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  1. What causes the child penalty?
    evidence from same sex couples and policy reforms
    Published: March 2019
    Publisher:  Statistics Norway, Research Department, Oslo

    Women experience significant reductions in labor market income following the birth of children, while their male partners experience no such income drops. This "relative child penalty" has been well documented and accounts for a significant amount of... more

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    Women experience significant reductions in labor market income following the birth of children, while their male partners experience no such income drops. This "relative child penalty" has been well documented and accounts for a significant amount of the gender income gap. In this paper we do two things. First, we use a simple household model to better understand the potential mechanisms driving the child penalty, which include gender norms around child care, female preferences for child care, efficient specialization within households, and the biological cost of giving birth. The model, combined with the estimated child penalties for heterosexual and same sex couples, suggests that the child penalty experienced by women in heterosexual couples is primarily explained by female preferences for child care and gender norms, with a smaller contribution due to the biological costs of giving birth. Second, we provide causal estimates on the impact of two family policies aimed at reducing the relative child penalty: paternity leave and subsidized early child care. Our precise and robust regression discontinuity results show no significant impact of paternity leave use on the relative child penalty. Early subsidized care seems to have more promise as a policy tool for affecting child penalties, as we find a 25% reduction in child penalties per year of child care use from a large Norwegian reform that expanded access to child care.

     

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    Language: English
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    hdl: 10419/210964
    Series: Discussion papers / Statistics Norway, Research Department ; no. 902
    Subjects: Gender wage gap; labor supply; child penalty; paternity leave; child care; same sexcouples; event study; regression discontinuity; instrumental variables
    Scope: 1 Online-Ressource (circa 82 Seiten)
  2. The causal effects of education on adult health, mortality and income
    evidence from Mendelian randomization and the raising of the school leaving age
    Published: March 2019
    Publisher:  IZA - Institute of Labor Economics, Bonn, Germany

    We compare estimates of the effects of education on health and health behaviour using two different instrumental variables in the UK Biobank data. One is based on a conventional natural experiment while the other, known as Mendelian randomization... more

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    We compare estimates of the effects of education on health and health behaviour using two different instrumental variables in the UK Biobank data. One is based on a conventional natural experiment while the other, known as Mendelian randomization (MR), is based on genetic variants. The natural experiment exploits a compulsory schooling reform in the UK in 1972 which involved raising the minimum school leaving age (RoSLA). MR exploits perturbations of germline genetic variation associated with educational attainment, which occur at conception. It has been widely used in epidemiology and clinical sciences. Under monotonicity, each IV identifies a LATE, with potentially different sets of compliers. The RoSLA affected the amount of education for those at the lower end of the ability distribution whereas MR affects individuals across the entire distribution. We find that estimates using each approach are remarkably congruent for a wide range of health outcomes. Effect sizes of additional years of education thus seem to be similar across the education distribution. Our study corroborates the usefulness of MR as a source of instrumental variation in education.

     

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    hdl: 10419/196690
    Series: Discussion paper series / IZA ; no. 12192
    Subjects: returns to education; health; instrumental variables; RoSLA; genomic confounding; LATE
    Scope: 1 Online-Ressource (circa 48 Seiten), Illustrationen
  3. Do constraints on women worsen child deprivations?
    framework, measurement, and evidence from India
    Published: March 2019
    Publisher:  IZA - Institute of Labor Economics, Bonn, Germany

    This paper provides a framework for analyzing constraints that apply specifically to women, which theory suggests may have negative impacts on child outcomes (as well as on women). We classify women's constraints into four dimensions: (i) domestic... more

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    This paper provides a framework for analyzing constraints that apply specifically to women, which theory suggests may have negative impacts on child outcomes (as well as on women). We classify women's constraints into four dimensions: (i) domestic physcial and psychological abuse, (ii) low influence on household decisions, (iii) restrictions on mobility, and (iv) limited information access. Each of these constraints are in principle determined within households. We test the impact of women's constraints on child outcomes using nationally representative household Demographic and Health Survey data from India, including 53,030 mothers and 113,708 children, collected in 2015-16. Outcomes are measured as multidimensional deprivations, utilizing UNICEF's Multidimensional Overlapping Deprivation Analysis index, incorporating deficiencies in children's access to water, sanitation, housing, healthcare, nutrition, education and information. We identify causal impacts using a Lewbel specification and present an array of additional econometric strategies and robustness checks. We find that children of women who are subjected to domestic abuse, have low influence in decision making, and limited freedom of mobility are more likely to be deprived.

