{"title":"Market competition and the adoption of clean technology: Evidence from the taxi industry","authors":"Raúl Bajo-Buenestado , Miguel Ángel Borrella-Mas","doi":"10.1016/j.euroecorev.2025.104967","DOIUrl":"10.1016/j.euroecorev.2025.104967","url":null,"abstract":"<div><div>Environmental policies may be ineffective when firms lack incentives to adopt cleaner technologies due to their market power. This paper examines whether a competition shock in a concentrated industry can stimulate the adoption of policy-favored cleaner technologies. Using a unique panel dataset covering the universe of vehicles purchased by taxi drivers in Spain, we exploit the entry of ride-hailing platforms as a natural experiment to identify the impact on their vehicle choices. We find that increased competition led to a 30% surge in the adoption of electric-powered vehicles among taxi drivers. Back-of-the-envelope calculations suggest an overall reduction in CO2 emissions, highlighting the potential of competition policy to promote environmental sustainability while mitigating market power.</div></div>","PeriodicalId":48389,"journal":{"name":"European Economic Review","volume":"174 ","pages":"Article 104967"},"PeriodicalIF":2.8,"publicationDate":"2025-02-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143454265","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Disinformation for hire: A field experiment on unethical jobs in online labor markets","authors":"Alain Cohn , Jan Stoop","doi":"10.1016/j.euroecorev.2024.104936","DOIUrl":"10.1016/j.euroecorev.2024.104936","url":null,"abstract":"<div><div>The spread of misinformation has been linked to increased social divisions and adverse health outcomes, but less is known about the production of disinformation, which is misinformation intended to mislead. In a field experiment on MTurk (<em>N</em> = 1,197), we found that while 70 % of workers accepted a control job, 61 % accepted a disinformation job requiring them to manipulate COVID-19 data. To quantify the trade-off between ethical and financial considerations in job acceptance, we introduced a lower-pay condition offering half the wage of the control job; 51 % of workers accepted this job, suggesting that the ethical compromise in the disinformation task reduced the acceptance rate by about the same amount as a 25 % wage reduction. A survey experiment with a nationally representative sample shows that viewing a disinformation graph from the field experiment negatively affected people's beliefs and behavioral intentions related to the COVID-19 pandemic, including increased vaccine hesitancy. Using a “wisdom-of-crowds” approach, we highlight how online labor markets can introduce features, such as increased worker accountability, to reduce the likelihood of workers engaging in the production of disinformation. Our findings emphasize the importance of addressing the supply side of disinformation in online labor markets to mitigate its harmful societal effects.</div></div>","PeriodicalId":48389,"journal":{"name":"European Economic Review","volume":"172 ","pages":"Article 104936"},"PeriodicalIF":2.8,"publicationDate":"2025-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143100345","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Lara Bohnet , Susana Peralta , João Pereira dos Santos
{"title":"Cousins from overseas: How the existing workforce adapts to a massive forced return migration shock","authors":"Lara Bohnet , Susana Peralta , João Pereira dos Santos","doi":"10.1016/j.euroecorev.2024.104925","DOIUrl":"10.1016/j.euroecorev.2024.104925","url":null,"abstract":"<div><div>The 1975 eruption of Civil Wars in Portuguese-speaking Africa sparked the return of half a million <em>retornados</em> to Portugal. We use census data from 1960 and 1981 to study the impacts of this massive influx of workers on the existing workforce. We observe gendered effects in natives’ labour market outcomes: male and female natives leave dependent employment. We find robust evidence of females moving to inactivity, and suggestive evidence that males move into self-employment. The effects are driven by the repatriates who are Portuguese-born. The identification strategy exploits the repatriates’ municipality of birth and a large-scale resettlement program relying on hotel capacity.</div></div>","PeriodicalId":48389,"journal":{"name":"European Economic Review","volume":"172 ","pages":"Article 104925"},"PeriodicalIF":2.8,"publicationDate":"2025-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143157003","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Carbon taxation in a global production network","authors":"Jordi Planelles , María-Eugenia Sanin","doi":"10.1016/j.euroecorev.2024.104938","DOIUrl":"10.1016/j.euroecorev.2024.104938","url":null,"abstract":"<div><div>Herein we study carbon taxation considering the structure of the global production network. With this purpose we characterize how the implementation of a carbon tax in one country-sector can generate sizeable fluctuations on global emissions and welfare through its impact on the structure of production. We then apply this theoretical characterization to accommodate the structure of a multi-regional input–output