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on Microeconomic European Issues |
| By: | Sebastian Petrick; Ulrich J. Wagner |
| Abstract: | We estimate the causal impact of the EU Emissions Trading Scheme on manufacturing firms using comprehensive panel data from the German production census. Semiparametric matching estimators yield robust evidence that the policy caused treated firms to abate onefifth of their CO2 emissions between 2007 and 2010 relative to non-treated firms. This reduction was achieved predominantly by improving energy efficiency and by curbing the consumption of natural gas and petroleum products, but not electricity use. We find no evidence that emissions trading lowered employment, turnover or exports of treated firms |
| Keywords: | carbon trading, EU Emissions |
| JEL: | Q56 |
| Date: | 2014–03 |
| URL: | http://d.repec.org/n?u=RePEc:kie:kieliw:1912&r=eur |
| By: | CompNet Task Force |
| Abstract: | Drawing from confidential firm-level balance sheets in 11 European countries, the paper presents a novel sectoral database of comparable productivity indicators built by members of the Competitiveness Research Network (CompNet) using a newly developed research infrastructure. Beyond aggregate information available from industry statistics of Eurostat or EU KLEMS, the paper provides information on the distribution of firms across several dimensions related to competitiveness, e.g. productivity and size. The database comprises so far 11 countries, with information for 58 sectors over the period 1995-2011. The paper documents the development of the new research infrastructure, the construction of the database, and shows some preliminary results. Among them, it shows that there is large heterogeneity in terms of firm productivity or size within narrowly defined industries in all countries. Productivity, and above all, size distribution are very skewed across countries, with a thick left-tail of low productive firms. Moreover, firms at both ends of the distribution show very different dynamics in terms of productivity and unit labour costs. Within-sector heterogeneity and productivity dispersion are positively correlated to aggregate productivity given the possibility of reallocating resources from less to more productive firms. To this extent, we show how allocative efficiency varies across countries, and more interestingly, over different periods of time. Finally, we apply the new database to illustrate the importance of productivity dispersion to explain aggregate trade results. |
| Keywords: | cross country analysis, firm-level data, competitiveness, productivity and size distribution, total factor productivity, allocative efficiency |
| JEL: | L11 L25 D24 O4 O57 |
| Date: | 2014–03 |
| URL: | http://d.repec.org/n?u=RePEc:nbb:reswpp:201403-253&r=eur |
| By: | Di Cosmo, Valeria; Hyland, Marie; Llop Llop, Maria |
| Abstract: | The Water Framework Directive (WFD) defines common objectives for water resources throughout the European Union (EU). Given this general approach to water preservation and water policy, the objective of this paper is to analyse whether common patterns of water consumption exist within Europe. In particular, our study uses two methods to reveal the reasons behind sectoral water use in all EU countries. The first method is based on an accounting indicator that calculates the water intensity of an economy as the sum of sectoral water intensities. The second method is a subsystem inputâ€output model that divides total water use into different income channels within the production system. The application uses data for the years 2005 and 2009 on water consumption in the production system of the 27 countries of the EU. From our analysis it emerges that EU countries are characterized by very different patterns of water consumption. In particular water consumption by the agriculture sector is extremely high in Central/Eastern Europe, relative to the rest of Europe. In most countries, the water used by the fuel, power and water sector is consumed to satisfy domestic final demand. However, our analysis shows that for some countries exports from this sector are an important driver of water consumption. Focusing on the agricultural sector, the decomposition analysis suggests that water usage in Mediterranean countries is mainly driven by final demand for, and exports of, agricultural products. In Central/Eastern Europe domestic final demand is the main driver of water consumption, but in this region the proportion of water use driven by demand for exports is increasing over time. Given these heterogeneous water consumption patterns, our analysis suggests that Mediterranean and Central/Eastern European countries should adopt specific water policies in order to achieve efficient levels of water consumption in the European Union. JEL codes: N5; C67 Keywords: Water use, Subsystem input–output model; Water intensity, European Union. |
| Keywords: | Aigua -- Consum, Anàlisi d'entrada/sortida, Unió Europea, Països de la, 33 - Economia, |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:urv:wpaper:2072/225298&r=eur |
| By: | Eibhlin Hudson (The Irish Longitudinal Study on Ageing, Trinity College Dublin); David Madden (University College Dublin); Irene Mosca (The Irish Longitudinal Study on Ageing, Trinity College Dublin) |
