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on Microeconomic European Issues |
| By: | MARQUES SANTOS Anabela (European Commission - JRC); MOLICA Francesco (European Commission - JRC); CONTE Andrea (European Commission - JRC) |
| Abstract: | This brief investigates regional economic disparities within the European Union. The analysis focuses on GDP per capita and compares each region’s performance to two benchmarks: the highest GDP per capita in the EU (EU regional gap) and the highest GDP per capita within that region’s country (in-country gap). EU regional economic gaps narrowed on average from 2000 to 2021, while intra-country disparities widened, especially in regions with emerging or moderate innovation levels. A higher innovation capacity at regional level generally correlated with smaller economic gaps, both relative to the EU and within countries. Reduction in the economic gap is positively correlated with higher value of R&D expenditure per capita in the previous year, although this relationship does not imply causation. |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc136779 |
| By: | Thomas Y. Mathä; Ana Montes-Viñas; Giuseppe Pulina; Michael Ziegelmeyer |
| Abstract: | This report presents the methodology and main descriptive results of the fourth wave of the Cross-border Household Finance and Consumption Survey (XB-HFCS) conducted in 2021. This is a household survey of employees in Luxembourg who live abroad and regularly commute across the border. We analyse the composition and level of their assets and liabilities, net wealth and income, and compare them to similar households (including at least one employee) that live and work in Luxembourg, Belgium, France or Germany. Compared to households who were employed in their country of residence, cross-border commuters were more likely to be homeowners and tended to enjoy higher gross income and net wealth. |
| Keywords: | Cross-border commuters, households, survey, assets, liabilities, wealth, income. |
| JEL: | G51 D31 D14 C81 C83 J61 |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:bcl:bclwop:bclwp188 |
| By: | AGUNDEZ GARCIA Ana (European Commission - JRC); BORNUKOVA Kateryna (European Commission - JRC); HERNANDEZ Adrian; PICOS Fidel (European Commission - JRC) |
| Abstract: | Child cash support ranges from 3.2% to 12% of GDP per capita across the 27 countries of the European Union. Different policy instruments are used through the tax and benefit systems to achieve family support objectives. Child cash support is a powerful tool in the fight against child poverty: some EU countries achieve reductions in child at-risk-of-poverty (AROP) rate by as much as 16 percentage points thanks to child cash support. Universal benefits ensure broad coverage, while means-tested benefits are better targeted. However, existing means-tested benefits alone do not provide sufficient support to lift families with children above the poverty line. A combination of universal and means-tested benefits would ensure coverage, while also directing additional resources to those most in need. |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc138408 |
| By: | Max Löffler (Maastricht University & University of Cologne); Sebastian Siegloch (University of Cologne) |
| Abstract: | We investigate the welfare implications of property taxation. We apply a sufficient statistics approach that accounts for the distributional effects of tax changes at the household level within a spatial equilibrium framework. We show that equity effects are driven by price adjustments in the housing and labor markets, while efficiency is determined by changes in public goods. Using microdata and exploiting 5, 500 municipal property tax changes in Germany, where assessed housing values remain constant, we find that 83 percent of the tax burden is passed through to rental prices, with modest labor market effects. Simulations of the welfare effects of property taxes reveal that the price effects of property tax hikes are regressive. Despite the low efficiency costs of the tax, it becomes distributionally neutral only if public good preferences are very high. |
| Keywords: | property taxation, welfare, tax incidence, local labormarkets, rental housing |
| JEL: | H22 H41 H71 R13 R31 R38 |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:ajk:ajkdps:331 |
| By: | Valeria Ferraretto; Nicole Hiekel (Max Planck Institute for Demographic Research, Rostock, Germany); Agnese Vitali |
| JEL: | J1 Z0 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:dem:wpaper:wp-2024-020 |
| By: | Lipowski, Cäcilia; Salomons, Anna; Zierahn-Weilage, Ulrich |
| Abstract: | We study how new digital technology reshapes vocational training and skill acquisition and its impact on workers' careers. We construct a novel database of legally binding training curricula and changes therein, spanning the near universe of vocational training in Germany over five decades, and link curriculum updates to breakthrough technologies using Natural Language Processing techniques. Our findings reveal that technological advances drive training updates, with curriculum content evolving towards less routine intensive tasks, and greater use of digital and social skills. Using administrative employer-employee data, we show that educational updates help workers adapt to new demands for their expertise, and earn higher wages compared to workers with outdated skills. These findings highlight the role of changes in withinoccupational skill supply in meeting evolving labor market demands for non-college educated workers. |
