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on Microeconomic European Issues |
| By: | Julia Mink (University of Bonn) |
| Abstract: | This study quantifes the financial burden of acute air pollution on the French healthcare system. By combining comprehensive French administrative health data for a nationally representative sample with high-resolution geospatial data on air pollution and meteorological conditions, the healthcare costs of air pollution exposure are estimated more accurately and comprehensively than in the previous literature. I use an instrumental variable approach exploiting weekly variations in local concentrations of nitrogen dioxide, ground-level ozone and particulate matter induced by variations in altitude weather conditions. I find that air pollution causes healthcare costs to the French healthcare system in the order of several billion per year, even though air pollutant concentrations are mostly below the current European air quality standards considered safe for human health. My cost estimates are about 10 times higher than those estimated in previous studies, suggesting that the health costs of air pollution have been severely underestimated. While air pollution has a large effects on overall spending in more polluted and populated urban areas due to the higher number of affected people, the marginal effects appear to be greater in low-pollution and less populated areas. Reducing population exposure even at low air pollution concentrations should therefore be an important public health goal. Even the most stringent 2021 WHO guideline values should not be considered safe for human health. |
| Keywords: | Air pollution, healthcare cost, instrumental variable approach |
| JEL: | I12 J14 Q51 Q53 |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:ajk:ajkdps:320&r= |
| By: | Dennis Novy; Thomas Sampson; Catherine Thomas |
| Abstract: | This briefing summarises the evidence about how leaving the European Union (EU) has affected UK trade. Overall, Brexit has had a negative effect on UK trade. But, so far, this effect has been smaller than economists expected. |
| Keywords: | Brexit, Election2024, Globalisation, UK Economy, trade, |
| Date: | 2024–06–17 |
| URL: | https://d.repec.org/n?u=RePEc:cep:cepeap:058&r= |
| By: | Michel Beine; Vincent Fromentin; Javier Sánchez Bachiller |
| Abstract: | An extensive literature has documented the incentive effect of emigration prospects in terms of human capital accumulation in origin countries. Much less attention has been paid to the impact on specific educational choices. We provide some evidence from the behavior of students at the University of Lorraine that is located in the northeast of France and close to Luxembourg, a booming economy with attractive work conditions. We find that students who paid attention to the foreign labor market at the time of enrollment tend to choose topics that lead to occupations that are highly valued in Luxembourg. These results hold when accounting for heterogeneous substitution patterns across study fields through the estimation of advanced discrete choice models. Incentive effects of emigration prospects are also found when accounting for the potential endogeneity of the interest for the foreign labor market using a control function approach based on the initial locations of these students at the time of enrollment. Consistently, students showing no attention to the foreign labor market are not subject to the incentive effect of emigration prospects. |
| Keywords: | brain gain, emigration prospects, educational choices, discrete choice modelling, labor markets |
| JEL: | C25 F22 J61 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11158&r= |
| By: | Timothy Riffe (Max Planck Institute for Demographic Research, Rostock, Germany); Iñaki Permanyer; Rustam Tursun-Zade (Max Planck Institute for Demographic Research, Rostock, Germany); Magdalena Muszynska-Spielauer |
| Keywords: | Italy |
| JEL: | J1 Z0 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:dem:wpaper:wp-2024-013&r= |
| By: | de Bromhead, Alan (University College Dublin); Kenny, Seán (Department of Economic History, Lund University) |
| Abstract: | This paper constructs the first estimates of Irish regional GDP over the twentieth century and traces the relative economic performance of Ireland’s regions since independence. Using an array of data sources available at a county level, output inAgriculture, Industry and S ervices in benchmark census years is estimated. Applying a variety of alternative measures, we find a reduction in regional inequality over the period that is similar to the broader European pattern. Regional convergence over the period 1926-1991 was driven by both within-sector convergence in productivity and structural change. Our paper helps to understand the regional dimensions to Irish economic development from the birth of a newly independent state up to the eve of Ireland's growth 'miracle' in the 1990s, when the first official efforts were initiated to construct these figures. Finally, we connect our estimates to these official figures to examine GDP at the level of NUTS regions up to 2021. |