     

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    hdl: 10419/196694
    Series: Discussion paper series / IZA ; no. 12196
    Subjects: child deprivations; MODA; child health; child nutrition; education; bargaining; empowerment; domestic abuse; mobility restrictions; information access; gendered constraints; multidimensional measurement; Lewbel estimation; instrumental variables; matching
    Scope: 1 Online-Ressource (circa 32 Seiten)
  4. Breaking ties
    regression discontinuity design meets market design
    Published: March 2019
    Publisher:  IZA - Institute of Labor Economics, Bonn, Germany

    Centralized school assignment algorithms must distinguish between applicants with the same preferences and priorities. This is done with randomly assigned lottery numbers, nonlottery tie-breakers like test scores, or both. The New York City public... more

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    Centralized school assignment algorithms must distinguish between applicants with the same preferences and priorities. This is done with randomly assigned lottery numbers, nonlottery tie-breakers like test scores, or both. The New York City public high school match illustrates the latter, using test scores, grades, and interviews to rank applicants to screened schools, combined with lottery tie-breaking at unscreened schools. We show how to identify causal effects of school attendance in such settings. Our approach generalizes regression discontinuity designs to allow for multiple treatments and multiple running variables, some of which are randomly assigned. Lotteries generate assignment risk at screened as well as unscreened schools. Centralized assignment also identifies screened school effects away from screened school cutoffs. These features of centralized assignment are used to assess the predictive value of New York City's school report cards. Grade A schools improve SAT math scores and increase the likelihood of graduating, though by less than OLS estimates suggest. Selection bias in OLS estimates is egregious for Grade A screened schools.

     

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    hdl: 10419/196703
    Series: Discussion paper series / IZA ; no. 12205
    Subjects: causal inference; natural experiment; local propensity score; instrumental variables; unified enrollment; school report card; school value added
    Scope: 1 Online-Ressource (circa 62 Seiten), Illustrationen
  5. A time to print, a time to reform
    Published: [2019]
    Publisher:  Department of Economics, Copenhagen Business School, Frederiksberg

    The public mechanical clock and the movable type printing press were two of the most important and complex general purpose technologies of the late medieval period. We document two of their most important, yet unforeseeable, consequences. First, an... more

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    The public mechanical clock and the movable type printing press were two of the most important and complex general purpose technologies of the late medieval period. We document two of their most important, yet unforeseeable, consequences. First, an instrumental variables analysis indicates that towns that were early adopters of clocks were more likely to also be early adopters of presses. We posit that towns with clocks became upper-tail human capital hubs−both technologies required extensive technical know-how that had many points of overlap. Second, a three-stage instrumental variables analysis indicates that the press influenced the adoption of Lutheranism and Calvinism, while the clock's effect on the Reformation was indirect (via the press).

     

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    hdl: 10398/9731
    hdl: 10419/208596
    Series: Working paper / Department of Economics, Copenhagen Business School ; 2019, 05
    Subjects: mechanical clock; printing press; technology; Reformation; human capital; Calvinism; Lutheranism; instrumental variables
    Scope: 1 Online-Ressource (circa 57 Seiten), Illustrationen
  6. Advice on using heteroscedasticity based identification
    Published: February 12, 2019
    Publisher:  Boston College, Chestnut Hill, MA, USA

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    Format: Online
    Series: Boston College working papers in economics ; 975
    Subjects: ivreg2h; instrumental variables; linear regression; endogeneity; identification; heteroskedasticity (
    Scope: 1 Online-Ressource (circa 12 Seiten)
  7. Tracking foreign capital
    the effect of capital inflows on bank lending in the UK
    Published: June 2019
    Publisher:  Graduate Institute of International and Development Studies, International Economics Department, Geneva, Switzerland

    This paper examines how UK banks channel capital inflows to the individual sectors of the domestic economy and to overseas residents. Information on the source country of foreign capital deposited with UK banks allows us to construct a novel Bartik... more

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    This paper examines how UK banks channel capital inflows to the individual sectors of the domestic economy and to overseas residents. Information on the source country of foreign capital deposited with UK banks allows us to construct a novel Bartik instrument for capital inflows. Our results suggest that foreign funds boost bank lending to the domestic economy. This result is due to the positive effect of capital inflows on bank lending to non-financial firms and to other domestic financial institutions. Banks do not channel capital inflows directly to households or the public sector. Much of the foreign capital is also channeled back abroad, reflecting the role of the UK as a global financial center.

