nep-inv New Economics Papers
on Investment
Issue of 2025–02–17
34 papers chosen by
Daniela Cialfi, Università degli Studi di Teramo


  1. Minimum wage effects: adjustment through labour market dynamics and alternative work arrangements By Pinjas Albagli; Rui Costa; Stephen Machin
  2. Estimating the wage premia of refugee immigrants By Baum, Christopher F.; Lööf, Hans; Stephan, Andreas; Zimmermann, Klaus
  3. Exploring the Cyberpsychology and Criminal Psychology of Whaling and Spear Fishing On-line Attacks By Darrell Norman Burrell
  4. Navigating challenges By Pietrobelli, Carlo; Anlló, G.; Barletta, F.; Bianchi, C.; Dutrénit, G.; Menéndez de Medina, Maria; Puchet, M.; Rocha, F.; Ruiz, K.; Segura Bonilla, O.; Szapiro, M.
  5. Collaborative Storytelling: A Study of Instructor Strategies for Bilingual Children’s Self-Narrative Composition By Halim Han
  6. Zambia: Systematic analysis of climate and world market shocks By Mukashov, Askar; Diao, Xinshen; Jones, Eleanor; Thurlow, James
  7. Economic Rent Dynamics in the Thai Automotive Industry: State Allocation During GVC Transition By Dom Kandpinijsha
  8. The changing demographics in food systems and implications for future youth engagement in Rwanda By Bachewe, Fantu Nisrane; Mawia, Harriet; Niyonsingiza, Josue
  9. Investigating Circularity in India's Textile Industry: Overcoming Challenges and Leveraging Digitization for Growth By Suman Kumar Das
  10. Multiscale risk spillovers and external driving factors: Evidence from the global futures and spot markets of staple foods By Yun-Shi Dai; Peng-Fei Dai; St\'ephane Goutte; Duc Khuong Nguyen; Wei-Xing Zhou
  11. Intra-Household Welfare Inequality and Household Public Goods By Pierre-AndrŽ Chiappori; Yoko Okuyama; Costas Meghir
  12. Impact of the Pandemic on Labor Relations - Remote Work and Its Specifics in Georgia By Nutsa Turashvili; Ivane Saghinadze; Ekaterine Bakaradze
  13. Health and Economic Impacts of an Early Labor Induction Policy for High-BMI Mothers By Fréget, Louis; Koch Gregersen, Maria
  14. Economic development, environmental challenges & the interests of future generations: Nicholas Georgescu-Roegen’s advice revisited By Jan Fagerberg
  15. Results of the North Dakota Land Valuation Model for the 2023 Agricultural Real Estate Assessment By Haugen, Ronald
  16. Risky College Enrollment, Dropout, and Student Debt Forgiveness By Michael Kaganovich; Itzhak Zilcha
  17. A review of the IAEA Milestones framework for building nuclear power programs By Minh Ha-Duong
  18. Cultural Influences on Workplace Bullying and Violence: Case of Uzbekistan By Deniza Alieva; Mark Beattie; Odinabonu Khojiakbarova; Diyorakhon Yuldasheva
  19. Frontier rule and conflict By Adeel Malik; Rinchan Ali Mirza; Faiz Ur Rehman
  20. A Different World: Enduring Effects of School Desegregation on Ideology and Attitudes By Ethan Kaplan; Jörg L. Spenkuch; Cody Tuttle
  21. The Short Lags of Monetary Policy By Buda, G; Carvalho, V. M.; Corsetti, G; Duarte, J. B.; Hansen, S.; Moura, A. S.; Ortiz, Ã .; Rodrigo, T.; Rodríguez Mora, J. V.; Alves da Silva, G.
  22. Credit Market Tightness and Zombie Firms: Theory and Evidence By Francesco Zanetti; Masashige Hamano; Philip Schnattinger; Mototsugu Shintani; Iichiro Uesugi
  23. Eliminating Tobacco-Related Disease and Death: Addressing Disparities - Your Guide to the Surgeon General’s Report By U.S. Centers for Disease Control and Prevention
  24. The effect of income on New Zealand children’s behaviour: The influence of maternal stress and children’s screen use. By Monk Jaimie; Kate Prickett; Arthur Grimes; Philip S. Morrison
  25. Bruxelles deviendra-t-elle un cas d'école? Défis pour le secteur de l'enseignement face à une plus grande autonomie de Bruxelles By Dirk Jacobs; Joost Vaesen; Benjamin Wayens; Esli Struys; Géraldine Andre; Marie Verhoeven; Marc Swyngedouw; Simon Boone; Dimokritos Kavadias
  26. Banking networks and economic growth: from idiosyncratic shocks to aggregate fluctuations By Kundu, Shohini; Vats, Nishant
  27. Expanding horizons By Yildiz, Yagmur; Chavarro Bohorquez, Diego; Visentin, Fabiana; Ciarli, Tommaso
  28. A Comparison of Bayesian and Frequentist Variable Selection Methods for Estimating Average Treatment Effects in Logistic Regression By Alex H. Martinez; Brian Christensen; Elizabeth F. Sutton; Andrew G. Chapple
  29. Impacts of cool transportation in Nigeria: Midpoint analysis By Yamauchi, Futoshi; Dauda, Bawa; Balana, Bedru; Edeh, Hyacinth; Shi, Weilun
  30. The virtuous loop of quality of government (QoG) and institutional trust in OECD countries, 2006-2021 and culture By Hussain, Ahmed; Ritzen, Jo
  31. Mitigating Estimation Risk: a Data-Driven Fusion of Experimental and Observational Data By Francisco Blasques; Paolo Gorgi; Siem Jan Koopman; Noah Stegehuis
  32. Does exposure to markets promote investment behavior? By Nigus, Halefom; Nillesen, Eleonora; Mohnen, Pierre
  33. Automation-induced reshoring and potential implications for developing economies By Nii-Aponsah, Hubert; Verspagen, Bart; Mohnen, Pierre
  34. Belief distortions and Disagreement about Inflation By Giuseppe Pagano Giorgianni; Valeria Patella

  1. By: Pinjas Albagli; Rui Costa; Stephen Machin
    Abstract: This report investigates the UK's 2016 National Living Wage (NLW) introduction, focusing on firm adjustment through labour market transitions and job contract amendments. The NLW boosted worker wages, and whilst there was no change in total employment, firms adjusted through changes in employment composition and by altering employment contracts. The NLW spurred increased transitions from temporary to permanent roles, reduced underemployment, and shifted workers away from non-standard arrangements like part-time roles. However, a modest rise in zero-hour contracts among exposed workers reflects the nuanced nature of these adjustments. These contract changes, and shifts in composition and transition dynamics, provide insights into ways in which employers adjustment to cost shocks induced by minimum wage increases, and how at the same time they maintain employment stability and reshape within-firm job and career structures.
