Displaying from 1 to 10 of 277 available piece of news
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Studies about the impact of recent economic crises
Empirical economic analyses allow to feed these reasoning and models and validate or refute their predictions. In addition, the increase in the quantity and quality of economic data, together with the development of empirical methods that, for example, make it possible to advance in the identification of causal effects, means that applied economics exercises provide increasingly informative and reliable evidence for decision-making and assessment of policy interventions. In short, the contributions of the field of applied economics are today more important than ever due to the need to shed light on the real drivers and consequences of (socio)economic phenomena.
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Financing patterns of working capital and physical investment
Firms must access financial markets to surpass financial barriers limiting innovation activities. However, an overreliance on debt might moderate creativity and innovativeness. From a sample of European manufacturing firms, and applying a system of equations using GSEM, we derive a function to determine the thresholds of the optimal acquisition of working capital and physical investment. Contrasting this information with the descriptive data, firms tend to under-finance working capital, as future short-term needs are more challenging to identify when designing investment plans. Additionally, we find evidence for the heterogeneous financial needs of firms operating in high-tech as compared to low-tech sectors, as well as other differences related to firm age.
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Unraveling the structural sources of oil production and their impact on CO2 emissions
This study is the first to present an explicit view of the structural determinants of oil production across the short-, medium-, and long-term. The analysis relies on a structural vector autoregressive model utilizing a purely agnostic and ICA-based identification approach. The results, obtained from impulse response functions, estimated oil supply and demand elasticities, the decomposition of forecast error variances, and the historical decomposition of oil production, all indicate that, over the past five decades, changes in crude oil demand have had only minor impacts on the actual level of oil production. Local projections of global CO2 emissions on annualized oil market shocks reveal that only supply and aggregate demand shocks have impacted on CO2 emissions, while oil-specific demand shocks did not exert any significant influence.
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The Constrained Equal Losses family of rules for claims problems
In this study, we introduce a family of rules for claims problems called the CEL-family. The family is defined by means of a parameter theta in [0,1] as a notion of solidarity and contribution. It contains the Constrained equal losses and the Constrained equal awards rules. We perform an axiomatic analysis considering the main properties in the literature, for the sake of comparison. We apply the family to the distribution of the European Regional Development Funds to study how the rules in the family treat regions with relatively smaller claims compared to regions with relatively larger claims.
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Spatial patterns of built structures co-determine nations’ level of resource demand
While it's known that the layout of cities affects their resource use, the role of settlement and infrastructure patterns in determining national-level material use hasn't been explored due to a lack of data. This study systematically examines a wide range of drivers influencing national per-capita material demand, considering both production- and consumption-based indicators. Alongside traditional indicators like GDP, the analysis introduces eight new indicators representing the extent and patterns of settlements and transport infrastructure in each country. Covering 123 countries with 91% of the world's population and 92% of global GDP, the study reveals that built structures significantly influence resource use. Material stock pattern indicators provide substantial additional insights beyond GDP and other usual indicators. The area of built-up land per capita stands out as a particularly strong predictor, suggesting it deserves attention in sustainability strategies.
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Quantifying the Covid-19 Shock in Cryptocurrencies
The COVID-19 pandemic had a profound impact on the global economy, and the cryptocurrency market was not immune to its effects. This study delves into the changes experienced by leading cryptocurrencies during this period, examining their volatility and correlation dynamics.
We analyzed daily volatility in price and volume for the top seven cryptocurrencies by means of the Multifractal Detrended Cross-Correlation (MF-DCCA). Our findings reveal a consistent multifractal behavior for these volatility pairs, indicating that their fluctuations exhibit a self-similar structure across different time scales.
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Dependence structure between NFT, DeFi and cryptocurrencies in turbulent times
This research delves into the interconnectivity among 18 different types of cryptocurrencies, including NFTs, DeFi tokens, gold-backed cryptocurrencies, and traditional cryptocurrencies. We also calculated the optimal hedging ratio for each pair of cryptocurrencies and assessed their effectiveness in hedging against market fluctuations.
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Resilience dynamics and their determinants: The transition to coronavirus pandemic recovery
This paper introduces a dynamic perspective on tourism resilience, focusing on the analysis of tourism demand in Spain during the summers of 2020 and 2021 in the context of the COVID-19 pandemic. The study employs regression and Lasso-type methods to highlight the role of past determinants in explaining tourism demand in Spanish provinces. The findings reveal that the previous specialization of the domestic market, density, and the type of product offered based on location significantly contribute to territorial differences in demand resilience. Notably, in 2021, there was evidence of adaptation to the new context. This research represents a paradigm shift from a static conception of resilience in tourism. The study contributes to theoretical understanding by introducing the concept of destination-specific resilience dynamics. The practical and social implications include providing valuable insights for tourist destinations to comprehend recovery stages after a shock and exploring consumer behavior in the post-shock period
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Proportional clearing mechanisms in financial systems
We address the problem of clearing mutual obligations among agents when a financial network collapses. To do so, we adopt an axiomatic approach and provide the first comprehensive characterization of the rules based on the principle of proportionality, covering the entire domain of financial systems. While a previous attempt by Csóka and Herings (2021) tackled this issue in a context where agents have strictly positive initial endowments, we show that their properties do not fully capture the set of proportional rules when extended to the full financial systems' domain. To overcome this limitation, we introduce new properties that emphasize the value of equity of the firms in the network. We show that a clearing mechanism satisfies compatibility, limited liability, absolute priority, equity continuity, and non-manipulability by clones if and only if each agent receives a payment proportional to the value of their claims. This characterization holds in the framework studied by Csóka and Herings (2021)
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Contribution of major economies to global GDp and product reallocation around the world
Economic globalization has led to production increasingly becoming concentrated in certain re- gions and countries of the world.
This article develops an accounting framework to provide the trends for the contribution of countries to global gross domestic production (GDP). In particular, the method transforms the multiregional input-output model to quantify the relative importance of individual economies to world GDP. The proposal uses a world input-output database that distinguishes between three main economic areas: China, the United States of America and the European Union.
