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on Microeconomic European Issues |
| By: | Natalia Bermúdez-Barrezueta; Bart Cockx; Gert Bijnens (-) |
| Abstract: | We evaluate the effectiveness of Belgium’s short-time work (STW) program during the Great Recession, a period when the country recorded the highest STW take-up rate in Europe. STW allows firms to reduce working hours in response to temporary shocks while avoiding layoffs, playing a key role in European labor market insurance systems. Using an instrumental variable strategy that exploits quasi-exogenous variation stemming from an institutional feature of the Belgian program, we estimate the causal effects of STW on employment and wages. We find that, while STW significantly reduces the volume of work per worker, it does not lead to statistically significant employment gains for the average treated firm. Importantly, positive employment effects are concentrated among small manufacturing firms, which are more likely to face binding liquidity constraints. These findings highlight the importance of targeting and screening in improving the cost-effectiveness of STW programs and minimizing deadweight losses. |
| Keywords: | Short-time work, employment, wages, unemployment insurance |
| JEL: | E24 J22 J23 J63 J65 |
| Date: | 2025–09 |
| URL: | https://d.repec.org/n?u=RePEc:rug:rugwps:25/1121 |
| By: | Ulrika Ahrsjš (Stockholm School of Economics); Costas Meghir (Cowles Foundation, Yale University); MŒrten Palme (Stockholm University); Marieke Schnabel (University College London) |
| Abstract: | We examine the intergenerational effect of education policy on crime. Using administrative data that links outcomes across generations with crime records, we show that the Swedish comprehensive school reform, gradually implemented between 1949 and 1962, reduced conviction rates for both the generation directly affected by the reform and their sons. The reduction in conviction rates occurred in several types of crime. Mediation analysis suggests that key channels include increased parental educational attainment and household income, as well as reduced criminal behavior among fathers. |
| Date: | 2025–08–23 |
| URL: | https://d.repec.org/n?u=RePEc:cwl:cwldpp:2356r2 |
| By: | Sona Badalyan |
| Abstract: | This paper exploits a unique norm-shifting setting—a German pension reform that equalized retirement ages across genders—to examine how old-age employment propagates through workplace networks. The reform raised women’s earliest claiming age from 60 to 63 for cohorts born in 1952 onward. Using the universe of workgroups from social security records, I compare women whose peers were just above or below the reform cutoff. I find that women are more likely to remain employed at older ages when their peers do, with stronger effects in the regions of former West Germany, with its traditional gender norms. Gender-neutral pension reforms thus amplify their impact through peer influence, fostering regional convergence in late-career employment patterns. |
| Keywords: | aging, gender, peer effects, old age employment, social norms |
| JEL: | D85 H55 J14 J16 J22 J26 Z13 |
| Date: | 2025–09 |
| URL: | https://d.repec.org/n?u=RePEc:cer:papers:wp800 |
| By: | Biagi Federico (European Commission - JRC); Sala Jacopo |
| Abstract: | This report investigates the evolving occupational outcomes among young cohorts in Europe from 1995 to 2020. Using data from the European Labour Force Survey (EU-LFS), we evaluate how the likelihood of being employed in a cognitive occupation and receiving a temporary job has changed over time for young workers with different levels of education. Results reveal diverging fortunes. On the one hand, the probability of obtaining cognitive jobs has remained steady for tertiary-educated workers, but it has declined significantly for young workers who have only attained upper secondary education, especially in Southern and Northern Europe. On the other hand, the likelihood of receiving a temporary contract has increased substantially for more recent cohorts of young workers in all European areas, particularly for those with only upper secondary education. These findings call for a reflection on the future of jobs that have a large cognitive component (and for which higher education is generally a necessary requirement), especially in light of the recent development of artificial intelligence. On the other hand, the increased use of temporary contracts among young workers, especially in some EU areas, raises concerns on the long-term sustainability of the socio-economic (and demographic) situation of the EU, considering that educational and parenting choices tend to be concentrated in the earlier stages of the life-cycle. |
| Date: | 2025–08 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc140850 |
| By: | Lennart Ziegler |
| Abstract: | This paper examines how caseworkers influence job finding rates and job quality. To rule out selection effects, I exploit that caseworkers are assigned based on the jobseekers’ month of birth in some offices of the Austrian public employment service. Combining administrative data on caseworkers and jobseekers, I compute value-added measures for multiple jobseeker outcomes. A one-standard-deviation increase in caseworker performance corresponds to six additional days of employment in the first year and two percent higher earnings. For older workers and workers of foreign nationality, I observe the largest differences in caseworker performance. Employment and earnings effects are positively correlated, suggesting that faster job finding does not come at the expense of job quality. Analyzing differences in caseworker strategies, I find that caseworkers who refer more vacancies to jobseekers achieve higher employment rates, and those who refer better-paying jobs also achieve higher earnings. In contrast, frequent use of training programs or benefit sanctions is associated with worse job search outcomes. |
| Keywords: | unemployment, caseworkers, job search assistance, vacancy referrals |
| JEL: | J64 J68 J31 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_12100 |
| By: | Elkerbout, Milan (Resources for the Future); Kopp, Raymond J. (Resources for the Future); Rennert, Kevin (Resources for the Future) |
| Abstract: | In a two recent publications, Carbon Border Adjustments: Design Elements, Options, and Policy Decisions and Foreign Pollution Fee Act: Design Elements, Options, and Policy Decisions, we provided an overview and comparison of current border adjustment mechanisms (BAMs). In the first publication we focused on the European Union’s Carbon Border Adjustment Mechanism (EU CBAM); the Fair, Affordable, Innovative, and Resilient Transition and Competition Act (FAIR Act), sponsored by Senator Chris Coons (D-DE); and the Clean Competition Act (CCA), by Senator Sheldon Whitehouse (D-RI). In the second publication we reviewed a new piece of proposed US Senate legislation, the Foreign Pollution Fee Act (FPFA), introduced by Senator Bill Cassidy (R-LA), Senator Lindsey Graham (R-SC), and Senator Roger Wicker (R-MS). In this report we provide more detail on the EU CBAM and compare it to the FPFA and the CCA, which was reintroduced on December 6, 2023. A great deal of the FPFA description used in this report is reproduced from our publication Foreign Pollution Fee Act: Design Elements, Options, and Policy Decisions. This report uses the design elements introduced in the previous publications to describe the policies reflected in each BAM. We have made every effort to be concise with respect to our descriptions of the design elements, but that has required us to abstract from a great deal of detail in each BAM. We hope this report will provide a roadmap that informs understanding of these mechanisms, but it should not be interpreted as a complete and comprehensive description and review. |
| Date: | 2023–12–06 |
| URL: | https://d.repec.org/n?u=RePEc:rff:report:rp-23-18 |
| By: | Carlos J. Gil-Hernández (Dipartimento di Statistica, Informatica, Applicazioni "G. Parenti", Universita' di Firenze); Alberto Palacios-Abad (Universidad Carlos III de Madrid); Jonas Radl (Universidad Carlos III de Madrid; WZB Berlin Social Science Center) |
| Abstract: | Despite its importance for status attainment and meritocracy, measuring effort remains elusive, often relying on indirect proxies or unreliable self-reports. This study examines how objective (cognitive effort, CogEff) and subjective (teacher-perceived effort, TpEff) measures of student effort contribute to educational inequality. We examine the predictive capacity of effort for educational performance and test the mediating and moderating roles of effort in the relationship between parental socioeconomic status (SES) and school grades. Drawing on original, representative "lab-in-the-field" data from 1, 270 fifth-graders in Spain and Germany, who performed three different incentivized real-effort tasks engaging various executive functions, four key findings emerge. First, both CogEff and TpEff predict grade point average (GPA), with TpEff having a powerful effect, more predictive even than IQ or parental SES. Second, effort—especially TpEff—is unequally distributed by parental SES and explains a substantial share of the SES-based GPA gap, on par with IQ. Third, roughly half of the GPA gap by social origin remains unexplained even after accounting for academic merit (IQ + effort). Fourth, while grading returns to CogEff are independent of SES, high-SES students are significantly less penalized for low TpEff than low-SES peers. Overall, effort predicts academic success and shapes educational (in)equality. High-SES students show higher average effort and can afford to be perceived as lazy, while hardworking low-SES students can overcome disadvantage through greater returns to teacher-perceived effort. We discuss the findings' implications for student agency, educational inequality, and fair evaluations. |
| Keywords: | effort, socio-behavioral skills, inequality, grades, socioeconomic status, laboratory study |
| JEL: | I24 I21 C91 J24 D63 |
| Date: | 2025–09 |
| URL: | https://d.repec.org/n?u=RePEc:fir:econom:wp2025_09 |
| By: | Sarah Fritz; Lorenzo Incoronato; Catherine van der List |
| Abstract: | This paper documents substantial fiscal waste in the context of one the world’s largest regional development programs - the EU Cohesion Policy. We study Italy, and find that 20% of funding commitments are never paid out and funneled into unfinished or never-started projects. In our setting, this happens for reasons unrelated to fiscal constraints - municipalities appear to simply leave money on the table. Foregone spending is more prevalent in Southern regions, but there is also stark variation across municipalities within regions. We show that such under-utilization of available funds is strongly associated with limited administrative capacity of local governments. |
| Keywords: | foregone spending, state capacity, fiscal waste |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_12126 |
| By: | Rossmann, Felix; Greitens, Jan; Knoll, Lisa |