     

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    hdl: 10419/201706
    Series: Working paper series / Graduate Institute of International and Development Studies, International Economics Department ; no. IHEIDWP2019, 10
    Subjects: capital flows; bank lending; credit allocation; international finance; instrumental variables; international financial linkages
    Scope: 1 Online-Ressource (circa 40 Seiten), Illustrationen
  8. Is the future of work childless?
    self-employment and fertility
    Published: 2019
    Publisher:  Global Labor Organization (GLO), Essen

    The growth of self-employment and in particular gig work may explain part of the declining fertility rates observed in many countries. This study examines this question drawing on longitudinal data to compare women’s fertility, proxied by maternity... more

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    The growth of self-employment and in particular gig work may explain part of the declining fertility rates observed in many countries. This study examines this question drawing on longitudinal data to compare women’s fertility, proxied by maternity leave uptake, when self-employed or wage workers. It considers the case of Portugal, which allows to focus on structural aspects of work types, as fertility-related social protection there does not discriminate between self-employment and wage work. Results indicate that there are no statistically significant differences in fertility between employees and self-employed women. These findings highlight the importance of social protection for the self-employed, at least as far as their fertility is concerned.

     

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    hdl: 10419/203477
    Series: GLO discussion paper ; no. 401
    Subjects: fertility; instrumental variables; maternity leave; self-employment
    Scope: 1 Online-Ressource (circa 25 Seiten), Illustrationen
  9. The effect of college education on health and mortality
    evidence from Canada
    Published: November 2019
    Publisher:  IZA - Institute of Labor Economics, Bonn, Germany

    We investigate the returns to college attendance in Canada in terms of health and mortality reduction. To do so, we first use a dynamic health microsimulation model to document how interventions which incentivize college attendance among high school... more

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    We investigate the returns to college attendance in Canada in terms of health and mortality reduction. To do so, we first use a dynamic health microsimulation model to document how interventions which incentivize college attendance among high school graduates may impact their health trajectory, health care consumption and life expectancy. We find large returns both in terms of longevity (4.1 years additional years at age 51), reduction in the prevalence of various health conditions (10-15 percentage points reduction in diabetes and 5 percentage points for stroke) and health care consumption (27.3% reduction in lifetime hospital stays, 19.7 for specialists). We find that education impacts mortality mostly by delaying the incidence of health conditions as well as providing a survival advantage conditional on having diseases. Second, we provide quasi-experimental evidence on the impact of college attendance on long-term health outcomes by exploiting the Canadian Veteran's Rehabilitation Act, a program targeted towards returning WW-II veterans and which incentivized college attendance. The impact on mortality are found to be larger than those estimated from the health microsimulation model (hazard ratio of 0.216 compared to 0.6 in the simulation model) which suggests substantial returns to college education in terms of healthy life extension which we estimate to be approximately one million canadian dollars.

     

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    hdl: 10419/215208
    Series: Discussion paper series / IZA ; no. 12812
    Subjects: mortality; education; microsimulation; quasi-experimental; instrumental variables; veterans
    Scope: 1 Online-Ressource (circa 26 Seiten), Illustrationen
  10. The long-run effects of cesarean sections
    Published: October 2019
    Publisher:  VATT Institute for Economic Research, Helsinki

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    Language: English
    Media type: Ebook
    Format: Online
    ISBN: 9789522742445
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    Series: VATT working papers ; 125
    Subjects: c-section; child health; natural experiment; instrumental variables; family fixed effects
    Scope: 1 Online-Ressource (circa 51 Seiten), Illustrationen
  11. Proxy structural vector autoregressions, informational sufficiency and the role of monetary policy
    Published: [2019]
    Publisher:  School of Economics and Finance, Queen Mary University of London, London

    We show that the contemporaneous and longer horizon impulse responses estimated using small-scale Proxy structural vector autoregressions (SVARs) can be severely biased in the presence of information insufficiency. Instead, we recommend the use of a... more

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    We show that the contemporaneous and longer horizon impulse responses estimated using small-scale Proxy structural vector autoregressions (SVARs) can be severely biased in the presence of information insufficiency. Instead, we recommend the use of a Proxy Factor Augmented VAR (FAVAR) model that remains robust in the presence of this problem. In an empirical exercise, we demonstrate that this issue has important consequences for the estimated impact of monetary policy shocks in the US. We find that the impulse responses of real activity and prices estimated using a Proxy FAVAR are substantially larger and more persistent than those suggested by a small-scale Proxy SVAR.

