The effect of income distribution and fiscal policy on growth, investment, and budget balance: the case of Europe

This paper develops a multi-country Post-Kaleckian model augmented by a government sector with public spending and taxes on consumption, labour and capital and estimates it for the EU15 countries. We estimate country specific equations to find the effect of income distribution, public spending and taxes on growth, on each component of private aggregate demand (i.e., consumption, investment, and net exports) and on budget balance for the EU15 countries. Next, we calculate a Europe-wide multiplier based on the responses of each country to changes not only in domestic income distribution, taxation and government expenditure but also to changes in the other European countries’ wage share, taxes and public spending. One novelty of this paper is that it goes beyond an isolated country-by-country analysis and integrates cross-country effects of a simultaneous change in the wage share on demand in Europe in a government augmented Post-Kaleckian model.Extending the model by taxes on labour and capital increases the likelihood of a wage-led economic regime. The fiscal multiplier effects are much stronger when policies are implemented simultaneously, and wage, tax and public spending policies are integrated into the policy mix. The impact of egalitarian wage policies are positive but small; the overall stimulus becomes much stronger when mixed with fiscal expansion. Expansionary fiscal policy is sustainable when wage, public spending and progressive tax policies are combined. The analysis of the paper can guide the development of a fiscal and wage policy mix conducive to equitable development

A coordinated mix of public investment and incomes policies for sustainable development in Europe

This policy brief presents the impact of a coordinated policy mix of increased public investment together with more progressive taxation and labour market policies to improve income distribution in Europe. Based on an econometric model for individual EU Member states, we simulate a policy scenario of a simultaneous increase in public investment by 1% of GDP along with more progressive taxation (increasing effective tax burden on capital by 1% and decreasing tax burden on labour by 1%) and an increase in the wage share by 1% of GDP in each country. The result is 6.6% higher GDP in the EU. Even private investment increases by 1.5% as a ratio to GDP (on average in Europe) as an outcome of this policy mix; i.e. public spending does not crowd out but rather crowds in private investment. Despite the rise in public spending, the budget balance in Europe improves (by 0.8% as a ratio to GDP) because the beneficial fiscal effects of higher economic growth and higher tax rates on capital prevail. Growth and private investment improves both in the periphery and core countries of Europe. The concerns regarding the inflationary effects of wage increases are also not supported by empirical evidence. This policy mix will lead to only a modest 1.5 percentage point increase in price level in Europe on average. Hence wage-led and public investment-led growth are complimentary and feasible. Such a coordinated policy mix, along with a properly designed industrial policy can ensure genuine regional convergence and social cohesion in Europe

The role of public spending and incomes policies for investment and equality-led development in the UK

This policy brief presents how a mix of fiscal and labour market policies could affect growth, investment and public budget in the UK. Based on an econometric model, we simulate the joint impact of an increase in public spending by 1% of GDP (about £20bn per year) along with more progressive taxation (increasing effective tax burden on capital by 1% and decreasing tax burden on labour by 1%) and an increase in the wage share by 1% of GDP. As a result, GDP increases by 3.7%. Private investment increases as well by 0.7% as a ratio to GDP. The budget balance in the UK improves by 0.2% as a ratio to GDP. Inflation increases only slightly: the price level goes up by 1.8 percentage points. The effects are even more favourable if policies are implemented simultaneously together with our trade partners in the EU

Swedish LifeWatch ─ a biodiversity infrastructure integrating and reusing data from citizen science, monitoring and research

