KyklosPub Date : 2025-08-15DOI: 10.1111/kykl.70009
Michael Christl, Monika Köppl-Turyna
{"title":"Net Fiscal Contributions in the EU—The Role of Indirect Taxation and In-Kind Benefits","authors":"Michael Christl, Monika Köppl-Turyna","doi":"10.1111/kykl.70009","DOIUrl":"https://doi.org/10.1111/kykl.70009","url":null,"abstract":"<div>\u0000 \u0000 <p>This paper extends the traditional concept of disposable income by including in-kind transfers for education and health as well as consumption taxes in the analysis. This extended view of tax–benefit systems offers a more comprehensive understanding of redistribution mechanisms within countries and facilitates cross-country comparisons. As a first step, our analysis identifies households as either net contributors or net beneficiaries based on this extended income concept. Our results show that there is considerable variability in net fiscal contributions across households, influenced by factors such as income level, household composition and age. We find that extending the income concept reduces the number of net contributor households, as the monetary effect of in-kind benefits outweighs the effect of consumption taxes paid. However, the number of net contributor households varies considerably across EU Member States. In a second step, we take a life-cycle perspective and estimate the contribution of each age cohort in each EU Member State. Our results show that individuals contribute very differently over the life cycle across Member States and that these contributions are highly correlated with individuals' retirement decisions. We show that corporatist welfare state regimes in particular tend to have low and even negative life-cycle contributions compared to universal welfare state systems and the Baltic insurance systems, with early retirement playing a crucial role in shaping these differences.</p>\u0000 </div>","PeriodicalId":47739,"journal":{"name":"Kyklos","volume":"78 4","pages":"1607-1636"},"PeriodicalIF":1.3,"publicationDate":"2025-08-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145228176","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Time Allocation, Experiential Well-Being, and Income: Happier Time for the Richer?","authors":"Nicola Daniele Coniglio, Rezart Hoxhaj, Raffaella Patimo","doi":"10.1111/kykl.70008","DOIUrl":"https://doi.org/10.1111/kykl.70008","url":null,"abstract":"<p>Do richer individuals allocate their time to activities that result in higher levels of happiness? Do people experience different levels of happiness for the same activities based on their income levels? This study offers a comprehensive examination of these questions, drawing from the American Time Use Survey (ATUS). Our findings reveal that income shapes individuals' allocation of time, but “money does not buy happier time.” We find evidence that high-income women and in general high-income people during weekends and holidays tend to allocate more time in activities that lead to higher experiential well-being. Yet, interestingly, we find that the subjective well-being derived by rich people from the activities they perform more frequently is substantially lower than the one experienced by an average US resident when performing the same activities. Happiness associated with the use of time seems to be in the eyes of the beholder, as we find that subjective happiness differences between rich and poor are explained by different preferences over similar activities (time use preference channel) rather than a different allocation of time (activity-composition channel).</p>","PeriodicalId":47739,"journal":{"name":"Kyklos","volume":"78 4","pages":"1593-1606"},"PeriodicalIF":1.3,"publicationDate":"2025-07-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/kykl.70008","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145228137","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
KyklosPub Date : 2025-07-24DOI: 10.1111/kykl.70007
Chien-Wen Yang
{"title":"How Urban Households' Consumption Reflects Their Habits: Evidence From Taiwan","authors":"Chien-Wen Yang","doi":"10.1111/kykl.70007","DOIUrl":"https://doi.org/10.1111/kykl.70007","url":null,"abstract":"<div>\u0000 \u0000 <p>This paper utilizes data from the Survey of Family Income and Expenditure in Taiwan to discuss habit formation, encompassing internal and external habits, in urban household consumption behaviors. Specifically, we examine high-visibility consumption commodities and narrower spatial reference groups to capture external habits among urban households. Our empirical findings reveal evidence of habit formation in consumption behaviors among urban households in Taiwan. We observe the durability of some expenditure items for internal habits. Additionally, household consumption is influenced by the consumption of reference groups, indicating external habits. This influence is particularly pronounced within highly visible commodities, such as alcoholic beverages, tobacco, beauty, apparel, and recreation and culture. Most of these are more prominent for households facing narrower spatial reference groups, with tobacco being especially notable, highlighting potential public health concerns associated with localized social interactions. Furthermore, the effect of external habits on recreation and culture appears across wider spatial contexts, suggesting a more generalized external influence. These findings carry important implications for public health and the labor market, warranting attention from policymakers.</p>\u0000 </div>","PeriodicalId":47739,"journal":{"name":"Kyklos","volume":"78 4","pages":"1567-1592"},"PeriodicalIF":1.3,"publicationDate":"2025-07-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145228131","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
