Economics: Research Guide

This reports aims to assist the Sino-Australian bilateral relationship adapt to meet China’s new policies and to facilitate a smoother transition to a low carbon future. Southwest University of Finance and Economics (SWUFE), Chengdu, China and the University of Queensland, Brisbane, Australia held a workshop at SWUFE to develop a guide to China’s low-carbon policies and their implications for the Sino-Australian energy trade and sectors. This report results from the workshop. Chapter 3 contains the guide to China’s low emission policies and discusses market-based experiments within China’s command-and-control electricity sector. Chapter 4 discuses Australia’s poorly implemented neo..

Readiness is a cornerstone of military service. Military readiness includes cognitive and physical abilities to train and execute missions. Previous studies among civilians demonstrate that food security is associated with cognitive function and body mass index. Therefore, food security is vital to maintaining military readiness. While no analyses have been conducted on the prevalence of food insecurity for a representative sample of the active duty U.S. military, studies of individual military installations have demonstrated food insecurity rates between 15 and 33 percent. The authors compared food insecurity among the U.S. military and civilian adult populations, using data from the 2018 a..

We study the effect of bequests and their taxation on wealth inequality. We allow for random death and birth in a continuous-time, dynastic framework. Individuals behave optimally and accumulate wealth over their lifetime. Bequests above a tax exemption threshold are taxed according to a fixed rate. We derive a stochastic differential equation modeling dynastic wealth and obtain an analytical expression for the coefficient of variation. By calibrating our model to German wealth data, we utilize these analytical results to project empirical wealth inequality across various bequest tax rates and tax exemption thresholds. Most notably, our results indicate that a combination of a high tax exemp..

This article seeks to understand how a self-organised dynamic can emerge to engage the current transition towards a circular economy. Accompanying-research puts into perspective a collective citizen project of transition towards a circular society (TCS) with the perspectives of actors and theories of self-organising. The analysis of abundant material, in floating attention and inductive manual NVivo coding, demonstrates a self-organising development via individual commitment facing successive needs of cooperation to enact a TCS. The dynamic operates through cooperative work cycles, leading to a TCS project in continuous mutual reflexivity. These results contribute to self-organising theories..

At the onset of the Covid‑19 crisis, several regulatory authorities issued a recommendation or request to banks to restrict their dividend and share buyback distributions. The purpose of this action was to increase banks’ resilience by not distributing retained earnings, and help them support the real economy given their unique role in doing so. These restrictions reflected the singular circumstances brought by Covid‑19. We evaluate the impact of these restrictions on banks’ resilience, lending and investors’ required rate of return. First, using a difference‑in‑differences analysis on an international sample of European banks, we find that restricted banks increased their avai..

I study the impact of giant oil field discoveries on default risk. I document that interest rate spreads of emerging economies increase by 1.3 percentage points following a discovery of median size. I develop a sovereign default model with investment, three-sector production, and oil discoveries. Following a discovery, borrowing and investment increase. Capital reallocates from manufacturing toward oil and non-traded sectors, increasing the volatility of tradable income. Borrowing increases default risk and higher volatility increases the risk premium, both of which increase spreads. Discoveries generate welfare gains of 0.44 percent. Insurance against low oil prices increases these gains to..

I study how, in the presence of default risk, the Dutch disease amplifies an inefficiency in the sectoral allocation of capital. I develop a sovereign default model with production of tradable and non-tradable goods, and endowments of commodities. Default incentives increase when more capital is allocated to non-traded production. Households do not internalize this effect, giving rise to over-investment in the non-traded sector. Commodity windfalls amplify this inefficiency through the classic Dutch disease mechanism and an increased desire to borrow. Policies that reduce the returns of non-traded capital, such as exchange rate sterilization, ameliorate the degree of over-investment during c..

We study how debt limits can be expansionary in economies facing sovereign risk. We develop a sovereign debt model with capital accumulation, long-term debt, and fiscal rules that features two distortions: debt dilution and a pecuniary externality of private investment on spreads. The optimal debt limit increases capital accumulation due to lower sovereign risk, generating an economic expansion in the long run. Welfare gains are a result of lower sovereign spreads due to expectations about future borrowing and investment. We present evidence of a positive (negative) relation between debt limits and investment (spreads), consistent with the predictions of the model.

Capital and its sectoral allocation affect default incentives. Under general assumptions, default risk is decreasing in the total stock of capital and increasing in the share of capital allocated to non-tradable production. This implies that when competitive households make all investment decisions capital has two externalities: a capital-stock externality and a portfolio externality. These hamper the ability of a benevolent government to make optimal borrowing and default decisions and are exacerbated during periods of distress. Competitive equilibria feature underinvestment, larger non-traded sectors, more default, and lower debt and consumption than a centralized planner's allocation. Sel..

I study the impact of giant oil field discoveries on default risk. I document that interest rate spreads of emerging economies increase by 1.3 percentage points following a discovery of median size. I develop a sovereign default model with investment, three-sector production, and oil discoveries. Following a discovery, borrowing and investment increase. Capital reallocates from manufacturing toward oil and non-traded sectors, increasing the volatility of tradable income. Borrowing increases default risk and higher volatility increases the risk premium, both of which increase spreads. Discoveries generate welfare gains of 0.44 percent. Insurance against low oil prices increases these gains to..

