nep-eur New Economics Papers
on Microeconomic European Issues
Issue of 2010‒06‒11
fourteen papers chosen by
Giuseppe Marotta
University of Modena and Reggio Emilia

  1. Trends in economic research: An international perspective By Ana Rute Cardoso; Paulo Guimarães; Klaus F. Zimmermann
  2. Flexicurity analysis of youngsters in Europe: the role of “capabilities” and human capital By Emanuela Ghignoni; Gabriella Pappadà
  3. EU Banks Rating Assignments: Is there Heterogeneity between New and Old Member Countries? By Guglielmo Maria Caporale; Roman Matousek; Chris Stewart
  4. New Trends in Technology Management Education: A View from Europe By B. CLARYSSE; S. MOSEY; I. LAMBRECHT;
  5. Transition in Southeast Europe: Understanding Economic Development and Institutional Change By Uvalic, Milica
  6. Tourism and Growth in European Countries: An Application of Likelihood-Based Panel Cointegration By Felipa de Mello-Sampayo; Sofia de Sousa-Vale
  7. Determinants of Portuguese Exports to Spain: An analysis at the enterprise level By Joana C. Lima; Horácio C. Faustino
  8. The fiscal anatomy of a regulatory polity: Tax policy and multilevel governance in the EU By Genschel, Philipp; Jachtenfuchs, Markus
  9. Trading activity and Overconfidence: First Evidence from a large European Database By Shaneera Boolell-Gunesh; Maxime Merli
  10. Rural development policies at regional level in the enlarged EU. The impact on farm structures By Francesco Pecci; Elisa Montresor; Nicola Pontarollo
  11. Crime and Immigration: Evidence from Large Immigrant Waves By Brian Bell; Stephen Machin; Francesco Fasani
  12. Innovation and job creation in a dual labor market: Evidence from Spain By Stucchi, Rodolfo; Giuliodori, David
  13. Regional efficiency of knowledge economy in the new EU countries: The Romanian and Bulgarian case By Roman, Monica
  14. Local employment policies in the context of the economic crisis:Influences of the European Community structural instruments By Matei, Lucica; Matei, Ani

  1. By: Ana Rute Cardoso; Paulo Guimarães; Klaus F. Zimmermann
    Abstract: Given the recent efforts in several countries to reorganize the research institutional setting to improve research productivity, our analysis addresses the following questions: To which extent has the recent awareness over international quality standards in economics around the world been reflected in research performance? How have individual countries fared? Do research quantity and quality indicators tell us the same story? We concentrate on trends taking place since the beginning of the 1990s and rely on a very comprehensive database of scientific journals, to provide a cross-country comparison of the evolution of research in economics. Our findings indicate that Europe is catching-up with the US but, in terms of influential research, the US maintains a dominant position. The main continental European countries, Germany, France, Italy and Spain, experienced some of the largest growth rates in economic scientific output. Other European countries, namely the UK, Norway, the Netherlands, Denmark, and Sweden, have shown remarkable progress in per capita output. Collaborative research seems to be a key factor explaining the relative success of some European countries, in particular when it comes to publishing in top journals, attained predominantly through international collaborations.
    Keywords: research performance; publications; rankings; Europe; North-America; US
    JEL: A10 I20
    Date: 2010–06–02
  2. By: Emanuela Ghignoni; Gabriella Pappadà
    Abstract: The paper presents some significant results of the YOUTH project (Young in Occupations and Unemployment: THinking of their better integration in the labour market), promoted by the European Commission – DG Employment. The paper assumes that flexicurity is very important for young workers, because they are (as new entrants in the labour market and as workers with peculiar qualitative structural characteristics) particularly exposed to risks of unemployment, “atypical” employment and precariousness trap. In this framework, we perform a principal component and a cluster analyses to classify the EU Member States in accordance with the degree of achievement of flexicurity for young people. The analysis use a set of indicators wider than that identified in the four flexicurity pillars proposed by the EC and includes flexibility and security components more targeted to young people needs. In particular, we use further human capital indicators and some measures of combination security and young people autonomy, that we propose as indicators of individuals’ “real opportunities”, strictly tied to the concept of “capabilities”.
    Keywords: youth employment, labour economic policies, flexicurity,
    JEL: J08 J21 J24
    Date: 2009–09
  3. By: Guglielmo Maria Caporale; Roman Matousek; Chris Stewart
    Abstract: We model EU countries' bank ratings using financial variables and allowing for intercept and slope heterogeneity. Our aim is to assess whether "old" and "new" EU countries are rated differently and to determine whether "new" ones are assigned lower ratings, ceteris paribus, than "old" ones. We find that country-specific factors (in the form of heterogeneous intercepts) are a crucial determinant of ratings. Whilst "new" EU countries typically have lower ratings than "old" ones, after controlling for financial variables we also discover that all countries have significantly different intercepts, confirming our prior belief. This intercept heterogeneity suggests that each country's rating is assigned uniquely, after controlling for differences in financial factors, which may reflect differences in country risk and the legal and regulatory framework that banks face (such as foreclosure laws). In addition, we find that ratings may respond differently to the liquidity and operating expenses to operating income variables across countries. Typically ratings are more responsive to the former and less sensitive to the latter for "new" EU countries compared with "old" EU countries.
