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Histories that matter: The case for applied economic history
No full textWe define applied economic history as the systematic use of historical reasoning to address economic policy problems. Building on work in applied history, we argue that economic history contributes to policy not by offering ready-made lessons, but by disciplining the narratives and analogies that policymakers and the public use. Unlike conventional economic history, which begins with a past episode and asks explanatory questions, an applied approach starts from a current problem and works backwards to identify relevant historical parallels. Selecting cases, however, is only the first step: their policy relevance depends on the narratives through which they are interpreted and put to use. We synthesise work from narrative economics, organisational history, and media and memory studies to clarify how historical narratives are conceptualised as shaping beliefs and behaviour, but also how they mislead when stripped of context. Applied economic history therefore requires careful narrative construction, standards for comparison, attention to difference as well as similarity, and transparency about uncertainty. We conclude by outlining how changes to training, incentives, and institutions could support engagement by economic historians with policymaking
Rank-sparsity decomposition for planted quasi clique recovery
No full textAbstract
In this paper, we apply the Rank-Sparsity Matrix Decomposition to the planted Maximum Quasi-Clique Problem (MQCP). This problem has the planted Maximum Clique Problem (MCP) as a special case. The maximum clique problem is NP-hard. A Quasi-clique or γ-clique is a dense graph with the edge density of at least γ, γ∈(0,1]. The maximum quasi-clique problem seeks to find such a subgraph with the largest cardinality in a given graph. Our method of choice is the low-rank plus sparse matrix splitting technique. We present a theoretical basis for when our convex relaxation problem recovers the planted maximum quasi-clique. We have derived a new bound on the norm of the dual matrix that certifies the recovery using l∞,2norm. We have showed that when certain conditions are met, our convex formulation recovers the planted quasi-clique exactly. The numerical experiments we have performed corroborate our theoretical findings
The relevance of meritocratic beliefs for redistributive preferences increases with income
No full textA leading explanation for why in democratic societies the rich are not taxed more is that meritocratic beliefs breed tolerance for inequality. We problematize this account by claiming that, unlike the rich, the poor support greater redistribution regardless of how meritocratic they perceive society to be. The claim is tested using a cross-national survey and a preregistered experimental game that exogenized both income and perceptions of meritocratic fairness. Analysis of both survey and experimental data supports the proposed interaction effect between income and perceived meritocratic fairness on demand for redistribution. We conclude that while meritocratic beliefs can explain why the rich do not support more redistribution, it fails to explain the poor’s inequality acceptance
FinTechs and digital financial services landscape of Malawi: A supply-side analysis
No full textFinancial Technology (FinTech) organisations are perceived to be enablers of digital financial services in Malawi. They support efficient business transactions, secure payments instead of cash, lower transactions costs and support financial inclusion. While the phenomenon of FinTech has received attention among scholars, FinTech landscape of Malawi (e.g. supply-side) is not well documented. This paper analysed the FinTech landscape of Malawi focusing on profiling organisations, digital financial services and regulations. Using secondary data, the findings showed diversity of FinTech services e.g. mobile money, digital wallets, card-based payments, cloud banking services, microfinance and international remittance services. FinTechs operating in formal sector were regulated, while other FinTechs offering services for cryptocurrencies and crowdfunding platforms were not covered in the financial sector regulations. The study contributes towards literature on FinTechs in Malawi and highlights areas of further research
Perceived Social Exclusion during the COVID-19 Pandemic: a European Perspective
No full textAbstract
This paper aims to study the self-perceived social exclusion of EU citizens during the COVID-19 emergency, taking into account their socio-demographic characteristics and the specific contexts of their countries of residence. To this end, we draw on data from the third round of the electronic Eurofund Living, working and COVID-19 survey , conducted between February and March 2021, when countries were still grappling with various levels of lockdown and individuals had been living with COVID-19 restrictions for almost a year. We also rely on data from the Oxford COVID-19 Government Response Tracker (OxCGRT), which collected real-time information on government responses to COVID-19 in several countries during the pandemic crisis. We assume that during the pandemic, government accountability and responsiveness were important determinants of social inclusion and well-being. To test our hypothesis, we use multilevel logistic regression. Our dependent variable is a binary indicator of social exclusion. At the country level, we consider two different sets of explanatory variables concerning, respectively, subjective (i.e., citizens' perceptions) and objective (i.e., measures taken) aspects of governments' responses to COVID-19. Our results document a different gradient of social vulnerability across population groups. Our findings also indicate that social exclusion strongly depended on the country context, in addition to individual characteristics and circumstances. Collective perceptions of the efficiency of government responses and levels of trust in government had a positive association with the decrease in the feelings of social exclusion during the first year of the pandemic. Conversely, the objective measures implemented by national governments to mitigate socio-economic and health consequences were not associated with self-reported experiences of social exclusion
Sustainability in calm and rough waters: an empirical investigation of European ESG ETFs
No full textAbstract
Since the Paris Agreement in 2015 and the European Union’s commitment to leading the transition toward a sustainable economy, the European market for passively managed ESG products has experienced remarkable growth. This study examines the financial performance of 34 European ESG ETFs linked to the MSCI Europe Index from 2015 to 2024, taking into account key events like the Paris Agreement, COVID-19, and the Russia-Ukraine conflict. To assess ESG ETF performance, we apply the Sharpe (Sharpe, Management Science 9:277–293, 1963) index model and the Fama French (Fama and French, Journal of Financial Economics 116:1–22, 2015) five-factor model. Furthermore, we analyze how geopolitical crises, health crises, and the choice of ESG strategy are related to ETF performance. The results indicate that the ESG strategy itself shows only a limited relationship with alpha values, but is related with the sensitivity to market fluctuations. Moreover, we find that ESG ETFs tend to underperform their non-sustainable benchmarks during periods of geopolitical turmoil, accompanied by increased risk exposure, as observed during the Russia–Ukraine conflict.G12;G13;G1
Market discipline in life insurance: Does public risk disclosure encourage less risky management actions?
