Tag: denmark

• How Europe is reopening

  

  Just over a month ago, as North America was beginning its lockdown, the Europeans were the ones showing us how to stay sane in quarantine through balcony orchestras and viral internet videos. Now we’re looking to them for how best to reopen the economy and minimize the number of fits and starts.

  • This morning Spain recorded its lowest daily death rate from the coronavirus. It is beginning to prepare for a phased relaxation of its lockdown rules. Things will not return to normal overnight. [Financial Times]
  • Spain allowed construction activity and manufacturing to resume this past week. As a reminder, Spain’s strict lockdown started on March 14. [New York Times]
  • Bookstores are open in Venice, but that’s about it. Customers have to enter one at a time, or schedule an appointment. Hotels, restaurants, and cafes remain shuttered. It is believed that at least 1/6th of all Italian restaurants and bars will not survive. Reopening is not happening uniformly across Italy’s 20 regions. [Wall Street Journal]
  • Last week, Denmark became the first country in the Western world to reopen elementary schools. The desks are far apart and teaching outside is being maximized, but some/many are concerned that this is too soon. Are we prioritizing the economy (i.e. free up the parents) over the health of our children? [New York Times]
  • The Czech Republic currently has one of the lowest number of cases on the continent. But hardware stores and bike shops are some of the only nonessential businesses that are allowed to be open. The Easter weekend saw an over 60% increase in year-over-year sales. Biking is something to do right now. [Wall Street Journal]
  • On Monday, the lockdown will be further relaxed by the Czech government. Weddings of up to 10 people will start to be allowed. Gyms are expected to open on May 11, but their change rooms will remain closed. (I’m surprised by this one.) Malls, hotels, and indoor restaurants aren’t expected to reopen until June 8 at the earliest. Should the number of new daily cases exceed 400 going forward, the government has said it will reimpose a lockdown. [Wall Street Journal]
  • The UK is not yet considering a relaxation of its lockdown. As of Sunday, the situation remains “deeply worrying.” The UK currently has the 5th highest national death toll. [Globe and Mail]
  • On April 13, Emmanuel Macron announced that France would begin a phased reopening of its economy — schools and some businesses — starting on May 11. This is a unique approach. He gave a firm date, well into the future. What if this doesn’t make sense when the time comes? Clearly the government felt that the psychological benefits of a firm date outweighed the potential risks. Minimize uncertainty during an uncertain time. [Le Monde]
  • Lots of discussion around the porosity of borders. Logically, there’s a view that unless there’s a common strategy, it’s better to keep borders closed. But what are the economic implications of doing that? [New York Times]

  Photo by Grant Lemons on Unsplash

  2020.04.19

• Norway’s $47 billion coastal highway

  

  The E39 highway in Norway runs along the west coast of the country and connects Kristiansand in the south to Trondheim in the north. There’s also a ferry connection to Denmark that forms part of the route. The entire highway (excluding the ferry south to Denmark) is about 1,100 km. But it takes about 21 hours to drive it because Norway’s dramatic fjords (see above photo) mean that there are seven ferry crossings along E39. The Norwegian government wants to transform the route into a ferry-free highway, which would dramatically reduce travel times. But this presents a number of extremely difficult engineering challenges — some of which haven’t been solved yet. You can learn about a number of them in the below video from The B1M. If you can’t see it below, click here. It’s a fascinating video.

  Photo by Christiann Koepke on Unsplash

  2019.09.02

• Canada delimits its continental shelf in the Arctic Ocean

  Last week the Government of Canada filed a 2,100-page submission with the United Nation’s Commission on the Limits of the Continental Shelf. Under UN Convention on the Law of the Sea (UNCOLS), states with coastal territory have the exclusive rights to about 370 kilometers beyond their shores in order to conduct economic activity. This includes the exclusive rights to any resources. However, states may also make claims to further extensions underneath the water if they can substantiate them through scientific research. Last week’s submission attempts to do exactly that for an additional 1.2 million square kilometers of sea bed.

  Here is a map from High North News:

  

  The challenge with all of this is that Norway, Denmark, and Russia all have their own continental shelf claims, and there’s geographic overlap. (The US has not yet ratified their UNCOLS agreement.) So it is unlikely for this to be resolved anytime soon, though all states seem willing to work with the UN. This is a relatively new debate because the North Pole and Arctic Ocean were previously considered neutral territory. But climate change is opening up new economic opportunities (i.e. there’s a lot less ice). That’s worrisome in its own right.

  Click here for the full press release from the Government of Canada.

  2019.05.27

• Hotel room as shop

  

  Vipp is a 3rd generation family-owned Danish company that makes everything from kitchens and lighting to prefab homes. But it all started with a pedal-controlled waste bin that Holger Nielsen – a metalworker – crafted for his wife Marie’s salon in 1939.

  I love their design philosophy. It is centered around “fewer but better products” and around lasting function over ephemeral trends.

  But equally interesting is what they are doing with their Vipp Hotels. Instead of large hotels, they offer individual rooms in unique locations, such as this 55 square meter design object in the Swedish wilderness (pictured above).

  The rooms they have crafted are, not surprisingly, stunning. And that’s because they are deliberately designed as a tool to showcase their kitchens, bathrooms, bins, and other products. 

