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on Microeconomic European Issues |
| By: | Feichtmayer, Jennifer (University of Erlangen-Nuremberg); Riphahn, Regina T. (University of Erlangen-Nuremberg) |
| Abstract: | We study the intergenerational transmission of welfare benefit receipt in Germany. We first describe the correlation between welfare receipt experienced in the parental household and subsequent own welfare receipt of young adults. In a second step, we investigate whether the observed correlations reflect causal effects of past welfare experience. We use family fixed effects estimations and Gottschalk's (1996) approach and take advantage of the long-running German Socio-Economic Panel Survey to contribute to a sparse literature. We find strong positive correlations between parental and own welfare receipt. These patterns do, however, not persist after controlling for unobserved heterogeneities. Therefore, our results suggest that the strong intergenerational correlation of welfare benefit receipt is determined by family background rather than by the experience of parental welfare benefit receipt. |
| Keywords: | welfare, social assistance, intergenerational mobility, causal effect, family fixed effects, Gottschalk estimator |
| JEL: | I32 I38 J62 C36 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16660&r=eur |
| By: | Hazans, Mihails; Masso, Jaan; Maurseth, Per Botolf |
| Abstract: | Do employees with supervisory responsibilities differ from other workers in terms of human values, especially those potentially affecting the quality and efficiency of supervision? This paper uses data from rounds 7-9 of the European Social Survey to examine the selection of employees into supervisory positions in nine Baltic Sea region countries, focusing on ten basic values and four higher order values identified by Schwarz (1992). In eight out of nine countries considered, statistically significant association with supervisory responsibilities is found for three higher order values: positive for Openness to Change and Self-Enhancement but negative for Conservation. By contrast, Self-Transcendence (covering Benevolence and Universalism) is not significantly associated with supervision. In Estonia, Finland, Denmark and (to a smaller extent) Norway and Germany, we find evidence for adverse selection into supervisory jobs based on the Power value posing a risk of autocratic behaviour. When looking at the link between the supervisor's values and the number of subordinates, we find that values that make it easier or harder to become a supervisor tend to work the same way in supervising more workers. |
| Keywords: | supervisory responsibilities, human values, adverse selection, social trust |
| JEL: | D91 J24 M51 P52 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:glodps:1361&r=eur |
| By: | Azzollini, Leo; Breen, Richard; Nolan, Brian |
| Abstract: | Changes in household structures and employment patterns alter the balance between households with an above- versus a below-average poverty risk while also affecting relative income poverty thresholds. Examining eleven countries for which suitable microdata is available from the Luxembourg Income Study (LIS) back to the mid-1980s shows that patterns of change in household composition and employment exhibited some common features but also very substantial variation. The share of single adult households rose in most countries, couples with no or only one person in paid work fell in most, while couple households with two earners increased in a majority but not in Denmark, Norway and the USA and only modestly in Hungary and the UK. A counterfactual exercise assessed the impact of these changes in composition on relative income poverty rates by reweighting the 2019 samples to impose the composition structure observed in 1986. In the absence of these composition changes the relative poverty rate in 2019 would have been a good deal higher in Germany, Greece, and Italy, and especially in Israel and Spain. Composition changes had only a modest impact in the UK and made very little difference in Denmark, Hungary, and the USA, while working to increase the relative poverty rate in Czechia and Norway. This reflected the varying scale and nature of the composition changes seen across these countries. Their impact included driving up the relative poverty threshold (except in the USA), and if this effect is discounted the composition shift over the period would have had a greater poverty reduction impact in most countries, especially in Israel, Italy and most powerfully in Spain. (Stone Center on Socio-Economic Inequality Working Paper) |
| Date: | 2023–12–13 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:rp37g&r=eur |
| By: | Shure, Nikki (University College London); Zierow, Larissa (Ifo Institute for Economic Research) |
| Abstract: | First-generation university graduates have been found to face a series of disadvantages on their pathway to higher education and the labor market. We use unique, national level data on high achieving university graduates to attempt to disentangle the importance of lower prior attainment from parental educational background on a series of higher education and labor market outcomes. We compare first-generation and non-first-generation graduates who are recipients of a prestigious national scholarship program targeted at the top percentile of the student distribution in Germany. We find the first-generation high achievers are more likely to study at less prestigious institutions and at institutions that are closer to home even though they have the prior attainment to go further afield. They are also less likely to study subjects with high labor market returns and are more likely to work in jobs with high job security. We furthermore find evidence that especially female first- generation high achievers are less likely to see the value of the networking opportunities the scholarship provides. |
| Keywords: | socio-economic gaps, first-generation, higher education |
| JEL: | I24 J24 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16654&r=eur |
| By: | Pilar García-Gómez; Silvia Garcia-Mandicó; Sergi Jimenez-Martin; Judit Vall Castelló |
| Abstract: | In this paper, we analyze the extent to what financial incentives have influenced individual and couples retirement decisions over the last two decades in Spain. We use administrative data on earnings histories to create synthetic measures of financial incentives that we link to individual survey data from the European Community Household Panel and the European Union Statistics on Income and Living Conditions. The ocurrence of several major reforms in the period largely facilitates identification. We find that retirement is highly responsive to incentive variables (both ITAX and SSW). We find that a 10% change in the implicit tax rate on working longer increases the probability of retiring by about 0.70 pp (0.90 pp for men and 0.54 for women). Furthermore, we find that couple incentives matter more in husband's retirement decisions than in wife's retirement decisions. |
| JEL: | H55 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:31956&r=eur |
| By: | Jarkko Harju (Tampere University and Finnish Center of Excellence in Tax Systems Research); Toni Juuti (Labour Institute for Economic Research LABORE, Tampere University and Finnish Center of Excellence in Tax Systems Research); Tuomas Matikka (VATT Institute for Economic Research and Finnish Center of Excellence in Tax Systems Research) |
| Abstract: | Using detailed full-population data from Finland, we provide evidence on selection into entrepreneurship and the dynamic implications of establishing a new business. Individuals at the very top of the personal income distribution are much more likely to start a new incorporated business compared to others. There is no similar selection based on parental income, but more than half of new entrepreneurs have entrepreneurial parents. Entrepreneurship is associated with a similar average income gain of 20% relative to comparable wage earners throughout both personal and parental income distributions. However, key firm-level outcomes such as productivity and job creation are positively linked with personal income. This suggests that high-income individuals do not only benefit from entrepreneurship personally, but their businesses are associated with the largest positive spillovers in the economy. In contrast, we find no significant differences in the outcomes of new firms by parental income or parental background in entrepreneurship. |
| Keywords: | entrepreneurship; income mobility; inequality; productivity |
| JEL: | L26 J24 J3 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:fit:wpaper:17&r=eur |
| By: | Fasani, Francesco (University of Milan); Frattini, Tommaso (University of Milan); Pirot, Maxime (University of Milan) |
| Abstract: | Is naturalization an effective tool to boost refugees' labor market integration? We address this novel empirical question by exploring survey data from 21 European countries and leveraging variation in citizenship laws across countries, time, and migrant groups as a source of exogenous variation in the probability of naturalization. We find that obtaining citizen status allows refugees to close their gaps in labor market outcomes relative to non-refugee migrants while having non-significant effects on the latter group. We then further explore the heterogeneity of returns to citizenship in a Marginal Treatment Effect framework, showing that migrants with the lowest propensity to naturalize would benefit the most if they did. This reverse selection on gains can be explained by policy features that make it harder for more vulnerable migrant groups to obtain citizenship, suggesting that a relaxation of eligibility constraints would yield benefits for both migrants and host societies. |
| Keywords: | forced migration, citizenship, asylum policy |
| JEL: | J15 J61 F22 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16651&r=eur |
| By: | Nikolova, Milena (University of Groningen); Cnossen, Femke (University of Groningen); Nikolaev, Boris (Colorado State University) |
| Abstract: | This paper is the first to examine the impact of robotization on work meaningfulness and autonomy, competence, and relatedness, which are essential to motivation and well-being at work. Drawing on surveys from workers and industry-specific robotization data across 14 industries in 20 European countries from 2005 to 2021, our analysis reveals a consistent negative impact of robotization on perceived work meaningfulness and autonomy. Using instrumental variables, we find that doubling robotization correlates with a 0.9% decrease in work meaningfulness and a 1% decrease in autonomy. To put this in perspective, aligning the robotization intensity of the top five industry with the leading industry's robotization level in 2020—which would mean a 7.5-fold increase—would lead to a 6.8% reduction in work meaningfulness and a 7.5% reduction in autonomy. The link between robotization, competence, and relatedness is also negative but less robust. We also examine how tasks, skills, and socio-demographic characteristics moderate the relationship. We find that workers with routine tasks drive the negative effects of robotization on autonomy. However, we also discover that engaging in social tasks and utilizing computers as tools for independent work can help workers maintain a sense of autonomy in industries and job roles that adopt robots. Our results highlight that by deteriorating work meaningfulness and self-determination, robotization can impact work life above and beyond its consequences for employment and wages. |
| Keywords: | work meaningfulness, self-determination theory, robotization, automation |
| JEL: | J01 J30 J32 J81 I30 I31 M50 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16656&r=eur |
| By: | Klauser, Roman (RWI); Tamm, Marcus (Hochschule der Bundesagentur für Arbeit (HdBA)) |
| Abstract: | Do returns to training differ if training is accompanied by technological innovations at the workplace? We analyze this potential heterogeneity of returns based on panel data from Germany that provide a unique measure for individuals' adoption of new technology at the workplace. In the preferred analysis we run fixed effects estimations. As a robustness test we also allow for individual time trends. The findings indicate positive wage effects and more job stability for training participants in general but no effects on wages and job mobility for new technology adoption. Furthermore, the combined occurrence of new technology adoption and of training participation does not make individuals better off in terms of wages or job stability compared with individuals experiencing neither training nor new technology adoption. |
| Keywords: | returns to education, training, technology |
| JEL: | I26 J24 J62 M53 O33 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16659&r=eur |
| By: | Pietro Santoleri (European Commission - JRC); Emanuele Russo (Bank of Italy) |
| Abstract: | In the attempt to boost innovation, policy-makers have enacted a myriad of programs targeting innovative start-ups in recent years. Empirical evidence on these initiatives has almost exclusively focused on national-level programs, overlooking those implemented at the local level. This paper provides the first quasi-experimental evidence on the joint effects of local policies focusing on Italy, where regional governments have been very active in providing financial support to these firms. By leveraging discontinuities in program design, we adopt a local randomization approach and document a null effect of these programs over a wide range of firm-level outcomes. However, we find that securing local subsidies increases start-ups' probability to obtain additional public subsidies, which points in the direction of a vicious “Matthew effect” in subsidy allocation. Consistent with a reputation/certification mechanism, the increase in follow-on subsidies occurs for funds disbursed at the local level only, whereas no effect is detected for subsidies allocated by national or international authorities. |
| Keywords: | Regression discontinuity design, Innovation Policy, Place-based Policy, Start-ups. |
| JEL: | D22 G24 G32 L53 O31 O38 R58 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:termod:202313&r=eur |
| By: | Michela Giorcelli |
