nep-eur New Economics Papers
on Microeconomic European Issues
Issue of 2022‒01‒31
23 papers chosen by
Giuseppe Marotta
Università degli Studi di Modena e Reggio Emilia

  1. Reforms of an Early Retirement Pathway in Germany and Their Labor Market Effects By Regina T. Riphahn; Rebecca Schrader
  2. Reforms of an Early Retirement Pathway in Germany and Their Labor Market Effects By Riphahn, Regina T.; Schrader, Rebecca
  3. Gender Norms and the Motherhood Employment Gap By Moriconi, Simone; Rodríguez-Planas, Núria
  4. The impact of robots on labour market transitions in Europe By Piotr Lewandowski; Karol Madoń; Ronald Bachmann; Myrielle Gonschor
  5. Joint Retirement: Evidence on the Heterogeneity of Spousal Effects By Sefane Cetin
  6. Working more and less hours, profiling old European workers during first wave of COVID-19 pandemic, evidence from SHARE data By Tavares, Aida Isabel
  7. Being Your Own Boss and Bossing Others: The Moderating Effect of Managing Others on Work Meaning and Autonomy for the Self-Employed and Employees By Nikolova, Milena; Nikolaev, Boris; Boudreaux, Christopher
  8. Who stays and who leaves? Immigration and the selection of natives across locations By Javier Ortega; Gregory Verdugo
  9. Labor Market Concentration and Stayers' Wages: Evidence from France By Bassanini, Andrea; Batut, Cyprien; Caroli, Eve
  10. A Year of Pandemic: Levels, Changes and Validity of Well-Being Data from Twitter. Evidence from Ten Countries By Sarracino, Francesco; Greyling, Talita; O'Connor, Kelsey J.; Peroni, Chiara; Rossouw, Stephanié
  11. The Gender Application Gap: Do Men and Women Apply for the Same Jobs? By Fluchtmann, Jonas; Glenny, Anita Marie; Harmon, Nikolaj; Maibom, Jonas
  12. E-Learning Engagement Gap during School Closures: Differences by Academic Performance By Amer-Mestre, Josep; Ayarza-Astigarraga, Alaitz; Lopes, Marta C
  13. A Costly Commitment: Populism, Government Performance, and the Quality of Bureaucracy By Luca Bellodi; Massimo Morelli; Matia Vannoni
  14. Campaign Spending in Local Elections: the Effects of Public Funding By Bruno Carvalho
  15. Trade, Human Capital, and Income Risk By Deng, Liuchun; Krishna, Pravin; Senses, Mine Zeynep; Stegmaier, Jens
  16. Majority principle and indeterminacy in German elections By Salvatore Barbaro; Nils D. Steiner
  17. Minimum Wages and Insurance within the Firm By Adamopoulou, Effrosyni; Manaresi, Francesco; Rachedi, Omar; Yurdagul, Emircan
  18. The impact of rent control: Investigations on historical data in the city of Lyon By Loïc Bonneval; Florence Goffette-Nagot; Zhejin Zhao
  19. Careful What You Say: The Effect of Manipulative Information on the 2013 Czech Presidential Run-off Election By Guzi, Martin; Mikula, Stepan
  20. Does Multitasking Affect Students' Academic Performance? Evidence from a Longitudinal Study By Amez, Simon; Baert, Stijn; Heydencamp, Emily; Wuyts, Joey
  21. Joint estimation of time and risk preferences using a representative sample of UK households' subjective perceptions of time By Aungles, Aidan
  22. Trends in Inequality of Opportunity in health over the life cycle: the role of early-life conditions By Cristina Elisa Orso; Matija Kovacic
  23. A Multivariate Dependence Analysis for Electricity Prices, Demand and Renewable Energy Sources By Fabrizio Durante; Angelica Gianfreda; Francesco Ravazzolo; Luca Rossini

  1. By: Regina T. Riphahn; Rebecca Schrader
    Abstract: We investigate the unemployment pathway to retirement in Germany and study the causal effects of two early retirement reforms. Reform 1 (NRA) increased normal retirement age stepwise from 60 to 65. Simultaneously, it became possible to use early retirement with benefit discounts. Reform 2 (ERA) increased the age of early retirement stepwise from 60 to 63. We investigate behavioral responses to the reforms using administrative data and difference-indifferences strategies. We find strong and significant causal effects of both reforms. Individuals postponed retirement, stayed employed longer, postponed unemployment, and shifted to alternative pathways into retirement. The overall use of the retirement system declined by about 1.5 and 2 months per person after each of the two reforms. Individuals with low pension wealth and those who were affected immediately by the reform responded more strongly.
