|
on Macroeconomics |
| By: | Philipp Weber; Laura A. Zell; Lars P. Feld; Christoph A. Schaltegger |
| Abstract: | The zero lower bound era introduced a new perspective on the functionality of fiscal rules. With such low interest rates, the argument goes, extending debt financed public investment spending would be reasonable and thus existing fiscal rules too restrictive. Using data of Swiss cantonal public finances between 1990 and 2020, we investigate as to how fiscal rules affect fiscal variables in an environment with low interest rates. In addition to a dynamic model with a bias-corrected least square dummy variable (LSDVC) estimator, the Forecasted Average Treatment (FAT) approach allows us to exploit Switzerland’s unexpected and substantial interest rate drop in 2015 following the termination of the Swiss Franc-Euro peg. The methodological novelty of this approach lies in the investigation of an exogenous shock in absence of a control group. Our results show, first, that fiscal rules constrain public debt and total spending, but not investment spending. Second, variation in the interest rate level has opposing effects on different types of public deficits, but fiscal rules retain their overall constraining effect in a low interest rate environment. Third, we find varying reactions to the interest rate shock depending on rule stringency, but public investment is not systematically more constrained by strict rules. |
| Keywords: | fiscal rules, zero-lower-bound, interest rate shock, public investment |
| JEL: | E43 E62 H54 H63 H74 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11351 |
| By: | Alberto Botta (School of Accounting, Finance and Economics, University of Greenwich, London, UK); Eugenio Caverzasi (Department of Economics, Università degli Studi dell’Insubria, Varese, Italy); Alberto Russo (Department of Economics and Social Sciences, Università Politecnica delle Marche, Ancona, Italy and Department of Economics, Universitat Jaume I, Castellón, Spain) |
| Abstract: | With central banks and national governments returning to more conservative monetary and fiscal policies after Covid, the debate about the macroeconomic effects of fiscal rules has revamped. We address this topic via an extended version of the hybrid ABM-SFC model in Botta et al. (2024) that includes a Taylor-type monetary policy rule and a variety of fiscal rules aimed at reducing the public debt-to-GDP ratio. We compare spending-based fiscal rules vastly advocated by international economic institutions with wealth tax-based fiscal policies. We do this in the context of a modern financialized economy where securitization and complex financial products like Asset-Backed Securities (ABS) alter economic dynamics and the effectiveness of monetary policy in controlling inflation. We assume heterogeneous households to track how alternative fiscal strategies affect income and wealth inequality. Our findings are threefold. First, spending-based fiscal rules can reduce the debt-to-GDP ratio in the long term but at the cost of significantly higher unemployment and permanently lower real GDP. Second, wealth tax-based fiscal policies reduce public debt without harming economic performance. Third, perhaps unexpectedly, in a financialized economy, spending-based fiscal austerity may hurt the relative position of rich households in wealth distribution as much as a wealth tax does; this is due to capital losses that spending cuts may eventually induce in households’ financial wealth. In the end, wealth taxes are preferable to spending cuts, and the usual political opposition against them by the rich appears largely unfounded given their potential economic benefits compared to spending-based fiscal austerity. |
| Keywords: | Spending-based fiscal rule, Wealth tax, Securitization |
| JEL: | E44 E63 H6 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:jau:wpaper:2024/07 |
| By: | Fleischhacker, Jan |
| Abstract: | In this paper, I explore how fiscal policy decisions relate to the business cycle and, building on that, how the effects of policy interventions may vary depending on when policy is conducted in the business cycle. To assess this, I estimate a small to medium-sized DSGE model with expressive non-linear fiscal and monetary rules using a higher-order approximation. The estimation procedure employed in this paper combines several existing approaches developed by Herbst and Schorfheide (2016), Jasra et al. (2010), Buchholz, Chopin and Jacob (2021) and Amisano and Tristani (2010) to trade off computation time and inference quality. The model is estimated using Sequential Monte Carlo techniques to estimate the posterior parameter distribution and particle filter techniques to estimate the likelihood. Together, the estimation procedure reduces the estimation from weeks to days by up to 94%, depending on the comparison basis. To assess the behaviour of the effects of fiscal policy interventions, I sample impulse responses conducted along the historical data. The results present time-varying policy rules in which the effects of fiscal shocks go through deep cycles depending on the initial conditions of the economy. Among the set of fiscal instruments, government consumption goes through the most persistent cycles in its effectiveness in stimulating output. In particular, the effects of government consumption stimulus are estimated to be more effective during the financial crisis and, later, the Covid crisis, while being less effective in periods of above steady state output like the early 2000s. Relating the effects of specific stimulating shocks to the initial conditions using regression techniques, I show that fiscal policy is more effective at stimulating output if the interest rate and debt are low. Furthermore, the effects of government consumption are estimated to be increasing in output while tax cuts are decreasing. As a last contribution, I explore how the behaviour of the central bank and government varies depending on the business cycle by analysing sampled policy rule gradients constructed on historical data. For the central bank, the results show that in phases of high output growth, the central bank puts more emphasis on controlling inflation and less on output. As the economy shifts into crisis, the central bank reduces its focus on inflation and shifts towards bringing output growth back to target. For the fiscal side, the behaviour is heavily governed by the current debt level, and, for example, during the high debt periods of the 1990s, labour taxation became increasingly responsive to debt to stabilize the budget. |
| Keywords: | DSGE fiscal policy non-linear state-space business cycle particle filter bayes SMC MH RWMH Kalman state-dependend |
| JEL: | C1 C11 C4 C5 C6 E62 |
| Date: | 2024–10–23 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:122497 |
| By: | Javier Bianchi; Alisdair McKay; Neil Mehrotra |
| Abstract: | A persistent rise in rents has kept inflation above target in many advanced economies. Optimal policy in the standard New Keynesian (NK) model requires policy to stabilize housing inflation. We argue that the basic architecture of the NK model—that excess demand is always satisfied by producers—is inappropriate for the housing market, and we develop a matching framework that allows for demand rationing. Our findings indicate that the optimal response to a housing demand shock is to stabilize inflation in the non-housing sector while disregarding housing inflation. Our results hold exactly in a version of the model with costless search and quantitatively in a version with housing search costs calibrated to match US data on housing tenure, vacancy rates, and the size of the real estate sector. |
| Keywords: | Housing; Monetary policy; Stabilization policy; Inflation |
| JEL: | E24 E30 E52 |
| Date: | 2024–10–24 |
| URL: | https://d.repec.org/n?u=RePEc:fip:fedmwp:99022 |
| By: | Tatiana Kirsanova; Campbell Leith; Ding Liu |
| Abstract: | We develop a New Keynesian model augmented with a rich description of fiscal policy, including debt maturity structure, where two policymakers- an independent inflation-averse central bank and a (potentially) populist fiscal authority- interact strategically. Central bank independence initially improves inflation outcomes, but this results in reduced fiscal discipline and increased debt. Eventually this leads to inflation lying above pre-independence levels. Introducing a ‘flight-to-safety’ regime, which suppresses the interest rates households require to hold government debt, and a conventional regime, where their time preferences return to normal, allows us to explore how changes in the natural rate can dramatically affect debt dynamics and inflation outcomes. The model offers an explanation of the buildup of government debt since the financial crisis and the subsequent emergence of significant inflation |