database. This framework allows us to identify the country-sectors that should be taxed to reach the strongest potential for emission reduction (or welfare maximization) if no coordinated policy is possible. Interestingly, this choice not only depends on emission intensity but also on to which extent the sector is central in the global production network as well as on the pass-through effect on public or private spending. Additionally, we find that synergies between taxes applied to different country-sectors have a strong impact in emission reductions, calling for greater harmonization in carbon taxation around the world. We then use our model to simulate the impact of the European Carbon Border Adjustment Mechanism (CBAM) finding that, when looked into sector by sector, it reduces EU competitiveness loss due to carbon pricing but, when generalized to all EU sectors, the impact through the value chain ends up provoking a stronger contraction in the EU than without the CBAM.</div></div>","PeriodicalId":48389,"journal":{"name":"European Economic Review","volume":"172 ","pages":"Article 104938"},"PeriodicalIF":2.8,"publicationDate":"2025-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143100383","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Decentralization in Autocraties","authors":"Emmanuelle Auriol , Anaïs Dahmani-Scuitti","doi":"10.1016/j.euroecorev.2024.104930","DOIUrl":"10.1016/j.euroecorev.2024.104930","url":null,"abstract":"<div><div>In a model featuring two regions—one affluent and the other impoverished—the allocation of public spending is examined under an initially centralized and autocratic political process. In a stable autocracy, the decision to implement decentralization reforms hinges on a tradeoff: while centralization enables the autocrat to extract higher rents, it also results in reduced productivity in the poor region. The autocrat opts for decentralization when the negative impact on productivity outweighs the benefits of rent extraction. Moreover, under the pressure of democratic movements and growing instability, an authoritarian regime may also pursue decentralization reforms to preserve its wealth from the decisions of the poor median voter.</div></div>","PeriodicalId":48389,"journal":{"name":"European Economic Review","volume":"172 ","pages":"Article 104930"},"PeriodicalIF":2.8,"publicationDate":"2025-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143100338","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Internetization, supplier search, and diversification of global supply chains","authors":"Guobing Shen , Binchao Shen , Ruochen Wu","doi":"10.1016/j.euroecorev.2025.104951","DOIUrl":"10.1016/j.euroecorev.2025.104951","url":null,"abstract":"<div><div>Diversifying global supply chains (GSCs) is a vital approach to improving economic resilience. When firms diversify their foreign suppliers, information frictions are a major challenge. Internetization may mitigate this challenge through more efficient information communication. We estimate a dynamic discrete choice model of the search for new suppliers under information frictions, allowing the level of internetization to influence search costs as well as productivity. Using data from Chinese manufacturing firms, internetization is found to relieve information frictions, reducing search costs by RMB 0.3 – 0.5 million. Additionally, internetization raises firms’ productivity by 0.8%. The quantitative analysis indicates that internetization and search decisions of firms are mutually reinforcing. By facilitating the search for foreign suppliers, internetization promotes the diversification of GSCs and strengthens the resilience of firms. Notably, the primary channel through which internetization exerts its impact is by reducing search costs, whereas the productivity channel plays a relatively minor role.</div></div>","PeriodicalId":48389,"journal":{"name":"European Economic Review","volume":"172 ","pages":"Article 104951"},"PeriodicalIF":2.8,"publicationDate":"2025-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143100382","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Access to justice and economic development: Evidence from an international panel dataset","authors":"Arnaud Deseau , Adam Levai , Michèle Schmiegelow","doi":"10.1016/j.euroecorev.2024.104947","DOIUrl":"10.1016/j.euroecorev.2024.104947","url":null,"abstract":"<div><div>This paper evaluates the importance of access to justice (ATJ) for economic growth. To do so, we create a new database on the number of judges per capita by collecting data from various public institutions and academic publications. We use these data as a country-level indicator to capture the structural evolution of ATJ from 1970 to 2019 for a wide range of developed and developing countries. Using an instrumental variable approach in a dynamic panel setting to deal with endogeneity, we show that ATJ has a sizable positive effect on economic growth. The substantial aggregate effect of ATJ on growth is independent of countries’ legal origin, customary law, rule of law or level of democracy. However, we find evidence that the economic returns from ATJ are higher in poorer countries. In terms of mechanisms, our results suggest that ATJ promotes growth via higher government accountability and improved institutional quality.