1,720,966 research outputs found
The Productivity effect of permanent and temporary labor contracts in the Italian manufacturing sector
No full textThis paper studies the effect of permanent and temporary labor contracts on both labor-augmenting and TFP-augmenting technological factors using a panel dataset of Italian manufacturing firms. The empirical analysis applies a structural approach in which firm TFP follows a controlled Markov process that is affected by the relative use of labor contracts, and labor services are perfect substitutes but with different labor-augmenting factors. The empirical results show that when including labor-contract composition in the TFP process: i) the difference between permanent and temporary contracts in the labor-augmenting productivity factor is not significant and ii) the incidence of permanent contracts in total contracts has a positive effect on TFP dynamics
Preference shifts and the change of consumption composition
No full textWhile most of the literature explaining the change in consumption composition has focused on the role of relative prices and non-homothetic preferences, this paper examines the importance of preference shifts. I introduce dynamics in preferences and find that they play a relevant role and that their exclusion worsens model performance at least as much as the exclusion of allowing non-homothetic preferences
Preference shifts between consumption goods and sectoral changes
No full textThis paper analyzes under which conditions a shift in the relative preferences between consumption goods may induce a change in the equilibrium values of the sectoral variables in the same direction, compared with the previous static equilibrium. (C) 2011 Elsevier B.V. All rights reserved
Relative-Preference Shifts and the Business Cycle
No full textThis paper develops a two-sector dynamic general equilibrium model in which intertemporal fluctuations (and sectoral co-movement) are driven by idiosyncratic shocks to relative preferences among consumption goods. This class of shocks may be interpreted as shifts in consumer tastes. When shifts in preferences occur, consumers associate a new and different level of satisfaction to the same basket of consumption goods according to their modified preferences. This paper shows that if the initial composition of the consumption basket is sufficiently asymmetric, then a shift in relative preferences produces a "perception effect" strong enough to induce both intersectoral and intrasectoral positive co-movement of the main macroeconomic variables (i.e., output, consumption, investment, and employment). Furthermore, by extending the theoretical framework to a multisector model and introducing a more flexible structure for the relative-preference shock, we show that the parameter restrictions needed to observe sectoral co-movement after a relative-preference shock are much less severe. In particular, co-movement among most of the sectors emerges under general conditions, without requiring high levels of asymmetry in the consumption basket's composition and/or high aversion to risk. It is a welcome result that these findings are reached without introducing aggregate technology shocks, input-output linkages, or shocks perturbing the relative preference between aggregate consumption and leisure
Population age structure and consumption expenditure composition: evidence from European countries
No full textThis paper aims at evaluating the effect of population age structure on households’ aggregate
preferences and, through this channel, on the sectoral composition of the final consumption expenditure. The
analysis of European COICOP 2-digit data shows that the contribution of demographic dynamics to model fit
is highly relevant, only slightly lower than the contribution of the income effec
HOW TOURIST FLOWS ARE AFFECTED BY THE INTRODUCTION OF THE EURO?
No full textInternational tourism demand has grown overtime and tourism now represents one of the most growing sector worldwide. International tourist arrivals reached 1,235 million in 2016 (UNWTO, 2017), and Europe with approximately 620 million international tourists, represents just over half the world’s total (50%; UNWTO, 2017). In 2002 a unique currency was introduced in some EU countries. Many applied research focuses on the effect of the common currency policy on Eurozone trade flows (Micco et al., 2003; Faruquee, 2004; Flam and Nordstrom, 2006; Aristotelous, 2006; Baldwin, 2006; Bun and Klaassen, 2007; Frankel, 2010; Camarero et al., 2013; Sadeh, 2014). On the contrary, to date very few papers analyse the effect of this monetary policy on exchange in the service sector, and specifically on tourism flows (Ràtz and Hinek, 2006; Gil-Pareja et al., 2007; Thompson and Thompson, 2010; De Vita, 2014; Santana-Gallego et al., 2010; 2016). The main aim of the present paper is to investigate whether and to what extent the introduction of euro affects tourist flows in a sample of European and non- European countries over the period 1995-2013. To do this, we apply a technique of policy evaluation named Synthetic control method (SCM henceforth) first proposed in a seminal work by Abadie and Gardeazabal in 2003. Using this methodology, we compare the post-euro tourism exchange trajectory of countries introducing the euro as common currency in 2002 (i.e. the treated unit) with the trajectory of countries not affected by the policy (i.e. non-treated countries)
Preference shifts between consumption goods and sectoral changes
No full textThis paper analyzes under which conditions a shift in the relative preferences between consumption goods may induce a change in the equilibrium values of the sectoral variables in the same direction, compared with the previous static equilibrium
Fair wages, labor relations and asset returns
No full textThe paper investigates the nexus between labor and financial markets, focusing on how labor union's attitude in the wage-setting process and the firm's investment strategy affect asset returns. We assume that the labor union's relative preferences between wage and employment depend on selected measures of firm's financial performance. The paper shows that if the labor union ties its preference for wage to the firm's dividends (or to any other quantity measuring available liquidity), then the volatility of the firm's returns increases. Consequently, equities have to grant high expected returns in order to remunerate the increased volatility. This mechanism offers an explanation for the "equity premium" (that is the difference between the equity return rate and the risk free rate). It is a welcome result that the simulated excess return is about the empirical estimate and that it is obtained with a plausibly low parameterization of the shareholders' risk aversion. (C) Published by Elsevier B.V
Impact of changes in consumer preferences on sectoral labour reallocation: evidence from the italian economy
Full text linkThis study empirically investigates the impact of changes in consumer preferences on
labour reallocation across the Italian economic sectors. For this purpose, coherent sectoral time series of consumer preferences and labour units are constructed from Italian national accounts and consumption expenditure data. In line with recent firm-level evidence, empirical findings indicate a positive and significant effect of preference changes on labour reallocation. Results are robust to several econometric specifications, different procedures to elicit preference changes, as well as the introduction of time-varying price coefficient and sector-specific effects of total consumption expenditure
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