This study investigates the relationship between corporate social responsibility (CSR) and bank stability in Vietnam from 2016 to 2022 using the method of moments quantile regression (MMQR). The results show a U-shaped relationship between CSR and bank stability at location-based and across quantiles; however, mixed findings are obtained for different CSR components at different quantiles. Specifically, responsibilities to customers and the environment first mitigate but later improve bank stability. However, the findings indicate an inverted U-shaped relationship between product and service responsibility and bank stability, implying that aggressive pursuits of sustainable products may increase bank instability. Our findings still hold under several robustness checks.
The main objective of this study is to analyze the asymmetric effects of highly volatile inflation on income inequality in Türkiye between 1990 and 2023. Despite its high growth potential, Türkiye has a fragile economic structure and experienced a period of highly volatile inflation during the specified period. Such volatility may lead to imbalances in income distribution. Empirical studies specifically focusing on the asymmetric effects of inflation on income inequality in Türkiye remain limited. This study seeks to address this gap in the literature. Threshold regression and threshold Structural Vector Autoregression (SVAR) models are employed as suitable methodologies to investigate the relationship between inflation and income inequality. The Bai-Perron (1998) method is employed to determine threshold values, enabling inflation rates to be classified as either low or high, based on the period within the study's scope. The findings reveal a U-shaped relationship between inflation and income inequality, indicating that while low inflation reduces inequality, high and unstable inflation increases it. The study also examines the effects of human capital and economic growth by utilising various additional variables. It provides general implications and recommendations based on the findings.
This paper offers a historically grounded reinterpretation of Keynesianism within the context of U.S. economic development and global capitalist transformation. It traces the evolution of Keynes’s core insights into a form of structural Keynesianism, shaped by institutionalism, post-Keynesian and new Keynesian economics, and broader heterodox traditions, while engaging critically with monetarism, rational expectations, supply-side economics, and computational macroeconomics. This evolution unfolded through successive global-scale crises amid accelerating technological change and the rising concentration of economic power. The paper argues that these dynamics facilitated rent-seeking, regulatory capture, and elite entrenchment, undermining democratic governance and exacerbating inequalities in income, wealth, and labor power. By synthesizing institutional, geopolitical, and macroeconomic analyses, the paper advances structural Keynesianism as an essential framework for understanding advanced economies increasingly characterized by financialization, market concentration, globalization, and shifting geopolitical constraints, and for rethinking economic governance beyond demand management toward institutional reform and democratic accountability.
This study investigates how economic and socio-economic structures are associated with greenhouse gas emissions in Canada between 1990 and 2024. Moving beyond a narrow growth–energy perspective, it brings together economic growth, population density, energy consumption, renewable energy, financial development, income inequality, and trade openness within a unified time-series framework. The analysis employs a VECM to examine long-run equilibrium and short-run adjustment, while FMOLS provides robustness evidence for the long-run estimates. The findings show that emissions are positively associated with growth, population density, energy consumption, income inequality, and trade openness, but negatively associated with renewable energy and financial development. Short-run dynamics largely reinforce these long-run patterns, and the error-correction mechanism indicates gradual adjustment toward equilibrium. The results suggest that Canada’s emissions reflect not only energy intensity and scale, but also demographic, distributional, financial, and external-integration channels. Policy responses should combine energy transition with cleaner production, financial allocation, and socio-economic considerations.
We examine tail dependence between consumer sentiment and spending during crises, focusing on COVID-19 and the Global Financial Crisis. Using copula models on U.S. monthly data from 2003–2024, we quantify extreme co-movements and find asymmetric tail dependence that intensifies during crises: upper-tail dependence rises to 0.35 post-pandemic, 3.5 times its pre-pandemic level, while the financial crisis shows stronger lower-tail dependence. A Bayesian VAR framework highlights the role of macroeconomic factors. The economic significance is noteworthy: extreme optimism corresponds to a 2.8 percentage-point increase in spending growth, and fiscal multipliers are amplified by 40–60% during sentiment rebounds. These results underscore the value of tail dependence analysis for stabilization policy and crisis-specific risk management.
