nep-eur New Economics Papers
on Microeconomic European Issues
Issue of 2016‒01‒03
24 papers chosen by
Giuseppe Marotta
Università degli Studi di Modena e Reggio Emilia

  1. The Specialisation of EU Regions in Fast Growing and Key Enabling Technologies By Rinaldo Evangelista; Valentina Meliciani; Antonio Vezzani
  2. Employee Representation Legislations and Innovation By Filippo Belloc
  3. Comparing small area techniques for estimating poverty measures By Federico Crescenzi; Gianni Betti; Francesca Gagliardi
  4. Housing equity, residential mobility and commuting By Bloze, Gintautas; Skak, Morten
  5. The Effectiveness of Early Vacancy Information in the Presence of Monitoring and ALMP By Schmidl, Ricarda
  6. The Effect of Unemployment Benefit Generosity on Unemployment Duration: Quasi-Experimental Evidence from Slovenia By Vodopivec, Matija; Laporsek, Suzana; Dolenc, Primož; Vodopivec, Milan
  7. Age Features of a Happy Life in Russia and Europe: An Econometric Analysis of Socio-Economic Determinants By Elena Kopnova; Lilia Rodionova
  8. Have Inflation Targeting and EU labour Immigration Changed the System of Wage Formation in Norway By Gjelsvik, Marit Linnea; Nymoen, Ragnar; Sparrman, Victoria
  9. The Heterogeneity of Foreign Direct Investors: Linking Affiliates to Parent Productivity By Giorgia Giovannetti; Enrico Marvasi; Giorgio Ricchiuti
  10. Long-Term Consequences of Access to Well-Child Visits By Bütikofer, Aline; Loken, Katrine Vellesen; Salvanes, Kjell G.
  11. Social Assistance in Five Countries in North-Western Europe By Hansen, Hans; Schultz-Nielsen, Marie Louise
  12. Educational Attainment and Labor Market Performance: An Analysis of Immigrants in France By Mehtap Akguc; Ana Ferrer
  13. Are Working Time Accounts Beneficial for German Establishments? By Bellmann, Lutz; Hübler, Olaf
  14. Economy-wide rebound effects from an increase in efficiency in the use of energy: the Italian case By G. Garau; G. Mandras
  15. Happiness, Inequality and Relative Concerns in European Countries By AMENDOLA, Adalgiso; DELL'ANNO, Roberto; PARISI, Lavinia
  16. The Economic Impact of Increasing Public Support to ICT R&D: A Modelling Approach By Martin Aarøe Christensen
  17. New Job Matches and Their Stability Before and During the Crisis By Nagore García, Amparo; van Soest, Arthur
  18. EU Petroleum Refining Fitness Check: Impact of EU Legislation on Sectoral Economic Performance By Ruslan Lukach; Robert Marschinski; Dilyara Bakhtieva; Marian Mraz; Umed Temurshoev; Peter Eder; Luis Delgado Sancho
  19. Does educational management model matter? New evidence for Spain by a quasiexperimental approach By María-Jesús Mancebón; Domingo P. Ximénez-de-Embún; Mauro Mediavilla; José-María Gómez-Sancho
  20. Kindergarten for All: Long-run Effects of a Universal Intervention By Drange, Nina; Havnes, Tarjei; Sandsør, Astrid M. J.