| Abstract: | This paper studies to what extent the transfer of US managerial technologies to Europe after World War II contributed to closing the gap with US businesses. Between 1952 and 1958, the US government sponsored the Productivity Program, which promoted management training trips for European managers at US firms. Through the analysis of reports compiled by UK, France, Germany, and Italian participating firms, I first document that these companies claimed between 5 and 10% yearly productivity increase thanks to the program. The fact that European businesses were not forced to adopt the American management model, but could adapt it to their firm needs and existing business practices was a key aspect of the program’s success. Second, using data on US and Italian participating firms’ performance I show that Italian firms grew on average 7.8 percent faster than that of US companies in the ten years after the start of the program. Moreover, the distribution of productivity of Italian and US firms became more similar over years, confirming a performance convergence between these companies. |
| JEL: | M5 M50 N64 N73 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:31959&r=eur |
| By: | Köllő, János (Institute of Economics, Budapest); Boza, István (Central European University, Budapest); Ilyés, Virág (HUN-REN Centre for Economic and Regional Studies); Kőműves, Zsófia (Cambridge Economic Policy Associates); Mark, Lili Katalin (Central European University, Budapest) |
| Abstract: | We use linked employer-employee data to investigate a large sample of past and future prisoners in Hungary, 2003-2011. We first compare their jobs, focusing on attributes that can reduce the penalty the employer must pay for a mistaken hiring decision. Second, we study if employers insure themselves by paying lower wages to ex-prisoners. Third, we analyze whether the probability of the match dissolving within a few months is lower if the firm could potentially base its hiring decision on referrals. The composition of former prisoners' employment is biased toward easy-to-cancel jobs. In the unskilled jobs held by most of them, they do not earn less than future convicts, but a minority in white-collar positions are paid significantly less. Ex-prisoners' jobs are less likely to dissolve quickly if the hiring firm potentially had access to co-worker, employer, or labor office referrals. |
| Keywords: | incarceration, reintegration, mobility, discrimination, Hungary |
| JEL: | J71 J23 J63 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16645&r=eur |
| By: | Davide Azzolini; Nicola Doppio; Luca Mion; Iunio Quarto Russo; Alessio Tomelleri |
| Abstract: | Innovating product design is crucial for firms operating in the digital sector as it is closely linked with innovation capability and, therefore, with firm performance and productivity. In this paper, we run a randomized controlled trial to assess if participating in an open innovation initiative increases SMEs’ capability to design more competitive digital products. More specifically, the intervention aimed at increasing firms’ knowledge of the Design Sprint and their readiness to implement user-centered design techniques. 190 SMEs based in 7 different European countries took part in the field trial in spring 2021. We find that the intervention increased participants’ knowledge about user-centered design methods, although no statistically significant effects are found on participants’ intention to adopt that in their firms. This may be traced back to organizational and financial constraints typically related to the small-sized firms involved. |
| Keywords: | Open Innovation, SMEs, Randomized Controlled Trial, User Experience Design, Design Sprint |
| JEL: | D22 M31 O31 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:fbk:wpaper:2024-01&r=eur |
| By: | Joan Costa-Font (LSE - London School of Economics and Political Science); Sarah Fleche (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique); Ricardo Pagan (Universidad de Málaga [Málaga] = University of Málaga [Málaga]) |
| Abstract: | Despite the growing prevalence of insufficient sleep among individuals, we still know little about the labour market return to sleep. To address this gap, we use longitudinal data from Germany and leverage exogenous fluctuations in sleep duration caused by variations in time and local sunset times. Our findings reveal that a one-hour increase in weekly sleep is associated with a 1.6 percentage point rise in employment and a 3.4% increase in weekly earnings. Such effect on earnings stems from productivity improvements given that the number of working hours decreases with longer sleep duration. We also identify a key mechanism driving these effects, namely the enhanced mental well-being experienced by individuals who sleep longer hours. |
| Keywords: | Sleep, Employment, Productivity, Mental health, Sunset times |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:hal:cesptp:hal-04331898&r=eur |
| By: | Bertrand Garbinti (CEPR - Center for Economic Policy Research - CEPR, CREST-INSEE - Centre de Recherche en Economie et en Statistique - Institut national de la statistique et des études économiques (INSEE)); Cecilia García-Peñalosa (AMSE - Aix-Marseille Sciences Economiques - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique, Centre de recherche de la Banque de France - Banque de France); Vladimir Pecheu (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, IPP - Institut des politiques publiques); Frédérique Savignac (Banque de france - Banque de France) |
| Abstract: | This paper computes lifetime earnings (LTE) in France for the 1967 to 1987 entry cohorts and compares our results with the US. Median LTE in France increased moderately for both genders, in contrast to the US where men's LTE declined and women's rose sharply. We also examine some of the factors driving the dynamics of LTE in France. We find that education plays a key role in shaping LTE across cohorts, place of birth has a large influence on lifetime earnings, and differences in working time explain a larger share of the gender gap for younger than for older cohorts. |
| Keywords: | Lifetime earnings, inequality, gender earnings gaps |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:hal:ipppap:hal-04362081&r=eur |
| By: | Rafik Abdesselam (COACTIS - COnception de l'ACTIon en Situation - UL2 - Université Lumière - Lyon 2 - UJM - Université Jean Monnet - Saint-Étienne); Malia Kedjar (LARSH - Laboratoire de Recherche Sociétés & Humanités - UPHF - Université Polytechnique Hauts-de-France - INSA Hauts-De-France - INSA Institut National des Sciences Appliquées Hauts-de-France - INSA - Institut National des Sciences Appliquées); Patricia Renou-Maissant (EconomiX - EconomiX - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | The purpose of this paper is to identify the drivers of eco-innovation in start-ups. Firstly, a discriminant analysis (DA) is applied to study what is distinctive about eco-innovative start-ups as compared to non-eco-innovative start-ups. Secondly, a typology of eco-innovative start-ups is developed using a hierarchical ascendant clustering (HAC). Analyses are carried out using original data from a survey of 120 eco-innovative and non-ecoinnovative French start-ups. Discriminant analyses reveal that the founders of eco-innovative start-ups are differentiated by characteristics related to their environmental education and professional experience. Furthermore, eco-innovative start-ups are distinguished from the non-eco-innovative start-ups by voluntary environmental practices, such as the adoption of corporate social responsibility policies. Finally, we show that there is a diversity of profiles of eco-innovators. In fact, firms cluster into five main profiles and exhibit different eco-innovation drivers. We highlight that the different types of eco-innovators do not face the same difficulties in accessing funds. These findings have important implications for the implementation of public policy designed to promote eco-innovative activity, and they highlight the need to design policies that take into account the distinctive character of each profile. |
| Keywords: | Eco-innovation Start-ups typology Data analysis methods |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04304153&r=eur |
| By: | Ambrasat, Jens; Fabian, Gregor |
| Abstract: | Working conditions in the science system have long been complained about as insecure and lacking in perspective. It is an open question who could benefit from more secure employment. While a widespread rhetoric in political debates and some economic approaches suspect that greater job security undermines scientist’s motivation, efforts and performance, psychological approaches on work and motivation see increasing satisfaction on the part of scientists as a driver for the development of higher performance potential. We are investigating the relationship between contract situation, satisfaction and performance in science on the basis of a representative sample of 4, 134 postdocs from all universities in Germany. The results show positive effects of secure employment on both satisfaction and output. However, the output effect is only partly mediated by satisfaction. In contrast to earlier studies, relevant contextual characteristics of the work situation are controlled for, so that the effect of the secure employment is more clearly carved out. The study refutes negative attributions of permanent positions on work results and thus the hammock argument. Thus, all parties may benefit from stable jobs for researchers. |
| Date: | 2023–12–19 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:7j2pt&r=eur |
| By: | Drydakis, Nick |
| Abstract: | The study examines the socio-economic determinants of physical health among populations experiencing food insecurity and receiving free meals in soup kitchens in the Prefecture of Attica, Greece. Data were collected from the same six soup kitchens in 2012, 2017, and 2021, resulting in a dataset of 1, 533 observations. The study revealed that periods characterised by an economic recession are associated with deteriorated physical health of food-insecure people. Moreover, the study found that physical health deteriorations among food-insecure people are associated with older age, female gender, immigration status, disability and/or long-term health conditions, LGBT status, unemployment, economic inactivity, homelessness, living below the poverty threshold, long-term food dependency, illicit drug consumption, and residing in low- and middle-class areas. The study proposes the Intersectional Model of Health Inequalities, which integrates multiple factors involved in shaping the health inequalities of people experiencing food insecurity, from macro-level factors such as a country's economic performance to individual-level factors like education, employment status and demographic characteristics. The model emphasizes that low-income populations should not be treated as a homogeneous entity. Its goal is to inform policymakers about the diverse health inequalities experienced by people with low incomes. |
| Keywords: | Food Insecurity, Poverty, Health |
| JEL: | I32 I10 I14 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:glodps:1362&r=eur |
| By: | PAPAZOGLOU Michail (European Commission - JRC); TORRECILLAS JODAR Juan (European Commission - JRC); CARDONA Melisande; CALZA Elisa (European Commission - JRC); VAZQUEZ-PRADA BAILLET Miguel (European Commission - JRC); RIGHI Riccardo |
| Abstract: | The Digital Decade Policy Programme aims at accelerating the digital transformation of Europe by fostering developments in key digital areas, while setting ambitious targets to be achieved by 2030. The Digital Decade targets are defined across four cardinal points: digital skills, digital infrastructures, digitalisation of business, and digitalisation of public services. This report presents a unique dataset, containing data on past and planned EU level public investment that supports digital transformation, and estimates their maximum potential contribution along the Digital Decade targets. The mapping of the main EU funding instruments shows a significant potential contribution to the digital transformation of the public sector and digitalisation of businesses. Specific areas such as semiconductors, quantum and the adoption of advanced technologies by firms are expected to benefit from a smaller share of funding. This report provides focused support to monitor the digital landscape of the European Union over the next decade. |
| Date: | 2023–09 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc134647&r=eur |
| By: | Nikolova, Milena (University of Groningen); Popova, Olga (Leibniz Institute for East and Southeast European Studies (IOS)) |
| Abstract: | This paper studies the long-term consequences of communism on present-day freedom of expression values in two settings – East Germany and the states linked to the sphere of influence of the former USSR. Exploiting the natural experiment of German separation and later reunification, we show that living under communism has had lasting effects on free speech opinions. While free speech salience has increased for East and West Germans vis-à-vis other government goals, the convergence process has been slow. East Germans are still less likely to consider freedom of speech a key government priority compared to West Germans. Additionally, our analyses of secret police surveillance data from East Germany point to the fact that geographybased measures of community experiences of past political repression do not explain our findings. The same conclusion holds when we look at the setting of the former Soviet Union and we correlate proximity to Stalin's former labor camps in the Soviet Union with present-day freedom of speech values. At the same time, family experiences with political repression in Eastern Europe/the former Soviet Union exert a discernible influence on current values towards freedom of speech, likely due to a lasting impact stemming from such personal encounters. As such, our paper adds a nuanced contribution to the economics of free speech, suggesting that freedom of speech may be a part of informal institutions and slow-changing cultural values. |
| Keywords: | political repression, communism, free speech, German Democratic Republic, Eastern Europe, former Soviet Union, economic history |
| JEL: | D02 D83 N00 P27 P52 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16657&r=eur |
| By: | Eren Aydin (University of Hamburg); Kathleen Kürschner Rauck (University of St.Gallen; Swiss Finance Institute) |
