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on European Economics |
| By: | L. J. Álvarez; E. Dhyne; M. Hoeberichts; C. Kwapil; H. Le Bihan |
| Abstract: | This paper presents original evidence on price setting in the euro area at the individual level. We use micro data on consumer (CPI) and producer (PPI) prices, as well as survey information. Our main findings are: (i) prices in the euro area are sticky and more so than in the US; (ii) there is evidence of heterogeneity and of asymmetries in price setting behaviour; (iii) downward price rigidity is only slightly more marked than upward price rigidity and (iv) implicit or explicit contracts and coordination failure theories are important, whereas menu or information costs are judged much less relevant by firms. |
| Keywords: | Price setting; Price stickiness; consumer prices; Producer prices; survey data |
| JEL: | C25 D40 E31 |
| Date: | 2005–12 |
| URL: | http://d.repec.org/n?u=RePEc:dnb:dnbwpp:062&r=eec |
| By: | Tüzin Baycan-Levent; Peter Nijkamp |
| Abstract: | In the last decades migrant enterprises have become more embedded in the European urban economy. With the rising number of migrant entrepreneurs, the largest cities in Europe have acquired a more cosmopolitan outlook and have become dynamic multicultural economies. Actually, the ‘ethnic economies’ are often seen as elements of a solution to structural labour market problems and ethnicity is increasingly regarded as a viable resource for economic advancement on the labour market in Europe. Against this background, the aim of this paper is to investigate the forms of migrant entrepreneurship in diverse urban contexts and to interpret the differences in the social integration in European cities. The paper is based on a review of findings in the literature that addresses the migrant entrepreneurship experiences of different European countries such as Germany, The Netherlands, Belgium, UK, France, Denmark, Sweden, Italy and Portugal. The focus of the paper will be on a comparative evaluation of the various forms of migrant entrepreneurship in European countries. This comparative evaluation enables us to identify the ‘European’ models of migrant entrepreneurship and to highlight the determinants of migrant entrepreneurship in Europe. |
| Date: | 2005–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa05p776&r=eec |
| By: | Leonor Vasconcelos Ferreira; Adelaide Figueiredo |
| Abstract: | The basic aim of this paper is to assess existing welfare regimes in the countries of European Union before and after the enlargement of May 2004 (EU 15 and EU 25) following a comprehensive approach that considers different dimensions of welfare through an extended set of variables. The paper starts with a brief presentation of current debates on welfare regimes and the new social policy agenda in the European Union. It proceeds with the selection of different dimensions of social welfare and social policy, and related key variables that constitute the database for the following statistical analysis. Correlations, factor analysis and cluster analysis are performed in order to produce the clustering of welfare regimes as well as a tentative interpretation of underlying characteristics and patterns of welfare mix and social policies in European Union. |
| Date: | 2005–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa05p72&r=eec |
| By: | David-Jan Jansen; Jakob de Haan |
| Abstract: | We show that comments by euro area central bankers contain information on future ECB interest rate decisions, but that the comments mainly reflect recent developments in macroeconomic variables. Furthermore, models using only communication variables are outperformed by straightforward Taylor rule models. During the first years of the European Economic and Monetary Union, comments by ECB Executive Board members and high-level Bundesbank policy-makers were more informative than comments by national central bank presidents. We also find that differences of opinion were informative when they concerned the outlook for economic growth. Finally, our results suggest that the ECB used communication especially to signal interest rate increases. |
| Keywords: | central bank communication; interest rate decisions; ECB; Taylor rule; ordered probit models |
| JEL: | E43 E52 E58 |
| Date: | 2005–12 |
| URL: | http://d.repec.org/n?u=RePEc:dnb:dnbwpp:075&r=eec |
| By: | Olivia Galgau (DULBEA, Université Libre de Bruxelles, Brussels.); Khalid Sekkat (Centre Emile Bernheim, Solvay Business School, Université Libre de Bruxelles, Brussels.) |
