Displaying from 21 to 30 of 252 available piece of news
On the heterogeneity of the long-term leverage-growth relationship: A cross-country analysis of manufacturing firms
Despite a great deal of studies, the relationship between firm leverage and its impact on growth remains still unclear. We offer an analytical framework, which based on a comprehensive literature review and of related empirical reasoning, helps explaining the long-term leverage and firm growth nexus. Both the theoretical views and empirical evidence are mixed, and the lack of consensus may be the result of inconsistent estimation techniques and of the dual interpretation that firm leverage has.
Analysing debt from credit institutions to firms in France, Italy, and Spain, and observed from 2010 to 2016, we bring a selection framework to trial. The comparative perspective seeks the establishment of regularities, while the use of a dynamic quantile panel estimator unravels its heterogeneity.
Strong non-linearities are detected, but the selection framework finds no support. Indeed, only firms in the lowest-growing deciles of the growth distributions benefit consistently from leverage. On the contrary, the impact on the right part of the growth distribution is either non-significant or negative
The European Union's new vineyard planting authorization system came into force in 2016. This new system poses a challenge for EU ministries of agriculture, which must annually set the authorized areas for new plantings. In the case of Designations of Origin (DOs) and Protected Geographical Indications (PGIs), the challenge is, if anything, greater. On the one hand, variations in surface area must not restrict production in such a way as to generate price increases with negative repercussions on sales. On the other hand, increases in acreage can lead to overproduction and the consequent devaluation of the DO.
The so-called claims problem reflects a situation where the agents' claims cannot be totally honored when a resource must be distributed among them. The way of rationing this resource among the agents, taking into account their claims, is prescribed by a rule. In this context, we analyze how to distribute any increase of the endowment in terms of two general concepts: first, establishing that each agent should be guaranteed a minimum award, which is determined by a particular lower bound (respect of the lower bound); and, then, requiring that agents with equal guarantees, should be treated equally (equal treatment of equals).
It is noteworthy that the concern of ensuring some minimum individual rights has figured in a large number of contexts. Specifically, the Universal Basic Income is a classical issue that has attracted much attention in the social policy literature and the political agenda during the last two decades (Noguera 2010). Additionally, the establishment of a minimum wage in the labor market, the debate about ensuring a universal minimum health coverage in the U.S. Senate, the European Structural and Investment Funds, ensuring minimum quantities in heritage laws, fishing quotas (Iñarra and Prellezo 2008; Kampas 2015), or, the negotiations of
The voting mechanism is a highly important decision-making procedure used in very different kinds of situations, such as political decisions, jury trials, or the election of the Catholic Pope. It is noteworthy that, in this last situation, the agreement is met only when unanimity arises. This requirement reveals some interesting questions about the voters' behaviour. For instance, in conclaves with misaligned preferences, is it possible to agree on an alternative? If this is the case, which alternative will be implemented? Which voter will have to give up first? When will this occur?
The study of these questions involves a vast number of different contexts, such as the bargaining in legislatures, multilateral bargaining models, and situations with asymmetric information and incomplete information. Recently, it has been studied how agents reach an agreement through a sequential random ordering voting procedure with, potentially, an infinite number of stages. The result of this negotiation process shows that the most patient agent's preferred alternative is chosen in the first round.
Bankruptcy problems (O'Neill, 1982) deal with situations where an amount of a perfectly divisible resource should be distributed among a group of agents presenting conflicting claims, that is, the total amount to divide is not enough to fulfill all demands. These problems are solved by rules proposing an allocation vector that takes into consideration the specifics of the agents.
An important topic in economics is the study of rules that are immune to the strategic behavior of the agents by misrepresenting their characteristics. For the bankruptcy problem, O'Neill (1982) introduces non-manipulability (or strategy-proofness) as the combination of non-manipulability via merging and splitting.
Effectiveness and counter-cyclicality of fiscal consolidation under compliance regulation: The case of the Stability and Growth Pact
We examine the effect of the Stability and Growth Pact (SGP) on fiscal adjustments. Three alternative measures of budget cuts are considered: i) narratively identified fiscal adjustments whose main objective is to reduce the budget deficit, ii) the primary budget balance and iii) the structural budget balance. The database includes information from the period 1980-2014 for 17 economies, of which 10 fall under the SGPs' regulations. The SGP is analyzed with respect to its effectiveness, its cyclicality and the type of fiscal adjustments (tax increases versus spending cuts).
The results of the study indicate that the SGP has effectively promoted the budgetary consolidation measures identified through the narrative approach, while it had no overall impact on the primary balance and a smaller overall impact on the structural budget balance. However, the effectiveness of the SGP has varied considerably over time. All measures indicate that the SGP was particularly effective in the period after the introduction of the euro, except for the 2 years after the 2008 financial crisis. We find no evidence that fiscal policy has become more procyclical under the SGP.
Finally, the fiscal consolidation under the SGP favors spending cuts, whereas the application of tax hikes shows no sizeable differences as compared with the reference group
The contest-based subsidy-tax mechanisms may help policymakers achieving sustainable environmental investments, promoting cost-efficient ecological policy designs, properly pricing environmental emissions, making green budgets more effective, decoupling economic growth from the harmful emissions, and generating trade-offs between stabilizing inflation and improving the mix of sustainable environmental policies.
Two researchers from the Universitat Rovira i Virgili at the Dept. Economics/Eco-SOS have proposed two novel contest-based subsidy mechanisms and evaluates their effectiveness in terms of firms' environmental investments, profits, consumer and producer surplus, environmental damage and social welfare.
This study proposes a new measure of wage risk based on estimated probabilities to earn an hourly wage that is below some specific lower quantile of the wage distribution. Using the German SOEP as an information rich data base, we determine wage risks overall and for nine job categories during the period from 1992 until 2015. Our empirical results show that, firstly, the low-wage workers in Germany are clearly worse off after the Hartz reforms. Workers in Western Germany have experienced both a decline in low-wages and a rise of wage risk, while workers in Eastern Germany suffered from trends in wage risk only. Secondly, both in Western and Eastern Germany, the overall evidence hides important heterogeneity showing up at occupational levels. In Western Germany, the described utility losses have been particularly strong for Unskilled workers, Service & sales workers, Craftsmen and Operatives. In Eastern Germany, this holds for male and female Unskilled workers and Craftsmen and female Operatives, Clerks and Technicians.
This paper revisits the linkage between cryptocurrencies and public disclosed preferences, proxied by online searches. We show that cryptocurrencies are not related to a general uncertainty index as measured by the Google Trends data by Castelnuovo and Tran (2017). Instead, cryptocurrencies are linked to a Google Trends attention measure specific for this market.
The application for funding may be diverting researchers from doing research: The perverse effects of competitive research calls.
A researcher from the Universitat Rovira i Virgili at the Dept. Economics/Eco-SOS and a researcher from the Max Planck Society in Germany have analysed different ways of reducing inefficiency and the waste of resources associated with the application to research funding calls.