George Hondroyiannis, Evangelia Papapetrou and Pinelopi Tsalaporta
The Organization for Economic Cooperation and Development (OECD) countries are facing unprecedented challenges related to climate change and population aging. The purpose of the…
Abstract
Purpose
The Organization for Economic Cooperation and Development (OECD) countries are facing unprecedented challenges related to climate change and population aging. The purpose of the analysis is to explore the relationship between population aging and environmental degradation, accounting for human capital, using a sample of 19 OECD countries over the period 1980–2019.
Design/methodology/approach
On the empirical methodology, the analysis uses panel estimators with heterogenous coefficients and an error structure that takes into consideration cross-country heterogeneity and cross-sectional dependence for a panel of 19 OECD countries over the period 1980–2019. To examine the relationship between population aging and environmental degradation, the authors employ two alternative measures of environmental degradation that is energy consumption and CO2 emissions in metric tons per capita. Concerning the regressors, the authors account for two alternative aging indicators, namely the elderly population and the old-age dependency ratios to confirm robustness.
Findings
The analysis provides evidence that population aging and human capital development (IHC) lead to lower energy consumption in the OECD sample. Overall, the growing number of elderly people in the OECD seems to act as a mitigating factor for energy consumption. The authors view these results as conveying the message that the evolution of population aging along with channeling government expenditures towards human capital enhancement are important drivers of curbing energy consumption and ensuring environmental sustainability. The authors' research is of great significance for environmental policymakers by illuminating the favorable energy consumption patterns that population aging brings to advanced economies.
Research limitations/implications
The main limitation of this study concerns data availability. Future research, and subject to greater data availability in the future, could dig deeper into understanding the dynamics of this complex nexus by incorporating additional control variables. Similarly, the authors focus on aggregate renewable energy consumption, and the authors do not explicitly model the sources of renewable energy (wind, hydropower, solar power, solid biofuels and other). Additional analysis of the breakdown of renewable energy sources would be insightful – subject to data availability – especially for meeting the recently agreed new target of 42.5% for European Union (EU) countries by 2030. A deep transformation of the European energy system is needed for the EU to meet the target. Finally, extending the model to include a range of non-OECD countries that are also experiencing demographic transformations is a promising avenue for future research.
Originality/value
To the best of the authors' knowledge, this study is the first to examine the effects of population aging and human capital on environmental degradation using a broad set of OECD countries and advanced spectrum estimation methods. Given cross-sectional dependencies and cross-country heterogeneity, the authors' empirical results underline the importance of cross-OECD policy spillovers and knowledge diffusions across the OECD countries. The new “energy culture” calls for concerted policy action even in an aging era.
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George Hondroyiannis and Dimitrios Papaoikonomou
A growing amount of micro-data analyses has highlighted the importance of information trails, such as generated by card transactions, for improving tax compliance. Yet, time…
Abstract
Purpose
A growing amount of micro-data analyses has highlighted the importance of information trails, such as generated by card transactions, for improving tax compliance. Yet, time series evidence indicating a positive effect of card payments on VAT revenue performance has been scarce. This paper revisits the question of the effect of card payments on VAT revenue by using annual and quarterly panel data for the 19 euro area member states, covering the period 2000–2016.
Design/methodology/approach
A panel VECM is employed in order to address endogeneity issues and to account for common stochastic trends, which, is shown to be crucial in revealing the anticipated positive effect of card use on the performance of VAT.
Findings
The analysis confirms that a higher share of card payments in private consumption increases VAT revenue and the efficiency of revenue collection. Higher gains are estimated for countries with above average self-employment.
Originality/value
The contribution of the paper is twofold. First, to our knowledge it provides the first confirmation of the well-established literature on information trails using aggregate macroeconomic time series in a multi-country setting. Second, it has very timely policy implications, as low-hanging fruit are identified in euro-area economies with much to gain from strengthening the credibility of their fiscal performance, such as Greece.
