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As economies increasingly rely on digitalization, information and communication technologies (ICT) have become critical in shaping global economic transformations. This study explores the impact of ICT on export concentration and diversification in emerging markets and developing countries. Using a panel data set of 110 countries from 2000 to 2019, the Generalized Method of Moments (GMM) estimator has been employed to assess the short- and long-term effects of ICT on these economies. To summarize information on various ICT channels, an ICT index has been constructed through principal component analysis (PCA). Additionally, the study examines the combined influence of ICT and human capital on export concentration. Findings indicate that ICT development significantly accelerates export diversification in developing countries, aligning their export structures with global standards. The interaction between ICT and human capital positively impacts export concentration, suggesting that higher levels of human capital enhance ICT's effects. Overall, ICT not only boosts human capital but also equips developing countries with the skills needed to enter new markets, develop high-value products, and compete globally. Consequently, governments in developing countries should prioritize investments in ICT infrastructure to lower trade costs, diversify exports, and promote sustainable economic growth. [ABSTRACT FROM AUTHOR]

Abstract.To facilitate semiparametric estimation of general discrete-choice, censored, sample selection, and other complex panel data models, we study identification and estimation of nonseparable multiple-index models in panel data with correlated random effects and a fixed number of time periods. The parameter vectors of interest are shown to be identified up to multiplicative constants and the average marginal effects are identified under the assumption that the distribution of individual effects depends on the explanatory variables only through their averages across time. Under this assumption, we propose to estimate the unknown parameters by the generalized method of moments based on the average and outer product of the difference of derivatives of the regression function. The rate of convergence and asymptotic distribution is established both for the proposed parameter estimates and the average marginal effects. We conduct Monte Carlo simulation studies to assess finite-sample performance of the proposed estimator. We also use it to model dynamic earnings of women, and using our general identification results, we find a negative effect of the number of children not only on the selection into employment as usual, but also on the average earnings. [ABSTRACT FROM AUTHOR]

AbstractIn this study, we consider 2- and 3-step estimators for censored quantile regression models with fixed effects. In the first step of these estimators, the informative subset is determined through the estimation of censoring probability. While previous studies often employ symmetric link functions for estimating the censoring probability, these may not accurately identify the best subset when the distribution of the censoring probability is skewed. Given the prevalence of asymmetrically censored data in empirical analyses, we propose using an asymmetric link function for more accurate subset determination. We conduct Monte Carlo simulations and empirical analysis to assess our proposed methods. Our Monte Carlo simulations and empirical analysis confirm that an asymmetric link function offers a better fit for asymmetrically censored data. For symmetrically censored data, the symmetric link function performs better in moderate and large samples, while the asymmetric link function performs slightly better in small samples. These findings underscore the importance of considering both the censoring probability distribution and sample size in panel quantile regression. [ABSTRACT FROM AUTHOR]

Purpose: This study aims to revisit the relationship between the stringency of employment protection legislation and entrepreneurship at the macro-level using time series data from 28 OECD countries. Design/methodology/approach: To address model uncertainty, a Bayesian model averaging methodology is employed, overcoming issues related to predictor selection. Additionally, the study delves into the interaction between employment protection legislation and the rule of law, considering potential unintended consequences and overlapping effects. Heterogeneity within self-employment is explored, making a distinction between solo self-employment and employer entrepreneurship. Findings: The findings reveal that the impact of employment protection legislation, both for regular and temporary employment, on aggregate solo self-employment rates is contingent upon the level of practical regulatory compliance. The legislation can either stimulate or hinder entrepreneurship, highlighting the nuanced nature of its influence on macro-level entrepreneurial activities. Practical implications: The results of this study provide valuable insights for policymakers and regulators by emphasizing the complexity of the relationships under consideration. Understanding the potential interactions between employment protection legislation, rule of law and practical regulatory compliance is crucial for designing an effective and conducive regulatory environment for entrepreneurship. Originality/value: This research offers a unique contribution to the literature in three distinct ways: by addressing model uncertainty through Bayesian model averaging, examining the interaction between employment protection legislation and the rule of law and differentiating between solo self-employment and employer entrepreneurship. These distinctive elements enhance the originality and value of the study, providing a more nuanced understanding of the intricate relationship between legal frameworks and macro-level entrepreneurship. [ABSTRACT FROM AUTHOR]

Purpose: The purpose of this study is to investigate whether and how inter-firm cooperation and firm age moderate the relationship between family ownership and productivity. Design/methodology/approach: We first estimate the total factor productivity (TFP) of a large sample of Italian firms observed over the period 2010–2018 and then apply a Poisson random effects model. Findings: TFP is, on average, higher for non-family firms (non-FFs) than for FF. Furthermore, inter-organizational cooperation and firm age mitigate the negative effect of family ownership. In detail, it is found that belonging to a network acts as a moderator in different ways according to firm age. Indeed, young FFs underperform non-FF peers, although the TFP gap decreases with age. In contrast, the benefits of a formal network are high for older FFs, suggesting that an age-related learning process is at work. Practical implications: The study provides evidence that FFs can outperform non-FFs when they move away from Socio-Emotional Wealth-centered reference points and exploit knowledge flows arising from high levels of social capital. In the case of mature FFs, networking is a driver of TFP, allowing them to acquire external resources. Since FFs often do not have sufficient in-house knowledge and resources, they must be aware of the value of business cooperation. While preserving the familiar identity of small companies, networks grant FFs the competitive and scale advantages of being large. Originality/value: Despite the wide but ambiguous body of research on the performance gap between FFs and non-FFs, little is known about the role of FFs' heterogeneity. This study has proven successful in detecting age as a factor in heterogeneity, specifically to explain the network effect on the link between ownership and TFP. Based on a representative sample, the study provides a solid framework for FFs, policymakers and academic research on family-owned companies. [ABSTRACT FROM AUTHOR]

