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on Microeconomic European Issues |
| By: | Enriques, Luca; Nigro, Casimiro A.; Tröger, Tobias |
| Abstract: | A vast literature has examined the contractual technology that venture capital (VC) funds and entrepreneurs deploy in the U.S. to define an agency cost-minimising structure of their relationship, leading many to conclude that U.S. VC contracts are the best real-world solution to the challenges bedeviling the financing of high-tech innovative startups and a model for VC transactional practice worldwide. Yet, whether VC funds and entrepreneurs can replicate the allocation of cash-flow and control rights resulting from U.S. VC contracts in non-U.S. jurisdictions has long been open to discussion. Research by financial economists and legal scholars have reached diverging conclusions. The existing literature exhibits three limitations, though. First, it has generally investigated at most only how a subset of the individual components of U.S. VC contracts fare under non-U.S. corporate laws. Second, it has typically considered the law on the books as opposed to the law in action. Third, it has relied on a loose definition of what qualifies as an effective substitute. This article examines how U.S. VC contracts fare under the corporate law regimes in force in two important European jurisdictions: Germany and Italy. It does so by taking a new approach to the matter. First, it considers the entire set of arrangements included in U.S. VC contracts rather than a sample. Second, it assesses the legality of those arrangements in the light of the applicable corporate law in action rather than the law on the books. Third, in assessing arrangements that deviate from U.S. private ordering solutions due to restrictive corporate law, it focuses on contract functionality rather than contract design. The results of the inquiry are straightforward: German and Italian corporate laws literally crash contracting parties' ambition to transplant U.S. VC contracts into their own jurisdictions and only allow for alternative arrangements that, if available at all, are costlier and/or less functional. |
| Keywords: | Comparative Corporate Law, Comparative Corporate Governance, Entrepreneurship, Financial Contracting, Private ordering, Start-ups, Venture Capital |
| JEL: | G38 K22 L26 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:safewp:324639 |
| By: | Marco Nieddu; Roberto Nisticò; Lorenzo Pandolfi |
| Abstract: | This paper examines how publication-based tenure-track systems affect the careers of Ph.D. graduates in Economics. We leverage a 2010 reform in Italy that replaced open-ended assistant professor (AP) positions with fixed-term contracts and introduced publication minimum requirements for career advancement. Using survey and administrative data, along with a Difference-in-Differences Event-Study approach comparing Economics to less academicallyoriented fields, we find that the reform significantly reduced the likelihood of Economics Ph.D. graduates entering academia in Italy, while increasing transitions to academic careers abroad or to public and private sector jobs. Talented graduates were disproportionately affected, revealing negative selection into Italian academia following the removal of permanent AP positions. Despite these trends, tenure-track hires tend to publish more in high-ranking journals, suggesting that the reform’s incentive effects may partly mitigate its negative selection effects. |
| Keywords: | academic careers, fertility, publications, tenure |
| JEL: | I23 J13 J24 J71 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_12090 |
| By: | Schreiner, Lena; Beyer, Andreas |
| Abstract: | How does environmental, social and governance regulation of banks affect capital provision to the sustainability transition? As ambitious sustainability targets face funding challenges, the financial sector is tasked with channeling more private capital into sustainable investments. However, scaling sustainable technologies often requires investment in non-ESG-compliant assets. The mobility transition to electric vehicles, for example, demands increased supply of battery raw materials like Lithium, Cobalt, Manganese, and Nickel. This paper analyzes how ESG regulation impacts capital provision to mining companies supplying these materials. Concretely, we assess effects of the European Union’s Sustainable Finance Disclosure Regulation and of the Taxonomy on banks’ public holdings and cost of capital, using two large, novel data sets. We find that the introduction of the ESG regulations has a dampening effect on banks’ holdings in battery raw material mining companies, in particular those with poor ESG performance. The companies’ cost of capital and lending behavior remain unchanged. JEL Classification: G21, G28, Q50 |