    Keywords: early retirement, program substitution, labor force participation, causal effects, difference-in-differences, effect heterogeneity
    JEL: H55 J26 C21
    Date: 2021
  2. By: Riphahn, Regina T. (University of Erlangen-Nuremberg); Schrader, Rebecca (University of Erlangen-Nuremberg)
    Abstract: We investigate the unemployment pathway to retirement in Germany and study the causal effects of two early retirement reforms. Reform 1 (NRA) increased normal retirement age stepwise from 60 to 65. Simultaneously, it became possible to use early retirement with benefit discounts. Reform 2 (ERA) increased the age of early retirement stepwise from 60 to 63. We investigate behavioral responses to the reforms using administrative data and difference-in-differences strategies. We find strong and significant causal effects of both reforms. Individuals postponed retirement, stayed employed longer, postponed unemployment, and shifted to alternative pathways into retirement. The overall use of the retirement system declined by about 1.5 and 2 months per person after each of the two reforms. Individuals with low pension wealth and those who were affected immediately by the reform responded more strongly.
    Keywords: difference-in-differences, causal effects, labor force participation, program substitution, early retirement, effect heterogeneity
    JEL: H55 J26 C21
    Date: 2021–12
  3. By: Moriconi, Simone (IÉSEG School of Management); Rodríguez-Planas, Núria (Queens College, CUNY)
    Abstract: Using individual-level data from the European Social Survey, we study the relevance of gender norms in accounting for the motherhood employment gap across 186 European NUTS2 regions (over 29 countries) for the 2002-2016 period. The gender norm variable is taken from a question on whether "men should have more right to a job than women when jobs are scarce" and represents the average extent of disagreement (on a scale 1 to 5) of women belonging to the "grandmothers" cohort. We address the potential endogeneity of our gender norms measure with an index of the degree of reproductive health liberalization when grandmothers were 20 years old. We also account for the endogeneity of motherhood with the level of reproductive health liberalization when mothers were 20 years old. We find a robust positive association between progressive beliefs among the grandmothers' cohort and mothers' likelihood to work while having a small child (0 to 5 years old) relative to similar women without children. No similar association is found among men. Our analysis underscores the role of gender norms and maternal employment, suggesting that non-traditional gender norms mediate on the employment gender gap mainly via motherhood.
    Keywords: gender norms, motherhood employment gap, instrumenting for motherhood
    JEL: J16 J22
    Date: 2021–11
  4. By: Piotr Lewandowski; Karol Madoń; Ronald Bachmann; Myrielle Gonschor
    Abstract: We study the effects of robot exposure on worker flows in 16 European countries. Overall, we find small negative effects on job separations and small positive effects on job findings. Labour costs are shown to be a major driver of cross-country differences: in countries with lower labour costs, robot exposure had more positive effects on hirings and more negative effects on separations. These effects were particularly pronounced for workers in occupations intensive in routine manual or routine cognitive tasks, but were insignificant in occupations intensive in non-routine cognitive tasks. For young and old workers in countries with lower labour costs, robot exposure had a beneficial effect on transitions. Our results imply that robot adoption increased employment and reduced unemployment in most European countries, mainly through lower job separation rates.