  21. Does improving Public Transport decrease Car Ownership? Evidence from the Copenhagen Metropolitan Area By Ismir Mulalic; Ninette Pilegaard; Jan Rouwendal
  22. It's cold inside – energy poverty in Poland By Agata Miazga; Dominik Owczarek
  23. Matching research and innovation policies in EU countries By Reinhilde Veugelers
  24. The LEADER process as a European policy for local development: A comparison of the implementation in three European member states By Berriet-Solliec, Marielle; Laidin, Catherine; Lépicier, Denis; Pham, Hai Vu; Pollermann, Kim; Raue, Petra; Schnaut, Gitta

  1. By: Rinaldo Evangelista (University of Camerino); Valentina Meliciani (University of LLUIS Carli); Antonio Vezzani (European Commission – JRC - IPTS)
    Abstract: In the context of the Europe 2020 objective of establishing in the EU a smart, sustainable and inclusive economy, European regions have been called to design and implement national and regional 'Research and Innovation Strategies for Smart Specialisation' (RIS3). The rationale behind the concept of smart specialisation is that, in a context of global competition for talent and resources, most regions can only acquire a real competitive edge by finding niches or by mainstreaming new technologies into traditional industries and exploiting their ‘smart’ regional potential. Although the most promising way for a region to promote its knowledge-based growth is to diversify into technologies, products and services that are closely related to existing dominant technologies and the regional skills base, the European Commission puts special emphasis on a set of technologies labelled as 'Key Enabling Technologies' (KETs). Despite the great emphasis on KETs, there is only very limited evidence on the capability of EU regions to specialise in these fields and there are no studies directly investigating the actual impact of these technologies on regional innovation and economic growth. This report aims at filling these gaps by: i) looking at the relationship between KETs and 'Fast Growing Technologies' (FGTs); ii) providing empirical evidence on the EU regional specialisation in KETs and FGTs; iii) relating technological specialisation to regional innovation and economic growth. In particular, the report aims at answering these questions: 1) Which technologies have emerged as the fastest growing ones in the recent decades? 2) Is there a relationship between fast growing technologies and KETs? 3) Which regions are specialised in FGTs and KETs? 4) Are there convergence and polarization phenomena observable in the evolution of EU regions’ innovative activities in fast growing technologies and KETs? 5) Do EU regions specialized in fastest growing technological fields and key enabling technologies exhibit higher innovation and economic performances? The main results of the report can be summarised as follows. First, only a small share of KETs are also fast growing technologies, although the degree of overlapping between KETs and FGTs varies substantially across different KETs fields. Second, while KETs are concentrated in Central Europe, FGTs prevail in Scandinavian countries and the UK. Third, while there is evidence of some regional convergence in KETs and, to a less extent, in FGTs, spatial correlation increases over time, showing that diffusion often occurs across contiguous regions. Finally, the results of the estimations of the effects of FGTs and KETs on innovation (patents) and economic (GDP per capita) growth show that only specialisation in KETs directly affects economic growth, while specialisation in FGTs has an impact on growth only indirectly, that is through its impact on regions’ innovation performances. Overall, these results confirm the pervasive and enabling role of KETs pointing to the importance for European regions to target these technologies as part of their RIS3 strategies.
    Keywords: region, gorwht, innovation
    Date: 2015–11
  2. By: Filippo Belloc
    Abstract: We analyse how countries' innovation outcomes are affected by national legislations of worker participation to corporate governance. We develop a model of employee representation laws (ERL) and innovation in the presence of incomplete labour contracts and predict heterogeneous ERL effects across different systems of dismissal regulation. We then perform a panel regression analysis, exploiting 2-digit panel data for 21 manufacturing sectors of USA, UK, India, France and Germany, over the 1977-2005 period. We find that ERL effects on aggregate innovation output are positive, statistically significant and higher in magnitude where national labour laws impose significant ring costs to the firm with respect to institutional settings in which ring costs are low or absent. These results are robust to possible technology selection dynamics, endogeneity and institutional changes in the legal system of patent protection. We also estimate ERL effects on innovation conditional on ring costs at an industry level and show that the impact of ERL is relatively larger in those sectors where the human capital contribution to production is higher. Our results have relevant implications for the optimal design of employee representation legislations.
