Austrian Institute of Economic Research

Displaying 1-40 of 72 results

  • White Papers // Aug 2011

    An Evaluation Of The Forecasting Performance Of Three Econometric Models For The Eurozone And The USA

    This paper compares the forecasting performance of three different econometric models for the Eurozone and the USA: a Vector Auto Regression (VAR), a Bayesian Vector Auto Regression (BVAR), and a Structural Vector Error Correction model (SVEC). The forecast evaluation is based on 19 vintages of real time data for output,...

    Provided By Austrian Institute of Economic Research

  • White Papers // Jun 2011

    The Modularity Of Technology And Organisations. Implications For The Theory Of The Firm

    This paper gives a selective overview on contributions studying issues of complexity, near-decomposability and modularity in relation to economic behaviour and the theory of the firm. In the first part the paper reviews contributions studying the relationship between human problem solving in the face of complex problems and the emergence...

    Provided By Austrian Institute of Economic Research

  • White Papers // Jun 2011

    Entrepreneurship And Cities: Evidence From The Post-Communist World

    This paper investigates variation in entrepreneurship across cities of Commonwealth of Independent States during 1995-2008, utilizing a unique dataset and employing the System Generalised Method of Moments technique. The authors' findings suggest that banking reform facilitates entrepreneurship, whereas the size of the state discourages it. Their results confirm a U-shaped...

    Provided By Austrian Institute of Economic Research

  • White Papers // Jun 2011

    Why Labour Market Performance Differed Across Countries. The Impact Of Institutions And Labour Market Policy

    This paper investigates the performance of labour markets during the recent crisis. While the crisis had started rather simultaneously across regions and countries, the length and deepness finally proved very heterogeneous. Some countries still have not rebounded, in others inflationary pressure has become a severe problem after output had surpassed...

    Provided By Austrian Institute of Economic Research

  • White Papers // May 2011

    The Gender Pay Gap In Austria: Tamensi Movetur!

    Policies to reduce the gender pay gap feature prominently on the political agenda and interventions in the labor market are frequently proposed, claiming a persistent wage gap. The authors examine the change of the gender wage gap in Austria between 2002 and 2007 with new data from administrative records and...

    Provided By Austrian Institute of Economic Research

  • White Papers // May 2011

    Job Creation And The Intra-Distribution Dynamics Of The Firm Size Distribution

    Based on a structural model for initial firm size, survival and firm growth the authors estimate firm-specific transition probabilities between size classes of the firm size distribution. This allows an assessment of the impact of different (counterfactual) economic policy measures on intra-distribution dynamics of the firm size distribution. They find...

    Provided By Austrian Institute of Economic Research

  • White Papers // Apr 2011

    International Propagation Of Financial Shocks In A Search And Matching Environment

    This paper develops a two-country multi-frictional model where the freeze on liquidity access to commercial banks in one country raises unemployment rates via credit rationing in both countries. The expenditure-switching channel, whereby asymmetric monetary shocks traditionally lead to negative comovements of home and foreign outputs, is considerably weakened via opposite...

    Provided By Austrian Institute of Economic Research

  • White Papers // Apr 2011

    Welfare Magnets, Taxation And The Location Decisions Of Migrants To The EU

    Migrants are among the groups most vulnerable to economic fluctuations. As predicted by the "Welfare magnet" hypothesis, migrants can therefore be expected to - ceteris paribus - prefer countries with more generous welfare provisions to insure themselves against labor market risks. This paper analyzes the role of the welfare magnet...

    Provided By Austrian Institute of Economic Research

  • White Papers // Apr 2011

    Geography, Institutions And Principles. Bits And Pieces Of Empirical Evidence From Small-Scale Banking

    Theory suggests that cross-border bank lending flow from rich countries to poor countries is facilitated when lending-related legal and social norms are shared and valued equally by both lenders and borrowers. According to this reasoning the fast adoption of Western-style democracy and market economy principles as established by European Union...

    Provided By Austrian Institute of Economic Research

  • White Papers // Mar 2011

    Do Commuters Suffer From Job-Education Mismatch?

    Internal commuters therefore have lower job-education mismatch than non-commuters. This is consistent with the hypothesis that spatial mobility improves job-education matches often voiced in the over-education literature. For cross-border commuters, however, results vary across regions. Cross-border commuters from EU15 countries have lower over- but higher under-education rates than non-commuters. This...

