|
on Microeconomic European Issues |
| By: | Marc Fleurbaey (Paris School of Economics); Domenico Moramarco (University of Bari); Vito Peragine (University of Bari) |
| Abstract: | This paper proposes a unified framework to measure inequality and social welfare in the case in whichboth inequalities between groups and inequalities within groups matter, but priority is recognized to the former. This novel approach can be applied to a variety of contexts, including the analysis of inequalities of opportunity, ethnic discrimination and gender disparities. The empirical part of the paper analyzes two relevant cases: (i) the evolution of income inequality and ethnic discrimination in the United States during the period 1970-2014; (ii) the comparison of four European countries - Italy, Spain, France and Germany - in terms of inequality of opportunity. |
| Keywords: | Inequality, social welfare, horizontal inequalities, inequality of opportunity, ethnic discrimination |
| JEL: | D30 D63 I30 |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:inq:inqwps:ecineq2024-674 |
| By: | Inga Laß (Melbourne Institute: Applied Economic & Social Research, The University of Melbourne); Irma Mooi-Reci (Melbourne Institute: Applied Economic & Social Research, The University of Melbourne); Mark Wooden (Melbourne Institute: Applied Economic & Social Research, The University of Melbourne); Martin Bujard (University Heidelberg, Germany) |
| Abstract: | In many countries, temporary work is negatively associated with fertility. Yet, the mechanisms underlying this relationship remain poorly understood. This study investigates a range of mediating pathways (subjective and objective financial situation, short tenure, and employment uncertainty) through which temporary work influences first births in two contrasting contexts: Australia and Germany. Event history and path models are estimated using 19 years of data from both the Household, Income and Labour Dynamics in Australia (HILDA) Survey (n=28, 493) and the German Socio-Economic Panel Study (GSOEP) (n=31, 480). Results show that casual work among women and men in Australia, and fixedterm contracts among women in Germany, are associated with a lower likelihood of first birth than permanent employment. Lower wages explained a significant proportion of these differentials for both genders. The higher likelihood of being new in a job (in Germany) and higher perceived job insecurity (in Australia) were also relevant mediators, but only among women. These gendered outcomes suggest that women, in their role as primary carers, place more value on obtaining secure and stable employment prior to first birth. For men, in their role as primary earners, securing higher-paying jobs matters more for fertility than a stable job. |
| Keywords: | contingent employment, fertility, employment uncertainty, fixed-term contracts, casual work |
| JEL: | J13 J31 J41 |
| Date: | 2024–05 |
| URL: | https://d.repec.org/n?u=RePEc:iae:iaewps:wp2024n05 |
| By: | König, Felix; Manning, Alan; Petrongolo, Barbara |
| Abstract: | Using micro data for the UK and Germany, we provide novel evidence on the cyclical properties of reservation wages and estimate that wages and reservation wages are characterised by moderate and very similar degrees of cyclicality. Several job search models that quantitatively match the cyclicality of wages tend to overpredict the cyclicality in reservation wages. We show that this puzzle can be addressed when reservation wages display backward-looking reference dependence. Model calibrations that allow for reference dependence match the empirically observed cyclicality of wages and reservation wages for plausible value of all other model parameters. |
| Keywords: | job search; reservation wages; wage cyclicality; reference dependence |
| JEL: | E24 J63 J64 |
| Date: | 2024–06–03 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:125342 |
| By: | Hong Xu |
| Abstract: | The global momentum towards establishing sustainable energy systems has become increasingly prominent. Hydrogen, as a remarkable carbon-free and renewable energy carrier, has been endorsed by 39 countries at COP28 in the UAE, recognizing its essential role in global energy transition and industry decarbonization. Both the European Union (EU) and China are at the forefront of this shift, developing hydrogen strategies to enhance regional energy security and racing for carbon neutrality commitments by 2050 for the EU and 2060 for China. The wide applications of hydrogen across hard-to-abate sectors and the flexibility of decentralized production and storage offer customized solutions utilizing local resources in a self-paced manner. To unveil the trajectory of hydrogen development in China and the EU, this paper proposes a comparative analysis framework employing key factors to investigate hydrogen developments in both economic powerhouses. Beyond country-wise statistics, it dives into representative hydrogen economic areas in China (Inner Mongolia, Capital Economic Circle, Yangtze River Delta) and Europe (Delta Rhine Corridor) for understanding supply and demand, industrial synergy, and policy incentives for local hydrogen industries. The derived implications offer stakeholders an evolving hydrogen landscape across the Eurasian continent and insights for future policy developments facilitating the global green transition. |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2408.08874 |
| By: | Russo, Margherita; Simonazzi, Annamaria; Cetrulo, Armanda Cetrulo |
| Abstract: | This study investigates the impact of technological upgrades and automation, on employment and working conditions in the automotive, sector in Romania, Spain and Germany. Utilising qualitative research methods, the study examines work organisation, job quality, and occupational composition from a gender perspective. The findings of the study exploring the impact of technology, identified main drivers for automation implementation as increased productivity, quality, and reduced manual labour availability. Automation and robotisation have also increased flexibility to cope with the variable composition of final products and the traceability of production processes. Barriers include high costs, technical difficulties, and the need for worker training. It observed that automation can simplify tasks, create new jobs, and increase responsibilities in middle management and team/shift leaders, while potentially reducing worker autonomy and increasing work pace. Positive job quality implications include ergonomics and improved operators' safety. Automation has reduced the number of line operators, while increased maintenance workers, quality control, logistics and indirect labour. The study observed vertical and horizontal gender segregation in hybrid production processes, with advancements towards horizontal gender equality in technologically advanced establishments. Addressing cultural attitudes and technical challenges is crucial for equitable benefits, as both industries currently undergo a transitional phase. |
