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on European Economics |
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Issue of 2025–03–17
eightteen papers chosen by Simon Sosvilla-Rivero, Instituto Complutense de Análisis Económico |
| By: | Öner, Cihat (Tilburg University, School of Economics and Management); Garcia Anton, Ricardo (Tilburg University, School of Economics and Management) |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:tiu:tiutis:4a730696-713e-4e8f-820d-574ff0db346d |
| By: | Ermisch, John |
| Abstract: | The paper introduces to comparative cross-national fertility research a method to formalise what is meant by the TFR’s of countries ‘moving together’. It is based on the estimation of long run fertility relationships which are stationary series (so called ‘cointegrating equations’). Six sets of countries with similar TFR movements within each were identified: Northwest Europe (England and Wales, France, Netherlands and Belgium); (2) Southern Europe (Italy, Spain and Portugal); (3) the Nordic countries (Denmark, Sweden, Norway and Finland); (4) Germany and Austria; (5) the Eastern Europe group of Poland, Czechia, Hungary and Estonia); and (6) the group of Russia, Belarus and Lithuania. There are unique features of TFR movements in each region. But Northwest Europe, the Nordic countries and Southern Europe all share a decline in their TFR during the past decade, albeit from different levels of fertility. This strongly suggests that factors influencing fertility during this period do not stem from particular features in each country but broader influences, whether social or economic. |
| Date: | 2023–09–28 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:nej84_v1 |
| By: | Vîntu, Denis |
| Abstract: | This study examines how fiscal policy affects the economy in order to assess the degree of uncertainty around public finances. The Financial Approach focuses on the collection and utilization of private property by public administration. The title of this paper indicates that it deals with dynamic tax policy concerns. These include the relationship between long-term expectations and short-term outcomes, the impact of fiscal policy on capital formation, economic development, and intergenerational equity, and the extent to which current policies impede the introduction of potential future policies. Dynamic analysis has recently surpassed static analysis in a number of economic fields. It is appropriate to focus on the monetary strategy in particular because it has been modified and adjusted over time in the Republic of Moldova. These adjustments are frequently made beforehand, while they occasionally take into account the present financial situation when it wasn't mentioned before. It should not be shocking that financial variables are always shifting. The direction of the economy is affected by the current policy changes, which ineluctably call for other policy adjustments in the future. The expectation of these future adjustments, however, also has an impact on the current outcomes since it ensures that the consequences of past monetary actions remain, even in the absence of the entire future financial arrangement. |
| Keywords: | fiscal policy, budget fiscal deficit, primary account deficit, value-added tax, taxation. |
| JEL: | E3 E37 H3 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:123504 |
| By: | Borowczyk-Martins, Daniel (Copenhagen Business School) |
| Abstract: | I produce novel evidence on worker reallocation across employers and between employment and nonemployment/unemployment for several European countries over the past two decades. I construct a dataset of monthly transition rates by developing a novel approach to measure them using cross-sectional data from the European Union Labor Force Survey. Transition rates exhibit similar cyclical patterns across countries, but their levels are persistently different. I compute an indicator of the pace of worker reallocation up the job ladder, and find that it varies substantially across countries, is pro-cyclical, and exhibits a systematic positive relationship with wage inflation. |
| Keywords: | labor market flows, job ladder, business cycles, wage inflation, Phillips curve |
| JEL: | E24 E32 J63 |
| Date: | 2025–02 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17719 |
| By: | Moloney, Niamh |
| Abstract: | This note considers human rights review of resolution decisions and processes – a context in which property rights can be limited or sus-pended given the operation of resolution decisions, including bail-in and sale decisions1) – in the context of the UK resolution regime and the relevance of the European Convention on Human Rights (the Convention) and the Charter of Fundamental Rights of the EU (the Charter) following the withdrawal of the UK from the EU. It outlines the UK framework, considers the current approach to rights review, and closes with the implications of the UK withdrawal from the EU on rights review, ex ante and ex post, against the Convention and Charter. |
| JEL: | F3 G3 |