  Here is a quote from their CEO taken from a recent Surface article:

  “Traditional retail seems to be losing its power, but what is not losing power is our desire to see or do something interesting. I see our hotels as the experience economy coming alive,” says Kasper Egelund, CEO of Denmark-based Vipp.

  Clever.

  Image: Vipp

  2018.04.27

• The Canadian Dream (and 5 things that hurt upward mobility)

  

  About 7.5% of American children born into the bottom quintile of the income distribution will eventually make it into the top one fifth. In the UK this number is about 9%. And in Canada and Denmark, the numbers are 13% and 13.5%, respectively. (The upper bound for these numbers is 20% since you can’t have more than 20% in the top 20% of the income distribution.)

  Because of stats such as these, Freakeconomics recently asked: Is the American Dream really dead? And if so, should it instead be called the Canadian Dream, seeing how it’s more readily obtained.

  Of course, it’s not necessarily as simple as 7.5% vs. 13%. Upward mobility exhibits a lot of regional variation. In the American southeast, the number is closer to 4%. Whereas in the San Francisco Bay Area, the number is up there with Canada and Denmark. However, this phenomenon is so location-specific that even kids growing up in San Francisco are twice as likely to get to the top 20% compared to kids growing up across the bridge in Oakland.

  There’s also a question of spread. Canada and Denmark have less income inequality, meaning you don’t have to travel as far to get to the top of the income distribution. 

  Still, the reality is that it is becoming harder for Americans to climb the socioeconomic ladder. The number of 30-year old Americans who today earn more than their parents is dropping compared to previous decades. So what needs to be done? What is causing this erosion of the American Dream?

  It turns out that city builders have an important role to play in solving this problem. Because where you live – and in particular where you grow up as a kid – matters.

  The Freakeconomics episode examines a study that was done by Raj Chetty, Nathaniel Hendren, and Lawrence Katz, called: The Effects of Exposure to Better Neighborhoods on Children. And their findings were exactly that. Place matters. The study reexamines the findings of a program that was administered in the mid 1990′s in the US called Moving to Opportunity (MTO). This program randomly offered families living in high-poverty neighborhoods the opportunity to move to neighborhoods with far less poverty. 

  Upon initial review, the program was seen as a failure. There were some positive health outcomes, but no meaningful changes in income. But when Chetty and company took another look at the data – now with more time and IRS data on their side – they discovered that the impact was in fact dramatic. Relocated families raised children that earned 30% more, were 27% more likely to go to college, and 30% less likely to be a single parent. The key, however, was that the children had to relocate when they were young (< 13 year olds). The older they got, the less benefit they received from moving, eventually reaching a plateau where there was basically no benefit at all.

  Here are the 5 things that ended up having significance in their findings:

  1. Residential segregation by income and race is bad. Mixed neighborhoods are good. The southeast is filled with segregated cities and that’s one of the reasons why they underperform in this exercise. San Francisco, on the other hand, was far more mixed in the 80′s and 90′s when the kids belonging to this study were growing up. One could debate whether that’s still the case. I guess we’ll find out in a few decades.
  2. Income inequality negatively impacts upward mobility. See The Great Gatsby Curve.
  3. Single parent households seem to have an impact on upward mobility. However, the data suggests that it’s not just about whether the child in question grew up with married parents. The percentage of single parent households in the neighborhood also matters. Because even children in dual parent households in a neighborhood with lots of single parent households, showed muted upward mobility.
  4. Social fabric. Connections to family and friends matter. It’s about having a support network. (Freakeconomics mentions a book called Bowling Alone that is now on my reading list.)
  5. Not surprisingly, the quality of public schools matters.

  All of the stats for this post were taken from this Freakeconomics Radio episode. For me, it is such an important reminder that the way we plan and build our cities can have meaningful and longstanding impacts on the kinds of children we raise.

  2017.01.21

• Housing tenure in Europe

  Yesterday I came across an incredibly fascinating chart from Eurostat, analyzing housing tenure (in 2011) across Europe. Here it is:

  

  And here’s what I found interesting.

  Working from left to right, there seems to be a clear difference between Eastern and Western Europe in terms of the amount of leverage they use to buy homes. If you look at Romania, not only does over 90% of the population own a home, but they also don’t seem to have any outstanding mortgage or housing loan. That means they’re buying their homes in cash.

  By the time you get to the United Kingdom, you start to see numbers that are comparable to Canada and the United States. The percentage of owner occupied homes is sitting at or below 70% and the majority of them have a mortgage or loan.

  But as a whole, Western Europe seems much more likely to rent than Eastern Europe. And in the case of Switzerland, more people rent than own. Why is that? This seems odd given its economic strength. But the same could be said for Germany and Austria, which also show relatively low ownership rates. Here’s one possible explanation.

  Finally, I found it interesting that in Denmark, the Netherlands, and Sweden, there’s virtually no such thing as subsidized rental housing. If you rent, you’re paying market rate (at least according to this chart). I wonder if this has something to do with there being less income inequality.

  If anyone has any insights on some of these points, I’d love to hear from you in the comment section below.

  2014.01.25