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A long-run perspective on Latvian regional gross domestic product inequality, 1925–2016 Baltic Journal of Economics (IF 1.435) Pub Date : 2024-03-15 Ola Honningdal Grytten, Zenonas Norkus, Jurgita Markevičiūtė, Jānis Šiliņš
This paper for the first time calculates the historical regional GDP (rGDP) for an Eastern European country by using the methodology of Frank Geary and Tom Stark [2002. Examining Ireland's post-fam...
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The communication reaction function of the European Central Bank. An analysis using topic modelling Baltic Journal of Economics (IF 1.435) Pub Date : 2024-02-28 Luca Alfieri, Diana Gabrielyan
Central bank communication plays a crucial role in the conduct of monetary policy, yet the research on central bank communication, while growing, is still scarce. In this paper, we analyze the comm...
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Relative factor endowments, foreign direct investment and tax planning of multinational firms: an empirical investigation into cross-country data Baltic Journal of Economics (IF 1.435) Pub Date : 2024-01-01 Andrzej Cieślik, Oleg Gurshev
This paper studies the impact of relative endowments of skilled labour and physical capital on the location choices of multinational firms (MNEs). We demonstrate potential methodological issues and...
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The European skill space: a cross-country analysis of path-dependent capability development Baltic Journal of Economics (IF 1.435) Pub Date : 2023-12-12 Sonja Walter, Wonsub Eum, Jeong-Dong Lee
This study investigates the skill structures of European countries and their transformations from the perspective of capability development. The constructed skill space illustrates the skill sets o...
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Is there a labour market mismatch in Estonia? Measuring regional, occupational and industrial labour market mismatch Baltic Journal of Economics (IF 1.435) Pub Date : 2023-11-02 Simona Ferraro, Pauline Kommer
Despite the fast growth in the Estonian economy, unemployment has remained high for extended periods of time. This paper analyses and quantifies the mismatch between registered unemployment and vac...
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What drove the rise in bank lending rates in Lithuania during the low-rate era? Baltic Journal of Economics (IF 1.435) Pub Date : 2023-10-04 Jaunius Karmelavičius, Ieva Mikaliūnaitė-Jouvanceau, Andrius Buteikis
While Euro area interest rates were responding to accommodative monetary policy and decreasing throughout 2015-2019, in stark contrast, Lithuania's bank lending rates increased. Although the rates ...
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Territorial revisions to increase cohesion policy funding from the EU: the case of the new member states Baltic Journal of Economics (IF 1.435) Pub Date : 2023-09-15 Pavel Zdražil, Ivana Kraftová
ABSTRACT This paper argues that some EU member states have been smart, or even dishonest. Splitting off capital cities from existing NUTS2 regions has given them an advantage in the Cohesion Policy funds allocation scheme but worsened the position of others. To explain the reasons and implications, we review the issue of delimiting the NUTS2 regions and the related allocation of financial resources
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Wage growth in Lithuania from 2008 to 2020: observed drivers and underlying shocks* Baltic Journal of Economics (IF 1.435) Pub Date : 2023-09-07 Jose Garcia-Louzao, Valentin Jouvanceau
ABSTRACT This paper studies the drivers of wage growth in Lithuania over the period 2008–2020. Using administrative data as well as aggregate measures reflecting the state of the economy, we estimate an extended version of a wage Phillips curve. Our reduced-form estimates indicate that nominal wage growth was tightly linked to labor market fluctuation over this period. Labor productivity, changes in
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Do regional integration and trade linkages promote productivity spillovers? Evidence from the European Union Baltic Journal of Economics (IF 1.435) Pub Date : 2023-04-11 Hazwan Haini, Pang Wei Loon
ABSTRACT This study examines the productivity and efficiency spillovers in the presence of trade linkages in 27 European Union countries from 1990 to 2019. The European Union is one of the largest trading blocs in the world and has implemented costly policies and reforms to improve productivity growth. Meanwhile, trade-induced productivity and efficiency spillovers have often been overlooked in the