    Provided By Austrian Institute of Economic Research

  • White Papers // Feb 2011

    Cycles Inside Cycles: Spanish Regional Aggregation

    This paper sets out a comprehensive framework to identify regional business cycles within Spain and analyses their stylised features and the degree of synchronisation among them and the Spanish economy. The authors show that the regional cycles are quite heterogeneous although they display some degree of synchronisation that can be...

    Provided By Austrian Institute of Economic Research

  • White Papers // Feb 2011

    Venture Capital In Bank- And Market-Based Economies

    The determinants of venture capital investment have attracted a significant amount of attention from both academics and policymakers. The authors use a version of the Keuschnigg-Nielsen model for venture-capital-financed projects to condition their analysis on a reasonable set of exogenous variables but they focus on one determinant: financial market structure....

    Provided By Austrian Institute of Economic Research

  • White Papers // Feb 2011

    Educational Attainment And Education-Job Mismatch Of Cross-Border Commuters In The EU

    The author describes the extent and structure of cross-border commuting in the EU27 to show that this is important only in a small number of border regions with strong linguistic, historic or institutional ties. Cross-border commuters are mostly medium skilled, male manufacturing workers, who have higher over- but lower under-education...

    Provided By Austrian Institute of Economic Research

  • White Papers // Feb 2011

    Why Performance Differed Across Countries In The Recent Crisis. How Country Performance In The Recent Crisis Depended On Pre-Crisis Conditions

    The growth performance of countries proved to be very different during the recent financial crisis. The objective of the paper is to investigate why, despite the fact that the crisis hit countries simultaneously, the length and depth of the crisis turned out to be very different across countries. The authors...

    Provided By Austrian Institute of Economic Research

  • White Papers // Feb 2011

    New Social Risks Affecting Children. A Survey Of Risk Determinants And Child Outcomes In The EU

    Socio-economic transformations associated with the shift to post-industrial societies have not only created new opportunities and prosperity, but have also given rise to the emergence of new social risks occurring at different stages of life. This paper examines the situation of children, who can arguably be considered a particularly vulnerable...

    Provided By Austrian Institute of Economic Research

  • White Papers // Feb 2011

    Restructuring The Austrian Energy System: An Extended Technology Wedges Approach

    EU climate and energy policy defines ambitious objectives for the Member States requiring a fundamental change of energy systems. This paper suggests to base the analysis of restructuring options on energy services instead of energy flows. In order to provide the energy services in a sustainable way the guidelines "Low...

    Provided By Austrian Institute of Economic Research

  • White Papers // Jan 2011

    On The Change In The Austrian Business Cycle

    This paper analyzes the change in the Austrian business cycle over time using data back to 1954. The change in the cyclical pattern is captured using a nonlinear univariate structural time series model where the time of the break point is estimated. Results for GDP series suggest a break in...

    Provided By Austrian Institute of Economic Research

  • White Papers // Jan 2011

    Mode Of International Investment And Endogenous Risk Of Expropriation

    In this paper, the authors develop a politico-economic model to analyze the relationship between the mode of international investment and institutional quality in a non-democratic capital importing country. Foreign investors from a capital-rich North can either purchase productive assets in a capital-poor South or transfer their capital within integrated multinational...

    Provided By Austrian Institute of Economic Research

  • White Papers // Dec 2010

    Low-Wage Jobs: A Means For Employment Integration Of The Unemployed? Evidence From Administrative Data In Germany And Austria

    Does the low wage sector serve as a stepping stone towards integration into better-paid jobs or at least towards integration of jobless people into employment? There is evidence for a "Low-wage trap" and for a high risk of low-wage earners to get unemployed, but this may also be due to...

    Provided By Austrian Institute of Economic Research

  • White Papers // Nov 2010

    Financial Development, Financial Openness And Trade Openness: New evidence

    Employing the Pedroni co-integration technique and the GMM estimator, this paper aims at investigating the possible connection between financial development, financial openness and trade openness in twenty-nine Asian developing countries over 1994-2008. Firstly, the authors find a bidirectional causality between trade openness and financial development/openness. Secondly, the relationship between financial...

