EconStor Collection:
http://hdl.handle.net/10419/12
2024-03-19T07:47:19ZThe effects of the Iberian exception mechanism on wholesale electricity prices and consumer inflation: A synthetic-controls approach
http://hdl.handle.net/10419/283618
Title: The effects of the Iberian exception mechanism on wholesale electricity prices and consumer inflation: A synthetic-controls approach
Authors: Ruiz, Miguel Haro; Schult, Christoph; Wunder, Christoph
Abstract: This study employs synthetic control methods to estimate the effect of the Iberian exception mechanism on wholesale electricity prices and consumer inflation, for both Spain and Portugal. We find that the intervention led to an average reduction of approximately 40% in the spot price of electricity between July 2022 and June 2023 in both Spain and Portugal. Regarding overall inflation, we observe notable differences between the two countries. In Spain, the intervention has an immediate effect, and results in an average decrease of 3.5 percentage points over the twelve months under consideration. In Portugal, however, the impact is small and generally close to zero. Different electricity market structures in each country are a plausible explanation.2024-01-01T00:00:00ZIs risk the fuel of the business cycle? Financial frictions and oil market disturbances
http://hdl.handle.net/10419/283617
Title: Is risk the fuel of the business cycle? Financial frictions and oil market disturbances
Authors: Schult, Christoph
Abstract: I estimate a dynamic stochastic general equilibrium (DSGE) model for the United States that incorporates oil market shocks and risk shocks working through credit market frictions. The findings of this analysis indicate that risk shocks play a crucial role during the Great Recession and the Dot-Com bubble but not during other economic downturns. Credit market frictions do not amplify persistent oil market shocks. This result holds as long as entry and exit rates of entrepreneurs are independent of the business cycle.2024-01-01T00:00:00ZIncome shocks, political support and voting behaviour
http://hdl.handle.net/10419/281194
Title: Income shocks, political support and voting behaviour
Authors: Upward, Richard; Wright, Peter
Abstract: We provide new evidence on the effects of economic shocks on political support, voting behaviour and political opinions over the last 25 years. We exploit a sudden, large and long-lasting shock in the form of job loss and trace out its impact on individual political outcomes for up to 10 years after the event. The availability of detailed information on households before and after the job loss event allows us to reweight a comparison group to closely mimic the job losers in terms of their observable characteristics, pre-existing political support and voting behaviour. We find consistent, long-lasting but quantitatively small effects on support and votes for the incumbent party, and short-lived effects on political engagement. We find limited impact on the support for fringe or populist parties. In the context of Brexit, opposition to the EU was much higher amongst those who lost their jobs, but this was largely due to pre-existing differences which were not exacerbated by the job loss event itself.2024-01-01T00:00:00ZDoes information about inequality and discrimination in early child care affect policy preferences?
http://hdl.handle.net/10419/281780
Title: Does information about inequality and discrimination in early child care affect policy preferences?
Authors: Hermes, Henning; Lergetporer, Philipp; Mierisch, Fabian; Schwerdt, Guido; Wiederhold, Simon
Abstract: We investigate public preferences for equity-enhancing policies in access to early child care, using a survey experiment with a representative sample of the German population (n ≈ 4, 800). We observe strong misperceptions about migrant-native inequalities in early child care that vary by respondents' age and right-wing voting preferences. Randomly providing information about the actual extent of inequalities has a nuanced impact on the support for equity-enhancing policy reforms: it increases support for respondents who initially underestimated these inequalities, and tends to decrease support for those who initially overestimated them. This asymmetric effect leads to a more consensual policy view, substantially decreasing the polarization in policy support between under- and overestimators. Our results suggest that correcting misperceptions can align public policy preferences, potentially leading to less polarized debates about how to address inequalities and discrimination.2024-01-01T00:00:00Z