Innovation and Economic Growth in European Union. Panel Data Analysis

JEL Classifications: O33, O30, O47This study examines the relationship between technological innovation and economic growth in European Union countries over the period 1993-2011. Using Blundell and Bond (1998) generalized method of the moments estimation technique, the study provides evidence that R&D expenditures and patent activities differ in terms of fostering economic growth between EU-15 and EU-13 countries. The main results indicate that there is no significant impact of R&D expenditures on the economic growth and that patent activities determine economic growth in EU-13 subsample and EU-28 as a whole. The study suggests that there may be no one particular recipe for growth for all EU countries and put into question whether setting common numerical targets in EU’s innovation policy makes economic sense

Gender Pay Gap: A Macro Perspective

This paper examines the factors influencing the gender wage gap by using an unbalanced cross-country aggregated panel data set for a sample covering 53 economies for the period 1995–2010. Using robust estimators proposed by Lewbel (2012) to correct for heterogeneity and endogeneity, results suggest that a higher female share in the industry sector tends to widen the gender wage gap regardless of a country’s development stage. While having more children widens the gender wage gap, as expected, the effect is only statistically significant for developing countries. In developed countries, more labor force participation by women seems to narrow the gender wage gap, probably due to the number of female labor market entrants taking up higher-paying service sector jobs. For developing countries, closing the gender gaps in labor force participation and education is not sufficient to achieve gender wage parity. Higher-paying jobs should be created by developing the service sector in these economies

Commodity Market Dynamics and the Joint Executive Committee (1880-1886)

Using weekly spot and future commodity prices in Chicago and New York, we construct expected transportation rates for grain between these two cities, expected inventory levels in New York, and realized errors in the expectations of such variables. We incorporate these exogenous com- modity market dynamics into Porter’s (1983) structural modeling of the Joint Executive Committee Railroad Cartel. As in Porter, we model mar- ginal cost as a parametric function of (instrumented) output, among other factors. Unlike Porter, we model pricing over marginal cost as a nonparamet- ric function of a set of variables, which include expectations of deterministic demand cycles and cartel stability. We estimate the pricing and demand equation simultaneously and semiparametrically. Our estimated weekly markups during periods of cartel stability are shown to reflect optimal collu- sive pricing over deterministic business cycles, as modeled in Haltiwanger and Harrington (1991). Periods of cartel instability are proven to be triggered by realized mistakes in expectations of New York grain prices

Why has China grown so fast? The role of physical and human capital formation

Cross-province growth regressions for China are estimated for the reform period. Two research questions are asked. Can the regressions help us to understand why China as a whole has grown so fast? What types of investment matter for China's growth? We address the problem of model uncertainty by adopting two approaches to model selection to consider a wide range of candidate predictors of growth. Starting from the baseline equation, the growth impact of physical and human capital is examined using panel data techniques. Both forms of capital promote economic growth. ‘Investment in innovation’ and private investment are found to be particularly important. Secondary school enrolment contributes to growth, and higher education enrolment even more so

FLIAT, an object-relational GIS tool for flood impact assessment in Flanders, Belgium

Floods can cause damage to transportation and energy infrastructure, disrupt the delivery of services, and take a toll on public health, sometimes even causing significant loss of life. Although scientists widely stress the compelling need for resilience against extreme events under a changing climate, tools for dealing with expected hazards lag behind. Not only does the socio-economic, ecologic and cultural impact of floods need to be considered, but the potential disruption of a society with regard to priority adaptation guidelines, measures, and policy recommendations need to be considered as well. The main downfall of current impact assessment tools is the raster approach that cannot effectively handle multiple metadata of vital infrastructures, crucial buildings, and vulnerable land use (among other challenges). We have developed a powerful cross-platform flood impact assessment tool (FLIAT) that uses a vector approach linked to a relational database using open source program languages, which can perform parallel computation. As a result, FLIAT can manage multiple detailed datasets, whereby there is no loss of geometrical information. This paper describes the development of FLIAT and the performance of this tool

Economic Development and Female Labor Force Participation in the Middle East and North Africa: A Test of the U-Shape Hypothesis

This paper investigates the relationship between economic development and female labor force participation in the Middle East and North Africa (MENA). Using a panel data set of 20 countries in the region for the period of 1990-2012, I develop an econometric model that tests the U-shape hypothesis. This study builds upon previous literature examining the U-shape hypothesis in time series studies for developing countries, and cross-country studies. The results of this paper suggest that there is a U-shaped relationship between economic growth and female labor force participation rates. The MENA region’s low female labor force participation rates can be explained in part by their transition towards the bottom of the U-shaped curve

The impact of financial inclusion interventions on the economy of Calderdale – final technical report

This study quantifies the wider effects of financial inclusion interventions in Calderdale on both the local and regional economy

Financing Direct Democracy: Revisiting the Research on Campaign Spending and Citizen Initiatives

The conventional view in the direct democracy literature is that spending against a measure is more effective than spending in favor of a measure, but the empirical results underlying this conclusion have been questioned by recent research. We argue that the conventional finding is driven by the endogenous nature of campaign spending: initiative proponents spend more when their ballot measure is likely to fail. We address this endogeneity by using an instrumental variables approach to analyze a comprehensive dataset of ballot propositions in California from 1976 to 2004. We find that both support and opposition spending on citizen initiatives have strong, statistically significant, and countervailing effects. We confirm this finding by looking at time series data from early polling on a subset of these measures. Both analyses show that spending in favor of citizen initiatives substantially increases their chances of passage, just as opposition spending decreases this likelihood