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on European Economics |
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Issue of 2024‒04‒29
nineteen papers chosen by Simon Sosvilla-Rivero, Instituto Complutense de Análisis Económico |
| By: | Roland Beck; Antonio Coppola; Angus J. Lewis; Matteo Maggiori; Martin Schmitz; Jesse Schreger |
| Abstract: | We assess the pattern of Euro Area financial integration adjusting for the role of “onshore offshore financial centers” (OOFCs) within the Euro Area. The OOFCs of Luxembourg, Ireland, and the Netherlands serve dual roles as both hubs of investment fund intermediation and centers of securities issuance by foreign firms. We provide new estimates of Euro Area countries' bilateral portfolio investments which look through both roles, attributing the wealth held via investment funds to the underlying holders and linking securities issuance to the ultimate parent firms. Our new estimates show that the Euro Area is less financially integrated than it appears, both within the currency union and vis-a-vis the rest of the world. While official data suggests a sharp decline in portfolio home bias for Euro Area countries relative to other developed economies following the introduction of the euro, we demonstrate that this pattern only remains true for bond portfolios, while it is artificially generated by OOFC activities for equity portfolios. Further, using new administrative evidence on the identity of non-Euro Area investors in OOFC funds, we document that the bulk of the positions constituting missing wealth in international financial accounts are now accounted for by United Kingdom counterparts. |
| JEL: | E0 F0 G0 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:32275&r=eec |
| By: | Vincenzo Cuciniello (Bank of Italy) |
| Abstract: | This paper presents novel time-varying estimates of the monetary policy rule as perceived by financial markets, focusing on days of heightened inflation-linked swap rate volatility corresponding to preliminary inflation release dates in the euro area. My findings reveal significant fluctuations in the perceived responsiveness of monetary policy to inflation, reflecting shifts in the ECB's concerns regarding price stability risks. Moreover, the sensitivity of this perceived responsiveness to monetary shocks varies based on prevailing inflation expectations, with tighter policy having a greater impact in high-inflation environments. Lastly, a stronger perceived monetary policy response to inflation enhances policy credibility by dampening the sensitivity of long-term inflation expectations to short-term fluctuations. |
| Keywords: | European Central Bank, monetary policy rule, credibility, financial market expectations, macroeconomic data releases |
| JEL: | E50 G10 C10 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:bdi:wptemi:td_1449_24&r=eec |
| By: | Tryfonas Christou (European Commission - JRC); Abian Garcia Rodriguez (European Commission - JRC); Tillmann Heidelk (European Commission – DG REGIO); Nicholas Lazarou (European Commission - JRC); Philippe Monfort (European Commission – DG REGIO); Simone Salotti (European Commission - JRC) |
| Abstract: | The European cohesion policy aims to achieve balanced and sustainable development by reducing disparities between the European Union (EU) regions. The macroeconomic impact of the policy materialises through both short-term (mostly demand-side) and long-term (supply-side) effects. General equilibrium models such as RHOMOLO can be used to assess these effects. The budget allocated to cohesion policy for the period 2014-2020 is €356 billion (€405 billion with REACT-EU) and €376 billion for the period 2021-2027. This Insight summarises the results of an analysis that takes into account the funds allocated in two consecutive programming periods, as financial support is never interrupted between them. By 2030, each euro invested in the 2014-2020 and 2021-2027 programmes will have generated 1.3 euros of additional GDP in the EU, and will have almost tripled in 2043. Cohesion policy promotes internal convergence and reduces regional disparities not only at the EU level, but also within Member States. |
| Keywords: | rhomolo, region, growth, cohesion policy |
| JEL: | C68 R13 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc136790&r=eec |
| By: | Joachim Wagner (Leuphana Universität Lüneburg, Institut für Volkswirtschaftslehre and Kiel Centre for Globalization) |
| Abstract: | The use of digital technologies like artificial intelligence, robotics, or smart devices can be expected to go hand in hand with higher productivity and lower trade costs, and, therefore, to be positively related to export activities. This paper uses firm level data for manufacturing enterprises from the 27 member countries of the European Union to shed further light on this issue by investigating the link between the digitalization intensity of a firm and extensive margins of exports. Applying a new machine-learning estimator, Kernel-Regularized Least Squares (KRLS), which does not impose any restrictive assumptions for the functional form of the relation between margins of exports, digitalization intensity, and any control variables, we find that firms which use more digital technologies do more often export, do more often export to various destinations all over the world, and do export to more different destinations |
