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on Microeconomic European Issues |
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Issue of 2010‒04‒04
fifteen papers chosen by Giuseppe Marotta University of Modena and Reggio Emilia |
| By: | Cathrine Hagem (Statistics Norway) |
| Abstract: | The European Union (EU) identified some positive and negative externalities related to energy production and consumption when adopting its Renewable Energy and Climate Change Package. Given these externalities, we derive the optimal combination of policy instruments. Thereafter, we explore the second-best outcome, given constraints on the use of some policy instruments, due to political considerations and international regulations. We show that the choice of policy instruments to promote renewable energy production (subsidies versus green certificates) affects the optimal level of energy consumption taxes. A second-best optimum for the EU cannot be achieved without a coordination of energy taxes and renewable energy policy instruments in each country, given the externalities addressed in this paper. |
| Keywords: | climate policy; energy policy; green certificates; energy subsidies; energy ta |
| JEL: | D62 H21 H23 Q48 |
| Date: | 2010–03 |
| URL: | http://d.repec.org/n?u=RePEc:ssb:dispap:610&r=eur |
| By: | Christ, Julian P. |
| Abstract: | This paper contributes with empirical findings to European co-inventorship location and geographical coincidence of co-patenting networks. Based on EPO co-patenting information for the reference period 2000-2004, we analyze the spatial con figuration of 44 technology-specific co-inventorship networks. European co-inventorship (co-patenting) activity is spatially linked to 1259 European NUTS3 units (EU25+CH+NO) and their NUTS1 regions by inventor location. We extract 7.135.117 EPO co-patenting linkages from our own relational database that makes use of the OECD RegPAT (2009) files. The matching between International Patent Classification (IPC) subclasses and 44 technology fields is based on the ISI-SPRU-OST-concordance. We con firm the hypothesis that the 44 co-inventorship networks differ in their overall size (nodes, linkages, self-loops) and that they are dominated by similar groupings of regions. The paper offers statistical evidence for the presence of highly localized European co-inventorship networks for all 44 technology fields, as the majority of linkages between NUTS3 units (counties and districts) are within the same NUTS1 regions. Accordingly, our findings helps to understand general presence of positive spatial autocorrelation in regional patent data. Our analysis explicitly accounts for different network centrality measures (betweenness, degree, eigenvector). Spearman rank correlation coefficients for all 44 technology fields confirm that most co-patenting networks co-locate in those regions that are central in several technology-specific co-patenting networks. These findings support the hypothesis that leading European regions are indeed multi- filed network nodes and that most research collaboration is taking place in dense co-patenting networks. -- |
| Keywords: | Co-patenting,co-inventorship,networks,linkages,co-location,RegPAT |
| JEL: | C8 O31 O33 R12 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:fziddp:142010&r=eur |
| By: | Andrés Rodríguez-Pose (London School of Economics); Vassilis Tselios (University of Newcastle upon Tyne, and Spatial Economics Research Centre (SERC), London School of Economics) |
| Abstract: | Relatively little attention has been paid to the role that externalities play in determining the pecuniary returns to migration. This paper addresses this gap, using microeconomic data for more than 100,000 individuals living in the European Union (EU) for the period 1994-2001 in order to analyse whether the individual economic returns to education vary between migrants and nonmigrants and whether any observed differences in earnings between migrants and locals are affected by household and/or geographical (regional and interregional) externalities. The results point out that while education is a fundamental determinant of earnings., European labour markets – contrary to expectations – do not discriminate in the returns to education between migrants and non-migrants. The paper also finds that household, regional, and interregional externalities influence the economic returns to education, but that they do so in a similar way for local, intranational, and supra-national migrants. The results are robust to the introduction of a large number of individual, household, and regional controls. |
| Keywords: | Individual Earnings, Migration, Educational Attainment, Externalities, Household, Regions, Europe |
