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In this paper sectoral production functions are estimated with a two digit disaggregation for eight European countries corresponding to the period 1978-1992, distinguishing between internal economies of scale and intersectoral external effects. In order to avoid the possibility that the regressions, carried out by way of panel data techniques, are spurious, the integration order of each variable has been identified using unit root. Similarly, the Hausman procedure has been applied to test the exogeneity of the variables and determine whether the most appropriate estimations should be SUR or three stage least squares. [ABSTRACT FROM AUTHOR]

The impact of trade and technology in the European case is assessed. A framework is developed which incorporates employment effects of (i) export expansion (ii) import competition and (iii) labour-saving productivity improvements. In this context, evidence is found for the hypothesis that international trade induces adjustments in technology. [ABSTRACT FROM AUTHOR]

In past research on the long-run behaviour of exchange rates the possibility of cointegration among spot rates has been rejected. This rejection is surprising as some exchange rates are bound by official agreements to comove over time. The European Monetary System (EMS) is an example of such an officially coordinating system. In this paper we extend past research by focusing on only EMS rates and use potentially more powerful cointegration tests to show that EMS rates are cointegrated. [ABSTRACT FROM AUTHOR]

This paper quantifies the contribution of exports to economic growth in Central and East European countries (CEECs) during transition. Two theoretical models are examined: the first is based on an aggregate production function which includes exports as an additional 'input'; while the second is based on a two-sector (exports and non-exports) model where exports provide positive externalities in non-export production. Each model is estimated with both fixed and random effects using panel data. Results show that the random effects model is preferred and that exports have a significant impact on economic growth. [ABSTRACT FROM AUTHOR]

This paper investigates the long run relationship of real interest rates within a number of economic blocs such as Asia–Pacific, Europe, North America using cointegration analysis and vector error correction models. [ABSTRACT FROM AUTHOR]

During recent years there has been a growth in the use of assisted reproductive techniques (ARTs) across Europe, America and Australia. This has resulted in debates about whether health insurance should cover this procedure. This study used the closed-ended willingness to pay (WTP) technique to establish the value the infertile place on in vitro fertilization treatment in Scotland. One approach to help inform this debate is to employ economic tools to assess the costs and benefits of the treatment. Costs can then be compared with benefits, and the public provision of the service encouraged or discouraged on the basis of these results. To date, economic evaluations which have attempted to inform the debate about the provision of ARTs have assumed that the only factor that is important is whether users leave the service with a child. One approach that should allow for all such attributes in the economic evaluation is the economic instrument of WTP. This technique is based on the premise that the maximum amount of money an individual is willing to pay for a commodity is an indicator of the value to him/her of that commodity. This paper uses the WTP technique to assess the benefits from ARTs. These benefits are then compared with the costs of providing the treatment. The aim is to show how the application of this specific tool can be of use to policy makers considering the public provision of ARTs.

This article analyses the evolution of the EU productivity between 1980 and 2003, both across regions and sectors. By making use of various techniques (cross-section, nonparametric and spatial approaches) it concludes that: (1) the regional and sectoral dispersion of productivity is quite high; (2) the gains experienced in aggregate productivity are due entirely to the sectors productivity growth effect; (3) there is a weak beta-convergence process at the aggregate and sectoral levels; (4) the accounting decomposition of the aggregate productivity convergence process reveals the sectoral productivity growth effect to be the only responsible factor for regional catching-up; (5) finally, there are clear signs of spatial dependence which, when properly addressed, increase the speed of convergence at the aggregate level. [ABSTRACT FROM AUTHOR]

The empirical relationship among fiscal contractions, permanent improvement in public finances and short-run economic performance is examined using a sample of 14 European countries over the last three decades. The actual experience of policy-making has taught that only the adjustments that relied heavily on primary expenditure cuts and were implemented over a relatively long time span were able to achieve a long lasting reduction of public liabilities. Indeed, during these consolidations, tax increase amounted to a small fraction of the total adjustment. Furthermore, though they unfolded over a longer period with respect to the unsuccessful ones, the overall budget cut was not larger. As regards the macroeconomic impact, successful episodes tended to be associated with improved economic performance. During the adjustment period and in the following two years, the economies experienced strong consumption and investment growth, reduced unemployment, better international competitiveness and falling interest rates. This empirical evidence is here interpreted via the theory known as expectation view of fiscal policy. [ABSTRACT FROM AUTHOR]