| Keywords: | banking, ESG regulation, lending, public holdings, sustainable finance |
| Date: | 2025–08 |
| URL: | https://d.repec.org/n?u=RePEc:ecb:ecbwps:20253089 |
| By: | Argan, Damiano (LUISS Guido Carli University); Gary-Bobo, Robert J. (University of Paris 1 Panthéon-Sorbonne); Goussé, Marion (CREST) |
| Abstract: | We study how the returns to higher education evolved in France during a period of educational expansion. We study possible changes in the mix of unobservable characteristics of the graduate population. Using a finite mixture model with latent types, we estimate type-specific log-wage, experience accumulation, and education-choice equations. We find that expected real wages declined for higher-education degrees, and that this result is not driven by adverse selection. Returns to education and experience decreased for certain unobserved types but increased for others. The composition of types among Master’s graduates suggests improved student selection over time, despite rising graduate numbers. |
| Keywords: | unobserved heterogeneity, selection, human capital, returns to experience, returns to education, wages, finite-mixture models, latent types |
| JEL: | C33 I21 I24 I26 J22 J24 J31 |
| Date: | 2025–07 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp18053 |
| By: | Balleer, Almut; Hirsch, Michael; Nöller, Marvin |
| Abstract: | We present evidence that air pollution negatively affects current well-being. To do so, we create a new dataset, matching particulate matter concentration at the exact day and location with individual-level survey responses about current life satisfaction. The panel structure of our data allows us to overcome several identification challenges in the literature. Additionally, we show how aggregation of air pollution across time and space mis-measures the relevant exposure. Our results further suggest that air pollution affects current well-being mostly through negative emotions like sadness or worry. We estimate the willingness to pay for clean air that refers to the direct, immediate effects of air pollution and can be mapped well to economic models. |
| Abstract: | Luftverschmutzung beeinflusst das aktuelle Wohlbefinden negativ. Wir zeigen dies anhand eines neuen Datensatzes, in dem wir die Feinstaubkonzentration an einem bestimmten Tag und Ort mit individuellen Umfrageantworten zur aktuellen Lebenszufriedenheit abgleichen. Dank der Panelstruktur unserer Daten können wir hierbei mehrere Identifikationsprobleme aus der Literatur überwinden. Wir zeigen zudem, wie die Aggregation von Luftverschmutzung über Zeit und Raum zu einer falschen Messung der relevanten Belastung führt. Unsere Ergebnisse deuten darauf hin, dass Luftverschmutzung das aktuelle Wohlbefinden vor allem durch negative Emotionen wie Traurigkeit oder Sorgen beeinflusst. Darüber hinaus schätzen wir die kurzfristige Zahlungsbereitschaft für saubere Luft, die gut in ökonomische Modelle überführt werden kann. |
| Keywords: | Subjective well-being, air pollution, willingness to pay, compensating variation |
| JEL: | H41 I31 Q53 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:rwirep:324660 |
| By: | Rowland, Neil (Queen's University Belfast); Jahanshahi, Babak (Queen's University Belfast); McVicar, Duncan (Queen's University Belfast); Miller, Corina (Queen's University Belfast) |
| Abstract: | Exclusion is a disciplinary practice used by headteachers which removes misbehaving pupils from the classroom or from the school, either temporarily or permanently. Its growing use has led to increased concern about potential negative effects on excluded pupils, including on their educational achievement. This paper estimates the effect of being excluded on subject test scores and teacher assessment outcomes using detailed administrative data on an entire cohort of pupils in the English state school system. To mitigate selection bias, we use a novel empirical approach for this literature which compares excluded pupils with pupils who experienced exclusion after outcomes were measured but not before. We find that excluded pupils perform worse in subsequent tests and teacher assessments, with 0.03-0.07 standard deviation lower standardised test scores and 2.5-3.6 percentage point higher probability of not reaching the expected level in teacher assessments. We assess the extent to which these estimated associations might reflect a negative causal impact of exclusion. |
| Keywords: | administrative data, educational achievement, school exclusion |
| JEL: | I24 I28 |
| Date: | 2025–08 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp18080 |