| Abstract: | The paper investigates whether the impact of the Single Market Program (SMP) on FDI inflows to Europe is different across member countries and tries to highlight potential explanations. One of them being related to countries’ specialization, the investigation is also conducted at the sector level. The results show that the impact of the SMP differs across countries and sectors. However, the industrial specialization story does not seem to be the right explanation to the differences across countries. Further investigation suggests that the functioning of institutions constitutes a better explanation. Hence, further benefits from the SMP in terms re-allocation of activities can be expected provided additional reforms are adopted. |
| Keywords: | FDI, Economic integration, The European Union. |
| JEL: | F21 |
| Date: | 2004–06 |
| URL: | http://d.repec.org/n?u=RePEc:sol:wpaper:04-025&r=eec |
| By: | Robert-Paul Berben; W. Jos Jansen |
| Abstract: | This paper investigates whether there has been a structural increase in financial market integration in nine European countries and the US in the period 1980-2003. We employ a GARCH model with a smoothly time-varying correlation to estimate the date of change and the speed of the transition between the low and high correlation regimes. Our test produces strong evidence of greater comovement across the board for both stock markets and government bond markets. Dates of change and speeds of adjustment vary widely across country linkages. Stock market integration is a more gradual process than bond market integration. The impact of European monetary union (EMU) is rather limited, as it has mainly affected the timing of bond market correlation gains (but hardly their size) and has had little discernible effect on stock market integration. |
| JEL: | G21 L13 |
| Date: | 2005–12 |
| URL: | http://d.repec.org/n?u=RePEc:dnb:dnbwpp:060&r=eec |
| By: | Marta Pascual; David Cantarero |
| Abstract: | The aim of this paper is to analyse socio-economic inequalities in the European Union and their influence on health care. The empirical analysis is based mainly on data from the European Community Household Panel which contains data homogeneous across European Union countries and make comparisons possible. In addition, the functional form of the relationship between income and health, considering the impact of socioeconomic status among individuals whose medical needs are similar, is studied. |
| Date: | 2005–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa05p555&r=eec |
| By: | Deng, Yi (Department of Economics, Southern Methodist University) |
| Abstract: | Patent system in Europe has undergone significant changes during the 1970s around the establishment of the European Patent Office (EPO), and this paper tries to quantify the influence of such policy changes on the private value of European patents. Based on the patent renewal records, I estimate the private value of patents in Germany, France and the U.K. obtained through the EPO patenting route during the early 1980s, and compare the estimated value with the patent value in the same three countries before the establishment of the EPO, as estimated by Pakes (1986). The average quality and the private value of the EPO patents are substantially higher than those obtained through the national route. The uniform examination and granting procedure at the EPO has effectively eliminated the inter-country differences in the patentability standards and the scope of patents, and has significantly decreased the differences in patent value across these countries. I also find that the extension of the statutory limit to the maximal length of patent lives and changes in the renewal fee schedule have only had modest effects on patent value, and that the learning process of the EPO patents are much longer than that of the national patents. |
| Keywords: | European Patent Office, Private Value of Patents, Patent Regime Change |
| JEL: | O34 |
| Date: | 2005–11 |
| URL: | http://d.repec.org/n?u=RePEc:smu:ecowpa:0512&r=eec |
| By: | Wouter Jonkhoff; Menno Rustenburg |
| Abstract: | The paper deals with the appropriate treatment of indirect socio-economic effects of transport investments and policies. A central question is how assessment of indirect effects can be improved and harmonised in a European context. First, the paper describes state of the art in assessment (identifying types of indirect socio-economic effects, modelling). Secondly, an overview is presented on current practice in EU-countries. Market imperfections and cross-border effects appear as key conditions for the existence of indirect effects. The proposed starting point for analysis is therefore the total absence of market disturbances. This point of reference, however, is used in no country. The paper concludes by stressing the importance of harmonisation of transport initiative assessment, as well as elaboration on the distinction of types of effects as well as market imperfections. A very clear advantage of harmonisation in Europe would be the inclusion of cross-border effects as direct socio-economic effects in CBA where they concern national borders and not EU-borders, instead of viewing them as welfare effects ‘leaking away’ to other member countries. Especially the market imperfections characterising land markets (external effects, replacement value) and the disturbances and rigidities specific for European labour markets offer great perspectives for better analysis of transport projects and hence better decision making. |