No full textAbstract
We analyze how public risk disclosure, specifically Solvency II, impacts life insurers' risk‐taking behavior. Using data from 58 German life insurers from 2016 to 2023, we find that publicly reported solvency ratios can affect premium growth and surrender rates. Moreover, insurers appear to improve their solvency ratios following a decline in the previous year. To investigate whether policyholder behavior drives a life insurer's reduced risk‐taking, we then develop a model in which a life insurer seeks to maximize shareholder value. Unlike previous research, we consider annually disclosed solvency ratios, affecting policyholders' dynamic purchase and surrender behavior. In our model, the insurer acts less riskily (e.g., holds more reserves and sells less‐risky insurance portfolios) to maintain higher solvency ratios and mitigate policyholders' adverse reactions. Our findings motivate public risk disclosure to strengthen market discipline, but its level and design must be carefully calibrated to be effective and avoid undue costs
Circular Economy Policies in China and Europe: A Systematic Literature Review
No full textAbstract
Many governments have developed policies to drive the much-needed transition to a circular economy (CE). This systematic literature review covers CE policy progress and the state-of-the-art research in China and Europe. Combining content analysis and contingency analysis, we analyze 119 journal articles to identify the main policy interventions in China and Europe, challenges, outcomes, and their interrelationships. Our review shows that China diligently enforces “ cleaner production ” policies through a top-down approach, while Europe focuses more on “sustainable product” policies such as ecodesign and extended producer responsibility , relying more on a bottom-up approach. The two economies face some common challenges in policy development. The most prominent challenges lie in the difficulty in formulating consistent, coherent, and stable policies , difficulty in formulating sector- and region-specific policies , and difficulty in formulating comprehensive policies . Research in policy outcome is scant, especially in the social dimension. Our findings suggest that policymakers must consider integrated policy bundles in policy design, ensure consistency, coherence, and stability in policy development and implementation, incorporate the social dimension into CE policies, and customize CE policies for different contexts. Based on the identified knowledge gaps, we call for comparative studies across regions and shifting research focus from recycling to the higher tiers of the waste hierarchy. More attention is also required in secondary resource markets, policy design tailored to specific product sectors and regions, policy implementation challenges, and policy outcomes
Charitable Giving by the Poor: A Field Experiment in Kyrgyzstan
Full text linkIn a large-scale natural field experiment, we partnered with a microlending company in Kyrgyzstan that asked over 180,000 of its clients for donations to social projects as a form of corporate philanthropy. In a 2 × 2 design, we explored two main (preregistered) hypotheses about giving by the poor. First, based on a conjecture that the poor are more price sensitive than the rich and in contrast to previous studies, we hypothesize that matching incentives induce crowding in of out-of-pocket donations. Second, we hypothesize that our population cares about their proximity to the charitable project. We find evidence in favor of the former hypothesis but not the latter. Previous studies of charitable giving focus on middle- or high-income earners in Western countries, neglecting the poor, although the lowest-income groups are often shown to contribute substantial shares of their income to charitable causes. Our results challenge the evidence in the extant literature but are in line with our theoretical model. The implications for fundraising managers are that the optimal design of fundraising campaigns crucially depends on the targeted groups and that donation matching is successful in stimulating participation in poorer populations
Leveraging moral foundations theory in sociopolitical campaigns: an empirical investigation on how brands can persuade university-affiliated consumers with moral reframing
No full textAbstract
Conscientious brands guided by ethical and moral principles are actively involved in social issues, taking public stances on sociopolitical topics. However, conscientious purpose-driven branding (CPB) can backfire if consumers disagree with a brand’s stance, highlighting the need for brands to understand how consumers perceive brands’ political engagement and how, in turn, they can positively influence consumer perceptions without compromising their stance. Based on moral foundations theory (MFT), we conducted an experimental study in a university context, focusing on higher education students and employees. Our findings show that their moral foundations (equality and loyalty) determine how they perceive brands’ political campaigns. Moreover, we highlight an affective response towards CPB, focusing on other-condemning emotions, which are negative emotions (e.g. anger, disgust) directed towards moral violations, as an essential mediator towards brand attitude and behavioural intentions. Finally, moral reframing, the strategic emphasis on moral values in a message, moderates the impact of moral foundations on moral emotions. When a pro-immigration stance is aligned with consumers’ moral values, negative perceptions can be significantly reduced, particularly among consumers with high levels of loyalty. In conclusion, we develop an initial application of MFT in the context of conscientious brands and contribute to the understanding of CBP