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Summary: We evaluate the informational content of news‐based sentiment indicators for forecasting gross domestic product (GDP) and other macroeconomic variables of the five major European economies. Our dataset includes over 27 million articles for 26 major newspapers in five different languages. The evidence indicates that these sentiment indicators are significant predictors to forecast macroeconomic variables and their predictive content is robust to controlling for other indicators available to forecasters in real time. [ABSTRACT FROM AUTHOR]

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The pandemic exposes policymakers to fundamental uncertainties about future economic scenarios. While policymakers have to act forcefully to mitigate the impact on the economy, these conditions call for policy strategies that are also robust to uncertainty. This article compares two concepts of robust strategies: robust control and robust satisficing. It argues that a robust satisficing strategy is preferred and shows that the crisis responses of governments and central banks in Europe share features of robust satisficing in several dimensions. [ABSTRACT FROM AUTHOR]

In this brief, the nanosatellite rendezvous and docking problem is tackled. It was never attempted for small spacecraft, as critical technologies, such as six-degree-of-freedom (DoF) micropropulsion systems, have only recently become available due to advances in MEMS. The typical level of noise in nanosatellites’ sensors and actuators combined with the dynamics uncertainties, low actuation capabilities, and reliability requirements makes the use of robust control appropriate. The system is described by a linearized rotation/translation, six DoFs, and coupled dynamics, including fuel sloshing. An H∞ controller is first designed, in which robust stability and performance are assessed using structured singular values. The controller robustness is then improved using μ-synthesis. Nonlinear Monte Carlo simulations for both controllers, including realistic sensors and actuators models, are provided allowing a thorough assessment of the complete guidance, navigation and control (GNC). The sought GNC schemes are shown to be robust to the modeled uncertainties and to satisfy the docking requirements. [ABSTRACT FROM AUTHOR]

This paper stresses the lack of attention paid to the geographical definitions of cities in LUTI models as one key detrimental aspect to transferring and generalising LUTI results. First, the argumentation develops from a meta-analysis of peer-reviewed publications about LUTI applications in European cities. We show that most authors do not assess findings against potential geographical biases. Second, theoretical simulations are conducted withUrbanSimapplied to a synthetic urban area. By varying the geographical limits of the system and population endowments, our simulations confirm that the absence of control on city delineation weakens the results. Finally, the paper suggests methodological guidelines to improve the comparability of LUTI applications and push forward their theoretical agenda. [ABSTRACT FROM PUBLISHER]

Discontinuity of air routes is a subject that has been analysed in various ways. For example, the complex network approach focuses on network robustness and resilience due to route interruptions during a relatively short period. Also seasonal interruptions of air routes are a well-documented phenomenon in the context of demand variability. However, only recently discussions emerge on the more permanent cessation of air routes, the route churn. Today, European low-cost carriers frequently apply route churn in their networks. To enable early route churn detection in these networks, a regression model is developed in which route characteristics explain the churning likelihood of individual routes. The results of the econometric analysis show that churn rates are higher during an economic downturn, within the Eastern European market, between the Eastern and the Mediterranean market and between primary airports. In addition, we find that distance and the number of seats offered have a significant negative effect on the churn likelihood. The results also show significant effects of market share, seasonality and route age on the chance of cessation. To conclude, the paper demonstrates substantial differences in churn behaviour amongst specific low-cost carriers. [ABSTRACT FROM AUTHOR]

In this paper we analyze the topological properties of the network of the Euro Area banking market network, with the primary aim of assessing the importance of a bank in the financial system with respect to ownership and control of other credit institutions. The network displays power law distributions in both binary and weighted degree metrics indicating a robust yet fragile structure and a direct link between an increase of control diversification and a rise in the market power. Therefore while in good time the network is seemingly robust, in bad times many banks can simultaneously go into distress. This behavior paves the way for Central bank’s actions. In particular we investigate whether the Single Supervisory Mechanism introduced by the European Central Banks and based on banks’ total asset is a good proxy to quantify their systemic importance. Results indicate that not all the financial institutions with high valued total assets are systemically important but only few of them. Moreover the network structure reveals that control is highly concentrated, with few important shareholders approximately controlling a separate subset of banks. [ABSTRACT FROM AUTHOR]

The effect of corruption on airport productive efficiency is analyzed using an unbalanced panel data of major European airports from 2003 to 2009. We first compute the residual (or net) variable factor productivity using the multilateral index number method and then apply robust cluster random effects model in order to evaluate the importance of corruption. We find strong evidence that corruption has negative impacts on airport operating efficiency; and the effects depend on the ownership form of the airport. The results suggest that airports under mixed public–private ownership with private majority achieve lower levels of efficiency when located in more corrupt countries. They even operate less efficiently than fully and/or majority government owned airports in high corruption environment. We control for economic regulation, competition level and other airports’ characteristics. Our empirical results survive several robustness checks including different control variables, three alternative corruption measures: International Country Risk Guide (ICRG) corruption index, Corruption Perception Index (CPI) and Control of Corruption Index (CCI). The empirical findings have important policy implications for management and ownership structuring of airports operating in countries that suffer from higher levels of corruption. [ABSTRACT FROM AUTHOR]