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on Microeconomic European Issues |
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Issue of 2011‒05‒07
thirteen papers chosen by Giuseppe Marotta University of Modena and Reggio Emilia |
| By: | Anna Creti; Pierre-Andre Jouvet; Valerie Mignon |
| Abstract: | The aim of this paper is to investigate the determinants of the carbon price during the two phases of the European Union Emission Trading Scheme (EU ETS). More specifically, relying on daily EU allowance futures contracts, we test whether the carbon price drivers identified for Phase I still hold for Phase II and evolve toward a long-run relationship. Using cointegration techniques and accounting for the 2006 structural break on the carbon market, we show that while a cointegrating relationship exists for both phases of the EU ETS, the nature of this equilibrium relationship is different across the two subperiods, with an increasing role of fundamentals in Phase II. Deriving equilibrium values, we show that the carbon price tends to be undervalued since the end of 2009. |
| Keywords: | EU ETS; carbon price; energy prices; cointegration |
| JEL: | Q4 C22 |
| Date: | 2011–04 |
| URL: | http://d.repec.org/n?u=RePEc:cii:cepidt:2011-09&r=eur |
| By: | Olivia Ekert-Jaffé; Isabelle Terraz |
| Abstract: | This paper investigates the effect of unemployment on earnings for ten European countries. Using an harmonised database (ECHP), we estimate the impact of declared unemployment on individuals while taking account of attrition and unobserved individual heterogeneity. We find that the unemployment effect differs by country and gender. The wage penalty is greater for men than for women. It is also higher in the more flexible economies. We suggest that labour market institutions such as unemployment benefits and wage-setting institutions may be avenues of investigation to explain these differences. |
| Keywords: | Unemployment, Unobserved heterogeneity, post unemployment earnings. |
| JEL: | J31 J64 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ulp:sbbeta:2011-09&r=eur |
| By: | Anderson, James (Institute for labor economics, University of London and Data Centre for Work and Welfare) |
| Abstract: | The paper studies the impact of migration policy liberalization in the enlarged EU. Adopting a structural NEG approach, we attempt to asses the direction, size and dynamics of potential labor migration after the end of the 'transitional measures', which are restricting the relocation of workers. According to our simulation results, the liberalization of migration policy would induce additional 2 -3 percent of the total EU workforce to change their country of location,with most of migrant workers relocating as expected from East to the West. The average net migration rate is decreasing in the level of integration, and in portugal and the UK the immigration of workers has even reverted to emigration at higher levels of integration, suggesting that from the economic point of view no regulatory policy responses are necessary to labor mobility restrictions inposed on workers from the balkan member States and the Balkan Candidate Countries are obsolete and should be removed with respect to achieving the objectives of the Europe 2020 Growth Strategy. |
| Keywords: | Labor Migration, Romania |
| JEL: | F12 |
| Date: | 2011–04 |
| URL: | http://d.repec.org/n?u=RePEc:rjr:wpiecf:110427&r=eur |
| By: | Pavel, Ciaian; Sergio, Gomez y Paloma |
| Abstract: | The present paper provides a meta-analysis of agricultural landscape valuation studies and through the estimated benefit transfer function it projects the value of EU landscape. The analyses are based on information from more than thirty European and Non-European studies which use stated preference approach to uncover the society's willingness to pay (WTP) for landscape. Our calculations show that, the per hectare WTP in EU varies between 89 and 169 â¬/ha with an average value of 142 â¬/ha in 2009. Further the calculations indicate that the total value of EU landscape in 2009 is estimated to be in the range of â¬16.1 â 30.8 billion per year, with an average of â¬25.8 billion, representing around 7.5 percent of the total value of EU agricultural production and roughly half of the CAP expenditures. |
| Keywords: | landscape, benefit transfer, WTP, Consumer/Household Economics, Environmental Economics and Policy, Public Economics, Q51, Q41, |
| Date: | 2011–04–15 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea11:102727&r=eur |
| By: | Michalek, Jerzy; Ciaian, Pavel; Kancs, d'Artis; Gomez y Paloma, Sergio |
| Abstract: | In this paper we estimate the income distributional effects of the common agricultural policy (CAP) for farmers and landowners. First, we theoretically analyse the level of farmers' and landowners' gains from coupled and decoupled payments. Second, using a unique farm level panel data set from the FADN for the period 1995-2007 we employ the fixed effects, the Heckman selection bias and the GMM estimators to estimate income distributional effects of CAP subsidies. The results do not confirm the theoretical hypothesis that landowners benefit a large share of the CAP subsidies. According to our estimates, farmers gain between 60% to 95%, 80% to 178% and 86% to 90% of the total value of coupled crop/animal, coupled RDP and decupled payments, respectively. The CAP subsidies are only marginally capitalised in land rents. Our results suggest that rental rates are more responsive to structural variables and show a strong time dependency, suggesting the presence of rigidities in the EU rental markets, which constraint the adjustment of land rents to market signals and thus reduce landowners' gains from the CAP. |
