Persistence and ability in the innovation decisions

The main concern of this paper is to analyse the complementarities between the decisions to carry out both product and process innovations. We also try to identify the main determinants of the innovation activity as well as to separate the experience effect of the firm (capacities, routines as organization) from the experience effect of the manager (skills, abilities). It has been common when facing the study of technological change, to consider innovation as a homogeneous activity. The main analyses have focused on the determinants of such activity trying to explain decisions, counts or R and D expenses in the context of a unique activity. Several recent works, however, are worried about the possibility of analysing innovation distinguishing among different types according to the final purpose of this activity. We focus on two different decisions, product and process innovations, using typical discrete choice specifications (univariate and bivariate models) and also binary choice models with heterogeneity. Among the results, we find complementary but asymmetric effects concerning both decisions in static models even controlling heterogeneity. We also test whether the persistence in conducting innovation activities matter. We do so in an extensive database that provides information about manufacturing firms. Our results point towards the importance of both ability of the manager (unobserved heterogeneity) and experience of the firm (dynamics in the equation indicator)

Combining input-output analysis and micro-simulation to assess the effects of carbon taxation on Spanish households

This paper explores the effects of a tax levied on Spanish energy-related CO2 emissions. After justifying the relevance of carbon taxation in the Spanish context, we consider the introduction of a product (fossil-fuel) tax with a rate obtained through the ‘actual damage cost’ method. Our empirical analysis proceeds in two stages. First, we employ an input-output demand model to calculate the price changes after the introduction of carbon taxation. In a second stage, simulation with Spanish household micro-data for 1994 yields the environmental and economic effects of a Spanish carbon tax. We find a limited short-run reaction to the carbon tax, which hampers its environmental success. The carbon tax burden is, however, significant, with a proportional distribution across households.

Discrete choice models of labour suppluy, behavioural microsimulation and the Spanish tax reform

In this paper, we demonstrate the potential of behavioural microsimulation models as powerful tools for the ex ante evaluation of public policies. The subject of our analysis is the impact of recent Spanish Income Tax reforms on efficiency and household and social welfare. We also analyze the likely effects of some basic income - flat tax and vital minimum - flat tax schemes. The analysis is carried out using a microsimulation model in which labour supply is explicitly taken into account. Instead of following the traditional continuous approach (Hausman 1981, 1985a, and 1985b), we estimate the direct utility function using the methodology proposed by Van Soest (1995). Our data come from a sample of Spanish individuals in the 1995 wave of the EC Household Panel. We show that in the Spanish case, the redistribution policies considered have only little impact on the efficiency of the economy. On the contrary, they strongly affect social welfare.microsimulation models ; evaluation of public policies

Microsimulating the Effects of Household Energy Price Changes in Spain

In this paper we present a microsimulation model to calculate the effects of hypothetical ex-ante price changes in the Spanish energy domain. The model rests on our prior estimation of a demand system which is especially designed for simultaneous analysis of different energy goods and uses household data from 1973 to 1995. Our objective is to obtain in-depth information on the behavioural responses by different types of households, which will allow us to determine the welfare effects of such price changes, their distribution across society and the environmental consequences within the residential sector. Although the model used is able to reproduce any type of price change, we illustrate the paper with an actual simulation of the effects of energy taxes that resemble a 50 Euro tax on CO2 (carbon dioxide) emissions. The results show a significant response by households, sizeable emission reductions, tax revenues, welfare changes and distributional effects. The simulated policy can thus be considered a feasible option to tackle some of the current and severe inefficiencies in Spanish energy and environmental domains.Energy, taxation, demand, Spain; CO2

PERSISTENCE AND ABILITY IN THE INNOVATION DECISIONS

The main concern of this paper is to analyse the complementarities between the decisions to carry out both product and process innovations. We also try to identify the main determinants of the innovation activity as well as to separate the experience effect of the firm (capacities, routines as organization) from the experience effect of the manager (skills, abilities). It has been common when facing the study of technological change, to consider innovation as a homogeneous activity. The main analyses have focused on the determinants of such activity trying to explain decisions, counts or R&D expenses in the context of a unique activity. Several recent works, however, are worried about the possibility of analysing innovation distinguishing among different types according to the final purpose of this activity. We focus on two different decisions, product and process innovations, using typical discrete choice specifications (univariate and bivariate models) and also binary choice models with heterogeneity. Among the results, we find complementary but asymmetric effects concerning both decisions in static models even controlling heterogeneity. We also test whether the persistence in conducting innovation activities matter. We do so in an extensive database that provides information about manufacturing firms. Our results point towards the importance of both ability of the manager (unobserved heterogeneity) and experience of the firm (dynamics in the equation indicator).