The transition towards a circular economy presents significant challenges and opportunities for the social economy sector. This paper explores the competencies, skills, and training required to facilitate this green transition, drawing on findings from the baSE project - a comprehensive European initiative under the Erasmus+ Program aimed at advancing skills and training in the social economy for green transition. Through a mixed-method approach encompassing literature reviews, surveys, and focus group discussions, the study identifies key skill gaps and training needs within the social economy sector, emphasizing the importance of innovative, accessible, and practical training solutions. Th..

I estimate employment multiplier effects by skill group from graduate employment and innovation at the NUTS1 and 2 level in France, Germany and the UK. Using local projections, I estimate the effects over 5-year horizons. Both graduate employment and patenting have temporary, positive impacts on non-graduate and mid-skilled employment. There is considerable heterogeneity in terms of the direction and magnitude of the effects across the three countries. The paper shows that innovation can be a source of regional employment growth, even for those without a graduate degree.

he decade following the Great Kantō Earthquake of 1923 witnessed a proliferation of writings by officials, academics, businessmen, and journalists on the economic consequences of the disaster. This abundance of contemporary analysis stands in strong contrast to the relative scarcity of subsequent scholarly studies of many aspects of the disaster’s economic impact. In this article, I suggest that part of the reason for this relative lacuna lies in broader trends within economics and economic history scholarship. In particular, a focus on quantitative analysis and macro-level indicators has led to the conclusion that over the longer term, the Kantō earthquake, like similar disasters elsewh..

he decade following the Great Kantō Earthquake of 1923 witnessed a proliferation of writings by officials, academics, businessmen, and journalists on the economic consequences of the disaster. This abundance of contemporary analysis stands in strong contrast to the relative scarcity of subsequent scholarly studies of many aspects of the disaster’s economic impact. In this article, I suggest that part of the reason for this relative lacuna lies in broader trends within economics and economic history scholarship. In particular, a focus on quantitative analysis and macro-level indicators has led to the conclusion that over the longer term, the Kantō earthquake, like similar disasters elsewh..

I estimate employment multiplier effects by skill group from graduate employment and innovation at the NUTS1 and 2 level in France, Germany and the UK. Using local projections, I estimate the effects over 5-year horizons. Both graduate employment and patenting have temporary, positive impacts on non-graduate and mid-skilled employment. There is considerable heterogeneity in terms of the direction and magnitude of the effects across the three countries. The paper shows that innovation can be a source of regional employment growth, even for those without a graduate degree.

I estimate employment multiplier effects by skill group from graduate employment and innovation at the NUTS1 and 2 level in France, Germany and the UK. Using local projections, I estimate the effects over 5-year horizons. Both graduate employment and patenting have temporary, positive impacts on non-graduate and mid-skilled employment. There is considerable heterogeneity in terms of the direction and magnitude of the effects across the three countries. The paper shows that innovation can be a source of regional employment growth, even for those without a graduate degree.

I estimate employment multiplier effects by skill group from graduate employment and innovation at the NUTS1 and 2 level in France, Germany and the UK. Using local projections, I estimate the effects over 5-year horizons. Both graduate employment and patenting have temporary, positive impacts on non-graduate and mid-skilled employment. There is considerable heterogeneity in terms of the direction and magnitude of the effects across the three countries. The paper shows that innovation can be a source of regional employment growth, even for those without a graduate degree.

We use a randomized controlled trial in Bangladesh to test three types of non-price energy conservation strategies that influence electricity consumption of households: (i) advice on electricity conservation methods (knowledge treatment); (ii) (median) electricity consumption of others in the suburb (suburb comparison); and (iii) (median) electricity consumption of neighbors (neighbor comparison). We find that providing advice on saving energy could reduce households' electricity consumption and bills significantly. The effects are stronger for advice on electricity conservation methods than neighbor and suburb comparisons. The effects of providing information about own electricity consumpti..

We use a randomized controlled trial in Bangladesh to test three types of non-price energy conservation strategies that influence electricity consumption of households: (i) advice on electricity conservation methods (knowledge treatment); (ii) (median) electricity consumption of others in the suburb (suburb comparison); and (iii) (median) electricity consumption of neighbors (neighbor comparison). We find that providing advice on saving energy could reduce households' electricity consumption and bills significantly. The effects are stronger for advice on electricity conservation methods than neighbor and suburb comparisons. The effects of providing information about own electricity consumpti..

I study a novel institutional feature of Australian housing markets: the widespread use of mortgage offset accounts. These accounts reduce mortgage interest costs and increase the liquidity of mortgage balances. I build a heterogeneous agent life-cycle model of the Australian housing market to study who benefits from these accounts and by how much. Households in middle age, with high incomes, and with more expensive houses are most likely to use offset accounts and derive larger benefits from their use. I show that a social planner could maintain mortgage profitability, improve household welfare, and more evenly distribute benefits by adjusting the price structure of offset accounts.

■ 주택시장 동향 ㅇ 주택 매매 및 전세 ㅇ 주택 거래 및 분양 ㅇ 토지 및 주택 금융

Are changes in the labor market in\n response to changes in exports contained specifically within\n exporting industries, or do they disperse throughout the\n economy through supply chain linkages? This paper studies\n the case of Viet Nam, an example of a successful export-led\n growth economy, to examine this question. Combining UN\n COMTRADE data, input-output tables from the Global Trade\n Analysis Project, and 2010 to 2019 annual labor force survey\n data for Viet Nam, the study constructed a measure of each\n worker’s total exposure to export shocks. The\n measure accounts for changes due to both direct export\n exposure (increase in exports in the worker’s own\n industry..