Purpose: In this paper, the heterogeneity of the linkages among financial development, productivity and growth across income groups is emphasized. Design/methodology/approach: An empirical analysis is conducted with an illustrative sample of 130 economies over the period 1991–2019 and classified into four subsamples: Organisation for Economic Co-operation and Development (OECD), developing, least developed and net food importing developing countries. Forecast error variance decompositions and panel vector auto-regressive estimations are computed, with insightful findings. Findings: Higher levels of output stimulate the economic development in the agricultural sector, mainly via the productivity channel and, in the most developed economies, also through access to credit. Differently, in developing and least developed economies, the role of access to credit is marginal. The findings have practical implications for stakeholders involved in the planning of long-run investments. In less developed economies, priorities should be given to investments in technology and innovation, whereas financial markets are more suited to boost the development of the agricultural sector of developed economies. Originality/value: The authors conclude on the credit–output–productivity nexus and contribute to the literature in (at least) three ways. First, they assess how credit access, agricultural output and agricultural productivity are jointly determined. Second, they use a novel approach, which departs from most of the case studies based on single-country data. Third, they conclude on potential causality links to conclude on policy implications. [ABSTRACT FROM AUTHOR]

AbstractWe propose a novel bootstrap procedure for conducting inference for factor model-based average treatment effects estimators. Our method overcomes bias inherent to existing bootstrap procedures and substantially improves upon existing large sample normal inference theory in small sample settings. The finite sample improvements arising from the use of our proposed procedure are illustrated via a set of Monte Carlo simulations, and formal justification for the procedure is outlined. [ABSTRACT FROM AUTHOR]

AbstractThis study aims to investigate how Foreign direct investment (FDI) and trade openness influenced economic growth in BRICS countries from 1990 to 2022, using the Pooled Mean Group Autoregressive Distributed Lag (PMG-ARDL) and System Generalized Method of Moments (System-GMM) methods. Our findings show that these two variables boost economic growth by 0.172, 0.021, 0.291, and 0.072%, respectively. Additionally, the results indicate that BRICS countries have demonstrated greater resilience in terms of FDI and trade before and after the COVID-19 pandemic and the Russia-Ukraine war, underscoring the effectiveness of their investment and trade policies in maintaining economic growth amidst global disruptions. [ABSTRACT FROM AUTHOR]

Terrorism globally yields severe consequences for individuals and societies, potentially driving migration within and across borders. Yet, empirical evidence on its causal impact remains limited. The contribution of our paper is twofold. First, we construct various indicators of terrorist activity at a fine level of spatial and temporal granularity, which allow to accurately identify individuals’ exposure to terrorist threat. Second, we use these geo-localised indicators to empirically analyse the role of terrorist attacks in shaping internal and international migration intentions for 133 countries between 2007 and 2015. Our results indicate that terrorist attacks spur both internal and international migration intentions, though the effect is stronger for the latter. The effect on international migration intentions is linked to the intensity of attacks, rather than their frequency. Furthermore, the impact varies based on individual and country characteristics. [ABSTRACT FROM AUTHOR]

This study investigates the impact of oil price fluctuations on trade, including the exports and imports of goods and services, fuel exports and fuel imports. For this purpose, we employed a Pooled Mean Group estimator on the autoregressive distributed lag (PMG–ARDL) model. This approach helps investigate the short-run and long-run effects of oil price changes on trade indicators considering the difference of convergence path across countries while handling problems of endogeneity. This study examines a strongly balanced panel dataset of 34 OECD countries over the 26 years from 1995 to 2020. Overall, the findings indicate that rising oil prices have a positive and significant impact on all trade indicators. The results are consistent with the immediate and persistent influence of oil price fluctuations on trade. Nevertheless, the effects of other explanatory variables on trade vary across different trade indicators and in the short and long runs. From a policy perspective, it is vital to comprehend the appropriate policy responses to oil price changes to achieve the expected trade outcomes. [ABSTRACT FROM AUTHOR]

We propose a twofold adjustment for Event Studies considering spatiotemporal data in a multivariate time series framework where the data are characterized by spatial and temporal dependence. The first adjustment consists of modeling the spatiotemporal dynamics of the data by implementing several geostatistical models capable of handling both spatial and temporal components, as well as estimating the relationship between the response variable and a set of exogenous factors. With the second adjustment, we propose to use cross-sectional-adjusted test statistics directly accounting for spatial cross-correlation. The proposed methods are applied to the case of NO 2 concentrations observed in Northern Italy during the first wave of the COVID-19 pandemic. The key findings are as follows. First, all the considered geostatistical models estimate larger reductions in the major metropolitan and congested areas, while smaller reductions are estimated in rural plains and in the mountains. Second, the models are nearly equivalent in terms of fitting and are capable of identifying the true event window. Third, by using spatiotemporal models we ensure the residuals are uncorrelated across space and time, thus allowing Event Studies test statistics to provide reliable and realistic estimates. Fourth, as expected, all test statistics show significant reductions in NO 2 concentrations starting from the first few days of lockdown. Supplementary materials accompanying this paper appear online. [ABSTRACT FROM AUTHOR]