With continued pressure on biodiversity and ever-growing conflicts with human development, qualified systems for scenario modelling, impact assessment and decision support are urgently needed. Such systems must be able to integrate complex models and information from many sources and do so in a flexible and transparent way. To that end, as well as for other complicated and data-intensive biodiversity research purposes, the concept of LifeWatch has emerged. The idea of LifeWatch is to construct e-infrastructure and virtual laboratories by integrating large data sources, computational capacities, and tools for analysis and modelling in an open, serviceoriented architecture. To be efficient and accurate, a continuous inflow of large quantities of data is essential. However, even with new techniques, government-funded monitoring data and research data will not feed the system with up-to-date species information of sufficient scale and resolution. To fill this void, skilled amateur observers (citizen scientists) can contribute to a very valuable extent. After a preparatory phase, a Swedish LifeWatch (SLW) consortium was initiated in 2011. Swedish LifeWatch developed an infrastructure where all components are accessible through open web services. At the SLW Analysis portal, different formats of species and environmental data can be accessed instantly, and integrated, analysed, visualized and downloaded at selected temporal, spatial or taxonomic scales. Swedish LifeWatch currently provides 46 million species observations from eight different databases, all harmonized according to standardized formats and the Dyntaxa taxonomic backbone database. Almost 40 million of these observations were provided by citizens through the online reporting system named the Species Observation System (SOS) or Artportalen. This paper describes this system, as well as the incentives that make it so successful. The citizen science data in the SOS are accessible, together with data from research and monitoring, in the SLW infrastructure, making the latter a powerful instrument for large-scale data extraction, visualization and analysis

The effects of income distribution and fiscal policy on aggregate demand, investment and the budget balance: the case of Europe

This paper develops a multi-country post-Kaleckian model that incorporates the role of the government. One key novelty of the model is that it integrates cross-country effects of both changes in income distribution and fiscal policy. The model is used to estimate econometrically the effects of income distribution and fiscal policy on the components of aggregate demand and the budget balance in EU15 countries. The results show that a simultaneous increase in the wage share in all EU15 countries would increase demand and the primary budget balance in all countries. A simultaneous increase in government spending turns out to boost economic activity in all the EU15 countries, indicating the positive economic effects of expansionary fiscal policy. Moreover, a progressive tax policy that would be implemented simultaneously at the EU level would lead to an increase in output in all countries

The Reawakening of the Sleeping X-ray Pulsar XTE J1946+274

We report on a series of outbursts of the high mass X-ray binary XTE 11946+274 in 2010/2011 as observed with INTEGRAL, RXTE, and Swift. We discuss possible mechanisms resulting in the extraordinary outburst behavior of this source. The X-ray spectra can be described by standard phenomenological models, enhanced by an absorption feature of unknown origin at about 10 keV and a narrow iron K alpha fluorescence line at 6.4keV, which are variable in flux and pulse phase. We find possible evidence for the presence of a cyclotron resonance scattering feature at about 25 keV at the 93% level. The presence of a strong cyclotron line at 35 keV seen in data from the source's 1998 outburst and confirmed by a reanalysis of these data can be excluded. This result indicates that the cyclotron line feature in XTE 11946+274 is variable between individual outbursts

Orbital Parameters and Spectroscopy of the Transient X-Ray Pulsar 4U 0115+63

We report on an outburst of the high mass X-ray binary 4U 0115+63 with a pulse period of 3.6s in spring 2008 as observed with INTEGRAL and RXTE. By analyzing the lightcurves we derive an updated orbital- and pulse period ephemeris of the neutron star. We also study the pulse profile variations as a function of time and energy as well as the variability of the spectral parameters. We find clear evidence for at least three cyclotron line features. In agreement with previous observations of 4U 0115+63, we detect an anti-correlation between the luminosity and the fundamental cyclotron line energy

Inhibition of IL-34 Unveils Tissue-Selectivity and Is Sufficient to Reduce Microglial Proliferation in a Model of Chronic Neurodegeneration

The proliferation and activation of microglia, the resident macrophages in the brain, is a hallmark of many neurodegenerative diseases such as Alzheimer´s disease (AD) and prion disease. Colony stimulating factor 1 receptor (CSF1R) is critically involved in regulating microglial proliferation, and CSF1R blocking strategies have been recently used to modulate microglia in neurodegenerative diseases. However, CSF1R is broadly expressed by many cell types and the impact of its inhibition on the innate immune system is still unclear. CSF1R can be activated by two independent ligands, CSF-1 and interleukin 34 (IL-34). Recently, it has been reported that microglia development and maintenance depend on IL-34 signalling. In this study, we evaluate the inhibition of IL-34 as a novel strategy to reduce microglial proliferation in the the ME7 model of prion disease. Selective inhibition of IL-34 showed no effects on peripheral macrophage populations in healthy mice, avoiding the side effects observed after CSF1R inhibition on the systemic compartment. However, we observed a reduction in microglial proliferation after IL-34 inhibition in prion-diseased mice, indicating that microglia could be more specifically targeted by reducing IL-34. Overall, our results highlight the challenges of targeting the CSF1R/IL34 axis in the systemic and central compartments, important for framing any therapeutic effort to tackle microglia/macrophage numbers during brain disease

