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on European Economics |
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Issue of 2024‒01‒15
35 papers chosen by Simon Sosvilla-Rivero, Instituto Complutense de Análisis Económico |
| By: | AMORES Antonio F. (European Commission - JRC); BASSO Henrique; BISCHL Simeon; DE AGOSTINI Paola (European Commission - JRC); DE POLI Silvia; DICARLO Emmanuele; FLEVOTOMOU Maria; FREIER Max; MAIER Sofia (European Commission - JRC); GARCÍA-MIRALLES Esteban; PIDKUYKO Myroslav; RICCI Mattia (European Commission - JRC); RISCADO Sara |
| Abstract: | This paper analyses the distributional impact of high consumer inflation in the euro area and government measures to compensate households in 2022. The study uses the tax-benefit microsimulation model for the European Union (EUROMOD) with microdata as the input – EU statistics on income and living conditions (EU-SILC) and household budget surveys (HBS) – to quantify the distributional impact of inflation, income support measures and measures aimed at containing prices. The analysis confirms that purchasing power and welfare were more severely affected by the 2022 inflation surge in lower-income households than in higher-income households. Fiscal measures compensated households for about a third of their welfare loss, though with significant differences between countries. At the same time, fiscal measures closed around 60% of the inequality gap between lower and higher-income households. Most fiscal measures were not particularly well targeted at low-income households, resulting in a higher than necessary fiscal burden to cushion the distributional impact of the inflationary shock. |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:taxref:202310&r=eec |
| By: | Priscila Espinosa (Department of Applied Economics, Universitat de València, Spain); Daniel Aparicio-Pérez (Department of Finance and Accounting, Universitat Jaume I, Castellón, Spain; Department of Applied Economics, Universitat de València, Valencia, Spain); Emili Tortosa-Ausina (IVIE, Valencia and IIDL and Department of Economics, Universitat Jaume I, Castellón, Spain) |
| Abstract: | The European Union’s Next Generation EU (NGEU) program and its implementation through the Recovery and Resilience Facility (RRF) were conceived with the premise of promoting a coordinated fiscal response within the European Union to ad- dress the challenges arising from the COVID-19 crisis. The program provides Member States with access to grants and concessional loans aimed at supporting their recovery and resilience plans, which must incorporate coherent packages of reforms and investments. We evaluate the regional economic impact of the NGEU program in Spain, as one of the European countries most affected by the pandemic and, therefore, one of the program’s main beneficiaries. To do so, we employ counterfactual techniques, which are particularly useful when considering alternative scenarios, such as the existence or absence of NGEU funds. It is noteworthy that the use of counterfactual models involves an inherent conservatism that warrants caution in interpreting the results. According to our results, the economic impact led to an increase in GDP per capita during 2022, a perspective that is projected into 2023 and 2024, compared to a scenario without NGEU funds. This analysis, aligned with the principles of counterfactual models and their inherent conservatism, sheds light on the economic transformations attributable to the implementation of these exceptional measures. |
| Keywords: | counterfactual, COVID-19, fiscal multipliers, Next Generation EU funds, regions, synthetic control method |
| JEL: | C32 E27 E60 H50 R10 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:jau:wpaper:2023/07&r=eec |
| By: | BARRIOS Salvador (European Commission - JRC); PYCROFT Jonathan; STASIO Andrzej Leszek (European Commission - JRC); STOEHLKER Daniel (European Commission - JRC) |
| Abstract: | We assess the extent to which the $391bn of energy and climate tax provisions under the Inflation Reduction Act in the United States could lead to a potential reallocation of investment and production activities away from the European Union. The analysis is based on the JRC’s CORTAX multi-country, general equilibrium model in order to provide estimates of the potential impact of the IRA on main macroeconomic aggregates for the EU as a whole and the US. Our results suggest that, if the US had adopted the subsidies scheme unilaterally, the IRA provisions would have boosted investment in this country at the expense of investment in the EU. However, taking in to account available funding from various EU programmes that are planned under the current Multiannual Financial Framework and NextGenerationEU (e.g. from the Recovery and Resilience Facility), the simulation results suggest that EU green sectors would significantly increase their activity while the positive impact on the EU economy as a whole would be positive and noticeable. |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:taxref:202308&r=eec |
| By: | António Afonso; José Alves; Sofia Monteiro |
| Abstract: | We assess the impact of geopolitical risk and world uncertainty on the sovereign debt risk of 26 European Economies during the period 1984-2022, through the implementation of OLS-Fixed Effects regressions and the Generalized Method of Moments (GMM). We find that geopolitical tensions and global uncertainty in border countries contribute to the rise of European country’s sovereign risk as measured by 5- and 10-year Credit Default Swaps (CDS) and bond returns. Moreover, this interconnection is more pronounced during turbulent times such as the subprime crisis. Lastly, we found that geopolitical tensions in other country’ groups such as South America and Asia have a significant impact on the government risks of European countries. |