Purpose: This study aims to analyse the intellectual property rights (INPR), foreign direct investment (FDI) inflows and technological exports of 32 developing and developed countries for the period of 2006–2020. Design/methodology/approach: Diagnostic tests were used to confirm the panel least squares, fixed effect, random effect, feasible general least squares, dynamic ordinary least squares and fully modified ordinary least squares estimator results as well as to increase the robustness. Findings: According to the findings for the developing countries, trademark, patent and industrial design applications, each had a significant positive long-run effect on FDI inflows. In addition, there was a significant positive long-run relationship between patent applications and medium- and high-technology exports. Meanwhile, trademark and industrial design applications had a significant negative long-term effect on medium- and high-technology exports. In developed countries, patent and industrial design applications each have a significant negative long-term on medium- and high-technology exports. Furthermore, patent and trademark applications each had a significant negative long-run effect on FDI inflows. Originality/value: This study contributes significantly to the focus that host countries evaluate the technology gaps between domestic and foreign investors at different industry levels to select the best INPR rules and innovation process by increasing international cooperation. Furthermore, the host countries should follow the structure–conduct–performance paradigm based on analysis of the market structure, strategic firms and industrial dynamics systems. [ABSTRACT FROM AUTHOR]

In our study spanning 2010–2022 across 50 African economies, we investigated the effects of industrialization, labor force participation, and electrification on Africa’s productive capacity. We also examined how electrification moderates the effect of industrialization and labor force participation on productive capacity. We adopted the pooled OLS, the fixed effect estimator, and the dynamic system GMM estimation technique for our analysis. Our findings indicate industrialization, labor force participation, and electrification as potent channels for enhancing Africa's productive capacity. In tandem with Africa’s reality, we find that electrification isn’t moderating the positive impact of industrialization and labor force participation on productivity. Our findings also revealed human capital development, government health expenditure, and institutional quality as pivotal drivers of productive capacity in Africa, while factors like global economic policy uncertainty and natural resource endowment exhibit predominantly negative roles. These results underscore the need for African policymakers and leaders to foster an enabling environment that facilitates industrialization, increased labor force participation, and improved electricity access to promote economic performance and productivity. [ABSTRACT FROM AUTHOR]

Purpose: The aim is to study the impact of schooling on between-groups wage inequality beyond the lens of the standard approach in the literature. Design/methodology/approach: Simple econometric theory is used to make the main point of the paper. Supporting empirical evidence is also presented. Findings: Disregarding the persistence of current earnings implies a bias in the estimation of the wage return to schooling both at labour-market entry and in the rest of the working life. Research limitations/implications: The use of current earnings as a dependent variable in wage-schooling models may be problematic and requires specific handling. Social implications: The impact of schooling on the between-groups dimension of wage inequality may be different than previously thought. Originality/value: The paper is the first to show that, when current earnings are used as a dependent variable, the identification of a wage-schooling model with the standard (time-invariant external instrument-variable) approach may lead to misleading conclusions. [ABSTRACT FROM AUTHOR]

Recent scholarly articles consistently show that economic complexity promotes economic development. However, upon further examination of the literature, it becomes evident that macroeconomic determinants of economic complexity are not fully investigated, particularly in Africa. This study addressed this gap in the literature by investigating the impact of international tourism arrivals, infrastructural development, and trade openness on economic complexity in Africa. The study utilized the dynamic system GMM and panel Fixed Effects estimators for 34 African economies from 2010 to 2021. The results indicated that international tourism arrival and trade openness have beneficial effects on economic complexity in Africa, while the effects of infrastructural development remained mainly negative. Additionally, we established that human capital development and foreign direct investment inflow are potent channels for promoting economic complexity on the continent. We highlighted the policy implications of these findings. [ABSTRACT FROM AUTHOR]

The staggered enactment of special economic zones (SEZ) laws in the last three decades provides us with a unique opportunity to identify the causal impact of place-based policies on structural change. Using difference-in-differences and event studies, we provide new evidence that SEZs have a causal impact on structural change and industrialization. We find that adopting an SEZ policy increased the GDP share of industry and decreased the shares of the agriculture and service sectors. We disentangle these effects by examining the heterogeneities by income groups and geographic regions. We find that SEZ policies have been positive and significant for industrial growth in Asia and Latin America, while having no significant effect for African countries. Overall, this study represents one of the first efforts to identify the causal impact of SEZs using a large panel dataset of more than 126 countries for 1995–2018. [ABSTRACT FROM AUTHOR]

This paper investigates the long-run and short-run relationship between trade openness and inflation for ECOWAS countries for the period 1970–2020. Using alternative openness measures and estimation methods, it was found that there is a significant positive long-run relationship between trade openness and inflation for ECOWAS countries. The implication of this result is that, if ECOWAS countries continue to import consumption products outside the region rather than capital goods that can increase domestic production, it will be very difficult for member countries to meet the convergence criteria, specifically low inflation required for the proposed monetary unification. In the short run, the results show that there is a negative relationship between trade openness and inflation for ECOWAS countries. This result is specific to a determined period and as the economy gets more open, it becomes more exposed to a higher rate of inflation. Therefore, to meet low inflation criteria, member countries should take it as a matter of urgency to fully implement the ECOWAS trade liberalization scheme to improve intra-regional trade. This would reduce excessive dependence on external imports which makes ECOWAS countries vulnerable to international price volatility, currency depreciation and a high rate of inflation. [ABSTRACT FROM AUTHOR]

