Do consultants do anything useful? @TheEconomist once asked. We answered—with data. Turns out: yes. Strategic consulting does boost productivity. And there's still room to grow. How do we know? We used administrative data for every firm in Belgium. #EconTwitter

Toni Erdmann und Admin-Daten? Die @faznet bringt's zusammen! @alexwulfers zu unserem neuen Forschungspapier "What Does Consulting Do?" mit @bijneman und @Schoefer_B, indem wir uns mit belgischen Daten anschauen, welche Firmen Consultants nutzen und was passiert, wenn sie das tun

New CEPR Discussion Paper - DP20501 What Does Consulting Do? Gert Bijnens @NBB_BNB_FR @NBB_BNB_NL, @simon_jaeger, @Schoefer_B https://t.co/apipuMuhPR #CEPR_IO #CEPR_LE #CEPR_MG #CEPR_OE #EconTwitter

What does consulting do?

What does consulting do? Lots of strongly held views, very limited data to answer the question. In new @nberpubs paper, @bijneman @Schoefer_B and I shed light on this question using the first economy-wide data on consulting relationships (based on VAT-based B2B data). More👇

This is easier to believe than the alternative hypothesis that consulting is a longstanding charade that helps provide corporate cover.

Very cool careful paper that shows that management consulting has a direct, positive (but small) effect on businesses in Belgium. Companies spend 3% of their revenue on engagements, and get "positive effects on labor productivity of 3.6% over five years" and increases in wages.

Are consultants really just a waste of human skin?

Are consultants really utterly pointless? https://t.co/XOYUWoCKow via @ft

Contrary to the trope that consultants borrow your watch to tell you the time (and keep it) or the assumption they’re hired for internal political reasons, ingenious research by @bijneman et al finds they boost profitability (and not at workers’ expense): https://t.co/Ur5k5ApwYI

This is a really exciting paper. Since consultants are often hired by failing firms, we will get biased estimates if we approach it naively. RCTs are incredibly expensive. They use super detailed firm data plus diff-in-diff, which is honestly fairly convincing.

Super cool paper!

Companies that hire consulting firms see large increases in labor productivity and also large increases of wages, with no decline in labor share or value added. It seems like a lot of the more nihilist theories of why companies hire consultants are not true on average!

I’ve been waiting for someone to write this paper, glad to see this all-star team pull it off. Looks like consulting does add direct value, contrary to what many academics (including myself) have thought. (My prior was consulting solved agency issues w/in firms).

Whoa

Great new paper which finds that—against the snark—management consulting does make firms more productive (at least in Belgium).

New paper: "What Does Consulting Do?" w/ Gert Bijnens, @simon_jaeger Consulting is a storied but opaque industry. Our VAT-based B2B data permit the 1st comprehensive study: Which firms buy consulting? What happens when they do? https://t.co/o0znxOUz7O https://t.co/wVFNyRv8cp

Read here

📉 Na de energieprijsschok hebben energie-intensieve bedrijven zich nog niet hersteld. Wat zijn de belemmeringen en oplossingen? ✍️ Je leest het in de nieuwe NBB-blog van Gert Bijnens, Cédric Duprez en John Hutchinson 👉