|
on Microeconomic European Issues |
|
Issue of 2011‒06‒18
eighteen papers chosen by Giuseppe Marotta University of Modena and Reggio Emilia |
| By: | Michele Raitano (University of Rome, department of public economics); Francesco Vona (Observatoire Français des Conjonctures Économiques) |
| Abstract: | This paper provides a novel glance on the relationship between family background and earnings applying a synthetic index of social mobility built on distributions of parental and offspring occupational statuses. Using the EU-SILC dataset for 8 countries, our analysis shows that country differences mainly concern residual background correlations, left after controlling for background-related intervening factors such as education and occupation. Significant residual correlations, observed in the UK and in Southern countries, mask respectively penalties to upward mobility and an insurance against downward mobility. Insignificant residual effects encompass significant penalties to both downward and upward mobility in Germany and France, a parachute for self-employed in Ireland and no patterns in Nordic countries. In quantile regressions, residual background correlations appear to increase along the earnings distribution. Even if we are not able to provide causal explanations, we suggest that in unequal countries results would hardly agree with a standard human capital explanation. |
| Keywords: | intergenerational occupational mobility, index of social mobility, economic returns to intergenerational occupational mobility, international comparison. |
| JEL: | D31 I21 J24 J31 J62 |
| Date: | 2011–03 |
| URL: | http://d.repec.org/n?u=RePEc:fce:doctra:1103&r=eur |
| By: | Manuel Frondel; Steffen Lohmann |
| Abstract: | Since September 2009, Regulation 244/2009 of the European Commission enforces the gradual phase-out of incandescent light bulbs. As of September 2012, only energyefficient lighting sources will be allowed for sale. Among these are halogen light bulbs, light-emitting diodes (LED), or compact fluorescent light bulbs? often referred to as energy-saving light bulbs. The Commission’s justification for the phase-out of conventional light bulbs maintains that a reduction in the electricity consumed will not only lead to lower energy cost for private households and industrial consumers, but at the same time lead to a decrease in greenhouse gas emissions. This article discusses possible reasons for the slow market diffusion of energy-saving light bulbs and shows that the investment in energy-efficient light bulbs does not necessarily lead to significant cost reductions. Drawing on some illustrative examples, we demonstrate that the use of cheaper incandescent bulbs instead of energy-saving light bulbs can be economically rational in cases of rather low usage times, in which the higher initial purchasing price might only pay off after very long time spans. Furthermore, due to the coexistence with the European Emissions Trading Scheme (ETS), this regulation attains no additional emission reductions beyond those achieved by the ETS alone. We thus conclude that the general ban of incandescent light bulbs is inappropriate and should be abolished by the Commission. |
| Keywords: | Energy efficiency; rebound effect |
| JEL: | D12 Q41 |
| Date: | 2011–03 |
| URL: | http://d.repec.org/n?u=RePEc:rwi:repape:0245&r=eur |
| By: | Robert Stehrer (The Vienna Institute for International Economic Studies, wiiw); Sebastian Leitner (The Vienna Institute for International Economic Studies, wiiw) |
| Abstract: | Inequality is a multidimensional phenomenon though it is often discussed along a single dimension like income. This is also the case for the various decomposition approaches of inequality indices. In this paper we study one- and multidimensional indices on inequality on data for three large Southeast European countries, Bulgaria, Romania and Serbia. We include four dimensions in our measure of multidimensional inequality: income, health, education and housing. We apply various decomposition methods to these one- and multidimensional indices. In doing so, we apply standard decomposition techniques of the mean logarithmic deviation index (I0) and decompositions based on regression analysis in conjunction with the Shapley value approach. |
| Keywords: | multidimensional inequality, inequality decomposition, Shapley value |
| JEL: | C20 D63 |
| Date: | 2011–03 |
| URL: | http://d.repec.org/n?u=RePEc:wii:wpaper:74&r=eur |
| By: | Ceren Ozgen (Department of Spatial Economics, VU University Amsterdam); Peter Nijkamp (Department of Spatial Economics, VU University Amsterdam); Jacques Poot (National Institute of Demographic and Economic Analysis (NIDEA), University of Waikato) |
