nep-eur New Economics Papers
on Microeconomic European Issues
Issue of 2015‒02‒05
23 papers chosen by
Giuseppe Marotta
Università degli Studi di Modena e Reggio Emilia

  1. To what extent income growth differs with children. The Spanish case By Elena Bárcena-Martín; Ana I. Moro Egido; Salvador Perez-Moreno
  2. Evaluating a decade of mobile termination rate regulation By Christos Genakos; Tommaso Valletti
  3. Migrant diversity, migration motivations and early integration: the case of Poles in Germany, the Netherlands, London and Dublin By Renee Luthra; Lucinda Platt; Justyna Salamońska
  4. The impact of a carbon tax on manufacturing: evidence from microdata By Ralf Martin; Laure B. de Preux; Ulrich J. Wagner
  5. ICT and environmental innovations in a complementary fashion. Is the joint adoption by firms economically visible? By Davide Antonioli; Grazia Cecere
  6. The interrelationships between the Europe 2020 - social inclusion indicators By Sara Ayllon; Andras Gabos
  7. Effects of Changes in Pensions on the Age of First Benefit Receipt: Regression Discontinuity Evidence from Repatriated Ethnic Germans By Puhani, Patrick A.; Tabbert, Falko
  8. The impact of mandatory entitlement to paid leave on employment in the UK By Alexander Lembcke
  9. Measuring Renewable Energy Externalities: Evidence from Subjective Well-Being Data By Heinz Welsch; Charlotte von Möllendorf
  10. Immigration, the European union and the UK labour market By Jonathan Wadsworth
  11. First-come first-served: identifying the demand effect of immigration inflows on house prices By Rosa Sanchis-Guarner
  12. The 2014 PREDICT report: An Analysis of ICT R&D in the EU and beyond By Matilde Mas; Juan Fernández de Guevara Radoselovics
  13. The Tower of Babel in the Classroom: Immigrants and Natives in Italian Schools By Ballatore, Rosario Maria; Fort, Margherita; Ichino, Andrea
  14. 30,000 Minimum Wages: The Economic Effects of Collective Bargaining Extensions By Pedro S. Martins
  15. Exports, agglomeration and workforce diversity : an empirical assessment for German establishments By Brunow, Stephan; Grünwald, Luise
  16. Does Regulatory Independence Translate into a Higher Degree of Liberalization? - Evidence from EU Energy Regulators By Lindemann, Henrik
  17. Monitoring impacts from Council Regulation (EU) No 333/2011: End-of-waste criteria for Al/Fe scrap By Hans Saveyn; Peter Eder; Glenn Orveillon; Peter Willis; Rachel Waugh; Tecla Castella; Katherine Bojczuk; Steve Slater; Julian Parfitt; Frans Bijlhouwer
  18. Labour flows and R&D: A quantile regression analysis By Di Cintio, Marco; Grassi, Emanuele
  19. Public ICT R&D funding in the European Union By Juraj Stan?ík; Ibrahim Kholilul Rohman
  20. The Determinants of Efficiency and Productivity in the Swiss Insurance Industry By Biener, Christian; Eling, Martin; Wirfs, Jan Hendrik
  21. Measuring Nuclear Power Plant Externalities Using Life Satisfaction Data: A Spatial Analysis for Switzerland By Heinz Welsch; Philipp Biermann
  22. How do child and adolescent mental health problems influence public sector costs? Interindividual variations in a nationally representative British sample By Martin Knapp; Tom Snell; Andrew Healey; Sacha Guglani; Sara Evans-Lacko; José-Luis Fernández; Howard Meltzer; Tamsin Ford
  23. Does Female Suffrage Increase Public Support for Government Spending? Evidence from Swiss Ballots By Hofer, Katharina E.

  1. By: Elena Bárcena-Martín (Dpto. Estadística y Econometría, University of Málaga.); Ana I. Moro Egido (Department of Economic Theory and Economic History, University of Granada.); Salvador Perez-Moreno (Dpto. Economia Aplicada, University of Málaga.)