Purpose: Non-performing loans (NPLs) may determine an overall weakness of the banking system within a country. The purpose of the present study is to analyze the impact of government failures on NPLs in Asian countries in the time span 2000–2020. The variables employed as proxies of government failures are public debt as % of gross domestic product (GDP) and a government ineffectiveness index proposed by the World Bank. Design/methodology/approach: The econometric approach employed is a panel generalised time series (GLS) model with heteroskedasticity and autocorrelation specific to each panel. Findings: The results confirm that public debt as % of GDP and governmental ineffectiveness impacted significantly on NPLs for Asian countries in the observed period. Originality/value: The literature offers similar results only for some individual Asian countries, while a wider analysis is lacking for Asian macroareas. The present paper considers 31 Asian countries, and supports the idea that a healthy financial sector is correlated to institutional quality and political regime. Hence, policy makers are advised to monitor governance indicators to reduce NPLs. [ABSTRACT FROM AUTHOR]

The use of recycled material is a key building block for the circular economy. In this study, we explore the impact of recycling laws in Japan on the use of recycled materials in the production process of intermediate plastics. Using a difference-in-differences approach, we investigate whether the input share of recycled plastics in intermediate plastic products increased after the Container and Packaging Recycling Law (CPR Law) was enforced in 1997 in Japan. Results indicate that the input share of recycled plastics increased by 1 percentage point after the law's implementation. Meanwhile, the input share of virgin plastic materials, such as polyethylene, polypropylene, and vinyl chloride, per plastic product decreased by 3 percentage points on average. These results suggest that the CPR law helped shift inputs from virgin plastics to recycled plastic materials even though the impact size has been small. To further encourage the use of recycled plastic materials, policy interventions should directly incentivize producers to increase the use of recycled plastics. [ABSTRACT FROM AUTHOR]

The COVID-19 epidemic has raised major issues with regard to modelling and forecasting outcomes such as cases, deaths and hospitalisations. In particular, the forecasting of area-specific counts of infectious disease poses problems when counts are changing rapidly and there are infection hotspots, as in epidemic situations. Such forecasts are of central importance for prioritizing interventions or making severity designations for different areas. In this paper, we consider different specifications of autoregressive dependence in incidence counts as these may considerably impact on adaptivity in epidemic situations. In particular, we introduce parameters to allow temporal adaptivity in autoregressive dependence. A case study considers COVID-19 data for 144 English local authorities during the UK epidemic second wave in late 2020 and early 2021, which demonstrate geographical clustering in new cases—linked to the then emergent alpha variant. The model allows for both spatial and time variation in autoregressive effects. We assess sensitivity in short-term predictions and fit to specification (spatial vs space-time autoregression, linear vs log-linear, and form of space decay), and show improved one-step ahead and in-sample prediction using space-time autoregression including temporal adaptivity. [ABSTRACT FROM AUTHOR]

In response to the rapidly spreading COVID-19 pandemic, governments resorted to containment and closure measures to reduce population mobility and ensure social distancing. Initially, India's state governments enacted varying social-distancing policies until the Central government overrode states to impose a nationwide lockdown on 24th March. This paper examines the relative impact of state- and central-level social-distancing policies on changes in mobility, comparing the periods before and after the national lockdown. A district-level panel dataset is formed, compiling data on social-distancing policies and changes in population mobility patterns. Panel regressions reveal that the incremental effect of each social-distancing policy varied across states in the pre-24th March period. The national lockdown led to much larger, though varying, reductions in mobility across all states. Overall, states which were able to achieve higher compliance in terms of reducing mobility in the pre-lockdown phase performed better in the national lockdown. [ABSTRACT FROM AUTHOR]

We study the effect of religious constraints on individual’s labor supply decisions in the context of Ramadan, one of the central pillars of Islam, consisting of an entire lunar month of fasting from sunrise to sunset. Using household panel data from Malawi for the years 2010, 2013, and 2016, we find that females reallocate their time, from their jobs to household work. For males, we do not find such reallocation of hours, as they increase both, their hours worked at their jobs but also in the household. As a robustness check to our results, we use household data from Bangladesh to support the estimates on the extensive margins, where we do not find any effect on labor force both for females and males or the likelihood of working during Ramadan. These findings show that we need to go beyond general beliefs that labor supply goes down, but individuals keep working at home or more hours overall, when religious constrains appear. [ABSTRACT FROM AUTHOR]

Background: The COVID-19 pandemic has highlighted the need for the betterment of health status, while also considering health expenditure, energy, and environmental issues. This paper examines the nexus between health status and health expenditure (both public and private), energy consumption and environmental pollution in the SAARC-BIMSTEC region.Methods: We utilized the panel autoregressive distributed lag (ARDL) model, the heterogeneous panel causality test, the cross sectional dependence test, the cointegration test and the Pesaran cross sectional dependent (CADF) unit root test for obtaining estimated results from data over 16 years (2002-2017).Results: Our results authorize the cointegration among the variables used, where the coefficients of energy consumption, public and private health expenditures, and economic growth are 0.027, 0.014, 0.030, and 0.029, respectively, and indicating positive and statistically significant effects. The coefficient of environmental pollution is - 0.085, implying significant negative effect on the health status of these regions in the long-run. However, no panel wise significant impact is found in the short-run. Bidirectional and unidirectional causal links between the studied variables and the health status are also identified..Conclusions: The improved health status in the SAARC-BIMSTEC region needs to be protected by articulating the effective policies. The attained results are theoretically and empirically consistent, and have important policy implications in the health sector. [ABSTRACT FROM AUTHOR]