    Keywords: UK Economy, Wages, employment
    Date: 2025–02–04
    URL: https://d.repec.org/n?u=RePEc:cep:cepsps:49
  2. By: Baum, Christopher F.; Lööf, Hans; Stephan, Andreas; Zimmermann, Klaus
    Abstract: This paper examines the wage earnings of fully-employed previous refugee immigrants in Sweden. Using administrative employer-employee data from 1990 onwards, about 100, 000 refugee immigrants who arrived between 1980 and 1996 and were granted asylum, are compared to a matched sample of native-born workers. Employing re-centered influence function (RIF) quantile regressions to wage earnings for the period 2011–2015, the occupational-task-based Oaxaca–Blinder decomposition approach shows that refugees perform better than natives at the median wage, controlling for individual and firm characteristics. This overperformance is due to female refugee immigrants, who have—relative to their endowment—higher wages than comparable native-born female peers up to the 8th decile of the wage distribution. Given their endowments, refugee immigrant females perform better than native females across all occupational tasks studied, including non-routine cognitive tasks. A remarkable similarity exists in the relative wage distributions among various refugee groups, suggesting that cultural differences and the length of time spent in the host country do not significantly affect their labor market performance.
    JEL: O15 J60 J24 F22 C23
    Date: 2024–02–26
    URL: https://d.repec.org/n?u=RePEc:unm:unumer:2024004
  3. By: Darrell Norman Burrell (University of Maryland School of Pharmacy, Baltimore, MD, USA; Marymount University, USA)
    Abstract: This study examines the convergence of cyberpsychology and criminal psychology in whaling attacks at XXO University, where faculty received phishing emails impersonating senior leaders to solicit sensitive information. Unlike general phishing, whaling attacks are tailored to exploit authority bias and organizational trust, targeting specific high-ranking individuals to access confidential data. The inquiry highlights how psychological manipulation underpins these attacks, using techniques that circumvent technical safeguards by leveraging human behavior and cognitive biases. With spear phishing responsible for 95% of successful network breaches and 65% of targeted attacks, these tactics underscore a critical gap in traditional cybersecurity measures that focus solely on technical defenses without addressing psychological vulnerabilities (Reed 2022; Avery 2023). The investigation further reveals the escalating costs and operational risks posed by these attacks, as companies face over 700 social engineering attempts annually, averaging $14.8 million in losses for larger organizations (Reed 2022). Whaling and spear phishing is especially potent within hierarchical structures like universities, where authority compliance is ingrained. This study underscores the need for a cybersecurity framework that integrates behavioral insights, aiming to develop organizational resilience against social engineering by addressing both cognitive and technical vulnerabilities.
    Keywords: Whale Phishing, Spear Phishing, cyberpsychology, criminal psychology, Authority-Obedience Theory, Social Engineering, Compliance Theory, Shattered Assumption Theory
    Date: 2024–08
    URL: https://d.repec.org/n?u=RePEc:smo:raiswp:0465
  4. By: Pietrobelli, Carlo (RS: UNU-MERIT); Anlló, G.; Barletta, F.; Bianchi, C.; Dutrénit, G.; Menéndez de Medina, Maria (RS: GSBE MGSoG, Maastricht Graduate School of Governance); Puchet, M.; Rocha, F.; Ruiz, K.; Segura Bonilla, O.; Szapiro, M.
    Abstract: This paper explores the challenges and opportunities for Latin America in adopting sustainable development strategies, with a particular focus on Science, Technology and Innovattion (STI) policies. It gathers the insights of a group of distinguished scholars on STI policies, social inclusion and sustainability from the region who participated in the panel organized by the UNESCO Chair during the LALICS* conference held in Asuncion, Paraguay, on 19-21 June 2023. It addresses the challenges that hinder Latin America’s inclusive, sustainable and innovative development process from different perspectives. Highlighted challenges include strong inequality, high informality levels, and low R&D expenditure, heterogeneous productive structure posing obstacles to innovation and their governance. Scholars highlight the role of STI policies and the engagement of academia, government, and business in reducing inequality and promoting social protection, and discuss the technological capabilities needed to address climate change and digitalisation in the region.
    JEL: E61 O31 Z18
    Date: 2023–11–21
    URL: https://d.repec.org/n?u=RePEc:unm:unumer:2023040
  5. By: Halim Han (Hanbat National University, Daejeon, Korea of Republic)
    Abstract: The purpose of this study is to analyze instructor strategies for constructing Korean picture books dealing with self-narratives. The 15 bilingual children in the case study had either Russian or English as their first language and had very low oral proficiency in Korean, having lived in Korea for an average of less than 3 years. Therefore, it was difficult for children to compose their picture book independently. In this study, strategies for self-narrative construction were devised and applied, addressing linguistic, content, cultural and identity aspects over the course of 10 weeks of lessons. The result of the study showed that children with low oral proficiency were able to construct their own narrative through teacher’s collaborative strategies. In interviews, both children and parents expressed high levels of satisfaction with the picture books.
    Keywords: collaborative storytelling, bilingual children, Korean picture books, educational strategies
    Date: 2024–08
    URL: https://d.repec.org/n?u=RePEc:smo:raiswp:0434
  6. By: Mukashov, Askar; Diao, Xinshen; Jones, Eleanor; Thurlow, James
    Abstract: This study explores Zambia’s vulnerability to economic and climatic shocks and identifies those contributing most to economic uncertainty. The Zambian Computable General Equilibrium (CGE) model was employed to simulate a range of potential economic outcomes under various sampled shock scenarios developed using historical data on domestic agricultural yield volatilities and world market prices for traded goods. Data mining and machine learning methods were applied to quantify the contribution of each shock to the uncertainty of these outcomes. We find that Zambia’s economy is predominantly exposed to external risks, with foreign capital flows and world market price volatility together accounting for approximately three-fourths of potential variations in GDP, private consumption, poverty, and undernourishment. Domestic agricultural yield volatilities contribute the remaining one-fourth. The current structure of the Zambian economy underpins these results. While agriculture is the most uncertain sector, its relatively small contribution to GDP limits its economywide and macroeconomic impacts. Instead, export earnings from copper and foreign exchange capital flows play a much more significant role in shaping Zambia's economic risks and their social and economic impacts. Understanding how potential shocks might impact various segments of the Zambian economy and population is a critical first step in facilitating a discussion on risk mitigation strategies that include increasing sectoral productivity or diversifying production to reduce reliance on high-risk sectors.