| By: | Tobler, Lina; Fervers, Lukas; Reiff, Annika |
| Abstract: | In response to increasing difficulties faced by firms in filling training positions, Germany intro-duced a minimum apprenticeship wage (MAW) of 515€ in 2020. Theoretically, the MAW’s effect is ambiguous: higher costs may reduce firms’ incentives to offer training positions, while increased wages could make apprenticeships more attractive, potentially increasing applicant numbers. It remains unclear which effect predominates in terms of actual take-ups. This paper provides first empirical analyses of the MAW’s impact on offered apprenticeship positions and actual take-ups. Using a difference-in-differences design with firm-level panel data, we find negative effects on both offered and filled trainings. This finding is robust to sensitivity analyses, including placebo tests for diverging trends before treatment, effects on other employee groups, inclusion of controls covering COVID-19 affectedness, post-treatment selection and attrition. The results suggest that the negative impact on offers dominated possible gains and did not lead to more entrants into the training system. |
| Date: | 2025–08–13 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:hjb74_v1 |
| By: | Machin, Stephen; McNally, Sandra; Terrier, Camille; Ventura, Guglielmo |
| Abstract: | Vocational education delivery is widely debated, with ongoing efforts to improve its effectiveness. In 2010, England introduced University Technical Colleges (UTCs), hybrid institutions combining general and vocational education. Using an instrumental variable approach, this paper examines the impact of UTC attendance on academic and vocational achievement, university enrolment, and labour market outcomes. For students entering UTCs at the unconventional age 14, enrolment significantly lowers academic achievement at age 16. However, for those entering at the conventional age 16, UTCs enhance vocational achievement, boost enrolment in STEM degrees, and improve labour market outcomes. The findings highlight the risks of early specialisation and the benefits of aligning education with students' interests at a more suitable stage. |
| Keywords: | technical education; school value-added; University Technical College |
| JEL: | I20 I21 I28 |
| Date: | 2025–07–08 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:128193 |
| By: | Moral-Arce, Ignacio; Martín-Román, Javier; Martín-Román, Ángel L. |
| Abstract: | This paper examines the effect of the Cessation of Activity Benefit (CAB)—a government policy aimed at self-employed workers—on non-employment spell durations in Spain. Using data from the Spanish Continuous Sample of Working Lives (MCVL), we apply flexible semiparametric survival models to address limitations of standard duration analysis. Our results show that self-employed individuals who receive the CAB experience non-employment spells approximately 4 to 6 months longer than their non-recipient counterparts. The extended duration appears largely driven by a moral hazard effect, as many beneficiaries remain out of work until the maximum benefit period (12 months) expires. These findings suggest that while the CAB provides valuable income support, it may inadvertently discourage timely re-entry into the labour market. |
| Keywords: | Self-employment, Evaluation, Survival Analysis, Opportunistic Behaviour. |
| JEL: | D04 J08 J64 J65 K31 |
| Date: | 2025–07–18 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:125373 |
| By: | Beckmann, Michael (University of Basel); Grunau, Philipp (Institut für Arbeitsmarkt- und Berufsforschung); Kretschmer, Tobias (LMU Munich); Shvartsman, Elena (WHU – Otto Beisheim School of Management) |
| Abstract: | An employee’s affective commitment to the firm is a key driver of individual and, ultimately, firm performance. We study the role of high involvement management (HIM) practices in promoting affective commitment and ask if different components of HIM, specifically power, information, rewards, and knowledge, form a coherent management system and/or are complementary across components. Coherence implies that the components are not in conflict with or substitute for each other, i.e., adding them individually generates additional positive returns, while complementarity implies that the returns from adding one component increase with the number of other components already in place. We use detailed and unique data from a large sample of German firms and their employees and find that while HIM is a coherent management system, there are no strong complementarities across practices. |
| Keywords: | high involvement management, affective commitment, coherent management system, complementarity |
