The Unassuming Economist

From a paper by Daniel Halvarsson, and Martin Korpi:

“This study investigates the relationship between the urban wage premium and employer concentration using Swedish full population employer-employee data. Departing from an AKM modeling framework to distinguish worker from firm specific heterogeneity – a measure of rent-sharing – we then measure the urban wage premium using differences in the estimated firm fixed effects at the level of local industries, nested within local labor markets. Our results suggest that labor market employer concentration, as calculated using the Hirschman-Herfindahl index and a leave-one-out instrumental variable design, can account for a significant share of the estimated urban wage premium (UWP). Addressing city-level wage income inequality by applying our model to different segments of the local labor market income distribution, we find that while the UWP pertains to all income segments, it is largest for top-income levels (above the 90th percentile), and within this segment employer concentration also has the largest explanatory power. Thus, while being an important explanatory factor for all percentiles of the local income distribution, a relatively lower employer concentration within larger cities, and vice versa, higher concentration within smaller cities, primarily help explain the variance of top wages within these cities/labor markets.”

From a paper by by Luis I. Jácome, Nicolás E. Magud, Samuel Pienknagura, Martin Uribe:

“As inflation targeting (IT) turns 35, it has become a key institutional monetary framework by central banks. Yet, this paper shows that stark differences exist among inflation targeting countries in the conduct of monetary policy. Behind such heterogeneity, the legacy of a high inflation history appears as a preponderant factor. We propose a model that diverges from existing IT workhorse models by adding path-dependence (to a forward-looking model) and potentially imperfect central bank credibility. We show that achieving low inflation (hitting the target) requires more aggressive monetary policy, and is costlier from an output point of view, when individuals’ past inflationary experiences shape their inflation expectation formation. In turn, we provide empirical evidence of the need for these two theoretical additions. Countries that experienced a high level of inflation before adopting the IT regime tend to respond more aggressively to deviations of inflation expectations from the central bank’s target. We also point to the existence of a credibility puzzle, whereby the strength of a central bank’s monetary policy response to deviations from the inflation target remains broadly unchanged even as central banks gain credibility over time. Put differently, a country’s inflationary past casts a long and persistent shadow on central banks.”

From a paper by Antonis Tsitouras & Harry Papapanagos:

“Few studies have explored the impact of foreign direct investment (FDI), trade openness, economic growth, education, and inflation influence income inequality in developed economies. This study examines these factors in Greece using the autoregressive distributed lag (ARDL) method. The novelty of this research lies in its application of three distinct measures of income inequality: (a) the Gini index, (b) the income share of the poorest 20% quantile, and (c) the income share of the top 20% quantile. The results have significant theoretical and policy implications. First, GDP per capita elasticities strongly support Kuznets’ theory. Second, while FDI does not significantly affect on income distribution in the short term, it predominantly improves income distribution at the upper and median levels in the long term while reducing the income share of the lowest 20% quantile. Third, trade openness initially increases income inequality but primarily improves distribution at the lower and median levels over time. Fourth, although education initially exacerbates economic inequality, it significantly supports lower and median income levels in the long run. Finally, inflation negatively impacts income equality in both the medium and long term, boosting the earnings of the top 20% quantile over time. These findings suggest that governments should address income inequality by focusing on sustainable growth, improving education, implementing reforms to attract FDI, boosting exports, and adopting measures to control inflation.”

From a paper by Antonis Tsitouras & Harry Papapanagos:

“Few studies have explored the impact of foreign direct investment (FDI), trade openness, economic growth, education, and inflation influence income inequality in developed economies. This study examines these factors in Greece using the autoregressive distributed lag (ARDL) method. The novelty of this research lies in its application of three distinct measures of income inequality: (a) the Gini index, (b) the income share of the poorest 20% quantile, and (c) the income share of the top 20% quantile. The results have significant theoretical and policy implications. First, GDP per capita elasticities strongly support Kuznets’ theory. Second, while FDI does not significantly affect on income distribution in the short term, it predominantly improves income distribution at the upper and median levels in the long term while reducing the income share of the lowest 20% quantile. Third, trade openness initially increases income inequality but primarily improves distribution at the lower and median levels over time. Fourth, although education initially exacerbates economic inequality, it significantly supports lower and median income levels in the long run. Finally, inflation negatively impacts income equality in both the medium and long term, boosting the earnings of the top 20% quantile over time. These findings suggest that governments should address income inequality by focusing on sustainable growth, improving education, implementing reforms to attract FDI, boosting exports, and adopting measures to control inflation.”

From a paper by Amir Mohammad Moghani, and Reyhaneh Loni:

“Energy plays a critical role in the economic advancement of nations. The reliance of oil-rich countries on energy revenues underscores the importance of ensuring the security of this vital resource. Safeguarding the security of energy resources is a top priority for the national security of the producing countries. The current geopolitical landscape is heavily influenced by energy considerations, making energy governance a key factor in enhancing national security. This review paper aims to discuss and present the role of energy governance impacts on the national security of oil-rich countries based on energy governance literature. The scientific publications selected to be studied are from 2010 to 2024. The findings suggest that effective energy governance plays a crucial role in enhancing the national security of countries abundant in oil resources. It is imperative to tailor energy governance to bolster national resilience in the energy sector, given the interconnectedness of energy governance, energy security, and national security. As such, pivotal aspects of energy governance encompass revenues and resources management, stakeholder participation, global politics and international relations, and the culture and value of societies.”