| Abstract: | We study the short-term effects of the 9-Euro-Ticket, a major German public transport subsidization program, on particulate matter (PM). Using hourly PM readings from pollution monitoring stations throughout Germany, provided by the German Federal Environmental Agency, we find declines in PM₁₀ and PM₂.₅ at core traffic stations, displaying differential effects of -0.44 µg/m³ and -0.41 µg/m³ relative to less frequented locations, which corresponds to approximately 2.8 % and 8.5 % of the current limit guidelines that the WHO suggests to mitigate adverse effects on human health. Pollution reductions materialize in regions with above-average public-transportation accessibility, are most pronounced during peak travel times on weekdays and in regions with above-average population density and larger car fleets, suggesting reductions in car usage sign responsible for our findings. This notion is supported by plausibility tests that employ NO₂ and SO₂ as outcomes. These insights into consequences of ticket-fare subsidization for air quality and potential causal pathways are of relevance for policymakers involved in transportation (infrastructure) planning to accommodate such directly incentivizing policy tools in the future. |
| Keywords: | Public transport subsidy, Air pollution, 9-Euro-Ticket, Germany |
| JEL: | R48 R41 Q53 |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:chf:rpseri:rp23109&r=eur |
| By: | Silvia Rocchetta; Martina Iori; Andrea Mina; Robert Gillanders |
| Abstract: | We study the effects of different types of technological diversification on the performance of regional economies. We focus on the relatedness and unconventionality of technological capabilities as drivers of GDP and employment growth. Using economic indicators from Eurostat regional statistics and patent records from the European Patent Office (EPO) PATSTAT and the OECD RegPat databases, we estimate Panel Vector Autoregression models and generate Impulse Response Functions to assess to what extent and with what persistence relatedness and unconventionality affect growth. Our findings, which have implications for place-based innovation policies, reveal that technological relatedness has short-term effects on employment growth and negative effects on GDP growth, whereas technological unconventionality has a long-lasting positive impact on GDP growth and no effect on employment growth. |
| Keywords: | Technological capabilities; Diversification; Relatedness; Unconventionality; Innovation; Regional development |
| Date: | 2023–12–23 |
| URL: | http://d.repec.org/n?u=RePEc:ssa:lemwps:2023/46&r=eur |
| By: | Skawiński, Marek (Ministry of Finance); Chrostek, Paweł (Ministry of Finance; Institute of Economics); Bukowski , Paweł (University College London; London School of Economics; Institute of Economics); Novokmet , Filip (University of Bonn; World Inequality Lab) |
| Abstract: | This paper combines micro-level tax data, household surveys and national accounts data to provide consistent series of income distribution in Poland over the 2000-2018 period. We find that inequalities in Poland are one of the largest in Europe. In 2018, the share of income accrued to the top 10% is 37.4%, to the middle 40% is 41.1%, and to the bottom 50% is 21.5%. The top 1% earns 13.4% of the total income. The increase in income inequality during this period was largely driven by high business incomes in top income shares. The extent of redistribution in Poland is modest. The tax system is regressive at the top of the income distribution due to lower taxation of business income and the low burden of social contributions. Finally, we show that top income groups are dominated by business owners, males, and big city dwellers, and these groups have been the largest beneficiaries of Poland’s strong growth since 2000. Gender inequality has been high and stable in Poland, with a steeply decreasing female share with income rank (e.g. the share of females in top 0.1% group was 18% in 2018). |
| Keywords: | income inequality; income distribution |
| JEL: | D31 |
| Date: | 2023–12–22 |
| URL: | http://d.repec.org/n?u=RePEc:ris:mfplwp:0040&r=eur |
| By: | AMORES Antonio F. (European Commission - JRC); BASSO Henrique; BISCHL Simeon; DE AGOSTINI Paola (European Commission - JRC); DE POLI Silvia; DICARLO Emmanuele; FLEVOTOMOU Maria; FREIER Max; MAIER Sofia (European Commission - JRC); GARCÍA-MIRALLES Esteban; PIDKUYKO Myroslav; RICCI Mattia (European Commission - JRC); RISCADO Sara |
| Abstract: | This paper analyses the distributional impact of high consumer inflation in the euro area and government measures to compensate households in 2022. The study uses the tax-benefit microsimulation model for the European Union (EUROMOD) with microdata as the input – EU statistics on income and living conditions (EU-SILC) and household budget surveys (HBS) – to quantify the distributional impact of inflation, income support measures and measures aimed at containing prices. The analysis confirms that purchasing power and welfare were more severely affected by the 2022 inflation surge in lower-income households than in higher-income households. Fiscal measures compensated households for about a third of their welfare loss, though with significant differences between countries. At the same time, fiscal measures closed around 60% of the inequality gap between lower and higher-income households. Most fiscal measures were not particularly well targeted at low-income households, resulting in a higher than necessary fiscal burden to cushion the distributional impact of the inflationary shock. |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:taxref:202310&r=eur |
| By: | Elise Boucq; Joanna Geerts; Peter Willemé |
| Abstract: | In the context of the significant increase in the number of beneficiaries of the health and disability insurance observed over the last 20 years in Belgium, we seek to develop an explanatory model for work incapacity and disability. On the basis of SILC data, we attempt to identify and prioritise the effects of different factors that may influence the probability of employees' transitions between socio-economic statutes, and in particular to and from primary incapacity and disability. |
| JEL: | I13 H55 C25 |
| Date: | 2022–05–10 |
| URL: | http://d.repec.org/n?u=RePEc:fpb:wpaper:202204&r=eur |
| By: | Francesco Pappadà; Kenneth S. Rogoff |
| Abstract: | This paper offers a new approach to measuring the size of the informal economy based on VAT data for the European Union. Although data intensive, our EVADE measure is simpler and more transparent than existing measures. EVADE also shows more variation across countries of Europe than earlier measures, including higher informality in Greece, Italy and Spain, for example. Moreover, we find considerably higher variation within countries across time; in a cross-country time series regression, controlling for tax rates, we confirm that the informal economy grows significantly in recessions and decreases in booms, which we term the “Hugo effect”. |
| JEL: | E26 E32 H26 O17 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:31963&r=eur |
| By: | Tristan Earle Grupp; Prakash Mishra; Mathias Reynaert; Arthur A. van Benthem |
| Abstract: | The European Union designates 26% of its landmass as a protected area, limiting economic development to favor biodiversity. This paper uses the staggered introduction of protected-area policies between 1985 and 2020 to study the selection of land for protection and the causal effect of protection on vegetation cover and nightlights. Our results reveal protection did not affect the outcomes in any meaningful way across four decades, all countries, protection cohorts, and a wide range of land and climate attributes. We conclude that European conservation efforts lack ambition because policymakers select land for protection not threatened by development. |
| Keywords: | land protection, conservation, biodiversity, deforestation, vegetation cover, nightlights, staggered difference-in-differences |
| JEL: | Q23 Q24 Q57 R14 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_10820&r=eur |
| By: | Gagliardi, Luisa (Bocconi University); Moretti, Enrico (University of California, Berkeley); Serafinelli, Michel (University of Essex) |
| Abstract: | We investigate the employment consequences of deindustrialization for 1, 993 cities in France, Germany, Great Britain, Italy, Japan, and the United States. In all six countries we find a strong negative relationship between a city's share of manufacturing employment in the year of its country's manufacturing peak and the subsequent change in total employment, reflecting the fact that cities where manufacturing was initially more important experienced larger negative labor demand shocks. But in a significant number of cases, total employment fully recovered and even exceeded initial levels, despite the loss of manufacturing jobs. Overall, 34% of former manufacturing hubs–defined as cities with an initial manufacturing employment share in the top tercile–experienced employment growth faster than their country's mean, suggesting that a surprisingly large number of cities was able to adapt to the negative shock caused by deindustrialization. The U.S. has the lowest share, indicating that the U.S. Rust Belt communities have fared relatively worse compared to their peers in the other countries. We then seek to understand why some former manufacturing hubs recovered while others didn't. We find that deindustrialization had different effects on local employment depending on the initial share of college-educated workers in the labor force. While in the two decades before the manufacturing peak, cities with a high college share experienced a rate of employment growth similar to those with a low college share, in the decades after the manufacturing peak, the employment trends diverged: cities with a high college share experienced significantly faster employment growth. The divergence grows over time at an accelerating rate. Using an instrumental variable based on the driving distance to historical colleges and universities, we estimate that a one standard deviation increase in local college share results in a rate of employment growth per decade that is 9.1 percentage points higher. This effect is in part explained by faster growth in human capital-intensive services, which more than offsets the loss of manufacturing jobs. |
| Keywords: | manufacturing hubs, spatial heterogeneity, human capital |
| JEL: | J21 R12 J24 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16648&r=eur |
| By: | Johanna Fink |
| Abstract: | This paper estimates how electricity price divergence within Sweden has affected incentives to invest in photovoltaic (PV) generation between 2016 and 2022 based on a synthetic control approach. Sweden is chosen as the research subject since it is together with Italy the only EU country with multiple bidding zones and is facing dramatic divergence in electricity prices between low-tariff bidding zones in Northern and high-tariff bidding zones in Southern Sweden since 2020. The results indicate that PV uptake in municipalities located north of the bidding zone border is reduced by 40.9-48% compared to their Southern counterparts. Based on these results, the creation of separate bidding zones within countries poses a threat to the expansion of PV generation and other renewables since it disincentivizes investment in areas with low electricity prices. |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2312.16161&r=eur |
| By: | Chikako Baba; Ting Lan; Ms. Aiko Mineshima; Florian Misch; Magali Pinat; Asghar Shahmoradi; Jiaxiong Yao; Ms. Rachel van Elkan |
| Abstract: | Geoeconomic fragmentation (GEF) is becoming entrenched worldwide, and the European Union (EU) is not immune to its effects. This paper takes stock of GEF policies impinging on—and adopted by—the EU and considers how exposed the EU is through trade, financial and technological channels. Motivated by current policies adopted by other countries, the paper then simulates how various measures—raising costs of trade and technology transfer and fossil fuel prices, and imposition of sectoral subsidies—would affect the EU economy. Due to its high-degree of openness, the EU is found to be exposed to GEF through multiple channels, with simulated losses that differ significantly across scenarios. From a welfare perspective, this suggests the need for a cautious approach to GEF policies. The EU’s best defence against GEF is to strengthen the Single Market while advocating for a multilateral rules-based trading system. |
| Keywords: | Geoeconomic fragmentation; cross-border restrictions; trade; innovation; multinational production; energy; European Union; Single Market |
| Date: | 2023–11–30 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2023/245&r=eur |
| By: | Marina Chugunova (Max Planck Institute for Innovation and Competition); Anastasia Danilov (HU Berlin) |
| Abstract: | Using a survey with 57 German firms, we evaluate the level of digitalization of the human resource management (HRM) function and document perceived benefits and barriers of technology adoption from organizational and individual users’ perspectives. The results give reason for optimism. Most of the companies report that the core HR processes are digitized. We do not observe adverse effects of the digital HRM tools on users’ job satisfaction and work stress. Still, more than half of companies do not yet use digital tools for strategic HRM decisions. Respondents appreciate the increased speed and cost-efficiency of digital HR processes and associate them with a competitive advantage in talent acquisition. The most prominent barriers to adoption are lack of qualified professionals, high costs, and uncertainty regarding the legal framework. Additionally, we test whether small and medium-sized enterprises differ systematically from larger organizations in how they use digital HRM tools. |
| Keywords: | digital HRM tools; human resource management; digitalization; Germany; |
| JEL: | M12 M15 M50 O33 O52 |
| Date: | 2023–12–18 |
| URL: | http://d.repec.org/n?u=RePEc:rco:dpaper:485&r=eur |
| By: | Bukowski, Pawel; Chrostek, Paweł; Novokmet, Filip; Skawiński, Marek |
| Abstract: | This paper combines micro-level tax data, household surveys and national accounts data to provide consistent series of income distribution in Poland over the 2000-2018 period. We find that inequalities in Poland are one of the largest in Europe. In 2018, the share of pretax and pre-transfer income accrued to the top 10% is 37.4%, to the next 40% is 41.1%, and to the bottom 50% is 21.5%. The top 1% earns 13.4% of the total income. The increase in income inequality during this period was largely driven by high business incomes in top income shares. The extent of redistribution in Poland is modest. The tax system is regressive at the top of the income distribution due to lower taxation of business income and the low burden of social contributions. Finally, we show that top income groups are dominated by business owners, males, and big city dwellers, and these groups have been the largest beneficiaries of Poland’s strong growth since 2000. Gender inequality has been high and stable in Poland, with a steeply decreasing female share with income rank (e.g. the share of females in top 0.1% group was 18% in 2018) . |