This paper examines the effect of foreign direct investment (FDI) on innovation using country-level data for Europe regions. It also investigates the moderating role of institutional quality in this relationship. The results show that FDI has a negative effect on innovation in the host country. They also reveal that institutional quality plays a moderating role in this relationship. They point out that institutional items do not equally matter in the relationship between FDI and local innovation for Western Europe as for Eastern and Central Europe. These findings highlight the channels through which institutions can boost innovation from FDI.
This paper develops a transparent, simplified version of Carnehl and Schneider (2025)’s model of knowledge creation. Our tractable framework, which yields closed-form solutions for key welfare trade-offs, preserves the essential economic mechanisms while eliminating mathematical complexity. We derive four main insights. First, contrary to the original model's emphasis on ``moonshots," our analysis explicitly demonstrates that expanding knowledge and then deepening it (the moonshot approach) is never socially optimal under direct welfare comparisons. The original model's case for moonshots relies on second-best arguments involving research costs and dynamic externalities, not on direct welfare considerations. Second, we identify a novel misalignment between private and social incentives in multidisciplinary research contexts. Even without research costs — where the original model predicts perfect alignment — researchers bridging large knowledge gaps between disciplines choose locations that create suboptimal knowledge structures. Third, we analyse how citation-based incentive systems affect knowledge creation trajectories. We show that systems that privilege unique contributions over shared ones align private behaviour with social welfare objectives, while those that reward shared contributions lead to excessive knowledge deepening. Fourth, our analysis provides precise characterisations of optimal knowledge creation paths under various initial conditions and offers clear guidance for science policy. By clarifying when interventions can address misalignments between researchers' incentives and social welfare, our simplified model offers practical insights for the design of research funding mechanisms.
This research investigates the relationship between ethnic diversity in the boardroom and the ESG performance of US banks during the 2016-2021 period. To this aim, we implement the 2-step system GMM estimation technique, which addresses endogeneity issues that have posed challenges in many studies. Our findings indicate that boardroom ethnic diversity negatively influences ESG performance. Moreover, in a nonlinear analysis, we provide evidence of a U-shaped relationship between boardroom ethnic diversity and the ESG performance of banks. These results remain robust when, instead of ESG performance, we examine the social and corporate governance performance of banks. We also demonstrate that the impact of boardroom ethnic heterogeneity on ESG performance varies with bank size. Furthermore, we reveal that during the pandemic, the previously negative impact of ethnically diverse directors on ESG performance shifts and ultimately becomes positive. Consequently, our conclusions serve as an important source of information to lawmakers and regulators and enrich the corporate governance research concerning the nexus between board characteristics and ESG performance.
This study analyzes the impacts of the European Union Emissions Trading System and free allowances on sectoral value added, gross output, and greenhouse gas emissions in the European Union for the period 1995-2020. Since the European Union Emissions Trading System inherently covers firm-level emissions, most studies in this area have been conducted at the firm level. However, a sectoral analysis allows understanding how sectors as a whole respond to the carbon pricing mechanism in terms of carbon reductions, competitiveness and sectoral output growth. It can also reveal how changes differ across sectors subject to different regulations. Controlling for sectoral employment, intermediate input use, and time effects, the results show that European Union Emissions Trading System coverage has a negative impact on both value added and gross output, but does not lead to a significant reduction in greenhouse gas emissions. The findings indicate that more labor-intensive and less input-intensive production can reduce emissions. Furthermore, the study draws attention to the competitive losses caused by compliance costs in sectors within the scope of the European Union Emissions Trading System and shows that the impact of free allowances on performance is insufficient. These results highlight the importance of coherent and inclusive approaches in policy design to more effectively manage the economic and environmental impacts of the European Union Emissions Trading System. It is recommended to develop more targeted and flexible strategies, taking into account sectoral differences.
