What Do Wages Add to the Health‐Employment Nexus? Evidence from Older European Workers

The role of wages in the health‐employment nexus can be important for designing employment policies aimed at older workers with health limitations. We, therefore, estimate the direct effect of health on employment and hours worked and its indirect effect that is mediated through wages using individual‐level panel data from SHARE. The endogeneity of self‐reported health is controlled for by instrumenting it with severe health conditions in a correlated random effects model. For men, we find that the direct effects of health deterioration, as measured by a reduction in health from the 75th to the 50th percentile of the health distribution, are about a 20% point lower employment probability and about 171 fewer hours worked per year. The indirect health effects through wages work in the opposite directions as health positively affects wages and wages negatively affect employment and hours worked. The total effects of this health deterioration amount to a 12% point lower employment probability and 95 fewer hours worked per year. In particular our finding of a large direct health effect on employment suggests an instrumental role for policy aimed at accommodating workers with health limitations to keep them employed at older ages.     

Claims Reserving with a Stochastic Vector Projection

In the last three decades, a variety of stochastic reserving models have been proposed in the general insurance literature mainly using (or reproducing) the well-known Chain-Ladder claims-reserving estimates. In practice, when the data do not satisfy the Chain-Ladder assumptions, high prediction errors might occur. Thus, in this article, a combined methodology is proposed based on the stochastic vector projection method and uses the regression through the origin approach of Murphy, but with heteroscedastic errors instead, and different from those that used by Mack. Furthermore, the Mack distribution-free model appears to have higher prediction errors when compared with the proposed one, particularly, for data sets with increasing (regular) trends. Finally, three empirical examples with irregular and regular data sets illustrate the theoretical findings, and the concepts of best estimate and risk margin are reported.     

Capital asset pricing model in Portugal: Evidence from fractal regressions

We examine risk profiles of the Portuguese stock market index component stocks using a novel approach to the classical capital asset pricing model (CAPM). Specifically, we estimate the CAPM via fractal regressions that allow studying the marginal effects at selected scales. In this way, we can reveal whether the risk is perceived differently by market participants with different investment horizons. Apart from the analysis itself, we provide new statistical insights into the issue of separating and comparing the scale-specific effects with statistical validity. We find several stocks deviating from an expected risk perception homogeneity across investment horizons. This is true for both analysed periods, i.e. before and after the global financial crisis. There are also several stocks that changed their relationship to the market portfolio in between, which has strong implications for possible portfolio construction. The proposed methodology is not limited to financial topics but can be used in any discipline where the scale-specific marginal effects might be of interest.     

Market reaction to supranational banking supervision in Europe: Do firm- and country-specific factors matter?

This paper investigates the financial market´s perception regarding the effectiveness of the Single Supervisory Mechanism in Europe. Do investors believe that centralized supervision adds value compared to multiple supervision? . Do they feel uncertain about the supervisory role of the ECB? To answer these questions, a sample of 118 European Banks has been used finding that whereas in early dates the market reaction was positive reflecting the expectation of greater stability, it turned negative at the time the scope of the supervision was limited to only a group of banks. As might be expected, the reaction is significantly more negative for the directly supervised entities, anticipating a different and more demanding style of supervision that could lead to higher cost. This negative wealth effect is intensified for banks with higher price-to-book ratios or those located in countries with more developed financial systems and better investor protection. However, solvency and productivity firm indicators or low levels of perceived corruption moderate it. This research not only highlights the doubts and uncertainty of investors about the final applications of the SSM, but it could be also useful for policy makers and regulators in order to achieve a more harmonized supervision that improves the credibility of the systems and promote financial stability.

     

Political markets? Politics and economics in the emergence of markets for biodiversity offsets

This paper analyses the relationship between politics and performativity of economics in the emergence of markets for biodiversity offsets. While the role of economics in constructing markets has been demonstrated by sociology and social studies of science, it has also become apparent that politics plays an important role in the material outcome of economic experiments. Two case studies of the creation of markets for biodiversity offsets are analysed, in the United States and England. The findings suggest that the creation of both markets is rooted in the language, concepts and models of economics. Politics, on the other hand, functions as a mediator of the material expression of those models. Through this mediation effect, similar economic models are performed differently, resulting in a variety of markets. This suggests that the material outcomes of processes of market creation are not defined at the outset, but can be influenced by political processes.     

Knowledge spillovers and strategic entrepreneurship: what researches and approaches?

International Entrepreneurship and Management Journal - Based on the need for companies to remain competitive and dynamic in a constantly changing environment, this systematic review on knowledge...     

Taking services to foreign markets: A taxonomy of Brazilian service firms

This study develops a taxonomy of international service firms from an emerging market, Brazil, and assesses whether there are significant differences in international performance between the groups. After an extensive literature review, a survey was carried out with a sample of international service firms located in an emerging economy, Brazil. Using as a departure point two theoretical perspectives, the internationalization process theory and industrial organization theory, in addition to service dimensions extracted from the empirical service management literature, the study identifies four groups—large traditionals, generalist neophytes, solitary traditionals, and daring differentiators—based on firm characteristics, international services delivered, internationalization process characteristics, and international strategies adopted. The findings suggest that there are significant differences in performance between the groups.     

The moderating effects of economic development on innovation and shadow entrepreneurship: grey or pink?

There is currently a renewed surge of interest in informal entrepreneurship around the world. One of the motives stems from how such entrepreneurship shapes and influences a substantial part of the global workforce. However, we may also verify how a major proportion of the research in this field focuses on developing economies and thus justifying the application of such analytical approaches to countries with different levels of economic development as is the case with Europe. Our research objectives, on the one hand, involve analysing the impact of R&D investment on informal entrepreneurship and, on the other hand, the moderating effect of the level of economic development on their innovative capacities and informal entrepreneurship results. To this end, and in accordance with Global Entrepreneurship Monitor, we divide the countries of Europe into two stages of development and may report that the higher the level of economic development, the greater the innovative capacity and, furthermore, the lower informal entrepreneurship becomes. The same holds for R&D investment with its increase being inversely proportionate to informal entrepreneurship. We, therefore, seek to contribute toward a better understanding of the problematic framework of informal entrepreneurship, in particular in the European context.