| Abstract: | Sustainable finance regulations and initiatives across Europe have predominantly targeted large corporations, while small and medium-sized enterprises (SMEs) are increasingly drawn into the framework, often facing challenges such as resource constraints and complex documentation requirements. To capture the dynamics of this field, a European survey conducted in 2025 with responses mainly from German and Austrian companies examined SME engagement with sustainable finance. The findings show a rising share of SMEs investing in sustainability in comparison to the preceding study in 2023, with internal funding as the dominant source. Where external financing is used, it is primarily activated on publicly supported bank loans, whereas capital markets remain largely irrelevant for SMEs. While a connection between sustainability data collection and sustainable investment exists, many SMEs invest without systematically collecting data. These results highlight the continued centrality of traditional banking relationships as the main external financing channel for SMEs, which could serve to enable and facilitate capital flows toward sustainability rather than prescribe or direct them. |
| Keywords: | Sustainable Finance, Small and Medium-sized Enterprises, Sustainability Investment, Sustainability Reporting, Bank Financing |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:cfswop:325834 |
| By: | Manuela Magalhâes (Universidad de Málaga); Jesús Rodríguez-López (Universidad Pablo de Olavide) |
| Abstract: | Spanish aggregate productivity was negatively correlated with the business cycle from 2000 to 2014, but this correlation later turned positive between 2015 and 2019. In this paper, we ask if this change is related to financial restrictions and firm creation and destruction in Spain. Using firm- level administrative data, we reach the following conclusions. First, during the 2000–07 expansion, low-productivity firms with access to financial resources were able to continue operating; in turn, this led to a crowding-out of financial resources, and forced high-productivity but financially vulnerable firms to close. We find that on average exiting firms were significantly larger and more productive than entering firms, a situation that entailed productivity losses in this period. Second, following the tightening of credit conditions after 2008, we find a more efficient selection at both exit and entry margins: exiting firms were less productive than entering firms. Both findings help explain, at least in part, the change in the productivity-GDP correlation. Finally, in a counterfactual exercise we quantify the effects of type-I selection errors, i.e., the closure of productive but financially vulnerable firms: had market selection not presented type-I errors, relative total factor productivity at the exit margin would have been 3% to 6.5% higher, while gains in relative labor productivity would have ranged between 27% and 46%. |
| Keywords: | Firm exit and entry, business cycle, cleansing effects, miss-selection, firm survival. |
| JEL: | E23 E32 E44 G32 L11 L25 L60 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:pab:wpaper:25.02 |
| By: | Maria De Paola; Roberto Nisticò; Vincenzo Scoppa |
| Abstract: | This paper examines the impact of co-workers’ fertility on individual fertility decisions. Using matched employer-employee data from Italian social security records (2016–2020), we estimate how fertility among co-workers of similar age and occupation affects the individual likelihood of having a child. We exploit variation introduced by the 2015 Jobs Act, which reduced fertility among workers hired under weaker employment protection. Focusing on workers hired before the reform and using the share of colleagues hired after the reform as an instrument for peer fertility, we find that a one-percentage-point increase in peer fertility raises individual fertility by 0.4 percentage points (a 10% increase). Heterogeneity analysis suggests that while social influence and social norms are key mechanisms, information sharing and career concerns, particularly among women, tend to moderate the response. Our findings highlight how changes in employment protection may have unintended fertility spillovers through workplace social interactions. |
| Keywords: | career concerns, EPL, fertility, social learning, social norms, workplace |
| JEL: | C3 J13 J65 J41 M51 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_12131 |
| By: | Kansikas, Carolina (University of Warwick); Bagues, Manuel (University of Warwick) |
| Abstract: | We study whether term limits can accelerate women’s access to top political positions by analyzing two reforms in Italian local elections that extended mayoral term limits from two to three five-year terms. In a period marked by rapid growth in women’s political participation, the first reform affected municipalities with fewer than 3, 000 inhabitants in 2014, and the second those below 5, 000 in 2022. Using a difference-in-discontinuities design, we find that longer term limits restrict opportunities for early-career politicians, with substantial effects for female representation: the share of female mayors would be 8 percentage points higher without the term limit extensions. The impact is larger in municipalities with more women in lower political positions and where gender quotas for council members are present, suggesting that entry-level quotas can be more effective when paired with policies promoting turnover in top positions. |
| Keywords: | Term limits ; female political representation ; Italian local elections JEL Codes: J16 ; J18 ; J48 ; D72 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:wrk:warwec:1573 |
| By: | Ha Luong; Judit Vall-Castello; Lídia Farré |
| Abstract: | This paper investigates the underfunding of female-dominated cancers in Europe and explores the mechanisms underlying the unequal distribution of research grants. Using a novel owned- collected dataset of projects granted by the European Commission under three framework programmes, we show that male-dominated cancers receive 3.7% more funding than female- dominated cancers. Our analysis suggests that this difference is likely driven by the over- representation of male researchers in cancer research and the higher proportion of male members on evaluation panels, which favors funding towards male-dominated cancer projects. We find no suggestive evidence that the funding gap is explained by gender gaps in receiving grants, superior research outputs, or greater disease burden. By uncovering the underfunded situation of female-dominated cancers, this study contributes to our understanding of the allocation of research funding across diseases and its implications for health equity. |
| Keywords: | cancer research, funding, gender |
| JEL: | I10 I14 I19 |
| Date: | 2025–09 |
| URL: | https://d.repec.org/n?u=RePEc:bge:wpaper:1509 |
| By: | Koetter, Michael; Ludolph, Melina; Schub, Hendrik; Wöbbeking, Fabian |
| Abstract: | We exploit an information shock related to the German Supply Chain Due Diligence Act and use detailed customs data to analyze how smaller, non-listed firms respond when expecting accountability for externalities beyond their organizational boundaries. Product-level regressions reveal a substantial reduction in imports from high ESG-risk production sectors. Adjustments occur mainly at the extensive margin, indicating that firms cut ties with high-risk suppliers. The product-level results translate into meaningful changes in overall international procurement for firms with Big Four auditors. Our findings suggest potential limits to mandates requiring firms to integrate broad sustainability considerations into operational decisions. |
| Keywords: | due diligence, firm boundaries, governance, responsible sourcing, supply chain |
| JEL: | F14 F18 G38 M48 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:iwhdps:325497 |
| By: | Fernandez Machado Roxana (European Commission - JRC); Amaral-garcia Sofia (European Commission - JRC); Duch Brown Nestor (European Commission - JRC) |
| Abstract: | Artificial Intelligence is driving digital transformation, with Generative AI (GenAI) emerging as a transformative innovation. In mid-2023, the European Commission launched GPT@JRC, an in-house tool, enabling safe, privacy-compliant experimentation with GenAI across EU bodies. GPT@JRC is mainly used for text enhancement and learning, with users reporting gains in productivity and output quality. Time savings are strongly linked to the effectiveness of prompts, and regular use enhances both efficiency and quality. Older users may perceive fewer benefits compared to their younger counterparts. The main challenges for GPT@JRC include addressing content inconsistencies and improving its features. Employees also stress the need for training, which aligns with the European Commission’s ongoing efforts to develop AI skills among EU workers. |
| Date: | 2025–08 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc143418 |
| By: | Risius, Paula; Quispe Villalobos, Valeria; Malin, Lydia; Arndt, Franziska; Mertens, Armin; Engler, Jan |
| Abstract: | Für die Energiewende werden in unterschiedlichen Berufen Fachkräfte dringend gesucht: Allein in den 31 für die vorliegende Studie betrachteten energierelevanten Berufen konnten im Jahr 2024 knapp 119.000 der insgesamt knapp 185.000 offenen Stellen nicht besetzt werden. Damit liegt die Stellenüberhangsquote der rechnerisch nicht besetzbaren Stellen bei 64 Prozent. Das bedeutet, dass für knapp zwei von drei offenen Stellen in diesen energierelevanten Kernberufen keine entsprechend qualifizierten Fachkräfte verfügbar sind. Unter den diskutierten Lösungsvorschlägen zur Fachkräftesicherung gewinnt die Debatte um Berufswechsel und die damit verbundenen Potenziale angesichts der derzeit wieder steigenden Arbeitslosenzahlen zunehmend an Relevanz. Etwa 62, 5 Prozent der im Jahr 2023 neu begonnenen sozialversicherungspflichtigen Tätigkeiten in den untersuchten Berufen entfielen auf Berufswechsler, die vorher eine andere Tätigkeit ausgeübt hatten. Dies verdeutlich das bereits realisierte Ausmaß der vorhandenen Berufswechselpotenzialen für die Fachkräftesicherung und die damit verbundene Flexibilität von Unternehmen und Beschäftigten bei Rekrutierung, Bewerbung und Stellenbesetzung. Die vorliegende Studie widmet sich der Fragestellung, inwieweit die anhand von Kompetenzüberschneidungen gemessene Ähnlichkeit von Berufen mit einer höheren Zahl an Berufswechseln einhergeht und diese begünstigt. Zur Messung der beruflichen Ähnlichkeit wurde mithilfe von Big-Data-Methoden und unter Einsatz von Künstlicher Intelligenz (KI) eine eigene Maßzahl entwickelt, die die berufliche Ähnlichkeit anhand von Überschneidungen der Kompetenzanforderungen zwischen Berufspaaren quantifiziert. Darüber hinaus werden ergänzend berufsspezifische Kenngrößen aus der Arbeitsmarktstatistik berücksichtigt, um weitere relevante Einflussfaktoren auf die Wechselentscheidung von Arbeitgebern und -nehmern zu modellieren. Die Ergebnisse zeigen, dass eine hohe inhaltliche berufliche Ähnlichkeit Berufswechsel positiv beeinflusst: Aus Herkunftsberufen, deren Kompetenzprofile einem der betrachteten Einmündungsberufe stärker ähneln, wechseln - anteilig gemessen an der Zahl zur