| JEL: | J |
| Date: | 2010–02 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2010.25&r=eur |
| By: | Karsten Hank (Mannheim Research Institute for the Economics of Aging (MEA)) |
| Abstract: | Using data from the 2004 Survey of Health, Ageing and Retirement in Europe, this paper investigates older workers’ perceptions of job security in eleven countries. We describe cross-national patterns and estimate multilevel models to analyse individual and societal determinants of self-perceived job security in the older labour force. While there are considerable cross-country variations around a median value of 23% of workers aged 50 or older ranking their job security as poor, none of our suggested macro-level variables – labour force participation rate, employment protection legislation, mean level of general social trust, and proportion disapproving of working beyond age 70 – bears statistically significant associations with individuals’ job security. Future research should aim at identifying statistically more powerful indicators of the supposed multilevel relationship between social context and older workers’ perceptions of job security. Moreover, supplementary findings indicate that further attention should be paid to the gender dimension of job insecurity. |
| Date: | 2009–04–03 |
| URL: | http://d.repec.org/n?u=RePEc:mea:meawpa:09176&r=eur |
| By: | Paul J.J. Welfens (Europäisches Institut für Internationale Wirtschaftsbeziehungen (Eiiw)); Jens K. Perret (Europäisches Institut für Internationale Wirtschaftsbeziehungen (Eiiw)) |
| Abstract: | Based on the OECD's classification of goods, we take a closer look at EU 15 countries and EU accession countries in terms of the dynamics of sectoral output growth - with due emphasis on the distinction between labor-intensive and science-intensive products. Sectoral output dynamics are explained by the (modified) revealed comparative advantage (RCA), specialization in terms of input intensity, the growth rate of RCA, past sectoral output dynamics and per capita output. In addition, we consider the development of nominal sectoral output development. Considerable differences between EU 15 and EU 10 countries were found, which point to different production regimes in leading EU countries and the Eastern European accession countries, respectively. This panel-based bottom-up approach to output growth suggests that structural change will affect the responsiveness of the supply side considerably. |
| Keywords: | RCA, Output Growth, Sektoral Output Analysis |
| JEL: | C23 O47 O52 R10 |
| Date: | 2010–01 |
| URL: | http://d.repec.org/n?u=RePEc:bwu:eiiwdp:disbei173&r=eur |
| By: | Schlüter, Stephan; Davison, Matt |
| Abstract: | In this article we present both a theoretical framework and a solved example for pricing an European gas storage facility and computing the optimal strategy for its operation. As a representative price index we choose the Dutch TTF day-ahead gas price. We present statistical evidence that the volatility of this index is time-varying, so we introduce a new continuous-time model by incorporating GARCH diffusion into an Ornstein-Uhlenbeck process. Based on this price process we use dynamic programming methods to derive partial differential equations for pricing a storage facility. As an example we apply our methodology to a storage site located in Epe at the German-Dutch border. In this context we investigate the effects of multiple contract types, and perform a sensitivity analysis for all model parameters. We obtain a value surface displaying the properties of a financial straddle. Both volatility and mean reversion influence the facility value - but only around the long-run mean of the gas price. The terminal condition, which includes information about the contract provisions, is of importance if it contains e.g. penalty terms for low inventory levels. Otherwise its influence is diminishing for increasing lease periods. -- |
| Keywords: | TTF gas price,GARCH diffusion,natural gas storage,dynamic computing |
| JEL: | C31 C61 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:iwqwdp:022010&r=eur |
| By: | Marcella Corsi (Sapienza, University of Rome); Chiara Crepaldi (Sapienza, University of Rome); Manuela Samek Lodovici (Sapienza, University of Rome) |