| Keywords: | Agricultural and Food Policy, Agricultural Finance, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea11:102978&r=eur |
| By: | Iraj Hashi; Nebojsa Stojcic; Shqiponja Telhaj |
| Abstract: | This paper aims to explore the factors influencing the ability of firms to compete in globalised markets. The Austrian and evolutionary economics and the endogeneous growth literature highlight the role of innovation activities in enabling firms to compete more effectively - and expand their market share. On the basis of these theories, and using a large panel of firms from several Central and East European Countries (CEECs), this paper attempts to identify the factors and forces which determine the ability of firms to compete in conditions of transition. The competitiveness of firms, measured by their market share, is postulated to depend on indicators of firms' innovation behaviour such as improvements in cost-efficiency, labour productivity and investment in new machinery and equipment as well as characteristics of firms and their environment such as location, experience, technological intensity of their industries and the intensity of competition. To control for the dynamic nature of competitiveness and the potential endogeneity of its determinants, and to distinguish between short and long run effects of firm behaviour, a dynamic panel methodology is employed. The results indicate that the competitiveness of firms in transition economies is enhanced with improvements in their cost efficiency, productivity of labour, investment and their previous business experience while stronger competition has a negative impact on it. |
| Keywords: | competitiveness, restructuring, transition economies, market share, dynamic panel analysis |
| JEL: | O31 |
| Date: | 2011–04 |
| URL: | http://d.repec.org/n?u=RePEc:sec:cnstan:0424&r=eur |
| By: | Jean BELIN (GREThA, CNRS, UMR 5113); Jens HORBACH (University of Applied Sciences Augsburg); Vanessa OLTRA (GREThA, CNRS, UMR 5113) |
| Abstract: | Many recent papers deal with exploring and explaining the determinants of eco-innovations for different countries supporting the formulation of efficient policy measures to trigger eco-innovation activities of firms. Unfortunately, there is still a lack of cross-country analyses allowing recognizing “international” stylized facts, but also regional characteristics of eco-innovations. Based on data from the fourth Community Innovation Survey (CIS) for France and Germany, the present paper tries to contribute to fill this gap. Using econometric methods, we are able to detect remarkable similarities between the different determinants of eco-innovation in the two countries. The results confirm the central role of regulation and cost savings as motivations for eco-innovation. Furthermore, eco-innovative activities seem to require more external sources of knowledge and information than innovation in general. |
| Keywords: | Eco-Innovation, Industry, Discrete Choice Models |
| JEL: | Q55 O33 O38 C25 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:grt:wpegrt:2011-17&r=eur |
| By: | Niklas Potrafke (Department of Economics, University of Konstanz, Germany) |
| Abstract: | This paper investigates empirically how unemployment-induced employment-breaks at different career stages influence pension benefits. The analysis is based on German data. I distinguish four different career phases and investigate to what extent the prevailing social security policy compensated for earning losses. The results suggest that (1) losses in pension benefits were the greatest if unemployment occurred in the middle of a career (between 31 50); (2) social security policies have had a mitigating effect on losses in pension benefits. These findings indicate that institutions have a decided influence on how career patterns translate into pension benefits. |
| Keywords: | employment histories, career interruptions, pension benefits, social security policy, human capital depreciation, institutions |
| JEL: | J26 J24 H55 I38 |
| Date: | 2011–04–25 |
| URL: | http://d.repec.org/n?u=RePEc:knz:dpteco:1105&r=eur |
| By: | Stefania Marcassa (EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris) |
| Abstract: | This paper presents the results of an econometric analysis of the conditional probability of leaving unemployment for four waves of French married men and women entering unemployment from 1991 to 2002. The effect of spouse's hourly earnings on unemployment duration is found to be asymmetric for men and women. In particular, an elasticity of 0.38 for men and -0.15 for women are found to be significant for the entire sample. Individual data from the French Labor Force Survey are used with accurate information on spell durations, and labor earnings of the spouses. Parametric estimation techniques are used. |
| Keywords: | unemployment duration, hazard models, labor earnings, marriage, France |
| Date: | 2011–04–26 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-00588695&r=eur |
| By: | Thomas Bolli (KOF Swiss Economic Institute, ETH Zurich, Switzerland); Mehdi Farsi (CEPE, ETH Zurich, Switzerland) |