| Keywords: | automotive sector, automation, digital transformation, OEMs, Ford, Renault, Dacia, Tier 1 suppliers, Tier 2 suppliers, Spain, Romania, Germany |
| JEL: | J5 J51 J58 L1 L62 |
| Date: | 2023–09–24 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:121585 |
| By: | Bietenbeck, Jan (Department of Economics, Lund University); Irmert, Natalie (Department of Economics, Lund University); Nilsson, Therese (Department of Economics, Lund University, and) |
| Abstract: | This paper investigates the role of individualism in explaining cross-country differences in working from home (WFH). Using data from the Current Population Survey (CPS) of the United States and the European Social Survey (ESS), we isolate the influence of individualism by comparing immigrants from different cultural backgrounds residing in the same location. We find that a 10-point increase in country-of-origin individualism, measured on a 0-100 scale, is associated with a 3.9 percentage point (pp) higher likelihood of WFH and 1.12 more weekly WFH hours in the CPS, and a 2 pp higher likelihood of frequent WFH in the ESS. Our analysis of potential mechanisms suggests that individualism influences WFH through higher educational attainment and occupational selection. |
| Keywords: | Working from home; Individualism; Culture; Epidemiological approach |
| JEL: | D22 E24 J20 L23 |
| Date: | 2024–08–27 |
| URL: | https://d.repec.org/n?u=RePEc:hhs:iuiwop:1498 |
| By: | Elvira Vieira (Applied Management Research Unit (UNIAG), Instituto Politécnico de Bragança, Campus de Santa Apolónia / ISAG ? European Business School, Porto / Research Center in Business Sciences and Tourism (CICET ? FCVC), Porto / IPVC ? Polytechnic Institute of Viana); Daniela Silva (ISAG ? European Business School, Porto / Research Center in Business Sciences and Tourism (CICET ? FCVC), Porto); Victor Tavares (ISAG ? European Business School, Porto / Research Center in Business Sciences and Tourism (CICET ? FCVC), Porto) |
| Abstract: | Digital marketing is increasingly essential for the competitiveness of small and medium-sized enterprises (SMEs), particularly in key economic sectors. This paper focuses on the Portuguese footwear industry, dominated by SMEs, to examine the role and effects of digital marketing on business performance. Through qualitative research, including in-depth interviews with managers from five leading companies, we assess how these firms have adopted digital marketing and the impact of such practices. Many SMEs show hesitancy towards digital transformation in marketing, often due to limitations inherent in their business structures and models. This reluctance may compromise their competitive advantage and long-term viability. Given the critical importance of the footwear sector to Portugal's economy, it is vital to understand the factors driving or impeding digital marketing adoption. Our findings indicate that digital marketing substantially boosts the performance of SMEs within this industry. Despite initial resistance, those adopting these practices have seen marked improvements in competitiveness and market positioning. The paper concludes with a call for further research into integrating digital marketing in SMEs, emphasizing its potential to transform business success. These insights provide a foundational reference for future studies on digital marketing strategies and their operational implications in similar sectors dominated by SMEs. |
| Keywords: | Business Digitalization, Competitive Advantage, Digital Marketing, Footwear Industry, Small and Medium-sized Enterprises Performance |
| JEL: | L25 M31 O33 |
| URL: | https://d.repec.org/n?u=RePEc:sek:iefpro:14316278 |
| By: | Gerards Iglesias, Simon; Krpata, Marie; Kuss, Ana Helena Palermo |
| Abstract: | Dieses Policy Paper untersucht die geopolitische und wirtschaftliche Bedeutung des EU-Mercosur-Abkommens für die Europäische Union (EU) im Rahmen der neuen Wirtschaftssicherheitsstrategie der EU (European Economic Security Strategy). Angesichts geopolitischer Veränderungen und wachsender protektionistischer Tendenzen großer Volkswirtschaften wie China und den USA wird eine engere Zusammenarbeit mit dem Globalen Süden, einschließlich der Mercosur-Staaten, als notwendig erachtet. Deutschland und Frankreich haben ihre Wirtschaftspolitik neu ausgerichtet, insbesondere durch einen aktiven Einsatz für das Zustandekommen einer europäischen Industriestrategie und einer "Derisking-Strategie" zur Reduktion wirtschaftlicher Verwundbarkeiten. Diese sollen die Resilienz der europäischen Volkswirtschaften stärken, eine Verringerung der Risiken durch Diversifizierung der Wirtschaftsbeziehungen gewährleisten, und setzen dabei u.a. auf ausgewogene Partnerschaften (Bundesregierung, 2023). Diese Entwicklungen könnten eine Chance darstellen, traditionell unterschiedliche Auffassungen von Handelspolitik in Deutschland und Frankreich zusammenzubringen. |
| Abstract: | This policy paper analyses the geopolitical and economic significance of the EU-Mercosur agreement for the European Union (EU) in the context of the EU's new European Economic Security Strategy. In view of geopolitical changes and growing protectionist tendencies of large economies such as China and the USA, closer co-operation with the Global South, including the Mercosur countries, is considered necessary. Germany and France have adapted their economic policies accordingly, in particular by actively promoting a European industrial strategy and a derisking strategy to reduce economic vulnerabilities. These strategies should enable a strengthening of the EU's economic resilience, reduce risks through the diversification of trade partners and promote partnerships with third countries at eye-level. These developments could further the convergence of two traditionally different views of trade policy between France and Germany. [...] |
| Keywords: | Freihandelsabkommen, Geopolitik, Wirkungsanalyse, EU-Staaten, Mercosur-Staaten |
| JEL: | F02 F13 F53 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:iwkpps:302190 |
| By: | Kumar Verma, Akhilesh; McQuinn, Kieran |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:esr:wpaper:wp783 |
| By: | Alessandra Michelangeli; Paola Proietti; Alice Siragusa; Iraklis Stamos |
| Abstract: | Introduction: This paper examines homelessness in the EU and focuses on how countries monitor this phenomenon, looking at the existence of monitoring frameworks and their local dimensions. The 8th Overview of Housing Exclusion in Europe reveals that there are at least 895, 000 individuals experiencing homelessness, sleeping rough or in temporary accommodations, marking a 70% increase compared to a decade ago. To combat this problem, the Lisbon Declaration on Combating Homelessness was signed by EU Member States, institutions, and civil society organizations, aiming to eradicate homelessness by 2030. Method: Desk research and interviews with statistical and homelessness experts were employed to gather relevant information. Result: Diverse legal national definitions, national strategies and monitoring programs at the local level, and socio-demographic profiles of people experiencing homelessness in EU member states. Conclusion: Effective monitoring is crucial for a comprehensive understanding of homelessness and policymaking. |
