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).

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Recent issues (922 Treffer)

Franz Hackl, Rudolf Winter-Ebmer
Empirica, 2020, 47(4), S.699-731, http://www.springer.com/10663
E-commerce has become an integral part of the world's economy. In this study we investigate the impact of service quality in e-tailing on site visits and consumer demand. Such an analysis is important given the almost Bertrand-like competitive structure. Our analysis is based on a large representative data set obtained from a price comparison site covering essentially the complete Austrian e-tailing market. Customer evaluations for a broad range of 15 different service characteristics are condensed using factor analysis. Negative binomial regression analysis is used to measure the impact of service quality dimensions on referral requests to online shops for different product categories. Our results show that the most important service quality aspects are those related to the ordering process and the firm's website performance.
Juan Carlos Cuestas, Estefanía Mourelle, Paulo José Regis
Empirica, 2020, 47(4), S.733-756, http://www.springer.com/10663
We study the impact of exchange rate misalignment on economic activity in nine Central and Eastern European economies. Exchange rate misalignments are computed from country-specific long-run exchange rate relationships with determinants suggested by open macroeconomic models such as interest rate differentials or the Balassa-Samuelson effect. There was a clear reduction in misalignments, but this has been reversed to some extent after 2008. Exchange rate overvaluation has a negative impact on economic activity. The effect of misalignments on economic activity seems to be nonlinear, as overvaluation has a stronger effect than undervaluation. Other factors of economic activity, including institutions, also show non-linear effects.
In this paper, we assess the asymmetric effects of exchange rate changes on the trade balance of 57 industries that trade between Turkey and EU. Since the analysis introduces nonlinear adjustment of the exchange rate, we find results that are different than previous research. More precisely, we find short-run asymmetry effects in all industries, short-run adjustment asymmetry in 24 industries, short-run impact asymmetry in 17 industries, and long-run asymmetry effects in 23 industries. Small and large industries seem to be subject to the same asymmetry effects.
Unbreen Qayyum, Sohail Anjum, Samina Sabir
Empirica, 2020, 47(4), S.793-834, http://www.springer.com/10663
Historically, plethora of researchers has investigated the role of religion across multiple facets of human existence. Research in the field of religion and economic development is in its initial stage, and now many researchers are concerned about the non-economic factors and their role in the development of an economy. Religion is considered as the most important non-economic factor that constructs the basic institutional infrastructure of a society. This study is thus aimed at exploring the indirect channels through which religion can influence economic growth such as ethics, poverty alleviation, political participation, social capital and mental health. This research also intends to investigate the association between religiosity and economic development at continental level coupled with an effort to know the role of religion in the economic growth of developed and developing countries using cross sectional data of 110 countries. Due to endogeneity problems in religion and other variables, this study uses a system-generalised method of moment to estimate the relationship between religion and economic development. The results report that religion has a positive and statistically significant direct effect on economic development and shadow economy. Channels i.e. ethics, poverty alleviation, political participation, social capital and mental health reduce significantly the size of the religiosity coefficient and makes it less significant that indicates these channels mediate the impact of religion on economic development and shadow economy. Although the individual impact of each channel on economic growth and shadow economy is not significant. In Asia and Europe impact of religion is positive and is highly significant; Africa shows somewhat positive but insignificant results and in case of America the linkage of religion and economic development is not robust. Developing countries show the positive impact of religion on economic development but these results are not robust. In developed countries the effect of religiosity on economic development is positive and robust as well.
I analyse the link between money and credit for twelve industrialised countries in the time period from 1970 to 2016. The euro area and Commonwealth Countries have rather strong co-movements between money and credit at longer frequencies. Denmark and Switzerland show weak and episodic effects. Scandinavian countries and the USA are somewhere in between. I find strong and significant longer run co-movements especially around booming house prices for all the sample countries. The analysis suggests the expansionary policy that cleans up after the burst of a bubble may exacerbate the risk of a new house price boom. The interrelation is hidden in the short run, because the co-movements are then rarely statistically significant. According to the wavelet evidence, developments of money and credit since the Great Recession or their decoupling in Japan suggest that it is more appropriate to examine the two variables separately in some circumstances.