| Date: | 2005–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa05p587&r=eec |
| By: | Johannes Bröcker; Nils Schneekloth |
| Abstract: | This paper studies the spatial impact of two main aspects of European transport policy, namely infrastructure investments and pricing. In its "White Paper: European Transport Policy for 2010: Time to Decide" the European Commission has laid down a comprehensive programme of transport policy within the EU, aiming at increasing the efficiency of the transport industry, developing the so-called trans-European infrastructure network and bringing the prices of transport services closer to the true marginal social cost. It is an important political issue whether the policy will enhance spatial cohesion in Europe or run counter the objective of a balanced economic development in the entire area of the EU. For one thing this is because spatial development objectives are themselves prominent goals among the catalogue of objectives to be attained by transport policy. Particularly infrastructure investments which are co-financed by the structural funds, are regarded a means of regional policy supporting less favoured regions. Furthermore, transport policies motivated by efficiency or environmental reasons may have undesired regional side effects, that could generate political backlash, unless one offers some compensation. The spatial impact of the two named policies is studied with the help of a spatial computable general equilibrium model, called CGEurope. It is a static model with a large number of regions covering the whole area of the EU including the new member states, plus neighbouring countries, some of them also subdivided by regions. Regions interact by trade flows. Interregional trade is costly, with trade costs depending inter alia on the state of infrastructure and on gasoline prices and infrastructure charges. Transport policies are simulated by varying the costs of transport and quantifying the impact on the welfare of households brought about by changes in goods and factor prices. We develop a series of policy scenarios and evaluate their impact an spatial equality or inequality using a whole bundle of indicators of spatial inequality. The paper documents theses scenarios, explains the modelling framework in brief, discusses the inequality indicators to be used and maps and tabulates the main results. |
| Date: | 2005–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa05p624&r=eec |
| By: | Alejandro Rodriguez Caro; Santiago Rodriguez Feijoó; Carlos Gonzalez Correa |
| Abstract: | In the present paper we study the degree of convergence in the European Union from the Purchasing Power Parity (PPP) point of view. The price of the shopping basket can be the cause of disparities in a global market in construction that, like the European Union, is formed by different countries with different consumption habits. In addition, in this construction process twelve out of fifteen countries of the EU have left its national currency to adopt the Euro like common currency. Therefore, it is necessary for the stability of the Union process in the long run that, among others, purchasing power of the different state members tends towards a same common value. Moreover, the question is whether that process of convergence within the European Union is taking place or not. In order to solve this question, the series of the Absolute Purchasing Power Parity (APPP) are estimated through the suggestion of Rodriguez et al (2004). These authors use the Harmonized Consumer Price Index in the European Union and the nominal exchange rates of the different currencies with euro. Monthly estimates of the APPP series for the 1995-2002 period are obtained for each of the fifteen countries. These figures show, for each country, their relative position to the average value of the European Union. Using these series we applied the Markov Chain methodology to study the time evolution of the distribution of APPP in the European Union. This methodology has been very used by its facility of calculation and interpretation of the results. Nevertheless, with the purpose of obtaining good estimations it is necessary to solve the discretization problem of a continuous variable. This is, to use a finite set, and relatively small number of states, for a variable with infinite values. In the present work different approaches are used to solve the problem. We test for structural change on the estimated probabilities using adapted test to Markov Chains. This allows