| Keywords: | Regional GDP; Ireland; Economic History; Inequality; Economic Growth |
| JEL: | N34 N94 O18 R11 R12 |
| Date: | 2024–06–12 |
| URL: | https://d.repec.org/n?u=RePEc:hhs:luekhi:0259&r= |
| By: | Hopkin, Jonathan |
| Abstract: | Labour needs to look to Europe for lessons on welfare provision, and the political strategies that can sustain the welfare state. The government’s role in the economy has expanded as a result of several, overlapping crises: this provides an opportunity to demonstrate the economic value of social security and welfare provision. |
| JEL: | E6 J1 |
| Date: | 2023–07–29 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:122786&r= |
| By: | Gazilas, Emmanouil Taxiarchis |
| Abstract: | Intentional homicide rates represent a critical societal issue, impacting public safety and social stability across Europe. Understanding the socio-economic factors underlying these crimes is paramount for effective policy intervention. This research aims to investigate the socio-economic determinants of intentional homicides in 15 European countries over the period 2010-2021, providing insights into the complex relationship between economic indicators and violent crime rates. The study hypothesizes that economic prosperity, government debt, and access to financial services significantly influence intentional homicide rates, with countries exhibiting higher levels of economic development and financial inclusion experiencing lower homicide rates. Utilizing robust statistical and econometric techniques, including regression analysis and correlation matrices, the research examines the relationships between various socio-economic indicators and intentional homicide rates. Data spanning from national tax authorities, statistical agencies, and international organizations are meticulously analyzed to uncover meaningful patterns and associations. The findings reveal compelling associations between economic indicators and intentional homicide rates. Higher GDP per capita and greater financial inclusion are correlated with lower homicide rates, while elevated levels of government debt exhibit a negative association with homicide rates. These results underscore the multifaceted nature of crime dynamics and highlight the importance of considering broader socio-economic factors in understanding violent crime patterns. The study contributes to both theoretical knowledge and practical policymaking by offering insights into the socio-economic determinants of intentional homicides. These findings can inform evidence-based policy interventions aimed at promoting social stability and enhancing public safety across Europe, emphasizing the importance of addressing underlying economic factors in crime prevention strategies. |
| Keywords: | Intentional Homicides, Socio-Economic Factors, Public Safety, Economic Prosperity, Financial Inclusion, Policy Interventions |
| JEL: | D74 H56 I12 K14 O15 |
| Date: | 2024–03–10 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:121304&r= |
| By: | Drigo, Alessandra |
| Abstract: | This study is the first to examine the relationship between PM2.5 concentration and per capita income at the municipality level for Italy. The novelty of this work is also to explore the role of agglomerations and morphological factors in influencing the income-pollution correlation in the year 2013, and to assess its persistence to 2019. While there is not an unconditional environmental justice gap in Italy, controlling for land morphology and agglomerations variables weakens the positive correlation between PM2.5 and per capita income to the point of disappearance. Notably, being located in the Padana Valley ecoregion serves as a key indicator of environmental injustice nation-wide. The excess of PM2.5 exposure in the region increased mortality risk by 13.8% in 2013 and 10.88% in 2019 with respect to the WHO threshold (5 mg/m³ annual average). The largest environmental justice gap in relative measures shows a difference in mortality risk of 9.31% in 2013 and 7.04% in 2019 between the populations of the most polluted ecoregion (Padana Valley) and the least polluted one (Apennines). When attempting to disentangle the pollution variation among municipalities within the same province, the per capita income level of municipalities emerges as a significant indicator. An increase of 10, 000 euros in the average per capita income of the municipality corresponds to a decrease of 2.01 mg/m³ in PM2.5 annual average exposure level (-1.6% in mortality risk) in 2013 and 1.05 mg/m³ (-0.7% in mortality risk) in 2019. |