| Keywords: | New Keynesian Model; Central Bank Independence; Government Debt; Monetary Policy; Fiscal Policy; Time Consistency. |
| JEL: | E31 E43 E62 E63 |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:gla:glaewp:2024_10 |
| By: | Mistak, Jakub; Ozkan, F. Gulcin |
| Abstract: | This paper examines the asymmetry in global spillovers from Fed policy across tightening versus easing episodes several examples of which have been on display since the global financial crisis (GFC). We build a dynamic general equilibrium model featuring: (i) occasionally binding collateral constraints in the financial sector with significant cross-border exposure; and (ii) global supply chains, allowing us to match the asymmetry of spillovers across contractionary versus expansionary monetary policy shocks. We find clear asymmetries in the transmission of US monetary policy, with significantly larger spillovers during contractionary episodes under both conventional and unconventional monetary policy changes. Our results also reveal that the greater the size of international credit and supply chain networks and the policymakers’ aversion to exchange rate fluctuations in the rest of the world, the greater the spillover effects of US monetary policy shocks. JEL Classification: E52, F41, E44 |
| Keywords: | capital flows, emerging markets, monetary policy, spillovers, supply chains |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:ecb:ecbwps:20242995 |
| By: | Garrón Vedia, Ignacio; Rodríguez Caballero, Carlos Vladimir; Ruiz Ortega, Esther |
| Abstract: | In a globalised world, inflation in a given country may be becoming less responsive to domestic economic activity, while being increasingly determined by international conditions. Consequently, understanding the international sources of vulnerability of domestic inflation is turning fundamental for policy makers. In this paper, we propose the construction of Inflation-at-risk and Deflation-at-risk measures of vulnerability obtained using factor-augmented quantile regressions estimated with international factors extracted from a multi-level Dynamic Factor Model with overlappingblocks of inflations corresponding to economies grouped either in a givengeographical region or according to their development level. The methodology is implemented to inflation observed monthly from 1999 to 2022 for over 115 countries. We conclude that, in a large number of developed countries, international factors are relevant to explain the right tail of the distribution of inflation, and, consequently they are more relevant for the vulnerability related to high inflation than for average or low inflation. However, while inflation of developing low-income countries ishardly affected by international conditions, the results for middle-income countries are mixed. Finally, based on a rolling-window out-of-sample forecasting exercise, we show that the predictive power of international factors has increased in the most recent years of high inflation. |
| Keywords: | Global inflation; Inflation vulnerability; Multi-level dynamic factor model |
| JEL: | E44 C32 C55 E32 O41 F44 F47 |
| Date: | 2024–11–04 |
| URL: | https://d.repec.org/n?u=RePEc:cte:wsrepe:44814 |
| By: | Yuzhe Yang; Yifei Zhang; Yan Hu; Yilin Guo; Ruoli Gan; Yueru He; Mingcong Lei; Xiao Zhang; Haining Wang; Qianqian Xie; Jimin Huang; Honghai Yu; Benyou Wang |
| Abstract: | This paper introduces the UCFE: User-Centric Financial Expertise benchmark, an innovative framework designed to evaluate the ability of large language models (LLMs) to handle complex real-world financial tasks. UCFE benchmark adopts a hybrid approach that combines human expert evaluations with dynamic, task-specific interactions to simulate the complexities of evolving financial scenarios. Firstly, we conducted a user study involving 804 participants, collecting their feedback on financial tasks. Secondly, based on this feedback, we created our dataset that encompasses a wide range of user intents and interactions. This dataset serves as the foundation for benchmarking 12 LLM services using the LLM-as-Judge methodology. Our results show a significant alignment between benchmark scores and human preferences, with a Pearson correlation coefficient of 0.78, confirming the effectiveness of the UCFE dataset and our evaluation approach. UCFE benchmark not only reveals the potential of LLMs in the financial sector but also provides a robust framework for assessing their performance and user satisfaction.The benchmark dataset and evaluation code are available. |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2410.14059 |
| By: | Gilbert Alan Okouanga Pira (USMS - Université Sultan Moulay Slimane); Fatima Touhami (USMS - Université Sultan Moulay Slimane) |
| Abstract: | Cooperatives play an important role in job creation. It is a source of income generation throughout the world. It is also an economic player whose role and activities contribute to solving the problems of poverty and the development of societies, even if it gives rise to voluntary autonomy in order to satisfy common needs. Its establishment calls for several economic, social, cultural and legal aspects. This paper is concerned with a comparative study of the legal and economic framework of Moroccan and Gabonese cooperatives. The aim is to highlight the points in common, while noting the differences between the legislation governing cooperatives in these two countries, and to take advantage of the legal texts in force. Our main interest is to identify the different economic trends by showing the importance of the legal texts for good organization of the cooperative. This study has enabled us to put forward a number of proposals for the economic development of Moroccan and Gabonese cooperatives, in terms of both organization and functions. The creation of think tanks made up of economic and legal experts could be a step forward in terms of management methods and support for volunteers. The analysis of the information gathered has enabled us to monitor the legal and economic development of Moroccan and Gabonese cooperatives, through their organization and involvement in certain sectors of activity. |
| Abstract: | La coopérative joue un rôle important dans la création d'emploi. Il s'agit d'une source génératrice de revenus dans le monde entier. C'est aussi un acteur économique dont le rôle et les activités contribuent à résoudre les problèmes de pauvreté et du développement des sociétés, même si elle suscite une autonomie volontaire afin de satisfaire des besoins communs. Sa mise en place fait appelle à plusieurs aspects économiques, sociaux, culturels et juridiques. Le présent travail s'intéresse à une étude comparative du cadre juridico-économique des coopératives marocaines et gabonaises. Il s'agit de mettre en avant les points communs, tout en relevant les différences entre ce qui se fait dans la législation des coopératives dans ces deux pays et en tirer profit des textes de loi en vigueur. Notre intérêt principal est de déceler les différentes tendances économiques en montrant l'importance des textes de loi pour une bonne organisation de la coopérative. Cette étude nous a permis d'émettre des propositions favorables à l'essor économique des coopératives marocaines et gabonaises aussi bien sur l'aspect organisationnel que fonctionnelles. La création de cercles de réflexion composés d'experts économiques et juridiques pourrait constituer une avancée sur les méthodes de gestion et d'accompagnement des volontaires. Ainsi, l'analyse des informations recueillies nous a donné la possibilité de suivre l'évolution juridico-économique des coopératives marocaines et gabonaises, par leur organisation et leur implication dans certains secteurs d'activité. |
| Keywords: | Morocco, legal economic, Cooperative Classification JEL: K40 Ppaper type: Theoretical research, Gabon Maroc Juridico-économique Coopérative JEL Classification : K40 Type du papier : Recherche théorique Gabon Morocco legal economic Cooperative Classification JEL: K40 Ppaper type: Theoretical research, Gabon, Maroc, Juridico-économique, Coopérative JEL Classification : K40 Type du papier : Recherche théorique Gabon |