| JEL: | D31 H24 |
| Date: | 2023–12–01 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:121036&r=eur |
| By: | AMORES Antonio F (European Commission - JRC); CHRISTL Michael; DE AGOSTINI Paola (European Commission - JRC); DE POLI Silvia; MAIER Sofia (European Commission - JRC) |
| Abstract: | The hike in energy prices across Europe in 2022 and 2023 led to significant government interventions. Several governments introduced ‘energy price cap’ measures to alleviate the increased burden on households’ expenditures. This paper presents an ex ante assessment of the expected distributional impact of the inflation surge and the cushioning effect of these price cap policies introduced in 2023 in Germany, the Netherlands and Austria. Our analysis combines macroforecasting techniques with microsimulation methods and shows that the inflationary shock of 2023 will more severely affect those households at the bottom of the income distribution. Our results also highlight that the price cap measures will only partly absorb the negative distributional consequences of the inflationary shock while it would completely offset the increase in energy poverty. Additionally, we show that simpler measures, such as lump-sum cash transfers, are more efficient (considering government's budgetary costs) in cushioning the inequality-increasing effects of inflation, especially when such measures are targeted. Price caps, on the other hand, are more efficient in reducing energy poverty, given the non-negligible incidence of energy poverty in middle-income groups. |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:taxref:202311&r=eur |
| By: | Jonathan Créchet (Department of Economics, University of Ottawa, Ottawa, ON); Étienne Lalé (Department of Economics, York University); Linas Tarasonis (CEFER, Bank of Lithuania) |
| Abstract: | We propose new data moments to measure the role of life-cycle worker flows between employment, unemployment and out of the labor force in shaping cross-country differences in aggregate employment. We then show that a suitably extended version of the Diamond-Mortensen-Pissarides model can capture well these data moments. Two features of the model are crucial for this result: heterogeneity in match quality and endogenous search intensity. We examine the implications of this model for the sources of employment dispersion across Europe's largest countries, assessing the contribution of factors related to (i) the production technology, (ii) search, and (iii) policies. The sources of cross-country employment dispersion differ substantially across ages. Technology factors account for most of the employment variance of youths and prime-age workers, whereas search and policies are the main drivers of employment differences for older individuals. |
| Keywords: | Employment, Unemployment, Labor Force Participation, Life cycle, Worker Flows, Labor Market Institutions |
| JEL: | E02 E24 J21 J64 J82 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ott:wpaper:2306e&r=eur |
| By: | Joran Douhard; Bruno Van Pottelsberghe |
| Abstract: | What is the return to investment in sustainable materials for houses? This research question is addressed through Life Cycle Assessments and Life Cycle Cost analyses of two reference houses and their “sustainable” alternatives in Belgium. The most striking results are that (1) the operational stage accounts for about 65% of the total impact of a house; (2) a 1 € investment in sustainable materials induces a drop of 1 to 1.3 KgCO2eq; (3) this impact fluctuates across elements, with higher returns for widows (-3 to -6 KgCO2eq) and for external walls (-6 KgCO2eq) and the lowest for ground floor (-0.3 KgCO2eq). |
| Keywords: | Life Cycle Assessment (LCA), Life Cycle Cost (LCC), single family house, sustainability, carbon footprint |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:ict:wpaper:2013/365977&r=eur |
| By: | Marcin Rzeszutek (Faculty of Psychology, University of Warsaw, Poland); Jorgen Vitting Andersen (CNRS, Centre d'Economie de la Sorbonne); Adam Szyszka (Warsaw School of Economics, Collegium of World Economy, Warsaw, Poland); Szymon Talaga (The Robert Zajonc Institute for Social Studies, University of Warsaw, Poland) |
| Abstract: | This study aims at connecting the behavioral corporate finance (micro level) perspective and complexity theory along with agent-based modelling in order to analyze the impact of selected behavioral managerial factors on aggregated data related to the financial market stability (macro level). Specifically, we want to explore whether subjective well-being (SWB) of corporate managers (CEOs) impacted their business decisions during the Covid-19 pandemic, and how it may be related to volatility of stock prices and the issue of financial stability during this critical period. Our study is based on a survey of 255 managers of companies listed on the Warsaw Stock Exchange in Poland over the period . Using the results of this survey, we build an agent-based model (ABM) calibrated for the specific case of Poland to investigate how decision making of CEOs, stemming from their SWB, influence the stock prices and selected financial market dynamics indicators. The results of our study indicate that the excess volatility of stock prices may be a function of changes of SWB of managers, which in turn could lead to some crashes on the macro level with respect to financial stability |
| Keywords: | subjective well-being; CEO; Covid-19; agent-based model |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:mse:cesdoc:23017&r=eur |
| By: | Lorenzo Carbonari (DEF and CEIS, Università degli Studi di Roma Tor Vergata, Italy); Alessio Farcomeni (DEF, Università degli Studi di Roma Tor Vergata, Italy); Filippo Maurici (DEF, Università degli Studi di Roma Tor Vergata, Italy); Giovanni Trovato (DEF and CEIS, Università degli Studi di Roma Tor Vergata, Italy) |
| Abstract: | Using data from 16 OECD countries over the period 1981-2011, this paper studies how different policy announcements affect economic growth in situations of fiscal consolidation. We focus on government announcements regarding reductions in expenditure and increases in taxation. We use a mediation analysis to uncover the direct and indirect effects elicited by such announcements. We find that during debt consolidation periods, announcements related to consolidation plans have no direct impact on GDP growth. However, spending cuts announcements have substantial negative indirect effects, resulting in overall negative total effects, while tax increases have negligible indirect and overall impacts. Our findings propose a new interpretation of the results of Alesina et al. (2015b): in terms of announcements, once accounting for indirect effects, spending cuts are more harmful to growth than tax hikes. |
| Keywords: | fiscal adjustment, economic growth, causal mechanisms, mediation analysis |
| JEL: | E62 H60 H63 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:rim:rimwps:23-18&r=eur |
| By: | Zinke, Jonas (Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI)) |
| Abstract: | As redispatch costs and their associated distributional impacts continue to rise, the discussion on reconfiguring bidding zones in European power markets persists. However, determining an appropriate bidding zone configuration is a non-trivial task, as it must prove beneficial under varying weather conditions, load situations, and an uncertain future, essentially necessitating persistent benefits. This paper uses the German-Luxembourg market area as an example to investigate the impact of uncertain factors, such as short-term weather patterns and long-term system changes, on the potential reduction of redispatch costs resulting from a two-zone split. Employing hierarchical clustering on hourly time series of Locational Marginal Prices for multiple historical weather and future scenario years, the paper derives bidding zone splits and assesses their robustness regarding redispatch cost reduction. Sensitivities to uncertain factors such as grid and renewable expansion, demand development, and fuel prices are investigated. The results indicate that a north-south split of the German-Luxembourg market area can robustly reduce redispatch costs.The impact on the reduction potential of yearly weather fluctuations is limited, owing to the structural nature of grid bottlenecks. However, the long-term transformations within the powersystem, coupled with their associated uncertainties, can significantly diminish the potential forcost reduction through a bidding zonesplit. |
| Keywords: | Market Design; Bidding Zone Review; Electricity Markets; Nodal Pricing; Energy System Modeling; Renewable Energies |
| JEL: | C61 D47 Q40 Q48 |
| Date: | 2023–12–05 |
| URL: | http://d.repec.org/n?u=RePEc:ris:ewikln:2023_007&r=eur |
| By: | Laurent Franckx |
| Abstract: | We present a total cost of ownership (TCO) analysis per market segment and powertrain of new cars sold in Belgium. We differentiate our results between cars sold to private households and company cars. Even though the median TCO of electric cars is lower than the median TCO of conventional powertrains in several market segments, there is a significant overlap in the TCOs of different powertrains in each market segment. It is therefore important to consider the whole distribution of the TCO. |
| Keywords: | Electric vehicles |
| JEL: | H22 H23 L62 L92 R48 |
| Date: | 2023–06–29 |
| URL: | http://d.repec.org/n?u=RePEc:fpb:wpaper:202305&r=eur |
| By: | Laurent Franckx |
| Abstract: | In Belgium, the Law on Fiscal and Social Greening of Mobility of 25 November 2021 eliminates corporate tax deductibility for all company cars except those with zero CO2 emissions.  The main effect of the tax reform is an accelerated electrification of the company car fleet and an accelerated decline in CO2 emissions. Compared to the no-reform scenario, the reform leads to an increase in net tax revenues of about 1 billion euro on an annual basis. |
| Keywords: | Company car taxation, Fiscal reform, Car demand, CO2, Car fleet greening, Discrete choice modelling |
| JEL: | C25 H2 H3 Q58 R48 |
| Date: | 2022–10–12 |
| URL: | http://d.repec.org/n?u=RePEc:fpb:wpaper:202206&r=eur |
| By: | Martin Lnenicka; Anastasija Nikiforova; Mariusz Luterek; Petar Milic; Daniel Rudmark; Sebastian Neumaier; Caterina Santoro; Cesar Casiano Flores; Marijn Janssen; Manuel Pedro Rodr\'iguez Bol\'ivar |
| Abstract: | Open government and open (government) data are seen as tools to create new opportunities, eliminate or at least reduce information inequalities and improve public services. More than a decade of these efforts has provided much experience, practices, and perspectives to learn how to better deal with them. This paper focuses on benchmarking of open data initiatives over the years and attempts to identify patterns observed among European countries that could lead to disparities in the development, growth, and sustainability of open data ecosystems. To do this, we studied benchmarks and indices published over the last years (57 editions of 8 artifacts) and conducted a comparative case study of eight European countries, identifying patterns among them considering different potentially relevant contexts such as e-government, open government data, open data indices and rankings, and others relevant for the country under consideration. Using a Delphi method, we reached a consensus within a panel of experts and validated a final list of 94 patterns, including their frequency of occurrence among studied countries and their effects on the respective countries. Finally, we took a closer look at the developments in identified contexts over the years and defined 21 recommendations for more resilient and sustainable open government data initiatives and ecosystems and future steps in this area. |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2312.00551&r=eur |
| By: | Denitsa Angelova (Institute for Sustainable Resources, Bartlett School of Environment Energy & Resources, University College London); Andrea Bigano (Euro-Mediterranean Center on Climate Change (CMCC); RFF-CMCC European Institute on Economics and the Environment (EIEE)); Francesco Bosello (Euro-Mediterranean Center on Climate Change (CMCC); Department of Environmental Sciences, Informatics and Statistics, Ca' Foscari University of Venice); Shouro Dasgupta (Euro-Mediterranean Center on Climate Change (CMCC)); Silvio Giove (Department of Economics, Ca' Foscari University of Venice) |
| Abstract: | This paper proposes a transparent and replicable methodology to rank countries according to climate change risk through a composite indicator approach. We show that adherence to the IPCC definition of risk easily leads to a dominance of the exposure component in risk determination. This, on its turn, produces a country risk ranking that can differ also substantively from that of other indicators used for similar purposes, especially by rating agencies. These last indicators are, in fact, closer to the concept of vulnerability to climate change, than risk. Our major conclusion is that by accounting for all the components of risk, the dichotomy "high-climate-change-risk developing countries" vs "low climate-change-risk developed countries" blurs substantively, while climate risk becomes relatively higher than commonly considered in the latter group. |
| Keywords: | climate risk, physical climate risk, climate risk index, composite indicator |
| JEL: | Q5 Q54 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ven:wpaper:2023:28&r=eur |
| By: | Mr. Serhan Cevik; Sadhna Naik |
| Abstract: | Households across Europe are struggling with a double crisis—the worst inflation shock since the World War II and a sudden correction in house prices. There is a rich literature on how housing price cycles affect consumer spending, finding mixed results with a wide range of consumption responses to changes in housing wealth. In this paper, using quarterly data on 20 countries in Europe over the period 1980–2023, we analyze the dynamic relationship between inflation-adjusted housing wealth and consumer spending and obtain statistically significant and economically intuitive results. Household consumption responds positively and swiftly to changes in real house prices and gross disposable income as expected. Using the estimated coefficients, we can deduce that the average quarter-on-quarter decline of -1.96 percent in real house prices in the first quarter of 2023 in Europe could dampen consumer spending by about -0.51 percentage points in real terms on a cumulative basis over a horizon of eight quarters. |