| Keywords: | geopolitical risk, world uncertainty, political tensions, sovereign risk, European economy, GMM, subprime crisis |
| JEL: | C23 E44 G32 H63 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_10801&r=eec |
| By: | Mehdi El Herradi; Aurélien Leroy |
| Abstract: | Central banks have recently adjusted their communication strategies to enhance engagement with the general public, yet there is limited understanding of public sentiment regarding monetary policy announcements. This paper investigates whether monetary policy announcements influence household (subjective) well-being in Germany over the period 2002-2018 and finds that tightening surprises reduce life satisfaction. Notably, the impact of a one standard deviation monetary policy shock on well-being is equivalent to a 4% decline in household income. This effect is particularly pronounced among middle-aged individuals and those belonging to the middle-class. |
| Keywords: | Monetary policy; Subjective Well-Being; Survey data; Euro Area |
| Date: | 2023–12–01 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2023/248&r=eec |
| By: | Marika Viertola (VATT Institute for Economic Research) |
| Abstract: | This paper studies how Nordic multinational enterprises (MNEs) react to tax incentives generated by international corporate income tax rate differences and shift profit to low tax countries. A firm level panel data set containing ownership and accounting information is used to study profit shifting within the time period of 2012-2017. Applying a panel data adjusted Hines-Rice approach including firm and year fixed effects results in statistically significant tax semi-elasticity estimates between -0.7 to -1.3. The results are confirmed by several robustness checks as well as by applying the newest methods in two-way fixed effects literature. This suggests that MNEs with ultimate owners located in the Nordic countries seem to react to tax rate differences by shifting profit. Additionally, the MNEs within the euro area seem to engage more heavily in profit shifting. |
| Keywords: | Multinational frms; proft shifting; international corporate taxation; tax avoidance |
| JEL: | F23 H25 H26 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:fit:wpaper:18&r=eec |
| By: | FATICA Serena (European Commission - JRC); PYCROFT Jonathan; STASIO Andrzej Leszek (European Commission - JRC); STOEHLKER Daniel (European Commission - JRC) |
| Abstract: | We examine the effect of compliance frictions in reclaiming foreign withholding taxes on Foreign Portfolio Investments (FPI) using a comprehensive panel of FPI stocks of 83 countries, including EU Member States, between 2005 and 2019 and country-pair-specific withholding tax rates. We find a negative and statistically significant elasticity of the FPI stock of equity and debt holdings to non-refundable withholding taxes. The estimated elasticities imply that a 10 percentage point reduction in non-refundable withholding taxes increases the FPI stock of equity holdings by 8.2%. In a second step, we employ a general equilibrium model to quantify the macroeconomic implications of compliance frictions. In absence of costs in the withholding tax reclaim process, average GDP in the EU27 countries would increase by 0.10%, capital and wages would rise by 0.21% and 0.06%, respectively, suggesting noticeable macroeconomic costs arising from such compliance frictions. |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:taxref:202309&r=eec |
| By: | Mikropoulou, Christina D.; Vouldis, Angelos T. |
| Abstract: | The analysis of contagion in financial networks has primarily focused on transmission channels operating through direct linkages. This paper develops a model of financial contagion in the interbank market featuring both direct and indirect transmission mechanisms. The model is used to analyse how shocks originating from outside sectors impact the functioning of the interbank market and investigates the emergence of instability in this setting. We conduct simulations on actual interbank bilateral exposures, constructed manually from a supervisory dataset reported by the largest euro area banks. We find that while the impact of direct contagion increases gradually with the shock intensity, the effect of indirect contagion is subject to threshold effects and can increase abruptly when the threshold is exceeded. In addition, the risk posed by indirect contagion has a higher upper bound compared to direct contagion. Finally, we find that in terms of overall impact, the shocks to the value of sovereign debt and non-bank financial institutions represent the most significant risk to the functioning of the interbank market. JEL Classification: G01, G21, G23, D85 |
| Keywords: | banking sector, contagion, funding concentration risk, network analysis |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:ecb:ecbwps:20232883&r=eec |
| By: | Fasani, Francesco (University of Milan); Frattini, Tommaso (University of Milan); Pirot, Maxime (University of Milan) |
