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Brexit May Cause U.K. Output to Fall 9.5%, MIT Study Shows

  • Report by economist Van Reenan includes productivity impact
  • Says benefits will do ‘little or nothing’ to offset costs
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MIT's Van Reenen Warns of Brexit's Big Costs for U.K.

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Britain’s departure from the European Union could cause output losses of as much as 9.5 percent per person, according to new research.

Calculations using models that incorporate productivity measures show a negative impact on gross domestic product per capita of almost four times that of previous estimates, according to John Van Reenen, a professor of applied economics at the MIT Sloan School of Management who supported the campaign for the U.K. to remain in the EU.