| Date: | 2024–08–28 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04680960 |
| By: | David R. Agrawal; Marie-Laure Breuillé; Julie Le Gallo |
| Abstract: | We study local tax competition when municipalities can voluntarily cooperate. We compare the intensity of interjurisdictional policy interdependence between competing municipalities within the same “establishment for inter-municipal cooperation” (EIMC) and competing municipalities outside of the cooperative unit. To resolve the endogeneity of the decision to cooperate we apply the approach of Kelejian and Piras (2014). The strategic response to the average tax rate among peer members of the same EIMC is less intense than the response to the average tax rate of municipalities outside of the cooperative unit. A one percentage point decrease in the average tax rate of non-members lowers the own-jurisdiction tax rate by 0.58 percentage points, while a one unit decrease in the tax rate of towns within the EIMC lowers the own-jurisdiction rate by 0.31 percentage points. Our empirical methods can be used to study strategic interactions within other cooperative groups, including supra-national institutions such as the European Union. |
| Keywords: | tax competition, intermunicipal cooperation, spatial autoregressive models, endogenous weight matrix, local public finance, networks |
| JEL: | C20 H20 H70 R50 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11334 |
| By: | Andres Blanco; Corina Boar; Callum J. Jones; Virgiliu Midrigan |
| Abstract: | We show that standard menu cost models cannot simultaneously reproduce the dispersion in the size of micro-price changes and the extent to which the fraction of price changes increases with inflation in the U.S. time-series. Though the Golosov and Lucas (2007) model generates fluctuations in the fraction of price changes, it predicts too little dispersion in the size of price changes and therefore little monetary nonneutrality. In contrast, versions of the model that reproduce the dispersion in the size of price changes and generate stronger monetary non-neutrality predict a nearly constant fraction of price changes. |
| Keywords: | Menu costs; Inflation; Fraction of price changes |
| Date: | 2024–09–20 |
| URL: | https://d.repec.org/n?u=RePEc:fip:fedgfe:2024-76 |
| By: | Hai-Anh H. Dang (World Bank); Cuong Viet Nguyen (Viet Nam National University, and the Mekong Development Research Institute, Hanoi, Viet Nam) |
| Abstract: | We examine the Covid-19 pandemic-induced negative effects on household welfare in rural Viet Nam. Analysing recent Viet Nam Household Living Standard Surveys spanning 2016–2021, we find robust evidence that lockdown measures resulted in a 3.9% reduction in per capita income and a 2.6 percentage-point increase in the headcount poverty rate of rural households. It also had severe effects on rural households’ wages and self-employed non-farm income, but rural households appeared to have relied on farm income to cope with the lockdowns. Each additional month under lockdown reduced wage income and non-farm income by 2.8% and 6.3% respectively but increased. |
| Keywords: | Covid-19, urban-rural gap, income, poverty, rural households, Viet Nam |
| JEL: | E24 I30 J21 O12 |
| Date: | 2024–01–31 |
| URL: | https://d.repec.org/n?u=RePEc:era:wpaper:dp-2023-23 |
| By: | Arundhati Sinha Roy; Anwesha Aditya; Siddhartha Chattopadhyay; Sugata Marjit |
| Abstract: | Traditional gravity models posit an inverse relationship between geographical distance and bilateral trade due to increased transportation costs. However, recent literature suggests that bilateral service trade may increase between two countries located at an appropriate geographical distance. Using the Poisson Pseudo-Maximum Likelihood (PPML) method, this research analyses two key effects of time difference for 162 countries in 2018 - the continuity effect (enabling 24/7 operations) and the synchronization effect (influenced by cultural and/or institutional differences) for aggregate services, ICT-enabled services, and travel-transportation services. Our findings indicate a positive continuity effect across all service categories, while the synchronization effect varies across categories. We also find that 8-10 hour time difference between two countries appears most advantageous for ICT-enabled service trade between them. This paper underscores the importance of ICT and physical infrastructure, coupled with transparent governance, to boost service trade. |
| Keywords: | service trade, time zone difference, continuity effect, synchronization effect, information and communication technology (ICT) |
| JEL: | F10 F14 L86 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11290 |
| By: | Dongmin KONG (School of Economics, Huazhong University of Science and Technology); Chen LIU (School of Economics, Huazhong University of Science and Technology); Mengxu XIONG (School of Economics, Huazhong University of Science and Technology) |
| Abstract: | This paper explores the effects of the coronavirus disease (COVID-19) pandemic on firm response. Using a novel COVID-19 sentiment index, our estimation shows that the pandemic significantly reduced the overseas revenue and profits of firms listed on the Chinese A-share market. Moreover, we observe that an increase in loans, and a drop in debt financing cost and trade credit, were prominent during the pandemic. We contend that reduced cash flows, which damaged firm operations; government support, which provided more financing channels; and increased default risks, which placed barriers on trade credit, are the plausible mechanisms through which the COVID-19 pandemic affects firm performance. Profit contraction was more pronounced for firms with a lower ratio of domestic content in exports and state-owned enterprises, while external financing was easier for firms subject to stringent financial constraints despite their lowered trade credit. |
| Keywords: | COVID-19 pandemic, firm response, external financing |
| Date: | 2024–02–16 |
| URL: | https://d.repec.org/n?u=RePEc:era:wpaper:dp-2023-29 |
| By: | Christl, Michael; De Poli, Silvia; Köppl-Turyna, Monika |
| Abstract: | This paper refines the concept of disposable income by incorporating governmentprovided in-kind benefits for education and health services, as well as imputed VAT payments, following Figari and Paulus (2015). Our analysis reveals that including these elements significantly reduces income inequality, as seen in a decrease in the Gini coefficient across all examined countries. While direct taxes and cash benefits are the main drivers of redistribution, in-kind benefits also play a substantial role, while VAT having a smaller, negative impact. Our study highlights that additionally extending the income concept increases also the targeting of the tax benefit system to low-income households, however to a very different extend across the EU Member States. Our new, broader approach allows for more accurate assessments of redistribution and cross-country comparisons, offering valuable insights for EU-level policy evaluations. |
| Keywords: | tax-benefits model, EUROMOD, welfare state, in-kind benefits, indirect taxes, redistribution |
| JEL: | H23 I38 H24 D31 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:glodps:1508 |
| By: | Tom Krebs (University of Mannheim); Isabella Weber (University of Massachusetts, Amherst) |
