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on Microeconomic European Issues |
| By: | NES Kjersti (European Commission - JRC); ANTONIOLI Federico (European Commission - JRC); CIAIAN Pavel (European Commission - JRC) |
| Abstract: | The objective of the report is to analyse purchasing patterns of organic food products and plant-based alternatives and examine how sensitive the consumption of these products is to changes in prices. The report analyses are based on consumer purchasing panel data from five EU countries – Germany, Spain, France, Italy and Finland – for 2018–2022. The report finds that consumption patterns of organic food products and plant-based alternatives are heterogeneous across countries, products and socioeconomic household groups. The econometric estimates show that (i) the magnitudes of the own-price elasticities of organic products, plant-based alternatives and conventional products vary across products and countries, ranging between – 0.13 and – 1.30, (ii) the price sensitivity of the sustainable products is more heterogeneous than that of their conventional counterparts and (iii) changes in the prices of organic products minimally affect the purchasing quantities of their conventional counterparts (i.e. the corresponding cross-price elasticities mostly range between – 0.05 and 0.05), while changes in the prices of the conventional products tend to affect the purchases of organic products (i.e. the corresponding cross-price elasticities mostly range between – 0.50 and 0.50). |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc134549&r= |
| By: | Alizade, Jeyhun (WZB Berlin Social Science Center) |
| Abstract: | Concern that immigration worsens crime problems is prevalent across Western publics. How does it shape electoral politics? Prior research asserted a growing left-right divide in immigration attitudes and voting behavior due to educational realignment. In contrast, I argue that leftist voters are more conservative on immigrant crime than leftist parties, which can drive highly-educated progressives (so-called `cosmopolitans') to right-wing parties. I demonstrate this voter-party mismatch using survey data from 14 Western European countries linked with expert ratings of party positions. A panel survey from Germany further shows that concern about immigrant crime increases vote intention for the center right among voters of the Greens – the party of leftist cosmopolitans. A conjoint experiment among German voters replicates this defection effect and shows that it persists even if the center right stigmatizes immigrants or adopts conservative socio-cultural issue positions. Repercussions of immigration can in fact drive leftist cosmopolitans to the right. |
| Date: | 2024–04–15 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:h967e&r= |
| By: | Brandtjen, Roland |
| Abstract: | In Europe exist over 200 languages of which only 24 are official languages of the EU. What effect do have minority and regional languages onto prosperity? Is there any correlation between the language use and regional GDP per capita? How does affect the meaning of an own regional language the regional wealth? These questions have not been answered yet in the scientific literature. To answer them, data of the German Bundesländer, the Regions of France and Italy, the autonomous communities and cities of Spain, the British constituency countries and Cornwall, as well as Monaco, Andorra, Liechtenstein, San Marino, Greenland, the Faroe Islands, Åland, the Isle of Man, the Bailiwick of Guernsey, the Bailiwick of Jersey and Gibraltar This paper attempts to examine and fill a scientific gap on this topic by means of the comparison of economic data with results of adapted quantitative surveys. From 2019 and 2023, these surveys have been conducted in all mentioned regions. They are analysed by descriptive statistics. Correlation between regional language use and regional wealth, meaning of regional language use for the population and regional prosperity as well as the meaning of own unique culture for the regional population are calculated and interpreted. The paper concludes with a Conclusion, the bibliography and an annex. |
| Keywords: | Language, Minority rights, Economy, European Charter of Regional and Minority Languages, Language Protection, Prosperity |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:iubhbm:294844&r= |
| By: | Fontana, S.;; Guccio, C.;; Pignataro, G.;; Romeo, D.; |