| Keywords: | Homelessness; deprivation; monitoring; public policies; European Union. |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:mib:wpaper:542 |
| By: | Wouter Simons; Alessandro Turrini; Lara Vivian |
| Abstract: | This discussion paper presents the key features of Artificial Intelligence (AI), highlighting the main differences with respect to previous IT and digital technologies. It presents the most relevant facts about AI diffusion across EU countries, and discusses the main economic implications, focusing especially on its impact on productivity and labour markets. While AI presents a formidable opportunity, it also entails major challenges, with implications for policy. This paper focuses on policies to remove bottlenecks to AI development and adoption, regulatory policies, competition policy, policies to deal with labour market and distributive implications. |
| JEL: | O30 J20 J30 O40 |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:euf:dispap:210 |
| By: | Łukasz Gębski; Georges Daw (Laboratoire d’Économie Dionysien-LED, EA 3391, Université Paris 8 Vincennes - Saint-Denis, Saint-Denis, France - LED) |
| Abstract: | Consumer protection in the financial market has several dimensions. From a formal point of view, consumer rights are guaranteed by law. Educational programs are implemented in schools and the media to promote knowledge and responsible use of financial products and services. Despite the efforts made, the number of incorrect and suboptimal financial decisions is so high that the risk of households falling into excessive debt remains significant. The limited effectiveness of the law led to the claim that only effective education can reduce the risk of suboptimal financial decisions. Unfortunately, the efforts made in this area are not fully satisfactory. The study of financial knowledge of consumers, which was conducted in Poland in January 2024, aimed to verify consumer errors and their nature. As part of the consumer study, not only declared knowledge was verified, but also actual knowledge. The researchers' doubts resulted from a comparison of the results of scientific research in this area with the current market situation. Consumers declare a high level of knowledge of economic and financial concepts. In practice, however, they make mistakes that do not only indicate behavioral cognitive errors but also a lack of knowledge. The test questions were constructed in such a way as to verify the declared knowledge (based on verification questions). These showed that the actual level of knowledge was lower than the declared one. A review of the literature and studies of financial knowledge and financial competence of consumers in Central European countries was also carried out. Analysis of the results allowed for the formulation of conclusions regarding the educational gap in relation to social characteristics. The conclusions resulting from the study raise questions about the effectiveness of the educational methods used and indicate possible directions of changes in the consumer regulation policy, the aim of which is to ensure a high level of consumer protection. |
| Abstract: | La protection des consommateurs sur le marché financier revêt plusieurs dimensions. D'un point de vue formel, les droits des consommateurs sont garantis par la loi. Des programmes éducatifs sont mis en œuvre dans les écoles et les médias pour promouvoir la connaissance et l'utilisation responsable des produits et services financiers. En dépit des efforts déployés, le nombre de décisions financières incorrectes et sous-optimales est si élevé que le risque de surendettement des ménages reste important et susceptible de conséquences macroéconomiques. L'efficacité limitée de la loi a conduit à affirmer que seule une éducation efficace peut réduire le risque de décisions financières sous-optimales. Cependant, les efforts déployés dans ce domaine ne sont pas encore satisfaisants. L'étude sur les connaissances financières des consommateurs, menée en Pologne en janvier 2024, visait à vérifier les erreurs commises par ces derniers et leur nature. Dans le cadre de l'étude sur les consommateurs, nous avons vérifié non seulement les connaissances déclarées, mais aussi les connaissances réelles. Les préoccupations des chercheurs résultent d'une comparaison entre les résultats de la recherche scientifique dans ce domaine et la situation effective du marché. Les consommateurs déclarent avoir un niveau élevé de connaissances des concepts économiques et financiers. Cependant, dans la pratique, ils commettent des erreurs qui ne sont pas uniquement d'ordre cognitif et comportemental, mais aussi liées à un manque de connaissances. Les questions du test non-paramétrique ont été formulées de manière à vérifier les connaissances déclarées (sur la base de questions de vérification). Elles ont révélé que le niveau effectif de connaissances était inférieur au niveau déclaré. Une revue de la littérature et des études sur les connaissances et les compétences financières des consommateurs dans les pays d'Europe centrale a également été réalisée. L'analyse des résultats a permis de formuler des conclusions concernant les lacunes en matière d'éducation financière par rapport aux normes actuelles. |
| Keywords: | financial knowledge consumer finance household finance responsible lending and borrowing JEL Classification: G51 G53 I22, financial knowledge, consumer finance, household finance, responsible lending and borrowing JEL Classification: G51, G51, G53, I22 |
| Date: | 2024–08–23 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04678764 |
| By: | Marie Lassalas (SMART - Structures et Marché Agricoles, Ressources et Territoires - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Rennes Angers - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement); Hervé Guyomard (SDAR Bretagne Normandie - Services déconcentrés d'appui à la recherche Bretagne-Normandie - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Cécile Détang-Dessendre (INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Vincent Chatellier (SMART - Structures et Marché Agricoles, Ressources et Territoires - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Rennes Angers - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement); Pierre Dupraz (SMART - Structures et Marché Agricoles, Ressources et Territoires - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Rennes Angers - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement) |