    Keywords: shock; economic shock; computable general equilibrium models; agriculture; market prices; exports; climate; machine learning; Zambia; Africa; Southern Africa
    Date: 2024
    URL: https://d.repec.org/n?u=RePEc:fpr:ewracb:4
  7. By: Dom Kandpinijsha (Chulalongkorn University, Bangkok, Thailand)
    Abstract: Within the global value chain, firms' ability to generate economic rents—additional profits above baseline returns—is crucial to their competitiveness, with state-allocated exogenous rents also shaping industry structure. This research examines rent dynamics in the Thai automotive industry, focusing on the interplay between policy rents and GVC rents. It traces these dynamics along the evolving path from the inception of the automotive industry in Thailand to the ongoing disruptive transition to new energy vehicles (NEVs), which accentuates the established configuration of power and interests across the industry. Findings indicate that: 1) local firms occupy subordinate roles throughout the development trajectory due to a lack of policy rents specifically targeting the effective enhancement of indigenous productive competencies; 2) when an industry has matured with established positions within the value chain, stakeholders endowed with significant rents stand to capture more benefits from policy rents, especially during transitional phases; 3) as local firms are not encouraged to proactively accumulate technological rents, they resort to seeking non-productive rents as opportunities permit. This research underscores how the interaction between state policy and foreign investment influences the architecture of the Thai automotive industry, offering insights into broader economic effects in emerging economies.
    Keywords: economic rents, industrial policy, global value chain (GVC), foreign direct investment (FDI), automotive industry, NEV transition
    Date: 2024–08
    URL: https://d.repec.org/n?u=RePEc:smo:raiswp:0475
  8. By: Bachewe, Fantu Nisrane; Mawia, Harriet; Niyonsingiza, Josue
    Abstract: Food systems are critically important for food security and employment in Sub-Saharan Africa (SSA). Moreover, expansion of nonfarm components of food systems (FS) reinforces efforts to transition out of agriculture. FS, particularly off-farm segments of food value chains, must grow rapidly to guarantee food and nutrition security for growing populations and to provide the quantity and variety of food demanded as a result of increases in urbanization and income, as well as to accommodate accompanying technological and other changes. The impact, inevitability, and amenability to policy interventions of these factors and the extent of FS transformation needed differs across countries. Future FS also face several emerging challenges. Employment and job creation are among the areas that are significantly affected by FS transformation. Demographic changes that accompany expanding FS employment are also critical for gender equity and youth inclusion. The extent, speed, and complementarity of the FS transformation and increased employment varies across countries. However, there is currently no system in place to monitor the extent of FS transformation or its interactions with other aspects of the economy, such as employment. This study of Rwanda uses secondary data from the International Labour Organization (ILO) (2023), World Bank (2023), and Integrated Household Living Conditions Survey (EICV) (2023) to investigate demographic trends in overall FS employment and who is and is not engaging in FS; and to document sectoral and overall economic growth, population and demographic changes, and urbanization trends—all which influence and are influenced by FS growth. The study contributes to the literature by testing the predicted patterns of employment growth and inclusiveness in agrifood systems, and by pointing to the nodes of employment in FS where gender- and age-based inequities exist, thereby facilitating policymaking and interventions to ameliorate the problems. In addition, tracking performance in employment-related Sustainable Development Goals (SDGs) in Rwanda contributes to our understanding of the progress made in SSA toward inclusiveness, efficiency, and poverty reduction, particularly progress that benefits women and the youth. Rwanda’s economy grew remarkably during the two decades covered in the study (2001–2022). Agriculture contributed significantly to gross domestic product (GDP) as well as to overall and FS employment. Per capita income more than doubled, although it still is about half the average GDP per capita of SSA. The population, threequarters of whom are under 35 years of age, increased by 70% during the period. There have been great strides in education, particularly for girls and women. However, urbanization has been slow, and half of the country’s urban residents live in the capital city. The unemployment rate in Rwanda has been twice the SSA average and has generally been increasing. More than half of the workers are employed in agriculture, although this share declined considerably during the period. Farming contributes significantly to FS employment. However, the share of overall FS employment declined during the period, due to a decline in farming employment accompanied by stagnant employment in non-farm FS. Relative to men, women’s overall labor force participation rate is considerably lower and their unemployment rate higher. A larger share of women work in low-skill jobs and this gap increased during the period; a relatively larger share of women are employed in FS, but a smaller share work in the nonfarm component of FS and this gender gap widened. Similarly, relative to mature adults, youth are less advantaged. The labor force participation rate of youth is considerably lower, and the rate of unemployment is higher and increasing relatively faster among youth. However, differences in FS employment among youth and mature adults were considerably lower and shown no clear trend. Findings of this study point to several short- and long-run policy implications.
    Keywords: data; employment; food systems; nutrition; youth; Rwanda; Africa; Eastern Africa
    Date: 2024
    URL: https://d.repec.org/n?u=RePEc:fpr:sfs4yp:3
  9. By: Suman Kumar Das
    Abstract: India's growing population and economy have significantly increased the demand and consumption of natural resources. As a result, the potential benefits of transitioning to a circular economic model have been extensively discussed and debated among various Indian stakeholders, including policymakers, industry leaders, and environmental advocates. Despite the numerous initiatives, policies, and transnational strategic partnerships of the Indian government, most small and medium enterprises in India face significant challenges in implementing circular economy practices. This is due to the lack of a clear pathway to measure the current state of the circular economy in Indian industries and the absence of a framework to address these challenges. This paper examines the circularity of the 93-textile industry in India using the C-Readiness Tool. The analysis comprehensively identified 9 categories with 34 barriers to adopting circular economy principles in the textile sector through a narrative literature review. The identified barriers were further compared against the findings from a C-readiness tool assessment, which revealed prominent challenges related to supply chain coordination, consumer engagement, and regulatory compliance within the industry's circularity efforts. In response to these challenges, the article proposes a strategic roadmap that leverages digital technologies to drive the textile industry towards a more sustainable and resilient industrial model.