    Keywords: employee representation law, innovation, panel data
    JEL: K31 O31 P51
    Date: 2015–11
  3. By: Federico Crescenzi; Gianni Betti; Francesca Gagliardi
    Abstract: The Europe 2020 Strategy has formulated key policy objectives or so-called “headline targets” which the EU as a whole and Member States are individually committed to achieving by 2020. One of the five headline targets is directly related to key quality aspects of life, namely social inclusion; within these targets, the EU-SILC headline indicators at-risk-of-poverty or social exclusion and its components will be included in the budgeting of structural funds, one of the main instruments through which policy targets are attained. For this purpose, DG Regional Policy of the European Commission is aiming to use sub-national/regional level data (NUTS 2). Starting from this, the focus of the present paper is on the “regional dimension” of well-being. In fact, we compare two small area techniques, namely the cumulation and the spatial EBLUP (SEBLUP), on the basis of EU-SILC data from Austria and Spain
    Keywords: small area estimation; poverty; inequality; SILC
    JEL: C21 I32 C23
    Date: 2015–12
  4. By: Bloze, Gintautas (Department of Leadership and Corporate Strategy); Skak, Morten (Department of Business and Economics)
    Abstract: Highly productive economies require a flexible labor force with workers that move in accordance with the changing demand for goods and services. In times with falling housing prices, home owning workers’ mobility may be hampered by a lock-in effect from low and negative equity. This paper explores the effect of housing equity on homeowners’ residential mobility and their commuting pattern. We merge administrative registers for the Danish population and properties and get highly reliable micro data for our analysis. We compare the lock-in of homeowners with high LTV ratios under a booming economy with the lock-in when the economy is in recession. Low and negative equity reduces residential mobility, with similar relative effects in boom and slump periods. The negative impact on labor market flexibility from low equity lock-in is stronger when the economy is in recession and housing prices are falling. We show that this is mitigated by a comparatively high propensity to commute for locked-in homeowners when the labor market tightens.
    Keywords: Mobility; Commuting; LTV ratio; Home equitiy; Mortgage lock-in
    JEL: G21 J61 R23 R51
    Date: 2015–12–15
  5. By: Schmidl, Ricarda (University of Mannheim)
    Abstract: This paper studies the effectiveness of vacancy information from the public employment services (PES) in Germany, focussing on vacancy information obtained early in the unemployment spell. As in many other countries, the German activation practice combines information provision with monitoring to increase the willingness to apply. In case of a failed application, unemployed may participate in more intensive active labor market programs (ALMP). Exposure to monitoring or participation in ALMP is likely to confound the effect of information; our aim is to disentangle the different effects. Based on a flexible propensity score matching approach, we find that vacancy information increases the entry rate into unemployment predominantly by jobs mediated via the PES. Monitoring seems to reinforce this effect while limiting the crowding out of transitions made through other channels. In case of continued unemployment, early vacancy information reduces the participation rate in ALMP for some labor market groups. This is however not found to mediate the effect on employment transitions. We hence suggest that early vacancy information may increase the cost-effectiveness of the overall activation process even in the case of unsuccessful applications. Slight negative effects on employment quality seem to be driven by a combination of vacancy quality and monitoring.
    Keywords: unemployment, vacancy information, public employment services, active labor market programs
    JEL: J08 J64
    Date: 2015–12
  6. By: Vodopivec, Matija (International School for Social and Business Studies, Celje, Slovenia); Laporsek, Suzana (University of Primorska); Dolenc, Primož (University of Primorska); Vodopivec, Milan (International School for Social and Business Studies, Celje, Slovenia)
    Abstract: The paper analyses the effects of a 2011 increase in the unemployment benefit replacement rate on the job-finding rate of Slovenian benefit recipients. Using registry data on the universe of Slovenian unemployment benefit recipients, we exploit legislative changes that selectively increased the replacement rates for certain groups of workers while leaving them unchanged for others. Applying this quasi-experimental approach, we find that increasing the replacement rate significantly decreased the hazard rate of the transition from unemployment to employment, with an implied elasticity of the hazard rate with respect to benefit replacement rate being 0.7 to 0.9. The results also show that the increase of the unemployment benefit replacement rate does not affect the job-finding probability of jobseekers whose reason for unemployment is employer exit, and that the effects of the increase of replacement rate are present only upon exit to employment and not to inactivity.