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George Hondroyiannis, Eleni Sardianou, Vasilis Nikou, Kostas Evangelinos and Ioannis Nikolaou
The vast amounts of waste generated today threaten economies and societies due to high environmental and management costs. The aim is to investigate the short- and long-term…
Abstract
Purpose
The vast amounts of waste generated today threaten economies and societies due to high environmental and management costs. The aim is to investigate the short- and long-term patterns of municipal waste generation (MWG) in response to socio-economic and demographic growth variables at national and regional levels.
Design/methodology/approach
A panel data approach employing ordinary least squares (OLS), fixed effects (FE), random effects (RE), fully modified least squares (FMOLS) and error correction model (ECM) techniques. A sample of 28 European countries (2000–2020) and 44 European Union (EU) regions (2000–2018) were selected.
Findings
During periods of economic growth and higher employment rates, consumer confidence tends to increase, leading to elevated levels of consumer spending and consumption. Intensification in the production factors, specifically capital and employment, results in an upsurge in MWG, thereby creating a cycle where waste generation becomes deeply entrenched in the economic system in both the short and long terms. Rapid population growth, attributed to higher fertility rates, is associated with increased MWG. At the regional level, a double-aging process and a shift toward an aging population exert less pressure on MWG in both the short and long term. Promoting higher levels of environment-oriented human development yields various benefits, including the generation of greater knowledge spillovers, enhanced environmental literacy, a shift toward circular thinking and the promotion of greener entrepreneurship. Increased R&D expenditures facilitate the development of innovative waste reduction technologies, fostering improvements in waste management techniques, recycling processes and the utilization of sustainable materials.
Research limitations/implications
The research examines the short- and long-term adjustments of MWG in response to changes in macroeconomic variables from low aggregation (countries) to high aggregation (regions). By analyzing the relationship between economic growth, urbanization, healthcare system quality, labor market functioning, demographic trends, educational level, technological advancement and MWG, the study fills a research gap and enhances understanding of waste management interventions. However, data availability and waste statistics accuracy should be considered. Future research could explore the relationship between macroeconomic variables and waste generation in sectors beyond MWG, such as industrial or construction waste, for a more comprehensive understanding of waste generation as a whole.
Practical implications
The positive correlation between economic activity levels and waste generation in both the short and long terms, emphasizes the criticality of investing in waste reduction and recycling infrastructure to mitigate landfill waste. The negative correlation between population density and waste generation stresses the importance of strategic waste facility placement in low-density areas. To effectively manage higher MWG, tailored waste collection systems and initiatives promoting healthy lifestyles are of immense importance. The positive relationship between employment rates and waste generation underscores the necessity of waste reduction programs that generate employment opportunities. The positive correlation between fertility rates and waste generation emphasizes the need for the expansion of extended producer responsibility programs to include products and materials specifically associated with families and child-rearing. Education campaigns and governmental support for research and development (R&D) in waste reduction technologies are also integral components of an effective waste management strategy.
Originality/value
The short- and long-term adjustments of MWG reacts to shifts in macroeconomic variables from low aggregation (countries) to high aggregation (regions). Previous research has neglected the long-term information contained in variables by not incorporating the lagged error correction term (ETM). Neglecting this aspect could result in imprecise estimates of the elasticities.
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This paper investigates the long‐ and short‐run determinants of aggregate private savings in Greece employing data over the period 1961‐2000. The long‐run savings function is…
Abstract
This paper investigates the long‐ and short‐run determinants of aggregate private savings in Greece employing data over the period 1961‐2000. The long‐run savings function is estimated based on an extended life‐cycle hypothesis taking into account the economic and demographic developments during this period. A long‐run saving function sensitive to fertility changes, old dependency ratio, real interest rate, liquidity and public finances is found to exist and the importance of short‐run deviations is presented using vector error‐correction model estimation. The empirical evidence suggests the existence of a stable long‐run savings function in Greece both in the long‐ and short‐run periods and the policy implications of such a relationship are presented.