    Abstract: The Great Recession has notably affected household income in most European countries, but not in the same way for all types of household. This paper aims to discuss whether significant differences exist in income growth between households with and without children. The analysis focuses on Spain, finding that Spanish households with children benefited less from income growth in the period 2004-2008 and experienced more decay in income in the period 2008-2012. This pattern is not the same across countries likely due to various socioeconomic and institutional factors: Germany displays the opposite pattern and Italy a mixed pattern, partly related to the different degree of child-sensitive social protection.
    Keywords: household income, children, growth incidence curve, EU-SILC
    JEL: D31 O15 J13
    Date: 2015–01–22
  2. By: Christos Genakos; Tommaso Valletti
    Abstract: We re-consider the impact that regulation of call termination on mobile phones has had on mobile customers’ bills. Using a large panel covering 27 countries, we find that the “waterbed” phenomenon, initially observed until early 2006, becomes insignificant on average over the 10-year period, 2002-2011. We argue that this is related to the changing nature of the industry, whereby mobile-to-mobile traffic now plays a much bigger role compared to fixed-to-mobile calls in earlier periods. Over the same decade, we find no evidence that regulation caused a reduction in mobile operators’ profits and investments.
    Keywords: Mobile telephony; termination rates; waterbed effect
    JEL: D12 D43 L5 L96 L98
    Date: 2014–07
  3. By: Renee Luthra; Lucinda Platt; Justyna Salamońska
    Abstract: The expansion of the European Union eastwards in 2004, with an ensuing massive increase in East-West migration from the accession countries has been represented as a new migration system of a kind unique in recent migration history, with its specific features of rights of movement and low mobility and information costs accompanying persistent East-West wage differentials. In principle, it provides an ideal context in which to develop understandings of the ‘new migration’ reflecting complex motivations and migration trajectories as well as chain migration and transnational lives. Despite a rapid expansion of research in this area, new insights into the complexities of mixed migration motivations and migrant heterogeneity have tended to be focused on country-specific qualitative studies. In this paper we utilise a unique, four-country data source covering over 3,500 Poles migrating to Germany, the Netherlands, London and Dublin in 2009-2010, to enable the quantitative characterization of the new migration. Exploiting information on pre-migration experience as well as expressed migration motivations and post-migration structural, subjective and social measures of integration in the receiving country, we conduct a three-stage analysis. First we employ latent class analysis to allocate the migrants to six migrant types. Second, we link these migrant types to pre-migration characteristics and estimate multinomial logit models for class membership. Third, controlling for these pre-migration characteristics we are able to explore how the migrant types are associated with measures of integration. We reveal substantial heterogeneity among migrants and some evolving ‘new’ migrant types alongside more traditional labour migrants. We show how these types are associated with differences in pre-migration human capital, region of origin and employment experience and with post-migration social and subjective integration in receiving societies.
    Keywords: Migrant diversity; migration motivations and early integration
    JEL: J11 J61
    Date: 2014–04
  4. By: Ralf Martin; Laure B. de Preux; Ulrich J. Wagner
    Abstract: We estimate the impact of a carbon tax on manufacturing plants using panel data from the UK production census. Our identification strategy builds on the comparison of outcomes between plants subject to the full tax and plants that paid only 20% of the tax. Exploiting exogenous variation in eligibility for the tax discount, we find that the carbon tax had a strong negative impact on energy intensity and electricity use. No statistically significant impacts are found for employment, revenue or plant exit.
    Keywords: carbon tax; climate change levy; energy use; manufacturing; policy evaluation; UK
    JEL: D21 H23 Q41 Q48 Q54
    Date: 2014–09
  5. By: Davide Antonioli (Dipartimento di Economia e Management, Via Voltapaletto 11, Ferrara, Italy.); Grazia Cecere (Telecom Ecole de Management, Institut Mines-Telecom d Author-Name: Massimiliano Mazzanti)
    Abstract: We analyse how the joint adoption of ICT practices and environmental innovation affect the labour productivity of firms. We study complementarity in innovation adoption, with respect to the specific research hypotheses that the higher thediffusion and radicalness of ICT and EI, the higher might firm\rquote s productivitybe. As ICT are considered to be able to reduce the environmental footprint of different economics activities. We exploit original survey data which cover manufacturing firms for a dense SME area in the North-East of Italy (Emilia-Romagna region). We originally merge innovation survey data over 2006-2008 with firm\rquote s balance sheets over 2010-2011 to achieve this aim.The empirical evidence shows that for Emilia-Romagna manufacturing firms there are still wide margins for improving ICT-EIs integration in order to exploit their potential benefits on firm economic performance. However, the awareness of specific synergies seems to mainly characterizethe heavy polluting firms, subject to ETS schemes, while for the remaining firms prevalently emerge some substitutabilityrelations between ICT and EI. The latter firms are strategically less capable of exploiting the potential synergies between ICT and EI.