    Keywords: unemployment insurance, unemployment benefit replacement rate, job-finding rate
    JEL: J64 J65
    Date: 2015–12
  7. By: Elena Kopnova (National Research University Higher School of Economics); Lilia Rodionova (National Research University Higher School of Economics)
    Abstract: A comparative analysis of the age impact on happiness in Russia and European countries was conducted. The European Social Survey data in 2012 for 29 countries were used. On the basis of an ordered logistic regression, a U-shape relationship between age and happiness was obtained for some of the analysed countries. By using cluster analysis, the countries were divided into 3 groups, in which the age effect varies greatly. In the counties of group 1 (for example, Iceland and Norway) happiness did not change at any age or increase smoothly in old age. Group 2 (Germany and France) had a clear U-shaped age-happiness form. Russia and some counties of former Soviet Union: Ukraine, Lithuania and Estonia were analysed in group 3, where the level of happiness decreased significantly in old age (over 60). In some countries (Belgium, Switzerland, Cyprus, Denmark, Finland, Israel, Italy, Sweden) all people were happy, regardless of age and the assumption of age-happiness U-shape relation was not found.The socio-economic determinants of happiness were also analysed in different age groups. Income satisfaction and subjective health were the more significant characteristics.
    Keywords: satisfaction, happiness, econometric modelling, age groups.
    JEL: C35 C38 I31
    Date: 2015
  8. By: Gjelsvik, Marit Linnea (Statistics Norway); Nymoen, Ragnar (Dept. of Economics, University of Oslo); Sparrman, Victoria (Statistics Norway)
    Abstract: Collective agreements have played a central role in the system of wage formation in Norway for more than fifty years. Although the degree of coordination achieved has been variable, pattern wage bargaining has been a mainstay of the system. We investigate the degree of invariance in wage formation in Norway with respect to two recent structural changes: the transition towards inflation targeting in monetary policy and an unprecedented surge in labour supply due to higher immigration rates. We report empirical results that support the view that a semi-permanent high immigration may affect wages negatively in a significant way. However we do not find evidence that the stability of the arbitration system, and in particular the wage-bargaining pattern, has been changed by labour immigration or by inflation targeting monetary policy. An explanation of why we do not find evidence of structural changing effects of the transition of monetary policy, can be found in the fact that the wage arbitration system itself has syncronized the inflation expectations of the social partners. In that analysis, inflation targeting became a new layer of nominal stabilization, on top of the existing one.
    Keywords: Inflation modelling; pattern wage bargaining; inflation targeting; dynamic econometrics; cointegration; small open economy
    JEL: C52 E24 E31 E37 J31
    Date: 2015–10–08
  9. By: Giorgia Giovannetti (Dipartimento di Scienze per l'Economia e l'Impresa); Enrico Marvasi; Giorgio Ricchiuti (Dipartimento di Scienze per l'Economia e l'Impresa)
    Abstract: We investigate the heterogeneity within the group of foreign direct investors and the relation between affiliates characteristics and parent productivity. Using data on Italian firms, we show that foreign direct investors differ in their productivity level according to their characteristics and their investment decisions. Larger parents by employment or sales tend to be more productive, to have more affiliates and to invest in a higher number of destinations. Focusing on manufacturing firms, we show econometrically that having more and larger affiliates in rich countries leads to higher ex-post productivity. In particular, investing in high income countries or both in high and low income countries is associated with a subsequent productivity premium \textit{vis-\`a-vis} low income countries investors, especially for larger parents. Low income countries investors are found to be relatively more productive when operating in low technology sectors, while the opposite applies to high income countries investors.