| Abstract: | Smoking, low physical activity and frequent alcohol consumption may have substantial health risks in terms of disease, quality of life and mortality. Understanding inequality in relation to these behaviours among older people is important in the context of a rapidly ageing population. In this study, we examine income-related inequality in relation to these three key health behaviours using data on older adults from both the Republic of Ireland and Northern Ireland. We employ concentration indices and decompose them to determine the factors which contribute most to inequality. We then examine whether differences exist between the two regions. We find that smoking and low physical activity are more concentrated among those with lower incomes in both regions. In relation to physical activity, the magnitude of the inequality is higher for Northern Ireland. Frequent alcohol consumption is more concentrated among those with higher incomes in both regions. Self-assessed health and age tend to feature prominently for all behaviours in terms of contribution to inequality. Marital status and labour market status tend to play a less pronounced role. In terms of Northern Ireland/Republic of Ireland comparisons with respect to the decompositions, probably the biggest difference is to be observed in the greater role accorded to labour market status in the Republic. For the other factors, the orders of magnitude are reasonably similar. This suggests that in many cases it may be the same underlying factors which lie behind income related inequalities. |
| Keywords: | inequality; health behaviours; older adults; Republic of Ireland; Northern Ireland |
| JEL: | I14 J14 |
| Date: | 2014–03–13 |
| URL: | http://d.repec.org/n?u=RePEc:ucd:wpaper:201406&r=eur |
| By: | Wagner, Joachim (Leuphana University Lueneburg and CESIS, Stockholm) |
| Abstract: | This paper uses a tailor-made newly available data set to investigate for the first time the links between the quality of input factors and the quality of exports in enterprises from manufacturing industries in Germany, one of the leading actors on the world market for goods. The paper demonstrates that in German manufacturing industries exporters of high-quality goods tend to use high-quality inputs, while the firm size is not related at all to export quality. |
| Keywords: | Exports; export quality; Germany |
| JEL: | F14 |
| Date: | 2014–03–12 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cesisp:0351&r=eur |
| By: | Daniel Albalate (Faculty of Economics, University of Barcelona); Germà Bel (Faculty of Economics, University of Barcelona); Xavier Fageda (Faculty of Economics, University of Barcelona) |
| Abstract: | Spain’s transport infrastructure policy has become a paradigmatic case of oversupply and of mismatch with demand. The massive expansion of the country’s transport infrastructure over the last decade has not been a response to demand bottlenecks or previously identified needs. For this reason, the intensity of use today on all interurban modes of transport in Spain falls well below that of other EU countries. This paper analyzes the institutional and regulatory factors that have permitted this policy, allowing us to draw lessons from the Spanish case that should help other countries avoid the pitfalls and shortcomings of Spanish policy. Based on our analysis, we also discuss policy remedies and suggest reforms in different regulatory areas, which could help improve the performance of Spain’s infrastructure policy. |
| Keywords: | Infrastructure, Transportation, Overcapacity, Regulation, Spain. JEL classification: H54; L91; L98; R41; R42; R48 |
| Date: | 2014–03 |
| URL: | http://d.repec.org/n?u=RePEc:ira:wpaper:201409&r=eur |
| By: | Schnepf, Sylke V. (University of Southampton) |
| Abstract: | Tertiary education has been expanding hugely over the last decades, so that tertiary dropout students will constitute a growing distinctive group in future labour markets. University dropout is regularly discussed as a 'negative' indicator in terms of reinforcing socio-economic inequalities and being a sign of university inefficiency. However, research on actual career trajectory of dropout students is virtually non-existent. Using data from the 2011 Programme for the International Assessment of Adult Competencies (PIAAC) this study first validates the uncommon self-reported measure of dropout used and compares the percentage of adults with tertiary dropout experience between OECD countries. Second, we examine whether tertiary dropout is a permanent decision as a considerable part of literature assumes. In a third step, we investigate characteristics of adults with dropout experience. Finally, we estimate the effect of dropout in terms of their employment status and success of entering managerial professions comparing results of logistic regressions and propensity score matching taking individuals' socio-economic and demographic background, work experience and cognitive skills into account. Results indicate that consistently across countries dropout is repeatedly a 'positive' indicator in the labour market. This is first due to the fact that the dropout decision is often not a permanent one as well as that for those adults who do not re-enrol into tertiary education labour market chances are better than for equally educated adults in about half of the countries examined. |
| Keywords: | European countries, labour market chances, tertiary dropout, propensity score matching |
| JEL: | I21 |
| Date: | 2014–03 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp8015&r=eur |
| By: | Tullio Jappelli (University of Naples Federico II, CSEF and CEPR); Mario Padula (University “Ca’ Foscari” of Venice and CSEF) |