KyklosPub Date : 2025-07-12DOI: 10.1111/kykl.70005
Bernard Cléry Nomo Beyala
{"title":"Do Fiscal Rules Enhance States' Fiscal Capacity?","authors":"Bernard Cléry Nomo Beyala","doi":"10.1111/kykl.70005","DOIUrl":"https://doi.org/10.1111/kykl.70005","url":null,"abstract":"<div>\u0000 \u0000 <p>This paper examines the impact of fiscal rules on fiscal capacity. It is based on the premise that fiscal rules can enhance citizens' tax morale and willingness to pay taxes, thereby improving fiscal capacity. Using a global dataset spanning from 1985 to 2021, we find that stricter fiscal rules have a positive impact on fiscal capacity. This relationship holds when excluding EU countries, differentiating between supranational and national rules and employing alternative measures of fiscal capacity. Robustness checks further reveal that while fiscal capacity tends to rise with the number of rules in place, the combination of rules plays a relevant role. These findings underscore the importance of deliberately selecting and designing fiscal rules to effectively strengthen fiscal capacity.</p>\u0000 </div>","PeriodicalId":47739,"journal":{"name":"Kyklos","volume":"78 4","pages":"1539-1566"},"PeriodicalIF":1.3,"publicationDate":"2025-07-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145228000","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
KyklosPub Date : 2025-07-10DOI: 10.1111/kykl.70006
Ryan H. Murphy
{"title":"Neutral Theory, Stochasticity, and the Efficiency of Social Institutions","authors":"Ryan H. Murphy","doi":"10.1111/kykl.70006","DOIUrl":"https://doi.org/10.1111/kykl.70006","url":null,"abstract":"<p>This paper draws on the concept of neutral theory from molecular biology to describe how rational choice foundations may be given to cultural practices or social institutions such that the specifics of the practice or institution are inherently arbitrary, that is, stochastic. Neutral theory describes the process by which genes at the molecular level may propagate across a species without conferring any benefit in terms of evolutionary fitness. Likewise, social institutions or cultural practices may propagate across the group without any instrumental use for them. Interpretations of practices and institutions in terms of neutral theory are generally simpler than other economic explanations. On the other hand, definitionally, neutral explanations of cultural practices are less likely because they will not be actively selected for at the group level.</p>","PeriodicalId":47739,"journal":{"name":"Kyklos","volume":"78 4","pages":"1530-1538"},"PeriodicalIF":1.3,"publicationDate":"2025-07-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/kykl.70006","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145228063","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
KyklosPub Date : 2025-07-09DOI: 10.1111/kykl.70004
Yang Zhou, Josh Matti, Nabamita Dutta
{"title":"Language Structure and Political Ideology: Evidence From the World Value Survey","authors":"Yang Zhou, Josh Matti, Nabamita Dutta","doi":"10.1111/kykl.70004","DOIUrl":"https://doi.org/10.1111/kykl.70004","url":null,"abstract":"<div>\u0000 \u0000 <p>This paper studies the relationship between language structure and political ideology. Using several language structure data sets and the World Value Survey data, we test the relationship between linguistic characteristics and political ideologies on democracy for over 150,000 people in countries across the world during the past approximately two decades. We explore the impact of pronoun drop, politeness distinction, and irrealis mood on people's political ideology. In addition to considering the links between these language structures and support for democracy, we also examine how language structures influence what aspects of democracy people care about. Additionally, we also test for heterogeneity by income level and degree of democracy across countries. In considering culture, we conduct mediation analysis with the traits of individualism, power distance, and uncertainty avoidance. Overall, these further tests, along with the robustness tests, support the main results by highlighting the connections between language structures and political ideology.</p>\u0000 </div>","PeriodicalId":47739,"journal":{"name":"Kyklos","volume":"78 4","pages":"1514-1529"},"PeriodicalIF":1.3,"publicationDate":"2025-07-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145228225","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
KyklosPub Date : 2025-07-02DOI: 10.1111/kykl.70003
Niclas Berggren, Erik Enger Karlson, Elis Hodzic
{"title":"Trust and Income Among Immigrants in Europe","authors":"Niclas Berggren, Erik Enger Karlson, Elis Hodzic","doi":"10.1111/kykl.70003","DOIUrl":"https://doi.org/10.1111/kykl.70003","url":null,"abstract":"<p>Social trust, a key cultural trait influencing economic behavior, plays a critical yet understudied role in immigrant integration. This paper examines how trust, both as an individual disposition and as a culturally inherited norm, relates to the economic integration of immigrants in Europe, measured by household income. Using European Social Survey data from 2002 to 2022, we analyze first- and second-generation immigrants, incorporating both individual trust levels and average trust in countries of origin through an epidemiological approach. We find that trust is positively associated with income for both groups, but its source matters: for first-generation immigrants, country-of-origin trust is a stronger predictor, while for the second generation, individual trust dominates. Origin-based trust appears to facilitate labor market navigation for first-generation immigrants, though its influence diminishes over time. In contrast, second-generation immigrants benefit more from institutional familiarity and culturally embedded trust. Given the stability of social trust and its limited responsiveness to policy, the results point to a need for targeted integration strategies for immigrants from low-trust backgrounds.</p>","PeriodicalId":47739,"journal":{"name":"Kyklos","volume":"78 4","pages":"1496-1513"},"PeriodicalIF":1.3,"publicationDate":"2025-07-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/kykl.70003","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145228049","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
