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on Microeconomic European Issues |
| By: | Marin, Dalia; Rousová, Linda |
| Abstract: | Recent literature on international trade has established that the most productive firms become multinationals. But our data reveal a startling variation in productivity levels of foreign affiliates across the countries in Eastern Europe of the same European multinational parent firms suggesting that not all multinationals transplant their home productivity advantage to the new EU Member States and Emerging Europe. One candidate for this startling difference in productivity levels among foreign affiliates is the ability of European multinationals to transport their business model abroad. This paper examines the conditions under which European multinationals give autonomy to their subsidiaries and delegate authority to them. We also analyse the conditions under which European multinationals transplant their business model to Eastern Europe. We collect original and unique matched parent and affiliate data on the internal organization of 660 German and Austrian parent firms and 2200 of their subsidiaries in Eastern Europe including the former Soviet Union. We test the hypothesis that the ability of European multinationals to transplant their business model to foreign affiliates is determined by the organization of European multinationals on the one hand and the market environment their affiliate firms face in Eastern Europe on the other hand. We show that the business culture of parent firms accounts for about 50 percent of the variation of the organization of subsidiaries, while the market environment of subsidiaries contributes the rest. |
| Keywords: | level of decentralisation; multinational firms with endogenous organisation; organisational transfer across countries; trust |
| JEL: | D21 F23 L22 O1 |
| Date: | 2012–03 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:8881&r=eur |
| By: | Adamou, Adamos; Clerides, Sofronis; Zachariadis, Theodoros |
| Abstract: | Vehicle taxation based on CO2 emissions is increasingly being adopted worldwide in order to shift consumer purchases to low-carbon cars, yet little is known about the effectiveness and overall economic impact of these schemes. We focus on feebate schemes, which impose a fee on high-carbon vehicles and give a rebate to purchasers of low-carbon automobiles. We estimate a discrete choice model of demand for automobiles in Germany and simulate the impact of alternative feebate schemes on emissions, consumer welfare, public revenues and firm profits. The analysis shows that a well-designed scheme can lead to emission reductions without reducing overall welfare. |
| Keywords: | carbon taxation; CO2 emissions; feebates; German automobile market |
| JEL: | L92 Q52 Q58 |
| Date: | 2012–01 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:8782&r=eur |
| By: | Veronica Polin (Department of Economics (University of Verona)); Michele Raitano (Sapienza University of Rome, Department of Economics and Law) |
| Abstract: | So far the dynamics of income poverty in European countries has been analysed in a comparative perspective using the ECHP dataset, the first EU-scale panel survey ran from 1994 to 2001 in the “old” 15 member states. By means of the EU-SILC longitudinal data, the main purpose of this paper is to up-to-date such kind of analysis up to 2007 and to extend it including also the “new” EU member states. Being the time span covered by EU-SILC too short for carrying out survival analysis on poverty duration and recurrence, in this paper we focus on income poverty mobility only, identifying and analysing which are the main determinants associated to households’ fall into or exit from poverty. Analyses are carried out grouping EU countries in the five usual geographical clusters. The results show that events related to the labour market are the most important in all clusters both because of their frequency and their relevant impact on poverty transitions Demographic events are, on the contrary, everywhere, much less relevant. |
| Keywords: | Poverty dynamics; poverty entry and exit; events related to poverty transitions; international comparisons; European countries clusters. |
| JEL: | D31 I32 |
| Date: | 2012–03 |
| URL: | http://d.repec.org/n?u=RePEc:ver:wpaper:10/2012&r=eur |
| By: | Fürsch, Michaela (Energiewirtschaftliches Institut an der Universitaet zu Koeln); Hagspiel, Simeon (Energiewirtschaftliches Institut an der Universitaet zu Koeln); Jägemann, Cosima (Energiewirtschaftliches Institut an der Universitaet zu Koeln); Nagl, Stephan (Energiewirtschaftliches Institut an der Universitaet zu Koeln); Lindenberger, Dietmar (Energiewirtschaftliches Institut an der Universitaet zu Koeln); Tröster, Eckehard (Energynautics GmbH,) |