    Keywords: robots, technological change, tasks, labour market effects, Europe
    JEL: J23 J24 O33
    Date: 2022–01
  5. By: Sefane Cetin (UNIVERSITE CATHOLIQUE DE LOUVAIN, Center for Operations Research and Econometrics (CORE))
    Abstract: Evidence abounds to suggest the existence of retirement spillovers among spouses. Using the Survey of Health and Retirement in Europe (SHARE), this paper not only confirms the existence of joint retirement behavior among dual-worker couples around Europe, but also shows that the intensity of retirement coordination varies a lot. The results of the paper are essentially five fold. First, among spouses there is a gender asymmetry: wives are more likely to be influenced by their husbands' decision to retire. Second, a higher labour market attachment (proxied by education, income quartile or self reported quality of work) translates into a lower propensity of retirement coordination. Especially, for men who belong to the highest income quartile or education level there is absence of joint retirement. Third, being a secondary earner increases the propensity of retirement coordination. Fourth, higher age differences between couples generally reduces joint retirement, but in interaction with eligibility rules. Five, there is evidence on the enhancing role of converging preferences in terms of activities practiced by both partners, whereas convergence in philosophical views or personality traits do not have any significant effect. Among the traditionally discussed determinants of joint retirement, leisure complementarities are important for couples' retirement incentives, nevertheless, they are mostly dominated by income effect and feasibility of joint retirement (eligibility for both partners to retire).
    Keywords: Retirement, pensions, labour supply of couples
    JEL: C23 C26 D10 H31 J14 J16 J26
    Date: 2021–12–22
  6. By: Tavares, Aida Isabel
    Abstract: This study contributes to the discussion about the impact of the COVID-19 pandemic on the working hours and on the workplace by older workers, aged between 55 and 64. Our aim is to find the factors associated with working more and less hours during the first wave of the pandemic among older workers in Europe. We use data collected by SHARE Corona Survey during the summer of 2020. We estimate two logistic regressions on working more and less hours using a set of individual controls, workplace and a country lockdown control. Our findings show that male workers are less likely to work more hours; older workers are more likely to work less hours; more educated workers work more hours and not less; people with difficulty to meet ends are more often working less hours; worsening of health during the pandemic is associated with working more hours; working home or both home and usual work place are correlated with working more and working less hours. The contribution of this work comes from additional knowledge about the profile of older workers and their changed hours of work during a first wave of COVID-19 in Europe.
    Keywords: working hours, older workers, logistic regression, Europe, pandemic COVID-19
    JEL: J01
    Date: 2021–12–27
  7. By: Nikolova, Milena (University of Groningen); Nikolaev, Boris (Emory University); Boudreaux, Christopher (Florida Atlantic University)
    Abstract: We examine the moderating role of being a supervisor for meaning and autonomy of self-employed and employed workers. We rely on regression analysis applied after entropy balancing based on a nationally representative dataset of over 80,000 individuals in 30 European countries for 2005, 2010, and 2015. We find that being a self-employed supervisor is correlated with more work meaningfulness and autonomy compared with being a salaried supervisor working for an employer. Wage supervisors and self-employed supervisors experience similar stress levels and have similar earnings, though self- employed supervisors work longer hours. Moreover, solo entrepreneurs experience slightly less work meaningfulness, but more autonomy compared with self-employed supervisors. This may be explained by the fact that solo entrepreneurs earn less but have less stress and shorter working hours than self- employed supervisors.
    Keywords: self-employment, supervisors, autonomy, work meaningfulness
    JEL: I31 L26 M10
    Date: 2021–12
  8. By: Javier Ortega (Kingston University [London]); Gregory Verdugo (EPEE - Centre d'Etudes des Politiques Economiques - UEVE - Université d'Évry-Val-d'Essonne - Université Paris-Saclay, OFCE - Observatoire français des conjonctures économiques - Sciences Po - Sciences Po)
    Abstract: We study the impact of local immigration inflows on natives' wages using a large French administrative panel from 1976-2007. We show that local immigration inflows are followed by reallocations of blue-collar natives across commuting zones. Because these reallocations vary with the initial occupation and blue-collar location movers have wages below the blue-collar average, controlling for changes in local composition is crucial to assess how wages adjust to immigration. Immigration temporarily lowers the wages of blue-collar workers, with unskilled workers experiencing larger losses. Location movers lose more than stayers in terms of daily wages but move to locations with cheaper housing.