| Abstract: | In the wake of the global energy crisis, many European countries used energy price controls to fight inflation and to stabilize the economy. Despite its wide adoption, many economists remained skeptical. In this paper, we argue that price controls should be part of the policy toolbox to respond to shocks to systemically important sectors because not using them can have large economic and political costs. We put forward our arguments in two steps. In a first step, we analyze the impact on the German economy and society of the global energy crisis that followed Russia’s attack on Ukraine in February 2022. Our analysis shows that energy shocks matter. Specifically, the one-year GDP loss of the energy crisis 2022 amounts to 4 percent and is comparable to the short-run output losses during the COVID-19 crisis 2020 and the global financial crisis 2008. In addition, during the energy crisis 2022 inflation rates rose dramatically and real wages dropped more than in any other year in postwar Germany. There are also clear signs that the crisis is causing severe long-term economic damage (hysteresis effects). At the beginning of 2024, GDP is 7 percent and real wages are 10 percent below the pre-COVID-19 trend. We argue that the German government handled the immediate response to the energy shock well, but subsequently waited too long to introduce an energy price brake in 2022. This failure to act decisively in response to heightened economic insecurity coincided with a strong rise of the approval rates of the far-right AfD in the summer of 2022. We also show that the German energy price brake was an effective price stabilization policy for households, but did not protect the industrial base appropriately making it more likely that the German economy will continue to stagnate. In a final step, we turn to the use of price controls as an optimal policy response to an energy shock within a general equilibrium framework. We develop a simple production model with an energy sector and shows that price controls are socially optimal whenever self-fulfilling expectations generate endogenous price uncertainty in the wake of an energy shock. We also link our analysis to the so-called sunspot literature that was developed in the 1980s as a response to the rational-expectations revolution in macroeconomics. Finally, we use our theoretical analysis to shed some light on the economic policy debate and the resistance of German mainstream economists to the introduction of energy price controls in 2022. |
| Keywords: | Global energy crisis, German economy, endogenous uncertainty, price controls, inflation, stabilization policy |
| JEL: | D52 D84 E12 E32 E64 Q43 Q48 |
| Date: | 2024–03 |
| URL: | https://d.repec.org/n?u=RePEc:agz:wpaper:2403 |
| By: | Petrov, Nikolaj V. |
| Abstract: | Russia pushes for the "Russification" of the territories it occupies in Ukraine. Its policy is aimed at turning them into a military fortress against Ukraine. The declared aim of the economic restoration measures is to make the territories self-sufficient "parts of the Russian Federation". Their "integration" is by far the largest infrastructure project in current Russia. In the absence of tangible military successes, it is also the Kremlin's most important propaganda project. The Kremlin's actions in the occupied territories of Ukraine are like a second front in this war. Studying Russia's occupation policy is important both for understanding the actions of the invader and for developing action plans for the Ukrainian authorities after the end of the war and the liberation of these territories. |
| Keywords: | Russia, occupied territories of Ukraine, "Russification", economic restoration |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:swpcom:304321 |
| By: | Alexandre Truc (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis (1965 - 2019) - CNRS - Centre National de la Recherche Scientifique - UniCA - Université Côte d'Azur) |
| Abstract: | In June of 2010, a special issue in the Journal of Economic Methodology was introduced with the question: "Neuroeconomics: Hype or Hope?" (Marchionni and Vromen, 2010). More than ten years later, it is time to provide an answer. Using a variety of sources ranging from Web of Science to EconLit, I assess the importance of neuroeconomics as a research program in economics. I show that after a rapid increase in interest in the early 2000s, neuroeconomics decreased in importance beginning in the 2010s, especially compared with the continuing rise of behavioral economics. Here, I explore a number of explanations for this decline in interest. Then, I compare neuroeconomics with behavioral economics to emphasize key points of divergence in how these programs were constructed at the frontiers of economics. Most notably, I show that neuroeconomists were more confrontational in their approach to economics, more focused on programmatic writings with few theoretical contributions, and importantly, more oriented towards neuroscience rather than economics. |
| Abstract: | En juin 2010, un numéro spécial du Journal of Economic Methodology soulevait la question suivante : « Neuroeconomics: Hype or Hope ? » (Marchionni et Vromen, 2010). Plus de dix ans après, il est temps de proposer une réponse à cette question. En m'appuyant sur diverses sources, allant de Web of Science à EconLit, j'évalue l'importance de la neuroéconomie en tant que programme de recherche en sciences économiques. Je montre que, après une montée rapide de l'intérêt pour la neuroéconomie au début des années 2000, l'importance de la neuroéconomie a baissé dans les années 2010, notamment en comparaison à l'essor ininterrompu de l'économie comportementale. Dans cet article, j'explore un certain nombre d'explications pour cette perte d'intérêt. Ensuite, je compare neuroéconomie et économie comportementale pour souligner des différences essentielles dans la manière dont ces deux programmes ont été construit à la frontière des sciences économiques. Plus particulièrement, je montre que les neuroéconomistes ont été plus conflictuels dans leur rapport aux sciences économiques, plus actifs dans la production de contributions programmatiques que théoriques, et plus tournés vers le dialogue avec les neurosciences qu'avec les sciences économiques. |
| Keywords: | interdisciplinarity, neuroeconomics, behavioral economics, psychology, neuroscience, interdisciplinarité, neuroéconomie, économie comportementale, psychologie, neurosciences |
| Date: | 2023–06–01 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04719266 |
| By: | Sofoklis Goulas; Bhagya N. Gunawardena; Rigissa Megalokonomou; Yves Zenou |
| Abstract: | Using Greek administrative data, we examine the impact of being randomly assigned to a classroom with a same-gender top-performing student on both short- and long-term educational outcomes. These top performers are tasked with keeping classroom attendance records, which positions them as role models. Both male and female students are influenced by the performance of a same-gender top performer and experience both spillover and conformist effects. However, only female students show significant positive effects from the presence of a same-gender role model. Specifically, female students improved their science test scores by 4 percent of a standard deviation, were 2.5 percentage points more likely to choose a STEM track, and were more likely to apply for and enroll in a STEM university degree 3 years later. These effects were most pronounced in lower-income neighborhoods. Our findings suggest that same-gender peer role models could reduce the underrepresentation of qualified females in STEM fields by approximately 3 percent. We further validate our findings through a lab-in-the-field experiment, in which students rated the perceived influence of randomized hypothetical top-performer profiles. The results suggest that the influence of same-gender top performers is primarily driven by exposure-related factors (increased perception of distinction feasibility and self-confidence) rather than direct interactions. |
| Keywords: | gender gap, lab-in-the-field experiment, natural experiment, random peer group formation, role models, self-confidence, STEM |
| JEL: | J24 J16 I24 I26 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11330 |
| By: | Chiara Lodi; Agnese Sacchi; Francesco Vidoli |
| Abstract: | We investigated the impact of female politicians on waste collection in Italian municipalities in different territories observed over the years 2010-2019. We used a staggered difference-in-differences design to obtain a causal interpretation of the estimated effects. We find that the majority of women in the municipal council positively influence pro-environmental individual behaviour. The impact of a female-majority council is heterogeneous by region and more pronounced in areas with lower social capital. Female politicians as catalysts for positive change fade after 5-6 years, likely due to persistent social norms locally, thus stressing the need for additional cultural actions with long-lasting effects. |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2410.06091 |
| By: | Christian de Boissieu |