Verfügung stehenden Beschäftigten mit einer entsprechenden Tätigkeit im Herkunftsberuf - mehr Personen in den jeweiligen Einmündungsberuf. Regressionsanalysen zeigen darüber hinaus, dass auch die formale Ähnlichkeit von Berufen definiert durch die Klassifikation der Berufe relevant ist: Es finden mehr Wechsel zwischen Berufen statt, die dort näher beieinander liegen. Dies trifft für die ausgewählten akademisch geprägte Berufe weniger stark zu als für die Ausbildungsberufe im gewählten Berufe-Set. Die Generalisierbarkeit der Ergebnisse ist durch die Fokussierung auf die ausgewählten energierelevanten Einmündungsberufe begrenzt und nicht ohne Weiteres auf andere Berufe übertragbar. Für Politik und Unternehmen lassen sich aus den Ergebnissen spezifische Handlungsempfehlungen ableiten. Grundsätzlich konnte gezeigt werden, dass Unternehmen offen für Berufswechsler sind. Die Vermutung liegt nahe, dass dies für Berufe mit Fachkräfteengpässen und steigendem Fachkräftebedarf stärker ausgeprägt sein dürfte als für andere. Um die Potenziale geeigneter Berufswechsler noch stärker zu heben, können Unternehmen in Stellenanzeigen darauf hinweisen, dass auch Bewerbungen von Personen erwünscht sind, die nur einen Teil der Kompetenzanforderungen für die Stelle erfüllen und aus anderen Tätigkeitsfeldern kommen. Diese Bemühungen können Akteure wie die Bundesagentur für Arbeit unterstützen, indem sie Kompetenzüberschneidungen zum ausgeschriebenen Stellenprofil besser sichtbar machen. Zur Überbrückung fehlender Kompetenzen sollten außerdem Qualifizierungsbausteine wie Teilqualifikationen weiter gestärkt werden. Es ist daher zu begrüßen, dass im Koalitionsvertrag der Bundesregierung angekündigt wird, die Jobcenter für die Eingliederung mit ausreichenden Mitteln auszustatten, und die Vermittlung in Arbeit zu stärken. |
| Abstract: | Germany urgently needs skilled workers in various professions for the energy transition: in the 31 energyrelated professions considered in this study, almost 119, 000 of the total 185, 000 vacancies could not be filled in 2024. This means that the surplus quota of positions that mathematically cannot be filled is 64 percent. In other words, there are no suitably qualified skilled workers available for almost two out of three vacancies in these relevant occupations for the expansion of renewable energies. In view of the current rise in unemployment figures, the debate on occupational changes and their potential is becoming increasingly relevant for securing skilled workers. In 2023, around 62.5 percent of new social insurance-contributing jobs in the examined occupations were taken up by people who had previously been employed in other occupations. This illustrates the relevance of occupational change. This study examines the extent to which the similarity of occupations measured on overlapping competencies is associated with and promotes occupational changes. To measure occupational similarity, a metric was developed using big data methods. It quantifies occupational similarity based on overlaps in skill requirements between pairs of occupations. In addition, occupation-specific parameters from labor market statistics are considered to model other relevant factors influencing the occupational changes. The results show that a high degree of occupational similarity positively affects occupational change: more people switch to a new occupation if the skill profiles of their original and new occupation are more similar. Regression analyses also show that the formal similarity of occupations as defined by the classification of occupations is also relevant: there are more changes between occupations that are closer to each other in the classification. This applies less to the academic professions than to the vocational training occupations in the set of selected occupations. The generalization of the results is limited due to the focus on relevant occupations for the expansion of renewable energies. Specific recommendations for policy makers and companies can be derived from the results. It has been shown that companies are generally open to occupational changers. To further increase the potential of suitable occupational changes, companies can indicate in job advertisements that they also welcome applicants who only meet some of the competence requirements for the position or come from similar fields. These efforts can be supported by the Federal Employment Agency by making overlaps in competences with the advertised job profile more visible. To bridge skills gaps, qualification modules such as partial qualifications should also be further strengthened. |
| Keywords: | Erneuerbare Energie, Berufswahl, Berufswechsel, Erwerbsverlauf, Deutschland |
| JEL: | J62 J24 Q43 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:iwkrep:325499 |
| By: | Horn, Andreas; Berkmüller, Ruth; Bokelmann, Monika; Gerk, Alexander-Michael; Heldmann, Jan; Knauer, Miriam; Naji, Fatah; Rath, Simon; Sperling, Franziska; Wagner, Johanna |
| Abstract: | Sustainability and non-financial risk management are becoming increasingly im-portant for German companies due to climate change and new regulations. However, it is un-clear how well companies of varying sizes are prepared to handle the increasing pressure to adapt. While large companies are obliged to publish a sustainability report due to regulatory requirements such as the CSRD, there is no direct obligation for SMEs. Nevertheless, due to external pressure from stakeholders and information requirements of large companies, SMEs increasingly have to address the issue of sustainability. This raises the question as to how far large companies and SMEs have progressed in implementing sustainability, how the costs and benefits of this adaptation process can be compared and what differences can be identified be-tween the two company sizes. Our study is based on a June 2023 survey of 120 companies and provides an overview of the current state of sustainability management in German companies. Further, our results show that large companies have a broader understanding of sustainability than SMEs. In addition, most large companies already implement and report on sustainability measures. Overall, we observe that there is a link between understanding sustainability, imple-menting sustainability measures and sustainability reporting. |
| Abstract: | Nachhaltigkeit und das Management nichtfinanzieller Risiken gewinnen für deutsche Unternehmen aufgrund des Klimawandels und neuer Vorschriften zunehmend an Bedeutung. Es ist jedoch unklar, wie gut Unternehmen unterschiedlicher Größe auf den zuneh-menden Anpassungsdruck vorbereitet sind. Während große Unternehmen aufgrund regulatori-scher Anforderungen wie der CSRD zur Veröffentlichung eines Nachhaltigkeitsberichts ver-pflichtet sind, gibt es für KMU keine direkte Verpflichtung. Dennoch müssen sich KMU auf-grund des externen Drucks von Stakeholdern und der Informationspflichten großer Unterneh-men zunehmend mit dem Thema Nachhaltigkeit auseinandersetzen. Dies wirft die Frage auf, wie weit große Unternehmen und KMU bei der Umsetzung von Nachhaltigkeit fortgeschritten sind, wie die Kosten und Nutzen dieses Anpassungsprozesses verglichen werden können und welche Unterschiede zwischen den beiden Unternehmensgrößen festgestellt werden können. Unsere Studie basiert auf einer Umfrage unter 120 Unternehmen vom Juni 2023 und gibt einen Überblick über den aktuellen Stand des Nachhaltigkeitsmanagements in deutschen Unterneh-men. Darüber hinaus zeigen unsere Ergebnisse, dass große Unternehmen ein umfassenderes Verständnis von Nachhaltigkeit haben als KMU. Außerdem setzen die meisten großen Unter-nehmen bereits Nachhaltigkeitsmaßnahmen um und berichten darüber. Insgesamt beobachten wir einen Zusammenhang zwischen dem Verständnis von Nachhaltigkeit, der Umsetzung von Nachhaltigkeitsmaßnahmen und der Nachhaltigkeitsberichterstattung. |
| Keywords: | Sustainability, ESG Risk, Understanding of Sustainability, Sustainability Measures, Sustainability Reporting, Cost-Benefit Analysis |
| JEL: | C83 M14 M41 P28 Q01 Y1 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:bayfat:2025-01 |
| By: | Henrik Yde Andersen (Danmarks Nationalbank); Camilla Skovbo Christensen (Department of Economics, University of Copenhagen); Claus Thustrup Kreiner (Department of Economics, University of Copenhagen); Søren Leth-Petersen (Department of Economics, University of Copenhagen) |
| Abstract: | Many people forgo substantial economic gains by not responding to financial incentives, even in major decisions such as retirement savings and mortgage refinancing. But do the same people systematically fail to respond across financial contexts? We study this using a quasi-experimental setting that combines policy changes in pension incentives with shifts in mortgage refinancing incentives from interest rate fluctuations. Linking Danish administrative records, we uncover a striking independence between financial decisions: people who are inactive in one context are not systematically inactive in the other. One implication is that the costs of inaction are not concentrated among specific groups. |
| Keywords: | Tax incentives for pension savings, Mortgage refinancing, inaction |
| JEL: | G51 H24 |
| Date: | 2025–09–16 |
| URL: | https://d.repec.org/n?u=RePEc:kud:kucebi:2511 |
| By: | De Simone, Lisa; Giese, Henning; Koch, Reinald; Rehrl, Christoph |
| Abstract: | This study examines the real effects of earnings stripping rules introduced in the European Union in 2019, which tie interest deductibility to contemporaneous profitability. Exploiting a quasi-natural experiment created by the EU's harmonized implementation under the Anti-Tax Avoidance Directive and using a difference-in-differences design, we analyze consolidated data from 3, 312 firms across 22 EU Member States from 2012 to 2023. We find that earnings stripping rules significantly reduce operational risk-taking, investment, and innovation, consistent with profit-contingent deductibility lowering the expected debt tax shield in low-profit years. These effects are particularly pronounced among firms with high pre-reform operating risk, which also experience slower growth and a higher likelihood of financial distress following the reform. This study contributes to the literature on corporate taxation and risk-taking, showing that profit-linked interest limitations have real effects and underscoring the importance of rule design in balancing anti-avoidance objectives with investment and innovation. |
| Keywords: | corporate risk-taking, capital structure, asymmetric taxation, earnings stripping rule |
| JEL: | G32 G33 H25 H26 H87 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:arqudp:325832 |
| By: | Schuster, Florian; Sigl-Glöckner, Philippa |
