Research in Economics最新文献

The paper provides accurate theoretical results regarding the consequences of heterogeneities between the preferences or between the structural parameters of the member countries of a monetary union on monetary and fiscal policies, and on the stabilization of economic activity and inflation, in case of supply shocks. Economic activity and inflation are higher (smaller) in a country affected by a positive (negative) symmetric or asymmetric supply shock, despite the more contractionary (expansionary) fiscal policy in this country. In this context, we find that monetary unification could be more painful for a country with a small preference for stabilizing the budget deficit or economic activity, and on the contrary with a high preference for stabilizing inflation. Besides, regarding structural heterogeneities, monetary unification could be more painful for a country with strong transmission mechanisms of monetary policy or with a small budget multiplier. Membership in a monetary union could also be more painful for a country with a high (if the shock is symmetric) or small (if the shock is asymmetric) sensitivity of national prices to foreign prices. Regarding symmetric supply shocks, it could also be more painful for a country with a high sensitivity of national prices to national economic activity, or with a small sensitivity of its demand to foreign activity.

Since 2015, several U.S. states have begun granting professional or occupational licenses to recipients of the Deferred Action for Childhood Arrivals (DACA) program. In this study, we examine the differences in the issuance of such licenses at the state level to estimate their effect on the labor market outcomes of DACA recipients. Using data from the Current Population Survey spanning the period from 2012 to 2020, we find that granting access to occupational licensing has had a significant positive impact on the wages of DACA recipients, raising them by 12.5 percent. We also observe that this wage premium is greater for male recipients than for female ones. Furthermore, we find that the wage premium and increased hours of work resulting from access to licenses are most pronounced for recipients over 24 years of age who have completed their formal education and have already established their careers. These findings suggest that access to occupational licenses can improve the labor market outcomes of Dreamers. Therefore, expanding access to public benefits, such as licensing, can substantially benefit DACA recipients in states where such access has been broadened.

This study analyzes the effects of firm performance on CEO compensation and CEO pay ratio (the ratio of CEO compensation and the median employee's salary) before and during the COVID-19 pandemic. Using a sample of 4410 observations from S&P 1500 firms from 2018 to 2021, we find that CEO compensation and CEO pay ratio increased during the COVID-19. Firm performance, measured by return on assets and log term of firm's sales, positively affect CEO compensation and CEO pay ratio. However, the effects are the same before and during the COVID-19 pandemic.

This paper investigates the link between close banking relationships and European manufacturing firms’ defaults. Based on binary outcomes (i.e., Logit, Probit, Complementary log-log) and discrete-time models, the empirical analysis reveals that enduring lending relationships present benefits in reducing firms’ temporary and permanent defaults. This evidence suggests that, in a framework of limited credit access that may compromise firms’ survival, relationship lending might represent an effective tool for overcoming asymmetric information problems, helping firms relax credit constraints, encouraging greater discipline in their managers, and preventing failure.

Comparison among Cournot, Bertrand and monopolistic competition receives recent attention in industrial organization, but not in New Economic Geography. To fulfill this gap, we examine how the difference in market structures affects industry location in a footloose capital model. We find that the home market effect is strongest in Cournot competition, second strongest in Bertrand competition, and weakest in monopolistic competition. And, we link the insights in industrial organization with our model of geography.

Migration has increased in many parts of the world for a variety of reasons. In our study, we examine bilateral migration flows between one country and the rest of the world. To this end, we develop a formal model that assumes rational individuals and which is partly based on insights from the micro-theory of migration. In doing so, we include human development and distinguish between regular and aysl-related migration. We test the model empirically on the example of Germany. It turns out that climate change and life expectancy have a significant impact on migration. Contrary to our expectations, the economic development, the extent of social assistance and the level of education do not seem to have any significant influence. With our paper, we expand previous research on migration with an empirically based model.

This study explores the effects of monetary transaction costs on economic growth in a closed overlapping generations economy with cash-in-advance constraints. Working generations can also hold interest-bearing capital claims. Economic growth is powered by an engine of learning-by-doing and knowledge spillover among workers. The results indicate that reductions in transaction costs raise the balanced growth rate and possibly reduce long-term inflation and nominal interest rates.

Flooding poses significant costs to communities and is expected to vary in intensity and severity in the future. Previous research has shown that major flooding events significantly affect housing markets; however, perceptions of non-destructive flooding events have not been adequately studied. In this paper, I examine the housing price capitalization of elevated river levels that did not reach the major flood stage to measure their influence on flooding risk perceptions. Estimates from a property fixed effects hedonic model provide evidence that housing prices respond heterogeneously to non-destructive flooding, with a negative and significant effect in the 100 year floodplain, but not the 500 year floodplain or other areas. These results show that a major event is not necessary for residents to update their beliefs and can inform future extreme natural event policy.

This study investigates the financial development and remittances nexus using a panel of 84 countries at all levels of income over the 1995 to 2018 period. We employ a dynamic commonly correlated effects estimator (DCCE) for a heterogeneous panel data model with weakly exogenous regressors to investigate the impact of financial development on remittances using indices that cover all aspects of the financial sector development (overall, institutional, and markets). The results indicate the importance of the development of the financial sector for remittance inflows, regardless of the motives. Our findings generally support the notion that improving the financial sector positively influences the magnitude of remittances for lower-income countries but not high-income countries. To attract more remittances, policymakers of low-income countries may implement policies that improve the development of the financial sector.