| Keywords: | Digital technologies, exports, firm level data, Flash Eurobarometer 486, kernel-regularized least squares (KRLS) |
| JEL: | D22 F14 |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:lue:wpaper:428&r=eec |
| By: | Anabela Marques Santos (European Commission - JRC); Javier Barbero (Universidad Autonoma de Madrid); Simone Salotti (European Commission - JRC); Andrea Conte (European Commission - JRC) |
| Abstract: | The recent increase in the use of digital technologies has brought benefits in terms of increased productivity, sales and exports. The COVID-19 crisis accelerated the digital transition, pushing both governments and businesses to invest more in information and communication technology (ICT). Policy makers and researchers are interested in assessing the macroeconomic and distributional effects of digitalisation on the labour market. The impact of digitalisation may be either positive or negative, and may affect certain jobs and sectors more than others. Several recent studies have quantified the net impact of digital technologies on employment, with mixed results. This Policy Insight reports the results of a study using European Union (EU) data from 1995 to 2019, which finds a net positive effect, albeit heterogeneous across countries. |
| Keywords: | digitalisation, employment |
| JEL: | C68 R13 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc136551&r=eec |
| By: | Nicolò Gnocato (Bank of Italy) |
| Abstract: | This paper studies the optimal conduct of monetary policy in the presence of heterogeneous exposure to energy price shocks between the employed and the unemployed, as it is documented by data from the euro-area Consumer Expectations Survey: higher energy prices weigh more on the unemployed, who consume less and devote a higher proportion of their consumption to energy. I account for this evidence into a tractable Heterogeneous-Agent New Keynesian (HANK) model with Search and Matching (S&M) frictions in the labour market, and energy as a complementary input in production and as a non-homothetic consumption good: energy price shocks weigh more on the jobless, who consume less due to imperfect unemployment insurance and, since preferences are non-homothetic, devote a higher share of this lower consumption to energy. Households' heterogeneous exposure to rising energy prices induces an endogenous trade-off for monetary policy, whose optimal response involves partly accommodating core inflation so as to indirectly sustain employment and, therefore, prevent workers from becoming more exposed to the shock through unemployment. |
| Keywords: | heterogeneous agents, New Keynesian, unemployment risk, energy shocks, optimal monetary policy, endogenous trade-off |
| JEL: | E21 E24 E31 E32 E52 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:bdi:wptemi:td_1450_24&r=eec |
| By: | Mikel Bedayo (Banco de España); Jorge E. Galán (Banco de España) |
| Abstract: | The countercyclical capital buffer (CCyB) has become a very important macroprudential tool to strengthen banks’ resilience. However, there is still limited evidence of its impact on lending over the cycle. Using data of 170 banks in 25 European Union countries, we provide a comprehensive assessment of how the CCyB release during the pandemic and its earlier accumulation impacted lending activity. We find that the CCyB has significant effects on lending, but that these effects are highly dependent on banks’ capitalization levels and, more importantly, on their headroom over regulatory requirements. We show that the release of the CCyB in response to the pandemic had a positive impact on lending, especially for banks with the lowest headroom over requirements, and that this effect was larger than the negative impact of its previous accumulation. While the CCyB accumulation had a short-term negative impact on lending for the most capital-constrained banks, this effect quickly diluted due to their enhanced solvency position, potentially allowing them to lower their cost of equity. Our results provide evidence of the benefits of the CCyB, especially in supporting lending during adverse events, while emphasising the need for policymakers to consider the heterogeneous effects across banks when deploying this tool. |
| Keywords: | bank credit, capital buffers, COVID-19, macroprudential policy, capital regulation |
| JEL: | C32 E32 E58 G01 G28 |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:bde:wpaper:2411&r=eec |
