A Multidimensional poverty analysis: evidence from Italian data

Conventional poverty measures, showing that poverty and inequality have increased in Italy over the past fifteen years, are based on household income. The main drawback of this method is that it does not include other non-monetary variables relevant for defining households’ necessities. It is now widely agreed that poverty should be conceptualised as a multidimensional phenomenon, more related to the standard of living of the person or household than to the simple inability of satisfying basic subsistence needs. In this paper we propose to measure poverty in Italy by complementing income information with non-monetary indicators. To this end a multidimensional poverty analysis is performed by using a representative sample based on the first wave (2004) of the Italian component of the European Statistics on Income and Living Conditions (EU-SILC). Starting from the concept of deprivation, a non linear principal component analysis is applied to selected items in order to reveal underlying latent dimensions to be interpreted as deprivation indicators. We then examine how such measures can be combined with income measures in order to obtain a better identification of the poor. Finally we examine the overlapping between the income poor and the deprived and provide an analysis of deprivation profiles. Our results show that a more comprehensive poverty measure, combining deprivation criteria and income poverty, leads to a different identification of poor people, compared to analyses based only on income measures

How Does the Public Spending Affect Technical Efficiency? Some Evidence from 15 European Countries

The relationship between government size and economic growth has been widely debated. Departing from this issue, we provide an empirical analysis of the impact of government size on technical efficiency. The aim of this paper is to estimate by using a True Random Effect model the impact of public sector’s size and of public expenditure components on 15 European countries’ technical efficiency from 1996 to 2011. Using the total public expenditure as a proxy for the government size we estimate simultaneously national optimal production function and technical efficiency model by controlling for income distribution and institutional quality. Our main findings show that the effect of public sector’s size on efficiency is positive while the type of public expenditures may have both positive and negative impact. In more details, results suggest that social protection, cultural, and health expenditures have a positive effect on technical efficiency, while others have a negative impact. More controversial is the impact of education expenditure, even if a positive effect on efficiency prevails when controlling for heteroscedasticity

The impact of climate change on the distribution of rural income in Ethiopia

Recent evidence suggests that global climate change is likely to increase the incidence of environmental disasters, as well as the frequency of extreme weather events. As a result, it is generally recognized that climate and weather variability has negative impacts on households’ welfare relying mainly on agriculture. In Ethiopia, 95% of the population depends on rain-fed agriculture and consequently the economic impact of climate change is crucial for small-scale farmers’ food security and welfare. The objective of this study is to provide a comprehensive analysis of the impact of climate change on rural households’ welfare in Ethiopia by using a Quantile Regression (QR) analysis. The main econometric results show that the elasticity of crop income with respect to rainfall varies across quantiles. It is confirmed that there is a non-linear relationship between climatic variables and income

Innovation for climate change adaptation and technical efficiency: an empirical analysis in the European agricultural sector

This paper analyses the effect of innovation on firms’ technical efficiency. Using climate-related patent data to proxy for innovation activity in different technological fields, the paper employs a stochastic frontier approach to estimate the impact of innovative efforts on agricultural firms’ technical efficiency taking account of both unobservable heterogeneity and double heteroscedasticity in the inefficiency and idiosyncratic terms. Our findings confirm that innovation has a positive impact on firms’ productivity (technical efficiency). While agricultural firms located in Germany and Sweden are more efficient compared to those in southern countries, all the European countries considered are distant from the maximum production frontier. This leaves room for governments to design economically sustainable agriculture policies, incentivize firms and foster technological innovation to achieve adaptations to present and future changes in climate

Climate variability, innovation and firm performance: evidence from the European agricultural sector

It is generally accepted that adaptation to climate variability requires a technological advancement strategy. However, the innovation process has received little explicit consideration in this framework. We employ a panel endogenous switching regression model to explore whether and to what extent climate variability affects firm performance through the ability to induce the development of adaptation innovations in key resource-based sectors in Europe during the period 2007–2017. Our findings confirm that the knowledge generation process at the heart of climate change adaptation technologies enhances firm performance, especially for firms in the aquaculture and fishing sub-sectors in northern European countries

Climate impacts on nutrition and labor supply disentangled – an analysis for rural areas of Uganda

The entire agricultural supply chain, from crop production to food consumption, is expected to suffer significant damages from climate change. This paper empirically investigates the effects of warming on agricultural labor supply through variation in dietary intake in rural Uganda. We examine labor supply, food consumption, and overall social welfare under various climate change scenarios. First, we combine nationally representative longitudinal survey data with high-resolution climatic data using an instrumental variable approach. Controlling for calorie intake, our study shows that warming has a non-linear impact on agricultural labor supply, with the number of hours worked being optimized at an optimal temperature of 21.3°C. Using these econometric estimates to parametrize an overlapping generations model, we find that under RCP8.5, output per adult decreases by 20 per cent by the end of the century due to the combined effect of climate change on food consumption and labor supply