    Date: 2025–01
    URL: https://d.repec.org/n?u=RePEc:arx:papers:2501.15636
  10. By: Yun-Shi Dai; Peng-Fei Dai; St\'ephane Goutte; Duc Khuong Nguyen; Wei-Xing Zhou
    Abstract: Stable and efficient food markets are crucial for global food security, yet international staple food markets are increasingly exposed to complex risks, including intensified risk contagion and escalating external uncertainties. This paper systematically investigates risk spillovers in global staple food markets and explores the key determinants of these spillover effects, combining innovative decomposition-reconstruction techniques, risk connectedness analysis, and random forest models. The findings reveal that short-term components exhibit the highest volatility, with futures components generally more volatile than spot components. Further analysis identifies two main risk transmission patterns, namely cross-grain and cross-timescale transmission, and clarifies the distinct roles of each component in various net risk spillover networks. Additionally, price drivers, external uncertainties, and core supply-demand indicators significantly influence these spillover effects, with heterogeneous importance of varying factors in explaining different risk spillovers. This study provides valuable insights into the risk dynamics of staple food markets, offers evidence-based guidance for policymakers and market participants to enhance risk warning and mitigation efforts, and supports the stabilization of international food markets and the safeguarding of global food security.
    Date: 2025–01
    URL: https://d.repec.org/n?u=RePEc:arx:papers:2501.15173
  11. By: Pierre-AndrŽ Chiappori (Columbia University); Yoko Okuyama (Uppsala University); Costas Meghir (Yale University)
    Abstract: In this paper we develop a novel approach to measuring individual welfare within households, recognizing that individuals may have both different preferences (particularly regarding public consumption) and differential access to resources. We construct a money metric measure of welfare that accounts for public goods (by using personalized prices) and the allocation of time. We then use our conceptual framework to analyse intrahousehold inequality in Japan, allowing for the presence of two public goods: expenditures on children and other public goods including housing. We show empirically that women have much stronger preferences for both public goods and this has critical implications for the distribution of welfare in the household.
    Date: 2025–02
    URL: https://d.repec.org/n?u=RePEc:cwl:cwldpp:2395r1
  12. By: Nutsa Turashvili (New Vision University, Tbilisi, Georgia); Ivane Saghinadze (New Vision University, Tbilisi, Georgia); Ekaterine Bakaradze (New Vision University, Tbilisi, Georgia)
    Abstract: The paper aims to study the impact of the pandemic on labor relations and the specifics of legal regulation in Georgia. The study examines the legal regulation of the organization of the remote work process due to the COVID-19 pandemic in terms of sudden termination of labor relations, aggravation of working conditions, and radical change to the conditions agreed between the parties, and other similar circumstances. The research attempts to identify what problems, questions, or unclear circumstances may be faced by both the employee and the employer; to what extent is the result of actions in labor relations consistent with labor legislation during the pandemic; whether the legislation of Georgia allows orientation during the mentioned period; and whether there are any norms in the labor legislation of Georgia that may directly or indirectly relate to the regulation of remote work. The challenges and gaps that became very relevant in the labor legislation of Georgia during the pandemic of 2020 are highlighted. At the end of the study, the ways of solving the gaps identified in labor relations and legislation are presented, as well as the elimination mechanisms for their application in reality, based on the example of the world response. Recommendations are presented to strengthen and improve the labor legislation of Georgia with more positive elements.
    Keywords: labor law, remote work, Georgian legislation, labor relations
    Date: 2024–08
    URL: https://d.repec.org/n?u=RePEc:smo:raiswp:0457
  13. By: Fréget, Louis; Koch Gregersen, Maria
    Abstract: A large economics literature studies the marginal returns of birth interventions. Still, it is almost non-existent on a fairly common intervention: medically initiating labor to prevent the health risks of a pregnancy lasting too long. Because labor induction can also have side effects, the optimal timing of birth remains debated and can depend on the specific population of mothers under study. In this paper, we assess the effects of an early labor induction policy for a fast growing share of pregnancies: high-BMI women. We provide the first piece of causal evidence on the topic by exploiting Danish guidelines which recommend routine induction at 7 days after the expected due date instead of 10-13 days after for mothers with a pre-pregnancy BMI of at least 35. Early labor induction improves immediate maternal and neonatal health, reduces universal nurse visits during the first year of life of the child, as well as maternal postpartum depression risks.
    Keywords: Early Health Interventions, Labor Induction, Child \& Maternal Health, Regression Discontinuity
    Date: 2025–02
    URL: https://d.repec.org/n?u=RePEc:cpm:docweb:2501
  14. By: Jan Fagerberg (Centre for Technology, Innovation and Culture (TIK), University of Oslo, Norway. Department of Food and Resource Economics, University of Copenhagen, Denmark)
    Abstract: The concern about the current generation’s overuse of the earth’s resources, at the expense of the well-being of future generations, is not new. Already half a century ago, there was a very vivid debate about this issue. A thorough assessment was made in 1975 by the Romanian-American scholar Nicholas Georgescu-Roegen in an article entitled “Energy and Economic Myths”, commonly acknowledged as one of the main sources of inspiration of the so-called “degrowth” literature. However, it is argued that it would be a misunderstanding to see Georgescu-Roegen as an advocate of “degrowth” (or alternatively a stationary economy) as appropriate strategies to save mankind from environmental and resource challenges. Georgescu-Roegen’s advice was not to stop economic development, or advocate for harsh sacrifices by those living today. Rather what he suggested was to overhaul the working of the global economy (and the policies associated with it) so that the world becomes a more equitable place, nature (threatened species) is better protected (to our own benefit), and the harm to future generations becomes as small as possible. A key element in making this possible, according to Georgescu-Roegen, was transitioning from a fossil-fuel driven to a solar-powered economy. It is argued that Georgescu-Roegen’s approach (and program) is indeed very relevant for contemporary discussions of how to deal with important challenges facing both the present and, not the least, future generations.
    Date: 2025–02
    URL: https://d.repec.org/n?u=RePEc:tik:inowpp:20250210
  15. By: Haugen, Ronald
    Keywords: Agricultural Finance, Crop Production/Industries, Land Economics/Use
    Date: 2023–09–22
    URL: https://d.repec.org/n?u=RePEc:ags:nddaae:349394
  16. By: Michael Kaganovich; Itzhak Zilcha
    Abstract: The paper analyzes the effects of two kinds of college education subsidies: unconditional tuition discounts and targeted forgiveness of student loans on student college enrollment and completion or dropout decisions. We focus on students’ imperfect knowledge of their academic ability at the time of matriculation and its updating in the course of study as key factors in their responses to funding policies. We find that while unconditional tuition subsidies incentivize both matriculation and continued study even upon the revelation of low ability hence low returns to college, a policy combining such subsidy with partial forgiveness of student debt conditional on dropping out has a doubly efficient effect of risk mitigation: it maintains incentives to matriculate but discourages continued study when low future returns are revealed. It is, moreover, superior in terms of mitigating the “bad debt” held by students, that unrecouped by returns to college. Budget neutral conversion of a part of unconditional tuition subsidy to targeted debt forgiveness reduces the aggregate bad debt held by students.