| Abstract: | La transition énergétique et écologique (TEE) est inéluctable, souhaitable et désormais acceptée au plan mondial. Mais le financement de cette transition demeure fort incertain. L’objet de ce Policy Paper est d’analyser les besoins de financement à considérer, et de passer en revue les différents canaux financiers possibles. Des pistes ont déjà été lancées, des procédures et des instruments sont mis en place, mais tout cela reste insuffisant. Il va falloir combiner un grand nombre de solutions, lesquelles vont exiger des innovations financières, l’application élargie des critères ESG, une adaptation de certaines réglementations bancaires et financières et plus de coopération internationale. Pour conclure, cet article propose un certain nombre de recommandations pour faciliter le financement de la TEE. |
| Date: | 2023–05 |
| URL: | https://d.repec.org/n?u=RePEc:ocp:rpcoen:pp_08-23 |
| By: | Marcus Vinicius de Freitas |
| Abstract: | China is the largest developing country. Africa is the continent with the largest number of developing countries. The China-Africa economic relationship has developed rapidly over the last two decades. China has increased its investment in Africa over the last four decades. Flows surged from $75 million (2003) to $5 billion (2021). This has had both positive and negative impacts on Africa. Infrastructure improvement, job creation, and overall economic growth can be listed as positive results, leading to improved connectivity, trade, and transportation in a continent where infrastructure integration has always been challenging. Creating such opportunities in Africa has supported lower unemployment rates, particularly among young people, which is fundamental in a continent that enjoys a positive demographic bonus. |
| Date: | 2023–08 |
| URL: | https://d.repec.org/n?u=RePEc:ocp:pbecon:pb_30-23 |
| By: | Vahid Saadi; Omar Rachedi |
| Abstract: | We show in this paper that tax exemptions on income from municipal bonds distort bank mortgage lending standards. Banks in states with a larger tax exemption hold more municipal bonds on their balance sheets. These holdings expose banks to local risks, in particular to real estate risk as municipal bonds are financed to a large extent via property tax revenues with a large elasticity with respect to house prices. We show that banks with a higher share of municipal bonds on their balance sheets divert their mortgage originations out of their home states by relaxing their mortgage lending standards. We provide evidence that this geographical diversification is costly in that banks with higher municipal bond holdings lend to low FICO score and high debt-to-income ratio borrowers away from their home states without a corresponding risk premium in interest rates charged. |
| Keywords: | Geographical diversification; Lending standards; Mortgage originations; municipal bonds |
| JEL: | R3 |
| Date: | 2024–01–01 |
| URL: | https://d.repec.org/n?u=RePEc:arz:wpaper:eres2024-042 |
| By: | Rowe, Francisco; Cabrera-Arnau, Carmen; González-Leonardo, Miguel; Nasuto, Andrea; Neville, Ruth |
| Abstract: | La pandemia COVID-19 modificó los patrones de los movimientos internos de población en todo el mundo. Los trabajos existentes se han centrado en los países del Norte Global y se han limitado a los efectos inmediatos de la COVID-19, utilizando datos de 2020. La falta de datos ha supuesto una limitación importante para analizar los cambios en los patrones de movilidad dentro de los países del Sur Global, incluyendo América Latina. A partir de datos agregados y anonimizados de localización de teléfonos móviles de usuarios de Meta-Facebook, nuestro objetivo es analizar el impacto y la persistencia de la pandemia en las intensidades y los patrones de los movimientos internos de la población a través de la jerarquía urbana en Argentina, Chile y México durante un período de 26 meses, desde marzo de 2020 hasta mayo de 2022. Nuestros resultados revelan una disminución sistemática y generalizada en la intensidad de los movimientos de corta y larga distancia durante periodos con elevados niveles de restricciones en 2020, con mayores reducciones en las áreas más densamente pobladas en las ciudades capitales. También mostramos que, en 2022, tras la relajación de las medidas de restricción, las intensidades aumentaron, acercándose a las registrados antes de la pandemia. Sin embargo, en niveles promedio se han mantenido por debajo de los niveles pre-pandémicos aún en 2022. Nuestros hallazgos sustentan, en cierto modo, la hipótesis de un éxodo urbano, pues revelan la persistencia de saldos netos negativos en los movimientos de corta distancia en las capitales de Argentina y México, reflejando un patrón de suburbanización. Chile no muestra cambios sustanciales en el saldo neto de los movimientos de corta distancia, pero registra pérdidas netas en los desplazamientos de larga distancia. Estas pérdidas fueron, sin embargo, temporales, pasando a saldos neutros o positivos en 2021 y 2022. Esto contrasta con el patrón de pérdidas de migraciones netas observado en la Región Metropolitana de Santiago en los últimos 20 años. |
| Date: | 2024–10–01 |
| URL: | https://d.repec.org/n?u=RePEc:ecr:col045:80722 |
| By: | Ager, Philipp; Pedersen, Maja U.; Sharp, Paul; Tsoukli, Xanthi |
| Abstract: | This study provides a comprehensive understanding of the Great Fire’s effects on London’s economic geography. Our analysis reveals both continuity and change. There was a swift postfire recovery accompanied by some shift in economic activity towards the City of Westminster by 1690, with markets spreading outside the City, but financial services largely remaining inside. Analysis of London Hearth Tax records further illustrates a significant change in the wealth distribution, with wealthier households returning to fire-impacted areas, reshaping the city’s housing and social structure. |
| Keywords: | Great Fire of London, Economic geography, Location of economic activity JEL Classification: N23, N93 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:cge:wacage:719 |
| By: | Chengwang Liao; Ziwei Mei; Zhentao Shi |
| Abstract: | In panel predictive regressions with persistent covariates, coexistence of the Nickell bias and the Stambaugh bias imposes challenges for hypothesis testing. This paper introduces a new estimator, the IVX-X-Jackknife (IVXJ), which effectively removes this composite bias and reinstates standard inferential procedures. The IVXJ estimator is inspired by the IVX technique in time series. In panel data where the cross section is of the same order as the time dimension, the bias of the baseline panel IVX estimator can be corrected via an analytical formula by leveraging an innovative X-Jackknife scheme that divides the time dimension into the odd and even indices. IVXJ is the first procedure that achieves unified inference across a wide range of modes of persistence in panel predictive regressions, whereas such unified inference is unattainable for the popular within-group estimator. Extended to accommodate long-horizon predictions with multiple regressions, IVXJ is used to examine the impact of debt levels on financial crises by panel local projection. Our empirics provide comparable results across different categories of debt. |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2410.09825 |
| By: | Gunther Maier |
| Abstract: | In this paper I discuss a new framework of open source software for writing articles, reports, research notes, webpages, blogs, and many more. The framework is centred around Quarto, a program that integrates formatted text and data analysis in R, Python, or other software and can output a wide range of formats. As compared to traditional solutions, the framework offers major advantages in terms of reproducibility as well as the streamlining of workflows. Because of the many output options, the framework can serve traditional, 'print'-oriented publication processes where one needs to submit a Word-, LaTeX- or PDF-document. At the same time, however, the framework supports HTML-based, web-oriented publication processes and even integrates the respective publication workflow. In this realm, the framework allows for interactivity and embedding of multimedia elements, thus strongly utilizing the advantages of digital media.The paper will give an overview of the framework and discuss some potential applications in real estate research and real estate industry. |
| Keywords: | Digital; Publishing; quarto; Reproducibility |
| JEL: | R3 |
| Date: | 2024–01–01 |