| Abstract: | As an attempt to fi ght global warming, many countries try to reduce CO2 emissions in the power sector by significantly increasing the proportion of renewable energies (RES-E). A highly intermeshed electricity transmission grid allows the achievement of this target cost-efficiently by enabling the usage of most favorable RES-E sites and by facilitating the integration of fluctuating RES-E infeed and regional electricity demands. <p> However, construction of new lines is often proceeding very slowly in areas with a high population density. In this paper, we try to quantify the bene ts of optimal transmission grid extensions for Europe until 2050 compared to moderate extensions when ambitious RES-E and CO2 reduction targets are achieved. We iterate a large-scale dynamic investment and dispatch optimization model for Europe with a load-flow based transmission grid model, in order to determine the optimal deployment of electricity generation technologies and transmission grid extensions from a system integrated point of view. <p> Main findings of our analysis include that large transmission grid extensions are needed to achieve the European targets cost-efficiently. When the electricity network is cost-optimally extended, 228,000 km are built until 2050, representing an increase of 76% compared to today. Further findings include substantial increases of average system costs for electricity until 2050, even if RES-E are deployed efficiently throughout Europe, the grid is extended optimally, and if signi cant cost reductions of RES-E are assumed. |
| Keywords: | Renewable energy; GHG reduction; transmission grid; power system optimization |
| JEL: | C61 C63 Q40 Q58 |
| Date: | 2012–03–19 |
| URL: | http://d.repec.org/n?u=RePEc:ris:ewikln:2012_004&r=eur |
| By: | Crescenzi, Riccardo; Rodríguez-Pose, Andrés |
| Abstract: | Transport infrastructure has represented one of the cornerstones of development and cohesion strategies in the European Union (EU) and elsewhere in the world. However, despite the considerable funds devoted to it, its impact remains controversial. This paper revisits the question of to what extent transport infrastructure endowment -- proxied by regional motorways -- has contributed to regional growth in the EU between 1990 and 2004. It analyses infrastructure in relationship to other factors which may condition economic growth, such as innovation, migration, and the local ‘social filter’, taking also into account the geographical component of intervention in transport infrastructure and innovation. The results of the two-way fixed-effect (static) and GMM-diff (dynamic) panel data regressions indicate that infrastructure endowment is a relatively poor predictor of economic growth and that regional growth in the EU results from a combination of an adequate ‘social filter’, good innovation capacity, both in the region and in neighbouring areas, and a region's capacity to attract migrants. The meagre returns of infrastructure endowment on economic growth raises interesting questions about the opportunity costs of further infrastructure investments across most of Western Europe. |
| Keywords: | Economic growth; European Union; Infrastructure; Innovation; Regions; Spillovers |
| JEL: | R11 R12 R42 R58 |
| Date: | 2012–03 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:8882&r=eur |
| By: | Angelini, Viola; Brugiavini, Agar; Weber, Guglielmo |
| Abstract: | We use life history data covering households in thirteen European countries to analyse residential moves past age 50. We observe four types of moves: renting to owning, owning to renting, trading up or trading down for home-owners. We find that in the younger group (aged 50-64) trading up and purchase decisions prevail; in the older group (65+), trading down and selling are more common. Overall, moves are rare, particularly in Southern European countries. Most moves are driven by changes in household composition (divorce, widowhood, nest-leaving by children), but economic factors play a role: low income households who are house-rich and cash-poor are more likely to sell their home late in life. |
| Keywords: | housing; life-cycle |
| JEL: | D19 E21 |
| Date: | 2012–03 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:8889&r=eur |
| By: | Heindl, Peter |
