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on Microeconomic European Issues |
| By: | Bentolila, Samuel (CEMFI, Madrid); Cabrales, Antonio (University College London); Jansen, Marcel (Universidad Autónoma de Madrid) |
| Abstract: | This paper analyzes the causal impact of dual vocational education and training (VET) on the labor market insertion of youth. Using matched education and social security records, we estimate the causal impact of a major reform that introduced a new dual track, which combines firm- and school-based training, on the labor market outcomes of the first three dual VET cohorts in the Spanish region of Madrid. The control group is composed of individuals who graduated in the same fields and years in school-based VET. Selection into dual VET is dealt with using a distance-based instrumental variable. Dual VET is found to generate sizeable improvements in employment and earnings, but no significant impact on job quality. The results are not driven by pre-reform differences in the quality of the schools that adopted dual VET and the higher retention rate of dual VET graduates only partly explains the dual premium. |
| Keywords: | dual vocational education and training, school-to-work transi- tion, Spain |
| JEL: | D92 G33 J23 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16688&r=eur |
| By: | Engberg, Erik (Örebro University); Görg, Holger (Kiel Institute for the World Economy); Lodefalk, Magnus (Örebro University); Javed, Farrukh (Örebro University); Längkvist, Martin (Örebro University); Monteiro, Natália Pimenta (University of Minho); Kyvik Nordås, Hildegunn (Council on Economic Policies); Schroeder, Sarah (Aarhus University); Tang, Aili (Örebro University) |
| Abstract: | We unbox developments in artificial intelligence (AI) to estimate how exposure to these developments affect firm-level labour demand, using detailed register data from Denmark, Portugal and Sweden over two decades. Based on data on AI capabilities and occupational work content, we develop and validate a time-variant measure for occupational exposure to AI across subdomains of AI, such as language modelling. According to the model, white collar occupations are most exposed to AI, and especially white collar work that entails relatively little social interaction. We illustrate its usefulness by applying it to near-universal data on firms and individuals from Sweden, Denmark, and Portugal, and estimating firm labour demand regressions. We find a positive (negative) association between AI exposure and labour demand for high-skilled white (blue) collar work. Overall, there is an up-skilling effect, with the share of white-collar to blue collar workers increasing with AI exposure. Exposure to AI within the subdomains of image and language are positively (negatively) linked to demand for high-skilled white collar (blue collar) work, whereas other AI-areas are heterogeneously linked to groups of workers. |
| Keywords: | artificial intelligence, labour demand, multi-country firm-level evidence |
| JEL: | E24 J23 J24 N34 O33 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16717&r=eur |
| By: | Sarah McNamara (ZEW Mannheim); Guido Neidhöfer (ZEW Mannheim); Patrick Lehnert (University of Zurich) |
| Abstract: | We estimate intergenerational mobility of education for people born 1940-1999 at the subnational level for 40 European countries. The result is a panel of mobility indices for 105 mesoregions (NUTS1), and 215 microregions (NUTS2). We use these indices to make three contributions. First, we describe the geography of intergenerational mobility in Europe. Second, adapting a novel weighting procedure based on cohorts’ relative economic contribution, we transform cohort-linked measures into annual measures of intergenerational mobility for each region. Third, we investigate the relationship between intergenerational mobility and innovation, and find robust evidence that higher mobility is associated with increased innovation. |
| Keywords: | Intergenerational Mobility, Equality of Opportunity, Human Capital, Innovation, Regional Economic Performance, Europe |
| JEL: | D63 I24 J62 O15 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:inq:inqwps:ecineq2024-664&r=eur |
| By: | Kauma, Bridget; Mion, Giordano |
| Abstract: | We propose a new data resource that attempts to overcome limitations of standard firm-level datasets for the UK (like the ARD/ABS) by building on administrative data covering the population of UK firms with at least one employee. We also construct a similar dataset for France and use both datasets to: 1) Provide some highlights of the data and an overall picture of the evolution of aggregate UK and French productivity and markups: 2) Analyse the spatial distribution of productivity in both countries at a fine level of detail - 228 Travel to Work Areas (TTWAs) for the UK and 297 Zones da'emploi (ZEs) for France - while focusing on the role of economic density. Our findings suggest that differences in firm productivity across regions are magnified in the aggregate by an increasing productivity return of density along the productivity distribution. |
| Keywords: | firm-level dataset; merging; BSD; FAME; VAT; FICUS; FARE; productivity; markups; UK; France; regional disparities; density |
| JEL: | R12 D24 |
| Date: | 2023–11–01 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:121301&r=eur |
| By: | Diva Astinova; Mr. Romain A Duval; Mr. Niels-Jakob H Hansen; Ben Park; Mr. Ippei Shibata; Mr. Frederik G Toscani |
| Abstract: | Three years after the COVID-19 crisis, employment and total hours worked in Europe fully recovered, but average hours per worker did not. We analyze the decline in average hours worked across European countries and find that (i) it is not cyclical but predominantly structural, extending a long-term trend that predates COVID-19, (ii) it mainly reflects reduced hours within worker groups, not a compositional shift towards lower-hours jobs and workers, (iii) men—particularly those with young children—and youth drive this drop, (iv) declines in actual hours match declines in desired hours. Policy reforms could help involuntary parttimers and women with young children raise their actual hours towards desired levels, but the aggregate impact on average hours would be limited to 0.5 to 1.5 percent. Overall, there is scant evidence of slack at the intensive margin in European labor markets, and the trend fall in average hours worked seems unlikely to reverse. |
| Keywords: | hours worked; working hours; labor market; Europe |
| Date: | 2024–01–12 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2024/002&r=eur |
| By: | Bukowski, Pawel; Chrostek, Pawel; Novokmet, Filip; Skawinski, 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 pre-tax 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). |
| Keywords: | inequality; Poland; growth; redistribution; gender gap |
| JEL: | N0 E6 |
| Date: | 2023–12–06 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:121282&r=eur |
| By: | Dolores Añon Higón (Department of Applied Economics II and ERI-CES, Faculty of Economics, Universitat de València, Avda. Tarongers, s/n, 46022 Valencia (Spain)); Ionnanis Bournakis (SKEMA Business School. Avenue Willy Brandt. 59777 Euralille, France) |
| Abstract: | We examine the relationship between firms’ participation in global value chains (GVCs) and price markups. We use data from 14, 316 firms in six European countries obtained from AMADEUS data linked to the EFIGE project. There is substantial heterogeneity between countries and industries in terms of firm-specific time variant markups. After controlling for sample selection bias using coarsened exact matching (CEM), we find that firms involved in exporting produced-to-order goods and importing service and material inputs have between a three and four percent markup premium relative to nontrading firms. Our results remain robust to alternative definitions of GVC participation, different data matching techniques (Propensity Score Matching) and different markup estimates. Our findings contribute to the scarce but increasingly significant literature on markup heterogeneity and provide ample opportunities for designing industrial policies. |
| Keywords: | FDI, migration, elasticity of substitution, gender, discrimination |
| JEL: | F21 F22 F23 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:eec:wpaper:2403&r=eur |