| Abstract: | The discretionary share of the federal budget is now only around 16 percent and could disappear altogether over the course of the next ten years. The main drivers are rising interest expenses and growing social transfers to support low-income households. Blanket spending cuts will not solve this problem. Without fundamental reform, an excessively tight budget is looming. Financial leeway will then only be available through special funds, which must be approved by a two-thirds majority in both houses of Parliament each time. Our recommendations for action: • Reorient the federal budget towards the objective of high employment, incomes and sustainable growth by getting more people into well-paid jobs as well as making more companies profitable, which in turn reduces the need for subsidies • Conduct rapid reviews of key spending areas to achieve this objective, covering innovation, the transfer and tax system, public services, and infrastructure development • Reform the debt brake because even a reformed budget does not fit within the framework of today's fiscal rule, which means that either Germany is governed in a permanent state of emergency or the debt brake is reformed |
| Keywords: | Budget, growth, fiscal |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:dzimps:325329 |
| By: | Hanna Wang |
| Abstract: | I develop and estimate a life-cycle discrete-choice model of fertility and female labor supply to study the optimal design of a range of child-related policies. First, I examine two German reforms that introduced wage-contingent parental leave payments and expanded access to low-cost public childcare. I find that both reforms raised completed fertility, with the parental leave reform having a particularly strong impact on highly educated women. Second, I solve for a budget-neutral optimal policy portfolio that maximizes either aggregate welfare or fertility, while ensuring that welfare and fertility do not decline for any education group. I consider four prominent child subsidies as well as the degree of tax jointness. My results show that optimal policy has the potential to increase welfare by 0.5% or fertility by 5.7%. While the solutions are qualitatively similar, they prioritize different policy instruments depending on the specific objective being targeted. |
| Keywords: | childcare subsidies, fertility, optimal policy, parental leave |
| JEL: | H21 J13 J24 |
| Date: | 2025–09 |
| URL: | https://d.repec.org/n?u=RePEc:bge:wpaper:1507 |
| By: | Altenburg, Tilman; Never, Babette; Strohmaier, Rita |
| Abstract: | Calls for development policy to place greater emphasis on national self-interest are growing louder in many donor countries, including Germany. There are indeed good reasons to dovetail Germany's international policies more effectively. Synergies between develop-ment cooperation (DC), foreign trade promotion and research partnerships have not been harnessed systematically to date, yet they could serve the interests of both Germany and its partner countries alike. Moreover, Germany is facing geopolitical competition from actors who have long been using their DC proactively to pursue strategic interests. We advocate adopting a development policy that pursues German and European interests in those areas in which they are compatible with development policy objectives. Instead of focusing on the interests of individual companies, it is important to identify long-term 'win-win' potential, for example through a more strategic approach to planning DC offers that involves the private sector and ministries more actively prior to intergovernmental negotiations with the partner countries. At the same time, we warn against subordinating DC to foreign economic policy objectives. Conditions such as tied aid provisions that link financial cooperation to business contracts for German/EU companies are expensive, inefficient and counterproductive in development terms. In addition, this approach would risk losing sight of Germany's overarching interest in solutions to global problems, such as peacebuilding and climate and biodiversity protection. We set out five guidelines for a development policy strategy that takes due consideration of Germany's own interests without harming the partner countries: 1. Avoid strict tied aid provisions. These would be inefficient in development terms and would be of little benefit to German companies. As an export nation, Germany should comply with freedom of contract rules. 2. Pursue the interests of German society as a whole where they align with DC objectives. We distinguish between Germany's global interests and those of individual companies. DC projects should align economic interests with the common good in the partner country. 3. Develop offers strategically prior to intergovernmental negotiations. The most effective synergies are generated if the private sector and other ministries are involved in preparing DC initiatives at an early stage. To do so, Germany needs to define joint national goals, coordinate ministerial instruments to achieve these goals and evaluate contributions by the private sector in advance. 4. Create strategic partnerships that serve as models. Germany has established a number of bilateral partnerships, especially on energy, raw material security and migration. None of these is exemplary in terms of effective interministerial coordination, private sector involvement or demons-trable benefits for both of the countries involved. At least one flagship project in each of the areas mentioned would make Germany attractive as a credible partner. 5. Expand minilateral formats with European states and influential third countries. Triangular and quadrilateral cooperation with 'global partners' and donor countries that share the same or similar interests can help advance Germany's interests in international development for the common good. |
| Keywords: | Development policy, foreign trade promotion, tied aid, securing raw materials, development banks, common good |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:idospb:325837 |
| By: | Massimo Bordignon (Università Cattolica del Sacro Cuore; Dipartimento di Economia e Finanza, Università Cattolica del Sacro Cuore); Nicolò Gatti (Università Cattolica del Sacro Cuore; Dipartimento di Economia e Finanza, Università Cattolica del Sacro Cuore); Gilberto Turati (Università Cattolica del Sacro Cuore; Dipartimento di Economia e Finanza, Università Cattolica del Sacro Cuore) |
| Abstract: | This paper investigates how raising awareness of public debt sustainability affects individual attitudes toward debt reduction and fiscal policy preferences. Using a survey experiment on a representative sample of the Italian population, we randomly assign objective information about government debt to citizens, who become more sensitive to the risks of tax increases, spending cuts, and imbalances for future generations. We find no effect on the perception of debt reduction as an urgent policy priority. While remaining highly averse to any tax increase, treated respondents support spending cuts (but not in education and health care) as a policy to reduce the debt burden. We also show that subjects with distorted beliefs about government debt are no more responsive to the information treatment than subjects with correct beliefs, shedding light on the challenges of building a voting majority for debt-stabilizing policies. |
| Keywords: | public debt; fiscal policies; beliefs; information. |
| JEL: | H63 H31 D83 |
| Date: | 2025–07 |
| URL: | https://d.repec.org/n?u=RePEc:ctc:serie1:def144 |
| By: | Olympia Bover (CEMFI); Nezih Guner (CEMFI); Yuliya Kulikova (Bank of Spain); Alessandro Ruggieri (CUNER Universidad); Carlos Sanz (Banco de Espana) |
| Abstract: | Family-friendly policies aim to help women balance work and family life, encouraging them to participate in the labor market. How effective are such policies in increasing fertility? We answer this question using a search model of the labor market where firms make hiring, promotion, and firing decisions, taking into account how these decisions affect workers’ fertility incentives and labor force participation decisions. We estimate the model using administrative data from Spain, a country with very low fertility and a highly regulated labor market. We use the model to study family-friendly policies and demonstrate that firms' reactions result in a trade-off: policies that increase fertility reduce women's participation in the labor market and lower their lifetime earnings. |
| Keywords: | flexibility, search and matching, human capital accumulation, gender gap, welfare |
| JEL: | E24 J08 J13 J18 |
| Date: | 2025–09 |
| URL: | https://d.repec.org/n?u=RePEc:hka:wpaper:2025-006 |
| By: | Joop Age Harm Adema; Lasha Chargaziia; Yvonne Giesing; Sarah Necker; Panu Poutvaara |
| Abstract: | Refugees' decisions to return after conflict carry significant political and economic implications for the origin and host countries. We examine how conflict resolution, security, economic conditions, and corruption influence return decisions. To estimate the causal effect of post-war conditions, we conducted a single-profile conjoint experiment among 2543 Ukrainian refugees across 30 European countries. Respondents were asked how likely they would be to return to Ukraine under different hypothetical scenarios. Results show that territorial integrity and security guarantees are critical, while economic prospects and combating corruption also play an important role. Refugees planning to return are more responsive to different post-war scenarios, and younger respondents are particularly influenced by income opportunities, job prospects, and potential EU accession. Our findings suggest that targeted political and economic reconstruction policies can substantially influence post-conflict return. In the most optimistic scenario, the expected return rate is 47%; in the most pessimistic scenario, only 3%. |
| Keywords: | refugees, return migration, conflict, integration, Ukraine, conjoint experiment |
| JEL: | F22 D74 O15 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_12118 |
| By: | Boberg, Arvid (Department of Real Estate and Construction Management, Royal Institute of Technology); Donner, Herman (Department of Real Estate and Construction Management, Royal Institute of Technology); Metsalo, Jakob (Department of Real Estate and Construction Management, Royal Institute of Technology) |
| Abstract: | This paper examines how leasehold status affects cooperative apartment prices in Stockholm, and if housing cooperatives acted rationally when offered to purchase their leasehold land. The analysis builds on over 20, 000 sales of apartments in 2021 and extends prior research in two key ways. First, while earlier studies have established that leasehold tenure is associated with a price discount, we show that the effect varies substantially within a city. Leasehold apartments in central Stockholm sell at an average discount of 3.6%, compared to 6.8% in suburban areas, with neighborhood-level effects ranging from negligible to more than 15%. This heterogeneity underscores the importance of local market conditions for understanding how leasehold status is capitalized. A potential explanation for the identified pattern is that leasehold status is more common in the city center compared to suburban areas, resulting in a smaller discount when substitutes in the form of freehold apartments are less common. Second, we move beyond buyer capitalization by estimating counterfactual apartment values under scenarios where cooperatives purchase their land. The results indicate that, at prevailing interest rates, land purchases were typically unprofitable for cooperatives, even at discounted terms offered by the City of Stockholm in 2022. The findings highlight that the ownership structure of cooperative apartments on leasehold land can result in substantial pricing issues. The results indicate that the City of Stockholm likely mispriced the land given how leasehold status is capitalized by apartment buyers. |