| Date: | 2024–02–15 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:122071 |
| By: | Antonietti, Roberto; Burlina, Chiara; Rodriguez-Pose, Andres |
| Abstract: | In this paper, we examine the effect of regional digital technology (including computing, communication equipment, software, and databases) on income distribution at the regional level. We aim to fill a gap in existing research by exploring the moderating role of formal and informal institutions —such as bonding and bridging social capital— in shaping how digital technology affects income inequality across European NUTS2 regions from 2006 to 2016. The results indicate that regions with greater access to digital technology are prone to higher levels of income inequality. However, this negative link is mitigated by strong formal and informal institutions, particularly through improved government effectiveness and bridging social capital. The findings are robust to potential endogeneity concerns, as demonstrated by the instrumental variable approach adopted. |
| Keywords: | digital technology; institutions; inequalities; European regions |
| JEL: | R11 O33 D02 R58 |
| Date: | 2025–04–30 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:127062 |
| By: | Nelozhin, Sergei |
| Abstract: | The short article is devoted to the burning issue of exclusive danger hanging over Europe. A way out of the situation is achievable only in the case of unprecedented efforts on the part of the EU leadership and the national governments in the Conti-nent, supplemented by the most active participation of the European public. Then the path to required overall social progress will be feasible. |
| Keywords: | Europe, military confrontation, modernizing weapons, inclusive world economic order, sustainable development |
| JEL: | A12 P00 |
| Date: | 2025–02–18 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:123702 |
| By: | Lange, Martin; McNamara, Sarah; Schmidt, Philipp |
| Abstract: | The labor market integration of asylum seekers remains a contested issue. Using the EU-Labor-Force-Survey, we characterize the state of asylum seekers' labor market integration in Europe, and provide representative statistics on several dimensions of integration. We compare asylum seekers to natives and economic migrants and find that asylum seekers struggle to integrate across European states, exhibiting employment rates of 10 percentage points lower than that of natives, on average, as well as a notable gap in job-quality. Analyzing self-reported barriers to employment, we document that asylum seekers' lower employment rates and job-quality are likely the result of institutional hurdles. |
| Keywords: | asylum seekers, refugees, labor market integration |
| JEL: | F22 K37 J11 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:zewdip:312191 |
| By: | Glenk, Gunther; Maier, Rebecca; Reichelstein, Stefan |
| Abstract: | Companies in various industries are under growing pressure to assess the costs of decarbonizing their operations. This paper develops a generic abatement cost concept to identify the cost-efficient combination of technological and operational changes firms would need to implement to drastically reduce greenhouse gas emissions from current production processes. The abatement cost curves resulting from our framework further serve as a decision tool for managers to determine the optimal abatement levels in the presence of environmental regulations, such as carbon pricing. We calibrate our model in the context of uropean cement producers that must obtain emission permits under the European Emission Trading System (EU ETS). We find that a price of €85 per ton of carbon dioxide (CO2), as observed on average in 2023 under the EU ETS, incentivizes firms to reduce their annual direct emissions by about one-third relative to the status quo. Yet, this willingness to abate emissions increases sharply if carbon prices were to rise above the €100 per ton of CO2 benchmark. |
| Keywords: | marginal abatement cost, carbon emissions, industrial decarbonization, cement production |
| JEL: | M1 O33 Q42 Q52 Q54 Q55 Q58 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:zewdip:312180 |
| By: | Vîntu, Denis |
| Abstract: | This paper aims to plot interest rates of bonds of equal credit and different maturities. Three kinds of yield curves incorporate normal, inverted, and flat. Ordinary curves highlight monetary extension, and descending inclining curves highlight financial downturn. As well as utilizing the state of the yield curve to assist with deciding the current and future strength of the economy, the yield curve possesses an extraordinary spot contrasted with any remaining yield curves as it is by and large viewed as the "benchmark curve." Yields on Government securities and different protections are for the most part among the least since they're supported by the full confidence and credit of the AAA. This permits security financial backers to contrast the yield curve and that of more dangerous resources, for example, the yield curve of Office securities or A-evaluated corporate securities for instance. The yield contrast between the two is alluded to as the "spread." The nearer the yields are together the more sure financial backers are in facing the challenge in a security that isn't government-supported. The spread for the most part augments during downturns and agreements during recuperations. |