    Keywords: ICT, environmental innovation, adoption, SME, polluting sectors, Porter hypothesis, complementarity, labor productivity.
    JEL: D22 L23 L25 L60 M15
    Date: 2014–06
  6. By: Sara Ayllon; Andras Gabos
    Abstract: The aim of this paper is to dynamically analyse the three indicators of poverty and social exclusion covered by the EU2020 poverty target, while focusing on state dependence and feedback effects. We are interested in learning to what extent being at risk of poverty, severe material deprivation or low work intensity in one year is related to being in the same status one year later and if being in a given status predicts the occurrence of one of the others in subsequent periods. Our results indicate that the three social indicators of the EU2020 strategy are capturing different aspects of economic hardship in the majority of European countries analysed. We show that the three processes are affected by a considerable degree of genuine state dependence but weak evidence for one-year lagged feedback effects (with the exception of the Central-Eastern European countries where feedback loops between the three segments are found. Mostly, interrelationships occur via current effects, initial conditions and correlated unobserved heterogeneity. In terms of policy implications, our results suggest that the three phenomena should be handled by different interventions while expecting spill-over effects across time to be marginal.
    Keywords: Europe 2020 indicators, poverty, material deprivation, low work intensity, state dependence, feedback effects, EU-SILC
    JEL: I32 I31 J64
    Date: 2015–01
  7. By: Puhani, Patrick A. (Leibniz University of Hannover); Tabbert, Falko (Leibniz University of Hannover)
    Abstract: To estimate the effects of large cuts in pensions on the age of first benefit receipt, we exploit two natural experiments in which such cuts affect a group of repatriated ethnic German workers. The pensions were cut by about 12%, yet, according to our regression discontinuity estimates based on administrative pension data, there was no significant delay in the age of first pension receipt. Based on additional data sources, we find (i) that almost all pension recipients of our study population had left the labor force and (ii) that repatriated ethnic Germans hold similar jobs and exhibit similar retirement behavior as low-skilled Germans. The results are consistent with low-skilled workers in Germany being frozen in a corner-solution equilibrium in which the optimal choice is to retire as early as possible.
    Keywords: policy, evaluation, pension reform, labor supply, retirement
    JEL: J26 H55
    Date: 2015–01
  8. By: Alexander Lembcke
    Abstract: I evaluate the impact of the UK Working Time Regulations 1998, which introduced mandatory paid holiday entitlement. The regulation gave (nearly) all workers the right to a minimum of 4 weeks of paid holiday per a year. With constant weekly pay this change amounts effectively to an increase in the real hourly wage of about 8.5% for someone going from 0 to 4 weeks paid holiday per year, which should lead to adjustments in employment. For employees I use complementary log-log regression to account for right-censoring of employment spells. I find no increase in the hazard to exit employment within a year after treatment. Adjustments in wages cannot explain this result as they are increasing for the treated groups relative to the control. I also evaluate the long run trend in aggregate employment, using the predicted treatment probabilities in a difference-in-difference framework. Here I find a small and statistically significant decrease in employment. This effect is driven by a trend reversal in employment, coinciding with the treatment.