| Keywords: | Leasehold; Housing Cooperatives; Apartments |
| JEL: | R21 R30 R31 |
| Date: | 2025–09–17 |
| URL: | https://d.repec.org/n?u=RePEc:hhs:kthrec:2025_010 |
| By: | Siavash Mohades; Giulia Piccillo; Maria Savona; Tania Treibich |
| Abstract: | This paper studies the role of capacity utilisation in explaining investment behaviour in Italian SMEs and large firms. We propose a framework in which firms with high capacity utilisation are more likely to invest in maintaining a buffer against future shocks. Using firm-level data from the Bank of Italy’s Survey of Industrial and Service Firms (2002–2024), we empirically examine how deviations from a sector-specific target capacity utilisation influence investment decisions, accounting for the roles of uncertainty and financial constraints. Our findings reveal that Italian firms with high growth potential- those at the so-called “growth window” (Coad et al., 2021)- are more likely to invest. This result is primarily driven by large firms, while SMEs do not seem to respond strongly to the presence in such growth windows. Furthermore, we find that uncertainty does not deter investment among firms operating at high capacity, but instead stimulates investment in firms with low capacity utilisation. These insights have significant implications for industrial policy that targets support to firms at critical decision points in their growth trajectory. |
| Keywords: | capacity utilisation, investment, uncertainty, financial constraints, firm growth |
| JEL: | D20 D22 D24 D81 E32 L11 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_12108 |
| By: | Ichiro Iwasaki; Evžen Kočenda |
| Abstract: | We examine the corporate criminal records of 18, 187 firms operating in 17 European emerging markets and empirically analyze the effects of board composition and national institutions on crime deterrence. Our analysis reveals that 872 firms (about 5% of the sample) committed 1, 734 crimes over 2020-2023. We show that firms with larger boards and greater board independence are associated with higher incidences of corporate crime, suggesting that larger or nominally independent boards may not function effectively in emerging market contexts. In contrast, female leadership and board gender diversity do not exhibit significant deterrent effects, implying that gender inclusion alone may not suffice in these environments. In banks with an outside board chairman, the occurrence of corporate crime increases substantially. Importantly, stronger national institutions consistently correlate with lower crime rates, a pattern observed universally across European emerging markets, and boards in countries with stronger institutions appear more effective in deterring crime. |
| Keywords: | corporate crime, board composition, board diversity, corporate governance, national institutions, banks, European emerging markets |
| JEL: | D22 G34 K14 L22 M21 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_12132 |
| By: | Hugo Morão |
| Abstract: | This study looks at how the the climate policy uncertainty (CPU) shocks affect Portugal’s energy sector, specifically examining their effects on turnover, output prices, and labor market dynamics. The structural vector autoregression (SVAR) analysis shows that CPU shocks lead to a significant increase in domestic turnover. Output prices rise both at home and abroad, but foreign prices are more sensitive. The labor market shows a more nuanced reaction, hours worked marginally increase and wages remain unchanged. Furthermore, the study finds that CPU has been a key driver of historical variations in the energy sector, particularly during global policy events like COP26 and domestic policy changes like carbon or car tax changes. These findings establish CPU as significant driver in energy prices and underscore the importance of judicious climate policymaking. |
| Keywords: | climate policy; climate policy uncertainty; SVAR; energy crisis; Portugal. |
| JEL: | C32 E62 F18 H23 Q48 L94 G18 |
| Date: | 2025–09 |
| URL: | https://d.repec.org/n?u=RePEc:ise:remwps:wp03932025 |
| By: | Roberto Dell'Anno (Department of Economics and Statistics - University of Salerno - Italy and CELPE) |
| Abstract: | This paper presents an empirical and institutional evaluation of the Italian National Scientific Qualification (ASN) in the field of Public Economics (sector 13/A3), based on data from the 2021– 2023 assessment cycle. The analysis examines the scientific profiles of applicants and those who qualified, focusing on their research output, thematic interests, and the determinants of qualification outcomes. We investigate whether obtaining the qualification leads to actual recruitment and how such effects vary across disciplinary sectors. Results indicate that the benefits of ASN (i.e., actual hiring into associate or full professorships) are largely concentrated among candidates already affiliated with Public Economics, and internal candidates exhibit a clear advantage over their external counterparts. These findings underscore the enduring influence of institutional proximity and network dynamics, despite the formal role of national evaluation standards. The study concludes with a set of targeted policy recommendations aimed at improving fairness, transparency, and the overall effectiveness of academic hiring practices in the Italian university system. |
| Keywords: | Higher Education recruitment; Research evaluation; Academic career; National Scientific Qualification; Public Economics |
| JEL: | H00 H83 I23 J45 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:sal:celpdp:021543 |
| By: | Verdolini, Elena; Look, Wesley (Resources for the Future); Belpietro, Chiara; Persico, Giulia |
| Abstract: | The European Union (EU) is strongly committed to steering its economy away from high-carbon and pollution-intensive production and toward climate-neutral technologies and business models by 2050. If this transition is not accompanied by adjustment assistance, however, making deep reductions in greenhouse gas (GHG) emissions could disproportionately burden certain segments of society that are dependent on producing or using carbon-intensive energy resources as a primary employer or mainstay of the economy (Vona 2021). Many regional economies in Europe rely on fossil fuel extraction (oil, coal, or gas) or energy- and carbon-intensive production (e.g., steel production and electricity generation). As European Commission president Ursula von der Leyen has frequently stated, the large-scale deployment of low-carbon energy can succeed only if conducted in a fair and inclusive way for all European citizens (European Commission 2019k), what many refer to as just transition.The aim of this report is to distill important lessons learned from the EU experience in promoting just transition to help US policymakers identify key components of a comprehensive and effective energy transition policy package. The report examines EU-level programs implemented over the period 2014–20 and summarizes the policy changes proposed in the European Green Deal for 2020–25.The just transition concept originated in the US labor movement during the 1970s to describe the need for a support system for workers unemployed because of environmental protection policies (Henry et al. 2020). In the EU, the quality of work and life of its citizens has been a policy goal since its founding. One of the guiding principles of European policymaking is a commitment to reduce social, economic, and territorial development disparities among EU regions to promote integration and the economic growth of all member states. This is referred to as cohesion policy, which is enshrined in the Treaty on the Functioning of the European Union (Art. 174) and plays a crucial role in setting political priorities at the EU level (European Commission 2022g). Cohesion policy is the term used in the EU context to refer to regional policy. In the EU, socioeconomic development is promoted as an expression of solidarity between the EU member states and their regions. Programs and funding targeting socioeconomic development aim to remove economic, social, and territorial disparities across the EU, supporting the restructuring of declining industrial areas and diversification of declining rural areas. The rationale for cohesion policy is to mitigate the negative side effects from the creation of a single market and ensure that all EU citizens can reap the benefits (Samecki 2009). These policies and programs have been used as building blocks to shape EU just transition policy over time, including in the European Green Deal. For discussion of the evolving interpretation of just transition, see ILO (2015); Stevis and Felli (2015); Verdolini (2023).It is important to note that most of the EU programs we discuss are ultimately implemented and used by the member states, which have a fair degree of autonomy in selecting the projects to be funded within the broader design principles set up at the EU level. Other reports in this series have reviewed some of the ways these EU-level programs have been implemented in specific countries. Reports on just transition measures related to reductions in the coal sector in Germany, Poland, and the UK can be found on the RFF website at https://www.rff.org/publications/all-publications/?offset=12&topic=10098. The report on “Just Transition in Poland” examines the topic in the broader context of economic restructuring and increased regional integration of the country.Within the EU, the concept of just transition indicates the need to support and help territories and regions most affected by the transition to a climate-neutral economy, prioritizing those that have less capacity to deal with the costs of transition (European Commission 2019b). The EU currently distinguishes between regions dependent on extraction of coal and fossil fuels and those dependent on carbon-intensive industries (Alves Dias et al. 2021).This report does not present an exhaustive list of all programs and investments at the EU level that have been used to support workers and communities; rather, it identifies the key relevant EU policies and programs, describes their main features, and gives several examples of specific funded projects and activities. Many of these policies and programs have been motivated by other energy and economic issues, such as improving energy efficiency for energy security and enhanced productivity, but they include tools that are also applicable to just transition in the context of decarbonization.Sections 2 and 3 of this report focus on the policies and programs during the full EU long-term budget cycle from 2014 to 2020. Section 4 then discusses more recent EU policy priorities and programs, some of which are still being shaped under the European Green Deal. The