The global emphasis on women's economic participation has grown significantly due to its vital role in promoting macroeconomic stability and advancing financial inclusion. Involving women in economic activities is essential for achieving Sustainable Development Goals, such as poverty alleviation and closing gender gaps. However, a range of regulatory, cultural, and structural barriers continue to hinder women's ability to participate in the mainstream economy. This study aims to examine the impact of restrictive laws and regulations on women's economic participation within the BRICS bloc. Women's economic participation has been examined through three key dimensions: paid employment, political representation, and entrepreneurship. The findings suggest that the removal of restrictive laws and regulations is associated with increased levels of women's economic participation. It is important to acknowledge that while BRICS countries have made significant strides in dismantling legal barriers affecting women, substantial obstacles remain from both legal and regulatory perspectives that hinder women's engagement in economic activities. Therefore, the study recommends that BRICS nations prioritize the complete removal of restrictive laws and regulations impacting various aspects of women's lives, including mobility, pay, marriage, and entrepreneurship.. Furthermore, ensuring a gender-equitable distribution of resources should be a central focus in policymaking to ensure that no one is left behind in the development agenda, particularly women and children.
Traditional auction theory typically assumes that bidders will fully honor their commitments upon winning. However, this assumption often proves inadequate in high-stakes auctions, such as those for infrastructure projects or luxury assets, where securing the necessary funds post-auction can pose challenges. Factors such as market volatility, liquidity constraints, or delays in financing frequently result in bidder defaults, leading to substantial disruptions for sellers, including the costs of re-auctioning and project delays. This paper seeks to bridge this gap in auction theory by exploring how comprehensive information about bidders' default risks can be utilized through a straightforward post-bidding mechanism. Furthermore, it highlights the advantages this approach offers to the auctioneer compared to scenarios where such critical information is unavailable.
This paper investigates recent trends of production factor – including both capital and labour – ratios in the EU-27 based on national accounts data. These output elasticities are typically expected to be constant, however, both theoretically and empirically, these assumptions are frequently violated for a variety of reasons. In this paper a lagged response is introduced and investigated: changes of profitability can affect labour force adjustments with a delay. Granger causality tests confirm lagged behaviour. Structural VAR estimations show the strongest impact over the span of two to five quarters and the effect is moderate.
We analyze the effects of international trade on structural change. We show a positive correlation between openness and the share of the agricultural sector for developing economies and present a model to rationalize this stylized fact. We built a two-sector model to compare the autarky and open economy equilibrium. The results indicate that, for developing economies, international trade may delay structural change. If the comparative advantage is in agricultural goods, trade leads to greater specialization in this kind of goods and lower participation of other goods.
This study considers the nonlinear relationship between GDP growth and unemployment in France (1975–2024) using a logistic smooth transition regression (LSTR) model. Findings reveal a threshold unemployment rate of 7.93%, above which the traditional Okun’s law holds (GDP growth reduces unemployment). Below this threshold, an inverted Okun’s law emerges, where economic growth coincides with rising unemployment. This is explained by technological advancements, skill mismatches, and delayed employment adjustments. The results indicate that macroeconomic policies based on linear assumptions are limited in their capacity to address unemployment challenges effectively. Recognizing these nonlinear dynamics is crucial for designing effective labor market policies that account for asymmetries in economic fluctuations.
This study models a representative agent with generalized disappointment aversion preferences in an endowment economy. This model addresses the average upward slope in U.S. real bond yields, equity premium puzzle, and equity volatility puzzle. We integrate a two-state Markov switching process for economic cycles coupled with an independent rare disaster risk. During economic expansions, disaster risk increases the probability of disappointment, thereby reinforcing precautionary saving and reducing the risk-free rate. During recessions, diminished concern about disappointment encourages borrowing and increases the risk-free rate. This pattern engenders countercyclical fluctuations in risk-free rates and accounts for the upward-sloping average yield curve.
