The Spanish Labour Market: Reforms and consequences

The institutional design of the Spanish labour market has been subjected, during the last three decades, to permanent pressure fuelled by two beliefs. On the one hand, by the assumption that a higher degree of flexibility would help to reduce unemployment; on the other, by the assumption that such increased flexibility would also help to reduce inflation rates and, consequently, the inflation gap between Spain and the rest of the European countries. The recent history of the Spanish labour market is, therefore, the history of the reforms implemented to increase the flexibility in such a market. The aim of this paper is, firstly, to describe the main features of these reforms, showing the measures implemented in order to increase the flexibility in the labour market and, secondly, to show the degree of flexibility reached in the labour market. Finally, we will briefly analyse the macroeconomic consequences of these reforms.     

The economic consequences of euro-area macro-modelling shortcuts

Should euro-area economies be modelled in an aggregate (area-wide) fashion or in a disaggregate (multi-country) one? This article tackles that question from both statistical and economic viewpoint. From a statistical viewpoint, aggregation bias criteria are found to signal that the degree of structural heterogeneity among euro-area economies is such that the loss of information entailed by an aggregate modelling approach may be far from trifling. From an economic viewpoint, we investigate the following issue. Are those statistically detectable heterogeneities of any practical relevance when it comes to supporting monetary policy decision-making? To provide an answer to this question, we compute simple optimal monetary policy reaction functions on the basis of either an aggregate model or a disaggregate one, and compare the associated welfare losses. The results suggest that the welfare under-performance of an area-wide-model-based rule is not only nonnegligible, but also robust with respect to a number of sensitivity analyses.     

Demographic changes and economic consequences: Demo-economic multiplier for Austria

"The aim of [this] paper is the development of the demo-economic accounting linkage (demo-economic multiplier) between population development and the production of goods and services in the context of a comparative static analysis." The demo-economic multiplier is derived to indicate the economic conseqences of different household types. The impact of population size and structure on the economy is evaluated. A model is derived based on the demographic pattern of the Austrian population for 1974     

Wavelet power spectrum and cross-coherency of Spanish economic variables

We analyze six relevant economic and financial variables for the period 2000M1–2015M3 in the context of the Spanish economy: a financial index (IBEX35), a commodity (crude oil price in euros), a foreign exchange index (EUR/USD), a bond (Spanish 10-year bond), the Spanish national debt and the consumer price index. The goal of this paper is to analyze the main relationships between them by computing, using a special toolbox in MATLAB, the wavelet power spectrum and the cross-wavelet coherency associated with Morlet wavelets, focusing our interest on the period variable. We decompose the time–frequency effects and improve the interpretation of the results by non-expert users in the theory of wavelets. This yields empirical evidence on instability periods and reveals various changes and breaks in the causality relationships for the data available from recent years. Moreover, we introduce a comparison with Gaussian wavelets and use the MATLAB software suite for computing, taking the scale instead of the period as the reference variable. These same variables were analyzed individually in a previous paper that specifically considered the decomposition of non-stationary monthly rate series in the period 2000M1–2014M12 using Daubechies wavelets db8 to visualize high frequency variance, seasonality and trend.     

Modelling the lifetime economic consequences of glaucoma in France

Abstract

Objective: To estimate the lifetime economic consequences of glaucoma in France.

Methods: A Markov model estimated the average discounted outcome and cost of glaucoma treatment over a patient's lifetime. Clinical states were defined as first- to fourth-line drugs, no treatment, laser therapy, surgery, blindness and death. After each failure (always after the fourth-line drug) patients could receive either laser treatment or surgery followed by no treatment, or a new treatment. A societal perspective was adopted. Sensitivity analyses were performed.

Results: Discounted medical costs were €7,322 for ocular hypertension treatment (OHT) and €8,488 for a glaucoma patient. Social costs of OHT and glaucoma patients exceeded medical costs. First-line use of the most effective drug would reduce medical and social costs. Societal willingness to pay for the vision benefit would equal the medical costs. Treatment initiated with the most effective drug is a cost saving strategy.

Conclusions: Public health decisions in glaucoma treatment should take a broad economic view embracing the lifetime duration of the disease. There is still a place both within and outside the healthcare system for therapeutic innovations with important economic consequences that bring high added value to patients.     