| Abstract: | The concentration of people with diverse socio-cultural backgrounds in particular geographic areas may boost the creation of new ideas, knowledge spillovers, entrepreneurship, and economic growth. In this paper we measure the impact of the size, skills, and diversity of immigration on the innovativeness of host regions. For this purpose we construct a panel of data on 170 regions in Europe (NUTS 2 level) for the periods 1991-1995 and 2001-2005. Innovation outcomes are measured by means of the number of patent applications per million inhabitants. Given the geographical concentration and subsequent diffusion of innovation activity, and the spatial selectivity of immigrants’ location choices, we take account of spatial dependence and of the endogeneity of immigrant settlement in our econometric modelling. We use the location of McDonald’s restaurants as a novel instrument for immigration. The results confirm that innovation is clearly a function of regional accessibility, industrial structure, human capital, and GDP growth. In addition, patent applications are positively affected by the diversity of the immigrant community beyond a critical minimum level. An increase in the fractionalization index by 0.1 from the regional mean of 0.5 increases patent applications per million inhabitants by about 0.2 percent. Moreover, the average skill level of immigrants (proxied by global regions of origin) also affects patent applications. In contrast, an increasing share of foreigners in the population does not conclusively impact on patent applications. Therefore, a distinct composition of immigrants from different backgrounds is a more important driving force for innovation than the sheer size of the immigrant population in a certain locality. |
| Keywords: | immigration, cultural diversity, economic growth, innovation, spatial autocorrelation |
| JEL: | J61 O31 R23 |
| Date: | 2011–06 |
| URL: | http://d.repec.org/n?u=RePEc:nor:wpaper:2011008&r=eur |
| By: | Fletcher, Denise; Knol, Erik; Janicki, Marcin |
| Abstract: | The Energy2B Project is an EU funded innovation stimulating initiative that targets university students at five universities across Europe and encourages them to practice environmental entrepreneurship and turn energy innovation ideas into new business start-ups. The project is administered by a European consortium of commercial and academic co-ordinators through an online web platform. The web-platform is used to develop an energy infrastructure that connects diverse stakeholders (including industrial actors, energy bodies and field experts) through the administration of local idea challenges and energy innovation competitions at a local and European level. In this paper, we discuss how the project contributes to the practice of environmental entrepreneurship and explain the projects theoretical significance as a case of institutional entrepreneurship. We also outline the academic deliverables of the project in terms of individual case studies and a survey that measures the project’s effectiveness in accelerating the practice of environmental entrepreneurship. First results are available in the second quarter of 2011. |
| Keywords: | environmental entrepreneurship; sustainable entrepreneurship; institutional entrepreneurship |
| JEL: | I21 Q01 L26 |
| Date: | 2010–11–08 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:31361&r=eur |
| By: | Ambra Poggi; Giulia Bizzotto; Francesco Devicienti; Patrik Vesan; Claudia Villosio |
| Abstract: | This report is one of the outputs resulting from Workpackage 4, "Social and professional integration" of the WALQING project, SSH-CT-2009-244597 (www.walqing.eu). |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:cca:wplabo:107&r=eur |
| By: | Matei, Lucica; Matei, Ani |
| Abstract: | The concepts and approaches of public marketing are moreover used and quantified in the national and European public systems. Adapted, with behaviours specific to the public system, the fundamental concepts of marketing represent a component of “the new culture of public service”. The paper aims to present aspects concerning the use of the fundamental concepts of public marketing - service, market, placement -, in the European decision-making practice, respectively in the regulatory framework of the single market, in the framework of providing public goods and services in the European space. The paper emphasizes the impact of the application of infringement procedures during 1996-2010 on the market of services and satisfaction of citizens’ needs. The regulation of the single market, the practices and „rules” of organisation and functioning are favouring the achievement of the economic and social function of the services of general interest, supporting the functionality of the internal market. The contribution of this paper consists in the analysis of the European regulations, of the content of procedures for sanctioning the EU Member States concerning the market and services from the prospect of the concepts of marketing, market, services, placement, satisfaction of public needs as well as of their interpretation |