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The short run effects of childbirth on parents’ earnings in the Baltics Baltic Journal of Economics (IF 1.435) Pub Date : 2023-03-27 Nerijus Černiauskas
ABSTRACT Having a child can have a heavy toll on parents' earnings, especially in the first years after childbirth, with mothers often being more affected than fathers. This is particularly true in the three Baltic states, with relatively generous parental leave benefits compared to the EU and norms encouraging mothers to care for children. I carry out an event study to estimate the effect of having
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Fiscal DSGE model for Latvia Baltic Journal of Economics (IF 1.435) Pub Date : 2023-02-18 Ginters Bušs, Patrick Grüning
ABSTRACT We develop a fiscal dynamic stochastic general equilibrium (DSGE) model for policy simulation and scenario analysis purposes tailored to Latvia, a small open economy in a monetary union. The fiscal sector elements comprise public investment, public consumption, government transfers that are asymmetrically directed to both optimizing and restricted (hand-to-mouth) households, cyclical unemployment
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The effect of COVID-19 and the wage compensation measure on income-related gender disparities Baltic Journal of Economics (IF 1.435) Pub Date : 2022-11-24 Merilen Laurimäe, Tiiu Paas, Alari Paulus
ABSTRACT Many countries implemented wage compensation measures during the COVID-19 crisis to alleviate income losses and avoid employment reductions. We focus on the gender dimension of incomes in Estonia, which has been grappling with the highest gender wage gap in Europe, and investigate whether the crisis and related wage compensation may have worsened existing gender imbalances. Using detailed
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Can the economic growth of interwar Latvia be estimated by contemporary national accounts? Baltic Journal of Economics (IF 1.435) Pub Date : 2022-08-23 Ola Grytten, Zenonas Norkus, Jurgita Markevičiūtė, Jānis Šiliņš
ABSTRACT The paper provides an examination of interwar Latvia’s national accounts, checking their usability for estimating interwar economic growth performance. According to the authoritative account of Roses and Wolf [(2010). Aggregate growth, 1913–1950. In S. Broadberry, & K. H. O’Rourke (Eds.), The Cambridge economic history of modern Europe, vol 2. 1870 to the present (pp. 183–207). Cambridge UP
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The effectiveness of tax incentives to encourage private savings Baltic Journal of Economics (IF 1.435) Pub Date : 2022-08-23 Ludmila Fadejeva, Olegs Tkacevs
ABSTRACT This study examines the impact of tax incentives for long-term savings on total private savings using data for Latvia contained in HFCS 2014 and 2017. The survey shows that contributions to tax-favoured savings plans are not associated with lower consumer spending and therefore do not contribute to an increase in private savings. Instead, these savings are achieved by lowering other, non-tax-favoured
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The role of risk attitudes and expectations in household borrowing: evidence from Estonia Baltic Journal of Economics (IF 1.435) Pub Date : 2022-08-23 Eva Branten
ABSTRACT This study investigates the role of risk attitudes and financial expectations in households’ borrowing behaviour. The central research question is whether risk aversion and optimistic expectations provide additional information beyond the main economic and sociodemographic characteristics in predicting applications for credit and the size of debt. The paper uses microdata from the Estonian
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Has the relationship between the real exchange rate and its fundamentals changed over time? Baltic Journal of Economics (IF 1.435) Pub Date : 2022-07-11 Juan Carlos Cuestas, Mercedes Monfort, Bojan Shimbov
ABSTRACT In this paper we contribute to the literature on determining the real exchange rate by using models that incorporate structural breaks and nonlinearities. We estimate cointegrated dynamic ordinary least squares regressions and quantile regressions. We find that the estimated coefficients for the EU members from central and eastern Europe are different to those for the other member states.