| URL: | https://d.repec.org/n?u=RePEc:arz:wpaper:eres2024-021 |
| By: | Paul Pasquier; Anthony Galluzzo (IAE ST-E - Institut d'Administration des Entreprises de Saint Etienne - UJM - Université Jean Monnet - Saint-Étienne); Laure Ambroise (UJM - Université Jean Monnet - Saint-Étienne, COACTIS - COnception de l'ACTIon en Situation - UL2 - Université Lumière - Lyon 2 - UJM - Université Jean Monnet - Saint-Étienne) |
| Abstract: | La responsabilisation des individus en santé est une stratégie privilégiée par les acteurs de la santé publique, pour favoriser l'amélioration globale de la santé de la population. Alors que l'efficacité d'un programme de responsabilisation est évaluée selon l'adoption ou l'abandon d'un comportement, des effets inattendus de ces programmes ne sont pas considérés. Nous proposons dans le présent article une enquête ethnographique des cultures de consommation des médecines non conventionnelles (MNC). Nous montrons que, à la suite de situations d'errance thérapeutique et informationnelle, et de l'intégration d'une approche dite « holistique », les consommateurs de MNC développent des pratiques de santé qui, tout en s'inscrivant dans une perspective de « responsabilisation », ne correspondent pas toujours aux recommandations des autorités sanitaires. Ces résultats nous permettent de discuter et de nuancer les résultats d'enquêtes récemment parues à propos des MNC, et d'interroger leur appréhension au sein des politiques publiques de santé. |
| Keywords: | communautés de consommation, médecines alternatives, ethnographie, responsabilisation, alternative medicine, ethnography, empowerment |
| Date: | 2024–06–14 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04726627 |
| By: | Sohyeon Kwon; Yongjae Lee |
| Abstract: | In the financial sector, a sophisticated financial time series simulator is essential for evaluating financial products and investment strategies. Traditional back-testing methods have mainly relied on historical data-driven approaches or mathematical model-driven approaches, such as various stochastic processes. However, in the current era of AI, data-driven approaches, where models learn the intrinsic characteristics of data directly, have emerged as promising techniques. Generative Adversarial Networks (GANs) have surfaced as promising generative models, capturing data distributions through adversarial learning. Financial time series, characterized 'stylized facts' such as random walks, mean-reverting patterns, unexpected jumps, and time-varying volatility, present significant challenges for deep neural networks to learn their intrinsic characteristics. This study examines the ability of GANs to learn diverse and complex temporal patterns (i.e., stylized facts) of both univariate and multivariate financial time series. Our extensive experiments revealed that GANs can capture various stylized facts of financial time series, but their performance varies significantly depending on the choice of generator architecture. This suggests that naively applying GANs might not effectively capture the intricate characteristics inherent in financial time series, highlighting the importance of carefully considering and validating the modeling choices. |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2410.09850 |
| By: | Marzia Morena; Tommaso Truppi; Alberto Celani |
| Abstract: | Real Estate is a strategic framework for value creation in the territory; it is the infrastructure which generates innovation, employment, real value, social value and economies of scale in welfare services.In this scenario, Politecnico di Milano – Dip. ABC wants to be a leader and a promoter of innovation and change in Real Estate and does so through the consolidation of a structured network of synergies among universities, students, professors, operators, institutions, market demand, private and social private sector, by creating the REAL ESTATE CENTER. |
| Keywords: | Attractiveness; Challenge; real estate; Territories |
| JEL: | R3 |
| Date: | 2024–01–01 |
| URL: | https://d.repec.org/n?u=RePEc:arz:wpaper:eres2024-062 |
| By: | C.T. Vidya (Centre for Economic and Social Studies (CESS), Hyderabad, India) |
| Abstract: | This paper analyses the trade characteristics, competition networks, and fragility of global trade in goods in the Association of Southeast Asian Nations (ASEAN) economies, particularly in the context of the coronavirus disease (COVID-19). The study covers the 10 ASEAN Member States and 110 trade partners, using the Harmonized System (HS) 6-digit product classification from 2010 to 2021. The findings reveal that ASEAN dominates with trade complementarity. Dense and intense competition networks are found. The electrical and machinery imports from central players are highly sensitive to shocks, with electronics also becoming susceptible to shocks after the pandemic. The study also shows that liquefied natural gas products and countries such as Singapore, Indonesia, Brunei, and Myanmar experienced increased shocks. The research underscores the importance of policymakers prioritising their understanding of trade linkages and potential spillover effects when formulating policies to mitigate the impact of shocks. The findings have implications for policymakers, highlighting the need for them to take a holistic approach when devising policies and strategies to mitigate the adverse effects of global shocks. |
| Keywords: | Export similarity, trade complementarity, competition trade networks, trade fragility, ASEAN |
| JEL: | F14 F15 L14 |
| Date: | 2024–02–16 |
| URL: | https://d.repec.org/n?u=RePEc:era:wpaper:dp-2023-27 |
| By: | Hiroaki Ishiwata (Pacific Consultants Co., Ltd., Tokyo, Japan); Masashi Sakamoto (Tohoku University); Makoto Ikeda (Kobe University); Venkatachalam Anbumozhi (Economic Research Institute for ASEAN and East Asia (ERIA)) |
| Abstract: | This study aims to develop and utilise a multi-regional economic growth model that can take into account flood damage and investment in disaster risk reduction, and, through case studies in Viet Nam, quantitatively analyse the long-term effects of investment in disaster risk reduction on the national and local economy, as well as the optimal scale and timing of investments in flood protection, to gain a better overview of these factors. The results indicate that additional investment in disaster risk reduction could stimulate economic growth, and that the optimal range of the disaster risk reduction budget rate was around 0.3% to 0.5% of GDP, assuming a constant budget rate throughout the total 25-year calculation period. In the case of a variable disaster risk reduction budget rate, we observed that a variable budget rate that gradually reduces the disaster risk reduction budget rate from a higher level than the current rate could further promote economic growth than if the budget rate were fixed. In both cases, we verified that with excessive investment in disaster risk reduction, the high tax burden had the risk of reducing investment in production capital and lead to stagnating economic growth. By region, the long-term effects of investment in disaster risk reduction were most seen in the Central region, where the rate of flood damage is the highest. |
| Keywords: | disaster risk reduction investment, extensive flood risk, multi-regional economic growth model, Viet Nam |
| JEL: | C68 E17 H21 H54 O11 O41 O53 R12 |
| Date: | 2024–02–02 |
| URL: | https://d.repec.org/n?u=RePEc:era:wpaper:dp-2023-24 |
| By: | Jonathan Chapman; Erik Snowberg; Stephanie W. Wang; Colin Camerer |
| Abstract: | We introduce DOSE⸻Dynamically Optimized Sequential Experimentation⸻to elicit preference parameters. DOSE starts with a model of preferences and a prior over the parameters of that model, then dynamically chooses a customized question sequence for each participant according to an experimenter-selected information criterion. After each question, the prior is updated, and the posterior is used to select the next, informationally-optimal, question. Simulations show that DOSE produces parameter estimates that are approximately twice as accurate as those from established elicitation methods. DOSE estimates of individual-level risk and time preferences are also more accurate, more stable over time, and faster to administer in a large representative, incentivized survey of the U.S. population (N = 2; 000). By reducing measurement error, DOSE identifies a stronger relationship between risk aversion and cognitive ability than other elicitation techniques. DOSE thus provides a flexible procedure that facilitates the collection of incentivized preference measures in the field. |