    Keywords: college enrolment, dropout, tuition subsidy, student debt
    JEL: H52 I22 J24
    Date: 2025
    URL: https://d.repec.org/n?u=RePEc:ces:ceswps:_11620
  17. By: Minh Ha-Duong (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École nationale des ponts et chaussées - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique)
    Abstract: Purpose: To analyze the International Atomic Energy Agency's "Milestones" guidebook which provides a framework for developing national nuclear power programs. Methods: Review of the IAEA guidebook and recent nuclear industry reports, using architectural metaphors to explain concepts. Results: The guidebook presents nuclear power development as a system engineering challenge requiring coordinated progress across 19 infrastructure elements through 3 sequential phases over 10-15 years. The systematic approach remains relevant despite dramatic changes in the global energy landscape, where renewables now generate more electricity than nuclear in many markets. Practical implications: For Vietnam, which is considering restarting its nuclear program, the framework helps identify which foundational elements from previous work remain solid and which need reconstruction. Significant updating will be needed across all infrastructure elements to reach Phase 2 readiness for contracting.
    Abstract: Résumé structuré en français Objectif: Analyser le guide "Milestones" de l'Agence internationale de l'énergie atomique qui fournit un cadre pour le développement des programmes nucléaires nationaux. Méthode: Revue du guide AIEA et des rapports récents sur l'industrie nucléaire, utilisant des métaphores architecturales pour expliquer les concepts. Résultats: Le guide présente le développement de l'énergie nucléaire comme un défi d'ingénierie système nécessitant des progrès coordonnés à travers 19 éléments d'infrastructure en 3 phases séquentielles sur 10-15 ans. L'approche systématique reste pertinente malgré les changements spectaculaires du paysage énergétique mondial, où les énergies renouvelables produisent maintenant plus d'électricité que le nucléaire sur de nombreux marchés. Implications pratiques: Pour le Vietnam, qui envisage de relancer son programme nucléaire, le cadre aide à identifier quels éléments fondamentaux des travaux précédents restent solides et lesquels nécessitent une reconstruction. Des mises à jour importantes seront nécessaires pour tous les éléments d'infrastructure pour atteindre la Phase 2 de préparation à la contractualisation.
    Abstract: Mục đích: Phân tích sổ tay "Các mốc phát triển" của Cơ quan Năng lượng Nguyên tử Quốc tế, cung cấp khung phát triển chương trình điện hạt nhân quốc gia. Phương pháp: Rà soát sổ tay IAEA và các báo cáo gần đây về ngành công nghiệp hạt nhân, sử dụng phép ẩn dụ kiến trúc để giải thích các khái niệm. Kết quả: Sổ tay trình bày việc phát triển điện hạt nhân như một thách thức kỹ thuật hệ thống đòi hỏi tiến độ phối hợp trên 19 yếu tố cơ sở hạ tầng qua 3 giai đoạn tuần tự trong 10-15 năm. Cách tiếp cận có hệ thống vẫn phù hợp mặc dù có những thay đổi lớn trong bối cảnh năng lượng toàn cầu, nơi năng lượng tái tạo hiện đang sản xuất nhiều điện hơn hạt nhân trên nhiều thị trường. Ý nghĩa thực tiễn: Đối với Việt Nam, quốc gia đang xem xét khởi động lại chương trình hạt nhân, khung này giúp xác định những yếu tố nền tảng nào từ công việc trước đây vẫn còn vững chắc và những yếu tố nào cần được xây dựng lại. Cần cập nhật đáng kể trên tất cả các yếu tố cơ sở hạ tầng để đạt được sự sẵn sàng Giai đoạn 2 cho ký kết hợp đồng.
    Date: 2024–12–02
    URL: https://d.repec.org/n?u=RePEc:hal:ciredw:hal-04816335
  18. By: Deniza Alieva (Management Development Institute of Singapore in Tashkent, Uzbekistan); Mark Beattie (Management Development Institute of Singapore in Tashkent, Uzbekistan); Odinabonu Khojiakbarova (Management Development Institute of Singapore in Tashkent, Uzbekistan); Diyorakhon Yuldasheva (Management Development Institute of Singapore in Tashkent, Uzbekistan)
    Abstract: Workplace bullying and violence are important issues that deeply impact employee well-being, organizational effectiveness, and overall workplace culture. This study explores these challenges through two surveys conducted in April 2024 in Tashkent, Uzbekistan, involving 92 individuals from the education, production, logistics, and sales sectors. Participants were divided into two groups of 46, with data collected through surveys self-administered in the presence of researchers and face-to-face interviews. The first study focused on workplace bullying, revealing that participants experienced various forms of mistreatment, including verbal abuse, social exclusion, and undermining of their work. Notably, cultural factors played a significant role in shaping the tolerance and perception of these behaviors. The second study examined workplace violence, uncovering instances of physical altercations and psychological harassment. Here, cultural attitudes toward authority, gender roles, and conflict resolution were found to influence the perception and management of such violence. These findings underscore the importance of culturally sensitive strategies for addressing workplace bullying and violence. Developing policies and interventions that respect and reflect local values can help organizations in Uzbekistan foster safer, more inclusive work environments. This research contributes to the ongoing conversation in management and business studies, offering practical insights for organizational leaders, policymakers, and scholars seeking to enhance workplace culture in the region.
    Keywords: workplace bullying, workplace violence, Uzbekistan, culture
    Date: 2024–08
    URL: https://d.repec.org/n?u=RePEc:smo:raiswp:0453
  19. By: Adeel Malik; Rinchan Ali Mirza; Faiz Ur Rehman
    Abstract: Colonial powers often governed the frontier regions of their colonies differently from non-frontier regions, employing a system of “frontier rule” that restricted access to formal institutions of conflict management and disproportionately empowered local elites. We examine whether frontier rule provides a more fragile basis for maintaining social order in the face of shocks. Using the arbitrarily defined historical border between frontier and non-frontier regions in northwestern Pakistan and 10km-by-10km grid-level conflict data in a spatial regression discontinuity design, we find that areas historically under frontier rule experienced significantly higher violence against the state after 9/11. We argue that 9/11 represented a shock to grievances against the state which, in the absence of formal avenues of conflict management, escalated into sovereignty-contesting violence. A key strategy employed by insurgents in this escalation was the systematic assassination of tribal elites, which undermined the cornerstone of frontier rule’s social order.