    Provided By Austrian Institute of Economic Research

  • White Papers // Nov 2010

    An Intertemporal Optimisation Model Of Households In An E3-Model (Economy/Energy/Environment) Framework

    This paper deals with the total CO2 impact of households in a simple dynamic E3-model (economy/energy/environment), comprising a model block of private consumption and an input-output model. The consumption model describes the demand for different durables and nondurables, derived from intertemporal optimisation and has been estimated econometrically with Austrian time...

    Provided By Austrian Institute of Economic Research

  • White Papers // Oct 2010

    Budget Consolidation In A Difficult Environment - Ten Guidelines Plus A Preliminary Reality Check

    There is evidence that a budget consolidation strategy can work with only a small and short lived negative impact on growth. However, this time consolidation is taking place in the aftermath of a deep crisis which had lead to increased levels of uncertainty. In addition the financial sector, as well...

    Provided By Austrian Institute of Economic Research

  • White Papers // Sep 2010

    Risk Aversion, Time Preference And Cross-Border Commuting And Migration Intentions

    This paper analyzes the effect of individual risk aversion and time preference on cross-border commuting and migration intentions. Both the theoretical and empirical results show that the probability of being willing to migrate decreases with risk aversion, the rate of time preference, and the maximum number of periods an individual...

    Provided By Austrian Institute of Economic Research

  • White Papers // Aug 2010

    The Impact Of Venture Capital On Innovation Behaviour And Firm Growth

    Proposing a novel research design for firm-level impact studies, the author investigates the effects of venture capital financing on corporate performance by applying a two-stage propensity score matching on Austrian micro-data. Controlling for differences in industry, location, legal status, size, age, credit rating, export and innovation behaviour, the findings assert...

    Provided By Austrian Institute of Economic Research

  • White Papers // Aug 2010

    Sectoral Productivity And Spillover Effects Of FDI In Latin America

    Empirical studies analyzing productivity effects of inward FDI in Latin America (LA) are inconclusive. The authors argue that investigating aggregate FDI masks interesting effects of FDI that take place within and across sectors. Moreover, the potential of FDI to generate productivity effects differs across sectors. For these reasons and because...

    Provided By Austrian Institute of Economic Research

  • White Papers // Jul 2010

    Firm Growth, European Industry Dynamics And Domestic Business Cycles

    Based on the empirical firm growth literature and on heterogeneous (microeconomic) adjustment models, this paper empirically investigates the impact of European industry fluctuations and domestic business cycles on the growth performance of European firms. Since the implementation of the Single Market Program (SMP) the EU 27 member states share a...

    Provided By Austrian Institute of Economic Research

  • White Papers // Jul 2010

    Milking The Prices: The Role Of Asymmetries In The Price Transmission Mechanism For Milk Products In Austria

    The authors assess empirically the vertical price transmission mechanism between producer and consumer prices of milk products in Austria using monthly data for the period from January 1996 to February 2010. They consider explicitly the existence of asymmetries in the adjustment to the long-run equilibrium using two different types of...

    Provided By Austrian Institute of Economic Research

  • White Papers // Jul 2010

    On The Design Of Data Sets For Forecasting With Dynamic Factor Models

    Forecasts from dynamic factor models potentially benefit from refining the data set by eliminating uninformative series. The paper proposes to use forecast weights as provided by the factor model itself for this purpose. Monte Carlo simulations and an empirical application to forecasting euro area, German, and French GDP growth from...

    Provided By Austrian Institute of Economic Research

  • White Papers // Jul 2010

    Can The Inclusion Of Calendar And Temperature Effects Improve Nowcasts And Forecasts Of Construction Sector Output Based On Business Surveys?

    For nowcasting and short term forecasting of industrial production and GDP, business surveys are a vital source of information. They cover information of the recent past as well as developments in the near future. Whereas variations in industrial production indices potentially cover weather conditions as well as variations due to...

    Provided By Austrian Institute of Economic Research

  • White Papers // Jun 2010

    FDI And Corporate Geography In The Home Country

    This paper contributes to the empirical literature on the home-country effects of FDI. Instead of comparing FDI firms to non-FDI firms, the authors look at what happens within multi-plant FDI firms and they compare headquarters to non-headquarter plants belonging to the same firm. Using survey data on Italian industrial firms,...