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The ins and outs of Central European unemployment Baltic Journal of Economics (IF 1.435) Pub Date : 2022-06-08 Vladislav Flek, Martin Hála, Martina Mysíková
ABSTRACT We examine the role of unemployment inflows and outflows in contributing to unemployment cyclicality in Czechia and Poland, using data from the European Union Statistics on Income and Living Conditions, and a three-state model of unemployment variance decomposition. We find that the labour market fluidity is higher in Poland than in Czechia, with Polish workers moving in and out of unemployment
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Gender disparities in wage returns to human capital components: how different are European labour markets? Baltic Journal of Economics (IF 1.435) Pub Date : 2022-02-04 Maryna Tverdostup, Tiiu Paas
ABSTRACT The paper investigates the gender wage gap in relation to the multi-dimensional human capital measure, asking which human capital components are most valued in the European labour markets. Relying on the Programme of International Assessment of Adult Competencies (PIAAC) data for seventeen European countries and applying Gelbach (2016) decomposition, we document remarkable cross-country disparities
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Fiscal adjustments: lessons from and for the Baltic states Baltic Journal of Economics (IF 1.435) Pub Date : 2022-01-10 Violeta Klyvienė, Audronė Jakaitienė
ABSTRACT This paper aims to investigate the effects of various fiscal policy measures for small and open economies by analysing the implications of fiscal shocks in the Baltic countries based on data for the period from 1995 to 2018. For this purpose, we have chosen structural VAR estimation methods following Blanchard, O., & Perotti, R. (2002). An Empirical Characterization of the Dynamic Effects
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Short-term inflation projections model and its assessment in Latvia Baltic Journal of Economics (IF 1.435) Pub Date : 2021-12-02 Andrejs Bessonovs, Olegs Krasnopjorovs
ABSTRACT This paper builds a short-term inflation projections (STIP) model for Latvia. The model is designed to forecast highly disaggregated consumer prices using cointegrated ARDL approach of [Pesaran, M., & Shin, Y. (1998). An Autoregressive Distributed Lag Modelling Approach to Cointegration Analysis. Econometric Society Monographs, 31, 371–413.]. We assess the forecast accuracy of STIP model using
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Are we there yet? Intergenerational mobility and economic assimilation of second-generation immigrants in Estonia Baltic Journal of Economics (IF 1.435) Pub Date : 2021-10-27 Laura Helena Kivi, Janno Järve, Sten Anspal, Marko Sõmer, Indrek Seppo
ABSTRACT This study investigates the role of intergenerational mobility in explaining the native-immigrant income gap in Estonia. A rich registry dataset on yearly earnings and different background characteristics for the period of 2007–2017 is used. We find that an increase of 1 percentile in parent income rank is associated with on average 0.2 percentile increase in child income rank for both natives
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Local business environment, managerial expertise and tax corruption of small- and medium-sized enterprises Baltic Journal of Economics (IF 1.435) Pub Date : 2021-10-16 Nam Hoang Vu, Tuan Anh Bui, Ngoc Minh Nguyen, Ngoc Hiep Luu
ABSTRACT While tax corruption is widespread in many countries with inferior business environments, it is unclear how the characteristics of taxpayers influence their tax behaviour. This study investigates the impact of manager expertise on firms’ tax corruption in a transition economy. Using a longitudinal dataset consisting of small- and medium-sized enterprises in Vietnam over the period from 2005
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What determines the capital structure of farms? Empirical evidence from Poland Baltic Journal of Economics (IF 1.435) Pub Date : 2021-08-30
ABSTRACT The purpose of this paper is to analyse capital structure and its dynamics for farms in Poland, a leading European Union producer. The theoretical framework is based on the trade-off and pecking order theories of capital structure. We use data from the Farm Accountancy Data Network (FADN), which is representative of Polish professional farms during the period 2009–2018. We adopt a dynamic
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Overeducation and wages: the role of cognitive skills and personality traits Baltic Journal of Economics (IF 1.435) Pub Date : 2021-07-13
ABSTRACT This article investigates the extent to which personality traits and cognitive skills can be seen as potential determinants of overeducation, and can explain the overeducation wage penalty. Using a representative survey of the Polish working-age population with well-established measures of cognitive skills and personality traits, I find that accounting for personality and cognitive skills
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The investment behaviour of dairy farms in transition economies Baltic Journal of Economics (IF 1.435) Pub Date : 2021-05-07 Imre Fertő, Štefan Bojnec, József Fogarasi, Ants Hannes Viira
ABSTRACT This article investigates dairy farm investment behaviour and the presence of soft budget constraints in the dairy farms of Baltic and Central European transition countries – Estonia, Hungary and Slovenia – using individual dairy farm accountancy panel data for the years 2007–2015. The empirical results confirm that gross dairy farm investment is positively associated with gross dairy farm