| Abstract: | Is naturalization an effective tool to boost refugees' labor market integration? We address this novel empirical question by exploring survey data from 21 European countries and leveraging variation in citizenship laws across countries, time, and migrant groups as a source of exogenous variation in the probability of naturalization. We find that obtaining citizen status allows refugees to close their gaps in labor market outcomes relative to non-refugee migrants while having non-significant effects on the latter group. We then further explore the heterogeneity of returns to citizenship in a Marginal Treatment Effect framework, showing that migrants with the lowest propensity to naturalize would benefit the most if they did. This reverse selection on gains can be explained by policy features that make it harder for more vulnerable migrant groups to obtain citizenship, suggesting that a relaxation of eligibility constraints would yield benefits for both migrants and host societies. |
| Keywords: | forced migration, citizenship, asylum policy |
| JEL: | J15 J61 F22 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16651&r=eec |
| By: | CERUTTI Isabella (European Commission - JRC); NARDO Michela (European Commission - JRC) |
| Abstract: | This note is focused on the supply chain of semiconductor products, the chips, increasingly at the core of the digital transformation. It identifies EU stance in the world supply chain, its dependency on non-EU products and technologies and provides a non-exhaustive overview of its vulnerabilities, discussing the challenges of listing a complete set of dependencies. The semiconductor supply chain is highly specialized and complex with a worldwide dimension and a strong interdependency among firms. In the EU value chain, nearly 80% of input suppliers and 63% of customers to the companies in the chain are located outside the EU, defining the boundaries of EU vulnerability and its dependence on geopolitical considerations. EU dependency on foreign jurisdictions appears at different levels of the supply chain. The provision of raw materials and intermediate inputs, the dependency on water and energy are only some examples of potential sources of vulnerabilities if natural or man-made risks occur. This study is part of the activities of the European Semiconductor Expert Group, which aims at preparing the ground for the implementation of the future European Chips Act. It stems from the mapping of EU companies operating in the semiconductor supply chain undertaken at EU level, and complements the European Semiconductor value chain consultation which has been undertaken in the second half of 2022. |
| Date: | 2023–09 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc133850&r=eec |
| By: | Francesco Pappadà; Kenneth S. Rogoff |
| Abstract: | This paper offers a new approach to measuring the size of the informal economy based on VAT data for the European Union. Although data intensive, our EVADE measure is simpler and more transparent than existing measures. EVADE also shows more variation across countries of Europe than earlier measures, including higher informality in Greece, Italy and Spain, for example. Moreover, we find considerably higher variation within countries across time; in a cross-country time series regression, controlling for tax rates, we confirm that the informal economy grows significantly in recessions and decreases in booms, which we term the “Hugo effect”. |
| JEL: | E26 E32 H26 O17 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:31963&r=eec |
| By: | MOLICA Francesco (European Commission - JRC); MARQUES SANTOS Anabela (European Commission - JRC); CONTE Andrea (European Commission - JRC) |
| Abstract: | The paper investigates Cohesion Policy programmes’ ability to define accurate policy outputs, in the form of output targets, to monitor their own performance. More specifically, the analysis explores the extent to which targets set by ERDF programmes are revised over time and seeks to identify specific patterns in relation to different areas (spending categories; typology of regions; etc.). Our results point to significant challenges faced by programmes in producing realistic targets as changes are frequently introduced for a vast majority of them. The paper provides useful evidence in the context of the emerging debate as to whether embracing a full performance based model conditioning the access to funds to the achievement of results/outputs would improve the efficiency and effectiveness of Cohesion Policy. |
| Keywords: | cohesion policy; Recovery and Resilience Facility; ERDF; performance; European Union |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:termod:202312&r=eec |
| By: | Johannes Breckenfelder (European Central Bank); Pierre Collin-Dufresne (École Polytechnique Fédérale de Lausanne; Swiss Finance Institute; NBER); Stefano Corradin (European Central Bank) |
| Abstract: | We document a recurring pattern in German sovereign bond prices during the Eurosystem's Public Sector Purchase Program (PSPP): a predictable rise towards month-end, followed by a subsequent drop. We propose a sequential search-bargaining model, capturing salient elements of the PSPP's implementation, such as the commitment to transact within an explicit time horizon. The model suggests that this predictable pattern emerges as a consequence of imperfect competition among dealers who are counterparties to the Eurosystem. Predicated on the model's implications, we find that the price fluctuations are markedly accentuated: (a) for bonds specifically targeted by the PSPP, (b) during monthly intervals wherein the Eurosystem engages with a lower number of counterparties, and (c) when the Eurosystem aims for a larger purchase amount. Finally, we explore the potential consequences of our findings for the design and implementation of future asset purchase programs. |
| Keywords: | Quantitative Easing, Sequential Search-Bargaining Model, Imperfect Competition, Dealers, Financial Market Design |