Use of multiplicative interaction of explanatory variables has been a standard practice in the regression modeling literature, and estimation of the parameters of such a model in the case of spatial autoregressive (SAR) or spatial Durbin (SDM) models can be accomplished using existing software for spatial regression estimation. However, use of the conventional scalar summary estimates of direct and indirect effects reflecting the own- and other-region impacts on the dependent variable associated with changes in the explanatory variables will not produce valid inferences. We discuss the issues that arise and introduce new methods for interpretation of own- and other-region impacts based on estimates from this type of model. [ABSTRACT FROM AUTHOR]

In this paper we develop a new composite indicator, named Social Catalyst, able to account for the complex and multifaceted nature of the social capital in a unitary measure. We use our indicator, as well as its components, to explore the relation between social capital and electoral participation in the parliamentary elections in Italy from 1994 to 2008, addressing the potential endogeneity bias. Our findings show that (i) the Social Catalyst positively and significantly affects voter turnout in both Chambers; (ii) among the different dimensions of social capital, social norms and associational networks play a prominent role in the Italian regional context. [ABSTRACT FROM AUTHOR]

This study models local and cross-city transmissions of the novel coronavirus in China between January 19 and February 29, 2020. We examine the role of various socioeconomic mediating factors, including public health measures that encourage social distancing in local communities. Weather characteristics 2 weeks prior are used as instrumental variables for causal inference. Stringent quarantines, city lockdowns, and local public health measures imposed in late January significantly decreased the virus transmission rate. The virus spread was contained by the middle of February. Population outflow from the outbreak source region posed a higher risk to the destination regions than other factors, including geographic proximity and similarity in economic conditions. We quantify the effects of different public health measures in reducing the number of infections through counterfactual analyses. Over 1.4 million infections and 56,000 deaths may have been avoided as a result of the national and provincial public health measures imposed in late January in China. [ABSTRACT FROM AUTHOR]

We analyze the spatio-temporal agglomeration dynamics that occurred in the Italian manufacturing industry during the recent period of the Great Recession. To study this phenomenon, we employ three different statistical methods—namely, Ellison and Glaeser's index of industrial geographic concentration, the spatial K-function, and the space–time K-function—, and rely on a large sample of geo-referenced, single-plant manufacturing firms observed over the period 2007–2012. First, we demonstrate that different statistical techniques can lead to (very) different results. Second, we find that most Italian manufacturing sectors experienced spatial dispersion processes during the period of the Great Recession. Finally, we show that space–time dispersion processes occurred at small spatial distances and short time horizon, although we do not detect statistically significant space–time interactions. [ABSTRACT FROM AUTHOR]

This paper revisits the theory of asymptotic behaviour of the well-known Gaussian Quasi-Maximum Likelihood estimator of parameters in mixed regressive, high-order autoregressive spatial models. We generalise the approach previously published in the econometric literature by weakening the assumptions imposed on the spatial weight matrix. This allows consideration of interaction patterns with a potentially larger degree of spatial dependence. Moreover, we broaden the class of admissible distributions of model residuals. As an example application of our new asymptotic analysis we also consider the large sample behaviour of a general group effects design. [ABSTRACT FROM AUTHOR]

The aim of this paper is to explain the determinants of longevity in 20 European Union countries for which comparable data are available for the period 1990–2016. We use a health equation to explain life expectancy at age 65 for total population considering socioeconomic factors, population structure, health resources, lifestyles and environment as the main determinants of health status. Panel estimation techniques are implemented to estimate the health equation with lagged explanatory variables to attenuate the endogeneity problems of regressors. Our evidence shows that per capita income, education and pharmaceutical expenditures positively affect life expectancy at the age of 65. As expected, risky lifestyles and air pollution have a significant negative impact on health. The interaction between population age structure and pharmaceutical expenditures proves also to be important for explaining longevity. Our evidence reinforces the idea that investing in education and health care provision is the way to achieve healthier longevity allowing a more active participation of the elderly in society. [ABSTRACT FROM AUTHOR]

This paper studies the impact of renewables on nuclear energy consumption in 15 OECD countries over the period 1991–2015. We find that the share of renewables (in total electricity production) has negative long-run effects on both nuclear energy consumption per capita and the share of nuclear energy (in total electricity production) while controlling for real GDP per capita, the proportion of carbon emissions from electricity production, and energy dependency. By taking proper account of both cross-section dependence and heterogeneity in the error-correction models, we find that a one percentage point increase in the share of renewables is associated with a 1.8% decrease in nuclear energy consumption per capita and a 2.7% decrease in the share of nuclear energy. Two main implications emerge. First, our results indicate a suppressive effect of renewables on nuclear energy in electric power generation, raising the possibility of restraining installed nuclear capacity through sustained penetration of renewables in OECD countries. Second, our results suggest the limited ability to replace nuclear energy with renewables in electric power generation. As a consequence, raising the share of renewables by rapidly deploying renewable energy technologies on a massive scale may not lead to the intended outcome of greatly reducing the dependence on nuclear energy in OECD countries. [ABSTRACT FROM AUTHOR]