| JEL: | D2 M1 M5 L2 |
| Date: | 2025–07 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp18047 |
| By: | Frondel, Manuel; Kaestner, Kathrin; Krieg, Marielena; Vance, Colin |
| Abstract: | Numerous measures have been taken in recent years to achieve climate protection targets in Germany's building sector. With the newly established Ariadne German Heating and Housing Panel (GHHP), the prerequisite for a well-founded evaluation of the effectiveness, distribution effects, and acceptance of climate policy measures in the heating sector has been created for the first time. Funded by the Federal Ministry of Education and Research (BMBF) as part of the Kopernikus project Ariadne, the GHHP is a series of annual surveys on the heating transition. It comprises around 15, 000 participating households in Germany, 65% of which are owner-occupied households with the remaining 35% renters. In addition to eliciting detailed information on the building stock, existing heating systems, heating costs and the socio-economic characteristics of the households, the survey examines energy modernization measures that have already been carried out or are planned. The survey also records households' perception and acceptance of policy instruments in the building sector that are being discussed and have already been introduced. The first survey took place in 2021, with subsequent surveys to be continued annually until 2026. |
| Abstract: | In den vergangenen Jahren wurden zahlreiche Maßnahmen ergriffen, um die Klimaschutzziele im Gebäudesektor in Deutschland zu erreichen. Mit dem neu eingerichteten Ariadne Wärme- und Wohnen-Panel wurde erstmals die Voraussetzung für eine fundierte Evaluierung der Wirksamkeit, der Verteilungseffekte und der Akzeptanz von klimapolitischen Maßnahmen im Wärmesektor geschaffen. Das vom Bundesministerium für Bildung und Forschung (BMBF) im Rahmen des Kopernikus-Projekts Ariadne geförderte Wärme- und Wohnen-Panel ist eine Reihe von jährlichen Befragungen zur Wärmewende. Sie umfasst rund 15.000 teilnehmende Haushalte in Deutschland, von denen 65% Eigentümerhaushalte und die restlichen 35% Mieter sind. Neben detaillierten Informationen zum Gebäudebestand, den vorhandenen Heizungsanlagen, den Heizkosten und den sozioökonomischen Merkmalen der Haushalte werden auch bereits durchgeführte oder geplante energetische Modernisierungsmaßnahmen untersucht. Außerdem wird die Wahrnehmung und Akzeptanz von diskutierten und bereits eingeführten politischen Instrumenten im Gebäudesektor durch die Haushalte erfasst. Die erste Erhebung fand 2021 statt, weitere Erhebungen werden jährlich bis 2026 durchgeführt. |
| Keywords: | Household panel, heating transition, rate of modernization, acceptance |
| JEL: | Q3 Q4 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:rwirep:324659 |
| By: | Osswald do Amaral, Francisco; Zetzmann, Steffen |
| Abstract: | We examine how rising energy costs affect rental housing markets and inequality. Using listing data for the 30 largest German cities from 2015-2024, we find that higher energy prices are passed through to net rents in high-rent segments, where inefficient properties see significant rent reductions, but not in lower-priced segments. This asymmetry reflects tighter markets and lower demand elasticity in the affordable segment. Consequently, low-income households face much larger increases in total housing costs. Our results show how segmented housing markets can amplify inequality when energy prices rise, highlighting important distributional implications for climate policy. |
| Keywords: | Housing Markets, Energy Prices, Climate Change, Inequality |
| JEL: | R31 Q41 Q54 D31 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:ifwkwp:324656 |
| By: | Stefan Buechele (University of Kassel, INCHER and Institute of Economics); Guido Buenstorf (University of Kassel, INCHER and Institute of Economics); Matthias Huegel (University of Kassel, INCHER and Institute of Economics); Johannes Koenig (University of Kassel, INCHER and Institute of Economics; IAB Institute for Employment Research, Saarbruecken); Maria Theissen (University of Kassel, INCHER and Institute of Economics) |