    JEL: D02 D71 N45 P48
    Date: 2025
    URL: https://d.repec.org/n?u=RePEc:csa:wpaper:2025-01
  20. By: Ethan Kaplan; Jörg L. Spenkuch; Cody Tuttle
    Abstract: In 1975, a federal court ordered the desegregation of public schools in Jefferson County, KY. In order to approximately equalize the share of minorities across schools, students were assigned to a busing schedule that depended on the first letter of their last name. We use the resulting quasi-random variation to estimate the long-run impact of attending an inner-city school on political participation and preferences among whites. Drawing on administrative voter registration records and an original survey, we find that being bused to an inner-city school significantly increases support for the Democratic Party and its candidates more than forty years later. Consistent with the idea that exposure to an inner-city environment causes a permanent change in ideological outlook, we also find evidence that bused individuals are much less likely to believe in a “just world” (i.e., that success is earned rather than attributable to luck) and, more tentatively, that they become more supportive of some forms of redistribution. Taken together, our findings point to a poverty-centered version of the contact hypothesis, whereby witnessing economic deprivation durably sensitizes individuals to issues of inequality and fairness.
    Keywords: ideology, inequality, school desegregation, busing
    JEL: H00 P00 J00 N00
    Date: 2025
    URL: https://d.repec.org/n?u=RePEc:ces:ceswps:_11625
  21. By: Buda, G; Carvalho, V. M.; Corsetti, G; Duarte, J. B.; Hansen, S.; Moura, A. S.; Ortiz, Ã .; Rodrigo, T.; Rodríguez Mora, J. V.; Alves da Silva, G.
    Abstract: We examine the transmission of monetary policy shocks to the macroeconomy at high frequency. To do this, we build daily consumption and investment aggregates using bank transaction records and leverage administrative data for measures of daily gross output and employment for Spain. We show that variables typically regarded as "slow moving", such as consumption and output, respond significantly within weeks. In contrast, the responses of aggregate employment and consumer prices are slow and peak at long lags. Disaggregating by sector, consumption category and supply-chain distance to final demand, we find that fast adjustment is led by downstream sectors tied to final consumption—in particular luxuries and durables—and that the response of upstream sectors is slower but more persistent. Finally, we find that time aggregation to the quarterly frequency alters the identification of monetary policy transmission, shifting significant responses to longer lags, whereas weekly or monthly aggregation preserves daily-frequency results.
    Keywords: Event-study, Monetary Policy, Economic Activity, High-Frequency Data, Local Projections
    JEL: E31 E43 E44 E52 E58
    Date: 2025–02–11
    URL: https://d.repec.org/n?u=RePEc:cam:camjip:2504
  22. By: Francesco Zanetti; Masashige Hamano; Philip Schnattinger; Mototsugu Shintani; Iichiro Uesugi
    Abstract: We develop a framework of financial intermediation with search and matching frictions between banks and firms which explains the co-existence of bank lending to unprofitable firms with low productivity (zombie firms). The incidence of zombie firms depends on credit market tightness that encapsulates the abundance of credit provision in financial markets. An increase in credit market tightness initially increases the share of zombie firms due to the bank's incentive to forgo costly separation. In contrast, the firm's incentive to terminate an unprofitable relationship rises with an increase in credit market tightness, which decreases the share of zombie firms. These countervailing forces generate an inverted U-shaped relationship between credit market tightness and the share of zombie firms. A high firm bargaining power magnifies the firm's incentive to terminate unprofitable relationships and decreases the share of zombie firms. We test our theory by constructing measures of credit market tightness and bargaining power for 31 industries in Japan. We find that capital injections during the Japanese banking crisis of the early 2000s had stronger efficacy in reducing the share of zombie firms in sectors with high firms' bargaining power, consistent with the predictions of our theoretical framework.
    Date: 2025–01
    URL: https://d.repec.org/n?u=RePEc:cnn:wpaper:25-005e
  23. By: U.S. Centers for Disease Control and Prevention
    Keywords: Medicine and Health Sciences
    Date: 2024–11–19
    URL: https://d.repec.org/n?u=RePEc:cdl:ctcres:qt8zg215mq
  24. By: Monk Jaimie (Motu Economic and Public Policy Research); Kate Prickett (Victoria University of Wellington); Arthur Grimes (Motu Economic and Public Policy Research); Philip S. Morrison (Victoria University of Wellington)
    Abstract: This paper explores how a family’s income affects the behavioural development of children. The research finds that New Zealand children in higher-income households have fewer reported behavioural problems than children in lower-income households, even once socio-demographic and parenting differences are accounted for. In contrast, children across the income groups have similarly reported strengths (prosocial behaviour). New Zealand children grow up in a wide variety of environments, each of which shapes their development. Growing up free from the burden of poverty is linked to fewer behaviour problems. But the way poverty impacts children’s behaviour is poorly understood, particularly in Aotearoa New Zealand, yet is essential in targeting support to parents during the developmentally crucial early-to-middle years of childhood. This research explores the differences in New Zealand children’s behavioural outcomes between high- and low-income families and finds that a higher family income supports children’s behavioural development. Results emphasise the importance of the ‘first 1, 000 days’. The associations between income and behaviour problems are greater during the preschool years when compared with when children were 8 years old. An examination of mothers’ stress and children’s screen time found that both factors explain part of the association between income and reports of children’s behaviour problems. These pathways however were strongest—or only existed—during the early childhood years suggesting a higher income provides for decreases in mothers’ stress, potentially freeing them up for more engaged parenting. Large amounts of screen time during early childhood are associated with poorer child outcomes, but the benefit of parents moderating children’s screens when they are older, or in small doses is unclear.