    Keywords: foreign direct investment, heterogeneous firms, total factor productivity, multinationals, foreign affiliates
    JEL: F12 F14 F21
    Date: 2015
  10. By: Bütikofer, Aline (Norwegian School of Economics); Loken, Katrine Vellesen (University of Bergen); Salvanes, Kjell G. (Norwegian School of Economics)
    Abstract: A growing literature documents the positive long-term effects of policy-induced improvements in early-life health and nutrition. However, there is still scarce evidence on early-life health programs targeting a large share of the population and the role of such programs in increasing intergenerational mobility. This paper uses the rollout of mother and child health care centers in Norway, which commenced in the 1930s, to study the long-term consequences of increasing access to well-child visits. These well-child visits included a physical examination and the provision of information about adequate infant nutrition. Our results indicate that access to mother and child health care centers had a positive effect on education and earnings: access in the first year of life increased the completed years of schooling by 0.15 years and earnings by two percent. The effects were stronger for children from a low socioeconomic background. In addition, we find that individuals suffer from fewer health risks at age 40 and positive effects on adult height, which support the fact that better nutrition within the first year of life is the likely mechanism behind our findings. While there is increasing knowledge on the benefits of various types of early childhood programs, the costs are often neglected, making it hard to compare different programs. We add to this by showing that investments in mother and child health care centers pass a simple cost-benefit analysis.
    Keywords: well-child visits, early-life interventions, health and inequality
    JEL: I14 I15 I18 I20 J30
    Date: 2015–12
  11. By: Hansen, Hans (Rockwool Foundation Research Unit); Schultz-Nielsen, Marie Louise (Rockwool Foundation Research Unit)
    Abstract: In this paper, we calculate the disposable incomes in 2012 of three selected family types receiving social assistance in five countries in north-western Europe. We also calculate the net replacement rates for families receiving social assistance, calculated on the basis of the disposable incomes of 'average workers' in the five countries, as reported by the OECD. The results show that the Danish social assistance benefits are the highest, or among the highest, of the five countries; Swedish benefits are the lowest or among the lowest, but very much in line with those in Germany. The benefits in the United Kingdom for families with children are in the middle of the group, whereas the UK's benefits for single persons without children are among the lowest. In the Netherlands the picture is more mixed; for single persons without children the benefits are among the highest, for lone parents they are around the middle, and for couples with children the benefits are comparatively low.
    Keywords: unemployment, net replacement rate, social assistance benefits
    JEL: J38 J65 I38
    Date: 2015–12
  12. By: Mehtap Akguc (Research and Finance, Centre for European Policy Studies); Ana Ferrer (Department of Economics, University of Waterloo)
    Abstract: Using a recent survey of immigrants to France, we provide a detailed analysis of the educational attainment and labor market performance of various sub-population groups in France. Our results indicate that immigrants to France are less educated than the native born and that these differences can be tracked down to differences in socioeconomic background for most groups of immigrants. Similarly, there is a significant wage gap between immigrant and native-born workers regardless of gender, but this is reduced and sometimes disappears after correcting for selection into employment. In most cases the remaining differences in education and labor market outcomes seem related to the area of origin of the immigrant as well as where the education of the immigrant is obtained.
    JEL: F22 J61
    Date: 2015–02
  13. By: Bellmann, Lutz (Institute for Employment Research (IAB), Nuremberg); Hübler, Olaf (Leibniz University of Hannover)
    Abstract: This contribution investigates whether working time accounts are beneficial for the performance of German establishments. Based on the representative German Establishment Panel of the Institute for Employment Research during the period 2008-2013, effects on productivity, wages, sales, firm size, investments, further training, labor mobility, working hours, operating surplus and profits as performance indicators are estimated. Heterogeneity and robustness are investigated by a subgroup analysis where we distinguished between establishments with a high and a low share of qualified workers, between firms with strong and weak sales fluctuations. Additionally, different lengths of the agreed compensation period and reasons for longer time out periods of the employees are considered. Unobserved firm effects as well as interdependencies between important performance indicators and working time accounts are analyzed. OLS estimates, Lewbel's instrumental estimator and IV panel approaches are applied. As major results we find that productivity and investments are positively correlated with working time accounts. No significant effects of working time accounts can be detected on wages, the number of employees and operating surplus of IV panel estimates. However, on average, we find a tendency towards negative effects on profits. This result is less likely in establishments with a high share of skilled workers. Under strong sales fluctuations we find positively significant on the operating surplus. These mixed results hint to a conflict between the employers and employees interests concerning working time accounts that result in compromise solutions.