Nordic LifeWatch cooperation, final report: A joint initiative from Denmark, Iceland, Finland, Norway and Sweden

The main goal of the present report is to outline the possibilities for an enhanced cooperation between the Nordic countries within eScience and biodiversity. LifeWatch is one of several ESFRI projects which aim to establish eInfrastructures and databases in the field of biodiversity and ecosystem research. Similarities between Nordic countries are extensive in relation to a number of biodiversity related issues. Most species in Nordic countries are common, and frequently the same challenges concerning biodiversity and ecosystem services are addressed in the different countries. The present report has been developed by establishing a Nordic LifeWatch network with delegates from each of the Nordic countries. The report has been written jointly by the delegates, and the work was organized by establishing working groups with the following themes: strategic issues, technical development, legal framework and communication. Written during two workshops, Skype meetings and emailing, the following main issues are discussed in the present report: * Scientific needs for improved access to biodiversity data and advanced eScience research infrastructure in the Nordic countries. * Future challenges and priorities facing the international biodiversity research community. * Scientific potential of openly accessible biodiversity and environmental data for individual researchers and institutions. * Spin-off effects of open access for the general public. * Internationally standardized Nordic metadata inventory. * Legal framework and challenges associated with environmental-, climate-, and biodiversity data sharing, communication, training and scientific needs. * Finally, some strategic steps towards realizing a Nordic LifeWatch construction and operational phase are discussed. Easy access to open data on biodiversity and the environment is crucial for many researchers and research institutions, as well as environmental administration. Easy access to data from different fields of science creates an environment for new scientific ideas to emerge. This potential of generating new, interdisciplinary approaches to pre-existing problems is one of the key features of open-access data platforms that unify diverse data sources. Interdisciplinary elements, access to data over larger gradients, compatible eSystems and eTools to handle large amounts of data are extremely important and, if further developed, represent significant steps towards analysis of biological effects of climate change, human impact and development of operational ecosystem service assessment techniques. It is concluded that significant benefits regarding both scientific potential, technical developments and financial investments can be obtained by constructing a common Nordic LifeWatch eInfrastructure. Several steps concerning organizing and funding of a future Nordic LifeWatch are discussed, and an action plan towards 2020 is suggested. To analyze the potential for future Nordic LifeWatch in detail, our main conclusion is to arrange a Nordic LifeWatch conference as soon as possible. This conference should involve Nordic research councils, scientists and relevant stakeholders. The national delegates from the participating countries in the Nordic LifeWatch project are prepared to present details from the report and developments so far as a basis for further development of Nordic LifeWatch. The present work is financed by NordForsk and in-kind contributions from participating institutions

Transposon-mediated BAC transgenesis in human ES cells

Transgenesis is a cornerstone of molecular biology. The ability to integrate a specifically engineered piece of DNA into the genome of a living system is fundamental to our efforts to understand life and exploit its implications for medicine, nanotechnology and bioprospecting. However, transgenesis has been hampered by position effects and multi-copy integration problems, which are mainly due to the use of small, plasmid-based transgenes. Large transgenes based on native genomic regions cloned into bacterial artificial chromosomes (BACs) circumvent these problems but are prone to fragmentation. Herein, we report that contrary to widely held notions, large BAC-sized constructs do not prohibit transposition. We also report the first reliable method for BAC transgenesis in human embryonic stem cells (hESCs). The PiggyBac or Sleeping Beauty transposon inverted repeats were integrated into BAC vectors by recombineering, followed by co-lipofection with the corresponding transposase in hESCs to generate robust fluorescent protein reporter lines for OCT4, NANOG, GATA4 and PAX6. BAC transposition delivers several advantages, including increased frequencies of single-copy, full-length integration, which will be useful in all transgenic systems but especially in difficult venues like hESCs