| Keywords: | House prices; wealth effects; consumer spending; Europe |
| Date: | 2023–12–08 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2023/256&r=eur |
| By: | CERUTTI Isabella (European Commission - JRC); NARDO Michela (European Commission - JRC) |
| Abstract: | This note is focused on the supply chain of semiconductor products, the chips, increasingly at the core of the digital transformation. It identifies EU stance in the world supply chain, its dependency on non-EU products and technologies and provides a non-exhaustive overview of its vulnerabilities, discussing the challenges of listing a complete set of dependencies. The semiconductor supply chain is highly specialized and complex with a worldwide dimension and a strong interdependency among firms. In the EU value chain, nearly 80% of input suppliers and 63% of customers to the companies in the chain are located outside the EU, defining the boundaries of EU vulnerability and its dependence on geopolitical considerations. EU dependency on foreign jurisdictions appears at different levels of the supply chain. The provision of raw materials and intermediate inputs, the dependency on water and energy are only some examples of potential sources of vulnerabilities if natural or man-made risks occur. This study is part of the activities of the European Semiconductor Expert Group, which aims at preparing the ground for the implementation of the future European Chips Act. It stems from the mapping of EU companies operating in the semiconductor supply chain undertaken at EU level, and complements the European Semiconductor value chain consultation which has been undertaken in the second half of 2022. |
| Date: | 2023–09 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc133850&r=eur |
| By: | Gaëtan de Menten; Caroline Hambye; Bernhard Klaus Michel; Guy Trachez |
| Abstract: | A macro-economic analysis of the activity of multinational groups is of particular interest for economic policy in a country like Belgium with a longstanding tradition of openness to foreign investment. This working paper combines a database of enterprise groups that are active in Belgium with industry-level data from the national accounts to show that multinational groups play an important role in the Belgian economy. Together, foreign affiliates and firms that are part of a Belgian multinational group account for more than 40% of GDP, 25% of total employment and 75% of exports. |
| JEL: | C67 C81 D57 F15 F23 |
| Date: | 2022–05–31 |
| URL: | http://d.repec.org/n?u=RePEc:fpb:wpaper:202205&r=eur |
| By: | Sean Ennis (UEA - University of East Anglia [Norwich]); Marc Ivaldi (TSE-R - Toulouse School of Economics - UT Capitole - Université Toulouse Capitole - UT - Université de Toulouse - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Vicente Lagos (IP Paris - Institut Polytechnique de Paris) |
| Abstract: | This paper examines the impact of most favored nation (MFN) clauses on retail prices, taking advantage of two natural experiments that changed vertical contracting between hotels and major digital platforms. The broad E.U. intervention narrowed the breadth of "price parity" obligations between hotels and major Online Travel Agencies (OTAs). Direct sales by hotels to customers subsequently became relatively cheaper. Comparisons with hotel pricing outside the E.U. confirm the reduction in prices for mid-level and luxury hotels. France and Germany went further and eliminated all price-parity agreements. This stronger intervention was associated solely with a significant additional price-reducing effect for mid-level hotels in Germany. Overall, wide MFNs are associated with higher retail prices. Regulating MFNs reduced prices with primary effects coming either from the narrow price-parity intervention or, perhaps, from direct sales becoming cheaper than OTAs in both E.U. and non-E.U. countries, and, interestingly, not from complete elimination of MFNs. |
| Keywords: | Price Parity Clause (PPC), Most favored nation (MFN), Most favored customer (MFC), Hotel Industry, Impact Evaluation, Online Travel Agency (OTA), digital platforms |
| Date: | 2023–05 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04315828&r=eur |
| By: | Mehdi El Herradi; Aurélien Leroy |
| Abstract: | Central banks have recently adjusted their communication strategies to enhance engagement with the general public, yet there is limited understanding of public sentiment regarding monetary policy announcements. This paper investigates whether monetary policy announcements influence household (subjective) well-being in Germany over the period 2002-2018 and finds that tightening surprises reduce life satisfaction. Notably, the impact of a one standard deviation monetary policy shock on well-being is equivalent to a 4% decline in household income. This effect is particularly pronounced among middle-aged individuals and those belonging to the middle-class. |
| Keywords: | Monetary policy; Subjective Well-Being; Survey data; Euro Area |
| Date: | 2023–12–01 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2023/248&r=eur |
| By: | Priscila Espinosa (Department of Applied Economics, Universitat de València, Spain); Daniel Aparicio-Pérez (Department of Finance and Accounting, Universitat Jaume I, Castellón, Spain; Department of Applied Economics, Universitat de València, Valencia, Spain); Emili Tortosa-Ausina (IVIE, Valencia and IIDL and Department of Economics, Universitat Jaume I, Castellón, Spain) |
| Abstract: | The European Union’s Next Generation EU (NGEU) program and its implementation through the Recovery and Resilience Facility (RRF) were conceived with the premise of promoting a coordinated fiscal response within the European Union to ad- dress the challenges arising from the COVID-19 crisis. The program provides Member States with access to grants and concessional loans aimed at supporting their recovery and resilience plans, which must incorporate coherent packages of reforms and investments. We evaluate the regional economic impact of the NGEU program in Spain, as one of the European countries most affected by the pandemic and, therefore, one of the program’s main beneficiaries. To do so, we employ counterfactual techniques, which are particularly useful when considering alternative scenarios, such as the existence or absence of NGEU funds. It is noteworthy that the use of counterfactual models involves an inherent conservatism that warrants caution in interpreting the results. According to our results, the economic impact led to an increase in GDP per capita during 2022, a perspective that is projected into 2023 and 2024, compared to a scenario without NGEU funds. This analysis, aligned with the principles of counterfactual models and their inherent conservatism, sheds light on the economic transformations attributable to the implementation of these exceptional measures. |
| Keywords: | counterfactual, COVID-19, fiscal multipliers, Next Generation EU funds, regions, synthetic control method |
| JEL: | C32 E27 E60 H50 R10 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:jau:wpaper:2023/07&r=eur |
| By: | PEREZ ARRIBAS Zahara (European Commission - JRC); VIDAL ABARCA GARRIDO Candela; WOLF Oliver (European Commission - JRC) |
| Abstract: | On 25 January 2017, the EU Ecolabel criteria for ‘Tourist accommodation’ were established in Commission Decision 2017/175, within the scheme of the EU Ecolabel Regulation (Regulation (EC) No 66/2010). This User Manual (UM) is a practical tool that summarises the steps to be followed by EU Ecolabel applicants in order to verify the compliance with the abovementioned Commission Decision. More concretely, this manuscript supports the interpretation of the EU Ecolabel criteria for ‘Tourist accommodation’, and provides a good and up-to-date overview of the existent legislation and initiatives behind each EU Ecolabel criterion. This document also gives practical explanation on how to assess and verify the compliance check. The UM aims to optimise the time and ease the procedures of all the actors involved in the application stage by improving the technical understanding of sustainable product policy among intended audience (external stakeholders) and boost the number of certified tourist accommodation services products. |
| Date: | 2023–10 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc133332&r=eur |
| By: | Jacques Bughin; Francis Hintermann; Philippe Roussière |
| Abstract: | Digitisation has long been central to the efforts of business organisations globally. The resulting efficiencies are undoubtedly crucial as businesses struggle through such adverse circumstances as viruses, wars, and economic headwinds. Now, however, there is ample evidence to show that there is a newer technological card that companies should strongly consider laying on the table. |
| Keywords: | Crisis, European companies, AI |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:ict:wpaper:2013/365934&r=eur |
| By: | Aurélie Méjean (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École des Ponts ParisTech - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique); Antonin Pottier (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École des Ponts ParisTech - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique, CMB - Centre Marc Bloch - MEAE - Ministère de l'Europe et des Affaires étrangères - Bundesministerium für Bildung und Forschung - M.E.N.E.S.R. - Ministère de l'Education nationale, de l’Enseignement supérieur et de la Recherche - CNRS - Centre National de la Recherche Scientifique); Stéphane Zuber (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique); Marc Fleurbaey (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement) |
| Abstract: | Climate policy is often described by economists as an intertemporal consumption trade-off: consume all you want today and face climate damages in the future, or sacrifice consumption today to implement costly climate policies that will bring future benefits through avoided climate damages. If one assumes enduring technological progress, a society that is more averse to intertemporal inequalities should postpone climate policies and let future, richer generations pay more. Growing evidence however suggests that the trade-off is more complex: abrupt, extreme, irreversible changes to the climate may cause discontinuities to socio-economic systems, possibly leading to a sharp decline of human population and consumption per capita. In this paper, we show that, when accounting for a very small risk of catastrophic climate change, it is optimal to pursue stringent climate policies to postpone the catastrophe. Our results conform with the well-known conclusion that tight carbon budgets are preferred when aversion towards inequalities between generations is low. However, by contrast with previous studies, we show that stringent policies are also optimal when inequality aversion is high. The non-monotonicity of the influence of inequality aversion is due to the fact that, for a given investment in abatement, a higher inequality aversion gives a smaller weight to avoided future non-catastrophic damages, but a larger weight to the catastrophic outcome. We also explore the role of population ethics, and show that the size of the optimal carbon budget decreases with the social preference for large populations, although this parameter plays almost no role at extreme levels of inequality aversion. Our result demonstrates that views from opposite sides of the ethical spectrum in terms of inequality aversion converge in terms of climate policy recommendations, warranting immediate climate action. |
| Keywords: | Climate change, Catastrophic risk, Equity Population, Climate-economy model |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:hal:cesptp:halshs-04158009&r=eur |
| By: | Diana Barro (Department of Economics, Ca' Foscari University of Venice); Marco Corazza (Department of Economics, Ca' Foscari University of Venice); Gianni Filograsso (Department of Economics, Ca' Foscari University of Venice) |
| Abstract: | Through ESG assessment, companies can effectively measure their exposure to environmental, social, and governance (ESG) risks identifying opportunities for long-term sustainable growth and future social and environmental impact. This process is crucial for listed small and medium-sized enterprises (SMEs) wanting additional support in their ESG transition. The importance of such assessments will only intensify in the future as the implementation of the Sustainable Finance Disclosure Regulation (SFRD) and the Corporate Sustainability Reporting Directive (CSRD) will require all listed companies to be on equal footing. In this contribution, we propose to apply a multi-criteria method (MURAME) to assess the sustainability profiles of SMEs. The methodology, which allows for measuring a firm's environmental, social, and governance (ESG) efforts, is applied to a sample of European-listed SMEs with the aim of identifying ESG leaders and laggards and analyzing potential sector-specific effects. The obtained ranking results show some degree of robustness across different model parameterizations. Furthermore, we propose to model the benefits of voluntary disclosure of sustainability information under a prudential scoring framework. |
| Keywords: | corporate social responsibility, sustainability policy, small- and medium-sized enterprises, multi-criteria decision making |
| JEL: | C44 Q56 M14 O16 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ven:wpaper:2023:27&r=eur |
| By: | Schlund, David (Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI)) |