us to study if an effect exists on the Purchasing Power Parity with the entrance of the Euro. Markov Chains are estimated by Maximum likelihood, and allow us to do different analyses. In the first place, we can study the mobility of the distribution, measured through the probabilities of permanence or not in the same state, and in the degree of diagonal structure of the resulting matrix. This objective can obtained by direct observation, calculating Mobility Index, or using expected time of first passage. Secondly, we can obtain the ergodic or long term distribution. This one shows the temporary evolution in the long run of the distribution, under the hypothesis of maintenance of the present conditions. This distribution would show the possible convergence or not of the whole distribution. We also estimate elasticities of ergodic probabilities, to analyze the effect of each probability in the Markov chain in the long run distribution. Results show differences with the Euro Entry, mobility towards convergence within the distribution is slow, with high elasticities of the ergodic distribution to changes in the transition probabilities. |
| Date: | 2005–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa05p457&r=eec |
| By: | Marjo Kasanko; Jose I. Barredo; Carlo Lavalle; Valentina Sagris |
| Abstract: | In this article we analyse the relationship between urban land use development and population density in fifteen European urban areas. In the last 20 years the extent of built-up areas in Europe has increased by 20%, exceeding clearly the 6% rate of population growth over the same period. This is one of the consequences of unsustainable development patterns in large areas of Europe. In order to illustrate such unsustainable process we show five sets of indicators on built-up areas, residential land use, land taken by urban expansion, population density and how the population takes up the built-up space.The results show that analysing urban land use development necessitates the use of complementary indicators. The built-up areas have grown considerably in a sample of 15 European cities. The most rapid growth dates back to 1950s and 1960s. The annual growth pace has slowed down in the 1990s to 0.75 %. In half of the studied cities over 90% of all new housing areas built after the mid-1950s are discontinuous urban developments. This trend is increasing the use of private car and fragmentation of natural areas among others negative effects. When putting these findings into the context of stable or decreasing urban population, it is clear that the structure of most of European cities has become less compact, which demonstrates a de-centralisation process of urban land uses. We close by discussing on one hand the common urban land use and population density trends and on the other hand differences between the studied cities. Although most studied urban areas have experienced dispersed growth, as a result of the analysis we divide the cities in three groups: - compact cities,- cities with looser structures and lower densities,- and cities in the midway between the extremes. |
| Date: | 2005–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa05p149&r=eec |
| By: | Michael H. Stierle |
| Abstract: | The recent EU enlargement poses immense challenges for EU regional policy in terms of increased necessity of priority setting and achieving allocative efficiency. In this context, the focus of this paper will be whether – or more precisely under which conditions – EU structural funds can be effective in making a significant contribution to real convergence in Europe. Based on theoretical insights and experiences in the incumbent Member States, conclusions will be drawn (though not exclusively) for the new Member States. In view of the very limited budgetary means of EU cohesion policy, representing less than 0.5 per cent of the EU-15 GDP, the following conditions will be identified as being important for maximising the impact: First, sound and supportive national policies, including macroeconomic policies, national regional policies and good governance, are an essential precondition for the achievement of a real impact. Second, the scarce financial means must be concentrated spatially, i.e. on the poorest Member States and regions and particularly in these countries they must be focused on national growth and growth poles rather than on equalising living conditions across the country and (more) dispersion of economic activity. Third, the strategic design of Structural Funds programmes must allow for a concentration on those types of expenditures most likely to lead to growth and employment. Fourth, ways have to be found to achieve the most effective use of EU Structural Funds. Before these conditions for maximising the impact of Structural Funds are described, empirical evidence and methods for assessing their contribution to real convergence in Europe will be discussed. |