| By: | Dorothée Charlier (IREGE - Institut de Recherche en Gestion et en Economie - USMB [Université de Savoie] [Université de Chambéry] - Université Savoie Mont Blanc); Mouez Fodha (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); Djamel Kirat (LEO - Laboratoire d'Économie d'Orleans [2022-...] - UO - Université d'Orléans - UT - Université de Tours - UCA - Université Clermont Auvergne) |
| Abstract: | This paper examines the determinants of residential CO 2 emissions, which are not covered by the European Union Emissions Trading System (EU ETS), in 19 European countries between 2000-2017. Using both static and dynamic panel models, we found strong relationships between CO 2 emissions per capita, GDP per capita, energy prices and heating needs. We then assessed the impact of European carbon taxation and show that a e20/tonne CO 2 tax lowers emissions by 1% on average. We found that this tax affects countries differently in terms of tax revenue-to-GDP ratio. Poland and the Czech Republic would have to pay the highest contribution, and Portugal and Denmark the lowest. Finally, we propose a scenario that equalizes countries' tax burdens. We show that, were Europe to redistribute all tax revenues, the main beneficiaries would be Poland and Belgium, while Denmark and Luxembourg would have to pay a surtax. |
| Keywords: | CO2 emissions, Residential Sector, Panel data, Energy prices, Carbon tax |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03901487&r=eur |
| By: | Ferreira, Susana (University of Georgia); Martinez-de-Morentin, Sara (Universidad Pública de Navarra); Erro-Garcés, Amaya (Universidad Pública de Navarra) |
| Abstract: | Hedonic wage regressions show little evidence that European workers facing larger job risks and other workplace disamenities receive higher wages. On the other hand, workers in more risky or unpleasant jobs are less satisfied with their jobs, ceteris paribus. If labor markets were perfectly competitive and workers fully informed of their working conditions ex ante, according to the theory of compensating differentials, there should be no relationship between on-the-job risk and job satisfaction because wages would fully adjust to compensate for differences in job characteristics. We show that when wages do not fully compensate for on-the-job risks, the willingness to pay to reduce mortality risks estimated from hedonic regressions needs to be complemented with a residual effect of job risks on utility which is not capitalized on wages. We explore the potential of job satisfaction regressions as an additional valuation approach to estimate the tradeoffs between wages and risks that keep job satisfaction constant. |
| Keywords: | on-the-job risk, experienced preference, job satisfaction, hedonic wages, stated preference, value of a statistical life |
| JEL: | Q51 I12 I18 J17 J31 K32 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16716&r=eur |
| By: | Bertrand Garbinti (CREST - Centre de Recherche en Économie et Statistique - ENSAI - Ecole Nationale de la Statistique et de l'Analyse de l'Information [Bruz] - X - École polytechnique - ENSAE Paris - École Nationale de la Statistique et de l'Administration Économique - CNRS - Centre National de la Recherche Scientifique, CEPR - Center for Economic Policy Research - CEPR); Cecilia García-Peñalosa (AMU - Aix Marseille Université, CNRS - Centre National de la Recherche Scientifique, EHESS - École des hautes études en sciences sociales, Banque de France - Banque de France - Banque de France, CEPR - Center for Economic Policy Research - CEPR, CESifo - CESifo); 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 - Banque de France) |
| Abstract: | This paper is the first to compute lifetime earnings (LTE) in France for a large number of cohorts entering the labour market between 1967 and 1987, and to analyze their main determinants, as well as those of the evolution of the gender gap in LTE. We compare our results with evidence by Guvenen et al. (2022a) for the US, documenting sharp differences between the two countries. Median LTE show similar flat trends in both countries, but in France this results from a moderate increase for both genders together with increased female participation, while in the US, LTE declines for men and sharply grows for women. There have been marked changes in age profiles, as for both genders younger cohorts have experienced a decrease in entry wages that has been more than offset by faster wage growth. Our analysis of inequality finds that it is lower when we focus on LTE than in the cross-section, and that it follows a U-shaped pattern, although the increase is much smaller in France than that observed in the US. Lastly, we also find that i) education (returns and changes in attainment) plays a key role in shaping LTE across cohorts, ii) place of birth has a large influence on lifetime earnings and iii) differences in working time explain an increasing part of the gender gap in LTE over time as both men and women have increased the number of years they work but women have done so largely through part-time employment. |
| Keywords: | Lifetime earnings, inequality, gender earnings gaps |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:hal:ipppap:halshs-04424024&r=eur |
| By: | Paloma Péligry; Xavier Ragot (Sciences Po - Sciences Po) |
| Abstract: | We analyze the convergence or divergence of the diversity of fiscal systems after the financial crisis of 2007. Studying 29 countries, we first document the evolution of the taxation of households, firms, labour, consumption and capital. We identify three types of fiscal systems: liberal, intermediate and high-redistribution, which can be ranked in ascending order of tax rates, confirming known typologies in the diversity of capitalism literature. Only the tax rate on corporate profits shows signs of downward convergence over the period. The other tax rates show rather signs of divergence. Second, a divergence is observed among the liberal and high-redistribution group over the period. The European countries are converging towards the high-redistribution model, with the exception of Great Britain, which is moving towards the liberal model. Thus, the financial crisis seems to contribute not to the convergence, but to the divergence of fiscal systems. |
| Keywords: | tax systems globalization capital taxation JEL classification: H12 H6 P43, tax systems, globalization, capital taxation JEL classification: H12, H6, P43 |
| Date: | 2023–11–08 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04384035&r=eur |
| By: | Amior, Michael (Hebrew University, Jerusalem); Stuhler, Jan (Universidad Carlos III de Madrid) |
| Abstract: | We argue that the arrival of immigrants with low reservation wages can strengthen the monopsony power of firms. Firms can exploit "cheap" migrant labor by offering lower wages, though at the cost of forgoing potential native hires who demand higher wages. This monopsonistic trade-off can lead to large negative effects on native employment, which exceed those in competitive models, and which are concentrated among low-paying firms. To validate these predictions, we study changes in wage premia and employment across the firm pay distribution, during a large immigration wave in Germany. These adverse effects are not inevitable, and may be ameliorated through policies which constrain firms' monopsony power over migrants. |
| Keywords: | immigration, monopsony, firms |
| JEL: | J31 J42 J61 J64 J11 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16692&r=eur |
| By: | Clodomiro Ferreira (Banco de España); José Miguel Leiva (BBVA Research); Galo Nuño (Banco de España); Álvaro Ortiz (BBVA Research); Tomasa Rodrigo (BBVA Research); Sirenia Vazquez (BBVA Research) |
| Abstract: | We identify and study analytically three key channels that shape how inflation affects wealth inequality: (i) the traditional wealth (or Fisher) channel through which inflation redistributes from lenders to borrowers; (ii) an income channel through which inflation reduces the real value of sticky wages and benefits; and (iii) a relative consumption channel through which heterogeneous increases in the prices of different goods affect people differently depending on their consumption baskets. We then quantify these channels during the 2021 inflation surge in Spain using detailed, high-frequency customer-level data from one of the main commercial banks. The unexpected nature of the inflation shock and its perception as temporary in this period in particular closely fit the assumptions behind our theoretical decomposition. Results show that the wealth and income channels are an order of magnitude larger than the consumption channel. Middle-aged individuals were, in net terms, largely unaffected by inflation, while the elderly suffered the most. We find similar results when using representative surveys on households’ wealth, income, and consumption. |