    Keywords: UK Working Time Regulation; Employment and labour regulation; UK LFS
    JEL: J08 J23 J45
    Date: 2014–03
  9. By: Heinz Welsch (University of Oldenburg, Department of Economics); Charlotte von Möllendorf (University of Oldenburg, Department of Economics)
    Abstract: Electricity from renewable sources avoids the disadvantages of conventional power generation (air pollution, greenhouse gases, nuclear risk) but often meets with local resistance due to visual, acoustic, and odor nuisance. We use representative panel data on the subjective well-being of 36,475 individuals in Germany, 1994 -<br>2012, for identifying and valuing the local externalities from wind, solar and biomass plants. While the well-being effects of windturbines refer mainly to initial installations and tend to dissipate over time, the effects of solar and biomass plants build up gradually as their number and capacity rises. In a spatial perspective,<br>power generation from biomass creates negative spillovers to adjacent localities that are absent in the case of wind power.
    Keywords: renewable energy, local externality; subjective well-being, life satisfaction, non-market valuation
    JEL: Q42 D62 I31 Q51
    Date: 2014–12
  10. By: Jonathan Wadsworth
    Abstract: During periods of strong economic growth, migration is and has always been important for filling gaps in the labour market. On balance, the evidence for the UK labour market suggests that fears about adverse consequences of rising immigration in general and EU immigration in particular have still not, on average, materialised. It is hard to find evidence of much displacement of UK workers or lower wages, on average. Immigrants, especially in recent years, tend to be younger and better educated than the UK-born and less likely to be unemployed. Future migration trends will, as ever, depend on relative economic performance and opportunity. But we still need to know more about the effects of rising immigration beyond the labour market in such areas as prices, health, crime and welfare.
    Keywords: immigration; European union; UK; government policy; education; labour market; jobs; wages
    JEL: J44
    Date: 2014–05
  11. By: Rosa Sanchis-Guarner
    Abstract: An inflow of immigrants into a region affects house prices in three ways. In the short run, housing demand increases due to the increase in foreign-born population. In the long run, immigrants affect native location decisions and housing supply conditions. Previous research on the effect of immigration on local house prices has argued that the impact of immigrant demand cannot be separated from the demand changes due to native relocation or that the impact of immigrants on native mobility has no consequences on the estimates. In this paper I propose a methodology to pin down the immigrant demand effect. I apply it to Spanish data during the period 2002-2010 and I show that overlooking the impact of immigration on native mobility induces a sizeable bias in the short-run estimates. My results are robust to controlling for changes in housing supply.
    Keywords: immigration; housing markets; instrumental variables
    JEL: J61 R12 R21
    Date: 2014–05
  12. By: Matilde Mas (Ivie - Instituto Valenciano de Investigaciones Económicas); Juan Fernández de Guevara Radoselovics (Ivie - Instituto Valenciano de Investigaciones Económicas)
    Abstract: The 2014 PREDICT report covers the period 2006-2011 analysing the consequences of the deep recession that began in early 2008 which impacts the first most severe downturn in 2009 for the European Union (EU) ICT sector and its R&D performance. The report found that the EU ICT sector continued losing share in total value added, but gaining the share in terms of employment and BERD intensity. The share of ICT R&D public funding (GBAORD) on total GBAORD also increased in 2010 and 2011. However, as a result of the reverse progress on the value added and employment, ICT sector’s labour productivity showed a downward trend during the observed periods. In terms of sub-sector analysis, the ICT manufacturing and services have both recovered to create additional employment in 2011 even though the impact is less profound for the latter. On international comparison, the US still led in ICT sector productivity and value added in 2011. However, in BERD activities, they are being challenged by four Asian countries: Japan, China, Korea and Taiwan.
    Keywords: ICT; information and communication technologies; R&D, BERD, GBAORD, ICT manufacturing, ICT services; Europe; US, Japan, indicators.
    JEL: O30 O32 O52
    Date: 2014–12
  13. By: Ballatore, Rosario Maria; Fort, Margherita; Ichino, Andrea
    Abstract: We exploit rules of class formation to identify the causal effect of increasing the number of immigrants in a classroom on natives test scores, keeping class size constant (Pure Composition Effect). We explain why this is a relevant policy parameter although it has been neglected so far. We show that the PCE is sizeable and negative at age 7 (-1.6% for language and math) and does not vanish when children grow up to age 10. Conventional estimates are instead smaller because they are confounded by endogenous class size adjustments implemented by principals when confronted with immigrant and native inflows.