| Abstract: | Previous research has shown that a large fraction of tenured university faculty in the U.S. and other countries were trained at a small number of highly prestigious universities. The question remains whether this concentration is due to competitive advantages held by candidates from these universities, or whether it merely reflects the larger output of early-career researchers aspiring to faculty positions by these universities. To address this question, we analyze data covering the full population of doctoral graduates in Germany since the 1960s. Similar to studies of the U.S. system of higher education, we observe a strong concentration of professors trained at only a small number of universities. However, we find no evidence indicating that the prestige of the doctoral degree-granting university systematically affects individuals’ odds of being appointed to professorships. Despite increasing stratification tendencies, our results do not indicate that the importance of the degree-granting university for academic careers has increased. While doctoral graduates from top-tier universities are more likely to secure faculty positions at similar institutions, this is mostly due to returns to their own alma mater after initial appointments elsewhere. |
| Keywords: | Faculty appointment, university prestige, stratification, academic labor market, professorship, Germany, Habilitation |
| JEL: | I24 J24 J40 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:mar:magkse:202516 |
| By: | Pénélope Hardy (DRES - Droit, religion, entreprise et société - UNISTRA - Université de Strasbourg - L'europe en mutation : histoire, droit, économie et identités culturelles - UNISTRA - Université de Strasbourg - CNRS - Centre National de la Recherche Scientifique - CNRS - Centre National de la Recherche Scientifique); Marco Rocca (DRES - Droit, religion, entreprise et société - UNISTRA - Université de Strasbourg - L'europe en mutation : histoire, droit, économie et identités culturelles - UNISTRA - Université de Strasbourg - CNRS - Centre National de la Recherche Scientifique - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | In this chapter, we examine short-term labour mobility within the European Union (EU) from a legal perspective, focusing on the labour and social rights available to intra-EU migrants. We distinguish between "temporary" and "short-term" migration and highlight the absence of a formal legal category for the latter, which complicates both statistical representation and data collection. We analyse three key legal regimes—the free movement of workers, the posting of workers, and the EU's social security coordination framework—each containing distinct duration thresholds, from eight days to five years, that influence the granting or restriction of rights. While these thresholds create implicit gradations of mobility, we observe a consistent link between shorter durations and reduced rights. We further show how the interaction between legal provisions and statistical definitions generates conceptual and practical challenges, especially in non-standard employment contexts. Finally, we caution that introducing a formal short-term migration category could institutionalise a lower tier of rights for mobile workers. We conclude by stressing the need for legal and policy frameworks that both facilitate mobility and ensure equal labour and social rights regardless of migration duration. |
| Date: | 2025–03 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05206260 |
| By: | Daniel Engler (University of Kassel, Institute of Economics); Gunnar Gutsche (Paderborn University, Faculty of Business Administration and Economics; University of Kassel, Institute of Economics); Andreas Ziegler (University of Kassel, Institute of Economics) |
| Abstract: | Based on a randomized controlled trial, this paper compares individual investment decisions in pre-registered non-incentivized and incentivized choice experiments to examine hypothetical bias. Using data from a representative sample of over 2, 100 individual investors from Germany and France, our econometric analysis reveals that the willingness to pay for sustainable investments is not significantly higher in the non-incentivized setting than in the incentivized setting, which is contrary to predictions from previous studies. The results are robust to various explanations of hypothetical bias and experimental design choices. Individual characteristics tend to have similar estimated effects on the preference for sustainable investments in both experimental settings. The results of our experimental analysis provide insights into the reliability of previous stated choice experiments and guidance for future experiments in (sustainable) finance. Furthermore, our estimation results improve our understanding of individual investment decisions, which is crucial from a policy perspective since individual investors play an important role in financing the transition to a sustainable economy. |
| Keywords: | Sustainable investments, randomized controlled trial, investment choice experiments, hypothetical bias, willingness to pay |
| JEL: | C25 G11 G41 Q56 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:mar:magkse:202515 |