| Keywords: | public service; market; consumer; regulation; infringement procedure |
| JEL: | L32 M31 N70 |
| Date: | 2011–04–05 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:31470&r=eur |
| By: | Cecília Hornok |
| Abstract: | Timeliness has gained growing importance in international trade. This paper provides empirical evidence on the significant cost of time in trade by exploiting the quasi-experimental nature of the European Union (EU) enlargement in 2004. It applies a difference-in-difference-in-differences econometric strategy on a European industry-level database of bilateral trade barriers, where industries are differentiated according to their time sensitivity. The use of a treatment intensity indicator that captures the decline in the waiting time at borders supports the identification. Results are cross-checked on subsamples defined along transport mode choice probabilities, where intra-EU transport mode choice projections are obtained from an estimated discrete choice model on extra-EU trade. Robustness checks experiment with alternative definitions of treatment sensitivity and treatment intensity. |
| Keywords: | time cost of trade, difference-in-difference-in-differences estimation, treatment intensity, EU enlargement, transport mode choice |
| JEL: | F13 F14 F15 |
| Date: | 2011–04 |
| URL: | http://d.repec.org/n?u=RePEc:wii:wpaper:75&r=eur |
| By: | Maria Bas; Vanessa Strauss-Kahn |
| Abstract: | Why would an increase in imported inputs rise exports? We argue that importing more varieties of intermediate inputs increases firm’s productivity and thereby makes the firm able to overcome the export fixed costs. Whereas the literature evidences the positive effect of an increase in imported inputs on firms’ productivity and shows that only the most productive firms export, the link between imported intermediate inputs and export scope has not been made. This paper bridges the gap by studying the impact of imported inputs on the margins of exports. We use a firms’ level database of imports at the product (HS6) level provided by French Customs for the 1995-2005 period. Access to new varieties of inputs may increase productivity, and thereby exports, through better complementarity of inputs and transfer of technology. We test for these different mechanisms by distinguishing the origin of imports (developing vs. developed countries). We find a significant impact of higher diversification and increased number of imported inputs varieties on firm’s TFP and export scope. Both the complementarity and transfer of technology mechanisms seem to matter. |
| Keywords: | Firm heterogeneity; imported inputs; TFP; export scope; varieties; firm-level data |
| JEL: | F10 F12 |
| Date: | 2011–06 |
| URL: | http://d.repec.org/n?u=RePEc:cii:cepidt:2011-15&r=eur |
| By: | Helmut Dietl (Institute for Strategy and Business Economics, University of Zurich); Christian Jaag (Institute of Public Finance and Fiscal Law, University of St. Gallen); Markus Lang (Institute for Strategy and Business Economics, University of Zurich); Martin Lutzenberger (Lucerne University of Applied Sciences); Urs Trinkner (Institute for Strategy and Business Economics, University of Zurich) |
| Abstract: | In most member states of the European Union (EU), universal postal services provided by the incumbent operator are exempt from value added taxes (VAT) on the grounds that they are the Òpublic postal service.Ó Other postal service providers have to charge VAT at the standard rate. The paper sheds light on the main competitive impact of VAT policies while showing the consequences on overall welfare. We show that the results are very sensitive to the operatorsÕ labor policies. Consequently, VAT exemptions have a different impact in countries with different labor regulations. The comprehensive treatment of competition and welfare enables us to provide guidance on how to resolve the policy trade-off between consumer surplus, government tax revenue, and a level playing field in liberalized postal markets. |
| Keywords: | Value-added tax, indirect taxation, tax regulation, tax exemption, universal service obligation, postal sector |
| JEL: | H21 H25 L51 L87 |
| Date: | 2010–11 |
| URL: | http://d.repec.org/n?u=RePEc:iso:wpaper:0145&r=eur |