| By: | Paula Patzelt (London School of Economics (LSE); Centre for Macroeconomics (CFM)); Ricardo Reis (London School of Economics (LSE); Centre for Macroeconomics (CFM)) |
| Abstract: | When the price of electricity increases by 1%, households’ average expected inflation increases by 1.0 to 1.3 basis points. But, if those expectations have become unanchored, as happened between the start of 2021 and 2023, then the effect is higher by 0.2 to 1.6 basis points. This paper arrives at these estimates by exploiting variation both in the time series, and especially in the cross section, from newly-available public data on expected inflation by Euro area households across region, gender, education, and income, and on the cost of energy across region and source. The impact of exogenous shocks to energy prices on expected inflation increases for 8 to 12 months, but they can only account for a small share of the rise in expected inflation in 2021-23. |
| Keywords: | Great Inflation, Monetary policy, Inattention |
| JEL: | D84 E31 Q43 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:cfm:wpaper:2411&r=eec |
| By: | Jianu, Ionuț; Tudorache, Maria-Daniela; Nicolescu, Andreea Florentina |
| Abstract: | This paper examines the impact of education and labour market challenges on the income inequality in European Union (27 Member States) within the period 2012-2022, this being calculated using the Panel EGLS method. Even if the effects are clearly visible from a theoretical point of view, in the latest years there were not many authors focusing their studies on the effects of the unemployment and early drop-out from school and training on income inequality. In this regard, updating the figures, the impact coefficients and the theoretical background increase the understanding of the statistical processes and their results in the new economic context. Our results confirmed a positive relationship between unemployment rate and income inequality (measured by Gini coefficient), this being also the highest impact found, but also a positive link between the early leavers from education and training rate and income inequality. In addition, we used additional variables to catch the current economic challenges that are related to demographic changes and high energy prices. In this context, we found positive effects exerted by housing cost overburden rate and old-age dependency ratio on income inequality. Even if the model is limited to four income inequality drivers, we have demonstrated that the calculated coefficients are the best linear unbiased estimators. |
| Keywords: | unemployment, education, income inequality, labour market, early leavers, Panel |
| JEL: | D63 I24 E24 C33 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:esconf:289591&r=eec |
| By: | Doorley, Karina; Gromadzki, Jan; Lewandowski, Piotr; Tuda, Dora; Van Kerm, Philippe |
| Abstract: | We study the effects of robot penetration on household income inequality in 14 European countries between 2006-2018, a period of rapid adoption of industrial robots. Automation reduced relative hourly wages and employment of more exposed demographic groups, similarly to the results for the US. Using robot-driven wage and employment shocks as input to the EUROMOD microsimulation model, we find that automation had minor effects on income inequality. Household labour income diversification and tax and welfare policies largely absorbed labour market shocks caused by automation. Transfers played a key role in cushioning the transmission of these shocks to household incomes. |
| Abstract: | Wir untersuchen die Auswirkungen der Roboterdurchdringung auf die Ungleichheit der Haushaltseinkommen in 14 europäischen Ländern zwischen 2006 und 2018, einer Zeit der schnellen Einführung von Industrierobotern. Ähnlich wie in den USA hat die Automatisierung die relativen Stundenlöhne und die Beschäftigung von stärker belasteten demografischen Gruppen reduziert. Unter Verwendung von roboterbedingten Lohn- und Beschäftigungsschocks als Input für das Mikrosimulationsmodell EUROMOD finden wir, dass die Automatisierung nur geringe Auswirkungen auf die Einkommensungleichheit hatte. Die Diversifizierung des Arbeitseinkommens der Haushalte und Steuer- und Sozialpolitik fingen die durch die Automatisierung verursachten Arbeitsmarktschocks weitgehend ab. Transfers spielten eine Schlüsselrolle bei der Abfederung der Übertragung dieser Schocks auf die Haushaltseinkommen. |
| Keywords: | Robots, automation, tasks, income inequality, wage inequality, microsimulation |
| JEL: | J24 O33 J23 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:rwirep:287766&r=eec |
| By: | Stamegna, Marco; Bonaiuti, Chiara; Maranzano, Paolo; Pianta, Mario |
