt rules—fast
Friedrich Merz has weeks to shore up his country’s defences
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Luis Garicano @lugaricano.bsky.social · 18/02/2025
This Draghi piece is a quiet indictment on the @EUCommission's failure on its core Treaty mandate: "establishing the internal market" & ensuring "free movement of goods, persons, services and capital." His facts are devastating. A thread summarizing them and drawing some consequences. 1/
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Steve Cicala @stevecicala.bsky.social · 17/02/2025
If you thought @jasonfurman.bsky.social 's FA piece was too subtle in its distinction between "tradeoff" as a well-defined economic concept and its common usage, you might get the point with this amazing post on the SuperBonus by @lugaricano.bsky.social. www.siliconcontinent.com/p/how-to-inc...
siliconcontinent.com
How to torch 220 billion euros
When the ECB, Brussels, and Markets All Looked Away
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Sander Tordoir @sandertordoir.bsky.social · 15/02/2025
I guess it isn't to everyone. But the fact of the matter is that not only Germany is rapidly losing export markets to China, but Europe at large. China's exports are growing at a 10% y-o-y clip, world trade around 3%, eurozone exports are languishing (and yes that also hits CEE by extension). 4/x
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Ismael Peña-López @ictlogist.bsky.social · 15/02/2025
Fantàstic @lugaricano.bsky.social sobre política fiscal i monetària europea i, en definitiva, sobre una Unió que és poc més, encara, que un club d'estats que van per lliure. (l'estudi del cas italià és simplement esgarrifós) www.siliconcontinent.com/p/how-to-inc...
siliconcontinent.com
How to torch 220 billion euros
When the ECB, Brussels, and Markets All Looked Away
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Luis Garicano @lugaricano.bsky.social · 14/02/2025
Today in Silicon Continent, the astonishing story of a "stimulus" gone wrong-- the 220 billion Italian superbonus. The ideas and the political economy of why it took off, and why it was unstoppable. www.siliconcontinent.com/p/how-to-inc...
siliconcontinent.com
How to incinerate 220 billion euros
When the ECB, Brussels, and Markets All Looked Away
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Luis Garicano @lugaricano.bsky.social · 08/02/2025
Not long ago, defending the huge responsibility of Universities to honor the bottom-up process of truth seeking...not shortcircuit debate and declare what is right would have provoked outrage. A beautiful speech by UChicago President Alivisatos. news.uchicago.edu/story/chicag...
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Elena Alfaro 🇪🇺🇺🇦 @elnalfaro.bsky.social · 31/01/2025
Ten Principles for a New Climate Policy By @lugaricano.bsky.social www.siliconcontinent.com/p/ten-princi...
siliconcontinent.com
Ten Principles for a New Climate Policy
Paris is Worth a Mass
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Luis Garicano @lugaricano.bsky.social · 27/01/2025
Policies that superficially sound "progressive" but damage their stated beneficiaries (like greens sabotage of transmission and nuclear; or Nimbys on housing): eliminating testing reduced the chances of underprivileged students.
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Luis Garicano @lugaricano.bsky.social · 27/01/2025
The Deep Seek R1 news is huge. 1000x cheaper to train ($5m!!), open source, RL based. Huge implications for value creation and capture. It is all over Twitter and MSM. My timeline here has no mention. Is this my fault? Who should I be following for cutting edge tech here?
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rogier kievit @rogierk.bsky.social · 26/01/2025
the findings are fascinating, but it's also a masterclass of thread explaining a new paper 💯
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Martin Sandbu @martinsandbu.ft.com · 22/01/2025
Anyone who thinks that when businesses complain about a competition regulator, siding with the businesses is to be growth-friendly, makes a huge mistake. Competition is good for growth AND disliked by businesses (who must work harder to do well). Wanting to make businesses happy will lower growth.
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Javier Asensio 🇪🇺🇺🇦 @asensiojavier.bsky.social · 18/01/2025
@lugaricano.bsky.social entrevistado en Letras Libres. “El gran momento de éxito de los mercados, de las liberaciones económicas, llega hasta 2008. La izquierda y la derecha veían las cosas de una manera muy parecida: había que combinar un mercado potente con un Estado redistributivo”
letraslibres.com
“La inteligencia artificial es un cambio que tenemos que abrazar”. Entrevista a Luis Garicano | Letras Libres
El economista habla sobre las transformaciones en la productividad y la innovación tecnológica que han llegado con el siglo XXI.