report thus provides a broad picture of how the debate around just transition is reshaping and adjusting EU policies and programs. Section 5 concludes by summarizing the relevant lessons learned from the EU experience.The review of EU just transition policies provides several relevant insights for policymakers seeking to address equity and fairness issues in the United States’ energy transition. See Look et al. (2021) for a review of key issues for the US energy transition. We briefly summarize the key points here, with discussion of them in Section 5.The multiannual and investment-focused EU budget provides long-term, stable funding, which supports addressing many of the challenges associated with just transition.The EU Just Transition Mechanism aims to mobilize substantial public and private investment between 2021 and 2027 to support just transition efforts in Europe.The Just Transition Mechanism includes a Just Transition Platform to serve as a single access point for related EU-wide resources and a centralized source for technical assistance. The Biden administration has established a similar resource.The EU just transition policy framework requires EU member states to develop Territorial Just Transition Plans before accessing funds. The Biden administration has established a mechanism for rapid response teams to support local transition planning.One of the three pillars of EU just transition policy in the Green Deal is access to the Public Sector Loan Facility to support the implementation of just transition projects. The United States does not have a financing program explicitly dedicated to supporting transition in energy communities, although the creation of the Greenhouse Gas Reduction Fund in the Inflation Reduction Act may lead to a green bank that could support just transition efforts.EU R&D policy supports not only technology development but also innovation in the creation of stronger social institutions as a tool for responding to just transition challenges. The US federal government could do more to support research and pilot implementation of innovative approaches for addressing just transition. |
| Date: | 2024–02–08 |
| URL: | https://d.repec.org/n?u=RePEc:rff:report:rp-24-02 |
| By: | Contreras Silva, Valentina; Orsini, Chiara; Özcan, Berkay; Koehler, Johann |
| Abstract: | We present results from a field experiment that tests the effects of varying gender and linguistic group composition on performance and on group-members’ perception that their voice is heard when completing complex collaborative work within a low scrutiny environment. We randomize individuals enrolled in a postgraduate course populated by mostly women and non-native English speakers into small teams within larger, exogenously assigned seminar groups. Groups are tasked with complex and deliberative research assignments over three months. Using administrative and survey data, we find that a higher share of women in seminar groups significantly benefits the academic performance of group members—an effect driven by a positive effect on female native English speakers — while a greater proportion of women in small teams improves non-native language speakers’ perception of being heard. |
| Keywords: | team dynamics; gender; linguistic diversity; peer effects; higher education; field experiment |
| JEL: | R14 J01 |
| Date: | 2025–08 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:128788 |
| By: | Jennifer Hook; Meiying Li |
| Abstract: | We investigate whether work-family policies help incorporate women into the labor market, but exacerbate the gender earnings gap and motherhood penalty, especially for mothers and/or tertiary-educated women. We use repeated cross-sectional income data from the Luxembourg Income Study Database (LIS) 1999–2019 (n = 26 countries, 280 country-years, 2.9 million employees) combined with an original collection of indicators on work-family policies, labor market conditions, and gender norms. We find only one work-family policy, long paid parental leave (> 6 months), is associated with a larger gender earnings gap for mothers and tertiary-educated women. The negative relationship between long paid leave and women’s earning percentile is not well explained by selection, full-time status, work hours, experience, occupation, or sector, suggesting discrimination mechanisms. Our findings add to the growing evidence that long paid leave specifically, as opposed to work-family policies more generally, cleave the labor market outcomes of women from men. |
| Date: | 2025–07 |
| URL: | https://d.repec.org/n?u=RePEc:lis:liswps:901 |
| By: | Natalia Fabra; Clément Leblanc; Mateus Souza |
| Abstract: | The 2021-2023 European energy crisis, triggered by the war in Ukraine, led to broad policy interventions in energy markets. In contrast to the retail-side measures and public transfers implemented elsewhere, Spain and Portugal targeted the wholesale electricity market through the so-called Iberian solution. We quantify the distributional implications of the crisis and this market intervention on Spanish electricity firms and across consumer groups. We find that the crisis shifted substantial wealth from consumers to generators, with regressive impacts among consumers. Conversely, the policy’s relief was progressive, delivering larger gains to lower-income groups. |
| Keywords: | energy crisis, electricity markets, distributional implications, machine learning |
| JEL: | L94 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_12093 |
| By: | Forslund, Eva (Mistra Center for Sustainable Markets (Misum)); Meriläinen, Jaako (Mistra Center for Sustainable Markets (Misum)); Zipfel, Celine (Mistra Center for Sustainable Markets (Misum)) |
| Abstract: | We provide new evidence on how a gender-biased, labor-saving technology—the milking machine—advanced one important dimension of gender equality: women’s political representation. Our focus is mid-20th-century Finland, where mechanized milking reduced the time burden of a task traditionally performed by women and facilitated modernization of rural parts of the country. Using historical data, we estimate panel and instrumental-variable models that exploit temporal variation in the spread of milking machines and geographic variation in pre-determined comparative advantage in cattle farming. We find that municipalities with greater adoption of milking machines experienced significantly larger increases in the share of local council seats held by women between 1950 and 1972. These effects operated through time savings, rural economic development, and an increase in women’s employment off the farm, which together helped ease key constraints to women's political representation. |
| Keywords: | agriculture; gender; political representation; technological change; women in politics |
| JEL: | D63 |
| Date: | 2025–09–15 |
| URL: | https://d.repec.org/n?u=RePEc:hhs:hamisu:2025_002 |
| By: | Matilda Gettins; Lorenz Meister |
| Abstract: | Populist parties increasingly deploy narratives of social injustice to portray climate policy as elitist and unfair. This paper investigates how such narratives affect public attitudes toward populism and democratic institutions. We conduct a survey experiment with approximately 1, 600 respondents in Germany, exposing participants to three common narratives about the distributional costs of climate policy. Our findings show that the narrative emphasizing disproportionate burdens on low-income households significantly increases climate-populist attitudes and reduces satisfaction with democracy. These effects are particularly pronounced among low-income, East German, and conservative voters. By contrast, the narrative that companies can circumvent the cost of climate action fosters climate populism among left-leaning individuals. The results suggest that the framing of how the costs of climate policy are distributed strongly shapes its political acceptance and vulnerability to populist mobilization. |
| Keywords: | Climate policy, populism, narratives, distribution |
| JEL: | Q54 D72 Q58 H23 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:diw:diwwpp:dp2139 |
| By: | Olivier Arsene (EESC-GEM Grenoble Ecole de Management, CERGAM de Toulon - Centre d'Études et de Recherche en Gestion d'Aix-Marseille/Equipe de recherche de Toulon - CERGAM - Centre d'Études et de Recherche en Gestion d'Aix-Marseille - AMU - Aix Marseille Université - UTLN - Université de Toulon - IAE Toulon - Institut d'Administration des Entreprises (IAE) - Toulon - UTLN - Université de Toulon); Claudio Vitari (CERGAM de Toulon - Centre d'Études et de Recherche en Gestion d'Aix-Marseille/Equipe de recherche de Toulon - CERGAM - Centre d'Études et de Recherche en Gestion d'Aix-Marseille - AMU - Aix Marseille Université - UTLN - Université de Toulon - IAE Toulon - Institut d'Administration des Entreprises (IAE) - Toulon - UTLN - Université de Toulon, LEST - Laboratoire d'Economie et de Sociologie du Travail - AMU - Aix Marseille Université - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | Healthcare professionals in France face significant challenges, including workforce shortages, rising administrative burdens, and high job demands, which contribute to professional strain and burnout. Health Information Technologies (HIT) have emerged as potential resources to mitigate these stressors by enhancing efficiency and care quality. However, the interplay between job demands and the perceived usefulness of HIT in reducing strain remains underexplored. This study applies the Job Demand-Resource (JD-R) model to healthcare professionals to investigate how job demands influence HIT's ability to function as a perceived useful resource for strain moderation. We hypothesize an inverted U-shaped relationship, where HIT usefulness increases with job demands up to a threshold, beyond which technostress diminishes its benefits. A quantitative survey will assess these dynamics among French healthcare professionals. Findings aim to inform policymakers and developers on designing HIT solutions that effectively support healthcare workers without exacerbating their strain. |
| Keywords: | Strain, French Healthcare, Perceived Usefulness, Job Demand-Resource, Health IT |
| Date: | 2025–08–14 |
| URL: | https://d.repec.org/n?u=RePEc:hal:gemptp:hal-05251766 |
| By: | Julie Regolo (US ODR - Observatoire des Programmes Communautaires de Développement Rural - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Cédric Gendre (US ODR - Observatoire des Programmes Communautaires de Développement Rural - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Thomas Poméon (US ODR - Observatoire des Programmes Communautaires de Développement Rural - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement) |