    Keywords: Immigration,Wages,Employment,France
    Date: 2021
  9. By: Bassanini, Andrea (OECD); Batut, Cyprien (Paris School of Economics); Caroli, Eve (Université Paris-Dauphine)
    Abstract: We investigate the impact of labor market concentration on stayers' wages, where stayers are defined as individuals who were already employed in the same firm the year before. Using administrative data for France, we show that the elasticity of stayers' wages to labor market concentration ranges between -0.0185 and -0.0230, depending on the instrument we use, and controlling for labor productivity and local product market concentration. This represents between about two thirds and three fourth of the elasticity we estimate for new hires. Given the strong wage rigidities characterizing the French labor market, this estimate can be considered a lower bound of the effect of labor market concentration on stayers' wages in an international perspective.
    Keywords: labor market concentration, monopsony, wages, stayers
    JEL: J31 J42 L41
    Date: 2021–12
  10. By: Sarracino, Francesco; Greyling, Talita (University of Johannesburg); O'Connor, Kelsey J. (STATEC Research – National Institute of Statistics and Economic Studies); Peroni, Chiara (STATEC Research – National Institute of Statistics and Economic Studies); Rossouw, Stephanié (Auckland University of Technology)
    Abstract: In this article, we describe how well-being changed during 2020 in ten countries, namely Australia, Belgium, France, Germany, Great Britain, Italy, Luxembourg, New Zealand, South Africa, and Spain. Our measure of well-being is the Gross National Happiness (GNH), a country-level index built applying sentiment analysis to data from Twitter. We aim to describe how GNH changed during the pandemic within countries, assess its validity as a measure of well-being, and analyse its correlations. We take advantage of a unique dataset of daily observations about GNH, generalised trust and trust in national institutions, fear concerning the economy, loneliness, infection rate, policy stringency and distancing. To assess the validity of the data sourced from Twitter, we exploit various survey data sources, such as the Eurobarometer and consumer satisfaction, and Big Data sources, such as Google Trends. Results indicate that sentiment analysis of tweets can provide reliable and timely information on well-being. This can be particularly useful to timely inform decision-making.
    Keywords: happiness, COVID-19, Big Data, Twitter, Sentiment Analysis, well-being, public policy, trust, fear, loneliness
    JEL: C55 I10 I31 H12
    Date: 2021–11
  11. By: Fluchtmann, Jonas (Aarhus University); Glenny, Anita Marie (Ministry of Employment, Denmark); Harmon, Nikolaj (University of Copenhagen); Maibom, Jonas (Aarhus University)
    Abstract: Men and women tend to hold different jobs. Are these differences present already in the types of jobs men and women apply for? Using administrative data on job applications made by the universe of Danish UI recipients, we provide evidence on gender differences in applied-for jobs for the broader labor market. Across a range of job characteristics, we find large gender gaps in the share of applications going to different types of jobs even among observationally similar men and women. In a standard decomposition, gender differences in applications can explain more than 70 percent of the residual gender wage gap.
    Keywords: job search, wage decomposition, firm wage premium, gender earnings gap
    JEL: E24 J29 J31 J71
    Date: 2021–12
  12. By: Amer-Mestre, Josep (European University Institute); Ayarza-Astigarraga, Alaitz (European University Institute); Lopes, Marta C (Universidad Carlos III de Madrid)
    Abstract: We study the impact of COVID-19 school closures on differences in online learning usage by regional academic performance. Using data from Google Trends in Italy, we find that during the first lockdown, regions with a previously lower academic performance increased their searches for e-learning tools more than higher-performing regions. Analysing school administrative and survey data before the pandemic, we find that both teachers and students in lower performing regions were using no less e-learning tools than higher performing ones. These two findings suggest that the COVID-19 shock widened the e-learning usage gap between academically lower and higher-performing regions. Exploiting the regional variation in school closure mandates during the 2020/2021 academic year, we report that the patterns detected after the first lockdown were no longer present. Regions with different previous academic performance had the same response in terms of online learning usage when faced with stricter school closures.