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Evangelia Papapetrou and Pinelopi Tsalaporta
During the crisis, the Greek labor market went through major changes in terms of employment, unemployment and wages. The economic activity registered a cumulative decline of…
Abstract
During the crisis, the Greek labor market went through major changes in terms of employment, unemployment and wages. The economic activity registered a cumulative decline of around 25%, weighting heavily on the labor market. The unemployment rate showed a substantial increase, with signs of persistence and the employment rate fell substantially. Utilizing a unique dataset, the European Union Structure of Earnings Survey (SES) the paper examines the evolution of wages over the period 2010–2014. During that period, the economic adjustment programs to deal with the chronic deficiencies of the Greek economy and restore sustainable public finances, to gain competitiveness and set the foundation for long-term growth, were implemented. Data refer to 2010, when the first elements of the program were beginning to be executed, and to 2014 when the crisis had already unfolded. Results point to a reduction of average wages across industries, even after controlling for personal and workplace characteristics. Amid a wage decrease at the mean, there is evidence of a divergent wage evolution between sectors of economic activity during the crisis. Furthermore, we find that wage premia that have persisted in the Greek economy during the same period are not disproportionately captured by employees at the upper end of the conditional wage distribution.
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H. Semih Yildirim and George C. Philippatos
This study sets out to examine the evolution of competitive conditions in the banking industries of 14 Central and Eastern European (CEE) transition economies for the period…
Abstract
Purpose
This study sets out to examine the evolution of competitive conditions in the banking industries of 14 Central and Eastern European (CEE) transition economies for the period 1993‐2000.
Design/methodology/approach
The basis for the evaluation of competitive conditions is the extant oligopoly theory in the new industrial organization literature, specifically, the competition model developed by Panzar and Rosse.
Findings
The results of the competition analysis suggest that the banking markets of CEE countries cannot be characterized by the bipolar cases of either perfect competition or monopoly over 1993‐2000 except for FYR of Macedonia and Slovakia. That is, banks earned their revenues as if operating under conditions of monopolistic competition in that period. An analysis of changes in competitive structure shows a higher degree of competition in the later years of the sample period. Large banks in transition countries are found to be operating in a relatively more competitive environment compared with small banks or, in other words, competition is lower in local markets compared with national and international markets.
Research limitations/implications
The period under investigation corresponds to early years of the ongoing transition from central planning when these countries were lacking many market‐supportive institutions essential for efficient financial markets. Therefore, the results of this study should be interpreted with the necessary scholarly scrutiny.
Practical implications
The paper measures the level of market contestability that may have been facilitated by the recent liberalization and deregulation progress.
Originality/value
The paper is highly original. Although research on the bank competition in the USA and other developed countries is voluminous, research that focuses on transition economies is relatively scant.
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Hassan Mohammadi, Murat Cak and Demet Cak
The aim of this paper is to prove the validity of Wagner's hypothesis.
Abstract
Purpose
The aim of this paper is to prove the validity of Wagner's hypothesis.
Design/methodology/approach
The paper examines the validity of Wagner's hypothesis with annual data for Turkey over 1950‐2005 period.
Findings
The empirical results using the ARDL bounds tests of cointegration provide strong support for the hypothesis. Also, the results are robust across six alternative specifications of the Wagner's hypothesis as well as four alternative lag length selection criterions.
Originality/value
The paper provides useful information on the validity of Wagner's hypothesis.
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Asif Tariq, Shahid Bashir and Aadil Amin
India’s historical fiscal performance has featured elevated deficit levels. Driven by the imperative need for fiscal stimulus measures in response to the crisis, efforts toward…
Abstract
Purpose
India’s historical fiscal performance has featured elevated deficit levels. Driven by the imperative need for fiscal stimulus measures in response to the crisis, efforts toward fiscal consolidation from 2003 to 2008 were reversed in 2008–2009 due to the financial crisis. These stimulus actions are believed to have wielded a notable influence on inflation dynamics. Presumably, a high inflation rate hinders growth and inflicts severe welfare costs. Accordingly, the principal objective of this paper is to scrutinise the threshold effects of fiscal deficit on inflation within the context of the Indian economy.