| Abstract: | In this paper, transaction costs in the EU emissions trading scheme (EU ETS) are examined empirically based on survey data from German companies. Transaction costs from measurement, reporting and verification (MRV) of emissions, permit trading and general informational costs are considered. Transaction costs from MRV and permit trading are of non-linear form and dependent on annual emission and trading volumes based on OLS and nonparametric estimation. As a consequence of non-linear transaction costs, welfare losses occur compared to a first-best setup under zero transaction costs. In practice, smaller emitters will emit less (abate more) compared to larger emitters and vice versa due to economies of scale in the management of emissions trading. The results further imply that optimal firm size might be influenced by transaction costs in the EU ETS because of relatively high average transaction costs amongst smaller emitters. Overall annual transaction costs in the EU ETS in Germany are estimated to be EUR 8.7 million. -- |
| Keywords: | Emissions Trading,Transaction Costs,EU ETS |
| JEL: | Q52 H23 D23 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:12021&r=eur |
| By: | Christophe CARRINCAZEAUX (GREThA, CNRS, UMR 5113); Frédéric GASCHET (GREThA, CNRS, UMR 5113) |
| Abstract: | This article aims at assessing the diversity of regional innovation systems and their economic performances within Europe. We propose to adapt the Social Systems of Innovation and Production (SSIP) framework developed by Amable, Barré and Boyer (1997) at the regional level by identifying specific arrangements of each part of the innovation and production system. A key feature of this approach is the concept of complementary institutions, allowing a limited number of viable and stable configurations to be identified. Three key features of European regions are investigated using this framework: the diversity of regional SSIPs, the interplay of regional and national determinants of such systems, and the impact of SSIPs on regional performance. We identify a typology of regional configurations resulting from the combination of scientific, technological, educational and industrial indicators, using multivariate data analysis. We then test the existence of specific regional growth regimes. The results highlight a persistently high level of diversity of regional configurations, notably among knowledge intensive regions, but also show that national institutional settings remain of fundamental importance in shaping a number of regional configurations. A final conclusion relates to the weak correlation observed between the structural characteristics of regions and their performances over the 2003-2007 period: regional performance remains primarily shaped by national trends. Overall, the paper questions the regional dimension of these “systems”. |
| Keywords: | Regional innovation systems, knowledge, regional growth, institutions |
| JEL: | R11 O43 O18 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:grt:wpegrt:2012-06&r=eur |
| By: | Sebastian G. Kessing; Chiara Strozzi |
| Abstract: | We analyze the optimal regional pattern of public employment in an information constrained second-best redistribution policy showing that regionally differentiated public employment can serve as an expenditure side tagging device, bypassing or relaxing the equity-effciency trade-off. The optimal pattern exhibits higher levels of public employment in low productivity regions and is more pronounced the higher is the degree of regional inequality within the country. Empirically, using a panel of European regions from 1995-2007, we found evidence that public employment is systematically higher in low productivity regions. The latter effect is stronger in countries with higher levels of regional inequality. |
| Keywords: | Public employment, redistribution, regional inequality, European regions |
| JEL: | H11 J45 R12 |
| Date: | 2012–03 |
| URL: | http://d.repec.org/n?u=RePEc:mod:recent:079&r=eur |
| By: | Jonathan Bradshaw; Leonardo Menchini; Yekaterina Chzhen; Gill Main; Bruno Martorano; Chris De Neubourg; UNICEF Innocenti Research Centre |
| Abstract: | The paper focuses on child deprivation inchild well Europe and studies the degree to which it is experienced by children in 29 countries using a child specific deprivation scale. The paper discusses the construction of a child deprivation scale and estimates a European Child Deprivation Index for the 29 countries using 14 specific child related variables made available by the child module of the EU-SILC 2009 survey. The 29 countries are ranked according to the degree of child deprivation: the results show considerable differences between the countries. The (non-)overlap between child deprivation and child monetary poverty is considerable but limited. In general the results indicate where policy interventions can produce improvements. |
| Keywords: | child well-being; household surveys; income; poverty; |
| JEL: | D1 H0 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ucf:inwopa:inwopa657&r=eur |
| By: | Mina Baliamoune-Lutz (Department of Economics, University of North Florida); Pierre Garello (CERGAM-CAE, Aix-Marseille Université) |