    Keywords: education; immigration; integration
    JEL: C36 I20 I24 J15
    Date: 2015–01
  14. By: Pedro S. Martins
    Abstract: Several countries extend collective bargaining agreements to entire sectors, therefore binding non-subscriber workers and employers. These extensions may address coordination issues but may also distort competition by imposing sector-specifc minimum wages and other work conditions that are not appropriate for many firms. In this paper, we analyse the impact of such extensions along several margins drawing on firm-level monthly data for Portugal, a country where extensions have been widespread until recently. Drawing on the scattered timing of the extensions, we find that both formal employment and wage bills in the relevant sector fall, on average, by 2% - and by 25% more across small firms - over the four months after an extension is issued. These results are driven by both reduced hirings and increased firm closures. On the other hand, informal work, not subject to labour law or extensions, tends to increase. Our findings are robust to several checks, including a falsification exercise based on extensions that were announced but not implemented. JEL codes: J52, K31, J23
    Keywords: Collective agreements, worker flows, labour law
    Date: 2014
  15. By: Brunow, Stephan (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]); Grünwald, Luise
    Abstract: "Theoretical and empirical contributions on export behavior highlight the importance of firms' productivity and their levels of economies of scale on firms' export success in 'foreign' markets. In the context of agglomeration economies, firms enjoy productivity gains when they are located close to competitors or upstreaming industries and they benefit from knowledge spillovers and other positive externalities. In such a stimulating environment, firms become more prone to be exporters. Beyond the role played by externalities, firms may benefit when they employ a diverse workforce and when the interaction of distinct knowledge and related problem-solving abilities increases productivity and secures export success. In this paper, we ask whether German firms (i. e., establishments) benefit from localization and urbanization externalities and face higher export proportions. We also control for a variety of establishment characteristics and workforce diversity. For this purpose, a comprehensive German data set that combines survey data and administrative data is used. While controlling for firm heterogeneity in a fractional response model, we provide evidence that manufacturing establishments and smaller establishments (up to 250 employees) benefit most from externalities and especially from knowledge spillover. There is weak evidence supporting the benefit of workforce diversity; however, that factor could explain between-establishment variation." (Author's abstract, IAB-Doku) ((en))
    Date: 2015–01–20
  16. By: Lindemann, Henrik
    Abstract: Independent regulatory authorities are a basic prerequisite for a successful liberalization process. However, contrary to what is expected, both graphical analyses and OLS regressions for a small sample of electricity and gas regulators operating in 16 European countries reveal a negative relationship between the authorities' formal autonomy from politicians and the scope of market reforms. These findings might suffer from endogeneity, though, so we draw on political scientists' explanations for diverging independence levels to construct appropriate instruments. The 2SLS-IV results then confirm conventional wisdom: the higher the degree of regulatory autonomy, the higher the level of liberalization.
    Keywords: Independent Regulatory Authorities,Energy Market Liberalization,Formal Independence
    JEL: L50 L94 L95 L98
    Date: 2015–01
  17. By: Hans Saveyn (European Commission – JRC - IPTS); Peter Eder (European Commission – JRC - IPTS); Glenn Orveillon (European Commission – JRC - IPTS); Peter Willis (Oakdene Hollins Ltd.); Rachel Waugh (Oakdene Hollins Ltd.); Tecla Castella (Oakdene Hollins Ltd.); Katherine Bojczuk (Oakdene Hollins Ltd.); Steve Slater (Oakdene Hollins Ltd.); Julian Parfitt (Oakdene Hollins Ltd.); Frans Bijlhouwer (Quality Consultants)
    Abstract: On 9 October 2011, Council Regulation 333/2011 came into force establishing criteria by which scrap from iron and steel, aluminium and aluminium alloys could cease to be regulated as waste. This study examines the impacts of the Regulation on scrap availability, trade flows, prices, administrative requirements and environment or human health incidents. Because no data currently distinguishes between waste and end-of-waste compliant scrap, information was collected from the EU Competent Authorities and industry using detailed surveys. Across Europe, approximately 250 companies provided responses to the industry survey (representing approximately one quarter of the membership of the scrap industry associations), with a further 15 submissions from industry associations and 25 from Competent Authorities, although the survey responses were notably skewed towards Italy. The results of the study show that more than 1,100 scrap industry companies are already using the end-of-waste criteria across Europe. Uptake is most pronounced in Italy, where over 