| Abstract: | This article aims to assess the impact of the Geographical Indications (GIs) protection policy on the sustainable development of agriculture in mainland France. More specifically, it analyses the impact over the last decade of the increase in the territorial magnitude of agri-food GIs on agricultural economic performance, agricultural employment and agricultural pressures on the environment (biodiversity and water quality). The magnitude of GIs is assessed using two distinct indicators: the proportion of farmers involved in GIs and the diversity of GI products within each territory. We use data at a fine territorial scale (cantonal level – NUTS4) and a meso-economic approach. We estimate a difference in differences econometric model to continuous variables, and we control for the effect of the presence of operators involved in organic farming in the territory, and of payments under the second pillar of the Common Agricultural Policy, which may impact sustainable development indicators. The results show that, all other factors being equal, cantons where there has been an increase in the presence of GIs over the last decade have seen greater improvements in their economic, social and environmental performance than cantons where there has been no increase. They also indicate the distinct and complementary effects of GI diversity and intensity in the territory, in terms of contribution to sustainable development. |
| Keywords: | Territory France, Geographical indications, Sustainable development |
| Date: | 2025–12 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05234723 |
| By: | Anthony Cousien (IAME (UMR_S_1137 / U1137) - Infection, Anti-microbiens, Modélisation, Evolution - INSERM - Institut National de la Santé et de la Recherche Médicale - UPCité - Université Paris Cité - Université Sorbonne Paris Nord, SESSTIM - U1252 INSERM - Aix Marseille Univ - UMR 259 IRD - Sciences Economiques et Sociales de la Santé & Traitement de l'Information Médicale - IRD - Institut de Recherche pour le Développement - AMU - Aix Marseille Université - INSERM - Institut National de la Santé et de la Recherche Médicale, ISSPAM - Institut des sciences de la santé publique [Marseille]); Cécile Donadille (SESSTIM - U1252 INSERM - Aix Marseille Univ - UMR 259 IRD - Sciences Economiques et Sociales de la Santé & Traitement de l'Information Médicale - IRD - Institut de Recherche pour le Développement - AMU - Aix Marseille Université - INSERM - Institut National de la Santé et de la Recherche Médicale, ISSPAM - Institut des sciences de la santé publique [Marseille]); Laélia Briand Madrid (SESSTIM - U1252 INSERM - Aix Marseille Univ - UMR 259 IRD - Sciences Economiques et Sociales de la Santé & Traitement de l'Information Médicale - IRD - Institut de Recherche pour le Développement - AMU - Aix Marseille Université - INSERM - Institut National de la Santé et de la Recherche Médicale, ISSPAM - Institut des sciences de la santé publique [Marseille]); Gwenaëlle Maradan (ORS PACA - Observatoire régional de la santé Provence-Alpes-Côte d'Azur [Marseille]); Marie Jauffret-Roustide (CEMS - Centre d'étude des mouvements sociaux - EHESS - École des hautes études en sciences sociales - INSERM - Institut National de la Santé et de la Recherche Médicale - CNRS - Centre National de la Recherche Scientifique, SUNY Buffalo - University at Buffalo [SUNY] - SUNY - State University of New York, UdeS - Université de Sherbrooke = University of Sherbrooke); Laurence Lalanne (CHU Strasbourg - Centre Hospitalier Universitaire [Strasbourg] - HUS - Hôpitaux Universitaires de Strasbourg, FMTS - Fédération de Médecine Translationnelle de Strasbourg - UNISTRA - Université de Strasbourg, CRBS - Centre de Recherche en Biomédecine de Strasbourg - UNISTRA - Université de Strasbourg - INSERM - Institut National de la Santé et de la Recherche Médicale, STEP - Neuroscience et Psychiatrie Translationnelle de Strasbourg - UNISTRA - Université de Strasbourg - INSERM - Institut National de la Santé et de la Recherche Médicale); Marc Auriacombe (SANPSY - Sommeil, Addiction et Neuropsychiatrie [Bordeaux] - UB - Université de Bordeaux - CHU de Bordeaux Pellegrin [Bordeaux] - CNRS - Centre National de la Recherche Scientifique); Perrine Roux (SESSTIM - U1252 INSERM - Aix Marseille Univ - UMR 259 IRD - Sciences Economiques et Sociales de la Santé & Traitement de l'Information Médicale - IRD - Institut de Recherche pour le Développement - AMU - Aix Marseille Université - INSERM - Institut National de la Santé et de la Recherche Médicale, ISSPAM - Institut des sciences de la santé publique [Marseille]); Sylvie Boyer (ISSPAM - Institut des sciences de la santé publique [Marseille], SESSTIM - U1252 INSERM - Aix Marseille Univ - UMR 259 IRD - Sciences Economiques et Sociales de la Santé & Traitement de l'Information Médicale - IRD - Institut de Recherche pour le Développement - AMU - Aix Marseille Université - INSERM - Institut National de la Santé et de la Recherche Médicale) |
| Abstract: | Background: People who inject drugs (PWID) experience many health problems which result in a heavy economic and public health burden. To tackle this issue, France opened two drug consumption rooms (DCRs) in Paris and Strasbourg in 2016. This study assessed their long-term health benefits, costs and cost-effectiveness. Methods: We developed a model to simulate two fictive cohorts for each city ( n =2, 997 in Paris and n =2, 971 in Strasbourg) i) PWID attending a DCR over the period 2016-2026, ii) PWID attending no DCR. The model accounted for HIV and HCV infections, skin abscesses and related infective endocarditis, drug overdoses and emergency department visits. We estimated the number of health events and associated costs over 2016-2026, the lifetime number of quality-adjusted life-years (QALYs) and costs, and the incremental cost-effectiveness ratio (ICER). Results The numbers of abscesses and associated infective endocarditis, drug overdoses, and emergency department visits decreased significantly in PWID attending DCRs (-77%, -69%, and -65%, respectively) but the impact on HIV and HCV infections was modest (-11% and -6%, respectively). This resulted in savings of €6.6 (Paris) and €5.8 (Strasbourg) millions of medical costs. The ICER of DRCs was €30, 600/QALY (Paris) and €9, 200/QALY (Strasbourg). In scenario analysis where drug consumption spaces are implemented inside existing harm reduction structures, these ICERs decreased to €21, 400/QALY and €2, 500/QALY, respectively. Conclusions: Our findings show that DCRs are highly effective and efficient to prevent harms in PWID in France, and advocate extending this intervention to other cities by adding drug consumption spaces inside existing harm reduction centers. |
| Keywords: | Supervised injection facility, Modelling study, Injecting drug users, Harm reduction, Cost-effectiveness |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04720831 |
| By: | David Cuberes (Maynooth University); Aitor Lacuesta (Bank of Spain); Carlos Moreno-Pérez (Bank of Spain); Daniel Oto-Peralías (Universidad Pablo de Olavide) |
| Abstract: | This paper examines the relationship between land ownership concentration and the likelihood of hosting large green energy facilities, specifically mega-photovoltaic (PV) plants, defined as those exceeding 50 hectares. Focusing on Spain, we find that municipalities with a higher proportion of agricultural land concentrated in large farms are significantly more likely to accommodate mega PV plants. This effect remains robust after accounting for key factors influencing PV deployment, including terrain ruggedness, solar potential, and proximity to transmission lines and urban centers. To further neutralize unobserved factors that jointly influence land concentration and PV plant location, we leverage cadastral (parcel) data to conduct an intra-municipal analysis at the 0.5×0.5 km grid-cell level. Our findings reveal that grid cells with larger cadastral parcels have a substantially higher probability of being part of a mega PV facility. A simple theoretical model explains this pattern by highlighting the coordination challenges faced by small landowners. Unlike large ones, fragmented landholders struggle to meet developers’ land requirements, which are necessary to cover fixed project costs. Consistent with this mechanism, we also show that areas with irrigated agriculture are less likely to host mega PV plants and exhibit more unequal distributions of plant locations by land size. Finally, we provide external validity by confirming a similar positive association between mega PV plants and land concentration across U.S. counties. These findings underscore the implications of land inequality for the spatial distribution of renewable energy projects, shedding light on the limited local benefits of such investments and the growing opposition from rural communities. |
| Keywords: | solar plants; photovoltaic plants; land concentration. . |
| JEL: | O13 Q40 Q15 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:pab:wpaper:25.03 |
| By: | Manuel Hidalgo Pérez (Universidad Pablo de Olavide); Natalia Collado (Universidad de Comillas); Ángel Martínez Jorge (AFI) |
| Abstract: | The outbreak of the COVID-19 pandemic and Russia’s invasion of Ukraine in early 2022 severely disrupted energy markets, triggering a spike in global oil prices. To mitigate the impact on consumers, Spain introduced a fuel discount of 20 cents per liter, effective until the end of 2022. This study assesses the pass-through of the discount to retail prices using a combination of regression discontinuity (RD), difference-in-differences (DiD), and quantile regression approaches with daily data from over 11, 000 Spanish petrol stations. We analyze how different types of operators—vertically integrated, branded, and independent—responded to the policy and examine its impact on the retail price distribution. The results reveal a negative relationship between a station’s initial price and the pass-through of the discount, with lower-priced stations raising prices more in response to the policy. This pattern is particularly pronounced for diesel and among independent and retailer-managed branded stations, which captured a larger share of the subsidy. The quantile regressions further highlight that price increases were concentrated in the lower end of the price distribution, amplifying differences across station types. However, our DiD analysis shows that these effects were temporary, with price differentials gradually converging after approximately 36 to 43 days. Overall, the findings highlight how generalized public discounts can temporarily distort market dynamics and affect competitive conditions in the market. The study offers insights for the design of future subsidy programs, particularly regarding the role of market structure and financial constraints in shaping pass-through. |
| Keywords: | pass-through, discount, retail fuel prices, market structure, regression discontinuity, DiD, quantile regression. |
| JEL: | D12 Q41 Q48 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:pab:wpaper:25.01 |
| By: | Brühl, Volker |
| Abstract: | The European Green Deal (EGD) has the intention to transform the EU into a sustainable, resource efficient and competitive economy, ensuring zero net emissions of greenhouse gases (GHG) by 2050. This article illustrates the complex regulatory architecture of the EGD, which is often overlooked. While each of the initiatives is reasonable, their combined impact - often reinforcing each other - could impede Europe's global competitiveness, especially in a fragile economic environment. There are some fields where a thoughtful discussion about implementation deadlines and reporting requirements could help to resolve trade-offs between environmental objectives and competitiveness. |