We study an airport cost function with a four-random components stochastic frontier model that split the inefficiency in two parts: (1) persistent (long-run) and (2) temporary (short-run). We analyze as determinant of both inefficiency types several exogenous factors such as the airport ownership and LCCs share. We apply the model to the Italian airport system during the period 2010–15. We find that (1) average total cost inefficiency is 14%, and that a it is mainly due to temporary inefficiency, (2) that work load units have the largest cost–output elasticity (+0.31%), (3) that price of airport services has the largest cost-input elasticity (+0.50%) while labor has a +0.41% cost elasticity and capital only a +0.09% cost elasticity. There is also evidence of economies of scale. Moreover we find that LCCs reduce both types of inefficiency and that private airports are more cost efficient than public ones. These findings have interesting managerial (e.g., strictly monitoring service costs, expand LCCs flights) and policy (e.g., provide incentive to reduce temporary inefficiency, push airport privatization) implications. [ABSTRACT FROM AUTHOR]

A strategy for MCMC estimation of a family of models involving multiple simultaneous dependence parameters is set forth that is capable of producing rapid estimates for problems involving a large number of observations. Simultaneous dependence parameters arise when dependence exists between dependent variable observations, with spatial and cross-sectional dependence being specific examples. The approach taken is to express the joint conditional distribution of the dependence parameters as a quadratic form, where the dependence parameters are outer vectors of the quadratic form and the inner matrix expressions of the quadratic form involve only sample data that allow these to be pre-calculated. During MCMC estimation, multiple evaluations of the joint conditional distribution of the dependence parameters can be carried out rapidly, allowing a block-sampling scheme. Block sampling of the dependence parameters is useful for imposing stability restrictions that arise for these parameters. In addition, a Taylor series approximation to the log-determinant expression that arises in the joint conditional distribution for the dependence parameters can be used to rapidly evaluate this term. The joint conditional distribution for the dependence parameters is obtained by analytically integrating out other model parameters, allowing Monte Carlo integration of the log-marginal likelihood, which can be used for model comparison. Timing results are discussed along with Monte Carlo evidence regarding performance as well as applied illustrations involving large sample sizes. [ABSTRACT FROM AUTHOR]

This paper estimates the possible job-shortfall across Italian and EU regions using a time–space dynamic panel data model with a spatial moving average random effects structure of the disturbances. The paper is a companion paper to an earlier prediction exercise regarding Brexit. The model includes spatial and temporal dependencies involving the endogenous variable, leading to estimates based on a new dynamic spatial generalized moments estimator proposed by Baltagi et al. (Reg Sci Urban Econ, 2018. 10.1016/j.regsciurbeco.2018.04.013). The predictions use modified interregional trade estimates, assuming a reduction in trade flows between Italian and EU regions due to Italexit, to simulate the impact on employment across Italian regions and the wider EU. Comparisons are made between Italexit and Brexit. [ABSTRACT FROM AUTHOR]

Studies on the causes of income differences between the rich and the poor have received an extensive attention in the inequality empirics. While ethnic diversity has also been identified as one of the fundamental causes of income inequality, the role of institutions as a mediating factor in the ethnicity-inequality nexus has not received the scholarly attention it deserves. To this end, this study complements the existing literature by investigating the extent to which institutional framework corrects the noisy influence originating from the nexus between "ethnic diversity" and inequality in 26 sub-Saharan African countries for the period 1996–2015. The empirical evidence is based on pooled OLS, fixed effects and system GMM estimators. The main findings reveal that the mediating influences of institutional settings are defective, thus making it extremely difficult to modulate the noisy impacts of ethno-linguistic and religious heterogeneity on inequality. In addition, the negative influences orchestrated by ethno-linguistic and religious diversities on inequality fail to attenuate the impact of income disparity even when interacted with institutions. On the policy front, institutional reforms tailored toward economic, political and institutional governances should be targeted. [ABSTRACT FROM AUTHOR]

Malignant cutaneous melanoma (CM) is an extremely aggressive cancer characterized by a high level of metastatic activity and unfavorable prognosis due to a high incidence of relapses, as well as resistance to standard chemotherapy. Cutaneous melanoma accounts for 80% of deaths from malignant skin tumors. Nucleolin/C23 and nucleophosmin/B23, which constitute altogether ~70% of the nucleolus volume, are promising targets for molecular therapy of melanoma. These proteins perform many important functions in the cell, so disruption of the NCL and/or NPM gene structure and abnormal expression of the C23 and B23 proteins they encode, can lead to unlimited cell proliferation and progression of a tumor. Therefore, investigation of the structure and expression of these genes is a topical problem, which is important for understanding the mechanisms of CM carcinogenesis and for the development of new therapeutic approaches. This paper describes new NCL and NPM polymorphisms, as well as the levels of C23 and B23 expression in normal tissues, CM and mucosal melanoma. [ABSTRACT FROM AUTHOR]