Design/methodology/approach
We employed the Smooth Transition Autoregressive (STAR) Model, a robust tool for capturing non-linear relationships, to discern the specific threshold level of fiscal deficit. Our analysis encompasses annual data spanning from 1971 to 2020. Additionally, we have leveraged the Toda-Yamamoto causality test to establish the existence and direction of a causal connection between fiscal deficit and inflation in the Indian economy.
Findings
Our analysis pinpointed a critical threshold level of 3.40% for fiscal deficit, a value beyond which inflation dynamics in India undergo a marked transition, signifying the presence of significant non-linear effects. Moreover, the results derived from the Toda-Yamamoto causality test offer substantiating evidence of a causal relationship originating from the fiscal deficit and leading to inflation within the Indian economic framework.
Research limitations/implications
The findings of our study carry significant implications, particularly for the formulation and execution of both fiscal and monetary policies. Understanding the threshold effects of fiscal deficit on inflation in India provides policymakers with valuable insights into achieving a harmonious balance between these two critical economic variables.
Originality/value
To the best of our knowledge, this study is the first of its kind to empirically investigate threshold effects of fiscal deficit on inflation in India from a non-linear perspective using the Smooth Transition Autoregression (STAR) model.
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The purpose of this paper is to give an overview of variability of empirical results of several financial contagion studies, taking into account the role of financial markets…
Abstract
Purpose
The purpose of this paper is to give an overview of variability of empirical results of several financial contagion studies, taking into account the role of financial markets, data sets and the applied definitions and methods that may explain the variability of empirical evidence.
Design/methodology/approach
The authors used qualitative analysis of published research materials about previous financial crises and analyzed the variability of empirical results of around 75 studies of financial contagion, taking into account the particularities of financial markets, data sets and tests methods.
Findings
The results of the analysis show that empirical studies provide heterogeneous results depending on applied definitions and methods, as well as chosen crises, destination countries and financial indices. Summing up all the relevant empirical findings the results supporting the contagion hypothesis are in clear dominance, but taking into account differences in definitions and testing methodologies the research did not reveal clear results as to which evidence dominates or should dominate.
Research limitations/implications
The authors conclude that solely qualitative analysis of published research materials about previous financial crises does not give sufficient information to elaborate proper management measures to prevent serious consequences of financial crises. The authors propose that it is possible to obtain a more adequate picture of financial contagion by using a meta‐analysis, which the authors are planning to do in future studies.
Practical implications
The paper provides information about some reasons that explain the variability of the results that are presented in the empirical studies about financial contagion. This information can be used for elaborating policy proposals and regulations that can help alleviate possible negative consequences of financial contagion. The paper shows the way for future articles summarising financial contagion.
Originality/value
The study sums up previous findings on the field of financial contagion and shows the insufficiency of the traditional literature review to accomplish that task.
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Federico Stezano and Ruben Oliver Espinoza
This paper aims to provide empirical evidence regarding the relationship between different capabilities and innovation performances in the biotechnology sector, in the case of…
Abstract
Purpose
This paper aims to provide empirical evidence regarding the relationship between different capabilities and innovation performances in the biotechnology sector, in the case of Mexico.
Design/methodology/approach
Given the aforementioned objective, this paper constructs different indicators on types of capabilities and innovative performances and, based on them, performs an econometric analysis based on a logit model. The work assumes the central assumptions of the firm's evolutionary theory and, in this sense, seeks to provide quantitative empirical evidence that explains the way in which the construction of different types of capacities determines the innovation results of Mexican firms in the biotechnology sector.
