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on European Economics |
| By: | Wilco Bolt; Heiko Schmiedel |
| Abstract: | This paper analyzes the welfare implications of creating a Single Euro Payments Area. We study the effects of increased network compatibility and payment scale economies on consumer and merchant card fees and its impact on card usage. In particular, we model competition among debit cards and between debit and credit cards. We show that competitive pressures dampen merchant fees and increase total card acceptance. The paper argues that there is room for multilateral interchange fee arrangements to achieve optimal consumer and merchant fees, taking safety, income uncertainty, default risk, merchant's pricing power, and the avoided cost of cash at the retailers side into account. Consumers and merchants are likely to benefit the most from the creation of SEPA when sufficient payment card competition alleviates potential monopolistic tendencies. Key Words: SEPA, card network competition, optimal pricing, economic welfare |
| Keywords: | SEPA; card network competition; optimal pricing; economic welfare |
| JEL: | L11 G21 D53 |
| Date: | 2010–01 |
| URL: | http://d.repec.org/n?u=RePEc:dnb:dnbwpp:239&r=eec |
| By: | Salvatori, Andrea (ISER, University of Essex) |
| Abstract: | All industrialized countries have Employment Protection Legislation (EPL) for permanent workers and Restrictions on the use of Temporary Employment (RTE). The (ambiguous) effects of these on the levels of employment and unemployment have been extensively studied, but nothing is known empirically about their well-being implications. Using longitudinal data from the European Community Household Panel, the author conducts the first study of the link between both EPL and RTE and workers' wellbeing. The results provide evidence that both permanent and temporary employees gain from reforms that ease restrictions on temporary employment but leave firing costs for permanent workers unchanged. This finding contrasts with common claims found in the political economy literature. |
| Keywords: | temporary employment, employment protection legislation, job satisfaction |
| JEL: | J28 |
| Date: | 2010–01 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp4685&r=eec |
| By: | Bell, David N.F. (University of Stirling); Blanchflower, David G. (Dartmouth College) |
| Abstract: | This paper reviews current issues in youth labour markets in developed countries. It argues that young people aged 16-25 have been particularly hard hit during the current recession. Using the USA and UK as cast studies, it analyses both causes and effects of youth unemployment using micro-data. It argues that there is convincing evidence that the young are particularly susceptible to the negative effects of spells of unemployment well after their initial experience of worklessness. Because the current youth cohort is relatively large, the longer-term outlook for youth unemployment is quite good, but there is a strong case for policy intervention now to address the difficulties that the current cohort is having in finding access to work. |
| Keywords: | youth unemployment, scarring, ethnic crime, health, life satisfaction, wages, ALMP |
| JEL: | J01 J11 J21 J23 J38 J64 |
| Date: | 2010–01 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp4705&r=eec |
| By: | McCarthy, Colm |
| Keywords: | Financial crises--Ireland; Fiscal policy--Ireland; |
| Date: | 2009–10–18 |
| URL: | http://d.repec.org/n?u=RePEc:ner:ucddub:urn:hdl:10197/1528&r=eec |
| By: | Holly, Sean (University of Cambridge); Pesaran, Hashem (University of Cambridge); Yamagata, Takashi (University of York) |
| Abstract: | This paper provides a method for the analysis of the spatial and temporal diffusion of shocks in a dynamic system. We use changes in real house prices within the UK economy at the level of regions to illustrate its use. Adjustment to shocks involves both a region specific and a spatial effect. Shocks to a dominant region – London – are propagated contemporaneously and spatially to other regions. They in turn impact on other regions with a delay. We allow for lagged effects to echo back to the dominant region. London in turn is influenced by international developments through its link to New York and other financial centers. It is shown that New York house prices have a direct effect on London house prices. We analyse the effect of shocks using generalised spatio-temporal impulse responses. These highlight the diffusion of shocks both over time (as with the conventional impulse responses) and over space. |
| Keywords: | house prices, cross sectional dependence, spatial dependence |
| JEL: | C21 C23 |
| Date: | 2010–01 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp4694&r=eec |
| By: | Guido Ascari (Università di Pavia); Andrea Vaona (Department of Economics (University of Verona)) |
| Abstract: | Regional patterns of inflation persistence have received attention only at a very coarse level of territorial disaggregation, that of EMU member states. However economic disparities within EMU member states are an equally important policy issue. This paper considers a country with a large regional divide, i.e., Italy, at a fine level of territorial disaggregation (NUTS3). Our results show that economically backward regions display greater inflation persistence. Moreover, we show that higher persistence is linked to a lower degree of competitiveness in the retail sector. Finally, the inflation persistence at the national level does not present any geographical aggregation bias, because it equals the mean of inflation persistence of provincial data. |
| Keywords: | inflation persistence, retail sector, regions |
| JEL: | E0 E30 R0 R10 |
| Date: | 2010–02 |
| URL: | http://d.repec.org/n?u=RePEc:ver:wpaper:4/2010&r=eec |