| By: | Krassen Stanchev |
| Abstract: | Since 1989, flat tax (FT) reforms have been attempted in Europe and the EU only by ex-communist countries and Iceland. In the 1990s all ex-communist countries lowered and simplified their income taxes, often starting with corporate taxes. In the late 1990s and early 2000s they also reformed their social security systems. In many respects the tax reforms have never stopped, but with regard to income taxation they are less radical than in the 1990s and at the turn of this century. Even when there were reforms re-establishing progressive taxation, they have almost never returned to complex sets of nominal rates and a steep vertical ladder of progressive thresholds. This report attempts to reconstruct the reasons why EU countries moved to introduce proportional taxation on either corporate or personal income, or both, as well as the reasons behind five of them returning to progressive taxation. These reforms happened in different political and economic contexts. It would be difficult to identify unequivocal causality between flattening taxes and economic performance. However, the report compares the dynamics of economic growth and factors related to competitiveness for periods before and after the reforms were launched. The same effort has been made for indicators of wealth and disposable income. The analysis allows for a discussion of lessons learnt and of the prospects for further reforms. The report concludes that it seems impossible to prove that FT systems have been a key contributor to higher economic growth. However, it does seem that, if the social security contributions remain relatively stable and are financed by other tax revenues, they have a positive impact on fiscal performance and general welfare. |
| Keywords: | tax system, tax reform, proportional taxation, progressive taxation, corporate tax, personal income tax, economic performance, ex-communist countries, EU |
| JEL: | E62 H23 H24 H25 H26 H31 H32 |
| Date: | 2023–12–07 |
| URL: | https://d.repec.org/n?u=RePEc:sec:mbanks:0175 |
| By: | Fanfani, Bernardo (University of Turin) |
| Abstract: | This study documents the evolution of minimum wages bargained in Italian private sector collective contracts over a forty-year period (1983-2023). Minimum wages have grown in real levels over the last three decades, particularly among high-skilled occupations, but this growth has been partially eroded by the 2022-2023 inflation crisis. Nominal minimum wage growth is strongly correlated with past inflation and very weakly correlated with sectoral productivity growth and unemployment dynamics, which is consistent with strong coordination across industries and real wage rigidity. Increasing differences between high- and low-skilled occupation minimum wages can explain around one-third of the overall growth in the inequality of full-time equivalent daily wages that has occurred in Italy during the 1990s. |
| Keywords: | industrial relations, wage rigidity, wage inequality, minimum wage, collective bargaining |
| JEL: | J31 J38 J52 |
| Date: | 2025–07 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp18051 |
| By: | Dabrowski, Piotr (Department of Real Estate and Construction Management, Royal Institute of Technology); Wilhelmsson, Mats (Department of Real Estate and Construction Management, Royal Institute of Technology) |
| Abstract: | Public preferences for classical architecture are well known, yet the economic impact of such styles in new housing developments remains unclear. This study examines whether neo-traditional architectural design influences higher apartment prices in Stockholm, thereby addressing a gap in real estate valuation research. Using 16, 508 housing transactions from 2017 to 2021, we apply hedonic price models, spatial econometrics, and propensity score matching to estimate the price effect of neo-traditional style while controlling for location, housing attributes, and selection bias. Results show that apartments in neo-traditional buildings command a 5–6% price premium, with the effect most substantial in lower-priced segments. These findings suggest that architectural style influences housing value independently of location or other housing features. Our results highlight how aesthetic preferences affect market outcomes and support the use of spatial methods in valuation research. The findings have implications for urban design, architectural policy, and housing market strategies. |
| Keywords: | Neo-traditional architecture; housing price premium; hedonic pricing; spatial econometrics; urban housing market; architectural aesthetics; real estate valuation; cultural heritage; Stockholm housing market; real estate economics |