The effects of public infrastructure on the cost structure of Spanish industries

This paper examines the impact of public infrastructures on the performance of Spanish private business at a disaggregated industry level. We use duality theory to recover the productivity effects of public capital by calculating the cost saving effects that are associated to public services. Using a translog cost function we present panel estimates for 14 Spanish industries during the period 1980–1991. Our results strongly suggest that public capital formation can be considered to be an instrument to improve competitiveness by reducing production costs. However, the results also indicate that there is a technologically induced labor saving effect through higher public investment. Furthermore, our estimates suggest that a distinction among industries is of importance because the effects of public infrastructures vary across industries considerably.     

An empirical analysis of the European Union's impact on Spanish economic performance

This paper investigates, for the first time, whether there is a relationship between international trade and international travel flows using time series econometric techniques. Using data for Australia and four important travel and trading partners, the USA, the UK, NZ and Japan, the paper tests three specific hypotheses: that business travel leads to international trade; that international trade leads to international travel; and that international travel, other than business travel, leads to international trade. Using cointegration and Granger-causality approaches the paper finds support for prior beliefs that there is a relationship between international travel and international trade, and suggests that this may be a fruitful area for further research.     

Modelling the economic consequences of Marine Protected Areas using the BEMCOM model

This paper introduces and describes in detail the bioeconomic optimization model BEMCOM (BioEconomic Model to evaluate the COnsequences of Marine protected areas) that has been developed to assess the economic effects of introducing Marine Protected Areas (MPA) for fisheries. BEMCOM answers the question ‘what’s best?’, i.e. finds the overall optimal effort allocation, from an economic point of view, between multiple harvesting fleets fishing under a subset of restrictions on catches and effort levels. The BEMCOM model is described and applied to the case of the Danish sandeel fishery in the North Sea. It has several times been suggested to close parts of the sandeel fishery in the North Sea out of concern for other species feeding on sandeel and/or spawning in the sandeel habitats. The economic effects of such closures have been assessed using BEMCOM. The results indicate that the model yields reliable estimates of the effect of MPAs, and can thus be a valuable tool when deciding where to locate MPA.     

Education and saving:: The long-term effects of high school financial curriculum mandates

Over the last 40 years, a majority of states have adopted consumer education policies, and a sizable minority have mandated that high school students receive instruction on topics related to household financial decision-making. In this paper, we attempt to determine whether these mandates have had any effect on subsequent decisions. We exploit the variation in requirements both across states and over time to identify the effects of interest. The evidence indicates that mandates have raised both exposure to financial curricula and subsequent asset accumulation once exposed students reached adulthood. The estimated effects are gradual, probably due to implementation lags.     

The economic effects of extending shop opening hours

In this paper we investigate the economic effects of deregulation of shop opening hours legislation. The theoretical literature is rather mixed about the possible effects of such a policy. Using an empirical model for optimal retail behavior, it is shown that the economic potential can be high. It is demonstrated that employment goes up mainly because of an increase in threshold labor. However, the magnitude of this effect depends on the average number of additional hours as a consequence of deregulation. Therefore, by using the model for optimal retail behavior an optimal rule for extending opening hours is given. This rule implies that the potential for longer opening hours is high. It is, however, shown that in the noncooperative equilibrium this potential is higher than in the cooperative equilibrium, and that large-scale stores gain more from this deregulation.     

The productivity paradox and the new economy: The Spanish case

This paper studies the impact of the information and communication technologies (ICT) on economic growth in Spain using a dynamic general equilibrium approach. Contrary to previous works, we use a production function with six different capital inputs, three of them corresponding to ICT assets. Calibration of the model suggests that the contribution of ICT to Spanish productivity growth is very relevant, whereas the contribution of non-ICT capital has been even negative. Additionally, over the sample period 1995–2002, we find a negative TFP growth and productivity growth. These results together aim at the hypothesis that the Spanish economy could be placed within the productivity paradox.     