| Keywords: | uneven inflation, net nominal positions, nominal wage rigidities |
| JEL: | G51 D31 E31 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:bde:wpaper:2403&r=eur |
| By: | Haapamäki, Taina; Riukula, Krista; Väänänen, Touko |
| Abstract: | Abstract In economics, the regional densification of economic activity is referred to as agglomeration. The effects of agglomeration are often referred to when discussing the wider economic benefits of transportation infrastructure projects. The magnitude of these effects has not been extensively studied in Finland. In this brief, we present results from a study that examines the effect of agglomeration on productivity in the Helsinki region. Agglomeration, defined as job-to-job accessibility, was found to have a positive effect on employees’ wages. However, the results at the establishment-level are less precise and statistically insignificant. According to the results, increased accessibility increases other operating expenses such as rents, potentially explaining the lack of statistically significant effects on establishment-level productivity. The results indicate that agglomeration benefits are predominantly intraregional, with interregional accessibility having little impact on these benefits. Consequently, the ratio between agglomeration benefits and direct benefits of transportation infrastructure projects varies depending on the project. Taxes and similar payments on increased wages due to accessibility increases could be included as a separate item in cost-benefit analysis. |
| Keywords: | Agglomeration, Productivity, Transport project, Cost-benefit analysis, Accessibility, Wider economic impacts |
| JEL: | R12 R41 R42 |
| Date: | 2024–01–23 |
| URL: | http://d.repec.org/n?u=RePEc:rif:briefs:132&r=eur |
| By: | Alberini, Anna; Vance, Colin |
| Abstract: | With more than 3 million new passenger cars sold every year, Germany's automobile industry is a major player on the European car market, and one seen as an important arena for achieving climate protection targets. Using high-resolution car registration data from each state in Germany between January 2015 to March 2020, we estimate reduced-form panel data models to identify the effects of three flagship policies aimed at reducing transport emissions from cars: diesel bans, rebates for battery vehicles, and subsidies for charging station projects. The models show that the policies have significant effects on the sales of specific powertrains. But policy simulations that incorporate estimates of lifecycle CO2-emissions reveal that they have only negligible effects on emission reductions and are costly. Rebates on the purchase of a battery-electric or plug-in hybrids result in a cost per ton of reduced CO2-emissions of over €1000. Even the most optimistic scenarios result in a cost per ton of CO2-reduced by subsidies for the construction of charging stations of at least €400. These figures are very large when compared with the cost of abatement implicit in the price of allowances on the European Emissions Trading System, with important implications on cross-sectoral trading, such as that envisioned in the European Union's Fit-for-55 program. |
| Abstract: | Mit mehr als 3 Millionen verkauften Neuwagen pro Jahr ist die deutsche Automobilindustrie ein wichtiger Akteur auf dem europäischen Automobilmarkt und gilt als wichtiger Schauplatz für die Erreichung der Klimaschutzziele. Unter Verwendung von detaillierten Kfz-Zulassungsdaten aus allen deutschen Bundesländern für den Zeitraum von Januar 2015 bis März 2020 schätzen wir reduzierte Paneldatenmodelle, um die Auswirkungen dreier politischer Maßnahmen zu ermitteln, die auf die Reduzierung der verkehrsbedingten Emissionen von Pkw abzielen: Dieselfahrverbote, Rabatte für Batteriefahrzeuge und Subventionen für Ladestationen. Die Modelle zeigen, dass diese Maßnahmen erhebliche Auswirkungen auf den Absatz bestimmter Antriebsarten haben. Simulationen, die Schätzungen der CO2-Emissionen über den gesamten Lebenszyklus einbeziehen, zeigen jedoch, dass diese Maßnahmen nur vernachlässigbare Auswirkungen auf die Emissionsreduzierung haben und kostspielig sind. Rabatte für den Kauf eines batterieelektrischen Fahrzeugs oder eines Plug-in-Hybridfahrzeugs führen zu Kosten pro Tonne reduzierter CO2-Emissionen von über 1000 €. Selbst die optimistischsten Szenarien führen zu Kosten pro Tonne CO2, die durch Subventionen für den Bau von Ladestationen reduziert werden, von mindestens 400 €. Diese Zahlen sind sehr hoch, wenn man sie mit den Vermeidungskosten vergleicht, die im Preis der Zertifikate im Europäischen Emissionshandelssystem enthalten sind, was erhebliche Auswirkungen auf den sektorübergreifenden Handel hat, wie er im Fit-for-55-Programm der Europäischen Union vorgesehen ist. |
| Keywords: | New car sales, CO2-emissions, German Bundesländer, policy simulation |
| JEL: | H23 Q48 Q54 R41 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:rwirep:281189&r=eur |
| By: | Colonnello, Stefano; Koetter, Michael; Sclip, Alex; Wagner, Konstantin |
| Abstract: | We show that around one third of executive directors on the boards of national supervisory authorities (NSA) in European banking have an employment history in the financial industry. The appointment of executives without a finance background associates with negative valuation effects. Appointments of former bankers, in turn, spark positive stock market reactions. This 'proximity premium' of supervised banks is a more likely driver of positive valuation effects than superior financial expertise or intrinsic skills of former executives from the financial industry. Prior to the inception of the European Single Supervisory Mechanism, the presence of former financial industry executives on the board of NSA associates with lower regulatory capital and faster growth of banks, pointing to a more lenient supervisory style. |
| Keywords: | banking supervision, conflicts of interest, revolving door |
| JEL: | G14 G21 G28 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:iwhdps:281191&r=eur |
| By: | Pagano, Andrea (European Commission); Bellia, Mario (European Commission); Di Girolamo, Francesca (European Commission); Papadopoulos, Georgios (European Commission) |
| Abstract: | This paper uses a simulation model to evaluate the effects of river flooding events occurring within Germany on regional' banks. Under a 1.5 degrees Celcius increase in temperature, the impact is overall rather small, even accounting for the devaluation of loans exposed to floods. However, under a 3 degrees Celcius increase, bank losses can reach 1% of total assets. We show that the implementation of adaptation solutions would be successful in keeping risks at the current level. |
| Keywords: | Physical risk, river flood events, dynamic balance sheet, banking crisis |
| JEL: | C15 G2 Q54 |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:jrs:wpaper:202313&r=eur |
| By: | Joachim Wagner (Leuphana Universität Lüneburg, Institut für Volkswirtschaftslehre and Kiel Centre for Globalization) |
| Abstract: | The use of robots by firms can be expected to go hand in hand with higher productivity, higher product quality and more product innovation, which should be positively related to export activities. This paper uses firm level data from the Flash Eurobarometer 486 survey conducted in February – May 2020 to investigate the link between the use of robots and export activities in manufacturing enterprises from the 27 member countries of the European Union. Applying standard parametric econometric models and a new machine-learning estimator, Kernel-Regularized Least Squares (KRLS), we find that firms which use robots do more often export, do more often export to various destinations all over the world, and do export to more different destinations. The estimated robots premium for extensive margins of exports is statistically highly significant after controlling for firm size, firm age, patents, and country. Furthermore, the size of this premium can be considered to be large. Extensive margins of exports and the use of robots are positively related. |