    Keywords: EU countries, banks, ratings, ordered probit models, index of indicator variable
    JEL: C25 C51 C52 G21
    Date: 2010
    Abstract: In the nineties, postgraduate technology management education was mainly concentrated upon structuring the product development cycle and positioning technology strategy within the overall strategy of the company. Today it encompasses a much wider range of capabilities to address contemporary challenges such as globalization, open innovation, and the need for corporate renewal and venturing. To gain insight into the implications of this change, we conducted a number of exploratory interviews with leaders from both the demand and supply sides in Europe based in higher education institutes, the corporate sector, and public institutes. Our interviews highlight a dynamic field moving from traditional MBA-focused programs toward more entrepreneurial “boot camps,” from a case study-oriented teaching style toward a mentoring approach, and from an emphasis upon general business toward working across disciplines yet being sensitive to underlying technologies. We found important implications for technology management education with respect to its location within universities and identified opportunities for business schools to provide technology entrepreneurship and commercialization skills.
    Date: 2010–03
  5. By: Uvalic, Milica
    Abstract: The paper analyses the 20-year experience with transition in the SEE countries in a comparative framework, illustrating how these countries encountered difficulties in its implementation, despite having some of the best starting conditions in 1989 to impl
    Keywords: economic transition, Southeast Europe, economic development, institutional
    Date: 2010
  6. By: Felipa de Mello-Sampayo (ISCTE - Lisbon University Institute - Department of Economics and UNIDE-ERC); Sofia de Sousa-Vale (ISCTE - Lisbon University Institute - Department of Economics and UNIDE-ERC)
    Abstract: The tourism and economic growth relationship is investigated for a panel of European countries over the period 1988–2010. The results reveal that the variables contain a panel unit root and they cointegrate in a panel perspective. The findings show that tourism enhance economic growth for some countries in the sample.
    Keywords: Tourism, Economic growth, Rank tests, Panel unit root tests, Panel cointegration
    JEL: F43 C33 L83
    Date: 2010–05
  7. By: Joana C. Lima; Horácio C. Faustino
    Abstract: This study examines the evolution of Portuguese exports to Spain and its determinants in the period 2004-2008, based on a sample of the 97 largest exporters to Spain. The study uses various economic and financial indicators to characterize these companies and comparison is made between the sample’s five largest companies and five of the small and medium enterprises (SMEs). The analysis highlights the geographic concentration of companies in the districts of Porto and Aveiro and the better performance of large enterprises in terms of productivity, return on equity and average salary compared to SMEs. The econometric study, using panel data, considers as theoretically relevant explanatory variables the gross added value, net income, equity, the size of the company, the remuneration and expenditure on research and development (R&D). The results of the estimated model confirm the positive influence of these variables on the variation of exports, although the expenditure on R&D proved to be statistically insignificant.
    Keywords: enterprises, exports, panel data, economic and financial indicators, Portugal, Spain.
    Date: 2010–04
  8. By: Genschel, Philipp; Jachtenfuchs, Markus
    Abstract: The paper analyzes the common assumption that the EU has little power over taxation. We find that the EU's own taxing power is indeed narrowly circumscribed: its revenues have evolved from rather supranational beginnings in the 1950s towards an increasingly intergovernmental system. Based on a comprehensive analysis of EU tax legislation and ECJ tax jurisprudence from 1958 to 2007, we show that at the same time, the EU exerts considerable regulatory control over the member states' taxing power and imposes tighter constraints on member state taxes than the US federal government imposes on state taxation. These findings contradict the standard account of the EU as a regulatory polity which specializes in apolitical issues of market creation and leaves political issues to the member states: despite strong safeguards, the EU massively regulates the highly salient issue of member state taxation. --
    Date: 2010
  9. By: Shaneera Boolell-Gunesh (LaRGE Research Center, Université de Strasbourg); Maxime Merli (LaRGE Research Center, Université de Strasbourg)
    Abstract: We investigate the presence of overconfidence for 43 958 individual investors using a large brokerage account database between 1999 and 2006. We employ three methodologies to gauge overconfidence and our main results show that independently of the methodology considered, individual investors are subject to overconfidence and consequently trade too frequently. Securities investors are buying are systematically underperforming those they are selling on follow-up periods; investors are clearly not making profitable trades.