| Abstract: | This paper aims to assess the impact of a cash transfer programme implemented in Italy since 2014, known as the '80 euro bonus', on health outcomes as gauged by mortality rates. Using municipality-level data over the period 2010-2019 and a difference-in-differences approach, we find a significant reduction in mortality rates associated with the size of cash transfers and the number of recipients in the municipality. This effect remains robust across several checks. Furthermore, at the provincial level, we observe sustained decreases in mortality rates, especially for cancer and cardiovascular diseases, in the areas with a higher concentration of cash transfer recipients. These results support the positive impact of increased financial resources on health outcomes and highlight the role of cash transfers as effective tools for public health policies. |
| Keywords: | cash transfer; personal income; health outcomes; mortality rate; local communities; difference-in-difference; |
| JEL: | C23 E32 H24 I10 I18 |
| Date: | 2024–05 |
| URL: | http://d.repec.org/n?u=RePEc:yor:hectdg:24/04&r= |
| By: | BERTONI Eleonora (European Commission - JRC); COSGROVE Judith (European Commission - JRC); POULIAKAS Konstantinos; SANTANGELO Giulia |
| Abstract: | Context: - Digital skills mismatches have been high on the EU policy agenda for some time. - Skills mismatches are a concern for policymakers and researchers as they are closely associated with negative labour market outcomes such as wage penalties, absenteeism, high turnover, and lower levels of job satisfaction. - Training is one policy instrument that can be implemented to address skills mismatches. Objectives: - This brief contributes to policy on provision of digital skills. It uses data from Cedefop’s second European skills and jobs survey (ESJS2) and provides new evidence by (i) describing the characteristics of the digitally-underskilled in the EU workforce; and (ii) identifying characteristics of EU workers undertaking digital skills education and training. Key policy messages: - Around 13% of EU workers are affected by digital skills mismatch to a great extent. - While new technologies do not necessarily cause mass unemployment, there is a need for upskilling and reskilling of workers who are likely to face marked changes in their job tasks due to the advent of new digital technologies. - Policy efforts could be targeted to those reporting a digital skills mismatch but not participating in any digital skills training, and workers with a higher chance of reallocation due to new digital technologies. - Job-skills requirements, i.e. the level of skills demanded in individuals’ jobs, are the strongest drivers of participation in digital skills training. - Individual attitudes and perceptions (e.g. fear of automation) towards technology are also important drivers of digital skills training participation. - Design and implementation of education and training initiatives should take both individual attitudes and specific job-skills requirements into account. Research implications: - More research on motivation and incentives for training, quality of training and its impact is needed. - More comprehensive measures of digital skills mismatch may enable better targeting and implementation of education and training. |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc137073&r= |
| By: | Tselios, Vassilis; Rodriguez-Pose, Andres |
| Abstract: | Poverty reduction and the tackling of social exclusion are overarching goals of development and welfare policies. This paper explores the extent to which decentralization contributes to poverty and social exclusion alleviation in European countries and regions. We find evidence that increases in central government transfers of political, administrative and fiscal authority to subnational tiers of government reduce poverty and address social exclusion at the national level. This, however, mainly happens in countries with a high degree of governance quality and, fundamentally, in urban areas. The link between decentralization and poverty and social exclusion alleviation is more uniform at the regional level, as greater regional autonomy is connected to lower poverty and social exclusion, regardless of the quality of regional government. Hence, when regional governments have the capacity to design their own independent policies, a reduction of poverty and social exclusion and improvements in well-being generally ensue. |
| Keywords: | decentralisation; poverty; social exclusion; quality of governance; urban areas; Europe; decentralization; Membership Research Grant (MeRSA) |
| JEL: | H11 H53 I32 R11 |
| Date: | 2022–10–20 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:115545&r= |
| By: | TEMURSHO Umed (European Commission - JRC); WEITZEL Matthias (European Commission - JRC) |