| Abstract: | In the last ten years, military expenditures of NATO EU countries (according to NATO definitions and data) have increased by almost 50%, from €145 billion in 2014 to a budget forecast of €215 billion in 2023 (measured in constant 2015 prices). In this context, it is important to assess the economic consequences that the current increase in military spending is likely to have on Europe’s economies. We focus on Germany, Italy and Spain, and we concentrate on arms acquisitions. The article investigates the economic effect of military expenditure on growth and employment and compares it to the impact that could emerge from a similar expenditure for education, health and the environment. We use an input-output methodology – already adopted by several studies - to assess the relevance of imports and of demand towards different sectors providing intermediate inputs. We assess the likely impact on output and jobs of one billion euros of extra spending in arms, and compare it to the outcomes of the same amount spent in education, health and the environment. Our findings show that for all countries non-military public expenditures have a greater impact on the economy and employment than spending for arms acquisition. |
| Keywords: | Military expenditure; arms acquisition; input-output; economic impact; military jobs |
| JEL: | C67 D57 H50 H56 Q50 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:120608&r=eec |
| By: | MARQUES SANTOS Anabela (European Commission - JRC); BARBERO Javier; SALOTTI Simone (European Commission - JRC) |
| Abstract: | The transition to a competitive and sustainable economy is at the heart of EU strategies to achieve climate neutrality while increasing economic efficiency. An indicator to measure the competitive and sustainable transition at regional level is presented based on Santos et al. (2023). The indicator accounts for shifts in employment towards greener and more productive sectors over the 2008-2020 period. On average, the share of employment in more productive and greener sectors is increasing over time, although the impact of the Covid-19 crisis is tangible. There is strong heterogeneity across EU regions, but most of the less developed regions lag behind the more developed ones. However, on the dimension measuring competitiveness, the less developed regions perform better than the more developed ones. The opposite is true for the environmental sustainability dimension. This suggests that regions initially improve along the competitiveness dimension, and only afterwards are capable of concentrating on environmental sustainability. |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc136629&r=eec |
| By: | Donato Ceci (Bank of Italy); Orest Prifti (Università degli Studi di Roma-Tor Vergata); Andrea Silvestrini (Bank of Italy) |
| Abstract: | This paper examines the role of weekly financial data in nowcasting the quarterly growth rate of Italian real GDP, with a specific focus on the impact of the COVID-19 pandemic. It combines factor models and MIxed DAta Sampling (MIDAS) regression models to set up Factor MIDAS specifications, which leverage a large set of higher-frequency financial variables to exploit the information flow within the quarter. The analysis is performed using a comprehensive dataset that includes monthly macroeconomic data and weekly financial data. The predictive accuracy is assessed by conducting a pseudo out-of-sample nowcast exercise and evaluating the performance of the models with and without the inclusion of factors derived from financial indicators. Financial variables improve the nowcast of real GDP growth in Italy, particularly in the first month of the quarter, when few macroeconomic data are available. The models incorporating financial variables consistently exhibit high nowcasting accuracy throughout the quarter. |
| Keywords: | nowcasting, mixed frequency, factor models, variable selection, financial markets, factor MIDAS |
| JEL: | C22 C43 C53 C55 E32 E37 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:bdi:wptemi:td_1446_24&r=eec |
| By: | Kovalenko, Tim; Sauerbier, Timo; Schröpf, Benedikt |
| Abstract: | In West Germany, the average size of establishments declined during the 1990s and started to increase again in the late 2000s, while the employer size wage premium followed the opposite trajectory. In this paper, we show that these two developments are interrelated. More precisely, our results suggest that variations in the employer size wage premiums induced establishments to vary their employment level, consistent with monopsony power on the labor market. Moreover, our regional analyses show that average establishment size correlates positively with GDP per capita. We rationalize these findings with a heterogeneous firms model with monopsonistic competition in the labor market, stemming from the household's love-of-variety preferences for employers. Both empirics and theory reveal that higher size wage premiums decrease average establishment size by downsizing incumbent establishments and triggering the entry of small establishments, thus also negatively affecting aggregate productivity. |
| Keywords: | Establishment Size, Size Wage Premium, Productivity, Labor MarketPower, Germany |
| JEL: | E24 J31 J42 L25 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:bubdps:287762&r=eec |