| JEL: | A10 K20 L50 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:cfswop:325833 |
| By: | Drydakis, Nick |
| Abstract: | The study evaluates the effectiveness of a 12-week AI module delivered to non-STEM university students in England, aimed at building students' AI Capital, encompassing AI-related knowledge, skills, and capabilities. An integral part of the process involved the development and validation of the AI Capital of Students scale, used to measure AI Capital before and after the educational intervention. The module was delivered on four occasions to final-year students between 2023 and 2024, with follow-up data collected on students' employment status. The findings indicate that AI learning enhances students' AI Capital across all three dimensions. Moreover, AI Capital is positively associated with academic performance in AI-related coursework. However, disparities persist. Although all demographic groups experienced progress, male students, White students, and those with stronger backgrounds in mathematics and empirical methods achieved higher levels of AI Capital and academic success. Furthermore, enhanced AI Capital is associated with higher employment rates six months after graduation. To provide a theoretical foundation for this pedagogical intervention, the study introduces and validates the AI Learning-Capital-Employment Transition model, which conceptualises the pathway from structured AI education to the development of AI Capital and, in turn, to improved employment outcomes. The model integrates pedagogical, empirical and equity-centred perspectives, offering a practical framework for curriculum design and digital inclusion. The study highlights the importance of targeted interventions, inclusive pedagogy, and the integration of AI across curricula, with support tailored to students' prior academic experience. |
| Keywords: | Artificial Intelligence, AI literacy, AI Capital, University students, Grades, Academic performance, Employment rates |
| JEL: | I23 I21 J24 J21 O33 O15 I24 J15 J16 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:glodps:1668 |
| By: | Alberto Montagnoli; Miroslava Quiroga-Trevino; Christoph Thoenissen |
| Abstract: | This paper provides empirical evidence on the balance sheet channel of fiscal policy in peripheral European economies. Our findings using a Panel VAR, reveal that shifts in financial institutions' balance sheets following a debt-financed fiscal expansion, reduce credit provision and investment in these countries. Moreover, the analysis indicates that economies with higher sovereign exposure experienced higher credit crunches and investment declines. To explore the underlying mechanisms, we estimate a DSGE model that incorporates banks as primary holders of sovereign debt. The model shows that sovereign exposure amplifies the negative effects on credit supply, lowering investment and capital formation. A counterfactual scenario without bank-held sovereign bonds isolates the contribution of the balance sheet channel: removing this channel weakens the crowding-out effect, with investment falling 0.2 percentage points less and output increasing by 0.02 percentage points more. These effects appear stronger during the financial and sovereign debt crises. |
| Keywords: | SVAR;DSGE;Bayesian estimation;Fiscal policy;Sovereign debt;Credit;Euro Area. |
| JEL: | C11 E32 E44 E62 H63 |
| Date: | 2025–09 |
| URL: | https://d.repec.org/n?u=RePEc:bdm:wpaper:2025-12 |
| By: | Mariz Abdou; Hasan Dudu; Mrs. Kerstin Gerling; Dalia Kadissi |
| Abstract: | Taking the European Union’s Carbon Border Adjustment Mechanism (CBAM) as given, our paper evaluates the impact of this terms-of-trade shock on the Middle East and Central Asia (ME&CA). Using a novel methodology and fresh data applied to the latest CBAM legislation, we both quantify and decompose the financial burden countries face as their exports to the EU become subject to a greenhouse gas-based fee starting in January 2026. Our analysis reveals that while the average effects of CBAM in ME&CA are modest, the region will shoulder one of the highest burdens worldwide, totaling US$1.7 billion annually (equivalent to 0.03 percent of GDP and a 14 percent surcharge on CBAM exports to the EU). The Middle East, North Africa, Afghanistan, and Pakistan (MENAP) subregion will bear a greater share of this burden than the Caucasus and Central Asia (CCA) due to stronger trade ties with the EU and higher emission intensity. Substantial country- and sector-level differences in CBAM exposure emphasize the need for tailored policy responses to mitigate the broader macroeconomic effects. |
| Keywords: | Carbon Border Adjustment Measures; Carbon Leakage; Trade Policy; Middle East; Central Asia and Caucasus |
| Date: | 2025–09–12 |
| URL: | https://d.repec.org/n?u=RePEc:imf:imfwpa:2025/182 |
| By: | Natalia Jiménez-Jiménez (Universidad Pablo de Olavide); Elena Molis-Bañales (Universidad de Granada); Ángel Solano-García (Universidad de Granada) |
| Abstract: | In this paper, we analyze theoretically and experimentally the relationship of tax avoidance and voting decisions over the size of taxation. We propose a basic model of redistributive politics in which there are two types of voters (skilled and unskilled workers) and two exogenous tax schemes to vote for. We design a laboratory experiment to test the results of the model. We consider a control treatment where tax avoidance is not feasible. In the main treatments, only the high skilled workers are allowed to avoid taxes with a fixed cost that varies in two different treatments. We also consider two additional treatments with explicit or implicit information about tax avoidance decisions. The impossibility of tax avoidance favors the support for the high tax rate. A sufficiently high cost of tax avoidance makes unskilled workers vote mostly for a low tax rate and skilled workers opt for almost no tax avoidance. Nevertheless, if tax avoidance is cheap enough, a higher than predicted proportion of unskilled workers still vote for the low tax rate, even in a high tax avoidance context. The only effect of information occurs when the cost of tax avoidance is low, and it entails a decrease in tax avoidance levels. Finally, regardless the tax avoidance cost, a higher rate of tax avoidance yields to a higher likelihood of unskilled workers voting for the high tax rate, and, vice versa, a higher probability of voting for the high tax rate results in a higher tax avoidance level. |
| Keywords: | tax avoidance; voting; income inequality; real-effort task; information. |
| JEL: | C92 D72 H26 H30 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:pab:wpaper:25.07 |
| By: | Francesco Ravazzolo; Luca Rossini; Andrea Viselli |
| Abstract: | This paper introduces a novel Bayesian reverse unrestricted mixed-frequency model applied to a panel of nine European electricity markets. Our model analyzes the impact of daily fossil fuel prices and hourly renewable energy generation on hourly electricity prices, employing a hierarchical structure to capture cross-country interdependencies and idiosyncratic factors. The inclusion of random effects demonstrates that electricity market integration both mitigates and amplifies shocks. Our results highlight that while renewable energy sources consistently reduce electricity prices across all countries, gas prices remain a dominant driver of cross-country electricity price disparities and instability. This finding underscores the critical importance of energy diversification, above all on renewable energy sources, and coordinated fossil fuel supply strategies for bolstering European energy security. |
| Date: | 2025–06 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2506.23289 |
| By: | Zsámboki, Balázs; Doležal, Jakub; Singh, Jaspal; Leitner, Georg; Vasilakos, Stamatis |
| Abstract: | This paper explores the interplay between the risk- and leverage-based prudential and the resolution frameworks within the EU banking system. The prudential framework is designed to enhance the resilience of both individual banks and the banking sector as a whole. It does so by imposing minimum capital requirements and capital buffers that can absorb losses during periods of financial stress. Conversely, the resolution framework focuses on ensuring that banks have adequate loss-absorbing and recapitalisation capacity to facilitate an orderly resolution process, thereby safeguarding public funds. The simultaneous use of capital across and within these two frameworks can have an impact on the effectiveness of capital buffers, presenting various challenges for macroprudential authorities. Our analysis shows that overlaps between risk-based and leverage-based requirements within the prudential framework reduce buffer usability to around 65% to 74% of the overall combined buffer requirement. When the resolution framework is also considered, buffer usability further declines to an average of 40% to 50%, depending on the analytical approach employed. Our simulations of buffer usability under different regulatory options discussed in the literature suggest that implementing the final Basel III standards in the EU would significantly increase buffer usability. The paper also analyses the impact of other options that could reduce or eliminate overlaps between capital buffers and other parallel requirements and quantifies the trade-offs between increased buffer usability and the costs of implementation. As resolution requirements are fully phased in as of 2024, the future evolution of buffer usability and the potential challenges for macroprudential authorities will also depend on how banks set their capital targets relative to the parallel frameworks and how they adapt their balance sheet structures to meet prudential and resolution requirements. JEL Classification: G21, G28, G32 |
| Keywords: | banking regulation, buffer usability, capital requirements, macroprudential policy |
| Date: | 2025–09 |
| URL: | https://d.repec.org/n?u=RePEc:ecb:ecbops:2025374 |
| By: | Silvester van Koten |
| Abstract: | The central instruments of a cap-and-trade program are its abatement schedule and a system of guardrails designed to prevent permit prices from becoming excessively high or low. I argue that these instruments are currently poorly aligned in the EU’s cap-and-trade flagship climate policy, the EU ETS. I argue that the abatement schedule risks being overly ambitious and that the ETS’ existing guardrails, the Market Stability Reserve (MSR), do not offer sufficient protection against extreme prices. This misalignment may result in substantial economic costs and could ultimately undermine public support for the ETS. This paper recommends consideration of more effective guardrails, such as the well-established the price collar as implemented in California’s cap-and-trade program. |
| Keywords: | EU Emissions Trading System (EU ETS), Market Stability Reserve (MSR), net zero, abatement path, price collar |
| Date: | 2025–07 |
| URL: | https://d.repec.org/n?u=RePEc:cer:papers:wp799 |