The effects of economic reforms on manufacturing dualism: Evidence from India

Dualism is a pervasive feature of the manufacturing sectors of less-developed countries, with large differences in productivity between the informal and the formal sectors. Policy distortions are viewed as an important factor behind the prevalence of manufacturing dualism. We examine whether tariff reforms, industrial de-licensing and the withdrawal of reservation of products for small firms implemented since the mid-1980s have had any effects on efficiency differentials between informal and formal firms in Indian manufacturing. We find strong evidence that economic reforms have exacerbated dualism by increasing the productivity differentials between the more efficient formal firms and the less efficient informal firms.     

The effects and policy implications of state aids to industry: an economic analysis

The use of state aids to industry is a poorly understood part of competition policy. Currently, the EU Commission presumes that state aids distort competition, yet it approves 98% of applications, often for social or distributional reasons. We argue that proper regulation of state aids should focus on two issues, the externalities generated and the inefficiencies arising from failures in competition between governments. We thus develop a new framework for EU policy and compare its implications with the existing practice of the EU Commission.     

Transportation,economic growth and spillover effects: The conclusion based on the spatial econometric model

This paper tests the external spillover effects of the transportation on China’s economic growth from the theoretical and the empirical perspectives. Based on a logarithm production model, this study first proves the existence of the positive externality in the transportation. After that, the authors collect the data of the 28 provinces in China from 1985 to 2006, and use a relatively advanced spatial econometric method to test the positive externality. After constructing a spatial econometric model, the authors use the Maximum Likelihood (ML) method to estimate this model. According to the theoretical model and the empirical results, this article reaches the following conclusion: (1) The positive externalities in the transportation do exist; (2) From 1985 to 2006, the transportation contributed 24.8 billion yuan to China’s GDP every year: in this 24.8 billion yuan, 19.6 billion comes from the direct contribution and the rest 5.2 billion comes from the external spillover effects; (3) The summation of the direct contribution and the external spillover effects to the economic growth is on average 13.8% every year.     

In and out of the labour market: long-term income consequences of child-related interruptions to women's paid work

Why do Canadian mothers have lower incomes than women who have never had children? Microdata from the 1995 GSS allow examination of two hypotheses: (1) mothers have spent more time out of the labour force, thus acquiring less human capital; (2) higher levels of unpaid work lead to fatigue and/or scheduling difficulties. Measuring work history does little to account for the ‘family gap.’ The estimated child penalty is reduced by allowing for ‘human capital depreciation’ and controlling for unpaid work hours, but the two hypotheses together cannot entirely explain the gap. JEL Classification: J0, J3 Entrées et sorties: marché du travail et conséquences à long terme des interruptions dans l'expérience sur le marché du travail à cause des enfants. Ce mémoire se demande pourquoi les femmes canadiennes qui ont eu des enfants ont des revenus plus bas que ceux des femmes qui n'en ont pas eus. Les microdonnées de l'Enquête sociale générale de 1995 de Statistiques Canada permettent d'examiner deux hypothèses: (1) les mères ont passé plus de temps en dehors de la main d'oeuvre active et donc ont accumulé moins de capital humain, ou (2) des niveaux plus élevés de travail non‐rémunéré peuvent entraîner fatigue ou difficultés d'organisation du temps. Des efforts pour construire une meilleure image de l'expérience de travail des femmes ne permettent pas d'expliquer cet ‘écart familial,’ même si la possibilité qu'il y ait ‘dépréciation du capital humain’ réduit la pénalisation attachée au fait d'avoir un enfant en particulier si l'interruption dans l'expérience sur le marché du travail est suivie d'un changement d'emploi. Le nombre hebdomadaire d'heures de travail non payé est relié négativement aux revenus, et si l'on normalise pour tenir compte des heures de travail non payé cela réduit la pénalisation attachée au fait d'avoir un enfant. Cependant les deux hypothèses combinées ne suffisent pas pour expliquer l'écart.     

The non-linear effects of life expectancy on economic growth

This paper shows that improvements in life expectancy (LE) had a non-linear effect on income per capita over the 1940-1980 period as this effect was conditional on each country’s initial level of LE. Whereas higher LE had an initial statistically significant negative impact on income per capita in countries with LE under 43 years in 1940, the opposite is true in countries with initial LE over 53 years.