| Abstract: | The aim of this paper is to sum up the main issues at stake in the European Union, concerning gender equality in social inclusion and social protection policies. As is well known “Equality between women and men” is one of the founding principles of the Treaty of the European Union. However, despite progress made over past decades, gender inequalities are still persistent in a number of spheres. Poverty is increasingly feminised and especially affects single mothers and elderly women. Gender inequalities, however, are also persistent among other groups facing social exclusion, for example immigrants, ethnic minorities and the disabled. This means that there are differences in the causes, extent, and form of social exclusion experienced by women and men. The paper, introduced by an overview of primary gender gaps, focuses on specific issues in the three policy areas where the promotion of gender equality would be particularly important: social inclusion, pensions, health and long-term care. Special attention is devoted to empowerment policies, integrating several welfare domains and distinctive approaches. |
| Keywords: | Gender Inequality, Social Inclusion, Pensions, Health and Long-term Care |
| JEL: | I32 I38 J16 |
| Date: | 2010–03 |
| URL: | http://d.repec.org/n?u=RePEc:dul:wpaper:10-04rs&r=eur |
| By: | Christian Schröder (EUropäisches Institut für Internationale Wirtschaftsbeziehungen (EIIW)) |
| Abstract: | This paper highlights the role of financial development in producing innovative products and services. Venture Capitalists (VCs) seem to play a crucial role in achieving product and service innovation. Young entrepreneurs particularly face the problem of financial constraints if starting their business, and risk capital could be their sole solution. However, the level of early-stage venture capital (VC) investments across European countries differ profoundly. I employ a panel analysis to illustrate whether technical and innovative opportunities as well as entrepreneurial environment influence early-stage venture capital investments. In addition, I emphasize the role of the financial system in attracting early stage VC. The empirical analysis was conducted in 15 European countries and looked at the period from 1995 to 2005. The results show that technical and innovation opportunities as well as entrepreneurial environment influence the level of early-stage risk capital. Taking the financial system also into account, the analysis revealed that a bank-based system has a negative impact on the relative amount of early stage VC investments, as a market-based system attracts risk capital for young entrepreneurs. Assumedly, venture capital and debt provided by banks are found not to be complements but rather substitutes. |
| Keywords: | Early Stage Venture Capital, Risk Capital, Financial System, Financing Innovations |
| JEL: | G23 |
| Date: | 2009–10 |
| URL: | http://d.repec.org/n?u=RePEc:bwu:eiiwdp:disbei167&r=eur |
| By: | Carlos Martí Sempere |
| Abstract: | The security industry can be defined, in the first instance, as the industry that produces the goods and services required to protect citizens from insecurity. Yet, this industry, as opposed to defence, has not been an area of intense research. Their boundaries are unclear and the industry is not well characterised. This paper analyses this knowledge gap and presents some ideas for a research agenda for this industry that could assist in unveiling the main features, the potential weaknesses and strengths, and the capability to solve the security needs of society in an efficient and effective way. The paper discusses a definition of this economic sector useful in setting its boundaries, and it briefly describes the main types of industries operating within the sector. It analyses methods for gathering information regarding the industry, customers, and other market agents. Finally, it outlines ways for assessing market performance in terms of the structure-conduct-performance paradigm. |
| Keywords: | security industry, security market, terrorism and organised crime countermeasures, competition, market performance |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diweos:diweos29&r=eur |
| By: | Matsaganis, Manos; Benedek, Dóra; Flevotomou, Maria; Lelkes, Orsolya; Mantovani, Daniela; Nienadowska, Sylwia |
| Abstract: | Even though tax evasion has been the focus of a growing volume of research in recent years, the issue of its distributional impact is still relatively neglected. This paper is an attempt to analyse empirically the implications of tax evasion in terms of inequality, poverty, redistribution and progressivity of the income tax system in Greece, Hungary and Italy (three countries featuring an extensive informal economy). The paper applies the discrepancy method, i.e. compares two sets of data, household budget surveys and income tax returns, to derive ratios of under-reporting by income source and geographical area. The tax-benefit model EUROMOD is used to estimate the distributional impact of tax evasion comparing household disposable incomes to a full compliance counterfactual. |