| Abstract: | Using macro-level panel data, we examine the effects of taxation and tax progressivity on entrepreneurship in a large group of European countries. We address two main objectives. First, we try to explore whether tax increases discourage entrepreneurial activity, distinguishing between the effects on existing self-employment and new self-employment (nascent entrepreneurship). Second, we investigate the impact of tax progressivity on entrepreneurship, focusing in particular on the impact on new self-employment. We find that tax progressivity at higher-than-average incomes has a robust negative effect on nascent entrepreneurship. We discuss on the policy implications of our results. |
| Date: | 2011–07 |
| URL: | http://d.repec.org/n?u=RePEc:cgm:wpaper:94&r=eur |
| By: | Ernest Reig (Dept. of Applied Economics II, University of Valencia) |
| Abstract: | This paper calculates a human Wellbeing Composite Index (WCI) for 42 countries, belonging to the European Economic Space, North Africa and the Middle East, as an alternative to the shortcomings of other well-known measures of socio-economic development (i.e. Gross Domestic Product per head and Human Development Index, HDI). To attain this goal, different Data Envelopment Analysis (DEA) models are used as an aggregation tool for seven selected socio-economic variables which correspond to the following wellbeing dimensions: income per capita, environmental burden of disease, income inequality, gender gap, education, life expectancy at birth and government effectiveness. The use of DEA allows avoiding the subjectivity that would be involved in the exogenous determination of weights for the variables included in WCI. The aim is to establish a complete ranking of all countries in the sample, using a three-step process, with the last step consisting in the use of a model that combines DEA and compromise programming, and permits to obtain a set of common weights for all countries in the analysis. The results highlight the distance that still separates Southern Mediterranean countries from the benchmark levels established by some European countries, and also point to the main weaknesses in individual countriesÕ performance. Nordic countries, plus Switzerland, top the list of best performers, while Mauritania, Libya and Syria appear at the bottom. |
| Keywords: | Wellbeing Composite Index (WCI), Human Development, Data Envelopment Analysis (DEA), Compromise Programming, European and Southern Mediterranean Countries |
| Date: | 2012–03 |
| URL: | http://d.repec.org/n?u=RePEc:eec:wpaper:1203&r=eur |
| By: | Paul Ryan (University of Cambridge); Uschi Backes-Gellner (Department of Business Administration, University of Zurich); Silvia Teuber (Department of Business Administration, University of Zurich); Karin Wagner (Hochschule für Technik und Wirtschaft Berlin) |
| Abstract: | Although trainee pay is central to the economics of work-based training, institutionalists have paid it little attention, while economists typically assume that it is set by market clearing. We document large differences in the pay of metalworking apprentices in three countries: relative to the pay of skilled employees, it is high in Britain, middling in Germany, and low in Switzerland. Combining fieldwork evidence with national survey data, we associate apprentice pay with both institutional attributes and market forces: specifically, with trade union presence and goals, employer organisation, the contractual status of apprentices, the supply of eligible and interested young people, and public subsidies. Apprentice pay appears to have fallen in Britain and Germany as bargaining coverage has declined. |
| Keywords: | Apprenticeship training, pay structure, trade unions, employers’ associations, collective bargaining, training contracts, young workers, public subsidy |
| JEL: | J24 J31 J41 J42 J51 |
| Date: | 2012–03 |
| URL: | http://d.repec.org/n?u=RePEc:iso:educat:0075&r=eur |
| By: | Engelmann, Sabine |
| Abstract: | "This paper examines the joint impact of international trade and technical change on U.K. wages across different skill groups. International trade is measured as changes in product prices and technical change as total factor productivity (TFP) growth. We take account of a multi-sector and multi-factor of production economy and use mandated wage methodology to offer a close theoretical-empirical relationship. We use data of the EU KLEMS database and analyse the impact of both, product price changes and TFP changes of 11 U.K. manufacturing sectors on factor rewards of high-, medium- and low-skilled workers. Results show that real wages of skill groups are driven by the sector bias of price change and TFP growth of selected sectors of production. Furthermore, for each year 1970-2005 we estimate the share of the three different skill groups on added value which indicate structural change in the U.K. economy. Empirical results show a structural change in the U.K. economy by the declined share of low-skilled workers and the increased share of medium-skilled and high-skilled workers over the years." (Author's abstract, IAB-Doku) ((en)) |