| Keywords: | Technological Change, Vocational Training, Skill Updating |
| JEL: | J23 J24 J31 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:zewdip:300271 |
| By: | Mario Cerrato; Hormoz Ramian; Shengfeng Mei |
| Abstract: | We show that European firms, at the peak of the COVID-19 shock in 2020:Q2, went into a “panic borrowing” status and drew down €87bn in a very short period. We show that firms that drew down credit lines had less stringent solvency and liquidity constraints. Our study exploits the implications of the social distancing policies to corporate operations across Europe. The novel aspect of our study is that we focus on shocks unrelated to firms’ fundamentals and investigate how firms manage their cash flow risk. It is an important novel aspect of this study as a large part of the literature has studied cash flow risk management follow ingendogenous shocks due to bad management decisions. In doing so, we use COVID-19 infection data and proxies for social distancing policies in Europe as a natural laboratory. Finally, we show that European firms during the pandemic crisis increased drawdowns, on average, by 3.35 percentage points in response to an unexpected one percentage point fall in their cash flows, butonly when firms’earnings are negative.This result is driven by the lockdown policies introduced in Europe. |
| Keywords: | Corporate credit lines, cashholding, investment, default risk |
| JEL: | G21 G32 G33 |
| Date: | 2023–02 |
| URL: | https://d.repec.org/n?u=RePEc:gla:glaewp:2023_05 |
| By: | Dekkera, Thekla; Jantos, Louisa |
| Abstract: | Sustainability transformation needs regional engagement of the entirety of actors within. One central actor is the university with its mission and activities to transfer knowledge. This paper provides a first approach to identifying best practice regions for sustainability transformation within Europe and addresses potential literature gaps. By composite indexing of systemic sustainability indices and knowledge transfer metrics on a regional level as well as a subsequent systematic literature review, this work aims at (1) providing best practice regions for sustainability transformation and actor collaboration as well as (2) future research avenues. The study selects Copenhagen, Zurich, Stockholm, and Helsinki as regions of interest. It advocates exploring the dynamics within entire regions, emphasizing the interplay of actors in Regional Innovation Systems (RIS). |
| Abstract: | Die Transformation in Richtung Nachhaltigkeit erfordert ein regionales Engagement der Gesamtheit der Akteure. Ein zentraler Akteur ist die Universität mit ihrem Auftrag und ihren Aktivitäten des Wissenstransfers. Diese Studie bietet einen ersten Ansatz zur Identifizierung von Best-Practice-Regionen für die Nachhaltigkeitstransformation in Europa und geht auf mögliche Literaturlücken ein. Durch eine zusammengesetzte Indexierung von systemischen Nachhaltigkeitsindizes und Wissenstransfer-Metriken auf regionaler Ebene sowie eine anschließende systematische Literaturrecherche zielt diese Arbeit darauf ab, (1) Best-Practice-Regionen für die Nachhaltigkeitstransformation und die Zusammenarbeit von Akteuren zu identifizieren sowie (2) zukünftige Forschungsansätze zu identifizieren. Die Studie wählt Kopenhagen, Zürich, Stockholm und Helsinki als Regionen von Interesse aus. Sie plädiert dafür, die ganzheitliche Dynamik innerhalb der Regionen zu untersuchen und dabei das Zusammenspiel der Akteure in regionalen Innovationssystemen (RIS) zu betonen. |
| Keywords: | Regional Innovation System, Knowledge Transfer, best practice, Europe, University |
| JEL: | I23 O31 O35 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:ifhwps:300696 |
| By: | Aksoy, Cevat Giray (European Bank for Reconstruction and Development); Chupilkin, Maxim (University of Oxford); Koczan, Zsoka (EBRD, London); Plekhanov, Alexander (EBRD, London) |
| Abstract: | The purpose of this paper is to offer a comprehensive overview of the socio-economic effects of earthquakes. We begin with a thorough literature review. Following this, we assess policy measures taken in response to major earthquakes, drawing on existing research to formulate insights and recommendations that policymakers can use to effectively navigate the risks in the aftermath of such disasters. In addition to reviewing the literature and analyzing policy interventions, we conduct an in-depth examination of the economic repercussions of earthquakes. Our analysis utilizes data from around 80 significant earthquakes across more than 30 countries. The findings indicate that, while the overall effect of major earthquakes on GDP per capita is generally small, the impact on fiscal accounts can be substantial, although this varies significantly between economies. External trade balances tend to weaken, with a considerable decrease in exports and an ambiguous effect on imports. |