| Abstract: | This paper assesses the environmental ambition of 2023-2027 Common Agricultural Policy in France. Since conditionality and agri-environment-climate measures are only marginally improved relative to the previous period, attention is focused on the new environmental instrument of the eco-scheme that in France targets the whole farm. Results suggest low environmental progress since almost all French farms would reach the standard level of the eco-scheme by one of the three access paths with unchanged farming practices, and 85% of them would reach the superior level. The percentage of farms at the superior level would be lower for farms specialized in annual crops than for cattle farms. We then show that the payment difference of e20 per hectare between the standard and superior level is probably insufficient for farms specialized in cereals, oilseeds and protein crops to offset the additional cost of the change in farm practices required to move from the standard to the superior level. |
| Keywords: | CAP, France, Eco-scheme, Environment, FADN 1 |
| Date: | 2024–08–12 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04681561 |
| By: | Łukasz Gębski (Institute of Banking, Warsaw School of Economics, 02-554 Warszawa, Poland); Georges Daw (Université Paris-Saclay, UFR Économie-Droit-Management, Bât. A – Office A6, 54 Bd. Desgranges, 92330 Sceaux, France., Laboratoire d’Économie Dionysien-LED, EA 3391, Université Paris 8 Vincennes - Saint-Denis, Saint-Denis, France - LED) |
| Abstract: | Consumer protection in the financial market has several dimensions. From a formal point of view, consumer rights are guaranteed by law. Educational programs are implemented in schools and the media to promote knowledge and responsible use of financial products and services. Despite the efforts made, the number of incorrect and suboptimal financial decisions is so high that the risk of households falling into excessive debt remains significant. The limited effectiveness of the law led to the claim that only effective education can reduce the risk of suboptimal financial decisions. Unfortunately, the efforts made in this area are not fully satisfactory. The study of financial knowledge of consumers, which was conducted in Poland in January 2024, aimed to verify consumer errors and their nature. As part of the consumer study, not only declared knowledge was verified, but also actual knowledge. The researchers' doubts resulted from a comparison of the results of scientific research in this area with the current market situation. Consumers declare a high level of knowledge of economic and financial concepts. In practice, however, they make mistakes that do not only indicate behavioral cognitive errors but also a lack of knowledge. The test questions were constructed in such a way as to verify the declared knowledge (based on verification questions). These showed that the actual level of knowledge was lower than the declared one. A review of the literature and studies of financial knowledge and financial competence of consumers in Central European countries was also carried out. Analysis of the results allowed for the formulation of conclusions regarding the educational gap in relation to social characteristics. The conclusions resulting from the study raise questions about the effectiveness of the educational methods used and indicate possible directions of changes in the consumer regulation policy, the aim of which is to ensure a high level of consumer protection. |
| Abstract: | La protection des consommateurs sur le marché financier revêt plusieurs dimensions. D'un point de vue formel, les droits des consommateurs sont garantis par la loi. Des programmes éducatifs sont mis en œuvre dans les écoles et les médias pour promouvoir la connaissance et l'utilisation responsable des produits et services financiers. En dépit des efforts déployés, le nombre de décisions financières incorrectes et sous-optimales est si élevé que le risque de surendettement des ménages reste important et susceptible de conséquences macroéconomiques. L'efficacité limitée de la loi a conduit à affirmer que seule une éducation efficace peut réduire le risque de décisions financières sous-optimales. Cependant, les efforts déployés dans ce domaine ne sont pas encore satisfaisants. L'étude sur les connaissances financières des consommateurs, menée en Pologne en janvier 2024, visait à vérifier les erreurs commises par ces derniers et leur nature. Dans le cadre de l'étude sur les consommateurs, nous avons vérifié non seulement les connaissances déclarées, mais aussi les connaissances réelles. Les préoccupations des chercheurs résultent d'une comparaison entre les résultats de la recherche scientifique dans ce domaine et la situation effective du marché. Les consommateurs déclarent avoir un niveau élevé de connaissances des concepts économiques et financiers. Cependant, dans la pratique, ils commettent des erreurs qui ne sont pas uniquement d'ordre cognitif et comportemental, mais aussi liées à un manque de connaissances. Les questions du test non-paramétrique ont été formulées de manière à vérifier les connaissances déclarées (sur la base de questions de vérification). Elles ont révélé que le niveau effectif de connaissances était inférieur au niveau déclaré. Une revue de la littérature et des études sur les connaissances et les compétences financières des consommateurs dans les pays d'Europe centrale a également été réalisée. L'analyse des résultats a permis de formuler des conclusions concernant les lacunes en matière d'éducation financière par rapport aux normes actuelles. |
| Keywords: | financial knowledge consumer finance household finance responsible lending and borrowing JEL Classification: G51 G53 I22, financial knowledge, consumer finance, household finance, responsible lending and borrowing JEL Classification: G51, G51, G53, I22 |
| Date: | 2024–08–23 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04679416 |
| By: | Barbora Holubová |
| Abstract: | Personal and household services (PHS) are vital for the well-being of families and individuals, transforming households into workplaces. Despite their importance, this sector faces poor working conditions and undervalued work, particularly in Central and Eastern Europe, due to weak regulations and ineffective industrial relations. Therefore, the Perhouse project, supported by the European Union, aims to explore the challenges in working conditions and the role of social dialogue in advancing PHS regarding working conditions and regulations. This report presents the findings for Slovakia and aims to answer two research questions. First, it examines the current state and structure of service provision in the sector and the working conditions of PHS workers in Slovakia. Second, it explores the role of social dialogue in improving these conditions and developing relevant regulations in Slovakia's PHS sector. The PHS sector in Slovakia unequivocally suffers from a lack of standardised definitions and an overly complex regulatory framework, posing significant challenges in terms of regulation, recognition, and access to services. The sector's diverse nature, characterised by varying levels of formality and informality, creates unacceptable disparities in worker recognition, rights, and compensation. |