    Provided By Austrian Institute of Economic Research

  • White Papers // Jun 2010

    FDI, International Trade And Union Collusion

    This paper deals with firms' decision related to international activities in a two-country oligopoly model with a homogeneous product and unionized labor markets. Using a three-stage non-cooperative game with firms being first movers, it is found that firms' strategies are affected by the scale of fixed costs of direct investments,...

    Provided By Austrian Institute of Economic Research

  • White Papers // Jun 2010

    Near Is My Shirt But Nearer Is My Skin: Ideology Or Self-interest As Determinants Of Public Opinion On Fiscal Policy Issues

    Several empirical studies derive that personal positions with respect to policy measures are dominated by ideology instead of narrow self-interest. In the present field paper, the authors carried out a telephone survey with 1.003 respondents all over Austria. Instead of measuring selfishness indirectly by using more or less 'Objective indicators'...

    Provided By Austrian Institute of Economic Research

  • White Papers // Jun 2010

    Differences In Sick Leave Between Employed And Unemployed Workers: What Do They Tell Us About The Health Dimension Of Unemployment?

    Unemployed workers suffer from poor health conditions, a fact which is documented by a large number of studies covering objective health measures, satisfaction with health status and mortality. This paper contributes to the literature with an empirical analysis of sick leave micro-data from Austrian social insurance agencies. The data represent...

    Provided By Austrian Institute of Economic Research

  • White Papers // May 2010

    Post Crisis Policy: Some Reflections Of A Keynesian Economist

    This paper compares the depth and length of the recent crisis with the Great Depression in the nineteen thirties. It claims that economic policy played a crucial role in shortening and curtailing the recent crisis. The authors analyze which policies were applied during the Recent Crisis and which measures worked....

    Provided By Austrian Institute of Economic Research

  • White Papers // Apr 2010

    The Relationship between Competition And Inflation

    This paper supplements previous empirical work on the relationship between the average rate of inflation and competition by adding a new approach for estimating markups and investigating the annual rate of inflation, price variance and price levels. Subject to certain qualifications, markups can be interpreted as indicators for competition intensity....

    Provided By Austrian Institute of Economic Research

  • White Papers // Apr 2010

    Fiscal Governance And Government Investment In Europe Since The 1990s

    Stringent fiscal rules and budgetary procedures might generate incentives for political decision-makers to cut predominantly productive public investment during periods of fiscal consolidation. While the influence of the European Stability and Growth Pact on public investment received a lot of attention in the empirical literature, only a few studies consider...

    Provided By Austrian Institute of Economic Research

  • White Papers // Apr 2010

    Financial Integration In Autocracies: Greasing The Wheel Or More To Steal?

    This paper analyzes the influence of financial integration on institutional quality. The authors construct a dynamic political-economic model of an autocracy in which a ruling elite uses its political power to expropriate the general population. Although financial integration reduces capital costs for entrepreneurs and thereby raises gross incomes in the...

    Provided By Austrian Institute of Economic Research

  • White Papers // Apr 2010

    Composite Leading Indicator For The Austrian Economy. Methodology And "Real-time" Performance

    The aim of this paper was to construct a monthly composite leading indicator for the Austrian economy which shows early signs of cyclical turning points in the Austrian business cycle. So far, the only CLI (Composite Leading Indicator) available for Austria that is designed to provide such signals between expansions...

    Provided By Austrian Institute of Economic Research

  • White Papers // Apr 2010

    The EU Emission Trading Scheme. Insights From The First Trading Years With A Focus On Price Volatility

    The EU Emission Trading Scheme (EU ETS) is a key instrument in European climate policy. Evidence from the first trading period (2005-2007) and the first year of the Kyoto period 2008 dampened, however, ex-ante enthusiasm: because of substantial over-allocation of emissions allowances in the first trading period the overall emissions...

    Provided By Austrian Institute of Economic Research

  • White Papers // Mar 2010

    Boom-Bust Cycles And Trading Practices In Asset Markets, The Real Economy And The Effects Of A Financial Transactions Tax

    This paper begins with a puzzle. Over the past three decades, trading in asset markets has become progressively more short-term oriented ("Faster"), with traders attempting to exploit intraday price trends. Yet, over this time, asset prices have continued to move in a sequence of alternating "Bull markets" and "Bear markets",...