| JEL: | G12 G21 E52 E58 |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:chf:rpseri:rp23104&r=eec |
| By: | AMORES Antonio F (European Commission - JRC); CHRISTL Michael; DE AGOSTINI Paola (European Commission - JRC); DE POLI Silvia; MAIER Sofia (European Commission - JRC) |
| Abstract: | The hike in energy prices across Europe in 2022 and 2023 led to significant government interventions. Several governments introduced ‘energy price cap’ measures to alleviate the increased burden on households’ expenditures. This paper presents an ex ante assessment of the expected distributional impact of the inflation surge and the cushioning effect of these price cap policies introduced in 2023 in Germany, the Netherlands and Austria. Our analysis combines macroforecasting techniques with microsimulation methods and shows that the inflationary shock of 2023 will more severely affect those households at the bottom of the income distribution. Our results also highlight that the price cap measures will only partly absorb the negative distributional consequences of the inflationary shock while it would completely offset the increase in energy poverty. Additionally, we show that simpler measures, such as lump-sum cash transfers, are more efficient (considering government's budgetary costs) in cushioning the inequality-increasing effects of inflation, especially when such measures are targeted. Price caps, on the other hand, are more efficient in reducing energy poverty, given the non-negligible incidence of energy poverty in middle-income groups. |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:taxref:202311&r=eec |
| By: | DELIS Fotis (European Commission - JRC); DELIS Manthos; LAEVEN Luc; ONGENA Steven |
| Abstract: | We provide estimates of profit shifting for over 2 million firm-year observations in 100 countries over the period 2009-2020. Employing nonparametric estimation techniques within a mainstay model of profit shifting, we examine how profits for both parent and subsidiary firms within a multinational group respond to marginal changes in the composite tax indicator. The key merit of this approach is that it yields firm-year estimates of profit shifting. We find that multinational firms engage in extensive profit shifting by maintaining affiliates in low-tax countries and zero-tax havens. Multinational groups with an ultimate owner in tax havens exhibit the largest responses of profits to the tax incentive. Our comprehensive estimates of global profit-shifting volumes exceed those obtained elsewhere in the literature using firm-level data and are in line with estimates obtained using macro-level data. Our new database opens important avenues to analyse the sources and effects of profit shifting. |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:taxref:202312&r=eec |
| By: | Martin Lnenicka; Anastasija Nikiforova; Mariusz Luterek; Petar Milic; Daniel Rudmark; Sebastian Neumaier; Caterina Santoro; Cesar Casiano Flores; Marijn Janssen; Manuel Pedro Rodr\'iguez Bol\'ivar |
| Abstract: | Open government and open (government) data are seen as tools to create new opportunities, eliminate or at least reduce information inequalities and improve public services. More than a decade of these efforts has provided much experience, practices, and perspectives to learn how to better deal with them. This paper focuses on benchmarking of open data initiatives over the years and attempts to identify patterns observed among European countries that could lead to disparities in the development, growth, and sustainability of open data ecosystems. To do this, we studied benchmarks and indices published over the last years (57 editions of 8 artifacts) and conducted a comparative case study of eight European countries, identifying patterns among them considering different potentially relevant contexts such as e-government, open government data, open data indices and rankings, and others relevant for the country under consideration. Using a Delphi method, we reached a consensus within a panel of experts and validated a final list of 94 patterns, including their frequency of occurrence among studied countries and their effects on the respective countries. Finally, we took a closer look at the developments in identified contexts over the years and defined 21 recommendations for more resilient and sustainable open government data initiatives and ecosystems and future steps in this area. |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2312.00551&r=eec |
| By: | Mr. Serhan Cevik; Sadhna Naik |
| Abstract: | Households across Europe are struggling with a double crisis—the worst inflation shock since the World War II and a sudden correction in house prices. There is a rich literature on how housing price cycles affect consumer spending, finding mixed results with a wide range of consumption responses to changes in housing wealth. In this paper, using quarterly data on 20 countries in Europe over the period 1980–2023, we analyze the dynamic relationship between inflation-adjusted housing wealth and consumer spending and obtain statistically significant and economically intuitive results. Household consumption responds positively and swiftly to changes in real house prices and gross disposable income as expected. Using the estimated coefficients, we can deduce that the average quarter-on-quarter decline of -1.96 percent in real house prices in the first quarter of 2023 in Europe could dampen consumer spending by about -0.51 percentage points in real terms on a cumulative basis over a horizon of eight quarters. |
| Keywords: | House prices; wealth effects; consumer spending; Europe |