| Keywords: | earthquake, synthetic controls, policy responses, Türkiye |
| JEL: | E60 H54 H84 Q54 |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17108 |
| By: | Mr. Nathaniel G Arnold; Guillaume Claveres; Jan Frie |
| Abstract: | Relative to the US, productivity growth and investment in R&D in lagging in the EU, where it is more difficult to finance and scale up promising, innovative startups. Many of the most successful EU startups move elsewhere for financing, causing the EU to lose out on both the direct growth benefits and positive spillovers from these innovative firms. The EU could nurture innovative startups by accelerating the development of its venture capital (VC) ecosystem. Reducing regulatory frictions, especially ones that deter pensions funds and insurers from investing in VC, combined with well-designed tax incentives for R&D investments could help accelerate the development of the VC sector. These and other key CMU initiatives, such as the consolidation of stock markets and reforming and harmonizing insolvency regimes, will take time. Given the urgency to boost innovation, giving public financial institutions like the European Investment Fund a more active and expanded role in kickstarting VC markets where needed and in familiarizing investors with the VC asset class can be a helpful interim step. |
| Keywords: | Startups; Venture capital; Productivity; Capital Markets Union |
| Date: | 2024–07–12 |
| URL: | https://d.repec.org/n?u=RePEc:imf:imfwpa:2024/146 |
| By: | Cameron, Aliénor (Climate Economics Chair; EconomiX (Université de Paris-Nanterre); ADEME, Paris, France); Garrone, Maria (European Commission, DG GROW, Chief Economist Team (A1), Brussels, Belgium) |
| Abstract: | This paper analyses the relationship between firms' emission intensity and their corporate performance based on a constructed dataset providing detailed micro-level information of industrial firms covered by the EU ETS |
| Keywords: | EU ETS, heavy industry, emission intensity, corporate performance. |
| JEL: | D22 H23 L51 Q58 |
| Date: | 2024–05 |
| URL: | https://d.repec.org/n?u=RePEc:bda:wpsmep:wp2024/24 |
| By: | Teresa Lackner (University of Graz); Luca E. Fierro (International Institute for Applied Systems Analysis (IIASA)); Patrick Mellacher (University of Graz) |
| Abstract: | The paper introduces an integrated approach, blending Opinion Dynamics with a Macroeconomic Agent-Based Model (OD-MABM). It aims to explore the co-evolution of climate change mitigation policy and public support. The OD-MABM links a novel opinion dynamics model that is calibrated for European countries using panel survey data to the Dystopian Schumpeter meeting Keynes model (DSK). Opinion dynamics regarding stringent climate policy arise from complex interactions among social, political, economic and climate systems where a household’s opinion is affected by individual economic conditions, perception of climate change, industry-led (mis-)information and social influence. We examine 133 pathways for climate change mitigation policies in the EU, integrating various carbon tax schemes and revenue recycling mechanisms. Our findings reveal that while effective carbon tax policies initially lead to a decline in public support due to substantial macroeconomic transition costs, they concurrently drive a positive social tipping point in the future. This shift stems from the evolving economic and political influence associated with the fossil fuel-based industry, gradually diminishing as the transition unfolds. Second, hybrid revenue recycling strategies that combine green subsidies with climate dividends successfully address this intertemporal tradeoff, broadening public support right from the introduction of the carbon tax. A decomposition of opinion dynamics into the different channels reveals the important role of social influence through which individual experience can propagate within social networks giving rise to rapid and non-linear opinion swings. |
| Keywords: | Climate change, mitigation policy, opinion dynamics, agent-based models, transition risks. |
| JEL: | C63 H31 Q43 Q50 |
| Date: | 2024–02 |
| URL: | https://d.repec.org/n?u=RePEc:grz:wpaper:2024-07 |
| By: | Stéphane Lhuissier; Aymeric Ortmans; Fabien Tripier |
| Abstract: | We introduce an approach to measure the risk of inflation dispersion among euro area countries. Our measure reflects the dissimilarity between the full predictive inflation distributions of member countries, and thus captures how "far" apart inflation levels are expected to be. The risk of inflation dispersion exhibits a countercyclical behavior along the business cycle. We document that the rising risk of inflation dispersion is mainly driven by a deterioration in financial conditions, while a robust anchoring of inflation expectations in each country tends to mitigate this risk. We further demonstrate that our measure has predictive power for future euro area inflation realizations as well as for variations in the monetary authority's interest rate. |
| Keywords: | Inflation Dispersion, Kullback-Leibler, Euro area, Quantile Regression, Phillips Curve |