1,000 scrap companies generate end-of-waste compliant scrap. This rapid uptake in Italy is due in part to a specific legal framework on secondary raw materials already in place before the introduction of the end-of-waste criteria. In the rest of Europe there are a further 100 scrap companies active in end-of-waste scrap. In terms of the quantity of end-of-waste compliant scrap available on the market, this study estimates that, as a lower bound, at least 15% of EU scrap steel and 10% of EU scrap aluminium is compliant. Importantly, this study has found almost no evidence that end-of-waste has caused any negative impacts on the market, whether that be to scrap quality, availability/trade or on the environment. On the contrary, quite a number of the survey participants, both from industry and Competent Authorities highlighted the perceived benefits of the introduction of end-of-waste for metal scrap. These perceived benefits include: creating a simplified regulatory framework and offering companies greater flexibility and legal certainty. Some companies identified improved scrap quality and increased sales prices. At the expert workshop participants debated several ideas for a future monitoring system. One key conclusion was that there is no urgent need to revisit monitoring in the near future, due to the relatively modest rate of uptake outside Italy and the very few, if any, negative impacts observed so far. A repeat of the industry and authorities’ surveys in 2-3 years times was deemed to be the most appropriate way to monitor end-of-waste for scrap metal, and copper scrap could be added to the scope of that exercise.
    Keywords: market impact
    Date: 2014–12
  18. By: Di Cintio, Marco; Grassi, Emanuele
    Abstract: Does R&D affect hirings, separations or both? Different answers to this question imply different behavioural responses of firms to innovation. Using a sample of Italian manufacturing firms, this paper explores the effects of R&D intensity on hiring, separation and churning rates. Based on quantile regression models, the results indicate that initial R&D intensity has a positive impact on subsequent hirings and churning and a negligible effect on separations. The results remain stable when the estimates are based on the two and three year averages of the labour flow rates and when we account for lagged R&D intensity, for different subperiods and for an alternative measure of the hiring, separation and churning rates.
    Keywords: Labour flows; R&D; Quantile regression
    JEL: J63 L25 M51 O33
    Date: 2015–01–30
  19. By: Juraj Stan?ík (European Commission – JRC - IPTS); Ibrahim Kholilul Rohman (European Commission – JRC - IPTS)
    Abstract: The report provides a detailed analysis of the state of public expenditure on Information and Communication Technologies (ICT) Research and Development (R&D) in the European Union (EU). We also provide an interim assessment of the extent to which the Digital Agenda target about doubling public ICT R&D expenditures has been achieved. Furthermore, besides focusing on the EU, we compare these expenditures with public expenditures on ICT R&D in the EU’s main counterpart, the United States of America (US). Our analysis, covering the period 2006-2011, shows that EU ICT R&D public funding has been steadily growing. In 2011, it reached €6.1 billion which represented 6.6% of the whole public R&D funding. Regarding the comparison with the US, we conclude that the US government devotes more ICT R&D funds than all the EU Member States governments together but this gap has been shrinking and during the period 2006-2011 it decreased by 50%.
    Keywords: ICT; information and communication technologies; innovation; R&D; NABS; GBAORD; public funding; ICT R&D; EU; the US
    JEL: E61 H50 O32 O52 R12 R28
    Date: 2014–12
  20. By: Biener, Christian; Eling, Martin; Wirfs, Jan Hendrik
    Abstract: Using state-of-the-art frontier efficiency methodologies, we study the efficiency and productivity of Swiss insurance companies in the life, property/casualty, and reinsurance sectors from 1997–2013. The broad scope of this study provides an opportunity to compare and cross-check the findings from other countries, across different time periods, and across different subsectors. Moreover, we are the first to analyze the internationalization strategies of insurance companies, a topic of high interest in the business and economics literature, but one that has not to date been the focus of efficiency studies in the insurance sector. We find that productivity and efficiency in the Swiss insurance market have improved for the property/casualty and reinsurer sectors, but not in the case of life insurance. The results suggest that the internationalization of the insurance business has a positive impact on insurer efficiency. We also illustrate the importance of analyzing nonlinear and interaction effects in second-stage regressions so as to obtain richer insight into the determinants of efficiency. These tests show that being either a small specialist or a large diversified company is optimal from an efficiency point of view. Our findings are of interest not only for Swiss insurance company managers, regulators, and policymakers, but also for academics in other fields and practitioners in other countries.