| By: | Govert E. Bijwaard (Netherlands Interdisciplinary Demographic Institute (NIDI)); Christian Schluter (DEFI, Aix-Marseille II and University of Southampton); Jackline Wahba (University of Southampton) |
| Abstract: | Using administrative panel data on the entire population of new labour immigrants to The Netherlands, we estimate the causal effects of labour dynamics on their return decisions. Specifically, the roles of unemployment and re-employment spells on immigration durations are examined. The endogeneity of labour market outcomes and the return migration decision, if ignored, confounds the causal effect. This empirical challenge is addressed using the “timing-of-events†method. We estimate the model separately for distinct immigrant groups, and find that, overall, unemployment spells shorten immigration durations, while re-employment spells delay returns for all but one group. The magnitude of the causal effect differ across groups. |
| Keywords: | temporary migration, durations, timing of event method, labour market dynamics. |
| JEL: | J61 J64 C41 |
| Date: | 2011–05 |
| URL: | http://d.repec.org/n?u=RePEc:nor:wpaper:2011007&r=eur |
| By: | Aldieri, Luigi; Vinci, Concetto Paolo |
| Abstract: | In this paper we analyse the correlation between the level of education and the number of children in Italy. We select 10,720 Italian families from the 2004-2007 European Union Statistics on Income and Living Conditions (EU-SILC) dataset. Our dependent variable is represented by the number of children ever born to each respondent. Since the number of children ever born is a count variable, Poisson regression is the suitable statistical procedure used to conduct the empirical analysis. First, we estimate the correlation between the female’s education and her number of children, and then we use also partner’s education to take into account the family dimension. Furthermore, in the context of fertility, zero observations might be due either to the choice not to have children or to impossibility to become a mother. For this reason, we adopt also a more appropriate tool, that is a Zero-Inflated Poisson regression. From the empirical results, we may observe a significant negative correlation between the level of education and the number of children. |
| Keywords: | Fertility; Human Capital; Education |
| JEL: | J13 I21 J24 |
| Date: | 2011–06–10 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:31392&r=eur |
| By: | Reinhilde Veugelers |
| Abstract: | Development and deployment of clean-energy technologies is crucial if climate targets are to be met cost-effectively. The European Union already has a plan that deals with these issues: the Strategic Energy Technology Plan, which has become central to the achievement of the EU's ambitions. In a period of constrained public finances, if governments want to leverage the necessary private innovation for clean-energy technologies, they will have to provide well-designed time-consistent policies, reducing commercial and financial risk through a combination of consistent carbon pricing, regulations and public funding, which will have to give a sizable and consistent push to early-stage clean-energy technologies, with a clear exit strategy. But first and foremost, governments should establish a sufficiently high and long-term predictable carbon price. The design of the EU emissions trading system and the distribution of carbon allowances should take into account more explicitly its power to leverage innovation. A move to a 30 percent EU emissions reduction target, which would involve a tighter emissions cap and fewer allowances being auctioned, would result would result in a higher carbon price and provide greater incentives for innovation. |
| Date: | 2011–06 |
| URL: | http://d.repec.org/n?u=RePEc:bre:polcon:561&r=eur |
| By: | F. Pancotto; F. Pericoli |
| Abstract: | A sustainable path of relative competitiveness among the EMU countries is a key factor for the survivorship of the currency union in the long run. We analyze unit labor costs in the European Union with VECM methodology to evaluate relative competitiveness of euro area countries, controlling for exchange rate on the adjustment dynamics, for the economy as a whole and for the manufacturing sector, considered as a proxy of the tradable sector. Results show a lack of convergence of member countries, which is more pronounced for the tradable sector. Persisting idiosyncratic dynamics may be driven by different bargaining policies and institutional structures of national labor markets, and by differential path of technological advance deterring convergence of long run productivity. |
| JEL: | E31 O47 C32 |
| Date: | 2011–06 |
| URL: | http://d.repec.org/n?u=RePEc:bol:bodewp:wp759&r=eur |
| By: | Albu, Lucian-Liviu |