</div></div>","PeriodicalId":48389,"journal":{"name":"European Economic Review","volume":"172 ","pages":"Article 104947"},"PeriodicalIF":2.8,"publicationDate":"2025-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143100339","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Global public goods, fiscal policy coordination, and welfare in the world economy","authors":"Pierre-Richard Agénor , Luiz A. Pereira da Silva","doi":"10.1016/j.euroecorev.2024.104914","DOIUrl":"10.1016/j.euroecorev.2024.104914","url":null,"abstract":"<div><div>A two-region endogenous growth model of the world economy with local and global public goods is used to study strategic interactions between national policymakers. Distortionary taxes are used to finance infrastructure investment at home and generate resources for vaccine production by a global fund. While the global public good is nonexcludable, it is partially rival. Optimal tax rates under cooperation and noncooperation are solved for analytically, under both financial autarky and openness, and numerical experiments are performed to evaluate the welfare gain from cooperation. Whether optimal levies are higher or lower under cooperation, and the magnitude of welfare gains, depend on the degree of integration of capital markets, the existence of a direct trade-off between expenditure components, and the nature of the tax base. When the health levy takes the form of a capital or wealth tax, cooperation is welfare-improving under both autarky and financial openness, but enforcement and collection costs may narrow the scope of taxation under all policy regimes.</div></div>","PeriodicalId":48389,"journal":{"name":"European Economic Review","volume":"172 ","pages":"Article 104914"},"PeriodicalIF":2.8,"publicationDate":"2025-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143100340","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Automation and the fall and rise of the servant economy","authors":"Astrid Krenz , Holger Strulik","doi":"10.1016/j.euroecorev.2024.104926","DOIUrl":"10.1016/j.euroecorev.2024.104926","url":null,"abstract":"<div><div>We develop a macroeconomic theory of the division of household tasks between servants and own work and how it is affected by automation in households and firms. We calibrate the model for the U.S. and apply it to explain the historical development of household time use and the distribution of household tasks from 1900 to 2020. The economy is populated by high-skilled and low-skilled households and household tasks are performed by own work, machines, or servants. For the period 1900–1960, innovations in household automation motivate the decline of the servant economy and the creation of new household tasks motivates an almost constant division of household time between wage work and domestic work. For the period 1960–2020, innovations in firm automation and the implied increase of the skill premium explain the return of the servant economy. We use counterfactual historical experiments to assess the role of automation, the creation of new household tasks, and the gig economy for the division of household time and tasks. We provide supporting evidence for the relation between automation and inequality, and for inequality as a driver of the return of the servant economy in a regional panel of U.S. metropolitan statistical areas for the period 2005–2020.</div></div>","PeriodicalId":48389,"journal":{"name":"European Economic Review","volume":"172 ","pages":"Article 104926"},"PeriodicalIF":2.8,"publicationDate":"2025-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143100344","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Persistent slumps: Innovation and the credit channel of monetary policy","authors":"Elton Beqiraj , Qingqing Cao , Raoul Minetti , Giulio Tarquini","doi":"10.1016/j.euroecorev.2024.104946","DOIUrl":"10.1016/j.euroecorev.2024.104946","url":null,"abstract":"<div><div>Monetary policy is increasingly found to exert long-run effects on the aggregate economy. We investigate the long-term effects of monetary policy through the credit channel. We develop a dynamic general equilibrium model with financial intermediaries and endogenous innovation in which credit frictions constrain firms’ investment and R&D expenses. Following an adverse monetary shock, the tightening of credit conditions for the innovation sector generates sizeable long-term effects, turning the shock into a persistent stagnation. We quantify the contribution of this transmission channel to productivity and output hysteresis. We then characterize the monetary policy trade-offs between short- and long-term targets, showing that the control of inflation can entail a growth slowdown. The results are consistent with Bayesian VAR estimates of the responses of credit and innovation aggregates to monetary shocks.</div></div>","PeriodicalId":48389,"journal":{"name":"European Economic Review","volume":"172 ","pages":"Article 104946"},"PeriodicalIF":2.8,"publicationDate":"2025-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143100346","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}