    Keywords: flexible working time, working time accounts, establishments, productivity, wages, labor mobility, operating surplus, profits, share of qualified workers, sales fluctuations, compensation period
    JEL: C22 D21 J21 J22
    Date: 2015–12
  14. By: G. Garau; G. Mandras
    Abstract: The International Energy Agency (IEA, 2009) suggests the importance of efficiency improvement to reduce energy use and, within the European Union, one of the targets for member states is to reduce energy consumption by 20% through increased energy efficiency (European Commission, 2009). Energy efficiency improvement has the unquestionable benefits to reduce the price of energy services. However, it is still under debate the extent to which, improvement in the productivity of energy, is effective in terms of reducing the consumption of energy and thus the associated negative externalities (e.g., carbon dioxide emissions, CO2). Thus, policy makers are particularly interested to determine the size of the energy rebound effect. In this paper, we attempt to quantify the magnitude of the general equilibrium rebound effects from an increase in energy efficiency in the industrial use of energy in Italy. To this end, we use a large-scale numerical dynamic general equilibrium model calibrated using the Italian Social Accounting Matrix for the year 2010.
    Keywords: rebound effect, energy efficiency, CGE model
    JEL: C68 D57 D58 Q43 Q48
    Date: 2015
  15. By: AMENDOLA, Adalgiso (CELPE - Centre of Labour Economics and Economic Policy, University of Salerno - Italy); DELL'ANNO, Roberto (CELPE - Centre of Labour Economics and Economic Policy, University of Salerno - Italy); PARISI, Lavinia (CELPE - Centre of Labour Economics and Economic Policy, University of Salerno - Italy)
    Abstract: Absolute and relative levels of income as well as income inequality are regarded as determinants of individual happiness. The paper proposes a novel set of multidimensional indexes to control for the effect of the main dimensions of relative deprivation on happiness. We decompose the overall distribution of income into “between” and “within” reference groups with respect to inequality finding that inequality between reference groups does not affect happiness and that within group inequality negatively affects individual happiness. We interpret these results as an extension of social comparison theory and a validation of the hypothesis that people perceive the income of their reference group in terms of their own future prospects. The analysis is based on the European Quality of Life Survey.
    Keywords: Happiness; Subjective well-Being; Life satisfaction; Inequality; Deprivation; Multidimensional index; Reference groups; Social comparison theory
    JEL: D63 I31 I32
    Date: 2015–12–30
  16. By: Martin Aarøe Christensen (European Commission – JRC - IPTS)
    Abstract: The report provides a quantitative analysis of the economic impacts of national public support to ICT R&D in the European Union, considering a number of policy scenarios covering different amounts of public spending, policy instruments and sources of financing. For this purpose we use a macroeconomic model with ICT and R&D driven endogenous growth. The model accommodates a range of policy instruments that may be used to stimulate R&D activity (ICT or non-ICT) in the economy, and it captures multiple channels through which R&D activity affects the economy. The policy scenarios are simulated with the model. The simulation exercise provides some preliminary evidence that an increase in public expenditure to support ICT R&D might have a significantly positive impact on ICT sector BERD as well as on economic growth and employment in the EU. It also shows that the strength and in some cases the sign of this impact can be influenced by policy instruments and financing source. Additional work is needed to gain further insights on the sensitivity of these results to the assumptions and parameter settings used in the model.
    Keywords: Economic Modelling, R&D, ICT, Endogenous Growth
    JEL: C68 O30 O52 H20
    Date: 2015–12
  17. By: Nagore García, Amparo (LISER (CEPS/INSTEAD)); van Soest, Arthur (Tilburg University)
    Abstract: Using administrative records data from the Spanish Social Security Administration, we analyse the nature and stability of job matches starting in two different years: during the economic boom in 2005, and during the recession in 2009. We compare the individual and job and firm characteristics in the two samples and estimate Mixed Proportional Hazard Models distinguishing job-to-job, job-to-unemployment, and other transitions. We find that job-to-job transitions are pro-cyclical, while unemployment transitions are counter-cyclical. Individuals most affected by the economic crisis tend to be young males, living in regions with high unemployment rates, with low qualifications and working in manual occupations (particularly construction), and (especially Spanish speaking) immigrants. The positive relation between job stability and firm size is stronger during the recession.