| Abstract: | In 2000 Italy replaced its traditional system of severance pay for public employees with a new system. Under the old regime, severance pay was proportional to the final salary before retirement; under the new regime it is proportional to lifetime earnings. This reform entails substantial losses for future generations of public employees, in the range of €20,000-30,000, depending on seniority. Using a difference-in-difference framework, we estimate the impact of this unanticipated change in lifetime resources, on the current consumption and wealth accumulation of employees affected by the reform. In line with theoretical simulations, we find that each euro reduction in severance pay reduces the average propensity to consume by 3 cents and increases the wealth-income ratio by 0.32. The response is stronger for younger workers and for households where both spouses are public sector employees. |
| Keywords: | Severance Pay, Consumption, Wealth Accumulation |
| JEL: | D12 D91 E21 |
| Date: | 2014–03–05 |
| URL: | http://d.repec.org/n?u=RePEc:sef:csefwp:354&r=eur |
| By: | Bodas Freitas , Isabel Maria; Geuna, Aldo; Lawson, Cornelia; Rossi, Federica (University of Turin) |
| Abstract: | We investigate under what circumstances firms (industry inventors) are more likely to engage in interactions where governance of the relationship is shared between the firm and the university, as opposed to interactions where the relationship is governed unilaterally by the firm. Using PIEMINV, an original dataset of European industry patents in the Italian region of Piedmont, we analyse the characteristics of inventors with diverse experience in projects involving interactions with universities, governed by institutional contracts or personal contracts. Our results suggest that reliance among inventors of the two forms of governance is almost equal, and that unilateral governance forms are preferred when there are high levels of trust among the parties based on embeddedness in local social and education networks. This is likely because it involves less cumbersome and more direct interactions. We find also that knowledge characteristics are not particularly important discriminants of the choice between governance forms: the advantage of shared governance seems to reside mainly in the possibility to mitigate monitoring and asymmetric information problems in contexts of relatively low levels of mutual knowledge and trust. |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:uto:dipeco:201402&r=eur |
| By: | Audretsch, David B.; Segarra Blasco, Agustí, 1958-; Teruel, Mercedes |
| Abstract: | This article aims to analyze the different impact that some factors may exert on the probability that a small young firm invests intensively in R&D. Recently, an increasing amount of the literature makes reference to the vital role played by a small number of young firms in generating jobs and increasing efficiency levels. However, not all new firms invest in R&D. Departing from the definition of YICs (firms younger than 6 years old, fewer than 250 employees and with more than 15% of their revenues invested in R&D activities), and with an extensive sample of the Spanish Community Innovation Survey between 2004- 2010, we try to determine: i) those factors that cause firms to become YICs (innovative young small firms) or YNICs (moderately innovative young small firms); ii) what is the difference in the impact of those factors between YICs and YNICs. Our results show that factors such as initial innovation capacity and cooperation in R&D projects enhance the probability of becoming a YIC. Nevertheless, factors such as export potential and market uncertainty may influence the decision to invest moderately and become a YNIC. Keywords: Innovation, Policy, YICs. JEL Classifications: O31, D21 |
| Keywords: | Empreses -- Innovacions tecnològiques, Innovacions tecnològiques -- Política governamental, Investigació, Conducta organitzacional, Empreses petites i mitjanes, Empreses -- Creació, 65 - Gestió i organització. Administració i direcció d'empreses. Publicitat. Relacions públiques. Mitjans de comunicació de masses, |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:urv:wpaper:2072/225296&r=eur |
| By: | Etzo, Ivan; Massidda, Carla; Piras, Romano |
| Abstract: | This paper investigates the impact of migration on Italian inbound tourism flows in a dynamic panel data framework. Arrivals, expenditure and nights from 65 countries are analyzed for the period 2005-2011. The migration variable is defined at both origin and destination in order to assess the pushing and pulling forces. Estimates are performed using both aggregated flows and flows disaggregated to separate the VFRs from two non-VFR categories, namely holiday and business. The results suggest the presence of a strong migration-tourism nexus which clearly goes beyond visiting friends and relatives. Moreover, the effects of the different determinants vary according to the way in which the tourism market is segmented and, within each segment, to the way in which tourism demand is measured. |
| Keywords: | Migration, Inbound Tourism, Dynamic Panel Data, Italy |
| JEL: | L83 O15 |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:54252&r=eur |
| By: | Meyer, Sophie-Charlotte (University of Wuppertal); Künn-Nelen, Annemarie (ROA, Maastricht University) |