| Abstract: | By combining econometric estimations with the calibration of consumer expenditure data, this study estimates a linear expenditure system (LES) for the 27 EU countries. We use the EU Household Budget Survey (HBS) data for the reference years of 2010 and 2015, which provide data for about 275, 000 and 276, 100 EU households, respectively. In addressing the challenge of insufcient price variability in cross-sectional data, we first construct household-specific pseudo unit values, which enable us to derive the estimates of countryspecific Frisch parameters by expenditure decile for all EU countries. The obtained variability of the Frisch parameters across countries and household income groups underscores the importance of properly accounting for and incorporating this heterogeneity in modelling exercises that are based on the parameter in question. Subsequent estimations of the LES model differentiate households by three urbanization degrees of household residence and ten income groups. To take full advantage of consumer microdata, the resulting income elasticities for 23 commodity groups are calibrated within a relative entropy optimization framework to obtain consistent estimates of household-specific income and price elasticities. Finally, the study illustrates the richness of this combined approach in accounting for heterogeneity and nonlinearities in household consumption behavior. |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc136876&r= |
| By: | GRASSANO Nicola; NAPOLITANO Lorenzo (European Commission - JRC); M'BAREK Robert (European Commission - JRC); RODRIGUEZ CEREZO Emilio (European Commission - JRC); LASARTE LOPEZ Jesus (European Commission - JRC) |
| Abstract: | In this document, we focus on innovation in biotechnologies (biotech), as captured by patented invention worldwide. To this aim, we focus on international patents filed at multiple offices, at least one of which belonging to the IP5 consortium (see methodological box for more details). Moreover, we rely on expert knowledge collected by the OECD to select the inventions connected to biotech. The analysis aims to produce a bird’s eye view on the evolution of patenting in this technological area over time and its relevance across the geographical and technological dimensions. The key points emerging from this analysis are: Biotech patents represent around 5% of all the IP5 patents in the period 2001-2019. The US are by far the country with the highest share of biotech patents, the EU is lagging behind (with an increasing gap with the US) , while China seem to have started catching Up with the EU; The majority of the biotech patents are withe (industrials) and red (medical) biotechnologies. Japanese, Chinese, and EU applicants show relatively high specialization in white biotech patents, while UK and US applicants are relatively specialized in horizontal and red biotech patents. Germany and France have the highest number of biotech patent applicants in the EU, accounting for slightly over 50% of all EU biotech patents; The single biotechnology most patented is C12Q 1/66, "Measuring or testing processes involving luciferase", which alone represents 6.4% of all the biotech patents analysed; Preliminary analysis suggests that the competition among regions in biotech patents revolves around the number of patents in each of the main biotechnological domains, rather than the different types of biotechnologies patented. |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc137266&r= |
| By: | Valentin Laprie |
| Abstract: | Low-carbon technical change in the building sector is a promising solution to address the challenges of climate change, energy security, and public health. We aim to investigate the effects of various environmental policies on low-carbon innovation in the building sector where strong investment barriers transpire, focusing on France as a case study. Pollution taxes, subsidies, standards, which induce more low-carbon innovation? Using a quality index for patents and a Polynomial Distributed Lag Model, our results suggest a limited impact of a carbon tax on promoting low-carbon innovation within the building sector in France. Moreover, our findings indicate that subsidies targeting less polluting technologies emerge as a primary driver of qualitative innovation. Additionally, our study reveals that energy standards for buildings exert a significant albeit temporary influence on the number of patents in relevant technological domains. |
| Keywords: | Environmental Policy, Technical Change, Patents, Energy Efficiency, Buildings |
| JEL: | O33 O34 O38 Q54 Q55 Q58 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:drm:wpaper:2024-17&r= |
| By: | HARDING Richard; NAUWELAERS Claire |