| Date: | 2023–12–08 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2023/256&r=eec |
| By: | Giannetti, Mariassunta; Jasova, Martina; Loumioti, Maria; Mendicino, Caterina |
| Abstract: | Using confidential information on banks’ portfolios, inaccessible to market participants, we show that banks that emphasize the environment in their disclosures extend a higher volume of credit to brown borrowers, without charging higher interest rates or shortening debt maturity. These results cannot be attributed to the financing of borrowers’ transition towards greener technologies and are robust to controlling for banks’ climate risk discussions. Examining the mechanisms behind the strategic disclosure choices, we highlight that banks are hesitant to sever ties with existing brown borrowers, especially if they exhibit financial underperformance. JEL Classification: G11, G15, G21 |
| Keywords: | credit exposure, financial institutions, strategic disclosure, sustainability reporting, zombie lending |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:ecb:ecbwps:20232882&r=eec |
| By: | Michela Giorcelli |
| Abstract: | This paper studies to what extent the transfer of US managerial technologies to Europe after World War II contributed to closing the gap with US businesses. Between 1952 and 1958, the US government sponsored the Productivity Program, which promoted management training trips for European managers at US firms. Through the analysis of reports compiled by UK, France, Germany, and Italian participating firms, I first document that these companies claimed between 5 and 10% yearly productivity increase thanks to the program. The fact that European businesses were not forced to adopt the American management model, but could adapt it to their firm needs and existing business practices was a key aspect of the program’s success. Second, using data on US and Italian participating firms’ performance I show that Italian firms grew on average 7.8 percent faster than that of US companies in the ten years after the start of the program. Moreover, the distribution of productivity of Italian and US firms became more similar over years, confirming a performance convergence between these companies. |
| JEL: | M5 M50 N64 N73 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:31959&r=eec |
| By: | PAPAZOGLOU Michail (European Commission - JRC); TORRECILLAS JODAR Juan (European Commission - JRC); CARDONA Melisande; CALZA Elisa (European Commission - JRC); VAZQUEZ-PRADA BAILLET Miguel (European Commission - JRC); RIGHI Riccardo |
| Abstract: | The Digital Decade Policy Programme aims at accelerating the digital transformation of Europe by fostering developments in key digital areas, while setting ambitious targets to be achieved by 2030. The Digital Decade targets are defined across four cardinal points: digital skills, digital infrastructures, digitalisation of business, and digitalisation of public services. This report presents a unique dataset, containing data on past and planned EU level public investment that supports digital transformation, and estimates their maximum potential contribution along the Digital Decade targets. The mapping of the main EU funding instruments shows a significant potential contribution to the digital transformation of the public sector and digitalisation of businesses. Specific areas such as semiconductors, quantum and the adoption of advanced technologies by firms are expected to benefit from a smaller share of funding. This report provides focused support to monitor the digital landscape of the European Union over the next decade. |
| Date: | 2023–09 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc134647&r=eec |
| By: | Tristan Earle Grupp; Prakash Mishra; Mathias Reynaert; Arthur A. van Benthem |
| Abstract: | The European Union designates 26% of its landmass as a protected area, limiting economic development to favor biodiversity. This paper uses the staggered introduction of protected-area policies between 1985 and 2020 to study the selection of land for protection and the causal effect of protection on vegetation cover and nightlights. Our results reveal protection did not affect the outcomes in any meaningful way across four decades, all countries, protection cohorts, and a wide range of land and climate attributes. We conclude that European conservation efforts lack ambition because policymakers select land for protection not threatened by development. |
| Keywords: | land protection, conservation, biodiversity, deforestation, vegetation cover, nightlights, staggered difference-in-differences |
| JEL: | Q23 Q24 Q57 R14 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_10820&r=eec |
| By: | Kuang, Lida; Lee, Ji-eun |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:fribpd:280328&r=eec |
| By: | Chikako Baba; Ting Lan; Ms. Aiko Mineshima; Florian Misch; Magali Pinat; Asghar Shahmoradi; Jiaxiong Yao; Ms. Rachel van Elkan |
| Abstract: | Geoeconomic fragmentation (GEF) is becoming entrenched worldwide, and the European Union (EU) is not immune to its effects. This paper takes stock of GEF policies impinging on—and adopted by—the EU and considers how exposed the EU is through trade, financial and technological channels. Motivated by current policies adopted by other countries, the paper then simulates how various measures—raising costs of trade and technology transfer and fossil fuel prices, and imposition of sectoral subsidies—would affect the EU economy. Due to its high-degree of openness, the EU is found to be exposed to GEF through multiple channels, with simulated losses that differ significantly across scenarios. From a welfare perspective, this suggests the need for a cautious approach to GEF policies. The EU’s best defence against GEF is to strengthen the Single Market while advocating for a multilateral rules-based trading system. |
