Empirica Journal of European Economics
Sponsored by the Austrian Economic Association and the Austrian Institute of Economic Research
Empirica publishes empirical and theoretical work on all economic aspects of European Integration. The topics may range from
all challenges concerning the deepening of the European Union (Single Market, Lisbon Agenda, EMU) to enlargement and the external
relations of the EU (globalisation).
Recent issues(782 Treffer)
Friedrich Heinemann, Theocharis Grigoriadis, Origins of reform resistance and the Southern European regime, in: Special Issue: Challenges for Europe 2050 – Selected Papers of the EUROFRAME Conference 2015 and the WWWforEurope Project
With a particular interest for Southern Europe, this contribution develops a classification of obstacles to economic policy
reforms. This classification covers approaches ranging from classical economics and political-economic explanations to more
innovative explanations linked to behavioural economics. The subsequent part analyses qualitatively and quantitatively to
which extent the "Southern European regime" may imply a particular relevance of some of the potential reform obstacles classified
before. We derive "reform ability profiles" which quantify several of the reform obstacles (or reform drivers) to compare
EU countries in their likely reform predisposition. These profiles confirm particular Southern European weaknesses which tend
to reduce the political-economic feasibility of long-term reforms: a low effectiveness in poverty protection, high intertemporal
discounting and uncertainty avoidance, a poor information level of the population and deeply shattered trust in national institutions.
In a microeconometric analysis based on Eurobarometer survey data, the analysis leaves the highly aggregated level and looks
into the individual heterogeneity in reform acceptance. It is shown that several of the reform obstacles identified in theory
are also empirically correlated with the individual inclination to accept reforms.
Andrea Bonfiglio, Beatrice Camaioni, S. Coderoni, Roberto Esposti, Francesco Pagliacci, Franco Sotte, Where does EU money eventually go? The distribution of CAP expenditure across the European space, in: Special Issue: Challenges for Europe 2050 – Selected Papers of the EUROFRAME Conference 2015 and the WWWforEurope Project
This paper aims to assess the distribution of overall Gross Domestic Product and employment effects produced by Common Agricultural
Policy (CAP) payments across the European Union space. It is empirically investigated how policy funds redistribute their
effects among regions with different levels of rurality and economic development according to their degree and form of integration.
This analysis is performed by constructing and applying a multiregional Input-Output model at a very high level of geographical
disaggregation (NUTS 3 level). Alternative allocation of funds across regions (policy scenarios) is considered in order to
assess redistributive impacts of possible CAP reforms. Results show that the impacts generated by the CAP across space do
not only depend on the initial allocation of funds but also on intersectoral and interregional linkages. This evidence implies
that even a radical reallocation of funds, though it may contribute to reducing regional imbalances, is less redistributive
Anders Gustafsson, Andreas Stephan, Alice Hallman, Nils Karlsson, The "sugar rush" from innovation subsidies: a robust political economy perspective, in: Special Issue: Challenges for Europe 2050 – Selected Papers of the EUROFRAME Conference 2015 and the WWWforEurope Project
The governments of most advanced countries offer some type of financial subsidy to encourage firm innovation and productivity.
This paper analyses the effects of innovation subsidies using a unique Swedish database that contains firm level data for
the period 1997-2011, specifically information on firm subsidies over a broad range of programmes. Applying causal treatment
effect analysis based on matching and a diff-in-diff approach combined with a qualitative case study of Swedish innovation
subsidy programmes, we test whether such subsidies have positive effects on firm performance. Our results indicate a lack
of positive performance effects in the long run for the majority of firms, albeit there are positive short-run effects on
human capital investments and also positive short-term productivity effects for the smallest firms. These findings are interpreted
from a robust political economy perspective that reveals that the problems of acquiring correct information and designing
appropriate incentives are so complex that the absence of significant positive long-run effects on firm performance for the
majority of firms is not surprising.
The purpose of the paper is to provide a long-run analysis up to 2050 of the interplay between financial integration, diverging
labour productivity, and the ageing process in the larger European countries. We use the Prometeia overlapping generation
model for Italy, Germany, and France which are modelled as open economies in capital markets. Our projections provide a core-periphery
structure in which Germany, the most abundant human capital country, shows the highest but a decreasing growth rate due to
pronounced aging, and finances capital accumulation processes in France and Italy. We find that financial trends are reversed
in the late 2010s when Italy begins to over-save as the gap in human capital endowment, and then in productivity, becomes
larger compared to the other two countries. This leads to a reduction in physical capital accumulation and innovation processes
in Italy. We employ fiscal experiments to correct the long-run divergent behaviour of countries in order to get a more homogeneous
growth rate path among countries. We also measure the impact of taxation on net-wealth in Italy, and evaluate the internal
and spillover effects.