| Date: | 2024–08–21 |
| URL: | https://d.repec.org/n?u=RePEc:cel:report:61 |
| By: | Christian Schluter (AMSE - Aix-Marseille Sciences Economiques - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique, University of Southampton); Mark Trede (WWU - Westfälische Wilhelms-Universität Münster = University of Münster) |
| Abstract: | Earnings inequality in Germany has increased dramatically. Measuring inequality locally at the level of cities annually since 1985, we find that behind this development is the rapidly worsening inequality in the largest cities, driven by increasing earnings polarisation. In the cross-section, local earnings inequality rises substantially in city size, and this city-size inequality penalty has increased steadily since 1985, reaching an elasticity of .2 in 2010. Inequality decompositions reveal that overall earnings inequality is almost fully explained by the within-locations component, which in turn is driven by the largest cities. The worsening inequality in the largest cities is amplified by their greater population weight. Examining the local earnings distributions directly reveals that this is due to increasing earnings polarisation that is strongest in the largest places. Both upper and lower distributional tails become heavier over time, and are the heaviest in the largest cities. We establish these results using a large and spatially representative administrative data set, and address the top-coding problem in these data using a parametric distribution approach that outperforms standard imputations. |
| Keywords: | Earnings inequality, Spatial inequality, inequality decomposition, local earningspolarisation, Earnings inequality spatial inequality inequality decomposition local earnings polarisation, spatial inequality, local earnings polarisation |
| Date: | 2024–01–25 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04678689 |
| By: | Marco Moreno (Central Bank of Ireland and Department of Economics, Trinity College Dublin); Simone Cima (Central Bank of Ireland and Department of Economics, Trinity College Dublin) |
| Abstract: | We use new data on the distribution of wealth in the euro area and employ panel local projections to estimate the different impact of ECB monetary policy shocks on households across the wealth distribution. We look at how policy affects the composition of their balance sheets, their investment decisions, and overall wealth inequality. We find that in response to a contractionary shock, poorer households display a substantial decline in their assets and a reduction in their debt. Conversely, the balance sheet of the very wealthiest shows the opposite evolution, ultimately leading to an increase in overall wealth inequality. Evidence also suggests that the investment behaviour of poorer and wealthier households differs in response to the shock. Our results further indicate that contractionary shocks lead to a shift in balance sheet composition towards housing assets across the whole wealth distribution, at the expense of financial assets. |
| Keywords: | Wealth Inequality; Monetary Policy; Distributional Wealth Accounts; Local Projections |
| JEL: | D31 E44 E52 |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:tcd:tcduee:tep0524 |
| By: | Julia M. Puaschunder (Columbia University, USA) |
| Abstract: | The age of digitalization has led to a rising big data insights trend. Our constant use of digital tools to master our world and our all communication via modern technologies has increased data transfer to be stored and analyzed. As never before, we are now able to derive inferences from big data. The most profitable corporations in the world are currently big data analyzing entities. In an effort to redistribute some of the gains of big data inferences to those who create the information and share their information output on a constant basis, several solutions have been proposed. Granting property rights to information retrieved online is one of the most promising solutions to cope with the fact that corporate capital is gained from our all information sharing online on a constant basis. When considering the establishment of private property rights of one’s own data, the advantage lies in the controllability of information sharing and the monetization of information shared online. At the same time, inequality may be imbued in the idea to ‘sell’ private property data to big data analyzing entities. First, private property rights in data created online could lead to a divide between those who create more interesting and meaningful information by actively using the internet rather than passively consuming it. And people may differ in the degree of useful connections and meaningful conversations with them. Divides between US internet users versus European ones, which already now are skewed towards the US being more active internet users in comparison to Europeans being more passive ones, will rise. The education and income gap may also exacerbate if those with more skilled mindsets or those who can afford more sophisticated technology will be able to produce qualitatively and quantitatively richer data sources. Second, enabling to sell big data would incentivize a productive, active and meaningful use of the internet, which would set positive incentives to develop human capital in general. At the same time, however, there is the problem of abuse in markets. The reason why certain goods are not traded in markets is the fear over abuse and exploitation of minors or specially gifted. Like the restrictions of being able to sell one’s organs in markets as for the fear that people may then start harvesting and exploiting dependents with limited mental capacity; similar restrictions may apply to the sales of internet data. Parents or custodians should not be incentivized to capitalize on their dependents’ data. Third, data brokerage may become a lucrative business if one can sell data online. However, data brokerage platforms may favor certain digitalization hubs in the world which have the legal capacity and technological sophistication to implement high-tech market capitalization from data efficiently and effectively. This logistic peculiarity may hold risks of unjust enrichment of some advanced nations over other less digitalized areas of the world, which may drive the existing economic power divide in the international arena even further in the future. Potential remedies of alternative remedies are to tax big data gains and redistribute some of the gains to those equally whose data serves as building block for big data insights. |
| Keywords: | big data, data storage, digitalization, Digital Markets Act, inequality, internet, knowledge, law, economics, privacy, private property rights, redistribution, sustainability, taxation, wealth transfer |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:smo:raiswp:0415 |