| Date: | 2005–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa05p596&r=eec |
| By: | Nicolien Schermer |
| Abstract: | This paper investigates the position of the Phillips curve in a single currency area, when the countries have different levels of unemployment. We will use the aggregation hypothesis to show that allowing for the dispersion of unemployment is essential to quantifying the level of inflation corresponding to any given unemployment rate. Next, we point out that the EMU countries have attained increasingly similar unemployment rates since the creation of the single market and the adoption of the single currency. This observed synchronisation in countries’ labour markets in the 1990s has reduced the effect of the aggregation hypothesis. This implies that the level of inflation is now lower for any given level of unemployment, which eases the choices of monetary policy makers. |
| Keywords: | aggregation hypothesis; Phillips curve; EMU; labour markets. |
| JEL: | C52 E24 F15 |
| Date: | 2005–12 |
| URL: | http://d.repec.org/n?u=RePEc:dnb:dnbwpp:076&r=eec |
| By: | Aikaterini Kokkinou; Yannis Psycharis |
| Abstract: | The aim of this paper is to analyse the relationship between the inward Foreign Direct Investment in South-eastern European countries in relation with the factors which determine the ability of a country to attract foreign investment capital. The paper begins with the definition of the main terms related with Foreign Direct Investment and literature review related with the factors which determine the regional allocation of the FDI flows. Specifically, the article focuses on the definition of the Foreign Direct Investment flows, regional attractiveness, location of FDI, as well as the factors which affect the location of FDI activities within and across countries and regions. Then, the article presents a comparative analysis of the relative position of the South-eastern European countries, as far as FDI is concerned. Moreover, the paper attempts, through a model specification and results analysis to estimate the relationship between FDI and a selection of potential determining factors. The analysis is made for thirteen South-eastern European countries covering a period of twelve years. The paper is completed with reference to prospects regarding the implementation and planning of an effective FDI attraction policy aiming at economic development and cohesion. |
| Date: | 2005–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa05p382&r=eec |
| By: | Claudia Olivetti (Boston University); Barbara Petrongolo (London School of Economics CEP, CEPR and IZA Bonn) |
| Abstract: | Gender wage and employment gaps are negatively correlated across countries. We argue that non-random selection of women into work explains an important part of such correlation and thus of the observed variation in wage gaps. The idea is that, if women who are employed tend to have relatively high-wage characteristics, low female employment rates may become consistent with low gender wage gaps simply because low-wage women would not feature in the observed wage distribution. We explore this idea across the US and EU by estimating gender gaps in potential wages. We recover information on wages for those not in work in a given year using alternative imputation techniques. Imputation is based on (i) wage observations from other waves in the sample, (ii) observable characteristics of the nonemployed and (iii) a statistical repeated-sampling model. We then estimate median wage gaps on the resulting imputed wage distributions, thus simply requiring assumptions on the position of the imputed wage observations with respect to the median, but not on their level. We obtain higher median wage gaps on imputed rather than actual wage distributions for most countries in the sample. However, this difference is small in the US, the UK and most central and northern EU countries, and becomes sizeable in Ireland, France and southern EU, all countries in which gender employment gaps are high. In particular, correction for employment selection explains more than a half of the observed correlation between wage and employment gaps. |
| Keywords: | median gender gaps, sample selection, wage imputation |
| JEL: | E24 J16 J31 |
| Date: | 2006–01 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp1941&r=eec |
| By: | Leo de Haan; Elmer Sterken |
| Abstract: | We analyze the mortgage interest rate setting behavior of the four largest banks in the Dutch mortgage market using advertised interest rates at a daily frequency from October 1997 to July 2003. We find that the pass-through of funding cost changes into mortgage interest rates on 5 and 10 year loans differs among these banks. Further, there is evidence of asymmetric price adjustment, in the sense that funding cost increases are more quickly passed on than decreases. |