| Abstract: | The aim of this paper is to investigate to what extent occupation-specific demands explain the relationship between education and health. We concentrate on ergonomic, environmental, psychical, social and time demands. Merging the German Microcensus 2009 data with a dataset including detailed occupational demands (German Employment Survey 2006), we have a unique dataset to analyze the mediating role of occupational demands in the relationship between education and health status on the one hand and education and health behavior (BMI and smoking) on the other. We base our analyses on the entire working population and therefore also include those who no longer work, taking occupational demands related to their last job. First, we find that occupational demands are significantly related to subjective health and health behaviors. This holds even stronger for those who are no longer employed. Second, we find that whereas occupational demands do not explain educational differences in subjective health status, they do partially mediate the education gradient in the considered health behaviors. Educational differences in smoking status can partly be explained by ergonomic, environmental, psychical and social demands. The educational gradient in BMI is partly attributable to social occupational demands. |
| Keywords: | education, occupational demands, working conditions, occupations, health, health behavior |
| JEL: | I1 J2 I2 |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp8011&r=eur |
| By: | Erixson, Oscar (Uppsala Center for Fiscal Studies) |
| Abstract: | This essay contributes in two ways to the literature on the effects of economic circumstances on health. First, it deals with reverse causality and omitted variable bias by exploiting exogenous variation in inherited wealth generated by the unexpected repeal of the Swedish inheritance tax. Second, it analyzes responses in health outcomes from administrative registers. The results show that increased wealth has limited impacts on objective adult health over a period of six years. This is in line with what has been documented previously regarding subjective health outcomes. If anything, it appears as if the wealth shock resulting from the tax reform leads people to seek care for symptoms of disease, which result in that cancer is detected and possibly treated earlier. One possible explanation for this preventive response is that good health is needed for enjoying the improved consumption prospects generated by the wealth shock. |
| Keywords: | inheritances; tax reform; wealth shock; objective health |
| JEL: | D10 H30 I10 I12 I14 |
| Date: | 2014–02–28 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:uufswp:2014_003&r=eur |
| By: | Jőrg Drechsler; Lars Vilhuber |
| Abstract: | One major criticism against the use of synthetic data has been that the efforts necessary to generate useful synthetic data are so in- tense that many statistical agencies cannot afford them. We argue many lessons in this evolving field have been learned in the early years of synthetic data generation, and can be used in the development of new synthetic data products, considerably reducing the required in- vestments. The final goal of the project described in this paper will be to evaluate whether synthetic data algorithms developed in the U.S. to generate a synthetic version of the Longitudinal Business Database (LBD) can easily be transferred to generate a similar data product for other countries. We construct a German data product with infor- mation comparable to the LBD - the German Longitudinal Business Database (GLBD) - that is generated from different administrative sources at the Institute for Employment Research, Germany. In a fu- ture step, the algorithms developed for the synthesis of the LBD will be applied to the GLBD. Extensive evaluations will illustrate whether the algorithms provide useful synthetic data without further adjustment. The ultimate goal of the project is to provide access to multiple synthetic datasets similar to the SynLBD at Cornell to enable comparative studies between countries. The Synthetic GLBD is a first step towards that goal. |
| Keywords: | confidentiality, comparative studies, German Longitudinal Business Database, synthetic data |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:cen:wpaper:14-13&r=eur |
| By: | Uwe Cantner (School of Economics and Business Administration, Friedrich-Schiller-University Jena); Wolfgang Gerstlberger (University of Southern Denmark, Department of Marketing and Management); Ipsita Roy (Graduate College "The Economics of Innovative Change" (DFG-GK-1411), Friedrich Schiller University Jena, Department of Economics) |
| Abstract: | Building on the notion of general and specific human capital proposed by Becker (1962), the paper highlights the importance of employee training practices undertaken in firms as an important tool for human resource and knowledge management and focuses on the role of works councils as a specific form of employee representation system therein. Using establishment data on various aspects of training practices and innovation activities in Germany, the paper examines the degree, type and extent to which establishments invest in employee training and finds significant differences for firms with and without works councils. Specifically, findings suggest that works councils are related more with the provision of generalized training rather than in firm-specific technical training of employees. In addition, the paper finds strong support for using works councils as an instrument for a firm's total training activities that correlate with innovation, and weak support when we consider only generalized training and innovation. Finally, no significant relation is found between training practices and radical innovativeness of firms after accounting for reverse causality. |
| Keywords: | employee training practices, knowledge management, generalized training, firm-specific technical training, works councils, innovation, radical innovation |