| Keywords: | Robots, exports, firm level data, Flash Eurobarometer 486, kernel-regularized least squares (KRLS) |
| JEL: | D22 F14 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:lue:wpaper:426&r=eur |
| By: | Kohnert, Dirk |
| Abstract: | The European Union (EU) finds itself in a critical need for rare earths, particularly the refined products essential for the production of electric cars, turbines, and other technological applications. However, the refining process is not only energy-intensive but also poses significant environmental risks. Consequently, local communities, as evidenced by instances in Spain and Portugal, vehemently oppose having such operations in their vicinity, advocating a "beggar thy neighbour" policy. The EU currently relies heavily on China, which controls the majority of global processing, commanding 90% of all rare earths and 60% of lithium. In response to these challenges, the EU took a crucial step in November 2023 by reaching a preliminary agreement on the European Critical Raw Materials Act (CRMA). This legislative initiative aims to enhance and diversify the EU's supply of critical raw materials (CRM), foster the circular economy, fortify Europe's strategic autonomy, and explore alternatives to mitigate dependence. Recent transnational crises, including disruptions to supply chains during the COVID-19 pandemic and Russia's invasion of Ukraine, underscore the imperative of secure supply chains across all economic sectors. These crises also underscore the significant influence wielded by major emerging economies, notably the BRICS countries (Brazil, Russia, India, China, and South Africa), which dominate key global supply chains, including those for critical raw materials (CRMs). Russia plays a pivotal role as one of the world's largest suppliers of palladium (40% of global supply), the second-largest supplier of platinum (13%) and nickel (12%), and a substantial contributor of aluminium and copper. Furthermore, Russia possesses the potential to emerge as a major player in the rare earths market due to its extensive reserves. The country also accounts for a considerable share of the EU's acquisitions, including palladium (41%), platinum (16%), cobalt (5%), and lithium (4%). Notably, Russia serves as the primary EU source for platinum group metals processing (iridium, platinum, rhodium, ruthenium; 40%), phosphate rock extraction (20%), lithium processing (4%), and scandium processing (1%). To attain greater independence in external CRM provision, the EU must make significant investments in its mining and processing facilities. However, mining represents merely the initial phase; subsequent steps involve the separation of rare earth elements (REE) from oxides, refining, and alloy forging a complex, highly specialized, multi-stage process. In this regard, relative newcomers like Europe lag behind, as China has solidified its dominant position in each phase through a concerted, long-term industrial strategy supported by state subsidies. |
| Keywords: | Seltene Erden; Energiewende; Klimawandel; Umweltverschmutzung; Schwellenländer; strategische Autonomie; Russland; EU; BRICS; Deutschland; Frankreich; Italien; USA; China; Minerals Security Partnership; Critical Raw Materials Act; Industriepolitik; |
| JEL: | D24 D43 D52 E23 F13 F18 F23 F51 F63 F64 L13 L61 L63 L72 N14 N54 O33 O52 Z13 |
| Date: | 2024–02–02 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:120033&r=eur |
| By: | Monia El Akkari (ECOSYS - Ecologie fonctionnelle et écotoxicologie des agroécosystèmes - AgroParisTech - Université Paris-Saclay - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Nosra Ben Fradj (UMR PSAE - Paris-Saclay Applied Economics - AgroParisTech - Université Paris-Saclay - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Benoît Gabrielle (ECOSYS - Ecologie fonctionnelle et écotoxicologie des agroécosystèmes - AgroParisTech - Université Paris-Saclay - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Sylvestre Njakou Djomo (ECOSYS - Ecologie fonctionnelle et écotoxicologie des agroécosystèmes - AgroParisTech - Université Paris-Saclay - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, ICBMS - Institut de Chimie et Biochimie Moléculaires et Supramoléculaires - UCBL - Université Claude Bernard Lyon 1 - Université de Lyon - CPE - École Supérieure de Chimie Physique Électronique de Lyon - INSA Lyon - Institut National des Sciences Appliquées de Lyon - Université de Lyon - INSA - Institut National des Sciences Appliquées - INC-CNRS - Institut de Chimie - CNRS Chimie - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | Bioethanol is promoted as a means of tackling climate change, diversifying energy sources and securing energy supply. However, there also concerns that their wider deployment could lead to unintended environmental consequences. Life cycle assessment (LCA) is a widely used methodology to assess the environmental performance of biofuels. However, its outcomes strongly depend on the inventory data and modeling assumptions. Agronomic variables such as crop yields, nitrogen fertilizer rates or field emissions of nitrous oxide are very sensitive inputs, as are soil carbon dynamics in response to land use changes (LUC) entailed by the deployment of energy crops. Models simulating agroecosystem processes and the economics of agricultural farms are promising tools to predict such variables and improve the reliability of LCA. Here, we combined the agro-ecosystem model CERES-EGC, the farm economic model AROPAj and the LCA approach to investigate the effect of local drivers on the environmental impacts of bioethanol from miscanthus and switchgrass over France. Overall, lignocellulosic bioethanol achieved GHG abatement targets in the 74 %–94 % range compared to gasoline, and complied with the 50 % minimum imposed by European regulations. Miscanthus-based ethanol achieved up to twice lower environmental impacts than switchgrass due to 50 % higher biomass yields overall. Low fertilizer N input rates (in the 0-30 kg N ha-1 yr-1 range) proved the most efficient strategy to optimize energy return. Significant inter-regional variability occurred, especially in terms of soil C sequestration rates, which weighed in substantially on GHG budgets. Some regions were more efficient than others as a result, which advocates a site-specific approach and a potential prioritization when planning biorefineries, taking into account local production and environmental performance potentials. Compared to previous studies, ours provided high-resolution data in terms of crop yields, nitrous oxide emissions and soil C dynamics, factoring in LUC effects at local to regional scales. |
| Abstract: | Le bioéthanol est présenté comme un moyen de lutter contre le changement climatique, de diversifier les sources d'énergie et de garantir l'approvisionnement énergétique. Toutefois, on craint que son déploiement à plus grande échelle n'entraîne des conséquences environnementales imprévues. L'analyse du cycle de vie (ACV) est une méthodologie largement utilisée pour évaluer les performances environnementales des biocarburants. Toutefois, ses résultats dépendent fortement des données d'inventaire et des hypothèses de modélisation. Les variables agronomiques telles que le rendement des cultures, les taux d'engrais azotés ou les émissions d'oxyde nitreux dans les champs sont des données très sensibles, tout comme la dynamique du carbone du sol en réponse aux changements d'utilisation des sols entraînés par le déploiement des cultures énergétiques. Les modèles simulant les processus agroécosystémiques et l'économie des exploitations agricoles sont des outils prometteurs pour prédire ces variables et améliorer la fiabilité de l'ACV. Ici, nous avons combiné le modèle agro-écosystémique CERES-EGC, le modèle économique agricole AROPAj et l'approche ACV pour étudier l'effet des facteurs locaux sur les impacts environnementaux du bioéthanol produit à partir de miscanthus et de switchgrass en France. Dans l'ensemble, le bioéthanol lignocellulosique a atteint des objectifs de réduction des GES de l'ordre de 74 à 94 % par rapport à l'essence, et a respecté le minimum de 50 % imposé par les réglementations européennes. L'éthanol à base de miscanthus a eu jusqu'à deux fois moins d'impact sur l'environnement que le panic érigé, grâce à des rendements en biomasse globalement supérieurs de 50 %. Les faibles taux d'apport d'engrais N (de l'ordre de 0 à 30 kg N ha-1 an-1) se sont révélés être la stratégie la plus efficace pour optimiser le rendement énergétique. Une importante variabilité interrégionale a été observée, notamment en ce qui concerne les taux de piégeage du carbone dans le sol, ce qui a eu un impact considérable sur les bilans de GES. Certaines régions étaient donc plus efficaces que d'autres, ce qui plaide en faveur d'une approche spécifique au site et d'une priorisation potentielle lors de la planification des bioraffineries, en tenant compte des potentiels locaux de production et de performance environnementale. Par rapport aux études précédentes, la nôtre a fourni des données à haute résolution en termes de rendement des cultures, d'émissions d'oxyde nitreux et de dynamique du carbone dans le sol, en tenant compte des effets de l'utilisation durable de l'espace à l'échelle locale et régionale. |