| JEL: | G21 L13 |
| Date: | 2005–12 |
| URL: | http://d.repec.org/n?u=RePEc:dnb:dnbwpp:061&r=eec |
| By: | George Petrakos; Lefteris Topaloglou |
| Abstract: | Borders and border regions receive a special attention in the new post-1989 European architecture characterized by the processes of integration, transition and enlargement. What is actually happening to borders and border regions within this new environment? Are borders being abolished, weakened or are they being reproduced under a different pattern? What are the determinant factors which define the level and type of cross border interaction? This paper attempts to shed some light into the dynamics, perceptions and the new challenges concerning the “border phenomenon”. An empirical evidence is based on a survey at the Greek-Albanian-FYROM-Bulgarian border zone by analysing survey data. The survey, aims to evaluate a) the level and the type of cross-border interaction b) the obstacles and the limit of greater cross border interaction c) the existing perceptions and images of the other side of the borders d) the effectiveness of policies to stimulate interaction, e) the effects (positive and negative) of greater interaction on the border regions, f) the effects of EU enlargement on the c-b regions. |
| Date: | 2005–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa05p424&r=eec |
| By: | Matos, Joao Amaro de; Lacerda, Ana |
| Abstract: | In the framework of incomplete markets, due to the non-existence of trade at some points in time, and using a partial equilibrium analysis, we show how the bid-ask spread of an European derivative is generated. We also ¯nd conditons for the existence of the spread. These conditions concern the market structure of the maret-makers, which can be a oligolopoly with price competition or a monopoly, as well as the riskaversion of the demand and supply of the market. |
| Date: | 2006 |
| URL: | http://d.repec.org/n?u=RePEc:unl:unlfep:wp480&r=eec |
| By: | Antonio Russo; Myriam Jansen-Verbeke; Jan Van der Borg |
| Abstract: | This paper develops an analytic framework for the ESPON 1.3.3 project “The Role and Spatial Effects of Cultural Heritage and Identity”, started in December 2004 by a network of 12 European Universities under the leadership of Ca’ Foscari University of Venice. The conceptual framework of this project lies on the assumption that the cultural heritage of Europe is not just an ensemble of tangible assets to be defended through passive conservation, but rather an element of dynamism of the territory, affecting trajectories of regional development. Thus the proper identification and valorisation of the cultural heritage of Europe is to be considered an integral component of regional planning, with the potential to increase cohesion within an enlarged European Union. The establishment of an “European identity”, gaining from difference and variety, is also part of this vision. In this light, the ESPON 1.3.3 project sets out to highlight the spatial expressions and effects of heritage assets and identify the (existing or potential) elements of territorial coherence at the regional and local scale, mapping the geographical aspects that are actually strengthening regional identities and networks. This paper introduces a list of regional indicators of the European cultural heritage and identity, reflecting elements such as heritage availability, concentration and diversity, spatial patterns at the local and cross-regional level, local embeddedness of intangible heritage assets, pressures on- and potential for the development of heritage, and the governance structure of the heritage management institutions. Parameters are quantitative and qualitative observation allowing the “ordering” of the territory and thus the identification of regional typologies from the elaboration of different ordering criteria. Indicators will cover multiple dimensions regarding the supply, the demand and the spatial organisation of cultural heritage. Data cover the whole NUTS III regional delimitation. The issue of the territorial cohesion of cultural heritage assets is also addressed, considering the following multiple “dimensions” of the interconnection between different “objects” or carriers of meaning: hardware (the infrastructural system), software (images and actual uses), orgware (organizational networks) and shareware (partnerships that support the process of development). These elements are compiled in a framework or model used to analyse the territorial expressions of cultural heritage and identity. |
| Date: | 2005–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa05p461&r=eec |
| By: | Cécile Batisse; Nathalie Eyckmans; Olivier Meunier; Michel Mignolet |