| Keywords: | Climate Change, Environmental Economics and Policy |
| Date: | 2024–06–20 |
| URL: | https://d.repec.org/n?u=RePEc:ags:feemwp:343509&r= |
| By: | Janssen, Thilo; Lübker, Malte |
| Abstract: | With real wages falling by 4.0 % in 2022, workers in the European Union suffered an unprecedented loss in purchasing power. The reason for this was the rapid increase in consumer prices, behind which nominal wage growth fell significantly. Meanwhile, inflation is no longer driven by energy import prices, but by domestic factors. The increased profit margins of companies are a major reason for persistent inflation. In this difficult environment, the trade unions are faced with the challenge of securing real wages - and companies have the responsibility of making their contribution to returning to the path of political stability by reducing excess profits. |
| Abstract: | Mit einem Rückgang der Reallöhne um 4, 0 % erlitten die Beschäftigten in der Europäischen Union im Jahr 2022 einen bisher einmaligen Verlust an Kaufkraft. Ursächlich war der rapide Anstieg der Verbraucherpreise, hinter den das Nominallohnwachstum deutlich zurückfiel. Inzwischen wird die Teuerung nicht mehr von den Importpreisen für Energie, sondern von inländischen Faktoren bestimmt. Die gestiegenen Gewinnmargen der Unternehmen sind dabei eine wesentliche Ursache der beharrlichen Inflation. In diesem schwierigen Umfeld ergibt sich für die Gewerkschaften die Herausforderung, die Reallöhne zu sichern - und für die Unternehmen die Verantwortung, durch den Abbau der Übergewinne ihren Beitrag zur Rückkehr auf den stabilitätspolitischen Pfad zu leisten. |
| Keywords: | Inflation, Wirtschaftliche Entwicklung, Wirtschaft |
| Date: | 2023 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:wsirep:299258&r= |
| By: | International Monetary Fund |
| Abstract: | The Investment Funds (IFs) industry in Luxembourg dominates the domestic financial sector and the EU funds landscape. The Assets Under Management (AUM) of the IF industry in Luxembourg is around 80 times its GDP, much higher than banking (13 times GDP) and insurance (3 times GDP). Based on IF domicile, Luxembourg has the largest fund industry by AUM in Europe, followed by Ireland; it is also the second largest fund industry in the world, next only to the USA. |
| Date: | 2024–06–24 |
| URL: | https://d.repec.org/n?u=RePEc:imf:imfscr:2024/181&r= |
| By: | Kenny, Seán (Department of Economic History, Lund University) |
| Abstract: | This paper constructs annual GDP estimates for Ireland (1924-47) to join the first complete official aggregates. The new series is deployed to revisit Ireland’s economic performance in the post-independence decades. Ireland’s economy grew at 1.5 per cent per annum and average living standards improved by 40 per cent. The bulk of this was due to labour productivity improvements stemming from workers moving out of agriculture. Starting in 1924 captures the civil war recovery and paints a more positive picture of the 1920s, while the traditional narrative of a “mild” Great Depression is upheld. The 1930s recovery was aided by strong contributions from services and industry, while the economy contracted by 7 per cent during the early “Emergency”. Though supporting O’Rourke’s view that Irish growth was not unique against European peers, the new data provide evidence of stronger convergence against UK regions. Industry contributed most to growth during the period, growing at 3.6 per cent per annum. The equivalent rate for services was 1.3 per cent, though it contributed substantially during recovery periods. Agricultural output hardly changed due to its post-war contraction. This paper joins a growing number of studies that suggest that Ireland was poorer at independence than previously believed. |
| Keywords: | Historical National Accounts; Interwar period; Ireland; GDP; Comparative Growth; Regional GDP; Productivity |
| JEL: | N10 N14 O47 |
| Date: | 2024–05–27 |
| URL: | https://d.repec.org/n?u=RePEc:hhs:luekhi:0258&r= |
| By: | Mr. Kevin Fletcher; Veronika Grimm; Thilo Kroeger; Thilo Kroeger; Ms. Aiko Mineshima; Christian Ochsner; Mr. Andrea F Presbitero; Paul Schmidt-Engelbertz; Jing Zhou |