    Keywords: school closures, inequality, education, COVID-19, e-learning
    JEL: C31 C81 I24 H75
    Date: 2021–11
  13. By: Luca Bellodi; Massimo Morelli; Matia Vannoni
    Abstract: We study the consequences of populism for government performance and the quality of bureaucracy. When voters lose trust in representative democracy, populists strategically supply unconditional policy commitments that are easier to monitor for voters. When in power, populists implement their policy commitments regardless of financial constraints and expert assessment of the feasibility of their policies, worsening government performance and dismantling resistance from expert bureaucrats. We use novel data on about 8,000 municipalities in Italy, over a period of 20 years, and we estimate the effect of electing a populist mayor with a close-election regression discontinuity design. We find that the election of a populist mayor leads to more debts, a larger share of procurement contracts with cost overruns, higher turnover among top bureaucrats, and a sharp decrease in the percentage of graduate bureaucrats. These results contribute to the literature on populism, government performance, and bureaucratic appointments.
    Keywords: populism, government performance, bureaucracy, turnover
    Date: 2021
  14. By: Bruno Carvalho
    Abstract: Little is known about the influence of public funding for electoral campaigning on campaigning decisions and electoral outcomes. This paper proposes an analytically tractable model to assess such effects and tests its results on local elections in Portugal. The case of Portugal is interesting in that public allowances are the largest source of funds for campaigning, but are capped and conditional on contemporaneous electoral results. This creates a risky lottery for candidates. We show that, when the dispersion of voter ideology is high, candidates that are ex-ante more popular spend more in campaigning. The empirical analysis relies on a novel dataset covering all candidates in 308 municipalities for 3 elections, based on the official declarations of candidates to the Portuguese Constitutional Court. Identification follows from the rules governing the allocation of public funds across candidates in the municipality. We find that the expected public funding is an important determinant ofcampaign spending levels and that campaign spending boosts local vote shares. The spending of the average runner-up yields 7.4 percentage points of his vote share. For the two biggest Portuguese parties the effect hovers around 9-10 percentage points. Our estimates imply a cost-per-vote between e7 and e17, depending on the candidate. When we focus on elections between incumbents and challengers, we find that, as prescribed by the model, incumbents spend more in municipalities where voter ideology is more disperse.
    Keywords: campaign spending, local elections, public funding, probabilistic voting
    Date: 2021–12
  15. By: Deng, Liuchun (Yale-NUS College); Krishna, Pravin (Johns Hopkins University); Senses, Mine Zeynep (Johns Hopkins University); Stegmaier, Jens (Institute for Employment Research (IAB), Nuremberg)
    Abstract: In this paper, we empirically assess the causal relationship between trade and individual income risk and study the role that human capital plays in this relationship using a rich, worker-level, longitudinal data set from Germany spanning from 1976 to 2012. Our estimates suggest substantial heterogeneity in labor income risk across workers in different entry cohorts, over workers' life cycles, and across workers with different levels of industry- and occupation- specific human capital. Accounting for entry-cohort effects and age effects, our findings suggest that within-industry changes in imports and exports (per worker) are strongly and causally related to income risk: Imports increase risk and exports decrease risk, and they do so in an economically significant manner. Importantly, we find there to be a complex interplay between human capital and the causal linkage between trade and risk: On average, individuals with higher levels of industry- or occupation-specific human capital experience lower income risk. However, a given increase in net import exposure in an industry increases risk for workers with higher levels of industry tenure more than it does for workers with lower levels of industry tenure. High levels of industry-specific human capital can therefore be costly, from a risk perspective, for workers in highly trade-exposed industries. We find no evidence of such an interaction between risk, industry trade exposure, and occupation-specific human capital.