    Keywords: Data Envelopment Analysis, Two-stage Double-bootstrap, Internationalization, OR in Insurance
  21. By: Heinz Welsch (University of Oldenburg, Department of Economics); Philipp Biermann (University of Oldenburg, Department of Economics)
    Abstract: Conceptualizing externalities from perceived nuclear risk as being related to distance from nuclear facilities, we estimate the relationship between Swiss citizens’ life satisfaction (understood as a proxy of utility) and the distance of their place of residence from the nearest nuclear power plant. Controlling for a rich set of life satisfaction factors, we find a statistically and economically significant satisfaction-distance gradient, whose monetary value amounts to CHF 291 per kilometer of distance, on average. The gradient is smaller for those who may feel protected by wind direction and topographical conditions, and it differs by age, sex, and the level of education. The satisfaction-distance gradient has changed significantly after the nuclear disaster at Fukushima, Japan, indicating a reassessment of distance-dependent nuclear risk. We find no evidence of hedonic locational equilibrium with respect to nuclear risk.
    Keywords: nuclear risk; life satisfaction; non-market valuation; spatial equilibrium; Fukushima
    JEL: Q48 Q51 I31 Q54 R53
    Date: 2015–01
  22. By: Martin Knapp; Tom Snell; Andrew Healey; Sacha Guglani; Sara Evans-Lacko; José-Luis Fernández; Howard Meltzer; Tamsin Ford
    Abstract: Background:- Policy and practice guidelines emphasize that responses to children and young people with poor mental health should be tailored to needs, but little is known about the impact on costs. We investigated variations in service-related public sector costs for a nationally representative sample of children in Britain, focusing on the impact of mental health problems. Methods:- Analysis of service uses data and associated costs for 2461 children aged 5–15 from the British Child and Adolescent Mental Health Surveys. Multivariate statistical analyses, including two-part models, examined factors potentially associated with interindividual differences in service use related to emotional or behavioural problems and cost. We categorized service use into primary care, specialist mental health services, frontline education, special education and social care. Results:- Marked interindividual variations in utilization and costs were observed. Impairment, reading attainment, child age, gender and ethnicity, maternal age, parental anxiety and depression, social class, family size and functioning were significantly associated with utilization and/or costs. Conclusions:- Unexplained variation in costs could indicate poor targeting, inequality and inefficiency in the way that mental health, education and social care systems respond to emotional and behavioural problems.
    Keywords: psychiatric practice; education; social work; economic evaluation
    JEL: E6
    Date: 2014
  23. By: Hofer, Katharina E.
    Abstract: In this paper, I challenge the notion that women prefer larger governments than men which is why extending the franchise to women has led to an increase in government spending in many industrialized countries. I estimate the average treatment effect of being female on support for government spending, by analyzing the voting outcomes of two similar Swiss referendum votes concerning the federal government's authorization to levy income, capital and turnover taxes. The first ballot took place shortly before the extension of suffrage to women in February 1971, and the other one directly thereafter. Based on municipal voting data, I relate the increase in the electorate to the difference in acceptance rates for the two propositions. Surprisingly, I find that approval for government spending is higher among the male population. Further, I conduct a mediation analysis based on post-ballot surveys after comparable votes in 1981, 1991, and 1993. The intrinsic direct effect of being female proves to be the driving force behind the negative gender gap. In contrast, socioeconomic mediators like employment status or education turn out to play a weaker role.
    Keywords: Female Suffrage; Gender Preference Gap; Voting; Direct Democracy; Mediation
    JEL: J16 H10 D72
    Date: 2015–01

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