| Abstract: | Global geopolitical tensions have risen in recent years, and European energy prices have been volatile following Russia’s invasion of Ukraine. Some analysts have suggested that these shifting conditions may significantly affect FDI both to and from Germany. To shed light on this issue and other factors affecting German FDI, we leverage two detailed and complementary FDI datasets to explore recent trends in German FDI and how it is affected by geopolitical tensions and energy prices. In doing so, we also develop a new measure of geopolitical alignment. Our main findings include the following: (i) the post-pandemic recovery in Germany’s inward and outward FDI has been weaker than in the US or the rest of the European Union (EU27) as a whole; (ii) Germany’s outward FDI linkages with geopolitically distant countries have been weakening since the Global Financial Crisis; (iii) the relationship between Germany’s outward FDI and geopolitical distance has become more pronounced over the last six years; (iv) Germany’s outward FDI to China-Russia bloc countries is more sensitive to recent geopolitical developments compared with that to US-bloc countries; and (v) Germany’s outward FDI in energy-intensive sectors decreases as destination countries’ energy costs increase, but energy costs do not appear to have a statistically significant effect on outward FDI in non-energy intensive sectors. |
| Keywords: | Germany; foreign direct investment; geopolitical fragmentation |
| Date: | 2024–06–28 |
| URL: | https://d.repec.org/n?u=RePEc:imf:imfwpa:2024/130&r= |
| By: | Angelou, Angelos |
| Abstract: | The article examines potential linkages between the management of the Eurozone crisis and the EU’s economic response to the COVID-19 pandemic. It does so by focusing on the Commission and its approach to conditionality-based lending. The analysis employs the concept of inter-crisis learning to argue that the lessons the Commission drew from the Eurozone crisis informed its conditionality-related proposals for the National Recovery and Resilience Plans (NRRPs). By using qualitative data, including eight elite interviews, the article suggests that the Commission derived lessons regarding the design, negotiation, implementation, and monitoring of conditionality programs. These lessons led to cognitive changes within the organisation and to behavioral changes that were reflected in its proposals regarding the conditionality attached to NRRPs. The article contributes to the literature examining the EU’s economic response to the pandemic by discussing the Commission’s drivers and preferences during that period. It also complements the literature on coordinative Europeanisation by offering insights on how the European Commission shapes its proposals on conditionality-based lending; a central element of its relationship with member states when it comes to crisis management. Finally, it discusses the implications of the article’s main thesis for the process of European integration. |
| Keywords: | crises; European Commission; Eurozone; learning; RRF |
| JEL: | N0 |
| Date: | 2024–05–30 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:123867&r= |
| By: | Zattler, Jürgen K. |
| Abstract: | The environment in which development policy operates has changed quickly. Some of these changes are longer-term trends to which development policy should adapt: the global economy is in upheaval, while global crises are becoming the norm and are increasing the debt level even further. Moreover, they are exacerbating inequality in our partner countries, which in turn is undermining democratic structures. Public budgets are increasingly coming under pressure and populist forces are calling into question the very principle of development policy. At the same time, the world is becoming more multipolar and developing countries are gaining in self-confidence.Development policy needs to find structural answers to these challenges: – It should explicitly see itself as part of overall policy and should systematically contribute to overcoming global challenges; – It must find new ways to ensure that environmental transformation goes hand in hand with social progress; – It needs to become even more effective and more political, particularly by systematically integrating bilateral contributions into the policies of the partner countries and into multilateral and European approaches; moreover, policy reforms must be addressed comprehensively, most importantly those related to the green transformation; – It must profoundly change the way it mobilises private investments, focusing not on subsidising individual investments but on transforming markets; – Finally, development partners need to team up to find solutions to the acute debt and financial crisis. This paper will not only outline current trends and formulate principles for a modern development policy. It will also show examples of how these principles could be put into practice through concrete initiatives: – Socio-ecological fiscal reforms: environmentally harmful subsidies can be repurposed for social security – A new Sustainable Development Goal (SDG) to reduce intra-country inequality – Climate programmes that focus on policy reforms. |
| Keywords: | international financial system, development financing |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:idospb:299129&r= |