| Keywords: | Life-cycle assessment, Bioethanol Regionalization Economic models, GHG emissions, Perennial energy crops, Life-cycle assessment Bioethanol Regionalization Economic models GHG emissions Perennial energy crops |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04369771&r=eur |
| By: | Pousette, Andreas (IHE - The Swedish Institute for Health Economics); Hofmarcher, Thomas (IHE - The Swedish Institute for Health Economics) |
| Abstract: | This report sheds light on inequalities in cancer care across the EU and provides recommendations for improvement. The report highlights inequalities between and within countries. Five case studies are analyzed relating to HPV vaccination, colorectal cancer screening, biomarker testing, cancer medicines and evidence-based care, access to financial products for survivors (‘the right to be forgotten’). <p> Across the EU, the chances of patients surviving cancer depends crucially on one’s place of residence. For instance, the five-year survival rate of colon cancer ranges from 50% in the worst-performing country to nearly 70% in the best-performing country. For breast cancer, survival rates range from just above 70% to around 90%. One underlying factor contributing to between-country inequalities in patient outcomes may be the level of per-capita spending on cancer care. Spending ranges from €50–100 per capita in Bulgaria, Croatia, Estonia, Latvia, Poland, and Romania to €250–300 in Austria, the Benelux countries, France, and Germany (adjusted for purchasing power parities). However, spending on cancer care only partially seems to explain between-country inequalities. <p> The report emphasizes the critical role of how funds are used to provide high-quality care in order to address inequalities in patient outcomes. For each case study, inequalities across six dimensions (countries, sex, age, education level, socioeconomic status, urbanization level) are studied. The findings reveal large between-country inequalities in the EU along the entire disease pathway, such as HPV vaccination rates of girls ranging from less than 10% in Bulgaria to over 90% in Portugal or colorectal cancer screening rates ranging from around 5% in Bulgaria, Cyprus, and Romania to 76% in Denmark. There are also notable within-country inequalities. Factors such as age, socioeconomic status, and rural/urban place of residence demonstrate high levels of inequalities. Individual aspects relating to health literacy also influence access to cancer care. <p> Common reasons for the observed inequalities between countries include the political prioritization of cancer care, health expenditure on cancer care (funding), availability of supporting infrastructure, availability of medical professionals, up-to-dateness of clinical guidelines. Reasons for inequalities within countries include the level of health literacy and the geographic distance to university hospitals and comprehensive cancer centers. <p> Top-level recommendations to national policymakers to enhance and ensure more equal access to cancer care for everyone are the following: <p> • Improve personal and organizational health literacy of cancer patients and the public <p> • Ensure education and continuous training of medical staff <p> • Adopt innovations in early detection, diagnosis, and treatment of cancer <p> • Take a societal perspective in national cancer control planning <p> • Collect relevant data and continuously evaluate the quality of cancer care services |
| Keywords: | Cancer; inequalities; European Union; Europe’s Beating Cancer Plan; HPV; screening; biomarkers; medicines; right to be forgotten; EU; health economics |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:ihewps:2024_001&r=eur |
| By: | L. Serafini; E. Marrocu; R. Paci |
| Abstract: | This paper focuses on the impact of the Smart Specialisation Strategy (S3) and Industry 4.0 (I4) initiatives during the 2014-2020 programming period on firms' performance in Italy. By analysing European Regional Development Fund (ERDF)-funded projects under these frameworks, we use OpenCoesione data and a Difference-in-Differences approach to assess the effectiveness of S3 and I4 initiatives. Our results reveal that projects integrating I4 technologies within the S3 framework (S3I4 projects) significantly enhance firms' performance. This is particularly evident when compared to projects funded under other ERDF initiatives. The study highlights the importance of aligning S3 and I4 strategies with regional economic profiles and innovation capacities to maximise their impact. Our analysis underscores the role of these initiatives in driving innovation and economic growth. The results offer key insights for policymakers, suggesting that focused and strategic investment in S3 and I4 can lead to more effective regional innovation and development. |
| Keywords: | Industry 4.0;Innovation and firm Performance;Cohesion Policy;Counterfactual Impact Analysis;Smart Specialisation Strategy |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:cns:cnscwp:202403&r=eur |
| By: | Marco Molteni (Geneva Graduate Institute and University of Oxford) |
| Abstract: | This paper employs quantitative and qualitative methods to examine the link between overbanking, banking competition, and financial distress during the interwar period in Europe, focusing on Italy as a case study. Econometric analysis on bank balance sheet data and a systematic review of contemporary printed sources show that banks experiencing distress had opened many branches and were operating in areas with harsher competition. Poor managerial choices had led banks to face higher operational costs, pushing them towards more remunerative but riskier activities. The 1920s saw a profound transformation of the Italian banking system, with extensive branch expansion and cut-throat competition for deposits. This work argues that such changes in the banking system’s structure made it more fragile, exposing it more to the negative effects of the international crisis following the New York Stock Exchange crash in 1929. Available evidence on other European countries suggests that Italy was not an isolated case. The study contributes to the literature on banking crises during the Great Depression and on the relationship between banking competition and financial stability. |
| Keywords: | overbanking, banking competition, banking crises, Great Depression, branch banking, Italy, interwar period |
| JEL: | N14 N24 G01 G21 G32 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:bdi:workqs:qse_51&r=eur |
| By: | International Monetary Fund |
| Abstract: | Selected Issues |
| Date: | 2024–01–24 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfscr:2024/024&r=eur |
| By: | Caglio, Ariela; Laffitte, Sebastien; Masciandaro, Donato; Ottaviano, Gianmarco Ireo Paolo |