| Abstract: | Coming from standard economic growth theory and empirical evidences, we concentrated on the convergence process as a result of structural changes in economy. We investigate the differences among countries in EU in terms of the share in total economy of main sectors. Then, based on the spatial (empirical) distribution of such shares in EU we are proposing a model to estimate a typology of the convergence process in the European area. Taking into account the existing differences among sectors in matter of productivity, there are two versions of the model: considering the share of sectors in total employment and the share of sectors in GDP respectively. Moreover, we developed several modelling schemes that could be useful to improve the strategies oriented to achieve a real convergence in EU and further in Adriatic-Balkans region. In this way, we can obtain simulations from a country or group of countries (European Union, for example) on long term and quantifying the impact of structural changes on the convergence process. Indeed, the actual global crisis seems to influence negatively the convergence process in EU. As a rule, just new adhered countries were more affected by the actual crisis. Today all forecasts are suffering by uncertainty. Thus, further efforts must be allocated to evaluate the negative impact of actual crisis on the convergence process. |
| Keywords: | structural changes; convergence; stages of economic development; spatial distribution |
| JEL: | C13 O11 O47 E27 C31 O52 |
| Date: | 2011–06–06 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:31288&r=eur |
| By: | Tabea Bucher-Koenen; Annamaria Lusardi |
| Abstract: | We examine financial literacy in Germany using data from the SAVE survey. We find that knowledge of basic financial concepts is lacking among women, the less educated, and those living in East Germany. In particular, those with low education and low income in East Germany have little financial literacy compared to their West German counterparts. Interestingly, there is no gender disparity in financial knowledge in the East. In order to investigate the nexus of causality between financial literacy and retirement planning, we develop an IV strategy by making use of regional variation in the financial knowledge of peers. We find a positive impact of financial knowledge on retirement planning. |
| JEL: | D14 D91 |
| Date: | 2011–06 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:17110&r=eur |
| By: | Brown, Mark G. |
| Abstract: | The demand for OJ in Europe, and in particular the own-price elasticity of demand, has been difficult to estimate due to lack of good data. Europe, however, is the largest OJ market in the world (USDA, Foreign Agricultural Service), and cannot be ignored in analyzing the U.S. and Florida OJ situations, given OJ is an internationally traded commodity. Thus, estimates of the impacts of factors such as own-price on Europeâs OJ demand are critical for understanding the market. The estimates in this study, although rough, provide some guidance for the magnitude of the price response in Europe, but to keep them in perspective, they are based on a relatively small number of observations and a proxy variable, suggesting that, as more and hopefully better data become available, further research on this topic are needed. |
| Keywords: | demand, orange juice, Europe, Agribusiness, |
| Date: | 2010–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:ags:fdcr10:104349&r=eur |
| By: | Sanne Hiller |
| Abstract: | The theoretical claim that ethnic networks encourage trade has found broad empirical support in the literature on migration, business networks and international trade. Ethnic networks matter for the exporting firm, as they exhibit the potential to lower fixed and variable cost of exporting. This paper provides a first attempt to identify the export-promoting effect of emigration on the firm level. Using detailed Danish firm-level data, we can parsimoniously control for export determinants other than emigration, unobserved heterogeneity at the firm level, as well as for self-selection of firms into exporting. Additionally accounting for taste similarity between Denmark and its trade partners, our findings suggest a positive effect of emigration on Danish manufacturing trade within Europe, thereby corroborating preceding studies on aggregate data. Nevertheless, as a novel insight, our analysis reveals that the only beneficiaries of emigration are small enterprises. |
| Keywords: | Emigration, Brain Drain, Small Businesses, International Trade, Firmlevel analysis |
| JEL: | F22 F16 |
| Date: | 2011–06 |
| URL: | http://d.repec.org/n?u=RePEc:wsr:wpaper:y:2011:i:070&r=eur |