Is unemployment good for the environment?

Environmental quality is a public good, potentially impacted by everybody. Individual level pro-environmental behavior affects environmental quality in the aggregate. Therefore, it is important to understand what causes individual’s pro-environmental behaviors to change. We quantify the causal effect of one determinant, unemployment, using an EU-27 population representative Eurobarometer survey. Drawing on results from the theory of the private provision of public goods, and recognizing that unemployment decreases income and the opportunity cost of time, we formulate testable predictions that unemployment will decrease the extent of pro-environmental behaviors that require monetary contributions and increase the extent of pro-environmental behaviors that mainly require time/effort. Instrumental variables regressions provide empirical evidence to support these hypotheses. Changes in the unemployment rate within a sub-national region provide the exogenous variation needed to identify the causal effect. Several supplemental questions on the survey provide evidence that environmental issues lose saliency and economic issues gain saliency when one becomes unemployed, suggesting that interested parties may wish to emphasize cost savings of pro-environmental behavior rather than environmental benefits during times of increased unemployment.     

Explaining European Union Citizens’ Trust in the European Central Bank in Normal and Crisis Times

We study the determinants of trust in the European Central Bank (ECB) as measured by the European Commission's Eurobarometer survey, in particular during the global financial crisis and the European sovereign debt crisis. We find that the fall in trust in the ECB in crisis times can be rather well explained based on the pre‐crisis determinants. We also show that the fall in trust reflected the macroeconomic deterioration, a more generalized fall in the trust in European institutions in the wake of the crisis, and the severity of the banking sector's problems, to which the ECB was associated in the public opinion.     

The Influence of Stakeholder Engagement on Sustainability Reporting: Evidence from Italian local councils

This study investigates the motivations of local councils for producing a sustainability report. Inter-connecting theories of legitimacy, accountability, and the New Public Management are used to structure an investigation that explains patterns of behaviours by Italian local councils. The project assesses if, and how, stakeholder engagement can influence the local councils’ decision-making process through the adoption of sustainability reporting. Semi-structured interviews were conducted with the sustainability report preparers of a sample of Italian local councils. The findings demonstrate that initially sustainability reporting is introduced for accountability and legitimacy reasons. However, over time traditional sustainability reporting was incidental to more sophisticated tools of policy-making and reporting, in which some of the stakeholders were actively involved. The findings highlight the political negotiations in which sustainability reporting finds itself. The stakeholder engagement projects implement legitimizing strategies within the context of the search for an arrangement between political programs and stakeholder demands.     

Modeling travel decisions: Urban exploration,cultural immersion,or both?

This paper investigates the characteristics of the choice between cities and culture (or aspects of both) in selecting certain travel destinations. The data consist of 28,700 individuals in 32 European countries. Bivariate probit model estimates show that those with moderately and skilled occupations, students, pensioners, women, people living in cities and regions with a high gross domestic product per capita have a higher joint probability of undertaking city and cultural trips. Furthermore, there are large differences in decisions to take a combined city and cultural trip across the countries of residence surveyed, with small western European countries exhibiting the highest probability.     

Financial imbalances and household welfare: Empirical evidence from the EU

This paper uses Eurobarometer survey data from 26 EU countries to evaluate whether the general public cares about financial stability and imbalances over and above their effects on macroeconomic variables such as unemployment and inflation. I confirm previous results in the literature that life satisfaction – a widely used measure of household welfare – negatively depends on the unemployment rate. In addition to previous results in the literature, I establish a strong empirical link between life satisfaction and consumer confidence as measured by the European Commission consumer survey. The main result of the paper is that life satisfaction generally does not systematically depend on a number of measures of financial imbalance based on credit and asset prices once the other macroeconomic controls are included.     

Links between trust in the ECB and its interest rate policy

We analyse determinants of trust in the European Central Bank (ECB). Our main finding is that when households have pessimistic expectations, aggressive cuts in interest rates have an adverse effect on their trust in central bank. This result is in accordance with the ‘lack-of-confidence shock’ hypothesis developed by Schmitt-Grohé and Uribe (2012) and in contrast with the ‘fundamental shock’ hypothesis which implies positive effects of aggressive cuts for trust in the ECB. The result is robust to various changes in the modelling approach.