| Abstract: | The aim of this report is to investigate the potential for harnessing key features of Transformative Innovation to improve the design and the implementation of Climate Change Adaptation (CCA) strategies, based on empirical analyses. The study draws on the conceptual framework on this question previously defined for the JRC (European Commission, 2024), and the methodology for case studies articulated in the same report. The case study research comprises overall 14 case study reports covering 16 different territories from across the EU and beyond, casing various institutional contexts, a variety of biogeographical regions within different climate risks, different ranges of population sizes, and representing a diversity of approaches to CCA and transformative innovation. The framework takes the form of an analytical grid, structured into seven sections, each of them representing a key feature of the ‘transformative innovation’ approach where the features are understood as essential conditions for the design and implementation of CCA strategies with this high level of ambition. Each section sets out the main question(s) to be addressed in relation to its respective transformative innovation feature. This Report provides the findings for Gorenjska region in Slovenia, as at October 2023 and is the result of a collaboration between the Joint Research Centre (JRC), DG CLIMA and DG RTD. |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc137320&r= |
| By: | Blümel, Miriam; Al Tayara, Lynn; Gomez, Elisa; Zimmerman, Julia; Cylus, Jonathan; Thomson, Sarah; Habicht, Triin; Evetovits, Tamás |
| Abstract: | Health matters. The health sector is an important and innovative industry, as well as a source of stable employment for many people. Health systems support active and productive populations, reduce inequities and poverty and promote social cohesion. A strong health system makes good economic sense and underpins the overall sustainable development agenda Countries around the world are grappling with the health, economic and fiscal implications of the COVID-19 pandemic. As they begin to recover from the crisis, difficult decisions will need to be made about how to allocate scarce resources. These snapshots share valuable evidence for policy-makers on how investing in health sectors and health systems helps to achieve national economic objectives. |
| JEL: | R14 J01 N0 |
| Date: | 2022–12–08 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:122843&r= |
| By: | HARDING Richard; NAUWELAERS Claire; HAEGEMAN Karel (European Commission - JRC) |
| Abstract: | This report looks at the key features of territorial Climate Change Adaptation (CCA) strategies, as they are developing throughout the EU, and examines whether and how the adoption of a Transformative Innovation (TI) approach could add value to these strategies and their implementation. The analysis is based on a literature review covering the two fields. Starting from rationales for linking TI and CCA strategies, seven key TI features are identified which are further explored in this report, in order to form a picture of the possible beneficial contributions TI might make to the design and implementation of CCA strategies. For each feature, potential contributions to climate adaptation are identified. Also, barriers to integrating TI in CCA strategies are formulated, both to strategy formulation and strategy implementation. Infusing TI approaches into the design and implementation of CCA strategies holds a promise to raise their effectiveness, and calls for more experimentation. As a way to start such experimentation, the framework developed in this report has been applied to 16 territories, covered in 14 separate case study reports listed in annex 2, drawing meaningful insights per territory as regards accelerating climate adaptation through transformative innovation. It targets public authorities in EU territories (and beyond) at different governance levels (from national to local), as well as other territorial stakeholders involved in or affected by climate adaptation policies and transformative innovation policies. |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc137300&r= |
| By: | Mathieu Plane (OFCE - Observatoire français des conjonctures économiques (Sciences Po) - Sciences Po - Sciences Po); Elliot Aurissergues (OFCE - Observatoire français des conjonctures économiques (Sciences Po) - Sciences Po - Sciences Po); Bruno Coquet (OFCE - Observatoire français des conjonctures économiques (Sciences Po) - Sciences Po - Sciences Po); Magali Dauvin (OFCE - Observatoire français des conjonctures économiques (Sciences Po) - Sciences Po - Sciences Po); Ombeline Jullien de Pommerol (OFCE - Observatoire français des conjonctures économiques (Sciences Po) - Sciences Po - Sciences Po); Pierre Madec (OFCE - Observatoire français des conjonctures économiques (Sciences Po) - Sciences Po - Sciences Po); Raul Sampognaro (OFCE - Observatoire français des conjonctures économiques (Sciences Po) - Sciences Po - Sciences Po) |