| Abstract: | The introduction of clean hydrogen as a future energy commodity has prompted significant interest in developing dedicated transportation and storage infrastructures as an enabler for cross-border hydrogen trade and cost-efficient supply. This paper addresses the complex challenges associated with the development of a European hydrogen infrastructure within the existing natural gas network while maintaining the security of supply for natural gas. Through an extension of an existing dispatch model for European natural gas supply and transportation by endogenous investments in hydrogen production, transportation, and storage infrastructure, a comprehensive analysis of the interplay between natural gas and hydrogen supply becomes accessible. The new model is formulated as a mixed-integer linear program in order to explicitly consider the binary decision of repurposing natural gas pipelines. The results offer insights into the cost-efficient strategic planning of a European hydrogen network by simulating a range of scenarios with varying economic and technical constraints. The case study finds a dominant role of the availability of renewable energy sources in shaping the network. Also, providing flexibility through flexible imports, production, or hydrogen storage becomes an essential element in a future hydrogen supply chain. The interconnection of all European countries with dedicated hydrogen pipelines is robust across all scenarios. However, the sizing and choice of large import pipelines strongly depend on the assumed techno-economic constraints. |
| Keywords: | hydrogen economics; hydrogen infrastructure; hydrogen storage; hydrogen trade; strategic energy planning; mixed-integer linear program |
| JEL: | C61 L95 M20 Q41 Q42 Q48 |
| Date: | 2023–12–05 |
| URL: | http://d.repec.org/n?u=RePEc:ris:ewikln:2023_008&r=eur |
| By: | PEREZ ARRIBAS Zahara (European Commission - JRC); VIDAL ABARCA GARRIDO Candela; WOLF Oliver (European Commission - JRC) |
| Abstract: | On 2 May 2018, the EU Ecolabel criteria for ‘indoor cleaning services’ were established in Commission Decision 2018/680, within the scheme of the EU Ecolabel Regulation (Regulation (EC) No 66/2010). This User Manual (UM) is a practical tool that summarises the steps to be followed by EU Ecolabel applicants in order to verify the compliance with the abovementioned Commission Decision. More concretely, this manuscript supports the interpretation of the EU Ecolabel criteria for ‘indoor cleaning services’, and provides a good and up-to-date overview of the existent legislation and initiatives behind each EU Ecolabel criterion. This document also gives practical explanation on how to assess and verify the compliance check. The UM aims to optimise the time and ease the procedures of all the actors involved in the application stage by improving the technical understanding of sustainable product policy among intended audience (external stakeholders) and boost the number of certified indoor cleaning services products. |
| Date: | 2023–10 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc133323&r=eur |
| By: | FATICA Serena (European Commission - JRC); PYCROFT Jonathan; STASIO Andrzej Leszek (European Commission - JRC); STOEHLKER Daniel (European Commission - JRC) |
| Abstract: | We examine the effect of compliance frictions in reclaiming foreign withholding taxes on Foreign Portfolio Investments (FPI) using a comprehensive panel of FPI stocks of 83 countries, including EU Member States, between 2005 and 2019 and country-pair-specific withholding tax rates. We find a negative and statistically significant elasticity of the FPI stock of equity and debt holdings to non-refundable withholding taxes. The estimated elasticities imply that a 10 percentage point reduction in non-refundable withholding taxes increases the FPI stock of equity holdings by 8.2%. In a second step, we employ a general equilibrium model to quantify the macroeconomic implications of compliance frictions. In absence of costs in the withholding tax reclaim process, average GDP in the EU27 countries would increase by 0.10%, capital and wages would rise by 0.21% and 0.06%, respectively, suggesting noticeable macroeconomic costs arising from such compliance frictions. |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:taxref:202309&r=eur |
| By: | Svetlana Klessova; Sebastian Engell; Catherine Thomas (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis (1965 - 2019) - CNRS - Centre National de la Recherche Scientifique - UCA - Université Côte d'Azur) |
| Abstract: | Publicly funded multi-actor research, development and innovation projects are a setting where a network of multiple organizational actors form a temporary consortium to jointly create new knowledge and market-upstream innovations. The couplings between the organizational actors and sub-groups of these actors represent joint work that leads to flows of knowledge and flows of activities. The dynamics of the couplings in this empirical context and their implications are not well understood yet. Using an inductive comparative multiple case study of projects funded in European Research and Innovation Programmes, we investigated 4 projects with 54 organizational actors, which produced 50 innovations. The evolutions of all couplings went through the same phases, although the temporality of the phases differed. We identified eight types of evolutions of couplings and their underlying generative mechanisms. These evolutions led to different, mostly negative implications on the planned collaborative innovations. Particularly, we observed a systematic degradation of the couplings that were planned to connect sub-groups of organizational actors. Over time, the projects became less collaborative than planned, and they have a tendency to fragment into isolated activities by subgroups of actors. Based on these findings, we propose an emerging process model which helps to better understand how and why the couplings evolve in multi-actor RDI projects. |
| Keywords: | multi-actor projects, collaborative innovation |
| Date: | 2022–07 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04314362&r=eur |
| By: | Börschlein, Erik-Benjamin (Institute for Employment Research (IAB), Nuremberg, Germany); Bossler, Mario (Institute for Employment Research (IAB), Nuremberg, Germany); Gürtzgen, Nicole (Institute for Employment Research (IAB), Nuremberg, Germany ; Univ. Regensburg); Kubis, Alexander (Institute for Employment Research (IAB), Nuremberg, Germany); Küfner, Benjamin (Institute for Employment Research (IAB), Nuremberg, Germany); Pohlan, Laura (Institute for Employment Research (IAB), Nuremberg, Germany); Popp, Martin (Institute for Employment Research (IAB), Nuremberg, Germany) |
| Abstract: | "The IAB Job Vacancy Survey is a quarterly and representative establishment survey on labour demand and recruitment processes in Germany. The survey identifies the overall stock of vacancies in the German labour market, including those vacancies that are not reported to the Federal Employment Agency (FEA). The first module of the questionnaire collects information about the number and structure of vacancies, future personnel requirements, about the current economic situation and the expected development of participating establishments. The second module enquires employer attitudes and firm use of current labour market instruments as well as the employer handling of persons disadvantaged in the labor market. The third module asks for information about the last new hire and the last case of a failed recruitment effort. The Research Data Centre of the Federal Employment Agency offers the data sets of the survey waves from 2000 onwards." (Author's abstract, IAB-Doku) ((en)) |
| Keywords: | Bundesrepublik Deutschland ; IAB-Open-Access-Publikation ; Datenqualität ; Hochrechnung ; Datensatzbeschreibung ; IAB-Stellenerhebung ; Stichprobe ; 10.5164/IAB.IABSE0020.de.en.v1 ; 2000-2021 |
| Date: | 2023–12–14 |
| URL: | http://d.repec.org/n?u=RePEc:iab:iabfda:202317(en)&r=eur |
| By: | TORRECILLAS JODAR Juan (European Commission - JRC); PAPAZOGLOU Michail (European Commission - JRC); CALZA Elisa (European Commission - JRC); CARDONA Melisande; VAZQUEZ-PRADA BAILLET Miguel (European Commission - JRC) |
| Abstract: | This report presents a wide-ranging analysis of private investments related to the Digital Decade thematic areas in the European Union (EU) in comparison with other relevant economic actors. The report examines investments in gigabit, 5G, semiconductors, edge computing, quantum technology, and the adoption of cloud computing, big data, and artificial intelligence by businesses. Results reveal that the EU presents lower levels of investments than the US and China in several digital sectors, particularly in fixed broadband coverage, 5G, and semiconductors. While European firms perform well in edge computing investments, they lag behind in venture capital funding compared to the US and China. Additionally, the EU faces investment shortages in the adoption of cloud computing, big data, and AI, with Chinese firms showing substantial investments and revenues in these areas. These results suggest that increased investments and support to enhance the EU's digital competitiveness could be needed in order to achieve the objectives of the Digital Decade Policy Programme. |
| Date: | 2023–09 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc134743&r=eur |
| By: | Cui, Hao |
| Abstract: | In the era of algorithmic pricing, there is increasing recognition of the importance of data security. Various countries have begun to establish their own data protection regimes. The most widely discussed are the radically different regimes in the EU and the US, while China has taken a unique direction in data protection development after absorbing the experiences of both Europe and the US and combining them with its own political characteristics. This paper explores the relationship between algorithmic pricing and data protection, and argues for the development of a data protection regime to address data security challenges in the era of algorithmic pricing. Through comparative legal research, this paper compares the data protection legal regimes of the European Union, the United States and China from three perspectives: legal principles, international impact and case applications. Through comparative analyses, this paper concludes that a comprehensive data protection regime is more effective than data regulations scattered in various documents. By studying the comparative analysis of three countries, especially the international impact of the EU data protection regime, this paper concludes that a global data protection standard can be recognised and summarised. Such a standard should have four basic elements: 1) the comprehensive empowerment of data subjects, 2) effective and independent intervention by supervisory authorities, 3) a strict ex ante preventive review mechanism, and 4) a satisfactory ex-post relief system. This paper suggests that each country’s data protection system can be designed with reference to this standard and in the light of the specific conditions of the country. In summary, the comparative analyses in this paper provide new perspectives for an in-depth understanding of the changes in data protection legal regimes in different countries in the era of algorithmic pricing. This will help promote more effective data protection laws and policymaking around the world. |
| Date: | 2023–08–31 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:g6z3h&r=eur |
| By: | Rafael Andersson Lipcsey |
| Abstract: | This thesis aims to assess the importance of the air transport sector for Sweden's economy in the context of the COVID-19 pandemic. Two complementary research goals are formulated. Firstly, investigating economic linkages of the Swedish air transport sector. Secondly, estimating the effects of the pandemic on Swedish air transport, and the spin-off effects on the economy as a whole. Overview of literature in the field reveals that while a fair amount of research exists on the importance of air transport, unsurprisingly, pandemic effects have yet to be investigated. The methodological framework chosen is input-output analysis, thus, the backbone of data materials used is the Swedish input-output table, complemented by additional datasets. For measuring economic linkages, basic input-output analysis is applied. Meanwhile, to capture the pandemic's impacts, a combination of inoperability analysis and the partial hypothetical extraction model is implemented. It is found that while Swedish air transport plays an important role in turning the cogs of the Swedish economy, when compared to all other sectors, it ranks on the lower end. Furthermore, while the COVID-19 pandemic has a detrimental short-term impact on Swedish air transport, the spin-off effects for the economy as a whole are milder. It is concluded, that out of a value-added perspective, the Swedish government, and by extension policy makers globally need not support failing airlines, and other air transport actors. Nonetheless, some aspects could not be captured through the methods used, such as the possible importance of airlines to national security at times of dodgy global cooperation. Lastly, to accurately capture not only short-term, but also long-term effects of the pandemic, future research using alternative, causality-based frameworks and dynamic input-output models will be highly beneficial. |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2312.06694&r=eur |
| By: | Miklós Koren (Central European University, Centre for Economic and Regional Studies, Centre for Economic and Policy Research, CESifo); Krisztina Orbán (Monash University) |
| Abstract: | Good management practices are important determinants of firm success. It is unclear, however, to what extent pro-management policies can shape aggregate outcomes. We use data on corporations and their top managers in Hungary during and after its post-communist transition to document a number of salient patterns. First, the number of managers is low under communism when most employment is in large conglomerates. After the transition to capitalism, the number of managers increased sharply. Second, economics and business degrees became more popular with capitalist transition. Third, newly entering managers tended to run smaller firms than incumbent managers. We build a dynamic equilibrium model to explain these facts. In the model, the number and average quality of managers react to schooling and career choice. We use the model to evaluate hypothetical policies aiming to improve aggregate productivity through management education and corporate liberalization. Our results suggest that variations in the supply of good managers are important to understand the success of management interventions. |
| Keywords: | Keywords: management, productivity |
| JEL: | E24 O15 O40 |
| Date: | 2023–09 |
| URL: | http://d.repec.org/n?u=RePEc:has:discpr:2329&r=eur |
| By: | TUOMI Ilkka; CACHIA Romina (European Commission - JRC); VILLAR ONRUBIA Daniel (European Commission - JRC) |