| Keywords: | Geoeconomic fragmentation; cross-border restrictions; trade; innovation; multinational production; energy; European Union; Single Market |
| Date: | 2023–11–30 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2023/245&r=eec |
| By: | Hazans, Mihails; Masso, Jaan; Maurseth, Per Botolf |
| Abstract: | Do employees with supervisory responsibilities differ from other workers in terms of human values, especially those potentially affecting the quality and efficiency of supervision? This paper uses data from rounds 7-9 of the European Social Survey to examine the selection of employees into supervisory positions in nine Baltic Sea region countries, focusing on ten basic values and four higher order values identified by Schwarz (1992). In eight out of nine countries considered, statistically significant association with supervisory responsibilities is found for three higher order values: positive for Openness to Change and Self-Enhancement but negative for Conservation. By contrast, Self-Transcendence (covering Benevolence and Universalism) is not significantly associated with supervision. In Estonia, Finland, Denmark and (to a smaller extent) Norway and Germany, we find evidence for adverse selection into supervisory jobs based on the Power value posing a risk of autocratic behaviour. When looking at the link between the supervisor's values and the number of subordinates, we find that values that make it easier or harder to become a supervisor tend to work the same way in supervising more workers. |
| Keywords: | supervisory responsibilities, human values, adverse selection, social trust |
| JEL: | D91 J24 M51 P52 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:glodps:1361&r=eec |
| By: | Jonathan Créchet (Department of Economics, University of Ottawa, Ottawa, ON); Étienne Lalé (Department of Economics, York University); Linas Tarasonis (CEFER, Bank of Lithuania) |
| Abstract: | We propose new data moments to measure the role of life-cycle worker flows between employment, unemployment and out of the labor force in shaping cross-country differences in aggregate employment. We then show that a suitably extended version of the Diamond-Mortensen-Pissarides model can capture well these data moments. Two features of the model are crucial for this result: heterogeneity in match quality and endogenous search intensity. We examine the implications of this model for the sources of employment dispersion across Europe's largest countries, assessing the contribution of factors related to (i) the production technology, (ii) search, and (iii) policies. The sources of cross-country employment dispersion differ substantially across ages. Technology factors account for most of the employment variance of youths and prime-age workers, whereas search and policies are the main drivers of employment differences for older individuals. |
| Keywords: | Employment, Unemployment, Labor Force Participation, Life cycle, Worker Flows, Labor Market Institutions |
| JEL: | E02 E24 J21 J64 J82 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ott:wpaper:2306e&r=eec |
| By: | Hazans, Mihails (University of Latvia); Masso, Jaan (University of Tartu); Maurseth, Per Botolf (Norwegian Business School (BI)) |
| Abstract: | Do employees with supervisory responsibilities differ from other workers in terms of human values, especially those potentially affecting the quality and efficiency of supervision? This paper uses data from rounds 7-9 of the European Social Survey to examine the selection of employees into supervisory positions in nine Baltic Sea region countries, focusing on ten basic values and four higher order values identified by Schwarz (1992). In eight out of nine countries considered, statistically significant association with supervisory responsibilities is found for three higher order values: positive for Openness to Change and Self-Enhancement but negative for Conservation. By contrast, Self-Transcendence (covering Benevolence and Universalism) is not significantly associated with supervision. In Estonia, Finland, Denmark and (to a smaller extent) Norway and Germany, we find evidence for adverse selection into supervisory jobs based on the Power value posing a risk of autocratic behaviour. When looking at the link between the supervisor's values and the number of subordinates, we find that values that make it easier or harder to become a supervisor tend to work the same way in supervising more workers. |
| Keywords: | supervisory responsibilities, human values, adverse selection, social trust |
| JEL: | D91 J24 M51 P52 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16643&r=eec |
| By: | Jacques Bughin; Francis Hintermann; Philippe Roussière |
| Abstract: | Digitisation has long been central to the efforts of business organisations globally. The resulting efficiencies are undoubtedly crucial as businesses struggle through such adverse circumstances as viruses, wars, and economic headwinds. Now, however, there is ample evidence to show that there is a newer technological card that companies should strongly consider laying on the table. |
| Keywords: | Crisis, European companies, AI |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:ict:wpaper:2013/365934&r=eec |
| By: | Mr. Serhan Cevik; Mr. Nadeem Ilahi; Mr. Krzysztof Krogulski; Ms. Grace B Li; Sabiha Mohona; Yueshu Zhao |