| Abstract: | French growth is expected to reach an annual average of 0.5% in 2024. This downward revision of our growth forecast from 0.8% in October 2023 is due mainly to weaker than expected growth for 2024 (ultimately -0.15 GDP point lower for 2024 than previously forecast) and a new 10 billion euro fiscal adjustment program, whose impact on GDP is estimated at -0.2 GDP point in 2024. In 2025, French growth is forecast at 1.2%, despite the positive effects of lower interest rates (0.2 GDP point). But growth will be constrained by the government's planned new fiscal adjustments of 20 billion euros in 2025 (whose impact on GDP is estimated at -0.6%), as well as by the total abolition of tariff shields. Inflation should fall in 2024 (2.4% after 4.9% in 2023) and be close to the 2% target in 2025. The downturn in the labor market is continuing, due to weak growth in activity and the partial recovery of past productivity losses, which will push the unemployment rate to 8.2% by the end of 2024 and 8.1% by the end of 2025 (excluding the effect of the RSA benefits reform). The saving rate should remain high in 2024, but fall in 2025, supporting consumption despite sluggish purchasing power in 2025 after the rebound in 2024 (0.2%, after 1% in 2024 per consumption unit). Due to a sharp shrinkage in certain tax bases (real estate, corporate profits, etc.), the public deficit reached 5.5% of GDP in 2023, 0.6 point higher than forecast in the Finance Act for 2024. With the expiry of the exceptional budget support measures and the expected further structural adjustments of 1 GDP point over two years, the public deficit should fall to 5% of GDP in 2024 and 4.4% in 2025, despite higher interest charges and the deterioration in the cyclical deficit. After three years of decline, public debt (in points of GDP) is set to rise again in 2024 and 2025, due to lower nominal growth and lower inflation. It should reach 112.8% of GDP in 2025, after 111.9% in 2024 and 110.6% in 2023. |
| Date: | 2024–04–10 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04557976&r= |
| By: | Ronsiek, Linus (GWS); Schneemann, Christian (Institute for Employment Research (IAB), Nuremberg, Germany); Mönnig, Anke (GWS); Samray, David (BIBB); Schroer, Jan Philipp (BIBB); Schur, Alexander Christian (BIBB); Zenk, Johanna (Institute for Employment Research (IAB), Nuremberg, Germany) |
| Abstract: | "Hydrogen has the potential to contribute to achieving the climate targets. At the same time, it can reduce dependencies on supplier countries for fossil fuels and fossil-based raw materials. As part of the project ‘Labour demand and labour supply along the hydrogen value chain’ funded by the Federal Ministry of Education and Research (BMBF), this research report uses a scenario analysis to describe the impacts of establishing a value chain for green hydrogen on economic output and the labour market in Germany by 2045. The hydrogen value chain includes the production of hydrogen, its use as an energy carrier and raw material, the production of and investment in hydrogen technologies, the development of a hydrogen infrastructure, the further processing of hydrogen into hydrogen derivates such as ammonia or methanol and, last but not least, the education sector for the transfer of hydrogen skills. Based on macroeconomic modelling, a scenario without the development of a hydrogen economy (baseline scenario) and a scenario containing assumptions on the development of a hydrogen economy (alternative scenario ‘Hydrogen Scenario v2.1’) are compared. The alternative scenario is based on the ‘Hydrogen Scenario v2.0’, which was previously published in a BIBB discussion paper. The assumptions of the precedent scenario were updated and extended. The results show that the development of a hydrogen economy will have a positive impact on the price-adjusted gross domestic product by 2035. Additional gross fixed capital formation in construction, machinery and equipment as well as higher household final consumption expenditures boost GDP. From 2036 onwards, the positive stimulus weakens and an overall negative impact on GDP prevails. Higher imports are mainly responsible for this negative impact. Over the entire projection period from 2024 to 2045, GDP is nevertheless 4.1 billion euros higher on average (+0.1 percent per year). The development of a hydrogen economy shows a positive impact on the labour market in terms of employment. Between 2024 and 2045 an average of around 57’000 additional persons are expected to be employed in comparison to the baseline scenario. In absolute terms, the construction sector in particular has a higher demand for labour which is related to the expansion of renewable energies for green hydrogen production and the development of an infrastructure for hydrogen. Positive impacts can also be observed on labour demand in architectural and engineering activities, technical testing and analysis, education as well as in manufacture of machinery and equipment. In the medium term, there will be a lower demand for labour in the manufacture of chemicals and chemical products although this will be relativised in the long term. Deviations