| Abstract: | This report identifies key emerging technologies and discusses their potential impact in education. Drawing on academic research and grey literature, it focuses on a set of ongoing technical developments that could redefine education, and society at large, in fundamental ways. It provides insights into the affordances of those technologies and important societal implications, discussing how they may reconfigure education against the background of learning theory. It also takes into account the socio-material basis of digital technologies, as well as key factors —such as climate change, demographic transitions, environmental concerns and the growth of mental health problems among the young— that are shaping the emerging educational landscape. The report aims to go beyond the state-of-the-art and facilitate richer discussions on the potential impact of emerging technologies in education in order to support long-term strategic thinking. Based on that, it offers recommendations to ensure that future policy actions are aligned with the societal and educational needs. |
| Date: | 2023–09 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc134308&r=eur |
| By: | Gilles Lepesant (GC (UMR_8504) - Géographie-cités - UP1 - Université Paris 1 Panthéon-Sorbonne - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - UPCité - Université Paris Cité, CMB - Centre Marc Bloch - MEAE - Ministère de l'Europe et des Affaires étrangères - Bundesministerium für Bildung und Forschung - M.E.N.E.S.R. - Ministère de l'Education nationale, de l’Enseignement supérieur et de la Recherche - CNRS - Centre National de la Recherche Scientifique) |
| Keywords: | energy, Germany, Industry |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-04009197&r=eur |
| By: | Ruipeng Liu (Department of Finance, Deakin Business School, Deakin University, Australia); Mawuli Segnon (Department of Economics, University of Munster, Germany); Oguzhan Cepni (Department of Economics, Copenhagen Business School, Denmark; Ostim Technical University, Ankara, Turkiye); Rangan Gupta (Department of Economics, University of Pretoria, Private Bag X20, Hatfield 0028, South Africa) |
| Abstract: | This paper adopts a bivariate Markov switching multifractal (MSM) model to reexamine co-movement in stochastic volatility between commodity, foreign exchange (FX) and stock markets. After the 2007-2008 global financial crisis understanding volatility linkages and the correlation structure between these markets becomes very important for risk analysts, portfolio managers, traders, and governments. Using daily data on stock indices and FX rates from developed and emerging countries and a range of commodities such crude oil, natural gas, aluminum, copper, gold, silver, platinum, wheat, corn, soybean and soybean oil we find evidence of (re)correlation between commodity, FX and stock markets. The bivariate MSM model compares favorably to a bivariate DCC-GARCH and univariate MSM model, especially at short (1, 5 and 10 days) forecasting horizons. Furthermore, we discuss its implications for risk and portfolio management. |
| Keywords: | Multifractal processes, Volatility co-movement, Commodity returns, Foreign exchange returns, Stock returns |
| JEL: | C53 C58 G15 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:pre:wpaper:202340&r=eur |
| By: | Johannes Breckenfelder (European Central Bank); Pierre Collin-Dufresne (École Polytechnique Fédérale de Lausanne; Swiss Finance Institute; NBER); Stefano Corradin (European Central Bank) |
| Abstract: | We document a recurring pattern in German sovereign bond prices during the Eurosystem's Public Sector Purchase Program (PSPP): a predictable rise towards month-end, followed by a subsequent drop. We propose a sequential search-bargaining model, capturing salient elements of the PSPP's implementation, such as the commitment to transact within an explicit time horizon. The model suggests that this predictable pattern emerges as a consequence of imperfect competition among dealers who are counterparties to the Eurosystem. Predicated on the model's implications, we find that the price fluctuations are markedly accentuated: (a) for bonds specifically targeted by the PSPP, (b) during monthly intervals wherein the Eurosystem engages with a lower number of counterparties, and (c) when the Eurosystem aims for a larger purchase amount. Finally, we explore the potential consequences of our findings for the design and implementation of future asset purchase programs. |
| Keywords: | Quantitative Easing, Sequential Search-Bargaining Model, Imperfect Competition, Dealers, Financial Market Design |
| JEL: | G12 G21 E52 E58 |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:chf:rpseri:rp23104&r=eur |
| By: | António Afonso; José Alves; Sofia Monteiro |
| Abstract: | We assess the impact of geopolitical risk and world uncertainty on the sovereign debt risk of 26 European Economies during the period 1984-2022, through the implementation of OLS-Fixed Effects regressions and the Generalized Method of Moments (GMM). We find that geopolitical tensions and global uncertainty in border countries contribute to the rise of European country’s sovereign risk as measured by 5- and 10-year Credit Default Swaps (CDS) and bond returns. Moreover, this interconnection is more pronounced during turbulent times such as the subprime crisis. Lastly, we found that geopolitical tensions in other country’ groups such as South America and Asia have a significant impact on the government risks of European countries. |
| Keywords: | geopolitical risk, world uncertainty, political tensions, sovereign risk, European economy, GMM, subprime crisis |
| JEL: | C23 E44 G32 H63 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_10801&r=eur |
| By: | Dimmelmeier, Andreas |
| Abstract: | This FinVis explores the evolving landscape of Environmental, Social, and Governance (ESG) information providers, focusing on their geographical distribution and consolidation dynamics. Utilizing a novel dataset of 143 ESG firms, the figure maps the headquarters and Merger and Acquisition (M&A) interactions across three time periods. The findings reveal the dominance of Europe and North America, which concentrate the ownership of over 80% of active firms. In particular, the acquisition trends depict North America's growing influence in the ESG information industry. |
| Date: | 2023–12–15 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:8zejr&r=eur |
| By: | Börschlein, Erik-Benjamin (Institute for Employment Research (IAB), Nuremberg, Germany); Bossler, Mario (Institute for Employment Research (IAB), Nuremberg, Germany); Gürtzgen, Nicole (Institute for Employment Research (IAB), Nuremberg, Germany ; Univ. Regensburg); Kubis, Alexander (Institute for Employment Research (IAB), Nuremberg, Germany); Küfner, Benjamin (Institute for Employment Research (IAB), Nuremberg, Germany); Pohlan, Laura (Institute for Employment Research (IAB), Nuremberg, Germany); Popp, Martin (Institute for Employment Research (IAB), Nuremberg, Germany) |
| Abstract: | "The IAB Job Vacancy Survey is a quarterly and representative establishment survey on labour demand and recruitment processes in Germany. The survey identifies the overall stock of vacancies in the German labour market, including those vacancies that are not reported to the Federal Employment Agency (FEA). The first module of the questionnaire collects information about the number and structure of vacancies, future personnel requirements, about the current economic situation and the expected development of participating establishments. The second module enquires employer attitudes and firm use of current labour market instruments as well as the employer handling of persons disadvantaged in the labor market. The third module asks for information about the last new hire and the last case of a failed recruitment effort. The Research Data Centre of the Federal Employment Agency offers the data sets of the survey waves from 2000 onwards." (Author's abstract, IAB-Doku) ((en)) |
| Keywords: | Bundesrepublik Deutschland ; IAB-Open-Access-Publikation ; Datenqualität ; Hochrechnung ; Datensatzbeschreibung ; IAB-Stellenerhebung ; Stichprobe ; 10.5164/IAB.IABSE0020.de.en.v1 ; 2000-2021 |
| Date: | 2023–12–14 |
| URL: | http://d.repec.org/n?u=RePEc:iab:iabfda:202317(de)&r=eur |
| By: | Margarian, Anne |
| Abstract: | In 2022, Germany and other countries in the world experienced a period of strong price increases not seen for a long time. Agricultural products and food, among others, were particularly affected by these price increases. This has led to many discussions on the causes and consequences of price increases in the food value chain. This study aims to provide a sound basis for such discussions. It describes the price developments and inflation trends of food in a macroeconomic context and along agricultural value chains. The last 30 years are considered. The dynamics of various price indices are analysed on the one hand, and national accounts data on the other. These allow the identification of implicit inflation rates, which show how the market valuation of the value added by an industry itself evolves independently of the price evolution of its inputs. The possible relationship between price developments and changes in sectoral turnover, value added and operating surpluses is also examined. The descriptive analyses are suitable for dispelling some myths about food inflation. The discussion of price developments confirms that, with the exception of cereals, agricultural producer prices have developed consistently weaklier than consumer prices and, in particular, input prices within the value chains. However, this does not necessarily mean a deterioration in the sectoral situation if productivity increases and structural change is successful. In fact, the analysis of implicit inflation rates confirms that the market valuation of the services provided by agriculture itself, i.e., its gross value added, is also developing relatively positively compared to other industries. The same applies to the sector's gross operating surpluses. In addition, the national accounts data used suggest that the construction industry has greater opportunities for favourable pricing than industries in the much-discussed food value chain, including food retailing. Over the past 30 years, the construction industry, the food industry and agriculture have shown a weak development of price-adjusted (real) GVA while at the same time experiencing high implicit inflation rates, i.e. relatively strong nominal growth. The analyses also show that positive price trends in agriculture in particular are often less the result of direct market power than of constrained supply in the face of rising demand. With regard to the food trade, it has become clear that taking the wholesale level into account is important for understanding price trends. Wholesale prices for food rose more sharply overall than retail prices during the observation period and the wholesale sector's return on sales was higher than that of the food retail sector, whose return on sales was lower than that of the retail sector as a whole. Since the turn of the millennium, the retail sector as a whole has seen below-average growth in the market valuation of its own value added. Furthermore, this implicit inflation in the retail sector is not significantly positively correlated with the development of consumer prices. All this does not mean that food retailers or other stages of the food value chain do not exercise market power. Given the strong structural change at all stages of the value chain, the aggregate figures may be of limited informative value for the competitiveness of the larger and growing remaining firms. More generally, the study shows that, given the complexity of market interrelationships, it is not possible to draw simple conclusions from price and inflation developments alone about changes in the competitive positions of industries or the allocation of income between them. |
| Keywords: | Consumer/Household Economics, Demand and Price Analysis, Financial Economics |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ags:jhimwp:339084&r=eur |
| By: | Phoebe Koundouri; Konstantinos Dellis; Angelos Plataniotis |
| Abstract: | This paper delves into the multifaceted impacts of climate change on Europe. It examines the immediate risks, including infrastructure damage and health crises, and explores the broader socio-economic consequences. The paper highlights Europe's strategic responses, such as the European Green Deal, and its efforts in pioneering innovative, sustainable solutions. Key initiatives like the Net-Zero Cities program and the role of Public-Private Partnerships are discussed, emphasizing the need for holistic, cross-sector collaboration. It also addresses the financial mechanisms and regulatory frameworks crucial for supporting the green transition. Ultimately, the paper underscores the EU's commitment to a sustainable, resilient future, balancing economic growth with environmental stewardship. |
| Date: | 2023–12–21 |
| URL: | http://d.repec.org/n?u=RePEc:aue:wpaper:2320&r=eur |
| By: | Vincent Giolito (EM - emlyon business school); Damon Golsorkhi (EM - emlyon business school) |
| Abstract: | "Based on 21 in-depth interviews with chief executive officers (CEOs) and board chairs leading 900, 000 people in large financial firms in Europe, this study surfaces the acknowledgment of strategic errors in top executives' narratives as a broad theme associated with strategy change. This theme is intriguing because errors are typically associated with negative connotations undermining leaders' self-image and credibility. More specifically, this study identifies in top executives' error narratives a dialectic process consisting of mobilizing errors and de(if)fusing errors or distancing themselves from them; the paper models seven narrative practices within the process. As a first contribution to narrative research on strategy and change, this study introduces strategic errors as a narrative trigger in top executives' retrospective accounts of strategy change, frequently associated with the plausible economic failure of their firms. Second, while extant research generally focuses on the coherence of individual narratives, this study adds on the relatively rare studies recognizing a dialectic in individual narratives on change." |
| Keywords: | Chief executive officers, Decisions under risk/uncertainty, Organizational failure, Sensemaking theory, Qualitative Methods, Strategy as practice |
| Date: | 2023–08–18 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04325740&r=eur |
| By: | TANGI Luca (European Commission - JRC); COMBETTO Marco; MARTIN BOSCH Jaume; RODRIGUEZ MÜLLER Paula (European Commission - JRC) |