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Noah Barkin @noahbarkin.bsky.social · 17/01/2025
The gloves are finally off, a month before the German election, as Green party frustration with Scholz’s ever-nebulous Ukraine stance boils over www.ft.com/content/1b59...
ft.com
German foreign minister Annalena Baerbock attacks Olaf Scholz over Ukraine aid
Support for Kyiv becomes key issue in February 23 election after chancellor blocks €3bn of extra funding
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Luis Garicano @lugaricano.bsky.social · 17/01/2025
My quick response to the new @sandertordoir.bsky.social/Setser brief -Ok to more data, targeted trade measures. -No to increased "enshittification" of the Single Market to deliver local content. -No to a defensive industrial policy. Invest in the future! www.siliconcontinent.com/p/the-second...
siliconcontinent.com
The Second China Shock is here
Tordoir and Setser's Policy Brief
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Jacques Crémer @jcremer.bsky.social · 16/01/2025
Now, of course, it is a problem that we do not have a well-built theory which integrates both arguments.
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Jacques Crémer @jcremer.bsky.social · 16/01/2025
I think that the argument for the price system relies both on Hayek 1945 and the Walras-Arrow-Debreu general equilibrium theory. I would be of no use to aggregate dispersed information if the resulting allocation was inefficient.
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Jacques Crémer @jcremer.bsky.social · 16/01/2025
I would like to point out that thinking along these lines does have some policy consequences. For instance, set a market price for carbon emission; do not burden firms with reporting requirements on their emissions. The market efficiently does the aggregation for you.
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Ethan Bueno de Mesquita @ethanbdm.bsky.social · 15/01/2025
Considering packaging this line and calling it a policy degree: "prices are wily and mostly not under your control, and will often make a mockery of your neat welfare objective"
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Ben Golub @bengolub.bsky.social · 15/01/2025
And my gloss on Shengwu's position is "any allocative externality you want to mitigate, microeconomics lets you worry about" To which Luis's reply is basically "Yes but your attempts of that form will still usually be worse than the price system (Hayek 45)"
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Ben Golub @bengolub.bsky.social · 15/01/2025
So my take is not that "prices are great and should be left alone" but "prices are wily and mostly not under your control, and will often make a mockery of your neat welfare objective."
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Ben Golub @bengolub.bsky.social · 15/01/2025
I think a limitation in thinking about redistributive market design at least as important as Luis's criticism is -- "When you take into account changes in prices the designer doesn't control, where is the ultimate welfare incidence of your market design activities?"
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Ben Golub @bengolub.bsky.social · 15/01/2025
The discussion ending at this tweet is very smart on both sides ( @lugaricano.bsky.social and @shengwuli.bsky.social ), reasonably spicy, and fun to read.
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Luis Garicano @lugaricano.bsky.social · 15/01/2025
After producing a valuable report documenting the microeconomic obstacles to the EUs growth, Draghi is choosing to focus his activity on his macro recommendation- more debt. In SiliconContinent today I argue that we must focus on the micro, not the macro. www.siliconcontinent.com/p/focus-on-t...
siliconcontinent.com
Focus on the Micro, not the Macro
We cannot borrow our way back to growth
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Luis Garicano @lugaricano.bsky.social · 11/01/2025
A global relationship recession: across the world, the drop in fertility is linked to a significant drop in the number of couples in a stable relationship. E.g.: South Korea down from 58% 25-34 yo cohabiting to 23%. Outstanding data story @jburnmurdoch.bsky.social on.ft.com/4fWosfH
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Rob Blackie @robblackie.bsky.social · 06/01/2025
@lugaricano.bsky.social Wearing your Silicon Continent hat I thought you might be interested in this research on the challenges and opportunities for the RNA industry in Europe.
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Rob Blackie @robblackie.bsky.social · 26/12/2024
The Wire is a fantastic guide to how incentives work. And it shows *why* incentives get broken. Institutions get stuck down stupid measures even if most people know they are stupid.
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Luis Garicano @lugaricano.bsky.social · 26/12/2024
Fields of "inquiry" where asking simple factual, yes/no, questions is considered worth an expulsion from campus. In case these mobsters care about facts, the factual answer to the question is yes: LLMs are now able to ace the exams in most fields of knowledge. @arpitrage.blusky.social
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