This paper explores the evolution of wages in Spain using a stochastic frontier approach to estimate the wage frontiers of workers in Spain as a function of their human capital (education, experience and occupation), year and region. Once the wage frontier has been estimated an analysis is made of determinants (type of contract, economic cycle, gender and region), which may contribute to the workers having difficulties in achieving their maximum attainable potential salary. Given our specific interest in comparing wages before and after the crisis, we monitor the effect on hourly wage of changes in the level of Spanish Gross Domestic Product for the period 2004–2015. For this purpose, a panel data model (Greene in J Econom 126(2):269–303, 2005) is used to estimate the stochastic frontier. The data is obtained from the Spanish Living Conditions Survey. Coinciding with three waves (2004–2007, 2008–2011 and 2012–2015) of the SCLS, our database conveniently encompasses differing economic cycles for estimation. Results show that the difficulty of workers in achieving their potential wage is greater at the end of the post-crisis period than the pre-crisis period. Whilst serving to throw some light on the potential and real wages available to Spanish workers before and after the onset of the economic crisis, the paper also offers a brief glimpse of the effect on individual welfare and evidence of an increasing trend in inequality in the post-crisis period. [ABSTRACT FROM AUTHOR]

This article investigates the impact of tourism arrivals on a host country's output gap, defined as the difference between actual gross domestic product (GDP) and trend GDP. Using panel data methods that account for the potential endogeneity of tourism and the business cycle, and the possible nonstationarity of tourism arrivals, the results show that an increase in tourism arrivals significantly improves the output gap of the host country. Quantitatively, a 10% increase in arrivals in a given year improves the output gap in that year by approximately 0.2% of actual GDP. There is, however, no evidence of a lagged effect of tourism. Based on this empirical evidence, the article concludes that tourism is a mechanism through which the domestic economy can take advantage of positive shocks happening elsewhere in the world. In this sense, tourism can contribute to the synchronization of business cycles between destination and origin countries. [ABSTRACT FROM AUTHOR]

Switching to more energy-efficient appliances may lead to higher energy demand. This phenomenon is known as the rebound effect, which may lead to less power saving than expected prior to the switch. Using a combination of propensity score matching with the difference-in-differences method, we examine the change in household electricity consumption that may be caused by replacing air conditioners with more energy-efficient ones. Based on the results of our estimations, we calculate the magnitude of the rebound effect for summer and winter. We find that the rebound effect is positive in summer and winter, and the magnitude is higher in winter (7.87% versus almost 100%, respectively). The estimated rebound effect is small in summer, implying that the power-saving effect due to switching to energy-efficient air conditioners is sizable. On the other hand, no power-saving effect due to the switch was found in winter. [ABSTRACT FROM AUTHOR]

There is a long standing debate regarding the link between environmental and financial performance. To date, this debate results controversial findings, triggering for further research in different industries and countries. The specific study examines the relationship between environmental and financial performance in Greek manufacturing. Environmental performance is measured according to accounting data following the Eco Management and Auditing Scheme guidelines and ISO certification. Return on assets and return on sales ratios are used as indicators of financial performance. Empirical findings suggest that there seems to be a link between these dimensions irrespectively of the particular sector of activity. Contrary to similar studies a “virtuous circle” does not exist, as the avoidance of environmental improving investments is related to a better financial performance. On the other hand, firms with superior financial performance seem to achieve a better environmental performance. At the same time, firm specific and market characteristics significantly affect this relationship. These findings provide evidence that governmental and corporate actions are necessary in order to lead to a more sustainable corporate performance in the long run. [ABSTRACT FROM AUTHOR]

Background: Spain is a highly decentralized country. Recently the debate on decentralization has been reinforced by the claim of independence led by the authorities of the government of Catalonia. In addition, the statements of some politicians in favor and against advancing in the decentralization process have contributed to such a controversial debate. The allocation of public infrastructure is not out of this debate. Methodology: A non-linear equation is specified that allows to control for the traditional criteria for allocating public infrastructure: regional development, special infrastructure needs, efficiency or productivity of public capital stock and political effects. Results: The financial autonomy and transferred competences positively affect the accumulation of regional public infrastructure. However, their marginal contributions are decreasing. Conclusions: The empirical evidence could be suggesting thresholds in the decentralization process. The results related to financial autonomy are much stronger for the autonomous communities that are considered to be lagging behind in the fiscal decentralization. Moreover, the rest of the communities exhibit stronger results for the proxy that captures administrative decentralization. [ABSTRACT FROM AUTHOR]

We provide evidence of a cubic law of art prices that hints to a general pattern for the distribution of artistic talent. The persistence across heterogeneous markets from historical ones to contemporary art auctions of a power law in the distribution of the average price per artist suggests the possibility of a universal law for talent distribution. We explore scale-free networks of teacher–students to investigate the diffusion of talent over time. [ABSTRACT FROM AUTHOR]

Concern for relative income (or status in general) may have important implications for poverty and individual well-being. This paper examines the impact of relative economic position on individual’s level of well-being among poor communities in rural Ethiopia. The analysis uses a self-reported measure of overall life-evaluation as a measure of individual well-being. Despite the fact that well-being is multidimensional, the impact of non-money metric measures of relative economic position on individual well-being has not been given a lot of attention in the literature. In this study, relative economic position is measured using consumption data, asset index, and respondent’s own perception of relative wealth. The asset index captures the non-monetary dimensions of economic welfare, including education, physical assets, and social capital. We use data from the 2004 and 2009 waves of the Ethiopia Rural Household Survey and employ a multilevel modelling technique to account for individual and group level heterogeneity in our empirical analysis. We find no significant relationship between individual well-being and relative economic position measured with in consumption terms. In contrast, we do find a significant negative impact of relative position on individual well-being when we use asset indices and respondent’s own perception of relative wealth to measure relative economic position. Our findings suggest that when individuals compare themselves with others, they evaluate various aspects of their life, including their financial conditions, asset holdings, and social relations, which are hardly captured by consumption or income data in many poor countries. [ABSTRACT FROM AUTHOR]