     

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    hdl: 10419/210452
    Series: Working paper / School of Economics and Finance, Queen Mary University of London ; no. 894 (September 2019)
    Subjects: information sufficiency; dynamic factor models; instrumental variables; monetary policy; structural VAR
    Scope: 1 Online-Ressource (circa 27 Seiten), Illustrationen
  12. Private provider incentives in health care
    the case of birth interventions
    Published: [2019]
    Publisher:  UTS, University of Technology Sydney, [Sydney, NSW]

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    Series: Working paper / Centre for Health Economics Research and Evaluation, University of Technology Sydney ; 2019, 01 (April 2019)
    Subjects: maternity care; birth interventions; financing of health care; incentives; microeconomics; instrumental variables
    Scope: 1 Online-Ressource (circa 34 Seiten), Illustrationen
  13. The impact of food prices on conflict revisited
    Published: [2019]
    Publisher:  Ghent University, Faculty of Economics and Business Administration, Ghent

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    Series: Working paper / Faculty of Economics and Business Administration ; 979 (2019)
    Subjects: conflict; food prices; instrumental variables
    Scope: 1 Online-Ressource (circa 30 Seiten), Illustrationen
  14. I know, therefore I am healthier?
    the role of education in health-related behaviors
    Published: [2019]
    Publisher:  CEDE, Centro de Estudios sobre Desarrollo Económico, Bogotá, D.C., Colombia

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    Media type: Book
    Format: Print
    Series: Documentos CEDE ; 2019, no. 33 (septiembre de 2019)
    Subjects: health; behavior; education; urban; instrumental variables
    Scope: 68 Seiten, Illustrationen
    Notes:

    Erscheint auch als Online-Ausgabe

  15. Identifying modern macro equations with old shocks
    Published: 28 May 2019
    Publisher:  Centre for Economic Policy Research, London

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    Format: Online
    Series: Array ; DP13765
    Subjects: Structural equations; instrumental variables; impulse responses; robust inference
    Scope: 1 Online-Ressource (circa 47 Seiten)
  16. Tourism and local growth in Italy
    Published: [2019]
    Publisher:  Banca d'Italia, [Rom]

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    Series: Questioni di economia e finanza / Banca d'Italia ; number 509 (October 2019)
    Subjects: tourism; economic growth; tourism expenditure; beach disease; dynamic paneldata; instrumental variables
    Scope: 1 Online-Ressource (circa 39 Seiten), Illustrationen
  17. Twin instrument, fertility and women's labor force participation: evidence from Colombian low-income families
    = Usando nacimientos múltiples para identificar el efecto de la fecundidad en la oferta laboral de mujeres de bajos ingresos en Colombia
    Published: [2019]
    Publisher:  Banco de la Republica Colombia, Bogotá, Colombia

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    Series: Borradores de economía ; no. 1071 (2019)
    Subjects: fertility; female labor supply; twin births; instrumental variables
    Scope: 1 Online-Ressource (circa 33 Seiten), Illustrationen
  18. Nonparametric regression with selectively missing covariates
    Published: [2019]
    Publisher:  Collaborative Research Center Transregio 190, Munich, Germany

    We consider the problem of regressions with selectively observed covariates in a nonparametric framework. Our approach relies on instrumental variables that explain variation in the latent covariates but have no direct e ffect on selection. The... more