    Provided By Austrian Institute of Economic Research

  • White Papers // Aug 2010

    Sectoral Productivity And Spillover Effects Of FDI In Latin America

    Empirical studies analyzing productivity effects of inward FDI in Latin America (LA) are inconclusive. The authors argue that investigating aggregate FDI masks interesting effects of FDI that take place within and across sectors. Moreover, the potential of FDI to generate productivity effects differs across sectors. For these reasons and because...

    Provided By Austrian Institute of Economic Research

  • White Papers // Jun 2010

    FDI And Corporate Geography In The Home Country

    This paper contributes to the empirical literature on the home-country effects of FDI. Instead of comparing FDI firms to non-FDI firms, the authors look at what happens within multi-plant FDI firms and they compare headquarters to non-headquarter plants belonging to the same firm. Using survey data on Italian industrial firms,...

    Provided By Austrian Institute of Economic Research

  • White Papers // Jul 2010

    Firm Growth, European Industry Dynamics And Domestic Business Cycles

    Based on the empirical firm growth literature and on heterogeneous (microeconomic) adjustment models, this paper empirically investigates the impact of European industry fluctuations and domestic business cycles on the growth performance of European firms. Since the implementation of the Single Market Program (SMP) the EU 27 member states share a...

    Provided By Austrian Institute of Economic Research

  • White Papers // Aug 2010

    The Impact Of Venture Capital On Innovation Behaviour And Firm Growth

    Proposing a novel research design for firm-level impact studies, the author investigates the effects of venture capital financing on corporate performance by applying a two-stage propensity score matching on Austrian micro-data. Controlling for differences in industry, location, legal status, size, age, credit rating, export and innovation behaviour, the findings assert...

    Provided By Austrian Institute of Economic Research

  • White Papers // Feb 2010

    Employment, Inflation And Income Distribution In An Open Economy Pricing-To-Market In A Modified NAIRU Model

    The paper modifies a standard NAIRU model by implementing 'Pricing-to-market' as the basic assumption for the price setting behaviour of firms in an open economy. This entirely changes the outcomes of the model: First, inflation in equilibrium is stable at any rate of unemployment; the long-run Phillips curve is horizontal....

    Provided By Austrian Institute of Economic Research

  • White Papers // Dec 2009

    How To Measure Globalisation? A New Globalisation Index (NGI)

    In this paper, a new composite globalisation index will be presented. With its 21 variables, it accounts for the multidimensionality of this phenomenon instead of relying purely on economic indicators. As compared to other existing globalisation indices, three major innovations are introduced in this New Globalisation Index (NGI). Firstly, five...

    Provided By Austrian Institute of Economic Research

  • White Papers // Nov 2009

    The Impact Of FDI On Firm Survival In Italy

    The aim of the analysis is to investigate the impact of inward FDI on Italian manufacturing and services firm survival. The paper is organized in two steps. First, the authors carry out theoretically and empirically the analysis of firm survival distinguishing between foreign multinationals, domestic multinationals and domestic non multinational...

    Provided By Austrian Institute of Economic Research

  • White Papers // Jan 2010

    The Extent, Characteristics And Impacts Of FDI And Multinational Firm Activities - A Firm Level Analysis

    The paper examines the impact of Austrian outward Foreign Direct Investments (FDI) on home based parent company employment. The analysis is based on the AMADEUS firm-level database and an improved methodology by applying matching methods and the difference in difference estimator. In this way, the authors were able to overcome...

    Provided By Austrian Institute of Economic Research

  • White Papers // Jun 2010

    FDI, International Trade And Union Collusion

    This paper deals with firms' decision related to international activities in a two-country oligopoly model with a homogeneous product and unionized labor markets. Using a three-stage non-cooperative game with firms being first movers, it is found that firms' strategies are affected by the scale of fixed costs of direct investments,...

    Provided By Austrian Institute of Economic Research

  • White Papers // May 2011

    The Gender Pay Gap In Austria: Tamensi Movetur!

    Policies to reduce the gender pay gap feature prominently on the political agenda and interventions in the labor market are frequently proposed, claiming a persistent wage gap. The authors examine the change of the gender wage gap in Austria between 2002 and 2007 with new data from administrative records and...