| JEL: | C21 R21 Z18 |
| Date: | 2025–08–22 |
| URL: | https://d.repec.org/n?u=RePEc:hhs:kthrec:2025_007 |
| By: | FLORINA POPA (INSTITUTE OF NATIONAL ECONOMY, ROMANIAN ACADEMY, BUCHAREST) |
| Abstract: | The efficiency of revenue collection is a process that involves different operations in collection procedures, with the revenue collected being a main source of support for state budget spending. The paper aim was studying the impact of the direct taxes/indirect taxes ratio changes on Gini coefficient (inequality). The main result from the analysis is that the impact of the ratio between the direct taxes and indirect taxes on Gini coefficient (inequality) was pursued from three perspectives: a) increases in the direct taxes/indirect taxes ratio; b) decreases in the direct taxes/indirect taxes ratio; c) other situations regarding the change in the direct taxes/indirect taxes ratio. The paper was accomplished by: studying the scientific literature in the field, selecting, synthesizing and interpreting the ideas retained through the own view of the author; collecting data from the European Commission, DG Taxation and Customs Union, based on Eurostat; Eurostat Gini Coefficient of equivalised disposable income by age, drawing up the table needed in the analysis of economic indicators and processing and analysis of the data collected. The analysis was achieved for Member States of European Union (EU 27), for the period 2014-2022. Finally the paper ends with conclusions which highlights the final results of the research and signalize the three situations met in the analysis, mentioned above. |
| Keywords: | Efficiency of tax collecting; Taxation changes; Impact; Member States of European Union (EU 27); Direct taxes; Indirect taxes, Gini coefficient (inequality) |
| JEL: | H21 H71 O11 |
| URL: | https://d.repec.org/n?u=RePEc:sek:iefpro:15116786 |
| By: | Christian Volpe-Martincus (IADB); Kerry Loaiza-Marín (Department of Economic Research, Central Bank of Costa Rica); Sandro Zolezzi-Hernández (CINDE); Keyssi Calderón-Medina (CINDE) |
| Abstract: | Empirical evidence shows that MNEs create jobs, refine the productive structure, and help improve the productivity of the host country. It is therefore not surprising that any governments make significant efforts across policy areas to attract these firms’ operations to their countries. In this regard, little is known about whether and how changes in domestic regulations and procedures that determine the easiness of doing business affect MNEs’ activities in and integration into global value chains from the host country. In this paper, we are filling in this gap in the literature using firm-level revenue data combined with country-level data on the number of days required to export, import, and start a business over the period 2006-2019. Our results suggest that lower levels of trade and investment facilitation in host countries are associated with lower levels of foreign affiliates’ revenues therein. These results are robust to using several samples. The negative effect of longer times to trade on foreign affiliates’ revenues is smaller for Costa Rica than for other countries but the opposite holds for longer times to start a business, especially in the case of service sectors. This latter result poses an important policy recommendation for the country. If it improves the regulatory framework and lowers costs to facilitate FDI flows at the firm level, this investment facilitation dimension would bring an extra boost to affiliate revenues relative to other host countries, which would create new incentives to MNEs to look for Costa Rica as a destination for their investments. ***Resumen: La evidencia empírica muestra que las empresas multinacionales (EMN) crean empleo, perfeccionan la estructura productiva y contribuyen a mejorar la productividad del país anfitrión. Por lo tanto, no es de extrañar que los gobiernos realicen importantes esfuerzos en todos los ámbitos políticos para atraer las operaciones de estas empresas a sus países. A este respecto, poco se sabe sobre si los cambios en la normativa y los procedimientos nacionales que determinan la facilidad para hacer negocios afectan a las actividades de las EMN y a su integración en las cadenas de valor mundiales. En este documento, se llena este vacío en la literatura utilizando datos de ingresos a nivel de empresa combinados con datos a nivel de país sobre el número de días necesarios para exportar, importar e iniciar un negocio durante el período 2006-2019. Los resultados sugieren que niveles más bajos de facilitación del comercio y la inversión en los países anfitriones están asociados con niveles más bajos de ingresos