by occupational groups show, inter alia, a higher demand in administrative professions as well as in various occupations related to the construction sector. There are already signs of shortages in many of these occupational groups today which can delay the development of a hydrogen economy. The sensitivity analysis illustrates the importance of electricity prices and the entailed costs for hydrogen and hydrogen derivatives on the economic and labour market impact. With an assumption of 20 percent lower electricity prices for electrolysis abroad, German GDP will be on average 7.7 billion euros higher by 2045 and the number of employed persons will be on average around 66’000 higher than in the baseline scenario. With 40 percent lower electricity prices, German GDP will be on average 11.2 billion euros higher by 2045 and the number of employed persons by around 76’000. The lower the costs for hydrogen, the higher the outcome for GDP and employment figures. The crucial point in the scenario comparison is, however, the relative costs of hydrogen and hydrogen derivates to fossil fuels and fossil-based raw materials. Hence, a shift towards alternative energy carriers and raw materials might be also economically beneficial in case of stronger price increases for fossil fuels and fossil-based raw materials. Government measures can contribute to initiate a market-based dynamic in the ecological transition." (Author's abstract, IAB-Doku) ((en)) |
| Keywords: | IAB-Open-Access-Publikation |
| Date: | 2024–05–08 |
| URL: | http://d.repec.org/n?u=RePEc:iab:iabfob:202407&r= |
| By: | Sascha Keil; Walter Paternesi Meloni |
| Abstract: | Over the past decades, models of circular and cumulative causation, based on the endogenous relations between prices, exports, and labour productivity, have lost prominence in explaining economic dynamics. We argue that, in the absence of counterbalancing mechanisms, the combination of price-sensitive exports and the triggering effect of exports on productivity can enable feedback loops and can significantly shape macroeconomic reality in the short-to-medium run. We apply an adapted export-led model of cumulative causation to 10 major countries belonging the Euro area, a region characterized by divergent wage growth trajectories reflected in divergent export competitiveness and lack of equilibrating mechanisms. Specifically, the model is tested for the period 1995–2020 employing a country-level system of equations (3SLS-ARDL). Our findings indicate that for the majority of the countries examined, this feedback mechanism – comprising price-sensitive exports and export demand affecting productivity growth – exacerbates macroeconomic disparities in terms of labour productivity. While nominal wages act as a potential trigger through their impact on price competitiveness, they also serve as a central factor that retards the feedback mechanism due to the Verdoorn effect of wage-induced demand. Overall, our results affirm the significance of price-induced and export-led theories of cumulative causation while also delineating its limitations, particularly regarding price competitiveness-oriented export-led growth strategies. |
| Keywords: | international trade, export, competitiveness, unit labour cost, wages, productivity, european imbalances |
| JEL: | F16 F41 J30 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:imk:fmmpap:103-2024&r= |
| By: | Paduano, Stephen |
| Abstract: | Eurozone countries are financially and politically pivotal to the Special Drawing Rights (SDRs) rechannelling agenda.1 Collectively, they hold $200bn in SDRs (just over 20% of all SDRs), and the Eurozone countries which are G-20 members hold $120bn in SDRs (just under 20% of the G-20’s SDRs). These countries are also the most ambitious and proactive members of the SDR system, with France being the first advocate of SDR rechanneling and Spain being the first to rechannel (to the IMF Resilience and Sustainability Trust - RST). However, the Eurozone’s capacity to lead on and participate in SDR rechanneling has been complicated by the European Central Bank (ECB). President Lagarde has expressed that SDR rechanneling to Multilateral Development Banks (MDBs) may not preserve the reserve asset characteristic of the SDR and may violate the prohibition on monetary financing. Building on Paduano and Maret (2023), this paper demonstrates that certain forms of SDR rechanneling can clearly satisfy the ECB’s concerns — and, more importantly, that the rechanneling of reserve assets to multilateral development banks already occurs. |
| Keywords: | European Central Bank, eurosystem, national central banks, Special Drawing Rights, International Monetary Fund, World Bank, global development, international financial architecture |
| Date: | 2023–05 |
| URL: | http://d.repec.org/n?u=RePEc:cpm:notfdl:2305&r= |