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    We consider the problem of regressions with selectively observed covariates in a nonparametric framework. Our approach relies on instrumental variables that explain variation in the latent covariates but have no direct e ffect on selection. The regression function of interest is shown to be a weighted version of observed conditional expectation where the weighting function is a fraction of selection probabilities. Nonparametric identifi cation of the fractional probability weight (FPW) function is achieved via a partial completeness assumption. We provide primitive functional form assumptions for partial completeness to hold. The identi fication result is constructive for the FPW series estimator. We derive the rate of convergence and also the pointwise asymptotic distribution. In both cases, the asymptotic performance of the FPW series estimator does not suff er from the inverse problem which derives from the nonparametric instrumental variable approach. In a Monte Carlo study, we analyze the finite sample properties of our estimator and we demonstrate the usefulness of our method in analyses based on survey data. We also compare our approach to inverse probability weighting, which can be used alternatively for unconditional moment estimation. In the empirical application, we focus on two diff erent applications. We estimate the association between income and health using linked data from the SHARE survey data and administrative pension information and use pension entitlements as an instrument. In the second application we revisit the question how income aff ects the demand for housing based on data from the Socio-Economic Panel Study. In this application we use regional income information on the residential block level as an instrument. In both applications we show that income is selectively missing and we demonstrate that standard methods that do not account for the nonrandom selection process lead to signi ficantly biased estimates for individuals with low income.

     

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    hdl: 10419/222103
    Series: Discussion paper / Rationality & Competition, CRC TRR 190 ; no. 206 (December 4, 2019)
    Subjects: Selection model; instrumental variables; fractional probability weighting; nonparametric identification; partial completeness; incomplete data; series estimation; income distribution; health
    Scope: 1 Online-Ressource (circa 38 Seiten), Illustrationen
  19. Do constraints on women worsen child deprivations?
    framework, measurement, and evidence from India
    Published: 2019
    Publisher:  UNICEF Office of Research - Innocenti, Florence, Italy

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    Max-Planck-Institut für ausländisches öffentliches Recht und Völkerrecht, Bibliothek
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    Series: Office of Research - Innocenti working paper ; WP-2019, 04 (July 2019)
    Subjects: child deprivations; MODA; child health; child nutrition; education; bargaining; empowerment; domestic abuse; mobility restrictions; information access; gendered constraints; multidimensional measurement; Lewbel estimation; instrumental variables; matching
    Scope: 1 Online-Ressource (circa 42 Seiten), Illustrationen
  20. The economic cost of air pollution
    evidence from Europe
    Published: 2019
    Publisher:  OECD, Paris, France

    This study provides the first evidence that air pollution causes economy-wide reductions in market economic activity based on data for Europe. The analysis combines satellite-based measures of air pollution with statistics on regional economic... more

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    This study provides the first evidence that air pollution causes economy-wide reductions in market economic activity based on data for Europe. The analysis combines satellite-based measures of air pollution with statistics on regional economic activity at the NUTS-3 level throughout the European Union over the period 2000-15. An instrumental variables approach based on thermal inversions is used to identify the causal impact of air pollution on economic activity. The estimates show that a 1μg/m3 increase in PM2.5 concentration (or a 10% increase at the sample mean) causes a 0.8% reduction in real GDP that same year. Ninety-five per cent of this impact is due to reductions in output per worker, which can occur through greater absenteeism at work or reduced labour productivity. Therefore, the results suggest that public policies to reduce air pollution may contribute positively to economic growth. Indeed, the large economic benefits from pollution reduction uncovered in the study compare with relatively small abatement costs. Thus, more stringent air quality regulations could be warranted based solely on economic grounds, even ignoring the large benefits in terms of avoided mortality.

     

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    Source: Staatsbibliothek zu Berlin
    Language: English
    Media type: Book
    Format: Online
    Other identifier:
    Series: OECD Economics Department working papers ; no. 1584
    Subjects: Economics; air pollution; economic output; thermal inversions; instrumental variables
    Scope: 1 Online-Ressource (circa 63 Seiten), Illustrationen
  21. "The mother of all political problems"?
    On asylum seekers and elections in Germany
    Published: March 1, 2019
    Publisher:  Verein für Socialpolitik, [Leipzig]

    Drawing on panel data from six elections between 1998 and 2017 in Germany, we estimate the causal effect of immigration – described by Germany’s interior minister as the "mother of all political problems" – on electoral support for the far right and... more

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    Drawing on panel data from six elections between 1998 and 2017 in Germany, we estimate the causal effect of immigration – described by Germany’s interior minister as the "mother of all political problems" – on electoral support for the far right and the far left. Our identification strategy is underpinned by focusing on a particular category of immigrants, asylum seekers, who are administratively allocated across Germany according to pre-defined quotas. We find that the presence of asylum seekers has a polarizing effect, increasing vote shares for both the far right and far left. For the right, the magnitude of this effect is found to be independent of the unemployment level. For the left, the positive effect of asylum seekers tapers off with increases in unemployment, eventually becoming negative. The results suggest that the confluence of high unemployment and high immigration would tilt the electoral landscape in Germany to the right.