    Keywords: imports, exports, income risk, human capital, Germany
    JEL: F14 F16 D52 E21 J24 J62
    Date: 2021–12
  16. By: Salvatore Barbaro (Johannes Gutenberg University Mainz); Nils D. Steiner (Johannes Gutenberg University Mainz)
    Abstract: Out of the many possible voting schemes, the notoriously-used plurality rule is far from being the best. Previous research from France and the US reveals how plurality winners fall short of majority support. Therefore, eminent scholars advocate the simple-majority rule. The latter, however, faces the threat of indeterminacy due to cycling patterns. To contribute to the scarce evidence on the empirical occurrence of these phenomena, we used survey data from the 2017 German election to simulate preference orderings on district candidates. We find that violations of the majority principle are frequent. Conversely, we do not uncover any indeterminacy.
    Keywords: Elections, Plurality voting, simple-majority rule, indeterminacy
    JEL: D71
    Date: 2022–01–13
  17. By: Adamopoulou, Effrosyni (University of Mannheim); Manaresi, Francesco (OECD); Rachedi, Omar (ESADE); Yurdagul, Emircan (Universidad Carlos III de Madrid)
    Abstract: Minimum wages alter the allocation of firm-idiosyncratic risk across workers. To establish this result, we focus on Italy, and leverage employer-employee data matched to firm balance sheets and hand-collected wage floors. We find a relatively larger pass-through of firm-specific labor-demand shocks into wages for the workers whose earnings are far from the floors, but who are employed by establishments intensive in minimum-wage workers. We study the welfare implications of this fact using an incomplete-market model. The asymmetric passthrough uncovers a novel channel which tilts the benefits of removing minimum wages toward high-paid employees at the expense of low-wage workers.
    Keywords: firm-specific shocks, pass-through, minimum wages, linked employer-employee data, general equilibrium, complementarities
    JEL: E24 E25 E64 J31 J38 J52
    Date: 2021–12
  18. By: Loïc Bonneval (CMW - Centre Max Weber - CNRS - Centre National de la Recherche Scientifique - ENS Lyon - École normale supérieure - Lyon - UL2 - Université Lumière - Lyon 2 - UJM - Université Jean Monnet [Saint-Étienne]); Florence Goffette-Nagot (GATE Lyon Saint-Étienne - Groupe d'analyse et de théorie économique - ENS Lyon - École normale supérieure - Lyon - UL2 - Université Lumière - Lyon 2 - UCBL - Université Claude Bernard Lyon 1 - Université de Lyon - UJM - Université Jean Monnet [Saint-Étienne] - Université de Lyon - CNRS - Centre National de la Recherche Scientifique); Zhejin Zhao (GATE Lyon Saint-Étienne - Groupe d'analyse et de théorie économique - ENS Lyon - École normale supérieure - Lyon - UL2 - Université Lumière - Lyon 2 - UCBL - Université Claude Bernard Lyon 1 - Université de Lyon - UJM - Université Jean Monnet [Saint-Étienne] - Université de Lyon - CNRS - Centre National de la Recherche Scientifique)
    Abstract: This paper reexamines the debated issue of the effects of rent control policy on the rental market. We investigate the impact on rents of three different forms of rent regulation in Lyon over a 78-­year period. We use an original historical data set which allows us to track regulation changes, rent paid, and tenant moves for a long-­run panel of flats. Using a difference-­in-­differences method, we estimate the impact of regulation on rents depending on the type of rent control over different economic periods. Our results show that the impact of rent control deepened over time. Starting with an 11% reduction in rents between 1914 and 1929, it reached a decrease by 47% in the regulated rental market in the 1949–­1968 period. We do not find any increase in rents in the unregulated segment of the rental market, which could be a result of a reduction in housing investment in the long run.
    Keywords: Rent control,Housing policy,Difference-in-differences
    Date: 2021–11–08
  19. By: Guzi, Martin (Masaryk University); Mikula, Stepan (Masaryk University)
    Abstract: We exploit a quasi-natural experiment that emerged during the Czech presidential run-off election to identify the impact of inaccurate and misleading information on electoral outcomes. A political campaign associated a vote for one of the candidates with a legally and politically unfounded risk relevant to people owning houses confiscated from ethnic Germans after the Second World War. Using municipalitylevel data in a difference-in-differences framework, our analysis suggests that the manipulative campaign affected the electoral outcomes and increased voter turnout in municipalities with a higher share of voters at risk of the unproven threat to housing ownership.