| JEL: | F11 F16 J31 |
| Date: | 2012–03–20 |
| URL: | http://d.repec.org/n?u=RePEc:iab:iabdpa:201208&r=eur |
| By: | Claudia Curi (Banque Centrale du Luxembourg); Cinzia Daraio (Dipartimento di Informatica e Sistemistica "Antonio Ruberti" Sapienza, Universita' di Roma); Maria Patrick Llerena (University of Strasbourg, BETA (Bureau d'Economie Théorique et Appliquée)) |
| Abstract: | This paper presents the first assessment of the efficiency of the technology transfer operated by the French university system and its main determinants. The analysis is based on a detailed and original database of 51 TTOs, categorized by type of university they belong to, over the period 2003-2007. Overall, we find a low level of efficiency and both intra-category and inter-categories efficiency variation. The analysis of determinants showed that French TTOs efficiency depends extensively on the nature of the category (with universities specialised in science and engineering being the most efficient ones), on institutional and environmental characteristics. We found that both the seniority of TTO and size of the university have a positive effect. In terms of environmental variables, the intensity of R&D activity (both private and public) has a positive impact; however, in terms of growth rate, only the Private R&D activity seems to be the main driver. Lastly, we find that the presence of a university-related hospital is detrimental for the efficiency. An extended discussion of the results within the existing literature is also offered. |
| Keywords: | Technology Transfer Offices (TTOs), French University System, Technical Efficiency, DEA, Bootstrap, Regional Growth |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:aeg:wpaper:2012-2&r=eur |
| By: | Martin Ljunge (Department of Economics) |
| Abstract: | This paper estimates the intergeneration transmission of civicness by studying second generation immigrants in 29 European countries with ancestry in 83 nations. There is significant transmission of civicness both on the mother’s and the father’s side. The estimates are quantitatively significant and provide evidence on the transmission of trustworthiness. |
| Keywords: | intergenerational transmission; civicness; civic virtues; trustworthiness; cultural transmission; integration of immigrants |
| JEL: | D13 D83 J62 Z13 |
| Date: | 2012–01–09 |
| URL: | http://d.repec.org/n?u=RePEc:kud:kuiedp:1133&r=eur |
| By: | Daniel Guinea Martin; Ricardo Mora; Javier Ruiz Castillo |
| Abstract: | In this paper we study occupational segregation by gender and ethnic group in England and Wales using data from the 2001 Census. We assess in an integrated framework the relative importance of each source of segregation and whether they combine into a double disadvantage effect or are independent processes. The analysis exploits the decomposability properties of the Mutual Information segregation index. These same properties allow measuring the effect on segregation of the distinctions between (i) Manual vs. Non-manual occupations; (ii) Full- vs. Part-time jobs, and (iii) human capital categories. Finally, we extend the usual notion of occupational segregation among the employed population to include the segregation of the entire non-student population of working age due to differences in the distribution of demographic groups over labor market participation categories. Among the main conclusions, the following three are emphasized. (1) The role of gender is much greater than the role of ethnic group in accounting for occupational segregation, and both constitute independent processes. (2) All the distinctions mentioned above with the exception of human capital have a substantial effect on segregation by gender. However, the Manual vs. Non-manual and the Fullvs. Part-time distinctions have a negligible effect on segregation by ethnic group. (3) The segregation induced by labor market participation decisions in England and Wales is about 20 per cent greater than the usual occupational segregation |
| Keywords: | Segregation, Ethnic and gender, Labor market, Occupations, Great Britain |
| Date: | 2011–11 |
| URL: | http://d.repec.org/n?u=RePEc:cte:werepe:we1140&r=eur |
| By: | Valerio STERZI (GREThA, CNRS, UMR 5113 & KITES, Bocconi University) |