A Residential Energy Demand System for Spain

Sharp price fluctuations and increasing environmental and distributional concerns, among other issues, have led to a renewed academic interest in energy demand. In this paper we estimate, for the first time in Spain, an energy demand system with household microdata. In doing so, we tackle several econometric and data problems that are generally recognized to bias parameter estimates. This is obviously relevant, as obtaining correct price and income responses is essential if they may be used for assessing the economic consequences of hypothetical or real changes. With this objective, we combine data sources for a long time period and choose a demand system with flexible income and price responses. We also estimate the model in different sub-samples to capture varying responses to energy price changes by households living in rural, intermediate and urban areas. This constitutes a first attempt in the literature and it proved to be a very successful choice.households, energy, demand, spain, location

Consumption and habits : evidence from panel data

The purpose of this paper is to test for the presence of habit formation in consumption decisions using household panel data. We use the test proposed by Meghir and Weber (1996) and estimate the within -period marginal rate of substitution between commodities, which is robust to the presence of liquidity constraints. To that end, we use a Spanish panel data set in which households are observed up to eight consecutive quarters. This temporal dimension is crucial, since it allows us to take into account time invariant unobserved heterogeneity across households ("fixed effects") and, therefore, to investigate if the relationship between current and past consumption reflects habits or heterogeneity. Our results conf irm the importance of accounting for fixed effects when analyzing intertemporal consumption decisions allowing for time non-separabilities. Once fixed effects are controlled for and a proper set of instruments is used, the results yield supporting evidence of habit formation in the demand system of food at home, transport and services

A Macro and Microeconomic Integrated Approach to Assessing the Effects of Public Policies

Most public policies have not only efficiency but also distributional effects. However, there is a kind of trade-off between modeling approaches suitable for calculating each one of these impacts on the economy. For the former, most of the studies have been conducted with general equilibrium models, whereas partial equilibrium models represent the main approach for distributional analysis. This paper proposes a methodology which enables us to carry out an analysis of the distributional and efficiency consequences of public policies. In order to do so, we have integrated a microeconomic household demand model and a computable general equilibrium model for the Spanish economy. We illustrate the advantages of this approach by simulating a revenue-neutral reform in Spanish indirect taxation, with a reduction of VAT and a simultaneous increase of energy taxes. The results show that the reform brings about significant efficiency and distributional effects, in some cases counterintuitive, and demonstrate the academic and social utility of this approximation.Taxes, general equilibrium, micro modeling, efficiency, distribution

El culto a la virgen de Roncamador en Sangüesa

En número dedicado a: Navarr

Unobserved Heterogeneity and Intertemporal Nonseparability: Evidence from Consumption Panel Data

In this paper we analyze the importance of intertemporal non-separabilities for consumption decisions using household data. We follow the test suggested by Meghir and Weber (1996), so we exploit the variability of the within-period marginal rate of substitution (MRS) between commodities. We also check for the presence of liquidity constraints by comparing the results obtained from theMRS to those of the Euler equations. For that purpose, we use a Spanish data set in which households are observed up to eight consecutive quarters. This length of the temporal dimension is crucial, since it allows both to account for the dynamics of consumption in the preferences as well as to control for time invariant unobserved heterogeneity across households. Our results confirm the importance of accounting for fixed effects when analyzing intertemporal consumption decisions allowing for time non-separabilities. Once we control for fixed effects and use the adequate set of instruments we do not find evidence of misspecification and the results yield supporting evidence of habit formation.Consumption, panel data, unobserved heterogeneity, habits, durability