The Unassuming Economist

From a paper by Kirsten Sehnbruch, Rafael Carranza Navarrete, and Dante Contreras Guajardo:

“One of the most complex policy issues that developing countries will face as a result of the employment crisis caused by the Covid crisis is the question of how they can better protect the unemployed. However, the analysis of unemployment insurance (UI) in developing economies with large informal sectors is in its infancy, with few papers providing solid empirical evidence. This paper therefore makes several contributions: first, it applies Chetty’s 2008 landmark work on UI to a transition economy (Chile) and shows that the moral hazard effects expected by policy makers, who designed the system are minimal, while liquidity effects were entirely neglected. Second, it demonstrates that it is not enough merely to quantify effects such as moral hazard, but to understand their causes as unemployment generated by moral hazard or liquidity constraints has different welfare implications and should therefore result in different policies. By means of an RDD, this paper analyses the Chilean UI system using a large sample of administrative data, which allows for an extremely precise analysis of how the system works, thus providing invaluable empirical lessons for other countries.”

From a paper by Andrea Ariu:

“This paper analyzes the growth of trade in Business Services with a particular focus on Ghana. This country experienced the fastest and most important increase in Business Services exports recorded in recent years. This spectacular growth has led Ghana to export as much as a developed country and improved its economy. The main factor underneath this growth is the improved capacity to export Business Services, which is likely to be accounted by an impressive inflow of foreign companies attracted by the economic and political conditions, together as the establishment of the secretariat of the African Continental Free Trade Area. These results are not specific to Ghana. In other African and non-African countries supply-side determinants show to be the main propellant of Business Services trade growth.”

From a paper by José Said Sánchez Martínez:

“This article investigates the frequency, causes, and implementation of austerity policies in state governments in Mexico during the period 2009–2021. The methodology combines documentary and statistical analysis (linear regression) to characterize such policies and identify the determinants of public spending. Results show that austerity policies are routine actions, that the reduction in federal transfers and the increase in public debt are some of their cause, and that they have a real application, which is observed in cuts to public spending.”

From a paper by Richard Rigo, Adriana Grencikova, Karol Krajco, Valentinas Navickas, and Vytautas Snieska:

“This study estimates the economic impacts of demographic changes driven by generational changes on the labour market and business environment in the Slovak Republic and selected European countries (Hungary, Poland, Czech Republic, Germany, France, Italy). It examines how demographic changes influence sectoral labour demand and the number of business entities. The main research questions are: RQ1: How do generational disparities affect sectoral demand? RQ2: How do generational disparities affect the number of entrepreneurs in the labour market? A comparative analysis of statistical data from 2013 to 2023 shows that sectors such as wholesale, retail, industry, and information and communication technology (ICT) face a shortage of skilled labour. To address RQ2, a regression analysis covering the long-term period from 1995 to 2020 is applied. The evaluation of RQ2 is supported by two hypotheses (H). H1: Changes in population development affect the number of enterprises at a statistically significant level. H2: Changes in population development affect the size of companies in a statistically significant variable. The results indicate that demographic trends associated with generational changes are reshaping the labour market structure, with the most significant impact observed in industries with high skill requirements and the segment of small and medium-sized enterprises. These businesses are flexible yet particularly vulnerable to shortages of skilled labour.”

From a paper by Giorgio Liotti, Marco Musella, and Ferdinando Ofria:

“Mainstream economic theory posits that high public debt levels create fragile conditions within the Eurozone by undermining economic growth, forcing countries to borrow on financial markets through the issuance of government bonds, and compromising the smooth functioning of the economic system. The Washington Consensus advocates fiscal austerity as a strategy to reduce public debt. This paper assesses whether the implementation of such austerity policies indeed reduces public debt. Using data on the change in cyclically adjusted primary balance in twelve Eurozone countries between 1999 and 2019 as a proxy for austerity measures, the empirical results, obtained using a Panel Dynamic OLS (PDOLS), reject the hypothesis of an inverse relationship between changes in the cyclically adjusted primary balance and the level of public debt. Conversely, we find that the adoption of fiscal austerity measures is associated with an increase in the level of public debt.”