     

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    Source: Union catalogues
    Language: English
    Media type: Book
    Format: Online
    Other identifier:
    hdl: 10419/203615
    Series: Array ; Array
    Subjects: Asylum seekers; foreigners; voting outcomes; fractional response; instrumental variables
    Scope: 1 Online-Ressource (circa 35 Seiten), Illustrationen
  22. Risk aversion among Australian households
    Published: 2019
    Publisher:  Australian National University, Crawford School of Public Policy, Centre for Applied Macroeconomic Analysis, [Canberra]

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    VS 662
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    Source: Union catalogues
    Language: English
    Media type: Book
    Format: Online
    Series: CAMA working paper ; 2019, 27 (March 2019)
    Subjects: risk aversion; intertemporal consumption choice; Euler equation; measurement error; GMM; instrumental variables
    Scope: 1 Online-Ressource (circa 47 Seiten), Illustrationen
  23. Tracking foreign capital
    the effect of capital inflows on bank lending in the UK
    Published: June 2019
    Publisher:  Bank of England, London

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    ZBW - Leibniz-Informationszentrum Wirtschaft, Standort Kiel
    VS 443
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    Source: Union catalogues
    Language: English
    Media type: Book
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    Series: Staff working paper / Bank of England ; no. 804
    Subjects: Capital flows; bank lending; credit allocation; international finance; instrumental variables; international financial linkages
    Scope: 1 Online-Ressource (circa 40 Seiten), Illustrationen
  24. The economic cost of air pollution
    evidence from Europe
    Published: 2019
    Publisher:  OECD, Paris, France

    This study provides the first evidence that air pollution causes economy-wide reductions in market economic activity based on data for Europe. The analysis combines satellite-based measures of air pollution with statistics on regional economic... more

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    Staatsbibliothek zu Berlin - Preußischer Kulturbesitz, Haus Unter den Linden
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    Universität Potsdam, Universitätsbibliothek
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    This study provides the first evidence that air pollution causes economy-wide reductions in market economic activity based on data for Europe. The analysis combines satellite-based measures of air pollution with statistics on regional economic activity at the NUTS-3 level throughout the European Union over the period 2000-15. An instrumental variables approach based on thermal inversions is used to identify the causal impact of air pollution on economic activity. The estimates show that a 1μg/m3 increase in PM2.5 concentration (or a 10% increase at the sample mean) causes a 0.8% reduction in real GDP that same year. Ninety-five per cent of this impact is due to reductions in output per worker, which can occur through greater absenteeism at work or reduced labour productivity. Therefore, the results suggest that public policies to reduce air pollution may contribute positively to economic growth. Indeed, the large economic benefits from pollution reduction uncovered in the study compare with relatively small abatement costs. Thus, more stringent air quality regulations could be warranted based solely on economic grounds, even ignoring the large benefits in terms of avoided mortality.

     

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    Source: Staatsbibliothek zu Berlin
    Language: English
    Media type: Book
    Format: Online
    Other identifier:
    Series: OECD Economics Department working papers ; no. 1584
    Subjects: Economics; air pollution; economic output; thermal inversions; instrumental variables
    Scope: 1 Online-Ressource (circa 63 Seiten), Illustrationen
  25. The long-term effects of employer-sponsored pension plans on non-workplace returns on investments
    Published: January 14, 2019
    Publisher:  Statistics Canada, [Ottawa]

    ZBW - Leibniz-Informationszentrum Wirtschaft, Standort Kiel
    VS 235
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    Content information
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    Source: Union catalogues
    Language: English
    Media type: Ebook
    Format: Online
    ISBN: 9780660290546
    Other identifier:
    11F0019M-No. 413
    Series: Analytical Studies Branch research paper series ; no. 403
    Research paper / Statistics Canada
    Subjects: Employer-sponsored pension plan; tax-free savings account; return on investment; financial competence; administrative tax data; instrumental variables
    Scope: 1 Online-Ressource (circa 31 Seiten), Illustrationen