    Provided By Austrian Institute of Economic Research

  • White Papers // Apr 2010

    Fiscal Governance And Government Investment In Europe Since The 1990s

    Stringent fiscal rules and budgetary procedures might generate incentives for political decision-makers to cut predominantly productive public investment during periods of fiscal consolidation. While the influence of the European Stability and Growth Pact on public investment received a lot of attention in the empirical literature, only a few studies consider...

    Provided By Austrian Institute of Economic Research

  • White Papers // Mar 2010

    Boom-Bust Cycles And Trading Practices In Asset Markets, The Real Economy And The Effects Of A Financial Transactions Tax

    This paper begins with a puzzle. Over the past three decades, trading in asset markets has become progressively more short-term oriented ("Faster"), with traders attempting to exploit intraday price trends. Yet, over this time, asset prices have continued to move in a sequence of alternating "Bull markets" and "Bear markets",...

    Provided By Austrian Institute of Economic Research

  • White Papers // Oct 2009

    Shirking, Endogenous Lay-off Rates And The A-Cyclicality Of The Real Wage

    The paper extends the Shapiro-Stiglitz (1987) efficiency wage model by endogenising the probability of worker displacement as a function of the change in the firm's employment. This creates counter-cyclical variation in the wage mark-up and thereby generates real wage persistence. A New Keynesian DSGE model equipped with this extension replicates...

    Provided By Austrian Institute of Economic Research

  • White Papers // Aug 2009

    The Current Economic Crisis: Causes, Cures And Consequences

    The financial crisis has brought with it an economic recessive which is more severe and widespread than any decline in production for the past 50 years. In the USA and Europe the decline in production over the entire economy was however much less than during the Great Depression of the...

    Provided By Austrian Institute of Economic Research

  • White Papers // Aug 2009

    Asset Price Fluctuations, Financial Crises And The Stabilizing Effects Of A General Transaction Tax

    The deepening of the recent crisis was driven by the simultaneous devaluation of stock wealth, housing wealth and commodity wealth. The potential for this devaluation process had been "Built up" during the boom of stock prices, house prices and commodity prices between 2003 and 2007. Hence, this paper sketches the...

    Provided By Austrian Institute of Economic Research

  • White Papers // Apr 2009

    The Financial Crisis As An Overshooting Phenomenon

    Inspired by Dornbusch's model of exchange rate overshooting the authors develop a theory of stock market behaviour. The idea is that stock market prices overshoot and undershoot their long-run equilibrium values which are determined by the development in the real economy. The overshooting is fuelled primarily by a loose monetary...

    Provided By Austrian Institute of Economic Research

  • White Papers // Dec 2008

    A Primer On Financial System Meltdown: The Economists' View

    The views on financial crises reviewed in this paper suggest that modern financial markets may have a lot in common with nuclear power stations. Both are capable of working for the good of humanity. Both work particularly well in times of no or little stress. Both can be made more...

    Provided By Austrian Institute of Economic Research

  • White Papers // Jan 2010

    Financial Instability And Optimal Monetary Policy Rule

    This paper investigates the effect of financial instability on the design of monetary policy rule for a small open economy. The authors find evidence that optimal monetary policy rule reacts directly to financial imbalances and, as a result, to the real exchange rate movements. However, optimal rule would not react...

    Provided By Austrian Institute of Economic Research

  • White Papers // Apr 2011

    International Propagation Of Financial Shocks In A Search And Matching Environment

    This paper develops a two-country multi-frictional model where the freeze on liquidity access to commercial banks in one country raises unemployment rates via credit rationing in both countries. The expenditure-switching channel, whereby asymmetric monetary shocks traditionally lead to negative comovements of home and foreign outputs, is considerably weakened via opposite...

    Provided By Austrian Institute of Economic Research

  • White Papers // Jan 2011

    Mode Of International Investment And Endogenous Risk Of Expropriation

    In this paper, the authors develop a politico-economic model to analyze the relationship between the mode of international investment and institutional quality in a non-democratic capital importing country. Foreign investors from a capital-rich North can either purchase productive assets in a capital-poor South or transfer their capital within integrated multinational...