de las filiales extranjeras en ellos. Estos resultados son robustos al utilizar varias muestras. El efecto negativo de los plazos más largos para comerciar sobre los ingresos de las filiales extranjeras es menor en el caso de Costa Rica que en el de otros países, pero ocurre lo contrario con los plazos más largos para iniciar un negocio, especialmente en el caso de los sectores de servicios. Este último resultado plantea una importante recomendación de política pública para el país. Si se mejora el marco normativo y se reducen los costos para facilitar los flujos de IED a nivel de empresa, esta dimensión de facilitación de la inversión aportaría un impulso adicional a los ingresos de las filiales en relación con otros países anfitriones, lo que crearía nuevos incentivos para que las EMN buscaran Costa Rica como destino de sus inversiones. |
| Keywords: | Trade and Investment Facilitation, Panel Data, Multinationals, Economic Policy, Costa Rica, Política económica, Multinacionales, Datos de panel, Facilitación de comercio e inversión |
| JEL: | F61 L60 L80 O19 |
| Date: | 2024–02 |
| URL: | https://d.repec.org/n?u=RePEc:apk:doctra:2401 |
| By: | Leo Reutter (University of Kassel); Bernadetta Winiewska (ITG Dresden (Institut für Technische Gebäudeausrüstung Dresden Forschung und Anwendung GmbH)) |
| Abstract: | Due to rent control, the primary landlord-tenant dilemma prevents landlords from recovering costs of energy-efficiency retrofits, which mainly benefit tenants. This necessitates tenancy law to allocate retrofit and energy costs adequately. We analyze the impact of Germany's current system and three reform options on both parties' finances using simulations across various building sizes and retrofit ambitions. We find that, in general, investment costs exceed energy savings. Only two of the reform options consistently incentivize landlord investment, albeit at tenants’ expense, while the status quo system and the third reform option almost always incentivize landlords to forego retrofits. A sensitivity analysis shows these systems’ effectiveness is barely affected by the details of German general tenancy law and local rent markets’ characteristics (rent levels and their inflation, valuation of energy efficiency). Designing landlords’ retrofit premia to depend on the technically estimated energy demand cost savings is especially promising, contingent on reliable energy performance data. |
| Keywords: | Landlord-tenant dilemma, Tenancy law, Allocation of retrofit and energy costs, Simulation model |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:mar:magkse:202508 |
| By: | Dzung Bui (Philipps-Universität Marburg, Marburg Center for Institutional Economics and Sustainability (MACIES)); Bernd Hayo (Philipps-Universität Marburg, Marburg Center for Institutional Economics and Sustainability (MACIES)) |
| Abstract: | This paper examines the causal effect of supply constraints on inflation expectations, using a survey experiment conducted with a representative sample of German adults. Respondents first reported their prior beliefs about both official and personal inflation. They were then presented with information about Germany's 2022 supply bottlenecks and randomly assigned to one of three hypothetical scenarios for 2025. Exposure to either shortage scenario significantly increased the likelihood of revising inflation expectations. Personal exposure to supply shortages in daily life and financial literacy also influenced how respondents revised expectations. A topic analysis of open-ended responses provides further insights into how people interpret and react to perceived product scarcity. |
| Keywords: | Inflation expectation, Supply shortages, Survey experiment, Germany |
| JEL: | D12 D83 D84 E31 E71 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:mar:magkse:202520 |
| By: | Choi, Yewon; Fernandes, Ana Margarida; Grover, Arti; Iacovone, Leonardo; Olarreaga, Marcelo |
| Abstract: | This paper examines the impact of trade promotion organizations on exports during the COVID-19 pandemic using a World Bank survey. The results suggest that increased trade promotion organization budgets significantly boosted exports during downturns but had no effect during the recovery phase. Interestingly, e-commerce programs adopted by trade promotion organizations negatively affected exports during downturns as they diverted resources away from productive support, especially for sectors not intensive in online trade. These findings suggest that countercyclical trade promotion organizations budgets may enhance trade resilience during similar global shocks. |
| Date: | 2025–08–11 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wbrwps:11182 |