| By: | Aleksandra Jandric (Institute of Economic Studies, Charles University, Prague, Czech Republic & Faculty of Economics, University of Banja Luka); Adam Gersl (Institute of Economic Studies, Charles University, Prague, Czech Republic) |
| Abstract: | This paper examines the determinants of private equity activity across Europe. We analyze a total of 43 explanatory variables, categorized into six groups: Economy; Finance and capital markets; Quality of institutions; Life quality; Economic freedom and Globalization. We assess their impact on three target variables representing overall private equity activity: Investments, Divestments and Fundraising. The study covers 26 European countries over the period from 2007 to 2022. First, we use Bayesian Model Averaging (BMA) to identify which variables are essential for further analysis. We then conduct a multicollinearity test and remove variables highly correlated with those deemed significant by BMA. The final step involves panel data analysis to identify the key variables that countries should prioritize in order to enhance their private equity activity and make the necessary policy adjustments to improve their attractiveness in the private equity sector. Our findings highlight the significance of certain variables that have not been previously analyzed, alongside some traditionally acknowledged factors. Notably, trade openness, bank credit to the private sector, public spending on education, inflation and labor force emerge as significant determinants across Investments, Divestments, and Fundraising. |
| Keywords: | Private equity, Venture capital, Fundraising, Investments, Divestments, Bayesian Model Averaging, Panel data analysis |
| JEL: | C58 E44 G11 G24 G28 M13 O21 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:fau:wpaper:wp2024_30 |
| By: | Zimmermann, Klaus; Jochem, Dominik |
| Abstract: | Natürliche Störungsereignisse wie Feuer, Trockenheit, Insektenkalamitäten und Sturmereignisse sind heute zu einem zentralen Thema für Deutschlands Wälder und Forstbetriebe geworden. Ökonomische Schäden durch Mindererlöse nach natürlichen Störungsereignissen mit hohem Schadholzaufkommen nehmen beträchtliche Ausmaße an. Um den Absatz der Schadhölzer zeitlich von schweren natürlichen Störungsereignissen zu entkoppeln, lagern Forstbetriebe große Schadholzmengen teils über mehrjährige Zeiträume ein. Das zentrale Ziel der vorliegenden Arbeit besteht in einem Verfahren zur Abschätzung der forstbetrieblichen Lagerbestände nach schweren natürlichen Störungsereignissen auf nationaler Ebene. Die vorliegende Arbeit basiert zu wesentlichen Teilen auf den Ergebnissen von Zimmermann et al. (2018) und Zimmermann et al. (2021). Die empirischen Betriebsdaten des forstlichen Testbetriebsnetzes des Bundes (TBN-Forst) werden im Zusammenhang mit den natürlichen Störungsereignissen Lothar (1999) und Kyrill (2007) in mehreren Schritten zu einem überbetrieblichen Lagerbestandsmodell überführt. Zentrale Eingangsgrößen der Studien von Zimmermann et al. (2018, 2021) sind die störungsbedingten Mehreinschläge (DAMcomp), die Zuflüsse ins Schadholzlager (TSAcomp) sowie die Abflüsse aus dem Schadholzlager (TSOcomp) auf forstbetrieblicher Ebene in einem mehrjährigen Betrachtungszeitraum. Die einzelnen Schritte der vorliegenden Studie zur Überführung der betrieblichen Informationen in eine Schätzung der Lagerhaltung auf nationaler Ebene sind wie folgt gegliedert: In Schritt 1 wird ein nationaler störungsbedingter Mehreinschlag (DAMnat) hergeleitet. Schritt 2 zeigt darauf aufbauend die Herleitung der nationalen Zuflüsse zum Schadholzlager (TSAnat). Schritt 3 zeigt, wie aus Zufluss und zeitlichem Verlauf der Abflüsse aus dem Schadholzlager (TSOnat) ein nationales Lagerbestandsmodell parametrisiert werden kann. Das Vorgehen zur Skalierung des nationalen Lagerbestandsmodells wird in Schritt 4 vorgestellt. Das entwickelte Lagerbestandsmodell wird auf Grundlage der nationalen Zuflüsse ins Schadholzlager, welche durch die nationalen störungsbedingten Mehreinschläge hergeleitet werden, skaliert. Auf Grundlage des Modells wird die Lagerhaltung für die natürlichen Störungsereignisse Lothar, Kyrill sowie den Schadkomplex Sturm/Dürre/Borkenkäfer abgeschätzt.... |
| Abstract: | Natural disturbances such as fire, drought, insect calamities and storm events have now become a central issue for Germany's forests and forestry companies. Economic damage due to reduced revenues after natural disturbances with high levels of damaged timber is taking on considerable proportions. In order to decouple the sale of damaged timber from severe natural disturbance events, forestry companies store large quantities of damaged wood, sometimes over periods of several years. The central aim of this work is to develop a method for estimating forest companies' timber storage after severe natural disturbance events at the national level. This work is based to a large extent on the results of Zimmermann et al. (2018) and Zimmermann et al. (2021). For this purpose, the empirical operational data of the federal forestry test network (TBN-Forst) in connection with the natural disturbance events Lothar (1999) and Kyrill (2007) are transferred in several steps to a national timber storage model. The key input variables are the disturbance-related additional felling quantities (DAMcomp), the inflows into damaged timber storage (TSAcomp) and the outflows from damaged timber storage (TSOcomp) at the company level over a multi-year observation period. The individual steps of this study for transferring the operational information to estimate timber storage at the national level are structured as follows: In step 1, national disturbance-related additional felling quantities (DAMnat) are derived. Step 2 shows the inflows into damaged timber storage (TSAnat). Step 3 shows how a national timber storage model can be parameterized from the inflow and temporal course of the outflows from the damaged timber storage (TSOnat). The procedure for scaling the national tiber storage model is presented in step 4. The timber storage model is scaled on the basis of the national inflows into the damaged timber storage, which are derived from the national disturbance-related additional felling quantities. National timber storage is estimated for the natural disturbance events Lothar, Kyrill and the damage complex storm/drought/bark beetle... |
| Keywords: | Klimawandel, natürliche Störungsereignisse, Schadholzlager, Berichterstattung, climate change, natural disturbances, damaged timber storage, reporting |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:jhtiwp:302169 |
| By: | Bergh, Andreas (Department of Economics, Lund University, and); Bjørnskov, Christian (Department of Economics and Business, Aarhus University, and); Kouba, Luděk (Department of Economics,) |