This paper analyzes the effects of the COVID-19 recession on the rate of return to schooling for twenty industries in Pennsylvania. Using data from the American Community Survey 2011-2021, we find the rate of return to schooling declined by 0.3 percentage points during COVID years from its pre-COVID level, and COVID effects on the rate of return differed among industries in Pennsylvania. COVID increased the returns to schooling for three industries, decreased the returns to schooling for six industries, and had no effect on the returns to schooling for the remaining eleven industries. The changes in the rate of return to schooling reflect shifts in the wage premium between high-and low-wage workers.
The recent salience of immigration as an issue among segments of the population in wealthy countries has often been understood as a product of tension between economic interests and cultural preferences. However, such explanations largely ignore differences in power between immigrant and native communities and the cohesion of local community institutions. This article develops a bargaining model that highlights how power asymmetries between workers and employers interact with community cohesion to result in immigration aversion. Community cohesion among both migrant and native workers is modeled through their fallback positions. We show that the salience of immigration depends on the bargaining power of native and migrant workers. Further, we demonstrate that if the bargaining power of both native and migrant workers are low enough, then immigration aversion can exist even if immigration does not reduce labor demand for native workers.
Electricity consumption is often regarded as a precondition for economic growth and any bottleneck in its production can severely hurt the growth prospects of an economy more specifically a developing one. Representing a strong case of its value, the causal relationship between energy consumption and economic growth is addressed by extending the Granger causality framework in a heterogeneous panel setup. Exclusively four different causal behaviours are examined: Homogeneous Non-Causality (HNC), Homogeneous Causality (HC), Heterogeneous Non-Causality (HENC), and Heterogeneous Causality (HEC). Both HNC and HC hypotheses are rejected in the causality direction from Economic growth to energy consumption thereby suggesting that the panel of Indian states is not homogeneous. Following this heterogeneous causality tests (HENC and HEC) are conducted for each Indian state to check the hypothesis of causality from economic growth to energy. For 8 out of 17 Indian states strong unidirectional causality is found while for 6 other states, there is no evidence of any causality in the stated direction. The remaining 3 states show weak evidence of causality. Thus, the results are suggestive of the fact that the central government cannot dictate policies at the state level rather state needs to frame regional policies in line with the situation that suits.
This study investigates the effect of the annual 'No-Smoking Day' on the stock performance of British American Tobacco (BATS) and Imperial Brands (IMB) from 1997 to 2023. Our findings reveal a significant negative impact of No-Smoking Wednesdays on BATS, with a moderate but statistically significant effect on IMB. To enhance robustness, we also perform a panel data analysis, which underscores the consistent negative effect of No-Smoking Day on the tobacco sector as a whole. These results suggest that No-Smoking Day generates a calendar-based effect on stock prices, challenging the Efficient Market Hypothesis. Beyond the behavioral effects tied to the anti-smoking campaign, this study introduces a novel perspective by linking investor behavior with neurological factors, particularly Nicotine Withdrawal Syndrome (NWS). NWS, characterized by irritability, anxiety, and mood disturbances, may influence investor sentiment, even among smokers who do not intend to quit. These withdrawal symptoms could induce stress and emotional responses, thereby affecting investor behavior and contributing to negative returns. Our findings align with prior behavioral studies and highlight the role of both psychological and neurobiological factors in shaping market dynamics. Future research should examine the combined effects of anti-smoking campaigns and NWS on investor behavior and market outcomes. Additionally, the varying statistical significance across firms suggests that the diversification of tobacco companies into non-traditional products warrants further investigation.
We propose a fundamental valuation model for sports clubs and stadia using discounted (adjusted) revenues. We argue that a sports club is a "quasi firm" that aims to balance budgets, achieve an efficient allocation of financial resources, and maximize revenues. Under this objective the sports club's welfare and value are maximized. Then we offer a method for estimating the value of a sports club's stadium. The proposed valuation model can be useful during acquisition negotiations or for assessing managerial performance. Combining the proposed model with stochastic Monte Carlo simulations, we estimate the brand-name value and the club's total value of the football team of Panathinaikos, as well as the value of its iconic home ground, Apostolos Nikolaidis Stadium (known as Leoforos) located in the heart of Athens at Alexandra's Avenue