| Keywords: | preference elicitation, risk preferences, time preferences, dynamic experiments, cognitive ability, preference stability |
| JEL: | C81 C90 D03 D81 D90 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11361 |
| By: | Asuamah Yeboah, Samuel; Mogre, Diana; Nartey Menzo, Benjamin Prince |
| Abstract: | This review explores the critical impact of social and cultural factors on credit risk assessment and lending practices, especially in developing countries. By examining existing research, we delve into how cultural norms, social relationships, and community dynamics shape the evaluation of creditworthiness for small and medium-scale enterprises (SMEs). Our findings offer valuable insights for policymakers, financial institutions, and researchers aiming to enhance the accuracy and cultural sensitivity of credit risk management strategies for SMEs in these contexts. |
| Keywords: | Credit risk assessment, lending decisions, social factors, cultural dynamics, small and medium-scale enterprises (SMEs), developing countries, community relationships, cultural norms, creditworthiness evaluation, financial inclusion. |
| JEL: | D14 G21 O16 Z13 |
| Date: | 2024–07–13 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:122363 |
| By: | Touhami Abdelkhalek; Dorothee Boccanfuso |
| Abstract: | Public policies, particularly those related to taxes and subsidies, should help to reduce poverty and inequality. However, the combination of components of these two systems, as implemented, leads sometimes to an increase in poverty and or inequality without being necessarily anticipated. In this policy brief, based on data from the 2019 wave of the Enquête Panel de Ménage from the Observatoire National du Développement Human from Morocco, we first highlight the influence of taxes and subsidies on household incomes. We derive the income variations relating to the tax burden and gains from subsidies for the different population groups. We then characterize taxes and subsidies in terms of their progressiveness and regressiveness. Finally, using a Shapley decomposition, we determine the contribution of each tax and subsidy to poverty and inequality measures. This analysis is done separately for rural and urban areas, useful to formulate recommendations on this basis. Our results show that the tax and subsidy system, taken all together, is redistributive. We can also conclude unambiguously that this system reduces poverty and inequality. However, the value-added tax is regressive in its current form, unlike income tax, which is progressive. Subsidies for primary and secondary education are highly progressive, while those for higher education are regressive, benefiting the wealthiest quintiles. Finally, explicit subsidies on flour, butane gas, and sugar reduce poverty, although they are not pro-poor.1 |
| Date: | 2023–11 |
| URL: | https://d.repec.org/n?u=RePEc:ocp:pbecon:pb_42-23 |
| By: | VILKMAN Marja |
| Abstract: | This report summarises the recent advancements in battery technologies for mobility applications, focusing on electric vehicles, and looks at the main barriers encountered in their journey from lab to market. Both Li-ion batteries and next-generation batteries are discussed. The report includes information about identified barriers for scaling-up the battery manufacturing industry in Europe and proposes solutions to overcome them. It identifies technical challenges, such as manufacturing of Li-ion and next-generation batteries at industrial scale, while maintaining high yield and quality without excessive cost. It also reveals that scaling up is hindered by financial issues and lack of funding, especially given how expensive and risky setting up raw material, recycling or cell manufacturing factories is. The findings also highlight how unpredictable permitting can be a significant barrier, as well as the limited citizen acceptance of either new factories or electric vehicles in general. As solutions, we propose setting up pilot facilities to validate new processes and materials, increased financial support and an improved financial framework to create a level playing field when compared to USA and Asia, and clear rules for permitting. Also, activities to train workforce for the factories is needed, as well as sharing clear and reliable information about batteries for citizens and policymakers. The findings are based on interviews with a sample of 17 research centres, companies and umbrella organisations in Europe along the battery value chain, as well as literature information and the author’s participation in European projects, events, and networks. Relevant policies, such as the Net-Zero Industry Act, the Critical Raw Materials Act and the Batteries Regulation, are taken into consideration in the analysis. |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc139632 |
| By: | WOOLFORD Jayne (European Commission - JRC); LALANNE Marie (European Commission - JRC) |
| Abstract: | European Regional Development Fund (ERDF) programming in the 2021-2027 financial period rec-ognises the role of human capital in place-based approaches to territorial development and innova-tive transformation, allowing for investment in skills for smart specialisation, industrial transition and entrepreneurship. This research quantifies the amount of investment earmarked across the EU-27 for this, alongside similar investments under the temporary Recovery and Resilience Facility (RRF), acknowledging the importance, and yet complexity, of ensuring complementarity between the funding streams. Whilst the legal basis for both resides in the Union’s goal of strengthening eco-nomic, social and territorial cohesion and reducing disparities, the design and implementation of the two instruments reflects different governance models, performance frameworks, policy priorities and actors. The analysis aims to capture how these two instruments support skills development rel-evant to the twin transitions and smart specialisation domains across heterogeneous socio-economic and institutional territories within the context of the European Semester recommenda-tions. However, it provides an overview of proposed investment at the point of adoption of the two sets of programmes in 2022 and 2023, recognising that the results and impact of the allocations, and their integration and connection with their local innovation ecosystem, will depend upon the ter-ritorial context, the projects and beneficiaries selected and implementation approaches. |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc139050 |
| By: | Sylla Maldini; Andrée De Serres |
| Abstract: | This study is based on the analysis of the evolution of institutional and regulatory frameworks of four territorial jurisdictions concerning the fight against climate change and biodiversity protection in the real estate sector: European Union, United-Kingdom, United States, and Canada.When it comes to the fight against climate change, obligations for new construction and major renovations are growing. It is possible to observe the inclusion of an approach considering the life cycle of buildings, the monitoring of construction waste, or even the use of less polluting materials and energy consumptions limits with ultra-efficient buildings or even energy production. Existing buildings for their part are not left out, since they will still constitute a large majority of the real estate stock of the legal frameworks studied. Although the room for maneuver is less, the obligations mainly focus on the energy performance dimensions and requirements increasingly target owners by penalizing them in the event of non-compliance with the consumption thresholds per m2 or ft2 that have been imposed. These sanctions may result in the impossibility of renting non-compliant spaces. All these elements are accompanied by tax incentives or assistance to stimulate the achievement of these thresholds.The biodiversity protection is less established than the fight against climate change, because the government concerns about their ecosystemic impacts have emerged more recently. Nevertheless, considerable dynamism exists to frame this theme. In fact, certain frameworks are already requiring for new constructions such as the need to consider as a priority the