| Abstract: | The European experience of convergence reveals that the catching up of some peripheral countries takes place by an increase of their regional disparities. In a way there is a tension between growth and social cohesion. That is particularly worrying for the socio-economic balance of the European Union when one expects that the enlargement to the Central and Eastern European countries will introduce more heterogeneity in space. Is public intervention able to reduce this tension and to seek at once more efficacy and more cohesion, i.e. equity? The aim of this article is to model public intervention in its two dimensions. The first is a search for efficacy through expected increased returns, i.e. productivity gains resulting from agglomeration forces. The second is a search for some collective gains that arise from a preservation of social cohesion by limiting disparities. Tax rates, fiscal incentives and capital grants are not the only public determinants of firm’s location choice. Public expenditures and economic infrastructures also play an important role on location behaviours. Regions compete by offering fiscal incentives and by supplying public goods in order to attract mobile capital. Our approach rests on several recent contributions. Models of effective taxation, in particular the seminal work of King and Fullerton (1984), have proved to be an appropriate framework to assess the impact of fiscal and financial incentives on firm’s investment decisions. In addition, two inspiring studies provide us with an elegant way to take into account both agglomeration economies, which stimulate collective efficacy [Garcia-Milà and McGuire (2002)] and the reduction of interregional disparities [Garcia-Milà and McGuire (2004)]. The key factor in this analysis is the solidarity level between regions. The approach could make the trade-off between efficiency and equity more explicit. These theoretical and methodological contributions are then subject of an application to the Belgian economy and its regions, at the heart of the European issues. |
| Date: | 2005–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa05p638&r=eec |
| By: | Manfred M. Fischer; Claudia Stirböck |
| Abstract: | Club-convergence analysis provides a more realistic and detailed picture about regional income growth than traditional convergence analysis. This paper presents a spatial econometric framework for club-convergence testing that relates the concept of club-convergence to the notion of spatial heterogeneity. The study provides evidence for the club-convergence hypothesis in cross-regional growth dynamics from a pan-European perspective. The conclusions are threefold. First, we reject the standard Barro-style regression model which underlies most empirical work on regional income convergence, in favour of a two regime [club] alternative in which different regional economies obey different linear regressions when grouped by means of Getis and Ord's (1992) local clustering technique. Second, the results point to a heterogeneous pattern in the pan-European convergence process. Heterogeneity appears in both the convergence rate and the steady-state level. But, third, the study also reveals that spatial error dependence introduces an important bias in our perception of the club-convergence and shows that neglection of this bias would give rise to misleading conclusions. |
| Date: | 2005–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa05p6&r=eec |
| By: | Eleftherios Sapsalis (Centre Emile Bernheim, Solvay Business School, Université Libre de Bruxelles, Brussels); Bart Van Looy (Research Division INCENTIM, KUL, Leuven); Bruno Van Pottelsberghe (Centre Emile Bernheim, Solvay Business School, Université Libre de Bruxelles, Brussels); Koen Debackere (Onderzoeksgroep Bedrijfseconomie, strategie en innovatie (MSI), KUL, Leuven); Julie Callaert (Research Division INCENTIM, KUL, Leuven) |
| Abstract: | the objective of this paper is to analyse the determinants of 87 European universities’ patenting activities. The findings reveal that size of universities and the presence of disciplines (medicine and engineering) are positively associated with the size of the patent portfolio. There is no significant relationship between the R&D intensity of the regional business environment and the amount of patent activity while scientific capabilities do coincide with higher levels of patent activity. Higher levels of patent activity are observed within universities adopting simultaneously a scientific and entrepreneurial orientation. Finally, an additional interaction effect signals the combined, positive, effect of the presence of an entrepreneurial orientation and higher levels of participation of academic staff in valorisation activities. |
| Keywords: | academic patenting. |
| JEL: | O32 O34 O52 |
| Date: | 2005–04 |
| URL: | http://d.repec.org/n?u=RePEc:sol:wpaper:05-005&r=eec |
| By: | Peter Vlaar |