Roman Stöllinger, Structural change and global value chains in the EU, in: Special Issue: Challenges for Europe 2050 – Selected Papers of the EUROFRAME Conference 2015 and the WWWforEurope Project
Manufacturing activity in the EU is increasingly concentrated in a Central European (CE) manufacturing core implying divergent
paths of structural change across member countries. This "manufacturing divide" within Europe coincides with deepening economic
integration in general and the emergence of global value chains (GVCs) in particular. Focussing on the manufacturing sector
this paper investigates the relationship between structural change and integration into GVCs in EU countries over the period
1995-2011. The empirical findings suggest a non-linear relationship between the two phenomena: members of the CE manufacturing
core benefit from participation in GVCs in terms of structural change towards manufacturing, whereas in other EU countries
GVC participation, if anything, accelerates the deindustrialisation process.
The European welfare states have undergone a significant amount of change over the last decades. In light of the unresolved
tensions resulting from changed macroeconomic conditions, the emergence of new social risks as well as from the consequences
of the Great Recession and its aftershocks, more adjustments are needed. The present paper investigates the current outlook
on welfare state change, retracing its socio-economic drivers and the salient steps that were undertaken to reform welfare
states in the last decades. Since the outbreak of the crisis, calls to adopt a social investment perspective on welfare state
reform intensified, both in the academic field and at the EU policy level. Ample space is therefore devoted to the discussion
of this perspective, its conceptual basis, and implementation. For a number of reasons, social investment seems the most appropriate
approach to frame the objectives that contemporary welfare states have to pursue and to devise a consistent set of policies.
The objections which have been moved against the social investment perspective have however to be taken seriously. Moreover,
current developments indicate diverging trends across EU countries, with lack of progress in those countries which are most
in need of a social investment strategy. To become an effective policy paradigm, the social investment perspective thus needs
a stronger anchoring within the EU architecture and more co-ordinated commitment from member countries.
This study analyses the persistency of total and disaggregated Turkish exports for different shock magnitudes using the quantile
autoregression (QAR) method in line with Koenker and Xiao (J Am Stat Assoc 99:775-787, 2004). The results suggest that the
persistence of shocks are not similar across different quantiles of total exports and disaggregated export sectors, indicating
an asymmetry in the case of negative and positive shocks across different export sectors. The persistency behaviour of total
exports as well as food and beverages, chemicals, basic metals, raw materials, motor vehicles and radio and TV exports are
asymmetric to negative versus positive shocks, which cannot be captured by traditional unit root tests. Thus, sound interpretation
of QAR results is necessary for policy makers to identify shock characteristics and thereby pursue appropriate policies for
overcoming adverse impacts on the economy.
Due to ambiguity in the past literature, researchers have examined exchange rate volatility effect on trade using disaggregated
data in recent years. Previous research has focused more on aggregated data having aggregation bias which has led to unnecessarily
over-generalised findings. This study investigates the impact of exchange rate volatility on the Malaysian bilateral trade
flows with European Union using industry level data. Our empirical findings, based on auto-regressive distributed lag framework,
suggest that many import and export industries experience exchange rate volatility influence in the short run, while a very
small number of industries show this effect in the long run. Moreover, the adverse impact of the financial crisis (2007-08)
is more prevalent on import industries than on export industries.
This study examines the marginal effects of traditional determinants of exports and imports with a focus on the role of price
competitiveness in restoring external balances in the Euro area. It is a first attempt to compare marginal effects of various
harmonised competitiveness indicators (HCIs) on both exports and imports of both goods and services across individual Euro
area countries. We find evidence that HCIs based on broader cost and price measures have a larger marginal effect (with some
exceptions) on exports of goods. Exports of services are sensitive to HCIs in big Euro area countries and Slovakia, where
exports of services are also found more sensitive to competitiveness indicators based on broader price measures. Imports of
goods and imports of services are quite insensitive to changes in relative prices. Finally, in some cases measures of fit
indicate that a large unexplained residual part is present, implying that other non-price related factors might play an important
role in driving foreign trade and policies aimed at enhancing the quality of goods traded are warranted.