    Keywords: child development; family wellbeing; poverty; children’s technology use; child behaviour
    JEL: I31 I32 I14
    Date: 2024–09
    URL: https://d.repec.org/n?u=RePEc:mtu:wpaper:24_02
  25. By: Dirk Jacobs; Joost Vaesen; Benjamin Wayens; Esli Struys; Géraldine Andre; Marie Verhoeven; Marc Swyngedouw; Simon Boone; Dimokritos Kavadias
    Abstract: L’organisation de l’enseignement à Bruxelles obéit principalement à une logique linguistique :les prestataires d’enseignement sont soit francophones, soit néerlandophones. Le législateur l’a fermement établi pour l’enseignement obligatoire, obligeant les enfants et les parents à faire un choix linguistique, qui est d’ailleurs réversible. L’enseignement est donc une matière communautaire sur laquelle la Région n’a que peu d’influence. Une réforme de l’État vers une plus grande autonomie de Bruxelles dans une Belgique à quatre Régions et la disparition des Communautés (par essence interrégionales) engendrerait un certain nombre d’opportunités et de menaces pour le secteur de l’enseignement. Cependant, si nous nous prêtons à l’exercice académique d’imaginer un scénario dans lequel la Région de Bruxelles-Capitale deviendrait (co-)responsable de l’enseignement, nous faisons principalement face à une longue liste de défis et d’obstacles. Faire de l’enseignement une compétence bruxelloise ne peut s’organiser du jour au lendemain. Il se peut aussi que ce ne soit tout simplement pas une bonne idée, mais nous laissons ce jugement aux lecteurs et aux lectrices. Dans ce texte, nous examinerons d’abord les caractéristiques et les défis du secteur de l’enseignement à Bruxelles, puis la question de l’enseignement bilingue et multilingue, et nous dresserons enfin une ébauche prospective de ce qu’impliquerait un transfert de compétences en matière d’enseignement à la Région de Bruxelles-Capitale
    Keywords: Bruxelles; réforme d'état; régionalisme; avenir institutionnel; Belgique à Quatre régions; prospective
    Date: 2025–02–05
    URL: https://d.repec.org/n?u=RePEc:ulb:ulbeco:2013/388193
  26. By: Kundu, Shohini; Vats, Nishant
    Abstract: This paper investigates the role of banking networks in the transmission of shocks across borders. Combining banking deregulation in the US with state-level idiosyncratic demand shocks, we show that geographically diversified banks reallocate funds from economies experiencing negative shocks to unaffected regions. Our findings indicate that in the presence of idiosyncratic shocks, financial integration reduces business cycle comovement and synchronizes consumption patterns. Our findings contribute to explaining the Great Moderation and provide empirical support for theories that predict that banking integration facilitates the insurance of region-specific risk and the efficient allocation of resources as markets become more complete. JEL Classification: E32, F36, G21
    Keywords: business cycles, economic growth, financial integration, great moderation, idiosyncratic shocks, regional economics
    Date: 2025–02
    URL: https://d.repec.org/n?u=RePEc:ecb:ecbwps:20253019
  27. By: Yildiz, Yagmur (RS: GSBE other - not theme-related research, Mt Economic Research Inst on Innov/Techn); Chavarro Bohorquez, Diego (RS: GSBE other - not theme-related research, Mt Economic Research Inst on Innov/Techn); Visentin, Fabiana (RS: GSBE other - not theme-related research, Mt Economic Research Inst on Innov/Techn); Ciarli, Tommaso (Mt Economic Research Inst on Innov/Techn)
    Abstract: This paper studies whether receiving a post-doctoral mobility grant drives early career researchers to expand the scope of their research by diversifying into new topics. We use data on Marie Sklodowska-Curie Actions Individual Fellowships (MSCA-IF) funded under Horizon 2020 and implement a Regression Discontinuity Design to provide causal evidence. Our results indicate that being awarded MSCA-IF has a positive impact on expanding the breadth of the research portfolio. Funded applicants increase the share of publications with new topics compared to those who are not funded, but only in the years closest to receiving the grant. The results suggest that funded applicants are able to increase their portfolio of research topics more quickly than similar non-funded early career researchers. MSCA-IF speeds up the process of exercising cognitive exploration and intellectual growth, suggesting that they accelerate the process of expanding the scope of research. Our findings contribute to the debate on the role of public funding in shaping research trajectories, fostering intellectual development, and promoting career progress. Policymakers and organizations supporting early career researchers through post-doctoral mobility grants can benefit from these insights to enhance the effectiveness of such programs.
    JEL: I23 O31 O38
    Date: 2024–05–21
    URL: https://d.repec.org/n?u=RePEc:unm:unumer:2024010
  28. By: Alex H. Martinez; Brian Christensen; Elizabeth F. Sutton; Andrew G. Chapple
    Abstract: In many manuscripts, researchers use multivariable logistic regression to adjust for potential confounding variables when estimating a direct relationship of a treatment or exposure on a binary outcome. After choosing how variables are entered into that model, researchers can calculate an estimated average treatment effect (ATE), or the estimated change in the outcome probability with and without an exposure present. Which potential confounding variables should be included in that logistic regression model is often a concern, which is sometimes determined from variable selection methods. We explore how forward, backward, and stepwise confounding variable selection estimate the ATE compared to spike-and-slab Bayesian variable selection across 1, 000 randomly generated scenarios and various sample sizes. Our large simulation study allow us to make pseudo-theoretical conclusions about which methods perform best for different sample sizes, rarities of coutcomes, and number of confounders. An R package is also described to implement variable selection on the confounding variables only and provide estimates of the ATE. Overall, results suggest that Bayesian variable selection is more appealing in smaller sample sizes than frequentist variable selection methods in terms of estimating the ATE. Differences are minimal in larger sample sizes.
    Keywords: Average Treatment Effect, ATE, Bayesian, Frequentist, Variable Selection
    JEL: C01 C11 C21
    Date: 2025–03–01
    URL: https://d.repec.org/n?u=RePEc:eei:rpaper:eeri_rp_2025_01
  29. By: Yamauchi, Futoshi; Dauda, Bawa; Balana, Bedru; Edeh, Hyacinth; Shi, Weilun
    Abstract: A randomized controlled trial was introduced to see impacts of cool transportation that connects three vegetable markets in northeast and two large demand centers in southern regions of Nigeria. This note summarizes the findings from the midpoint analysis. First, the impact of cool transportation is large and statistically significant. Sales price, revenue and profit significantly increase for marketers. Second, impacts on sales price are quantitatively large, and a larger portion of sales price increase is attributed to refrigeration, that is, quality preservation through cooling. About 70% of the increase comes from cooling; only 30% from transportation. Third, impacts on revenue and profit, relative to non-cool transportation, are also quantitatively large. In particular, the analysis shows a large proportional increase in profit.