This study analyses the determinants of dispersion of economic issue mentions in European party manifestos. We examined three main economic domains (governmental control of the economy, free market capitalism and support for the welfare state) as consequences of globalization forces, economic conditions, partisanship and electoral turnout. Employing aggregate-level Comparative Manifesto Project (CMP) data from legislative elections in 15 European countries from 1970 to 2010, we confirm that parties hold a common view of the salience of economic control of the state as a consequence of globalization pressure and economic growth levels. Partisanship of the cabinets (regardless of the political orientation) counteracted issue salience concentration in the welfare domain. Government size favoured dispersion in the free market realm. Our results do not indicate clear homogenization of parties’ economic messages in elections over the last 40 years. [ABSTRACT FROM PUBLISHER]

This study aims to improve our understanding of overqualification by incorporating distinctions in employment status (i.e. self-employed workers, private employees and public employees) in the analysis of the incidence, effects, dynamics and routes out of overqualification. To this end, we apply discrete choice – ordered and nonordered – and count models to the data obtained from theEuropean Community Household Panelfor the EU-15. Our results indicate that the incidence of overqualification varies by employment status, where self-employed workers report the lowest occurrence. Furthermore, this analysis suggests that overqualification is a permanent phenomenon and demonstrates that successful pathways out of overqualification differ by employment status. The implications of these results for education and labour market policies are also discussed. [ABSTRACT FROM AUTHOR]

This article examines intra-industry information transfers in the European and Japanese electric industry in the wake of the Fukushima nuclear accident. For European conventional utilities, the downward price drift is relatively small and transient in nature. Yet, we find positive and lingering effects of the accident on the shares of alternative electric utilities. Japanese utilities were hit the hardest and the shock seems to be long-lasting. An interesting finding of this article is the abrupt increase (decrease) in the systematic risk of conventional (alternative) electric utilities following the event. In Europe, we could only document a decrease in the idiosyncratic risk of conventional utilities, pointing to enhanced return synchronicity in the conventional power industry. In turn, total risk seems to be stationary around the accident. In rebuttal, idiosyncratic and systematic risks (and consequently total risk) have substantially risen in Japan since the event. Finally, intercept values related to European utilities remained stable around the accident while Japanese utilities incurred a substantial decline in their daily average returns as captured by alpha shifts. [ABSTRACT FROM AUTHOR]

This article contributes to the literature on price convergence in Europe by investigating the existence of stochastic and deterministic convergence of car prices in the EU15 countries. We apply recently developed econometric techniques that allow for multiple structural breaks to an up-to-date dataset. We find considerable evidence of both types of convergence in our sample of countries and car models, therefore suggesting a tendency for relative prices to equalize over time. In addition, we find evidence regarding the importance in this convergence process of both legislative changes taking place in the years 1996 and 2002, and the implementation of Economic and Monetary Union (EMU). [ABSTRACT FROM PUBLISHER]

In this article we want to shed light on two aspects of income mobility: relative total income mobility using the estimator by Fields and Ok (1999) and equalization of long-run incomes measured by the index of Fields (2009). The cross country comparison shows a negative relationship between total relative mobility and long-run income equalization, this result is contrary to the intuition given by Shorrocks (1978a) who stated that higher relative mobility will cause higher equalization of incomes when the accounting period is extended. [ABSTRACT FROM PUBLISHER]

This study assesses the effect of USD-Euro parity on a small open economy where exports are predominantly denominated in Euros and imports are denominated in USD. Empirical evidence from Turkey suggests that a positive change in the USD value of the Euro appreciates the local currency, decreases inflation and increases output. [ABSTRACT FROM AUTHOR]

We present empirical evidence regarding unemployment dynamics for women and men in eight OECD countries. Unit-root tests are used to examine the unemployment dynamics of women and men. Failure to reject the unit-root hypothesis is consistent with unemployment hysteresis. Rejection of the unit-root hypothesis indicates that unemployment dynamics are best explained by the natural rate of unemployment or the structuralist view. We find evidence of gender differences in unemployment dynamics in Canada, Germany and the US, but not in other countries. While there are some differences in the extent of persistence across gender and across countries, the degree of persistence for both female and male unemployment rates is fairly low in all countries. Our results, therefore, contrast with substantial empirical evidence of high levels of unemployment persistence in European countries. [ABSTRACT FROM AUTHOR]

This article constructs a labour transition model combining the features of job loss and job creation in the formal sector of an economy. The theoretical model examines the impact of trade liberalization on net job transition from formal to informal sector. In the light of our model we establish certain pre-conditions based on simulations under which trade liberalization is accompanied by rising informal sector. The model outcome conforms to the empirical evidence of rising informality with openness which we find in 18 Central Eastern European and Former Soviet Union countries. [ABSTRACT FROM AUTHOR]