| Abstract: | This paper deals with an issue which is particularly relevant in the literature on IPR and university-industry knowledge transfer: is the ownership structure of academic inventions relevant for patent quality and the efficiency of the knowledge transfer process? This question is also particularly significant in Europe where some countries have followed the Bayh-Dole Act example in the USA to increase the involvement level of universities in IP management. The paper uses a novel dataset of academic inventors in the UK, which includes university patents (i.e. patents owned by universities) and corporate patents (i.e. patents signed by academic scientists but owned by private companies) in the period 1990-2001. The UK is an interesting case to study due to the tradition of university involvement in IP management as it was one of the first countries to implement the university ownership model. The main results may be summarised as follows.\r\n(1) Controlling for observable patent and scientist characteristics, corporate patents received more citations than university patents in the first three years after filing, but (2) this difference is less significant when considering a longer time window. However, (3) there is no knowledge fertilisation across public (university) and private institutions: university patents mainly cite other university patents and the same reasoning applies to corporate patents. Moreover (4) knowledge flows from university patents are even more geographically localised than those from corporate patents. Finally, (5) among scientists’ characteristics, a professor’s scientific quality and his patenting experience seem to be correlated with patent value. From a policy prospective, the results in points (1), (2) and (3) cast some doubts on the role of university ownership as an instrument to foster and facilitate knowledge transfer between academia and industry and raise serious questions about the effect of policies towards increasing the role of technology transfer offices in managing academic patents. |
| Keywords: | Academic patents; Technology transfer; Patent value; Citations |
| JEL: | L33 O33 O34 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:grt:wpegrt:2012-07&r=eur |
| By: | S Bradley; Jim Taylor |
| Abstract: | This paper investigates the extent to which exam performance at the end of compulsory education has been affected by three major education reforms: the introduction of a quasi-market following the Education Reform Act (1988); the specialist schools initiative introduced in 1994; and the Excellence in Cities programme introduced in 1999. We use data for all state-funded secondary schools in England over the period 1992-2006. The empirical analysis, which is based on the application of panel data methods, indicates that the government and its agencies have substantially overestimated the benefits flowing from these three major reforms. Only about one-third of the improvement in GCSE exam scores during 1992-2006 is directly attributable to the combined effect of the education reforms. The distributional consequences of the policy, however, are estimated to have been favourable, with the greatest gains being achieved by schools with the highest proportion of pupils from poor families. But there is evidence that resources have not been allocated efficiently. |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:lan:wpaper:974&r=eur |
| By: | Adrian Pop (LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - Université de Nantes : EA4272); Diana Pop (GRANEM - Department of Law, Economics, and Management - Université d'Angers) |
| Abstract: | The philosophy behind the debt market discipline approach to banking regulation presumes that the pricing of bank debt securities, if accurate, conveys reliable signals to supervisors. In this paper, we take a critical look at the feasibility of such an approach by exploring empirically the possibility that markets may price differently the risk profile of bank issuers along the empirical distribution of credit spread. The paper proposes a quantile regression framework to draw novel inferences about the functioning of market discipline and the quality of private monitoring in European banking and provides a more comprehensive picture of the distribution of spreads conditional on its main explanatory factors. We find that the spread-risk relationship is systematically steeper and more significant at the "right-tail" of the conditional distribution of credit spread, which suggests that the market is somewhat tougher with "high-risk" banks. |
| Keywords: | Banking regulation and supervision; Market discipline; Subordinated debt; Private monitoring; Credit spreads; Quantile regression |
| Date: | 2012–03–14 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-00678943&r=eur |