| By: | Francesco Cappelletti (ELF - European Liberal Forum); Gérard Pogorel (IP Paris - Institut Polytechnique de Paris, SES - Département Sciences Economiques et Sociales - Télécom ParisTech) |
| Abstract: | In addressing the EU's contemporary challenges, this analysis acknowledges a critical intersection between the imperatives of security, sustainability, and industrial autonomy. The EU undertakes substantial efforts in these domains. The rapidly shifting glob- al context, its considerable volatility, and emerging trends render any immediate as- sessment of recent policy initiatives prema- ture. However, this dynamic and uncertain landscape underscores the limitations of conventional forecasting and necessitates an ongoing reassessment of the EU's strate- gic priorities. Central to this discourse is the policy ‘trilemma' confronting the Union: the need to simultaneously uphold security, fos- ter sustainability, and maintain the focus on competitiveness. In this sense, industrial au- tonomy refers to the EU's strategic capacity to reinforce its industrial base and supply chains in key sectors, adapting swiftly to global eco- nomic and geopolitical shifts. This chapter explores these issues and proposes coherent changes in approach, all within the frame- work of an EU policy trilemma focusing on security, sustainability, and competitiveness. |
| Date: | 2024–03–14 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04505097&r=eec |
| By: | Gern, Klaus-Jürgen; Kooths, Stefan; Liu, Wan-hsin; Reents, Jan; Sonnenberg, Nils |
| Abstract: | Die Weltwirtschaft expandiert derzeit in moderatem Tempo, wobei die Dynamik in den einzelnen Regionen recht unterschiedlich ist. Während die Konjunktur in den Vereinigten Staaten bis zuletzt kräftig war, befindet sich die Wirtschaft im Euroraum in einer Phase der Stagnation; im Vereinigten Königreich und in Japan ging die Produktion im zweiten Halbjahr 2023 sogar merklich zurück. Die konjunkturellen Unterschiede dürften im Prognosezeitraum geringer werden, ein kräftiger Aufschwung ist aber nicht in Sicht: Während die Expansion in den Vereinigten Staaten angesichts nachlassender fiskalischer Impulse etwas an Fahrt verliert, belebt sich die Konjunktur in Europa und Japan mit Abklingen der bremsenden Wirkungen des Inflationsschocks allmählich. Stimulierend wirkt auch die sich abzeichnende leichte Erholung beim Welthandel. Die wirtschaftliche Aktivität in China dürfte im Prognosezeitraum angesichts struktureller Probleme allerdings nur verhalten expandieren und im Jahresdurchschnitt merklich schwächer zunehmen als im vergangenen Jahr. Nicht zuletzt deshalb wird der Anstieg der Weltproduktion - gemessen auf Basis von Kaufkraftparitäten - mit 2, 8 Prozent etwas niedriger ausfallen als im vergangenen Jahr (3, 1 Prozent), für das kommende rechnen wir wieder mit einem Zuwachs von 3, 1 Prozent. Damit haben wir unsere Prognose für das Jahr 2024 gegenüber unserer Dezemberprognose unverändert gelassen, die für 2025 geringfügig - um 0, 1 Prozentpunkt -- nach unten revidiert. Die Arbeitslosigkeit in den fortgeschrittenen Volkswirtschaften nimmt in der nächsten Zeit zwar leicht zu, bleibt aber auf historisch niedrigem Niveau. Die Inflation ist zwar gegenüber dem Höchststand Ende 2022 deutlich zurückgegangen, zuletzt aber nur noch wenig gesunken. Vor allem der Anstieg der Preise für Dienstleistungen erweist sich als hartnäckig, so dass. die Inflationsraten voraussichtlich erst im Jahr 2025 wieder nachhaltig in die Nähe der Zielmarken gesunken sein werden. Risiken für die Weltkonjunktur sind vor allem geopolitischer Natur, insbesondere einer Zuspitzung von Handelskonflikten und ergeben sich aus den Unwägbarkeiten im Zusammenhang mit den US-Präsidentschaftswahlen. |
| Abstract: | The global economy is currently expanding at a moderate pace, albeit with considerable differences in momentum across countries. The economy in the United States is still growing at robust rates, whereas the euro area is in a phase of stagnation; in the United Kingdom and Japan, production even declined noticeably in the second half of 2023. While the growth differentials are likely to narrow over the forecast horizon, a strong upturn is not in sight: Europe and Japan is gradually picking up as the dampening effects of the inflation shock have run their cause but, at the same time, the expansion in the United States is losing momentum as fiscal stimuli fade. Also, economic activity in China is likely to expand only modestly going forward due to structural problems, and growth will be noticeably weaker on average in 2024 than in the previous year. This is the most important reason why global output growth on a purchasing power parity basis will be somewhat lower at 2.8 percent than in 2023 (3.1percent). For the coming year, we expect an acceleration of growth to 3.1 percent again. Our forecast remains unchanged for 2024 from our December forecast and has been revised marginally - by 0.1 percentage point - downwards for 2025. Although unemployment in the advanced economies will increase slightly over the next quarters, it will remain at a historically low level. Inflation has fallen significantly compared to the peak at the end of 2022, but has only fallen slightly in recent months. The rise in prices for services in particular is proving to be stubborn, meaning that inflation rates are not expected to fall sustainably close to the target levels again until 2025. Risks for the global economy are primarily of geopolitical nature and are reinforced by the uncertainties surrounding the US presidential election. An escalation of trade conflicts, for example, would have a negative impact on global economic activity. |