    Keywords: Sudetenland, voting, manipulative information, 2013 Czech presidential election
    JEL: D72 P16 P14
    Date: 2021–11
  20. By: Amez, Simon (Ghent University); Baert, Stijn (Ghent University); Heydencamp, Emily (Ghent University); Wuyts, Joey (Ghent University)
    Abstract: Multitasking – alternating between two different tasks at the same time – has become a daily habit for many university students. However, this may come at a cost since the existing literature emphasises the negative association between multitasking and academic performance. Nonetheless, this literature is based on cross-sectional observational data so that that estimates cannot be given a causal interpretation. To complement these studies, we opted for a longitudinal design in this study. Specifically, for three consecutive years, students at two Belgian universities, in more than ten different study programmes, were surveyed on their multitasking preferences and academic performance. Then, these results were merged with the students' exam scores. We exploited the longitudinal character of the data by running random and fixed effect models. Our results indicate that the positive and negative aspects of multitasking with respect to academic performance cancel each other out.
    Keywords: multitasking, academic performance, longitudinal data
    JEL: I23 J24
    Date: 2021–11
  21. By: Aungles, Aidan (University of Warwick)
    Abstract: I use real money choices from the Innovation Panel of the UK Household Longitudinal Survey to jointly estimate time and risk preferences via Maximum Likelihood Estimation using dfferent specifications of subjective time. First, survey-elicited individual estimation of subjective time is utilised. Second, I use two sample-level estimations of subjective time based upon psychophysical laws which have been found to hold for the perception of stimuli such as light and heat, and apply them to the perception of time (To clarify, here, the sample's average curvature of subjective time is estimated). These specifications are examined closely and compared to that of objective time. Lastly, I also add to the literature on the heterogeneity of time and risk preferences utilising the wide range of variables available.
    Keywords: Discount rate ; Risk aversion ; Subjective time ; Heterogeneity JEL Classification: D81
    Date: 2021
  22. By: Cristina Elisa Orso (University of Verona); Matija Kovacic (European Commission, Joint Research Centre (JRC), Ispra, Italy)
    Abstract: This paper explores the evolution of inequality of opportunity in the prevalence ofchronic diseases along the life cycle and across different birth cohorts for individualsaged 50 or older and residing in 13 European countries. We adopt an ex-ante parametric approach and rely on the dissimilarity index as our reference inequality metric. Inaddition to a commonly used set of circumstances, we pay particular attention to therole of adverse early-life conditions, such as the experience of harm and the quality ofthe relationship with parents. In order to quantify the relative importance of each circumstance, we apply the Shapley inequality decomposition method. Our results suggestthat inequality of opportunity in health is not stable over the life cycle - it is generallylower at younger ages and then monotonically increases. Moreover, it varies betweendifferent birth cohorts and is generally higher for younger individuals than for olderage groups. Finally, the contribution of adverse early life conditions ranges between25% and 45%, which is comparable to the share of socio-economic circumstances butsignificantly higher than the relative contribution of other demographic characteristics,especially at younger ages.
    Keywords: Inequality of opportunity, health, life cycle, adverse early-life conditions, decomposition
    JEL: I14 D63
    Date: 2022–01
  23. By: Fabrizio Durante; Angelica Gianfreda; Francesco Ravazzolo; Luca Rossini
    Abstract: This paper examines the dependence between electricity prices, demand, and renewable energy sources by means of a multivariate copula model {while studying Germany, the widest studied market in Europe}. The inter-dependencies are investigated in-depth and monitored over time, with particular emphasis on the tail behavior. To this end, suitable tail dependence measures are introduced to take into account a multivariate extreme scenario appropriately identified {through the} Kendall's distribution function. The empirical evidence demonstrates a strong association between electricity prices, renewable energy sources, and demand within a day and over the studied years. Hence, this analysis provides guidance for further and different incentives for promoting green energy generation while considering the time-varying dependencies of the involved variables
    Date: 2022–01

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