| Keywords: | tax evasion; inequality; microsimulation |
| JEL: | H23 H26 |
| Date: | 2010–02–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:21465&r=eur |
| By: | Esther Mot |
| Abstract: | This document describes the Dutch system of long-term care (LTC) for the elderly. An overview of LTC policy is also given. This document is part of the first stage of the European project ANCIEN (Assessing Needs of Care in European Nations), commissioned by the European Commission under the Seventh Framework Programme (FP7). Since the first stage of the project aims to facilitate structured comparisons of the organisation of LTC for the elderly in different countries, comparable reports have been written for most other European countries (including new member states). Future analyses in subsequent work packages within the project will build on these country reports. |
| Keywords: | long-term care; elderly; institutions; healthcare |
| JEL: | H51 I18 |
| Date: | 2010–03 |
| URL: | http://d.repec.org/n?u=RePEc:cpb:docmnt:204&r=eur |
| By: | Alex Bryson; Frick, B. and Simmons, R. |
| Abstract: | We investigate the salary returns to the ability to play football with both feet. The majority of footballers are predominantly right footed. Using two data sets, a cross-section of footballers in the five main European leagues and a panel of players in the German Bundesliga, we find robust evidence of a substantial salary premium for two-footed ability, even after controlling for available player performance measures. We assess how this premium varies across the salary distribution and by player position. |
| Date: | 2009–09 |
| URL: | http://d.repec.org/n?u=RePEc:nsr:niesrd:339&r=eur |
| By: | Heinicke, Katrin; Thomsen, Stephan L. |
| Abstract: | This paper describes the Social Long-Term Care Insurance (SLTCI) in Germany. Based on a short review of the history of long-term care organization and the preceding laws in Germany, the implementation of the SLTCI as a self-standing pillar within the system of social insurances in Germany and its set-up with regard to eligibility criteria, service provision and financial budget are presented. Since SLTCI is a universal, contribution-financed insurance the ageing society and the corresponding shifts in the number of persons in need of care and the number of persons potentially providing informal care are challenges for its sustainability. Therefore, recently suggested reform options are discussed at the end of the paper showing potential pathways to a sufficient provision of care services in the future. -- |
| Keywords: | Social Long-term Care Insurance,Germany,Financial Situation,Sustainability,Reform Options |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:10012&r=eur |
| By: | Annika Meng |
| Abstract: | This paper analyzes the relationship between long-term care provision and the average individual wage rate. In addition, the eff ects of the number of hours spent on caregiving on the probability of employment as well as on the number of hours worked are examined. Data from the Survey of Health, Ageing and Retirement (SHARE) of 2004 and 2006 is used to analyze caregiving eff ects on the European labor market. Descriptive statistics show a positive correlation between hours of care and the wage rate for those working. In the regression analysis, sample-selection models combined with instrumental-variable estimation are used to estimate the causal eff ects of hours of care on wages. The results illustrate that care for parents has a large negative impact on the individual’s wage rate. Test results show that controlling for sample selection is reasonable. Finally, the probability of employment is only decreased in the female sample. Although the hours worked are not signicantly affected. |
| Keywords: | Informal care; labor-market outcomes; sample selection |
| JEL: | J11 J22 C01 |
| Date: | 2010–02 |
| URL: | http://d.repec.org/n?u=RePEc:rwi:repape:0168&r=eur |
| By: | Giacomo Corneo; Matthias Keese; Carsten Schröder |
| Abstract: | Since 2002 the German government seeks to stimulate private retirement savings by means of special allowances and tax exemptions – the so-called Riester scheme. We apply matching and panel regression techniques to assess the impact of the Riester scheme on households’ propensities to save in a natural experiment framework. Estimation results from both the German Socio-Economic Panel and the SAVE study indicate that private saving was hardly aff ected by the introduction of the Riester scheme. |
| Keywords: | Household saving; saving incentives; retirement; Riester scheme; coarsened exact matching |
| JEL: | D12 D14 H24 H31 I38 |
| Date: | 2010–02 |
| URL: | http://d.repec.org/n?u=RePEc:rwi:repape:0170&r=eur |