    JEL: G10
    Date: 2010
  10. By: Francesco Pecci (Department of Economics (University of Verona)); Elisa Montresor (Department of Economics (University of Verona)); Nicola Pontarollo (Department of Economics (University of Verona))
    Date: 2010–05
  11. By: Brian Bell (London School of Economics); Stephen Machin (University College London, London School of Economics); Francesco Fasani (University College London)
    Abstract: This paper examines the relationship between immigration and crime in a setting where large migration flows offer an opportunity to carefully appraise whether the populist view that immigrants cause crime is borne out by rigorous evidence. We consider possible crime effects from two large waves of immigration that recently occurred in the UK. The first of these was the late 1990s/early 2000s wave of asylum seekers, and the second the large inflow of workers from EU accession countries that took place from 2004. A simple economics of crime model, when dovetailed with facts about the relative labour market position of these migrant groups, suggests net returns to criminal activity are likely to be very different for the two waves. In fact, we show that the first wave led to a small rise in property crime, whilst the second wave had no such impact. There was no observable effect on violent crime for either wave. Nor were immigrant arrest rates different to natives. Evidence from victimization data also suggests that the changes in crime rates during the immigrant waves cannot be ascribed to crimes against immigrants. Overall, our findings suggest that focusing on the limited labour market opportunities of asylum seekers could have beneficial effects on crime rates.
    Keywords: crime, immigration.
    JEL: F22 K42
    Date: 2010–05
  12. By: Stucchi, Rodolfo; Giuliodori, David
    Abstract: This paper studies the effect of product and process innovations on the creation of jobs in the Spanish manufacturing sector over the period 1991-2005. We also use a change in the Employment Protection Legislation (EPL) in 1997 to study the effect of innovations on permanent and temporary workers before and after that change. We find that both product and process innovation created jobs in the Spanish manufacturing sector. Additionally, we find that before the change in the EPL in 1997 innovations did not affect the number of permanent workers and all the increase in employment was explained by the increase in the number of temporary workers. After the change in the labor regulations, innovations increased both the number of temporary and permanent employees. Interestingly, while the increase in temporary workers takes place after one year of the innovations, the increase in permanent workers occurs mainly two year after the innovations.
    Keywords: Product Innovation; Process Innovation; Employment; Temporary Workers.
    JEL: J21 J38 O31 L60
    Date: 2010–05–31
  13. By: Roman, Monica
    Abstract: The economic success is more and more based on upon the effective utilization of intangible assets such as knowledge, skills and innovative potential as the key resource for competitive advantage. For transition countries, such as Romania and Bulgaria, the efficiency of research and development activities is particularly important, since technological progress is one of the core aspects of economic growth. In this article we describe the common features of the two countries, but also the existing differences in respect with knowledge based economy. There are significant regional differences within the countries and marginal regions must close the gap with more developed regions. The paper analyzes research efficiency at the regional level for NUTS2 regions from Romania and Bulgaria between 2003 and 2005, applying a DEA framework. Our main finding is that Bulgarian regions are more efficient in R&D activities compared to Romanian ones. The only Romanian efficient region is Bucuresti Ilfov, while the other two efficient regions are rather small Bulgarian regions, with fewer resources. They show a remarkably high level of research efficiency, whereas some of the larger regions (both from Romania and Bulgaria) lag behind.
    Keywords: regions knowledge economy transition countries efficiency DEA
    JEL: R58 P27 R11 O31
    Date: 2010–02
  14. By: Matei, Lucica; Matei, Ani
    Abstract: For several European states, including Romania, the European integration process has overlapped with the effects of the economic and financial crisis. The consequences of such a situation are apparently contradictory. On one hand, the crisis lowers the European integration process in view of achieving the performance imposed by the Single Market, the economic and administrative convergence etc. On the other hand, the possibility of accessing the European structural funds becomes a welcome financial resource for diminishing or stopping the effects of the crisis. The second alternative establishes new balances or imbalances at the local community level, with effect on the employment policies. The European structural instruments – Structural Funds, Cohesion Fund, EC initiatives – are associated with the effects induced in view to achieve the EU objectives such as: economic, social and territorial cohesion, economic growth, competitiveness, employment, sustainable development etc. The current paper aims to emphasise in a theoretic and empiric manner, the influences of these structural instruments on the employment policies at local level. At the same time, those influences will be correlated statistically with the effects of the financial crisis, obtaining a more comprehensive image concerning the consequences of the mix of national and EC policies for the economic integration and fight against the effects of the financial crisis for some EU states. The authors propose a model of local development based on the theory of the general balance, integrating the resources provided by the structural instruments and emphasizing their compensatory effects related to the financial crisis. The proposed model is empirically exemplified for some development regions in Romania, suggestive for general conclusions, of comparative nature, at European and international level
    Keywords: local employment policies; economic crisis; structural instruments
    JEL: E24 H53 J23
    Date: 2010–04–15

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