| Abstract: | The discussion of the growth consequences of socialism has fulminated for a century, sparked off by the Calculation Debate in the 1920s and 30s, and has concerned the performance of the Soviet Union in the 1950s and the mixed development in the 1990s after communism collapsed in Central and Eastern Europe. We aim to inform these debates by providing an empirical assessment of how socialist economies performed across the second half of the 20th century. Using both neighbour comparisons as well as more formal empirical analysis of developing countries that turned socialist after independence, we derive a set of estimates of the degree to which the introduction of a planned socialist economy affects long-run growth and development. All analyses point towards an annual growth decline of approximately two percentage points during the first decade after implementing socialism. |
| Keywords: | Economic growth; Socialism |
| JEL: | O11 O43 P20 |
| Date: | 2024–08–27 |
| URL: | https://d.repec.org/n?u=RePEc:hhs:iuiwop:1499 |
| By: | Ibirénoyé Honoré Romaric Sodjahin (SMART - Structures et Marché Agricoles, Ressources et Territoires - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Rennes Angers - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement); Fabienne Femenia (SMART - Structures et Marché Agricoles, Ressources et Territoires - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Rennes Angers - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement); Obafémi, Philippe Koutchadé (SMART - Structures et Marché Agricoles, Ressources et Territoires - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Rennes Angers - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement); Alain Carpentier (SMART - Structures et Marché Agricoles, Ressources et Territoires - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Rennes Angers - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement) |
| Abstract: | Despite many benefits provided by diversified cropping systems, there is a dearth of empirical evidence on the economic relevance of their effects, mainly due to lack of information on the dynamics of farmers' crop acreages. Our article contributes to fill this gap and, thereby, to shed light on a pair of apparently contradictory facts. European farmers tend to stick to specialized crop acreages despite agronomic experiments tending to show that crop diversification could reduce chemical input uses while maintaining or even enhancing arable crop yield levels We provide estimates of the effects of previous crops and crop acreage diversity on yield and chemical input use levels based on a sample of 769 arable crop producers covering the Marne département in France from 2008 to 2014. Our farm level dataset combines cost accounting data, information on crop sequences as well as detailed soil and weather data. Our estimation approach relies on yield functions and input use models defined as systems of simultaneous equations. These models feature farm specific random parameters for accounting for unobserved heterogeneity across farms and farmers as well as for accommodating input use endogeneity in the considered empirical crop yield functions. We estimate pre crop and crop acreage diversity effects for four major crops in the area. Pre crops effects on yields are estimated relatively accurately and are generally consistent with the rankings provided by crop production experts. Estimated pre crop effects on input uses are small and insignificant from a statistical viewpoint despite our large sample, suggesting that pre crops don't impact much chemical input requirements or/and that farmers tend to downplay these effects when deciding their chemical input use levels. Our results also show that crop acreage diversity positively impacts yield levels and tend to induce reductions in pesticide uses, herbicide uses in particular. Overall, our results demonstrate statistically significant though economically limited effects of pre crops and crop acreage diversity on crop gross margins. They also suggest that policy measures aimed to foster crop diversification are unlikely to significantly reduce chemical input uses on major crops if they are not supplemented by measures specifically aimed to reduce the uses of these inputs. |
| Keywords: | crop rotation effects, crop diversification, endogeneity, random parameter, SAEM algorithm |
| Date: | 2023–07–23 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04667088 |
| By: | Luca Dedola; Erwan Gautier; Chiara Osbat; Sergio Santoro |
| Abstract: | This chapter reviews the empirical evidence on price stickiness in the euro area. We provide an overview of the different sources of granular consumer and producer price data now available in the euro area. We document new stylized facts on price adjustment in the euro area over the last 20 years. We first present results on the frequency and size of price adjustment in the cross-section dimension. Then we describe some results on the evolution of price stickiness over time. We also derive some implications for the micro-foundations of macro models, discussing the consistency of available evidence with predictions of state- and time-dependent models. |
| Keywords: | Nominal Rigidities, Inflation, Micro Data, Euro Area |
| JEL: | D40 E31 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:bfr:banfra:958 |
| By: | Henning Schaak (BOKU - Universität für Bodenkultur Wien = University of Natural Resources and Life Sciences [Vienne, Autriche]); Jens Rommel (SLU - Swedish University of Agricultural Sciences = Sveriges lantbruksuniversitet); Julian Sagebiel (iDiv - German Centre for Integrative Biodiversity Research); Jesus Barreiro-Hurlé (JRC - European Commission - Joint Research Centre [Seville]); Douadia Bougherara (CEE-M - Centre d'Economie de l'Environnement - Montpellier - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - UM - Université de Montpellier); Luigi Cembalo (University of Naples Federico II = Università degli studi di Napoli Federico II); Marija Cerjak (UNIZG - Faculty of Agriculture [Zagreb] - University of Zagreb); Tajana Čop (University of Zagreb); Mikołaj Czajkowski (UW - University of Warsaw); María Espinosa-Goded (Universidad de Sevilla = University of Seville); Julia Höhler (WUR - Wageningen University and Research [Wageningen]); Carl-Johan Lagerkvist (SLU - Swedish University of Agricultural Sciences = Sveriges lantbruksuniversitet); Macario Rodriguez-Entrena (Universidad de Córdoba = University of Córdoba [Córdoba]); Annika Tensi (WUR - Wageningen University and Research [Wageningen]); Sophie Thoyer (CEE-M - Centre d'Economie de l'Environnement - Montpellier - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - UM - Université de Montpellier); Marina Tomić Maksan (University of Zagreb); Riccardo Vecchio (University of Naples Federico II = Università degli studi di Napoli Federico II); Katarzyna Zagórska (UW - University of Warsaw) |