| Keywords: | Konjunktur, Welt, Business Cycle, World |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ifwkkb:289484&r=eec |
| By: | Gupta, Anandita (National Institute of Public Finance and Policy); Pandey, Radhika (National Institute of Public Finance and Policy); Sapatnekar, Sanhita (Department of Economics, University of Navarra, Spain) |
| Abstract: | In May 2023, the European Union (EU) implemented the Carbon Border Adjustment Mechanism (CBAM) to prevent carbon leakage risks associated with its ambitious climate policies. Examining CBAM in conjunction with the EU Emissions Trading System (EU ETS), the paper highlights potential CBAM implications and discusses proposals to address key issues. CBAM is likely to impact exporters’ profitability and trade competitiveness, favouring nations with faster decarbonisation ability and robust carbon pricing systems. The paper advocates for non-EU countries to strengthen their emissions monitoring, reporting, and verification (MRV) systems and carbon pricing frameworks. For India, changing the nomenclature of the coal component under the GST Compensation Cess to a ‘carbon tax’ could be considered to reduce industries’ potential carbon liabilities. The development of India’s national emissions trading system could consider CBAM-related impacts, international standards, and insights from other jurisdictions, to strengthen its carbon market and achieve its climate commitments. Lastly, the paper highlights the need for a task force under the leadership of the Prime Minister for continuous engagement on evolving carbon market issues and the dynamic global trade landscape. |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:npf:wpaper:24/408&r=eec |
| By: | Bradley, Sebastien (Drexel University School of Economics); Flórez, Javier (Vienna University of Economics and Business); Larch, Mario (University of Bayreuth); Yotov, Yoto (Drexel University, School of Economics) |
| Abstract: | This paper introduces the Granular Trade and Production Activities (GRANTPA) database, which covers international trade flows for 3, 124 products and 247 countries over the period 1995-2019 as well as domestic trade flows and production data for the same number of products and years for a subset of 35 European economies. The original data sources that we employ are Eurostat's Comext and Prodcom databases. A gravity application delivers a large set of product-level “home bias” estimates, which cannot be obtained without domestic trade flows. The average estimates on the standard gravity variables in our model (e.g., distance) are comparable to those from the related literature. However, our disaggregated estimates are very heterogeneous across products, thus highlighting the importance of our new database. |
| Keywords: | Gravity Data; Structural Gravity; Domestic Trade Flows; Disaggregated Gravity Estimates; Home Bias Estimates |
| JEL: | C81 F13 F14 |
| Date: | 2024–02–21 |
| URL: | http://d.repec.org/n?u=RePEc:ris:drxlwp:2024_001&r=eec |
| By: | van Heur, Bas |
| Abstract: | Although still a niche within established disciplines, research on urban vacancy has boomed in recent decades, with different research communities investigating different dimensions of vacancy. However, these communities rarely communicate with each other, leading to parallel debates, different conceptual vocabularies and diverging empirical foci. This becomes particularly problematic in the current era, which is best characterized not simply as an ’urban age’, but as one in which city regions find themselves at the heart of economic, ecological and societal crises that are reshaping our world. Vacant spaces can be understood as symptoms of these crises, but also as actually existing and potential sites for experimentation, prefiguring new and more sustainable ways of urban living. To develop this perspective conceptually and empirically, the current paper offers a synthetic review of the existing literature, with a specific focus on the European context. Cutting across different research domains, the paper concludes by proposing an interdisciplinary research agenda on urban vacancy. |
| Date: | 2024–03–26 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:3kmtx&r=eec |