| Abstract: | In 2011 UEFA, the governing body of European football, introduced the Financial Fair Play Regulation (FFPR), consisting of a set of financial restraints to be met by clubs as a prerequisite for participation to its competitions. The aim of the FFPR was to introduce financial discipline into the clubs' decision-making processes, and ultimately protect the long-term viability of the European football industry. The reform was criticized because of possible unintended detrimental consequences. In particular, Peeters and Szymanski 2014 provided a model-based ex-ante simulation analysis showing that the reform would increase the profitability of clubs, but also tilt the competitive balance in favor of the top teams, thus reducing the interest of fans and investors as one of the main attractions in sports is precisely that the best team does not always win. Exploiting an original dataset between the seasons 2007-2008 and 2019-2020, we provide an ex-post econometric evaluation of the effects of the introduction of the FFPR revealing causal evidence that largely vindicates those ex-ante predictions. |
| Keywords: | accounting measurement; financial fair play (FFP); financial sustainability; team's quality; competitive balance |
| JEL: | J30 |
| Date: | 2023–10–11 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:121307&r=eur |
| By: | Ropponen, Olli; Koski, Heli; Kässi, Otto; Valmari, Nelli; Ylhäinen, Ilkka; Hirvonen, Johannes |
| Abstract: | Abstract This study examines the allocation of business subsidies introduced due to the COVID-19 pandemic to different types of companies. The results show that most of the supported companies would not have needed the subsidy, as they would have remained profitable also in the absence of it. Furthermore, companies incurring losses before the pandemic (zombie companies) received COVID-19 subsidies more often than other companies. The subsidies also directed more often to companies with productivity lower than the median productivity. The targeting of subsidies to low-productivity companies slows down future productivity development and economic growth, as labor and capital are more likely to remain in less productive businesses. The study also includes a literature review of the economic literature related to business subsidies during the COVID-19 pandemic. |
| Keywords: | Corporate subsidies, Covid-19 pandemic, Subsidy allocation, Covid-subsidy literature |
| JEL: | H22 H25 H32 |
| Date: | 2024–02–05 |
| URL: | http://d.repec.org/n?u=RePEc:rif:report:145&r=eur |
| By: | Acosta-Smith, Jonathan (Organisation for Economic Co‑operation and Development (OECD)); Barunik, Jozef (Institute of Economic Studies, Charles University); Gerba, Eddie (Bank of England); Katsoulis, Petros (Bank of England) |
| Abstract: | At the onset of the Covid‑19 crisis, several regulatory authorities issued a recommendation or request to banks to restrict their dividend and share buyback distributions. The purpose of this action was to increase banks’ resilience by not distributing retained earnings, and help them support the real economy given their unique role in doing so. These restrictions reflected the singular circumstances brought by Covid‑19. We evaluate the impact of these restrictions on banks’ resilience, lending and investors’ required rate of return. First, using a difference‑in‑differences analysis on an international sample of European banks, we find that restricted banks increased their available Common Equity Tier 1 (CET1) capital and resilience in every quarter while the restrictions were fully in place, before gradually reducing it once they were partly lifted. Second, using a data set on the universe of UK small and medium‑sized enterprise (SME) loans issued by nine UK banking groups, we find that restricted banks increased their lending volumes on smaller non‑government guaranteed loans throughout the implementation period. Third, using the international sample of European banks, we find that the restrictions increased shareholders’ required rate of return throughout the implementation period, with the impact on the required rate of return on capital partially offset by lower debtholders’ required rate of return. The results indicate that distribution restrictions can be an effective crisis tool to increase banks’ resilience and lending capacity. |
| Keywords: | Distribution restrictions; Covid-19; required rate of return; lending; pass-through |
| JEL: | C32 G21 G28 G35 |
| Date: | 2024–11–24 |
| URL: | http://d.repec.org/n?u=RePEc:boe:boeewp:1053&r=eur |
| By: | Robert C. M. Beyer; Ms. Ruo Chen; Florian Misch; Claire Li; Ezgi O. Ozturk; Mr. Lev Ratnovski |
| Abstract: | The extent to which changes in monetary policy rates lead to changes in loan and deposit rates for households and firms, referred to as ‘pass-through’, is an important ingredient of monetary policy transmission to output and prices. Using data on seven different bank interest rates in 30 European countries, different approaches, and the full sample as well as a subsample of euro area countries, we show that a) the pass-through in the post-pandemic hiking cycle has been heterogenous across countries and types of interest rates; b) the pass-through has generally been weaker and slower, except for rates of non-financial corporation loans and time deposits in euro area countries; c) differences in pass-through over time and across countries for most deposit rates are correlated with financial sector concentration, liquidity, and loan opportunities, and d) the effects of pass-through to outstanding mortgage rates on monetary transmission on prices and output are heterogenous across countries. |
| Keywords: | Monetary Policy Transmission; Monetary Policy Pass-Through |
| Date: | 2024–01–12 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2024/009&r=eur |
| By: | Karima AFIF (Department of Agri-Food Economics and Consumer Sciences, Faculty of Agriculture and Food Sciences, Université Laval, Canada); Bocar Samba BA (Department of Agri-Food Economics and Consumer Sciences, Faculty of Agriculture and Food Sciences, Université Laval, Canada); Eugénie JOLTREAU (RFF-CMCC European Institute on Economics and the Environment (EIEE), Fondazione Centro Euromediterraneo sui Cambiamenti Climatici (CMCC), Milan, Italy) |
| Abstract: | This paper seeks to theoretically understand the impact of a tax-subsidy system (as implemented in Extended Producer Responsibility) on packaging source reduction, waste generation, and recycling in the presence of economies of scale and quality concerns in the recycling industry. We use a static equilibrium and a non-homothetic technology function to study asymmetric substitution between the virgin and the recycled material. The model displays a trade-off between recycled content and material productivity, and between waste generation and the recycling industry's profitability. A tax-subsidy scheme in the form of an excise charge and a dual subsidy restores the social optimum, providing that the recycler reaches a positive profit. We find that the excise tax favors virgin material and packaging refinement, all else equal. At the same time, it decreases the use of recycled material, sales, and total waste generation. The subsidy granted to the producer has the opposite effect. The subsidy granted to the recycler increases its profit and the recycling rate. |
| Keywords: | Waste, Recycling, Substitutability, Plastics, Tax-subsidy |
| JEL: | H23 Q53 |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:fae:wpaper:2024.02&r=eur |
| By: | Moloney, Kitty (Central Bank of Ireland); O'Gorman, Paraic (Central Bank of Ireland); O’Sullivan, Max (Central Bank of Ireland); Reddan, Paul (Central Bank of Ireland) |
| Abstract: | In this Note we focus on non-banks lending to small and medium-sized enterprises (SMEs). Understanding how non-bank lenders (NBLs) to SMEs fund themselves and the interconnections they have with other entities helps us to assess the lenders’ resilience and how their activities may impact the real economy. We find they have significant interconnections with European banks and other international financial entities, as well as with European parent non-financial companies (NFCs). We also present an activity-based taxonomy of NBLs to SMEs containing three main categories. Asset Finance Providers mainly receive funding through their (European) parent companies. Specialist Property and General Lenders rely on a mix of market-based sources of funding and the banking sector, and often borrow through variable rate loans. We suggest that Specialist Property Lenders are the most important category from a financial stability perspective as they are lending to a systemically important sector of the Irish economy, are specialist lenders (increasing concentration risk) and appear to be more sensitive to current financial conditions. |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:cbi:fsnote:11/fs/23&r=eur |