| Abstract: | Risk is a pervasive factor in agriculture and a subject of great interest to agricultural economists. However, there is a lack of comprehensive understanding of the knowledge held by farm advisors, students, and economists with regards to farmers' risk preferences. Misconceptions about farmers' willingness to take risks could lead to misguided advice. This study builds upon a recent multinational endeavor that employed a multiple price list to assess risk preferences among European farmers. We expand this research by gathering predictions for farmers' risk preferences from 561 farm advisors, students, and economists. Our objectives are threefold: firstly, we explore variations as to how accurately participants can predict risk preferences in different specializations; secondly, we compare the predictive accuracy of different groups of forecasters; and thirdly, we assess whether modifying incentive mechanisms can improve the accuracy of predictions. Whereas our findings reveal substantial variation in individual predictions, the averages closely align with the observed responses of farmers. Notably, the most accurate predictions were provided by a sample of experimental economics researchers. Furthermore, predictions for different production systems exhibit minimal disparities. Introducing incentive schemes, such as a tournament structure, where the best prediction receives a reward, or a high-accuracy system, where randomly selected participants are compensated for the accuracy of their predictions, does not significantly impact accuracy. Further research and exploration are needed to identify the most reliable sources of advice for farmers. |
| Keywords: | Risk attitudes, Expert predictions, Expert forecasts, Multiple prices lists, Meta-science |
| Date: | 2024–08–26 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04677299 |
| By: | Salomé Kahindo (IESEG School of Management, Univ. Lille, CNRS, UMR 9221 – LEM, F-59000 Lille, France.) |
| Abstract: | Balancing agricultural production with environmental preservation is a major challenge in the agricultural sector. We address this issue by evaluating two land management strategies: land sharing and land sparing. Using an efficiency analysis based on an activity model, we assess the potential for implementing these strategies across different farm categories, defined by land quality (yield index) and subsidy levels. Applied to farm data from the Meuse department (2006–2016), our results show that agricultural production can align with environmental preservation by either sparing 16% of farmland for the environment or reducing the use intensity of operational inputs by 13% across all farmlands. For farms with low land quality, land sparing would be more appropriate, whereas high land quality farms would benefit more from land sharing. Both land sharing and land sparing would better suit large farms with fewer subsidies; meaning that as farm size and subsidy levels increase, their contribution to these strategies diminishes. Our findings emphasize the need to consider farm characteristics in implementing agricultural land management strategies for environmental preservation. |
| Keywords: | agricultural production, environmental preservation, land sharing, land sparing, activity model, Meuse department. |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:ies:wpaper:e202416 |
| By: | Kornher, Lukas; Balezentis, Tomas; Santeramo, Fabio Gaetano |
| Abstract: | Since the Covid-19 pandemic and the Russia-Ukraine War, global food markets have been in turmoil. Agricultural input and energy prices doubled between 2020 and 2022, with immediate consequences on food accessibility. We examine the drivers of the EU food inflation patterns, and how trade integration shapes these dynamics. We find that food price inflation has been mainly driven by surges in agricultural production costs and, to a lesser extent, by global food price increases. Trade openness has not exacerbated the inflating dynamics during this period. |
| Keywords: | Europe, food price inflation, Russia–Ukraine War, trade policy uncertainty, geopolitical risk |
| JEL: | E31 Q11 Q18 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:121673 |
| By: | Marco Bassetto; Luca Benzoni; Jason Hall |
| Abstract: | The goal of this paper is twofold. First, we wish to better explain the relationship between Sargent and Wallace’s (1981) unpleasant monetarist arithmetic, the closely connected fiscal theory of the price level (FTPL), and the monetarist view of inflation. Second, we discuss how the recent inflationary episode has contributed to redistributing real resources from holders of government debt to the public purse. In particular, financial prices before the onset of the Covid pandemic suggest that investors viewed an inflationary shock such as the one we experienced as extremely unlikely, so the magnitude of this redistribution caught them by surprise. |
| Keywords: | Macroeconomics; Monetary Economics; Financial Economics |
| JEL: | E31 E51 E62 G10 |
| Date: | 2024–07–05 |
| URL: | https://d.repec.org/n?u=RePEc:fip:fedhwp:98723 |
| By: | Bjarni G. Einarsson |
| Abstract: | This paper presents a framework for testing the optimality of monetary policy decisions made by a central bank in a monetary union. Applying the framework to test the European Central Bank’s monetary policy decisions we find several instances of optimization failures in its use of the Forward Guidance and Quantitative Easing instruments. We cannot reject optimality in its use of the Target Rate instrument. We find signs of heterogeneity in the optimal prescriptions for the individual member countries with respect to the union level prescription. Additionally, we find many instances of optimization failure at the country level for all instruments. Assuming each country has a country specific version of the union loss function we provide a measure of the cost of abandoning independent monetary policy by joining a union. The results indicate that the price of Euro membership is higher for the peripheral economies. |
| JEL: | C32 E31 E32 E52 E58 E61 E65 |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:ice:wpaper:wp96 |
| By: | Tomohiro Hirano (Royal Holloway, University of London; Centre for Macroeconomics (CFM)); Alexis Akira Toda (University of California San Diego) |
| Abstract: | We analyze equilibrium housing prices in an overlapping generations model with perfect housing and rental markets. The economy exhibits a two-stage phase transition: as the income of home buyers rises, the equilibrium regime changes from fundamental to bubble possibility, where fundamental and bubbly equilibria can coexist. With even higher incomes, fundamental equilibria disappear and housing bubbles become a necessity. Even with low current incomes, housing bubbles may emerge if home buyers have access to credit or have high future income expectations. Contrary to widely-held beliefs, fundamental equilibria in the possibility regime are inefficient despite housing being a productive non-reproducible asset. |
| Keywords: | bubble, expectations, housing, phase transition, welfare |
| JEL: | D53 G12 R21 |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:cfm:wpaper:2427 |