    Provided By Austrian Institute of Economic Research

  • White Papers // Nov 2010

    Financial Development, Financial Openness And Trade Openness: New evidence

    Employing the Pedroni co-integration technique and the GMM estimator, this paper aims at investigating the possible connection between financial development, financial openness and trade openness in twenty-nine Asian developing countries over 1994-2008. Firstly, the authors find a bidirectional causality between trade openness and financial development/openness. Secondly, the relationship between financial...

    Provided By Austrian Institute of Economic Research

  • White Papers // Apr 2010

    Financial Integration In Autocracies: Greasing The Wheel Or More To Steal?

    This paper analyzes the influence of financial integration on institutional quality. The authors construct a dynamic political-economic model of an autocracy in which a ruling elite uses its political power to expropriate the general population. Although financial integration reduces capital costs for entrepreneurs and thereby raises gross incomes in the...

    Provided By Austrian Institute of Economic Research

  • White Papers // Jan 2010

    Financial Frictions, Foreign Direct Investment, And Growth

    This paper assesses the role of financial frictions and Foreign Direct Investment (FDI) on an economy's growth rate, business cycle volatility, and firm's capital structure. The authors gauge these effects within the Financial Accelerator framework, where entrepreneurs can establish affiliates of local firms abroad through Foreign Direct Investment. Model simulations...

    Provided By Austrian Institute of Economic Research

  • White Papers // Aug 2011

    An Evaluation Of The Forecasting Performance Of Three Econometric Models For The Eurozone And The USA

    This paper compares the forecasting performance of three different econometric models for the Eurozone and the USA: a Vector Auto Regression (VAR), a Bayesian Vector Auto Regression (BVAR), and a Structural Vector Error Correction model (SVEC). The forecast evaluation is based on 19 vintages of real time data for output,...

    Provided By Austrian Institute of Economic Research

  • White Papers // Jun 2011

    The Modularity Of Technology And Organisations. Implications For The Theory Of The Firm

    This paper gives a selective overview on contributions studying issues of complexity, near-decomposability and modularity in relation to economic behaviour and the theory of the firm. In the first part the paper reviews contributions studying the relationship between human problem solving in the face of complex problems and the emergence...

    Provided By Austrian Institute of Economic Research

  • White Papers // Jun 2011

    Entrepreneurship And Cities: Evidence From The Post-Communist World

    This paper investigates variation in entrepreneurship across cities of Commonwealth of Independent States during 1995-2008, utilizing a unique dataset and employing the System Generalised Method of Moments technique. The authors' findings suggest that banking reform facilitates entrepreneurship, whereas the size of the state discourages it. Their results confirm a U-shaped...

    Provided By Austrian Institute of Economic Research

  • White Papers // Jun 2011

    Why Labour Market Performance Differed Across Countries. The Impact Of Institutions And Labour Market Policy

    This paper investigates the performance of labour markets during the recent crisis. While the crisis had started rather simultaneously across regions and countries, the length and deepness finally proved very heterogeneous. Some countries still have not rebounded, in others inflationary pressure has become a severe problem after output had surpassed...

    Provided By Austrian Institute of Economic Research

  • White Papers // May 2011

    Job Creation And The Intra-Distribution Dynamics Of The Firm Size Distribution

    Based on a structural model for initial firm size, survival and firm growth the authors estimate firm-specific transition probabilities between size classes of the firm size distribution. This allows an assessment of the impact of different (counterfactual) economic policy measures on intra-distribution dynamics of the firm size distribution. They find...

    Provided By Austrian Institute of Economic Research

  • White Papers // Apr 2011

    Welfare Magnets, Taxation And The Location Decisions Of Migrants To The EU

    Migrants are among the groups most vulnerable to economic fluctuations. As predicted by the "Welfare magnet" hypothesis, migrants can therefore be expected to - ceteris paribus - prefer countries with more generous welfare provisions to insure themselves against labor market risks. This paper analyzes the role of the welfare magnet...

    Provided By Austrian Institute of Economic Research

  • White Papers // Apr 2011

    Geography, Institutions And Principles. Bits And Pieces Of Empirical Evidence From Small-Scale Banking

    Theory suggests that cross-border bank lending flow from rich countries to poor countries is facilitated when lending-related legal and social norms are shared and valued equally by both lenders and borrowers. According to this reasoning the fast adoption of Western-style democracy and market economy principles as established by European Union...