| Abstract: | EU’s neighborhood countries (EUN) have lagged the EU on emissions mitigation; coal-heavy power generation and industrial sectors are a key factor. They have also trailed EU countries in emissions mitigation policies since 2000, with little use of market-based instruments, and they still have substantial fossil fuel subsidies. Increasingly stringent EU mitigation policies are asociated with lower emissions in EUN. Overall output effects of the CBAM, in its current form, would be limited, though exports and emissions-intensive industries could be heavily impacted. A unilaterally adopted economywide carbon tax of $75 per ton would significantly lower emissions by 2030, with minimal consequences for output or household welfare, though a safety net for the affected workers may be necessary. To become competitive today by attracting green FDI and technology, overcoming infrastructure constraints and integrating into EU’s supply chains, EUN countries would be well served to front load decarbonization, rather than postpone it for later. |
| Keywords: | Climate change; carbon emissions; climate change mitigation ; carbon tax; Europe |
| Date: | 2023–12–01 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2023/246&r=eec |
| By: | Davide Azzolini; Nicola Doppio; Luca Mion; Iunio Quarto Russo; Alessio Tomelleri |
| Abstract: | Innovating product design is crucial for firms operating in the digital sector as it is closely linked with innovation capability and, therefore, with firm performance and productivity. In this paper, we run a randomized controlled trial to assess if participating in an open innovation initiative increases SMEs’ capability to design more competitive digital products. More specifically, the intervention aimed at increasing firms’ knowledge of the Design Sprint and their readiness to implement user-centered design techniques. 190 SMEs based in 7 different European countries took part in the field trial in spring 2021. We find that the intervention increased participants’ knowledge about user-centered design methods, although no statistically significant effects are found on participants’ intention to adopt that in their firms. This may be traced back to organizational and financial constraints typically related to the small-sized firms involved. |
| Keywords: | Open Innovation, SMEs, Randomized Controlled Trial, User Experience Design, Design Sprint |
| JEL: | D22 M31 O31 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:fbk:wpaper:2024-01&r=eec |
| By: | Silvia Rocchetta; Martina Iori; Andrea Mina; Robert Gillanders |
| Abstract: | We study the effects of different types of technological diversification on the performance of regional economies. We focus on the relatedness and unconventionality of technological capabilities as drivers of GDP and employment growth. Using economic indicators from Eurostat regional statistics and patent records from the European Patent Office (EPO) PATSTAT and the OECD RegPat databases, we estimate Panel Vector Autoregression models and generate Impulse Response Functions to assess to what extent and with what persistence relatedness and unconventionality affect growth. Our findings, which have implications for place-based innovation policies, reveal that technological relatedness has short-term effects on employment growth and negative effects on GDP growth, whereas technological unconventionality has a long-lasting positive impact on GDP growth and no effect on employment growth. |
| Keywords: | Technological capabilities; Diversification; Relatedness; Unconventionality; Innovation; Regional development |
| Date: | 2023–12–23 |
| URL: | http://d.repec.org/n?u=RePEc:ssa:lemwps:2023/46&r=eec |
| By: | TORRECILLAS JODAR Juan (European Commission - JRC); PAPAZOGLOU Michail (European Commission - JRC); CALZA Elisa (European Commission - JRC); CARDONA Melisande; VAZQUEZ-PRADA BAILLET Miguel (European Commission - JRC) |
| Abstract: | This report presents a wide-ranging analysis of private investments related to the Digital Decade thematic areas in the European Union (EU) in comparison with other relevant economic actors. The report examines investments in gigabit, 5G, semiconductors, edge computing, quantum technology, and the adoption of cloud computing, big data, and artificial intelligence by businesses. Results reveal that the EU presents lower levels of investments than the US and China in several digital sectors, particularly in fixed broadband coverage, 5G, and semiconductors. While European firms perform well in edge computing investments, they lag behind in venture capital funding compared to the US and China. Additionally, the EU faces investment shortages in the adoption of cloud computing, big data, and AI, with Chinese firms showing substantial investments and revenues in these areas. These results suggest that increased investments and support to enhance the EU's digital competitiveness could be needed in order to achieve the objectives of the Digital Decade Policy Programme. |
| Date: | 2023–09 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc134743&r=eec |
| By: | Sean Ennis (UEA - University of East Anglia [Norwich]); Marc Ivaldi (TSE-R - Toulouse School of Economics - UT Capitole - Université Toulouse Capitole - UT - Université de Toulouse - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Vicente Lagos (IP Paris - Institut Polytechnique de Paris) |