In this paper local empirical likelihood-based inference for non-parametric varying coefficient panel data models with fixed effects is investigated. First, we show that the naive empirical likelihood ratio is asymptotically standard chi-squared when undersmoothing is employed. The ratio is self-scale invariant and the plug-in estimate of the limiting variance is not needed. Second, mean-corrected and residual-adjusted empirical likelihood ratios are proposed. The main interest of these techniques is that without undersmoothing, both also have standard chi-squared limit distributions. As a by product, we propose also two empirical maximum likelihood estimators of the varying coefficient models and their derivatives. We also obtain the asymptotic distribution of these estimators. Furthermore, a non parametric version of the Wilk’s theorem is derived. To show the feasibility of the technique and to analyse its small sample properties, using empirical likelihood-based inference we implement a Monte Carlo simulation exercise and we also illustrated the proposed technique in an empirical analysis about the production efficiency of the European Union’s companies. [ABSTRACT FROM AUTHOR]

The electricity demand in the industrial and service sectors in Taiwan is estimated using a panel dataset, covering 23 industries in the industrial and 9 in the service sectors from 1998 to 2015. Static and dynamic models are studied. Industries are reclassified based on the national accounts and the energy balance sheets. Estimated results indicate the price elasticity is − 0.14 in the short term and − 0.82 in the long term, while the income elasticity is 0.08 in the short term and 0.47 in the long term. The influence of cooling degree days was positive, and substitution effect of electricity with respect to petroleum was proven. In addition, the scenario analysis reveals the gap between the current situation and the policy target of electrical efficiency. This gap can be bridged by economic development and adjustment of industrial structure if Taiwan chooses to stick with low electricity prices. [ABSTRACT FROM AUTHOR]

This paper aims to quantify the long-term effects of alternative traffic punishments, ranging from demerit point assignment to conditional suspension of driving privileges. We employ unique longitudinal traffic offense data and exploit the introduction of a point-recording scheme in Denmark. We find that drivers who are assigned one or more demerit points reduce their frequency of traffic offenses and that these effects increase with the number of demerit points accumulated. However, these effects are short-lived, lasting only for the first two years post-reform and fading thereafter. In contrast, a stricter traffic punishment that conditionally suspends the driving license seems to have significant short-run and long-run effects. Our investigation into the types of offenses suggests that the deterrence effects are specific to the offense type for which they are imposed rather than generic improvements in driving behavior. These results imply that the effects of some of the existing traffic punishments are not only short-lived but also provide “specific deterrence”. [ABSTRACT FROM AUTHOR]

This paper examines convergence in environmental/carbon performance by constructing a measure based on production theory, where production processes explicitly result in the production of two outputs; a good output (GDP) and a bad output (CO2). We use the derived measure to test the β-convergence hypothesis for a panel of 94 countries. The results reveal evidence in support of β-convergence in environmental, or carbon performance for the entire (global) sample and each of the sub-samples. The evidence points to a slower convergence rate for the high-income countries relative to low-income countries. Moreover, the rate of convergence does not vary with capital in the global sample, but does vary in the high-income sample, possibly reflecting differences in abatement cost induced by differences in the stringency of environmental regulation and enforcement. Additionally, we find evidence of a negative relation between environmental performance and fossil fuel share, both at the global level as well as at the middle and high sub-samples, which tend to vary with capital intensity. As such, the results conform to the results from studies on the dynamics of per capita emissions. [ABSTRACT FROM AUTHOR]

Purpose The purpose of this paper is to study the impact of infrastructure and governance quality on the state-level productivity of Indian manufacturing for the period 2008–2011.Design/methodology/approach The authors first rank Indian states on their quality of governance using benefit-of-the-doubt approach. Next, to explain state-level differences in total factor productivity (TFP), the authors assess the impact of a composite index of governance on industrial TFP of Indian states using alternate techniques and controlling for endogeneity. The authors also decompose the composite effect of governance in terms of economic, social and financial infrastructure and other key governance dimensions, which serves as another robustness check for the findings.Findings The authors find that TFP varies significantly across states, so does governance quality. Further, results suggest that TFP of Indian industries is sensitive toward public service deliveries of economic, social and financial infrastructure. However, the authors fail to find any impact of law and order indicators, for instance, rate of violent crimes, police strength and judicial service quality on the manufacturing productivity. The estimated coefficient of governance index is robust across alternate methodologies.Originality/value To the authors’ knowledge, this is the first study to assess the impact of regional governance factors on the manufacturing sector of India. The study has identified governance factors that impact manufacturing productivity in the Indian states. Findings suggest that an effective way to eliminate regional growth inequality in India is to ensure that the lagging states initiate reforms to improve the quality of institutions, regulation and governance. Findings of the study contribute to the limited literature on governance at the regional/sub-national level. [ABSTRACT FROM AUTHOR]