| JEL: | J5 M53 O3 |
| Date: | 2014–03–10 |
| URL: | http://d.repec.org/n?u=RePEc:jrp:jrpwrp:2014-006&r=eur |
| By: | Massimo Bordignon (Department of Economics and Public Finance, Catholic University, Milano, Italy); Matteo Gamalerio (Department of Economics, University of Warwick, Coventry, UK); Gilberto Turati (Department of Economics and Statistics (Dipartimento di Scienze Economico-Sociali e Matematico-Statistiche), University of Torino, Italy) |
| Abstract: | In a career-concern model of politics with endogenous candidacy and different types of politicians, following a decentralization reform, politicians with different skills are elected in municipalities characterized by different levels of autonomous resources. As an effect, consumer welfare increases only, or mainly, in richer municipalities. We test these predictions by exploiting the differentiated reduction in Vertical Fiscal Imbalance in Italian municipalities, due to the strong difference in the tax base, following the decentralization reforms of the '90s. Results strongly support our predictions and are robust to several alternative stories. |
| Keywords: | decentralization, vertical ?scal imbalance, quality of politicians |
| JEL: | D72 D78 |
| Date: | 2014–03 |
| URL: | http://d.repec.org/n?u=RePEc:tur:wpapnw:025&r=eur |
| By: | Andrzej Cieślik (Faculty of Economic Sciences University of Warsaw); Jan Jakub Michałek (Faculty of Economic Sciences University of Warsaw) |
| Abstract: | There are many studies aiming at estimation of aggregate trade effects of the euro adoption by the old EU countries, which are based on the gravity model. In contrast to the existing literature we investigate whether the adoption of the common currency increases the export activity of individual firms. In particular, we refer to the new strand in the trade theory, based on the Melitz (2003) model, in which propensity to export depends on productivity and costs of exporting. There are many empirical studies, based on firm level data, showing the relevance of the Melitz (2003) model. Most of those studies demonstrate that export performance positively depends on firms’ characteristics, but they do not take into account the impact of the common currency on the cost of exporting. There are only few studies analyzing implications of euro adoption for firms’ exports of “old EU” members. In our empirical paper we use the firm level data basis set up by the EBRD and the World Bank. Using the probit model we analyze whether the accession of Slovenia and Slovakia to the Eurozone did increase the firms’ propensity to export in those countries. |
| JEL: | F12 F14 F33 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:nbp:nbpmis:173&r=eur |
| By: | Kristoffer Moeller |
| Abstract: | Knowledge based firms like IT companies do neither have a capital- nor a land intensive production. They predominantly rely on qualified labour and increasingly depend on the location of its (potential) employees. This implies that it is more likely that firms follow workers rather than the other way around. Contributing to the literature of firm location and consumer cities I empirically test the amenity oriented firm location hypothesis. In particular I investigate whether Berlin internet start-up firms, representing a footloose knowledge-based service industry, locate in urban amenity-rich places. Identification builds on the sudden fall of the Berlin Wall. The intra-city analysis yields a significant impact of urban amenities on the location of internet start-up. A comparison with other service industries suggests that amenities are significant to the location choice of creative sectors whereas no effect can be observed for non-creative firms. |
| Keywords: | Firm location, urban amenities, consumer city, internet start-ups, entrepreneurs, Berlin |
| JEL: | R30 D22 L26 |
| Date: | 2014–03 |
| URL: | http://d.repec.org/n?u=RePEc:cep:sercdp:0157&r=eur |
| By: | Lööf, Hans (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology); Nabavi , Pardis (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology) |
| Abstract: | This paper provides estimates of negative binomial regressions for high-leveraged and non-high-leveraged exporting firms in Sweden over a business cycle that contains two boom periods and two recession periods. The contemporaneous cash flow coefficients are positive and statistically significantly associated with patent applications for non-high-equity firms in recession periods when all exporters are considered. No corresponding correlation is found among persistent exporters. Taking the firms’ geographical location into account, we find a significant difference in cash flow sensitivity between firms in metropolitan areas and firms located in other places. |
| Keywords: | Exporting; Innovation; Financing constraints; Firm level; Panel data |
| JEL: | C16 F14 G32 O31 |
| Date: | 2014–03–12 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cesisp:0346&r=eur |
| By: | Hall, Axel; Zoega, Gylfi |
| Abstract: | The Nordic countries are known for their success in combining an extensive welfare state with high labor force participation. This is explained by the origins of their welfare states that can be traced to a unique set of values and beliefs that emphasize the right of women to participate in the labor market. These values are currently shared by individuals born in other European countries of Nordic parents. Some possible causal explanations are proposed. -- |
| Keywords: | employment,,taxes,values,beliefs |
| JEL: | J21 J22 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ifwedp:201411&r=eur |