| Keywords: | yield curve, stationarity, random walk, autocorrelation, heteroskedasticity. |
| JEL: | E5 G38 |
| Date: | 2024–03 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:123503 |
| By: | Lokshin, Michael M.; Sajaia, Zurab; Torre, Ivan |
| Abstract: | This paper constructs cost-of-living indexes for different groups of households to quantify the differences in the distribution of the burden of high inflation among the populations of countries in Europe and Central Asia. The analysis demonstrates that the cost-of-living crisis of 2022–23 has had a heterogeneous impact on European populations. Poor households appear to suffer the most from rising food and energy prices. Poverty and inequality rates and the profiles of the poor based on household-specific inflation rates systematically differ from those based on the standard consumer price index approach. Accounting for the variability of inflation rates across household types might help policy makers design policies that better protect vulnerable households and promote economic growth. |
| Date: | 2023–04–06 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wbrwps:10377 |
| By: | Collin, Matthew Edward |
| Abstract: | This paper estimates the policy and economic impacts of a European Union–led effort to review and “blacklist” jurisdictions based on their compliance with international standards designed to curb corporate profit shifting and private tax evasion. Using a combination of regression discontinuity and difference-and-difference methods, there is evidence of only limited improvements in tax governance four years after the inception of the list. There is also no clear evidence that the listing exercise had any impact on offshore wealth or shifted profits, largely because the bulk of jurisdictions that host both of these were not targeted by the European Union. The results suggest that “coercive” efforts to reduce global tax evasion and avoidance will struggle without better targeting and enforcement. |
| Date: | 2023–05–04 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wbrwps:10435 |
| By: | Christine Rifflart (OFCE - Observatoire français des conjonctures économiques (Sciences Po) - Sciences Po - Sciences Po) |
| Abstract: | Avec une croissance à 2, 7 % en 2023 et un très bon premier semestre 2024, l'économie espagnole affiche un dynamisme qui contraste avec les faibles performances observées dans les autres principaux pays de la zone euro. À la mi-2024, le PIB dépasse le niveau qu'il avait fin 2019 de 5, 8 %, soit comme en Italie (5, 5 %), et plus qu'en France (3, 7 %) et surtout en Allemagne (0 %). Il est revenu au niveau de son PIB potentiel. La croissance devrait baisser progressivement à partir du deuxième semestre 2024. Compte tenu d'un fort effet d'acquis en milieu d'année, la croissance serait à 2, 9 % sur l'ensemble de l'année, plus élevée qu'en 2023. Elle baisserait à 2, 2 % en 2025. Les tensions inflationnistes devraient être un peu plus marquées que dans le reste de l'UE. L'inflation atteindrait 2, 4 % fin 2025. |
| Keywords: | La dynamique perdure, envers et contre tous |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04904164 |
| By: | Gasior, Katrin; Jara, H. Xavier; Makovec, Mattia |
| Abstract: | By means of counterfactual simulation methods, this paper quantifies the role of tax–benefit policies in mitigating the shock of the COVID-19 pandemic to household income in the European Union. The tax-benefit microsimulation model for the European Union EUROMOD is used to decompose changes in the income distribution into the effects of: (i) earnings losses due to COVID-19, (ii) automatic stabilizers, (iii) monetary compensation schemes introduced during the pandemic; and (iv) COVID-19-specific reforms to taxes and benefits implemented by European Union governments. The results show a great deal of heterogeneity between countries in terms of earnings losses and the effect of tax-benefit policies during the COVID-19 pandemic. In most countries, the largest contribution to cushioning the economic shock of the pandemic comes from monetary compensation schemes. Automatic stabilizers also play a role, mainly through the effects of social insurance contributions, taxes, and unemployment insurance benefits. Tax-benefit systems cushioned incomes to a large extent even among those most severely affected by the shock to earnings, with an important role for monetary compensation schemes, but also a larger stabilizing effect of unemployment insurance. Among automatic stabilizers, social assistance benefits played an important role in cushioning the income shock for the poorest quintiles among the most severely affected, but only in selected countries. |
| Date: | 2023–08–14 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wbrwps:10546 |