| Abstract: | This report provides the result of a research study conducted within the context of the Public Sector Tech Watch, an observatory developed by DG DIGIT, with the support of the Joint Research Centre (JRC), that provides a knowledge hub and a virtual space where public administrations, civil society, GovTech companies and researchers can find and share knowledge and experience. The report’s primary goal is to offer an analysis of how Artificial Intelligence (AI) systems are improving interoperability in the European Public Sector. The findings are based on three pillars: (i) a literature and policy review on the synergies between AI and interoperability; (ii) a quantitative analysis of a selected set of 189 use cases fitting the purpose of the research question; and (iii) a qualitative study going deeper into some illustrative cases. The findings highlight that the one-fourth of the cases collected are using AI techniques to support interoperability through a varied set of applications. Moreover, the semantic interoperability layer is fundamental in most of the cases. In addition, ontologies and taxonomies combined with AI can help in establishing interoperability between different systems. The solutions analysed classify, detect and provide structure, among other actions performed on data. Hence, AI has the capability to standardise, clean, structure and increase the usage of large volumes of data, thus improving overall quality and making it easier to use and share between different systems. |
| Date: | 2023–10 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc134713&r=eur |
| By: | Kim, Ji Hyeon (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)) |
| Abstract: | 본 연구에서는 Digital Policy Alert 데이터베이스를 활용하여 디지털 정책과 규제의 추세와 현황을 살펴보았으며, 주요국을 중심으로 그 세부내역을 검토하였다. 이를 바탕으로 우리나라 디지털 정책과 규제의 대응 방향을 제시 하였다. Digital policies and regulations are changing rapidly in advanced and major emerging economies. Based on the newly built Digital Policy Alert data, we found 3, 876 changes in digital policies and regulations in major countries such as US, EU, China, and India. This is the result of governments’ efforts to embrace the digital age and create a fair and stable digital economy. However, we do not have an accurate understanding of digital policies and regulations’ content around the world. This report aims to provide policy implications for our government’s policy making by objectively analyzing the international trends and status of digital policies and regulations and reducing uncertainty about foreign countries. Digital trade, which is the trade of goods and services through digital means, has increased worldwide due to the development of digital technology. It can be divided into Business-to-Customer(B2C) and Business-to-Business(B2B) trade. By 2023 B2C trade is expected to reach $6 trillion and B2B trade $24.4 trillion. Asia, in particular, accounts for a large share of digital trade, accounting for more than 50% of the world’s B2C trade and on average 78% of B2B trade in 2022. Korea’s digital trade in goods is also expanding, and the proportion of its exports to China and Japan is decreasing while that to Europe is increasing. According to existing data, such as that from the OECD and EUI, the level of restrictions on digital services trade around the world is generally increasing. If we look at the regulatory environment of digital trade more broadly, there are many restrictive measures, but the level of restriction is not very high. Specifically, the level of openness in e-commerce and intellectual property rights have increased. On the other hand, the level of restriction in infrastructure and connectivity, or data is the highest. The level of restriction in other areas, which includes online advertising ban, local presence requirements, is also increasing. By region, Europe and North America have the most open regulatory environment, while Central Asia and South Asia have the most restrictive regulatory environment. East Asia-Pacific’s regulatory environment is more restrictive than the global average.(the rest omitted) |
| Keywords: | Digital policy; digital regulation; digital trade; e-trade; e-commerce |
| Date: | 2023–12–11 |
| URL: | http://d.repec.org/n?u=RePEc:ris:kiepre:2023_006&r=eur |
| By: | Basharina, Olga; Baranova, Nina; Larin, Sergey |
| Abstract: | Subject. Sanction restrictions sharply decreased possibilities to attract external borrowings and substantiated the expediency of internal investments. This necessitated software tools enabling calculations and investment decisions. The developed a digital model of ISPI (Information System Portfolio Investor) will help make smart investment decisions, including at the government level. Objectives. The study aims to build a digital model to identify the most attractive investment areas at the regional, country, and cross-country level. Methods. The ISPI model is based on the Markowitz portfolio theory, the Profitability-Risk Model (PRM), and optimization methods. For our calculations, we used yields on Major and Sector Indices of the UK, India, China, USA, France, South Africa for 2014–2021, in one-month increments. Results. Using the developed ISPI model, we constructed scatter plots of leading stock market indices and identified the leading sectors of national economies of the studied countries and the most attractive investment areas. We solved the problem of finding a global optimum for the studied countries, differentiated the leading economic sectors by the level of investment risk, determined that an international portfolio is the most preferable for investment. Conclusions. Our ISPI model helps investors identify a region or country for smart investments. The model enables to determine industries in which investing is most justified within the nearest investment horizon. The model also helps identify the most appropriate financial instruments for investing in individual countries. |
| Keywords: | economic entity, economic development, ISPI digital model, effective investment solution. |
| JEL: | E22 F63 G11 G17 O5 |
| Date: | 2023–09–28 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:119334&r=eur |
| By: | Kohnert, Dirk |
| Abstract: | Since Russia's war in Ukraine, many European countries have been scrambling to find alternative energy sources. One of the answers was to increase imports of liquefied natural gas (LNG). By bypassing the use of pipelines from the East by building LNG terminals, the EU opened up a wider variety of potential suppliers. The Europe-Africa Energy and Climate Partnership provides a framework for a win-win alliance. African countries will be key players in the future, including sub-Saharan countries such as Nigeria, Senegal, Mozambique and Angola. According to the REPowerEU plan, hydrogen partnerships in Africa will enable the import of 10 million tons of hydrogen by 2030, replacing about 18 billion cubic meters of imported Russian gas. Algeria, Niger and Nigeria recently agreed to build a 4, 128-kilometer trans-Saharan gas pipeline that would run through the three countries to Europe. Once completed, the pipeline will transport 30 billion cubic meters of gas per year. The African Coalition for Trade and Investment (ACTING) estimates potential sub-Saharan LNG export capacity at 134 million tonnes of LNG (approximately 175 billion m3) by 2030. Sub-Saharan Africa is also expected to become the main producer of green hydrogen by 2050. However, this market remains to be developed and requires significant expansion of renewable production and water availability. However, the EU countries and companies involved would be well advised to take note of the adoption of much stricter EU greenhouse gas reduction targets for 2030 and the publication of the European Commission's methane strategy. That being said, the EU could risk having more than half of Europe's LNG infrastructure idle by 2030, as European LNG capacity in 2030 exceeds total forecast gas demand, including LNG and pipeline gas. Regardless, it should not be forgotten that African countries want and need to develop their domestic gas markets as a priority, and that export potential depends on this domestic development. In the long term, a global energy mix would be needed to accelerate change driven by new resources, new technologies and climate commitments. These changes in the use and availability of energy resources would also affect the use of fossil fuels. Regardless of this, in addition to the LNG supply, the EU must also take care of increasing its own storage capacities to be able to guarantee a cost-efficient response to a natural gas supply bottleneck. However, LNG alone is not enough to ensure the resilience of the system in the event of a supply failure. Alternative energy resources and energy saving remain essential. |
| Keywords: | GNL; Économie hydrogène; e-carburants; Terminaux GNL; Gaz naturel; Sécurité énergétique; Stockage de gaz; Afrique subsaharienne; UE; REPowerEU; Gazoduc transsaharien; marchés émergents; Pacte vert pour l'Europe; Zone de libre-échange; continentale africaine; Eni, TotalEnergies; BP; Sonatrach; Nigeria; Angola; Mozambique; Tanzanie; Sénégal; Cameroun; Guinée équatoriale; Namibie; Études africaines; |
| JEL: | E22 E23 F13 F18 F23 F35 F54 L71 L95 N57 N77 O13 Q35 Z13 |
| Date: | 2023–12–10 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:119420&r=eur |
| By: | REID Alasdair; STEWARD Fred; MIEDZINSKI Michal (European Commission - JRC) |
| Abstract: | The report provides guidance on applying a mission-oriented approach to smart specialisation strategies (S3) to address societal challenges and achieve the sustainable development goals (SDGs). Challenge-led missions are systemic frameworks that help align S3 with ambitious societal goals, and provide strategic direction to the implementation of policy instruments and projects mobilised through S3. The report focuses on areas relevant to mission implementation, including framing challenge-led missions, designing policy mix for missions, developing concrete practises to support mission implementation, and adapting the monitoring and evaluation system. The authors propose mission-oriented roadmapping framework to improve the coherence and directionality of policy instruments and processes mobilised through missions. The report was prepared in close cooperation with policy makers from the Czech Ministry of Industry and Trade responsible for the Czech national S3 strategy. The publication is aimed at policymakers in Europe and beyond who are responsible for designing and implementing innovation policies that address sustainability challenges and goals such as the SDGs. |
| Date: | 2023–09 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc134466&r=eur |
| By: | Kim, Key Hwan (Korea Institute for Industrial Economics and Trade); Kang, Ji Hyun (Korea Institute for Industrial Economics and Trade) |
| Abstract: | The new green industry bill (known as la loi industrie verte) in France can be seen as the French version of the United States’ Inflation Reduction Act (IRA). The bill introduces new subsidies for electric vehicles (EVs), necessitating an analysis of the possible impact of these subsidies on Korean industries. The EV subsidies of the IRA are designed to relocate production and assembly of finished vehicles and key components parts back to the United States or the countries with which the US has free trade agreements (FTAs) in place. The EV subsidies introduced by the new bill in France, on the other hand, base subsidization on the carbon footprints of EV production and distribution. The new system of EV subsidies seeks to reduce the carbon footprint in six major areas of EV manufacturing: steel, aluminum, other materials, battery production, assembly, and transportation. This system effectively favors EVs produced in European countries, whose industries make more use of renewable energy and which are closer to France, at the cost of EV makers in China and elsewhere in Asia, as the long distances involved in transportation essentially preclude them from subsidization, and constitute non-tariff barriers (NTBs). Serving environmental and industrial objectives simultaneously, the new bill embodies an important paradigm shift in policymaking. From a trade perspective, this shift in the focus of protectionist policymaking from intermediate goods such as EV batteries to finished goods such as EVs threatens to see NTBs erected at every stage of the value chain in which these finished goods are produced. More barriers to trade under protectionist statutes like the IRA and France’s new green industry are likely to prompt the reintegration of markets and production bases after decades of geographical separation. Korean businesses will therefore be forced to change their business model, from an export-led approach that favored production in Korea to a model in which they increasingly produce goods in target markets. This has the potential to hollow out Korean industries. The manufacturing-driven Korean economy needs to adapt to new global reality radically different from the heyday of globalization, when major importing countries were neutral about foreign manufacturers. |
| Keywords: | electric vehicles; EVs; batteries; secondary batteries; Inflation Reduction Act; IRA; la loi industrie verte; France; subsidies; EV subsidies; non-tariff barriers; NTBs; protectionism; economic nationalism; economic security; reshoring; France; Korea |
| JEL: | H23 H25 K32 L60 L62 Q56 Q58 |
| Date: | 2023–09–29 |
| URL: | http://d.repec.org/n?u=RePEc:ris:kietrp:2023_016&r=eur |
| By: | Jonathan Beynon (Center for Global Development) |
| Abstract: | The scale, source, and allocation of climate finance have been contentious aspects of the Paris Agreement and its implementation. Central to these are questions of “fair shares”: who might contribute what and whether the group of contributors should be expanded. New analysis presented here concludes that there is a case for nontraditional donors providing 20-30 percent of any total, with this finding robust to a variety of different measures of historical emissions, cut-off dates, and income. China, Russia, South Korea, Saudi Arabia, Taiwan, Poland, the United Arab Emirates, and Mexico consistently feature in the top 20. Developed countries, however, should continue to take primary responsibility, with the United States shouldering at least 40 percent of the burden in virtually all scenarios. The politics of climate finance will continue to be difficult, but it is hard to escape the conclusion that both the United States and China will need to provide more. |
| Date: | 2023–11–01 |
| URL: | http://d.repec.org/n?u=RePEc:cgd:ppaper:311&r=eur |