| Abstract: | This paper analyzes the labor productivity of Swiss university departments between 1995 and 2007. Using a parametric input distance function we estimate and decompose the Malmquist productivity indexes in line with Fuentes et al. (2001) and Atkinson et al. (2003). By contrast to those studies, this paper proposes a panel data specification to account for unobserved heterogeneity across production units. The adopted model is a mixed-effects model with department fixed effects as well as random coefficients for time variables. We also use an autoregressive stochastic term to model inefficiency shocks while allowing for gradual improvement of persistent inefficiencies. The results indicate a negative trend in overall productivity measured by Malmquist index, particularly after 2002, with an average productivity decline of about one percent per year. A major part of this productivity decline coincides with the recent developments in Switzerland’s higher education system following the adoption of the Bologna agreement. However, the results do not provide any evidence of statistically significant relationship between productivity and reforms. Our decomposition analysis suggests that the observed productivity decline could be contributed to technical regress but also to a rising inefficiency with a relatively high level of persistence. The results also point to various patterns across different fields. In particular, economics and business departments and law schools show the lowest performance, whereas science departments stand out as an exception with productivity improvement. |
| Keywords: | Swiss Universities, Parametric Distance Function, Heterogeneity, Malmquist Index, Decomposition, Autocorrelation |
| JEL: | C23 D24 I23 J24 |
| Date: | 2011–04 |
| URL: | http://d.repec.org/n?u=RePEc:kof:wpskof:11-278&r=eur |
| By: | Silvia R. Sedita (University of Padova); Fiorenza Belussi (University of Padova); Gianluca Fiscato (University of Milano) |
| Abstract: | The aim of the paper is to identify the internationalization models of SME industrial district firms within a very integrated and dynamic Regional Innovation System (RIS) of Italy. By doing so, we investigate which are the strategies of firms embedded in a RIS to access global suppliers and markets. Accordingly, this paper explores the role of SMEs firmsÕ dynamic capabilities, its linkage with the industry investments in ICT (information and communication technologies) and the impact of the utilization of regional knowledge intensive business services (KIBS) in shaping the degree of internationalization of local firms. The analysis is based on a survey addressed during 2004 to entrepreneurs or managers of a sample of 125 SMEs firms operating in 7 industrial districts (biomedical, ceramics, shipbuilding, footwear, textile, plastics and packaging) of the Emilia Romagna. The results coming from a structural equation model revealed factors that impact on firmsÕ degree of internationalization in the input (relocalisation of foreign purchases through global value chains) and in the output dimension (export sales). Some interesting insights on what lies beneath the internationalization of firms in a very dynamic regional innovation system like that one of Emilia Romagna are provided. |
| Keywords: | industrial districts, dynamic capabilities, ICT (information and communication technologies), internationalization; regional innovation systems. |
| JEL: | F23 O32 R58 |
| Date: | 2011–04 |
| URL: | http://d.repec.org/n?u=RePEc:pad:wpaper:0132&r=eur |
| By: | Schimke, Antje; Brenner, Thomas |
| Abstract: | This paper investigates whether the economic factors that are related to firm growth in the literature also determine the development path of firms. This means that we test which economic factors possess the ability to remain effective for a longer period of time. We examine three variables: firm size, innovation effort and export share. To this end, we use panel-data on 178 German manufacturing firms over the period from 1992 to 2007. We find that the determinants of permanent growth path are not the same as the determinants of firm growth at one point in time. -- |
| Keywords: | firm growth,firm growth paths,firm size,export,innovation effort |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:kitwps:21&r=eur |
| By: | Roine, Jesper (SITE, Stockholm School of Economics); Waldenström, Daniel (Uppsala Center for Labor Studies) |
| Abstract: | Realized capital gains are typically disregarded in the study of income inequality. We show that in the case of Sweden this severely underestimates the actual increase in inequality and, in particular, top income shares during recent decades. Using micro panel data to average incomes over longer periods and re-rank individuals according to income excluding capital gains, we show that capital gains indeed are a reoccurring addition to rather than a transitory component in top incomes. Doing the same for lower income groups, however, makes virtually no difference. We also try to find the roots of the recent surge in capital gains-driven inequality in Sweden since the 1980s. While there are no evident changes in terms of who earns these gains (high wage earners vs. top capital income earners), the primary driver instead seems to be the drastic asset price increases on the post-1980 deregulated financial markets. |
| Keywords: | Top incomes; Income inequality; Capital gains; Capital income; Sweden; Welfare state |
| JEL: | D31 |
| Date: | 2011–04–13 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:uulswp:2011_008&r=eur |