Search results for " income"

Effects of unconventional monetary policy on income and wealth distribution: Evidence from United States and Eurozone

2019

As an answer to the “Great Recession” and Zero Lower Bound problem, main central banks had to use unconventional monetary policy (UMP). This research focuses on the distributive effects of these measures on household income and household wealth in the United States of America (USA) and the Eurozone. For this purpose, this paper presents four models that were constructed using the Structural Vector Autoregressive methodology (SVAR). The results suggest that the UMPs applied by the Federal Reserve (FED) in the USA could increase wealth and income inequality through the portfolio channel. However, the same results were not observed in the Eurozone. Key words: United States of America, Eurozone…

Inflation and the Circuit of Income

2012

This timely book uses cutting-edge research to analyse the fundamental causes of economic and financial crises, and illustrates the macroeconomic foundations required for future economic policymaking in order to avoid these crises.

An Analysis of the Time-Varying Behavior of the Equilibrium Velocity of Money in the Euro Area

2020

Recent developments in inflation and M3 velocity in the euro area have raised serious doubts about the reliability of M3 growth as a pillar of the ECB’s monetary policy strategy. We develop a very flexible and comprehensive state-space framework for modeling the velocity of circulation. Our specification allows for the estimation of different autoregressive alternatives and includes control instruments, whose coefficients can be set up either common or idiosyncratic. This is particularly useful to detect asymmetries in the reaction among countries to common shocks. Our findings first suggest that the downward trend of M3 velocity is mainly explained by the evolution of permanent income, pro…

The Regionalization of National Input–Output Tables: A Review of the Performance of Two Key Non-survey Methods

2018

This chapter reviews the available empirical evidence on the performance of Flegg’s location quotient (FLQ) and Kronenberg’s Cross-Hauling Adjusted Regionalization Method (CHARM), a relatively new non-survey technique that accounts explicitly for cross-hauling when constructing regional input–output tables. The performance of the FLQ and related formulae is evaluated using official data for 20 Finnish and 16 South Korean regions. The results confirm previous findings that the FLQ can produce far more accurate estimates of regional output multipliers than can simpler LQ-based formulae such as the SLQ and CILQ. We also explore possible ways of determining suitable values for the unknown param…

Le paradoxe du seuil de pauvreté endogène dans les indices de pauvreté

2007

On the Returns to Invention within Firms: Evidence from Finland

2018

International audience; In this paper we merge individual income data, firm-level data, patenting data, and IQ data in Finland over the period 1988–2012 to analyze the returns to invention for inventors and their coworkers or stakeholders within the same firm. We find that: (i) inventors collect only 8 percent of the total private return from invention; (ii) entrepreneurs get over 44 percent of the total gains; (iii) bluecollar workers get about 26 percent of the gains and the rest goes to white-collar workers. Moreover, entrepreneurs start with significant negative returns prior to the patent application, but their returns subsequently become highly positive.

Does Commuting Reduce Wage Disparities?

2004

This paper shows that in the Baltic countries, commuting reduces urban-rural wage and employment disparities and increases national output. To quantify the effect of commuting on wage differentials, two sets of earnings functions are estimated (based on Estonian, Latvian, and Lithuanian Labor Force Surveys) with location variables (capital city, rural, etc.) measured at the workplace and at the place of residence. We find that the ceteris paribus wage gap between capital city and rural areas, as well as between capital and other cities is significantly narrowed by commuting in some cases but remains almost unchanged in other. Different outcomes are explained by country-specific spatial patt…

Maternal Employment and Happiness: The Effect of Non-Participation and Part-Time Employment on Mothers' Life Satisfaction

2009

"In contrast to unemployment, the effect of non-participation and parttime employment on subjective well-being has much less frequently been the subject of economists' investigations. In Germany, many women with dependent children are involuntarily out of the labor force or in part-time employment because of family constraints (e.g., due to lack of available and appropriate childcare). Using data from the German Socio-Economic Panel (SOEP) Study, this paper analyzes the impact of involuntary familyrelated non-participation and part-time employment on mothers' life satisfaction. Controlling for unobserved individual fixed effects, I find that both the pecuniary effects (foregone earnings) an…

Three (marginal?) questions regarding convergence

2004

This paper focuses on three (marginal?) questions surrounding the analysis of economic convergence and uses Spanish provinces as a means of illustration. The three questions in hand are the following: (i) given that the geographical units of analysis are usually quite different in economic size, is the weighting of economic units relevant in convergence analysis? (ii) the average per capita income of a given region, or country, is the first moment in the distribution of income, but what about the second moment, inequality? Have we converged in inequality? and (iii) an aggregate welfare index must take into account, at least, the evolution of the first two moments of the distribution of inco…

Pensions, Economic Growth and Welfare in Advanced Economies

2020

In this chapter, we analyse the effects of PAYG and funded pension systems on welfare. The debate on the choice between alternative systems focuses on their effects on savings, capital accumulation, labour supply, economic growth and inequality and the potential benefits of mixed systems in which a PAYG system with notional accounts is complemented by a funded pensions system. The main findings are as follows. Firstly, the redistribution of income among individuals makes the PAYG system an important part of any mixed system. Secondly, the design of the pension system should efficiently balance incentives and distortions with equality and insurance against individual idiosyncratic risks. Thi…