Findings
Corroborating the previous empirical evidence in analysis of firm’s capabilities in the biotechnology sector, this work empirically states that productive, absorption, technological and innovative capabilities positively influence the innovative performance of Mexican biotechnology firms.
Originality/value
This work examines a central theme linked to the current analysis of innovation and knowledge processes: the relationship between the organizational capacities of firms in the biotechnology sector and their innovative performance. Through a detailed analysis based on a national survey of Mexican biotechnology firms, this work underlines the importance of generating a new type of reflection on linkage among capabilities, innovation, paradigms and trajectories, technological opportunities, relationship dynamics among actors and modes of insertion into the biotechnology value chain.
Propósito
El propósito de esta investigación es determinar la influencia de diferentes tipos de capacidades en la habilidad de las empresas para innovar, medida como la introducción de productos biotecnológicos nuevos (o mejorados) en el mercado por parte de la empresa mexicana.
Diseño/metodología/enfoque
Se analizan los datos de una encuesta nacional de 40 empresas mexicanas de biotecnología en 2015. Se usó un modelo PLS teniendo en cuenta: el tamaño de la muestra, la naturaleza predictiva de la investigación y la complejidad de analizar el efecto de las variables latentes.
Resultados
De acuerdo con investigaciones anteriores, nuestros resultados muestran la influencia de las capacidades de innovación en los resultados de innovación logrados por la empresa de biotecnología. Por otro lado, el efecto de las capacidades de gestión en los resultados de innovación de la empresa es muy limitado y moderado. Finalmente, y a diferencia de la evidencia predominante anterior, no se encontró una relación entre las capacidades de absorción de las empresas y su desempeño innovador.
Originalidad/valor
El estudio proporciona nuevos aportes analíticos y empíricos que conducen a una reflexión sobre las oportunidades que tienen las empresas mexicanas de insertarse en los mercados globales de media y alta tecnología en el sector de la biotecnología. La detección de oportunidades tecnológicas aprovechables puede proporcionar a la biotecnología mexicana recursos directos para que desarrollen nuevas políticas de innovación e industriales y ajustar las actuales no organizadas.
Palabras clave
Biotecnología, Capacidades, Innovación, Desempeño de la empresa, Políticas sectoriales
Tipo de artículo
Trabajo de investigación
Objetivo
O objetivo desta pesquisa é determinar a influência de diferentes tipos de capacidades na capacidade de inovação das empresas, medida como a introdução de novos (ou melhorados) produtos biotecnológicos no mercado pela empresa mexicana.
Design/metodologia/abordagem
Os dados de uma pesquisa nacional de 40 empresas de biotecnologia mexicanas são analisados em 2015. Um modelo PLS foi usado levando em conta: o tamanho da amostra, a natureza preditiva da pesquisa e a complexidade de analisar o efeito de variáveis latentes.
Resultados
Segundo pesquisas anteriores, nossos resultados mostram a influência das capacidades de inovação nos resultados de inovação alcançados pela empresa de biotecnologia. Por outro lado, o efeito das capacidades de gestão nos resultados de inovação da empresa é muito limitado e moderado. Por fim, e diferentemente da evidência predominante anterior, não foi encontrada relação entre as capacidades de absorção das empresas e seu desempenho inovador.
Originalidade/valor
O estudo fornece novas contribuições analíticas e empíricas que levam a uma reflexão sobre as oportunidades que as empresas mexicanas têm para se inserir nos mercados globais de média e alta tecnologia no setor de biotecnologia. A detecção de oportunidades tecnológicas exploráveis pode fornecer à biotecnologia mexicana recursos diretos para desenvolver novas políticas industriais e de inovação e ajustar as atuais políticas não organizadas.
Palavras-chave
Biotecnologia, Capacidades, Inovaçño, Desempenho da empresa, Políticas setoriais
Tipo de artigo
Trabalho de pesquisa