| Abstract: | This paper examines the impact of most favored nation (MFN) clauses on retail prices, taking advantage of two natural experiments that changed vertical contracting between hotels and major digital platforms. The broad E.U. intervention narrowed the breadth of "price parity" obligations between hotels and major Online Travel Agencies (OTAs). Direct sales by hotels to customers subsequently became relatively cheaper. Comparisons with hotel pricing outside the E.U. confirm the reduction in prices for mid-level and luxury hotels. France and Germany went further and eliminated all price-parity agreements. This stronger intervention was associated solely with a significant additional price-reducing effect for mid-level hotels in Germany. Overall, wide MFNs are associated with higher retail prices. Regulating MFNs reduced prices with primary effects coming either from the narrow price-parity intervention or, perhaps, from direct sales becoming cheaper than OTAs in both E.U. and non-E.U. countries, and, interestingly, not from complete elimination of MFNs. |
| Keywords: | Price Parity Clause (PPC), Most favored nation (MFN), Most favored customer (MFC), Hotel Industry, Impact Evaluation, Online Travel Agency (OTA), digital platforms |
| Date: | 2023–05 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04315828&r=eec |
| By: | Schlund, David (Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI)) |
| Abstract: | The introduction of clean hydrogen as a future energy commodity has prompted significant interest in developing dedicated transportation and storage infrastructures as an enabler for cross-border hydrogen trade and cost-efficient supply. This paper addresses the complex challenges associated with the development of a European hydrogen infrastructure within the existing natural gas network while maintaining the security of supply for natural gas. Through an extension of an existing dispatch model for European natural gas supply and transportation by endogenous investments in hydrogen production, transportation, and storage infrastructure, a comprehensive analysis of the interplay between natural gas and hydrogen supply becomes accessible. The new model is formulated as a mixed-integer linear program in order to explicitly consider the binary decision of repurposing natural gas pipelines. The results offer insights into the cost-efficient strategic planning of a European hydrogen network by simulating a range of scenarios with varying economic and technical constraints. The case study finds a dominant role of the availability of renewable energy sources in shaping the network. Also, providing flexibility through flexible imports, production, or hydrogen storage becomes an essential element in a future hydrogen supply chain. The interconnection of all European countries with dedicated hydrogen pipelines is robust across all scenarios. However, the sizing and choice of large import pipelines strongly depend on the assumed techno-economic constraints. |
| Keywords: | hydrogen economics; hydrogen infrastructure; hydrogen storage; hydrogen trade; strategic energy planning; mixed-integer linear program |
| JEL: | C61 L95 M20 Q41 Q42 Q48 |
| Date: | 2023–12–05 |
| URL: | http://d.repec.org/n?u=RePEc:ris:ewikln:2023_008&r=eec |
| By: | TANGI Luca (European Commission - JRC); COMBETTO Marco; MARTIN BOSCH Jaume; RODRIGUEZ MÜLLER Paula (European Commission - JRC) |
| Abstract: | This report provides the result of a research study conducted within the context of the Public Sector Tech Watch, an observatory developed by DG DIGIT, with the support of the Joint Research Centre (JRC), that provides a knowledge hub and a virtual space where public administrations, civil society, GovTech companies and researchers can find and share knowledge and experience. The report’s primary goal is to offer an analysis of how Artificial Intelligence (AI) systems are improving interoperability in the European Public Sector. The findings are based on three pillars: (i) a literature and policy review on the synergies between AI and interoperability; (ii) a quantitative analysis of a selected set of 189 use cases fitting the purpose of the research question; and (iii) a qualitative study going deeper into some illustrative cases. The findings highlight that the one-fourth of the cases collected are using AI techniques to support interoperability through a varied set of applications. Moreover, the semantic interoperability layer is fundamental in most of the cases. In addition, ontologies and taxonomies combined with AI can help in establishing interoperability between different systems. The solutions analysed classify, detect and provide structure, among other actions performed on data. Hence, AI has the capability to standardise, clean, structure and increase the usage of large volumes of data, thus improving overall quality and making it easier to use and share between different systems. |
| Date: | 2023–10 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc134713&r=eec |
| By: | Phoebe Koundouri; Konstantinos Dellis; Angelos Plataniotis |
| Abstract: | This paper delves into the multifaceted impacts of climate change on Europe. It examines the immediate risks, including infrastructure damage and health crises, and explores the broader socio-economic consequences. The paper highlights Europe's strategic responses, such as the European Green Deal, and its efforts in pioneering innovative, sustainable solutions. Key initiatives like the Net-Zero Cities program and the role of Public-Private Partnerships are discussed, emphasizing the need for holistic, cross-sector collaboration. It also addresses the financial mechanisms and regulatory frameworks crucial for supporting the green transition. Ultimately, the paper underscores the EU's commitment to a sustainable, resilient future, balancing economic growth with environmental stewardship. |
| Date: | 2023–12–21 |
| URL: | http://d.repec.org/n?u=RePEc:aue:wpaper:2320&r=eec |