| By: | Quentin Hoarau (SONDRA - Sondra, CentraleSupélec, Université Paris-Saclay - ONERA - CentraleSupélec - Université Paris-Saclay); Etienne Lorang (BETA - Bureau d'Économie Théorique et Appliquée - AgroParisTech - UNISTRA - Université de Strasbourg - Université de Haute-Alsace (UHA) - Université de Haute-Alsace (UHA) Mulhouse - Colmar - UL - Université de Lorraine - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, CEC - Chaire Economie du Climat - Université Paris Dauphine-PSL - PSL - Université Paris sciences et lettres) |
| Abstract: | This paper investigates the design of a recent regulatory proposal aimed at favoring the emergence of a battery recycling industry in Europe. Electric mobility is deemed necessary to cut CO2 emissions in the transport sector but the industrial and environmental impacts of lithium-ion battery manufacturing are controversial. A recent regulatory proposal from the European Commission introduces the obligation to attain a series of minimum thresholds of recycled materials for the new batteries to be manufactured after 2030. This paper discusses the conditions required for that obligation to be fulfilled. It develops a material flow model that projects battery wastes and their recycling potential. Our findings indicate that the feasibility of proposed thresholds is not very sensitive to changes of material intensities from battery technology shifts, recycling efficiencies, or the faster uptake of demand. On the contrary, battery lifetimes are the most crucial parameters for recycling potential. We believe that this result could jeopardize avenues for extending battery lifetimes such as second-battery usage. Our policy recommendations are twofold. First, we recommend lower thresholds to improve the regulation credibility. Second, the regulation should integrate other objectives that address the lifetime of batteries. |
| Keywords: | Recycling, Lithium-ion batteries, Electric vehicles, Environmental policy |
| Date: | 2022–03 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03727762&r=eur |
| By: | Adel Ben Youssef (UCA - Université Côte d'Azur); Mounir Dahmani (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, UGAF - Université de Gafsa - Sidi Ahmed Zarroug); Mohamed Mabrouki |
| Abstract: | In a world increasingly threatened by climate change and its associated risks, there's an urgent need to actively seek solutions for environmental protection and sustainable economic development. Central to this effort is understanding the role of environmental taxes and productive capacities in shaping environmental outcomes. Focusing on countries within the European Economic Area (EEA), this research uses advanced second-generation econometric techniques to examine this relationship. The use of cross-sectional autoregressive distributive lag (CS-ARDL) and dynamic common correlated effects (DCCE) models allows for a robust examination of panel data and provides reliable results. The results reveal an inverted U-shaped relationship, or Environmental Kuznets Curve (EKC), between GDP growth and environmental degradation in the EEA economies. Furthermore, while our data reveal a significant negative correlation between environmental taxes and CO2 emissions, we find that productive capacities have a more significant impact on reducing these emissions. These findings call for further research into the effectiveness of policies to support productive capacities in achieving environmental protection goals in the EEA. |
| Date: | 2023–08–24 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04374202&r=eur |
| By: | Clément Marinos (LEGO - Laboratoire d'Economie et de Gestion de l'Ouest - UBS - Université de Bretagne Sud - UBO - Université de Brest - IMT - Institut Mines-Télécom [Paris] - IBSHS - Institut Brestois des Sciences de l'Homme et de la Société - UBO - Université de Brest - UBL - Université Bretagne Loire - IMT Atlantique - IMT Atlantique - IMT - Institut Mines-Télécom [Paris], MARSOUIN - Môle Armoricain de Recherche sur la SOciété de l'information et des usages d'INternet - UR - Université de Rennes - UBS - Université de Bretagne Sud - ENSAI - Ecole Nationale de la Statistique et de l'Analyse de l'Information [Bruz] - UBO - Université de Brest - IMT - Institut Mines-Télécom [Paris] - UR2 - Université de Rennes 2 - UBL - Université Bretagne Loire - IMT Atlantique - IMT Atlantique - IMT - Institut Mines-Télécom [Paris]) |
| Abstract: | Digitalisation de l'économie, développement des transports low-cost et télétravail sont autant de facteurs ayant oeuvré à l'émergence d'un nouveau mode de vie mêlant emploi et voyage touristique. Celles et ceux qui exercent leur activité professionnelle à l'aide des nouvelles technologies de l'information et de la communication tout en effectuant des migrations fréquentes sont nommés « nomades digitaux » et ce depuis plus de 25 ans. On doit l'appellation à Tsugio Makimoto et David Manners, respectivement docteur en informatique et écrivain, auteurs d'un ouvrage du même nom en 1997. Bien qu'il reste difficile d'estimer aujourd'hui leur nombre précisément, plusieurs millions de personnes dans le monde seraient concernées. Certains choisissent de tout lâcher pour vivre comme un « back packer » (ce que l'on peut traduire littéralement en « porteur de sac à dos » ou en « routard » éventuellement) ; d'autres préfèrent y consacrer seulement quelques semaines dans leur carrière en passant par des agences spécialisées. Comme Lisbonne au Portugal ou Medellín en Colombie, Chiang Maï, deuxième ville de Thaïlande est devenue une place forte du nomadisme numérique. |
| Date: | 2023–02–13 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04379434&r=eur |
| By: | Dienes, Christian; Schneck, Stefan; Wolter, Hans-Jürgen |
| Abstract: | This research note examines the relationship between start-up rates and GDP per capita growth in urban and rural regions in Germany. Hereby, we take into account that urban and rural areas differ markedly in their resource endowment for entrepreneurship, which might be responsible for different effects of start-up activity on regional development. Therefore, we examine the growth implications rural entrepreneurship might have on the local economy. Our results suggest that new business formation is positively associated with economic growth in rural areas. In urban districts, however, the effect of start-up activity is insignificant. Therefore, regional development is less dependent on the emergence of new businesses in urban counties. The results also unveil that the often-cited inverse U-shaped relationship between entrepreneurship and GDP growth is mainly evident in rural areas. |
| Keywords: | Regional growth, entrepreneurship, start-up rate |
| JEL: | L26 O18 O47 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ifmwps:281788&r=eur |
| By: | Pratap Singh, Anuj (Central Bank of Ireland); Yao, Fang (Central Bank of Ireland) |
| Abstract: | How has debt service capacity of Irish households evolved in the inflationary and rising interest rate environment? Survey data from September 2023 shows that the majority of household borrowers remain resilient in this environment, but a considerable proportion remain at risk due to low levels of liquid savings useable for debt servicing. We find that one in two mortgage borrowers report having less than three months of savings to service their debts in the event of prolonged income loss. This may be driven by difficulty in saving, as we find 31 per cent of mortgage borrowers report zero monthly savings out of income, while 51 per cent report zero excess savings accumulated during the pandemic. Moreover, the survey suggests that vulnerable borrowers may be more likely to enter arrears or take on further debts if the economic environment stays the same or worsens. |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:cbi:fsnote:8/fs/23&r=eur |
| By: | F. Bolivar; Miguel A. Duran; A. Lozano-Vivas |