    Keywords: capacity building; coolers; transport; randomized controlled trials; markets
    Date: 2024
    URL: https://d.repec.org/n?u=RePEc:fpr:cgiarp:168914
  30. By: Hussain, Ahmed; Ritzen, Jo (Maastricht Graduate School of Governance, RS: GSBE MGSoG, RS: UNU-MERIT Theme 3)
    Abstract: We explore empirically the relationship between trust in government and the quality of government (QoG) with a dynamic panel model for the period 2006-2021 in the 38 OECD countries, with reverse and lag specifications while incorporating a range of social, political, and economic factors as explanatory variables. The results show a clear positive mutually reinforcing dynamic between QoG and trust in government when the social, political and economic factors are included. Trust in government with a three-year lag is positively related to QoG. Foreign-born population with a three-year lag is negatively associated with QoG. The other way around: trust in government is affected by the QoG in the same year. Economic decline reduces trust in government. QoG and trust appear to be embedded in culture (measured with the Hofstede indices). Power distance is negatively related to both QoG and institutional trust. The association between individualism and QoG is positive, while long-term orientation and indulgence positively impact trust.
    JEL: D31 D73 D78 E61 H50 H83 I38 O10 Z13 Z18 Z19
    Date: 2023–09–18
    URL: https://d.repec.org/n?u=RePEc:unm:unumer:2023029
  31. By: Francisco Blasques (Vrije Universiteit Amsterdam and Tinbergen Institute); Paolo Gorgi (Vrije Universiteit Amsterdam and Tinbergen Institute); Siem Jan Koopman (Vrije Universiteit Amsterdam and Tinbergen Institute); Noah Stegehuis (Vrije Universiteit Amsterdam and Tinbergen Institute)
    Abstract: The identification of causal effects of marketing campaigns (advertisements, discounts, promotions, loyalty programs) require the collection of experimental data. Such data sets frequently suffer from limited sample sizes due to constraints (time, budget) which can result in imprecise estimators and inconclusive outcomes. At the same time, companies passively accumulate observational data which oftentimes cannot be used to measure causal effects of marketing campaigns due to endogeneity issues. In this paper we show how estimation uncertainty of causal effects can be reduced by combining the two data sources by employing a self-regulatory weighting scheme that adapts to the underlying bias and variance. We also introduce an instrument-free exogeneity test designed to assess whether the observational data is significantly endogenous and experimentation is necessary. To demonstrate the effectiveness of our approach, we implement the combined estimator for a real-life data set in which returning customers were awarded with a discount. We demonstrate how the indecisive result of the experimental data alone can be improved by our weighted estimator, and arrive to the conclusion that the loyalty discount has a notably negative effect on net sales.
    Keywords: endogeneity, data fusion, experimental data, observational data
    JEL: C51 C55 C93
    Date: 2024–11–03
    URL: https://d.repec.org/n?u=RePEc:tin:wpaper:20240066
  32. By: Nigus, Halefom; Nillesen, Eleonora (RS: GSBE UM-BIC, Maastricht Graduate School of Governance, RS: GSBE MGSoG); Mohnen, Pierre (RS: GSBE other - not theme-related research, QE Econometrics)
    Abstract: This study investigates the effect of exposure to markets on farm households' agricultural investment decisions. We assess whether and how market experience affects farmers' adoption of risky but profitable technologies and explore the role of plausible demand-side barriers therein. Specifically, we hypothesize that risk preferences and locus of control change with market experience and as such may explain the relationship between market experience and investment decisions. We use surveys and incentivized experimental data, collected from the Tigray regional state of Ethiopia and use an Endogenous Switching Probit and IV-Probit models to attenuate endogeneity issues. Our findings suggest, first, that market exposure induces farmers to adopt agricultural technologies, such as chemical fertilizer, improved seeds, manure, and row planting and second, that market experience attenuates risk aversion and, although less robustly so, leads to a more internal locus of control. Policies to in crease farmers' investments may thus not be confined to providing access to technologies and information but should perhaps be complemented with interventions that attend to lowering psychological barriers.
    JEL: C93 G22 H41 O17
    Date: 2023–08–14
    URL: https://d.repec.org/n?u=RePEc:unm:unumer:2023028
  33. By: Nii-Aponsah, Hubert (RS: GSBE other - not theme-related research, Mt Economic Research Inst on Innov/Techn); Verspagen, Bart (RS: GSBE other - not theme-related research, Mt Economic Research Inst on Innov/Techn, RS: UNU-MERIT Theme 1); Mohnen, Pierre (RS: GSBE other - not theme-related research, QE Econometrics)
    Abstract: Technological progress in automation technologies, such as Artificial Intelligence (AI), is expected to impact production activities beyond the home country adopting them as countries interact within the global trade system. Firms tend to offshore production activities to other countries when it is more profitable to produce elsewhere than at home. The adoption of automation technologies reduces the cost of producing in the home country, making previous offshore locations relatively less attractive. From a global perspective, the altered cost structure induces reshoring: a reorganization of production activities back home or to other lower-cost locations. Developing economies, which previously served as low-cost locations, could be adversely impacted by experiencing a drop in the production of the affected sectors and goods. This paper analyses the potential effect of automation on the global portfolio of trade specialization based on the principle of comparative advantage, employed in an extension of Duchin’s World Trade Model to include non-tradable sectors. Through scenario-based analyses within the global economic context and using data, primarily, from the World Input-Output Database (WIOD) and the International Assessment of Adult Competencies (PIAAC), we find that countries in lower-income Asia are likely to be the most adversely affected by reshoring induced by automation in advanced economies.
    JEL: O33 D33 E25 F14 F17 F47 J21
    Date: 2023–05–22
    URL: https://d.repec.org/n?u=RePEc:unm:unumer:2023018
  34. By: Giuseppe Pagano Giorgianni; Valeria Patella
    Abstract: Disagreement in inflation expectations amplifies inflation and lowers unemployment when beliefs are systematically upward-biased. Using the 1-year-ahead inflation forecast microdata from the Michigan Survey of Consumers, we employ a NK-Phillips curve framework and compute local projections on the contribution of inflation beliefs' distributions to inflation, in response to a belief distortion shock. They reveal that higher expected inflation leads firms to overreact by raising prices, when the shock is less informative and expectations are more dispersed. Hence, a weak consensus prompts confident, sentiment-driven expectations, and firms' expansionary behaviors, reducing unemployment and sustaining production. Conversely, a strong and more informative consensus about future inflationary outcomes fosters contractionary adjustments, increasing unemployment, and easing the labor market.
    Keywords: Inflation; Belief Formation; Heterogeneous Agents; Survey Expectation Microdata; NK Phillips Curve; Functional Data Analysis; Local Projections
    JEL: E31 C22 D84 C32
    Date: 2025–02
    URL: https://d.repec.org/n?u=RePEc:sap:wpaper:wp256

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