KyklosPub Date : 2025-07-01DOI: 10.1111/kykl.70002
Thomas Barnebeck Andersen
{"title":"Sovereign Debt in a Warming World: Are Credit Ratings Responding to Climate Risks?","authors":"Thomas Barnebeck Andersen","doi":"10.1111/kykl.70002","DOIUrl":"https://doi.org/10.1111/kykl.70002","url":null,"abstract":"<p>Investors and policymakers increasingly worry that climate change threatens sovereign debt. While recent studies find a negative effect, they typically estimate models assuming a time-invariant impact and rely on climate variables endogenous to economic and policy conditions. This paper addresses both concerns by employing a long-horizon, nonactionable, external measure of climate risk from the Notre Dame Global Adaptation Initiative, interacted with year-fixed effects to capture any time-varying impacts. Analyzing sovereign issuer default ratings from major agencies, I find no evidence that climate risk systematically affects ratings or that its influence has evolved over time. I confirm these results using climate disaster data from the Emergency Events Database. These findings likely reflect credit rating agencies' short- to medium-term focus on economic fundamentals rather than on long-term climate risks.</p>","PeriodicalId":47739,"journal":{"name":"Kyklos","volume":"78 4","pages":"1479-1495"},"PeriodicalIF":1.3,"publicationDate":"2025-07-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/kykl.70002","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145228047","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
KyklosPub Date : 2025-06-21DOI: 10.1111/kykl.70000
Eric Rougier, Matthieu Clément, François Combarnous, Dominique Darbon
{"title":"“You Can't Always Get What You Want”: Middle-Class Expectations and Incomplete Social Contracts in the Global South","authors":"Eric Rougier, Matthieu Clément, François Combarnous, Dominique Darbon","doi":"10.1111/kykl.70000","DOIUrl":"https://doi.org/10.1111/kykl.70000","url":null,"abstract":"<p>Over the past decade, much of the global middle class has become more vulnerable and disillusioned. Drawing on original qualitative surveys in Brazil, Côte d'Ivoire, Turkey, and Vietnam, this paper reveals a persistent disconnect between middle-class expectations and government policy in the core domains of the social contract: public services, social protection, and participation. On the demand side, middle-class respondents report frustration with poor service provision—particularly in education, health, and security—and with tax systems, they perceive as burdensome yet unreciprocated. On the supply side, policymakers emphasize market access and credit expansion while retreating from broad-based public support, a pattern we term “laissez-faire paternalism.” Despite their dissatisfaction, middle-class citizens often remain politically disengaged due to fragmentation and institutional barriers, producing a form of “truncated citizenship” in which they enjoy consumption rights but lack political influence. These findings challenge the assumption that middle-class growth naturally drives reform. Instead, we find a fragmented and politically instrumentalized group with limited capacity to press for change. By contrasting demand- and supply-side perceptions, the paper uncovers institutional blind spots and warns of rising frustration and instability if governance does not become more inclusive and responsive.</p>","PeriodicalId":47739,"journal":{"name":"Kyklos","volume":"78 4","pages":"1463-1478"},"PeriodicalIF":1.3,"publicationDate":"2025-06-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/kykl.70000","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145228243","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
KyklosPub Date : 2025-06-18DOI: 10.1111/kykl.70001
Zhiyong An
{"title":"Food as a Necessity Good and Food Subsidies","authors":"Zhiyong An","doi":"10.1111/kykl.70001","DOIUrl":"https://doi.org/10.1111/kykl.70001","url":null,"abstract":"<div>\u0000 \u0000 <p>In this article, we extend a benchmark model to allow for a non-welfarist social welfare function (SWF) that treats food as a necessity good rather than a regular good, while preserving the assumption that individuals are rational. We show that the widespread use of food subsidies by governments worldwide for redistributive purposes can be justified by recognizing food as a necessity good in almost all societies. Specifically, (1) If food is treated as a regular good, food consumption should be neither taxed nor subsidized; (2) If food is treated as a necessity good, food consumption should be subsidized; and (3) The higher the “basic need” for food, the more heavily food consumption should be subsidized. We argue that our model provides a general theoretical framework that can also justify subsidies for other necessity goods, including essential utilities such as electricity and gas. Additionally, our model suggests that adopting a non-welfarist SWF would result in the breakdown of the Atkinson–Stiglitz theorem.</p>\u0000 </div>","PeriodicalId":47739,"journal":{"name":"Kyklos","volume":"78 4","pages":"1457-1462"},"PeriodicalIF":1.3,"publicationDate":"2025-06-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145228077","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}