| Abstract: | In this paper, it is investigated to what extent optimal investment policy by Dutch pension funds is affected by changes in regulation. It turns out that a complete market valuation method increases the cost of the defined benefit pension relative to a fixed discount rate method, as high pension premiums are to be payed exactly when expected future returns are the lowest. In practice, this timing problem does not seem to be severe for Dutch pension funds as solvency requirements are only applied to guaranteed pension rights, whereas a major part of pension benefits (indexation) is conditional. Moreover, a fixed interest rate may still be used to calculate pension premiums. Regarding the asset mix, the optimal duration of bonds in portfolio seems higher than currently observed, both under market valuation and under a fixed discount rate method. The new regulatory rules only slightly reduce the attractiveness of equity investment. |
| Keywords: | pension valuation; equity investment; optimal duration. J.E.L. Code: C15; G11; G23; G28 |
| JEL: | H55 J26 |
| Date: | 2005–12 |
| URL: | http://d.repec.org/n?u=RePEc:dnb:dnbwpp:063&r=eec |
| By: | Andreas Kopp |
| Abstract: | The paper investigates the productivity effects of national road infrastructure investment in Western Europe.The study makes use of newly available OECD/ECMT data showing a secular decline of productivity growth and of transport infrastructure investment. Infrastructure availability is modelled like an unpaid shadow factor allowing for more than constant aggregate returns to scale while firms operate with linear homogenous production functions, with transport as an input. Productivity increases are measured by the Toernquist index The link between road investment and macroeconomic productivity is studied using a new econometric technique to avoid the identification problem that discredited the early literature. The results show that there is no clear over- or underinvestment. The aggregate level of road investment seems to be such that the implied rate of return is close to the opportunity cost of private capital. |
| Date: | 2005–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa05p631&r=eec |
| By: | Massimo Baldini; Luca Beltrametti |
| Abstract: | In the last decade, many countries have adopted tax schemes specifically aimed at financing programs for Long Term Care (LTC). These mechanisms have important distributional implications both within and across generations. Given the process of demographic ageing, the issue of inter and intra-generational fairness is deeply linked with the problem of the long-term financial equilibrium of an LTC fund. In this paper we first compare, on a microdata sample of the Italian population, the distributive effects (both on current income and across generations) of six alternative approaches to finance an LTC scheme. In particular, we consider a hypothetical LTC scheme (with a size equivalent to that of the German one) to be introduced in Italy and analyse the distributive implications of some tax options, taken from the financing mechanisms implemented or under discussion in Germany, Luxembourg, Japan and Italy.In the second part of the paper we move from a static to a dynamic perspective: we study the long-term sustainability of an hypothetical Pay as You Go (Payg) LTC scheme operating in Italy (that is, assuming the Italian projected demographic trends) under scenarios that consider alternative indexation rules, growth rates of GNP, future incidence of disability among age groups. |
| Keywords: | long term care; distributive effects; tax-benefit model; intertemporal sustainability; trust fund |
| JEL: | H24 G23 H55 |
| Date: | 2005–06 |
| URL: | http://d.repec.org/n?u=RePEc:mod:cappmo:0506&r=eec |
| By: | Nigel C. O'Leary (WELMERC, University of Wales Swansea); Peter J. Sloane (WELMERC, University of Wales Swansea and IZA Bonn) |
| Abstract: | Earlier papers have found considerable heterogeneity in the returns to degrees in relation to subjects of study, degree classification and higher education institution. In this paper we examine heterogeneity of returns across British regions using the Labour Force Survey. We find substantial variations in the financial rewards available to graduates across regions with much higher returns in London and the South East than elsewhere, although adjusting for regional differences in the cost-of-living narrows such differences considerably. Decompositional analysis, after controlling for regional differences in both occupational and industrial structures, suggests that coefficient effects dominate composition effects, consistent with agglomeration effects being important. These results have implications for the recent changes to student funding in England, Scotland and Wales. |
| Keywords: | education, degree, rates of return, regions |
| JEL: | A22 A23 I21 J31 R1 |
| Date: | 2006–01 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp1947&r=eec |