| JEL: | D80 E31 E58 F45 G12 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:bfr:banfra:954 |
| By: | Weitzel, Matthias (European Commission, Joint Research Centre, Calle Inca Garcilaso 3, 41092 Sevilla, Spain); Garaffa, Rafael (European Commission, Joint Research Centre, Calle Inca Garcilaso 3, 41092 Sevilla, Spain); Van der Vorst, Camille (European Commission, Joint Research Centre, Calle Inca Garcilaso 3, 41092 Sevilla, Spain) |
| Abstract: | Indirect effects can make the tourism sector sensitive to changes in energy prices, leading to relative larger losses in output than other economic sectors. The paper assess how energy price shocks can affect tourism in the EU |
| Keywords: | Tourism, energy price shock, CGE modelling |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:bda:wpsmep:wp2024/26 |
| By: | Bosio, Andrea Odille; Croce, Annalisa; Toschi, Laura; Ughetto, Elisa |
| Abstract: | This paper highlights the main challenges faced by the Cleantech sector. Key barriers include limited access to external finance, with many respondents expecting to raise significant funds in the next five years. Additionally, stringent and uncertain standards and regulations create operational challenges. Expanding our understanding of the Cleantech sector can enhance targeted support schemes to accelerate clean technology adoption, reduce greenhouse gas emissions, and improve environmental sustainability. This is the latest paper resulting from a project on "The cleantech industry in the European Green Deal: policy challenges and the finance landscape for SMEs" (CLEU), initiated by EIF's Market Assessment and Research Division. Funded by the EIB Institute's University Research Sponsorship (EIBURS) programme, the project aims to enhance our understanding of the Cleantech sector and improve the design of support schemes to accelerate the green transition in the EU. The EIF Working Papers are designed to make available to a wider readership selected topics and studies in relation to EIF's business. The Working Papers are edited by the EIF and are typically authored or co-authored by EIF staff or are written in cooperation with EIF. |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:eifwps:300656 |
| By: | Inès Guguen-Gicquel (LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - Nantes Univ - IAE Nantes - Nantes Université - Institut d'Administration des Entreprises - Nantes - Nantes Université - pôle Sociétés - Nantes Univ - Nantes Université); Ethel Jouannet (Nantes Univ - IUT Saint-Nazaire - Nantes Université - Institut Universitaire de Technologie Saint-Nazaire - Nantes Université - pôle Sciences et technologie - Nantes Univ - Nantes Université); Olivier Gonçalves (GEPEA-BAM - Bioprocédés Appliqués aux Microalgues - GEPEA - Laboratoire de génie des procédés - environnement - agroalimentaire - ONIRIS - École nationale vétérinaire, agroalimentaire et de l'alimentation Nantes-Atlantique - CNRS - Centre National de la Recherche Scientifique - IMT Atlantique - IMT Atlantique - IMT - Institut Mines-Télécom [Paris] - Nantes univ - UFR ST - Nantes université - UFR des Sciences et des Techniques - Nantes Université - pôle Sciences et technologie - Nantes Univ - Nantes Université - Nantes Univ - IUT Saint-Nazaire - Nantes Université - Institut Universitaire de Technologie Saint-Nazaire - Nantes Université - pôle Sciences et technologie - Nantes Univ - Nantes Université, GEPEA - Laboratoire de génie des procédés - environnement - agroalimentaire - ONIRIS - École nationale vétérinaire, agroalimentaire et de l'alimentation Nantes-Atlantique - CNRS - Centre National de la Recherche Scientifique - IMT Atlantique - IMT Atlantique - IMT - Institut Mines-Télécom [Paris] - Nantes univ - UFR ST - Nantes université - UFR des Sciences et des Techniques - Nantes Université - pôle Sciences et technologie - Nantes Univ - Nantes Université - Nantes Univ - IUT Saint-Nazaire - Nantes Université - Institut Universitaire de Technologie Saint-Nazaire - Nantes Université - pôle Sciences et technologie - Nantes Univ - Nantes Université) |
| Abstract: | This research combines the investigation on the contributions of the AlgoSolis laboratory in the development of innovations, emerging new fields and start-ups and the analysis of LLDC Algae, a company located in the West of France. Using both point of view will help to understand the opportunities and threats, as well as the key factors of success in the microalga market. This research objective is to present the resources conditions and the necessary expertise to develop microalga transformation for different markets, to support a sustainable agriculture. Two industrial applications seem to be more promising in our context of renewal solutions to support a low environmental impact: greenfeed for the animal feeding and green crops that propose crop supplements based on microalga. The company LLDC Algae targets the needs of both markets thanks to its expertise and to the high-performance proposal compared to traditional solutions. We are looking for the adopters' factors to increase the implementation of these solutions |
| Keywords: | microalga, innovation, sustainable agriculture, case study |
| Date: | 2024–06–13 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04631711 |