    Keywords: job tenure, business cycle, employment transitions, destination states, job-separation rate
    JEL: J64 C41 E32
    Date: 2015–12
  18. By: Ruslan Lukach (European Commission – JRC - IPTS); Robert Marschinski (European Commission – JRC - IPTS); Dilyara Bakhtieva (European Commission – JRC - IPTS); Marian Mraz (European Commission – JRC - IPTS); Umed Temurshoev (European Commission – JRC - IPTS); Peter Eder (European Commission – JRC - IPTS); Luis Delgado Sancho (European Commission – JRC - IPTS)
    Abstract: This report presents the results of the quantitative assessment of the impact on the petroleum refining sector of legislative measures, identified in the process of European Commission's analysis and stakeholder consultations as being of significant relevance for petroleum refineries, and as such included in the mandate of the fitness check. This quantitative assessment took into account the impact of the legislation on costs and revenues of the EU petroleum refining industry and therefore on its capacity to remain internationally competitive. This analysis, mostly of a quantitative nature, was accompanied where possible and relevant by a qualitative assessment in accordance with the Commission's general approach to fitness checks . In particular, the report analysed how coherently and consistently the EU legislation, identified as relevant for the sector, works together, whether it is effective and efficient, and whether it is associated with excessive regulatory burdens, overlaps, gaps, inconsistencies or obsolete measures. Since this fitness check addressed a specific industry sector rather than a policy area, it had a specific focus on the cumulative impact, effectiveness, efficiency and coherence of the measures with respect to the oil refining sector. The analysis in this report is retrospective and concentrated on the impact of the relevant legislation on the petroleum refining sector in the period between 2000 and 2012.
    Keywords: petroleum refining, competitiveness, regulatory fitness check, EU legislation
    Date: 2015–12
  19. By: María-Jesús Mancebón (University of Zaragoza); Domingo P. Ximénez-de-Embún (University of Zaragoza); Mauro Mediavilla (University of Valencia & IEB); José-María Gómez-Sancho (University of Zaragoza)
    Abstract: One of the subjects that has focused the empirical work of many educational economists has been the public funding of privately run schools. In this paper we use a quasiexperimental approach in order to evaluate the effect of attending a Spanish publicly subsidised private school on some of the educational skills promoted by Spanish primary schools. Our results underline the existence of a certain advantage of the publicly subsidised private school in some educational competencies, in particular those related to the dominance of abilities in solving problems and questions related to scientific skills.
    Keywords: School choice, propensity score matching, hierarchical linear models, unobservable variables bias, sciences and foreign language (English) skills, primary schools
    JEL: I21 I29
    Date: 2015
  20. By: Drange, Nina (Statistics Norway); Havnes, Tarjei (Dept. of Economics, University of Oslo); Sandsør, Astrid M. J. (Dept. of Economics, University of Oslo)
    Abstract: Theory and evidence point towards particularly positive effects of high-quality child care for disadvantaged children. At the same time, disadvantaged families often sort out of existing programs. To counter differences in learning outcomes between children from different socioeconomic backgrounds, governments are pushing for universal child care. However, it is unclear how effective programs with universal participation may be at addressing the needs of disadvantaged children. We provide evidence on the long-run effect on schooling of mandating kindergarten at age 5–6. Our identifying variation comes from a reform that lowered school starting-age from 7 to 6 in Norway in 1997. The new program was designed as a low intensity kindergarten program, similar to voluntary child care programs available before mandating. Our precise DD estimates reveal hardly any effect, both overall, across subsamples, and over the grading distribution. A battery of specification checks support our empirical strategy.