| Abstract: | This paper analyzes the relation between bank profit performance and business models. Using a machine learning-based approach, we propose a methodological strategy in which balance sheet components' contributions to profitability are the identification instruments of business models. We apply this strategy to the European Union banking system from 1997 to 2021. Our main findings indicate that the standard retail-oriented business model is the profile that performs best in terms of profitability, whereas adopting a non-specialized business profile is a strategic decision that leads to poor profitability. Additionally, our findings suggest that the effect of high capital ratios on profitability depends on the business profile. The contributions of business models to profitability decreased during the Great Recession. Although the situation showed signs of improvement afterward, the European Union banking system's ability to yield returns is still problematic in the post-crisis period, even for the best-performing group. |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2401.12334&r=eur |
| By: | Bergeaud, Antonin; Guillouzouic, Arthur |
| Abstract: | Following Bergeaud et al. (2022), we construct a new measure of proximity between industrial sectors and public research laboratories. Using this measure, we explore the underlying network of knowledge linkages between scientific fields and industrial sectors in France. We show empirically that there exists a significant negative correlation between the geographical distance between firms and laboratories and their scientific proximity, suggesting strongly localized spillovers. Moreover, we uncover some important differences by field, stronger than when using standard patent-based measures of proximity. |
| Keywords: | knowledge spillovers; technological distance; public laboratories |
| JEL: | O32 O38 R12 |
| Date: | 2023–11–15 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:121289&r=eur |
| By: | Costas Karfakis (Department of Economics, University of Macedonia); Ioannis Karfakis (Business Discipline, London School of Science and Technology, Memo House, London, England, W3 0XA, UK) |
| Abstract: | This paper examines whether the expanded Quantitative Easing policies of the European Central Bank during the period 2015-2022 have influenced the impact of the Global Financial Cycle (GFC) on the Eurozone’s financial stress. The threshold regression reveals that these policies implementation has reduced the impact of GFC on financial stress in the post-2015 period, and thus contributed to lower systemic risk. The impulse responses of the quantile regression show that a global risk aversion shock does not have persistent effects on the financial stress distribution, and thus the GFC would not “set the tone†of Eurozone’s financial conditions. |
| Keywords: | Quantitative easing; financial stress, global financial cycle, systemic risk; balance sheet; threshold regression; quantile regression analysis |
| JEL: | E52 E58 G15 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:mcd:mcddps:2024_01&r=eur |
| By: | Allan Dahl Andersen (Centre for Technology, Innovation and Culture (TIK), University of Oslo, Norway. Department of Food and Resource Economics, University of Copenhagen, Denmark); Tuukka Mäkitie (Centre for Technology, Innovation and Culture (TIK), University of Oslo, Norway. Department of Technology Management, SINTEF Digital, Norway.); Markus Steen (Department of Technology Management, SINTEF Digital, Norway.); Iris Wanzenböck (Copernicus Institute of Sustainable Development, Utrecht University, The Netherlands) |
| Abstract: | Transition studies is a rapidly growing field within innovation studies. It aims to account for system transitions especially in relation to sustainability challenges. The field has however paid limited attention to the economic structural change associated with transitions. This suggests that despite common origins via the concept of technological regimes, evolutionary economics and transition studies have seen limited mutual engagement and cross-fertilization. Since the extension of technological regimes to sociotechnical regimes with the articulation of the multilevel perspective, the transitions field has focused more on institutional and end-user aspects of transitions (e.g. culture, practices, regulations) than the supply-side of regimes. In this paper we attempt to recalibrate the balance between supply- and demand-side analyses by articulating a novel multi-sectoral perspective on transitions which provides a systematic view on the interplay between industrial transformation and system transitions. |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:tik:inowpp:20240206&r=eur |
| By: | Xiwen Bai (Tsinghua University); Jesús Fernández-Villaverde (University of Pennsylvania); Yiliang Li (University of International Business and Economics); Francesco Zanetti (University of Oxford) |
| Abstract: | We study the causal effects and policy implications of global supply chain disruptions.We construct a new index of supply chain disruptions from the mandatory automatic identification system data of container ships, developing a novel spatial clustering algorithm that determines real-time congestion from the position, speed, and heading of container ships in major ports around the globe. We develop a model with search frictions between producers and retailers that links spare productive capacity with congestion in the goods market and the responses of output and prices to supply chain shocks. The co-movements of output, prices, and spare capacity yield unique identifying restrictions for supply chain disturbances that allow us to study the causal effects of such disruptions. We document how supply chain shocks drove inflation during 2021 but that, in 2022, traditional demand and supply shocks also played an important role in explaining inflation. Finally, we show how monetary policy is more effective in taming inflation after a global supply chain shock than in regular circumstances. |
| Keywords: | supply chain disruptions, search-and-matching in the goods market, SVAR, state-dependence of monetary policy |
| JEL: | E32 E58 J64 |
| Date: | 2024–01–22 |
| URL: | http://d.repec.org/n?u=RePEc:pen:papers:24-001&r=eur |
| By: | Aditya Ramji; Daniel Sperling; Lewis Fulton |
| Abstract: | Strong policies with sustainable incentives are needed to accelerate the EV transition. This paper assesses various feebate designs assessing recent policy evolution in five European countries. While there are key design elements that should be considered, there is no optimal feebate design. Different policy objectives could be served by feebates influencing its design and effectiveness. Using feebates to transition to EVs has emerged a key objective. With the financial sustainability of EV incentive programs being questioned, a self financing market mechanism could be the need of the hour solution. Irrespective of the policy goals, a feebate will impact both the supply side, i.e., the automotive industry and the consumer side. Globally, feebates can be used to effect technology leapfrogging while navigating the political economy of clean transportation policy in different country contexts. This paper highlights thirteen design elements of an effective feebate policy that can serve as a foundation for policymakers. |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2401.15069&r=eur |
| By: | Galstyan, Vahagn (Central Bank of Ireland) |
| Abstract: | This paper presents an empirical framework and analysis of the interactions among inflation, wages, employment, and output in the euro area. Results identify price shocks and demand shocks as the primary exogenous factors explaining historical variance. The wage gap emerges as a key determinant of wage dynamics in the aftermath of a price shock. In contrast, the output gap becomes dominant following demand shocks. The real wage gap acts as a corrective mechanism, ensuring that prices and wages in particular align with the broader economic landscape. Forecasts for the period starting 2023Q3 emphasise the enduring significance of the real wage gap, projecting its ongoing impact on nominal wages in tight labour markets. As for inflation expectations, the estimates emphasise their stickiness. In this context, the significant and persistent price shock that has occurred suggests a gradual decline in expectations, potentially leading to an extended period of elevated inflation. |
| Keywords: | Inflation, Wages, Central Banking. |
| JEL: | E00 E12 E30 E31 E32 E37 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:cbi:wpaper:11/rt/23&r=eur |