realization of dense developments on brownfields sites in urban areas in order to limit sprawl, integrate natural elements within the building to ensure that real estate development does not result in a loss of biodiversity or the obligation to prioritize the in-depth renovation of a building before destroying it to build a new one and justifying why, if applicable. Existing buildings are not left out since obligations relating to greening rates are already effective in some jurisdictions and are on the shelf for others.Finally, in terms of data disclosure, most regulatory frameworks have obligations relating to organizations trading on public stock markets. However, some of them have obligations aiming at private organizations. For the moment the thresholds (of turnover, number of employees and number of assets under management) target large organizations, but these thresholds will fall year after year to include more companies. Jurisdictions which have not yet established obligations in this regard are working on similar requirements. These requirements or draft laws are based on benchmarks such as the TCFD, the ISSB or even EFRAG.All these elements in terms of existing or currently developing obligations complicate the development and ownership of real estate assets. It is a sector in which it becomes necessary to collaborate with partners of choice and to develop knowledge and know-how internally to manage existing stock in order to limit the holding of non-compliant properties (by transferring them or undertaking upgrading work). Monitoring and analyzing the regulatory framework is also essential to anticipate the obligations that could arise and ensure that the long-term value of the assets is preserved as well as the value creation model, because the maintenance or retrofit works on the assets as well as the collection of quality data that can be disclosed generates significant costs. |
| Keywords: | Disclosure; Governance & ESG; Regulatory frameworks; Sustainable Real Estate |
| JEL: | R3 |
| Date: | 2024–01–01 |
| URL: | https://d.repec.org/n?u=RePEc:arz:wpaper:eres2024-149 |
| By: | Abdessalam Jaldi; Hamza Mjahed |
| Abstract: | This policy paper examines India’s growing engagement in North Africa, focusing on five countries: Morocco, Algeria, Tunisia, Libya, and Egypt. Despite lacking a distinct regional policy for North Africa, India has amplified its bilateral engagement with these countries, underpinned by a steadfast commitment to the principle of South-South cooperation. Through its strategic moves in North Africa, India has established a powerful southern-west axis for its foreign policy that stretches from Iran to Morocco, enabling it to effectively cover the entire southern Mediterranean region. This paper traces the trajectory of India’s relations with North Africa, from an ideological approach to a more pragmatic approach focused on economic and security cooperation. It also highlights India’s economic engagement in the region, which has enabled it to emerge as one of the top trading partners for Morocco, Egypt, and Algeria. Based on this analysis, the paper concludes with recommendations to deepen India’s engagement in North Africa, and to enhance its regional presence. |
| Date: | 2023–04 |
| URL: | https://d.repec.org/n?u=RePEc:ocp:rpaagr:pp_04-23 |
| By: | Bogaard, Mariët (Maastricht University); Künn, Steffen (Maastricht University); Palacios, Juan (Massachusetts Institute of Technology); Pestel, Nico (Maastricht University) |
| Abstract: | This paper investigates the impact of air pollution on reservation wages. We use rich survey data on unemployed job seekers in Germany and exploit variation in individual exposure to fine particulate matter (PM10) based on the quasi-random allocation of interview slots to individuals. Our results show that an increase in PM10 by one standard deviation (corresponding to 12 μg/m3) reduces the reservation wage by approximately 1.2%. We further provide evidence that PM10 pollution decreases job seekers' search effort, risk tolerance and patience, which serve as potential mechanisms through which PM10 exposure negatively affects the reservation wage of unemployed job seekers. |
| Keywords: | reservation wage, air pollution, job search |
| JEL: | Q53 J64 |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17344 |
| By: | HARIT, ADITYA |
| Abstract: | This paper presents a mathematical economic model to analyze the trade dynamics along the Ganges River, focusing on the interactions among political stability, technological advancement, guild productivity, and the supply-demand mechanism. The model employs principles from Classical Economics and incorporates elements of Keynesian trade theory. Through a series of equations, we derive equilibrium conditions that describe the economic interactions in the Ganges Valley until the end of the Gupta period. The formulation accounts for diminishing returns, interdependencies among factors, and their combined effects on trade volume. |
| Keywords: | Trade Dynamics, Economic Model, Ganges River, Political Stability, Historical Economics, Supply and Demand. |
| JEL: | A12 B0 C61 N00 |
| Date: | 2024–10–03 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:122274 |
| By: | Colleen Heflin (Center for Policy Research, Maxwell School, Syracuse University, 426 Eggers Hall, Syracuse, NY 13244); Camille Barbin |
| Abstract: | The Supplemental Nutrition Assistance Program (SNAP) receives funding authorization and programmatic stipulations through the Farm Bill, a multi-year federal omnibus bill that provides agriculture and nutrition program funding. The 2018 Farm Bill expired on September 30th, 2024. While funding for SNAP has been extended through a Continuing Resolution, program reauthorization is needed. |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:max:cprpbr:71 |
| By: | Dauth, Wolfgang (Institut für Arbeitsmarkt- und Berufsforschung); Mense, Andreas (Institute for Employment Research (IAB), Nuremberg); Wrede, Matthias (Friedrich-Alexander-Universität Erlangen-Nürnberg) |
| Abstract: | We investigate the employment effects of living in affordable housing. We develop a unique administrative data set of labor market biographies linked to affordable housing projects in five German cities. This allows us to follow individuals in affordable housing over almost 20 years. The funding scheme is similar to the American LIHTC program, so the results are applicable beyond Germany. We use an event study design to exploit the quasi-random timing and allocation of applicants to units. Our findings show that access to affordable housing increases labor income and job quality while decreasing the likelihood of being unemployed. We explain these results by four mechanisms. These mechanisms work through a higher centrality of affordable units, enabling investment in work-related skills, improved housing stability, and increasing work incentives due to reduced housing benefit payments. |
| Keywords: | affordable housing, unemployment, urban labor market access, labor supply, housing policy |
| JEL: | I31 I38 J13 R23 R38 |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17359 |
| By: | Laura Gabrielli; Aurora Greta Ruggeri; Massimiliano Scarpa |
| Abstract: | The energy performance of buildings has emerged as a critical factor in the real estate sector, intertwining environmental sustainability with market pricing. Therefore, this study aims to explore the relationship between a building's energy performance, as indicated by its energy class, and its market value. Leveraging a web-parsing automated procedure, the authors gathered approximately 200, 000 observations of properties currently listed for sale across Italy, capturing both asking prices and energy class specifications. Through the analysis of this extensive dataset, an Artificial Neural Network was trained to develop a predictive tool for estimating property market values based on various building characteristics, with particular emphasis on understanding the impact of energy class on market prices. In conclusion, this research opens the debate on the significance of energy class in evaluating the market value of buildings, especially within the context of the European Green Homes Directive. |
| Keywords: | Artificial Neural Network; Energy class; Market Value; Property Valuation |
| JEL: | R3 |
| Date: | 2024–01–01 |
| URL: | https://d.repec.org/n?u=RePEc:arz:wpaper:eres2024-198 |