The existing empirical literature on economic convergence and growth emphasises the importance of foreign capital inflows for Central, East and South-East Europe (CESEE). This paper challenges such arguments by stating that not all forms of foreign capital inflows are beneficial for the economic growth of CESEE countries. Our results suggest that remittances (as an alternative foreign capital inflow) tend to slow down economic growth. Moreover, apart from the prevailing trends to investigate the economic convergence of CESEE towards Western European countries, this paper focuses on economic convergence within the CESEE region, that is, on economic convergence of the non-EU CESEE countries towards EU-CESEE countries. We found that, in the last two decades, the living standard in the CESEE region has become increasingly equal. There is a tendency for poorer non-EU CESEE countries to grow faster than richer EU CESEE countries, which confirms the existence of absolute β-convergence. We have also found that each CESEE country converges 2.8 percent closer to its own steady state, in the sense of conditional β, every year.
The UK's Brexit vote marked a major institutional crisis for the EU and re-opened both the scholarly and the popular debate about the importance and drivers of a "European identity". We use quasi-experimental data to estimate the immediate impact of the biggest pan-European cultural event, the Eurovision Song Contest, on whether people in Europe consider themselves to be Europeans. Using data from several Eurobarometer surveys with tens of thousands of observations, we find little evidence that the contest at current provides a sizeable immediate boost to the share of Europeans who feel European, feel EU citizens, or have a positive image of the EU.
Empirica, 2020, 47(4), S.909-928, http://www.springer.com/10663
We investigate the temporal dynamics of correlations between sentiment indices worldwide. Employing the tools of Random Matrix Theory (RMT) and Principal Component Analysis (PCA), our paper aims to extract latent information embedded in the interactions between economic and business sentiment indices around the world. We find that, 1. the dynamics of the sentiment indices across countries can be well explained by the evolution of a single factor (the "market mode"), 2. during most periods, some groups of countries exhibit sentiment dynamics less associated with (or divergent from) the market mode, while 3. during the financial crisis, no country or group of countries has been able to escape the market mode, which accounts for almost all movements in the indices. We argue that strong "global" information signals, like the collapse of the US housing market in 2007, can lead to a homogenisation of the expectation structure around the world, as such information can provide a coordination signal for a global phase of low confidence.
Empirica, 2020, 47(4), S.929-947, http://www.springer.com/10663
This paper provides an in-depth analysis of the links between financial knowledge, attitude and behaviour, based on the Austrian contribution to the OECD/INFE survey on financial literacy. Our analysis gives evidence of causal effects of financial knowledge on financial behaviour, using a new instrument based on respondents' newspaper reading habits. We confirm that the selection bias is likely negative, i.e. we would underestimate the causal effect of knowledge on behaviour in a classical regression setting. Furthermore, we provide mediation analyses, showing that about 13 percent of the causal effect of knowledge on behaviour is mediated through financial attitude.
The paper proposes an extension of the methodology for measuring productivity change based on the Malmquist index that now affords consistent comparisons of productivity change and productivity levels in situations when there are groups of several units monitored in periods of several years. The extended measurement of productivity change is handled in the framework of data envelopment analysis and is applied in two respects in order to analyse productivity patterns of 17 European countries divided into two groups: higher-productivity economies and lower-productivity economies. First, their group-wise productivity changes and productivity differences are examined for the periods 2003-2008 and 2010-2015 divided by the critical crisis year 2009. Second, their absolute and conditional convergence is studied accommodating several specifications of growth regressions. The results confirm that higher-productivity economies preserved their lead in productivity despite the crisis, albeit the productivity differential between higher-productivity and lower productivity economies slightly waned. This is obviously owing to the fact that lower-productivity economies display faster convergence tendencies.
Managing Editor

Univ.-Prof. MMag. Dr. Harald Oberhofer

Funktion: Ökonom (Senior Economist), Managing Editor Empirica
Forschungsbereiche: Industrieökonomie, Innovation und internationaler Wettbewerb