| By: | Catherine Mathieu (OFCE - Observatoire français des conjonctures économiques (Sciences Po) - Sciences Po - Sciences Po) |
| Abstract: | L'économie britannique a renoué avec la croissance au premier semestre 2024, le PIB ayant augmenté de 0, 7 % au premier trimestre et de 0, 5 % au deuxième, après avoir baissé de 0, 3 % au second semestre 2023. L'activité a cependant ralenti pendant l'été 2024, le PIB mensuel n'ayant augmenté que de 0, 2 % sur un mois en août, après être resté stable en juin et juillet. L'inflation (mesurée selon l'indice des prix à la consommation harmonisé) a continué de baisser et n'était plus que de 2, 2 % sur un an en août 2024. Le ralentissement des prix et les perspectives d'une nouvelle décélération de l'activité, ont conduit la Banque d'Angleterre à abaisser son taux directeur de 0, 25 point en août dernier, pour l'amener à 5 %. La Banque d'Angleterre continuerait d'abaisser son taux directeur, pour le porter à 4 % au quatrième trimestre 2025. La baisse serait graduelle, la Banque souhaitant s'assurer que l'inflation restera bien proche de 2 %. Mais alors que la politique monétaire s'assouplirait, la politique budgétaire resterait restrictive, bien que les incertitudes soient nombreuses, dans l'attente du budget qui sera présenté le 30 octobre. La croissance du PIB britannique serait de 0, 9 % cette année et de 1, 2 % l'an prochain, proche de celle de la moyenne de la zone euro (respectivement 0, 7 % et 1, 2 %), mais inférieure à celle des États-Unis (2, 5 % et 1, 6 %). L'inflation serait de 1, 8 % sur un an en décembre 2025. Le taux de chômage approcherait 4, 9 %, contre 4 % à l'été 2024. Le déficit public serait ramené de 5, 8 % du PIB à 4, 3 % du PIB, la dette publique approchant 105 % du PIB, contre 100 % à la fin de 2023. À l'automne 2024, la situation conjoncturelle britannique laisse poindre une lumière au bout du tunnel, pour reprendre l'expression du Premier ministre Keir Starmer, lors de son discours devant le congrès des travaillistes, le 24 septembre dernier, mais la longueur du tunnel reste incertaine. |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04904202 |
| By: | Bernini, Andrea; Bossavie, Laurent Loic Yves; Garrote Sanchez, Daniel; Makovec, Mattia |
| Abstract: | Conclusive evidence on the relationship between corruption and migration has remained scant in the literature to date. Using data from 2008 to 2018 on bilateral migration flows across European Union and European Free Trade Association countries and four measures of corruption, this paper shows that corruption acts as both a push factor and a pull factor for migration patterns. Based on a gravity model, a one-unit increase in the corruption level in the origin country is associated with a 11 percent increase in out-migration. The same one-unit increase in the destination country is associated with a 10 percent decline in in-migration. |
| Date: | 2023–09–13 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wbrwps:10566 |
| By: | Céline Antonin (OFCE - Observatoire français des conjonctures économiques (Sciences Po) - Sciences Po - Sciences Po) |
| Abstract: | Au deuxième trimestre 2024, le niveau de PIB allemand dépasse à peine le niveau pré-Covid, une situation qui contraste de plus en plus avec celle des autres grands pays de la zone euro. La reprise en Allemagne n'en finit plus de se faire attendre, comme en atteste la croissance nulle du PIB au premier semestre 2024, sous l'effet du recul marqué de l'investissement privé et la faiblesse de la consommation privée. (premier paragraphe) |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04903025 |
| By: | Bachtrögler, Julia |
| Abstract: | This reflection paper examines the influence of administrative capacity on the absorption and effective use of Cohesion Policy funds. First, it examines the current level of absorption of Cohesion Policy funds in the 2014-2020 programming period. Second, a literature review on the relationship between administrative capacity and the absorption of Cohesion Policy funds highlights the factors affecting the availability of administrative resources. Third, the role of administrative capacity for the effectiveness of funds usage in EU regions is discussed. The literature concludes that the effects of Cohesion Policy are heterogeneous across regions. Administrative capacity is an important element of a region's absorptive capacity, also due to the project selection process through managing authorities. Therefore, measures should be taken to attract motivated and well-qualified staff and to ensure communication and coordination with stakeholders and other relevant bodies. Finally, a recent study on regional development opportunities of green and digital technologies is presented, pointing to the knowledge of administrative staff about regional characteristics and capabilities as essential contribution to "good" policy implementation |
| Keywords: | EU budget, cohesion policy, administrative capacity, absorption, regional policy implementation |
| JEL: | H83 H87 R58 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:zewdip:312186 |