    Keywords: kindergarten; early childhood intervention; distributional effects; difference-in- differences; child care; child development
    JEL: H40 I28 J13
    Date: 2015–08–31
  21. By: Ismir Mulalic (Technical University Denmark, Denmark); Ninette Pilegaard (Technical University Denmark, Denmark); Jan Rouwendal (VU University Amsterdam, the Netherlands)
    Abstract: Car ownership is lower in urban areas, which is probably related to the availability of better public transport. Better public transport thus may offer the possibility to relieve the many problems (congestion, health, and parking) associated with the presence of cars in urban areas. To investigate this issue, we develop and estimate a model for the simultaneous choice of a residential area and car ownership. The model is estimated on Danish register data for single-earner and dual-earners households in the greater Copenhagen metropolitan area. We pay special attention to accessibility of the metro network which offers particularly high quality public transport. Simulations based on the estimated model show that for the greater Copenhagen area a planned extension of the metro network decreases car ownership by 2-3%. Our results suggest also a substantial increase in t he interest for living in areas close to the metro network, that affects the demographic composition of neighbourhoods.
    Keywords: car ownership; public transport; residential sorting
    JEL: R4 R1 D1
    Date: 2015–12–24
  22. By: Agata Miazga; Dominik Owczarek
    Abstract: The aim of this paper is to present a statistical measure of energy poverty in Poland. This is the first research for Poland which is strictly based on the methodology applied in the United Kingdom - the only country with a statutory definition of energy poverty. We calculate three measures: absolute – 10% of income, modified absolute – 13% of income and relative - Low Income High Costs (LIHC). The results are compared with a subjective energy situation assessment made by households. Moreover, we answer the question to what extent energy poverty coincides with income poverty. After examining the different variants of the definition, we recommend using the relative LIHC definition in Poland. According to this measure, 17% of the Polish population (6.44 million people) are exposed to energy poverty, especially occupants of detached houses, inhabitants of rural areas, households living on non-earned sources, single parents and married couples with at least 2 children.
    Keywords: energy poverty, income poverty, energy expenditure
    JEL: I32 Q40
    Date: 2015–11
  23. By: Reinhilde Veugelers
    Abstract: Highlights The European Union has prioritised the pursuit of innovation based growth and targeting of resources to promote research and development, but performance on innovation remains weak. With the lack of results comes fatigue, waning interest and mounting criticism about policy. Should the EU abandon its ambition to become the most innovative region in the world? We examine EU member state research and innovation policies. We assess whether the deployment of innovation policy instruments in EU countries matches their innovation capacity performance relative to other EU countries. We find a relative homogeneity of policy mixes in EU countries, despite the fairly wide and stable differences in their innovation capacities. Our analysis therefore provides a rationale for a more comprehensive review of innovation policy mixes to assess their adequacy in addressing country specific innovation challenges.
    Date: 2015–12
  24. By: Berriet-Solliec, Marielle; Laidin, Catherine; Lépicier, Denis; Pham, Hai Vu; Pollermann, Kim; Raue, Petra; Schnaut, Gitta
    Abstract: New governance structures, meant to empower local decision makers, are supported by some policies introduced by the European Commission. LEADER, from rural development policy, is among these approaches. Nevertheless, these new policies are implemented in very different multi-level governance contexts in the European nation states. We question in how far the institutional differences on the different levels affect the implementation of LEADER on the local level. We thereby hope to contribute to a better understanding of the causes and consequences of differences in the impacts and effectiveness of the LEADER approach as has been documented thus far by research analyses. In our TRUSTEE research project we concentrate on ten cases in France, Germany and Italy. We describe the three different administration systems and the different types of RDP-implementation. Based on analyses of documents and interviews with stakeholders, we then analyze the possible relation of these institutional differences to the LEADER implementation at a local level.
    Keywords: rural development,multi-level governance,European policy,decentralization
    JEL: H11 R58
    Date: 2015

This nep-eur issue is ©2016 by Giuseppe Marotta. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.