    Provided By Austrian Institute of Economic Research

  • White Papers // Mar 2011

    Do Commuters Suffer From Job-Education Mismatch?

    Internal commuters therefore have lower job-education mismatch than non-commuters. This is consistent with the hypothesis that spatial mobility improves job-education matches often voiced in the over-education literature. For cross-border commuters, however, results vary across regions. Cross-border commuters from EU15 countries have lower over- but higher under-education rates than non-commuters. This...

    Provided By Austrian Institute of Economic Research

  • White Papers // Feb 2011

    Cycles Inside Cycles: Spanish Regional Aggregation

    This paper sets out a comprehensive framework to identify regional business cycles within Spain and analyses their stylised features and the degree of synchronisation among them and the Spanish economy. The authors show that the regional cycles are quite heterogeneous although they display some degree of synchronisation that can be...

    Provided By Austrian Institute of Economic Research

  • White Papers // Feb 2011

    Venture Capital In Bank- And Market-Based Economies

    The determinants of venture capital investment have attracted a significant amount of attention from both academics and policymakers. The authors use a version of the Keuschnigg-Nielsen model for venture-capital-financed projects to condition their analysis on a reasonable set of exogenous variables but they focus on one determinant: financial market structure....

    Provided By Austrian Institute of Economic Research

  • White Papers // Feb 2011

    Educational Attainment And Education-Job Mismatch Of Cross-Border Commuters In The EU

    The author describes the extent and structure of cross-border commuting in the EU27 to show that this is important only in a small number of border regions with strong linguistic, historic or institutional ties. Cross-border commuters are mostly medium skilled, male manufacturing workers, who have higher over- but lower under-education...

    Provided By Austrian Institute of Economic Research

  • White Papers // Feb 2011

    Why Performance Differed Across Countries In The Recent Crisis. How Country Performance In The Recent Crisis Depended On Pre-Crisis Conditions

    The growth performance of countries proved to be very different during the recent financial crisis. The objective of the paper is to investigate why, despite the fact that the crisis hit countries simultaneously, the length and depth of the crisis turned out to be very different across countries. The authors...

    Provided By Austrian Institute of Economic Research

  • White Papers // Feb 2011

    New Social Risks Affecting Children. A Survey Of Risk Determinants And Child Outcomes In The EU

    Socio-economic transformations associated with the shift to post-industrial societies have not only created new opportunities and prosperity, but have also given rise to the emergence of new social risks occurring at different stages of life. This paper examines the situation of children, who can arguably be considered a particularly vulnerable...

    Provided By Austrian Institute of Economic Research

  • White Papers // Feb 2011

    Restructuring The Austrian Energy System: An Extended Technology Wedges Approach

    EU climate and energy policy defines ambitious objectives for the Member States requiring a fundamental change of energy systems. This paper suggests to base the analysis of restructuring options on energy services instead of energy flows. In order to provide the energy services in a sustainable way the guidelines "Low...

    Provided By Austrian Institute of Economic Research

  • White Papers // Jan 2011

    On The Change In The Austrian Business Cycle

    This paper analyzes the change in the Austrian business cycle over time using data back to 1954. The change in the cyclical pattern is captured using a nonlinear univariate structural time series model where the time of the break point is estimated. Results for GDP series suggest a break in...

    Provided By Austrian Institute of Economic Research

  • White Papers // Dec 2010

    Low-Wage Jobs: A Means For Employment Integration Of The Unemployed? Evidence From Administrative Data In Germany And Austria

    Does the low wage sector serve as a stepping stone towards integration into better-paid jobs or at least towards integration of jobless people into employment? There is evidence for a "Low-wage trap" and for a high risk of low-wage earners to get unemployed, but this may also be due to...

    Provided By Austrian Institute of Economic Research

  • White Papers // Nov 2010

    An Intertemporal Optimisation Model Of Households In An E3-Model (Economy/Energy/Environment) Framework

    This paper deals with the total CO2 impact of households in a simple dynamic E3-model (economy/energy/environment), comprising a model block of private consumption and an input-output model. The consumption model describes the demand for different durables and nondurables, derived from intertemporal optimisation and has been estimated econometrically with Austrian time...

    Provided By Austrian Institute of Economic Research