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Do low minimum wages disserve workers? A case study of the Czech and Slovak Republics Baltic Journal of Economics (IF 1.435) Pub Date : 2021-04-29 Kamila Fialová, Martina Mysíková
ABSTRACT This article analyses the effects of minimum wage on employment in the Czech and Slovak Republics based on 2005–17 EU-SILC data. Our results contribute to the scant literature on minimum wage effects in the Central and Eastern European (CEE) region. While prior empirical findings concurred with the effects of minimum wage on labour market outcomes in CEE countries when the minimum wage is
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Fiscal deficit forecasts in Europe: evidence for a double standard? Baltic Journal of Economics (IF 1.435) Pub Date : 2021-02-28 Jakub Rybacki
ABSTRACT Fiscal forecasts produced by international institutions came under strong criticism after the Eurozone sovereign debt crisis due to excessive optimism. Presently, international organizations are also accused of applying a double standard. Their opponents claim they depict negative picture for populist governments. This paper evaluates forecasts provided by the IMF, European Commission and
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The impact of credit shocks on the European labour market Baltic Journal of Economics (IF 1.435) Pub Date : 2021-01-17 Katalin Bodnár, Ludmila Fadejeva, Marco Hoeberichts, Mario Izquierdo Peinado, Christophe Jadeau, Eliana Viviano
ABSTRACT The sovereign debt crisis led to financial difficulties for European firms and a decline in the use of labour input. We use qualitative firm-level data for 24 European countries, collected within the third wave of the Wage Dynamics Network (WDN3) of the ESCB, to propose a cross-country analysis of the relationship between a credit shock and labour markets. We first derive a set of indices
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Measuring the effects of inflation and inflation uncertainty on output growth in the central and eastern European countries Baltic Journal of Economics (IF 1.435) Pub Date : 2020-11-30 Dejan Živkov, Jelena Kovačević, Nataša Papić-Blagojević
ABSTRACT This paper investigates how inflation and its uncertainty impact GDP growth in eight Central and Eastern European Countries. Inflation uncertainty series are created examining several GARCH models in combination with three different distribution functions, while the nonlinear effect of inflation and its uncertainty on GDP growth is assessed in the Bayesian quantile regression framework. We
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Country-level effects of the ECB's expanded asset purchase programme Baltic Journal of Economics (IF 1.435) Pub Date : 2020-09-04 Andrejs Zlobins
ABSTRACT This paper evaluates the macroeconomic effects of the European Central Bank's (ECB) Expanded asset purchase programme (APP) on Latvia and other euro area jurisdictions and investigates the cross-border transmission mechanism. To that end, we employ two different vector autoregressive (VAR) models, namely a bilateral structural VAR with block exogeneity (BSVAR-BE) and a multi-country mixed
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Conventional and unconventional monetary policies: effects on the Finnish housing market Baltic Journal of Economics (IF 1.435) Pub Date : 2020-07-15 Signe Rosenberg
ABSTRACT This paper investigates how different types of monetary policy have affected house prices in Finland, a small euro area economy that has experienced pronounced business cycles over time. The analyses are carried out using the Bayesian structural vector autoregressive approach. Monetary policy interest rate shocks and balance sheet shocks are identified using zero and sign restrictions. The
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Measurement and decomposition of Lithuania's income inequality Baltic Journal of Economics (IF 1.435) Pub Date : 2020-06-26 Nerijus Černiauskas, Andrius Čiginas
ABSTRACT Even though Lithuania’s household income inequality is among the highest in the European Union (EU), little empirical work has been carried out to explain such disparities. We investigate it using the EU Statistics on Income and Living Conditions sample microdata. We confirm that income inequality in Lithuania is high compared to the EU average. Our decompositions reveal that the number of
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Macroeconomic volatility, monetary union, and external exposure: evidence from five Eurozone members Baltic Journal of Economics (IF 1.435) Pub Date : 2020-06-26 Scott W. Hegerty
ABSTRACT Membership in a common currency area is thought to promote economic stability by facilitating macroeconomic convergence, but a country might give up important monetary policy tools that could help stabilize its economy following a shock. The effect of a common currency on macroeconomic volatility can therefore be ambiguous. This study examines five Central and Eastern European countries that
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Southern and Eastern Europe in the Eurozone: convergence or divergence? Baltic Journal of Economics (IF 1.435) Pub Date : 2020-05-29 Andrea Boltho
ABSTRACT A number of studies have concluded that, contrary to expectations, European monetary union has not reduced income disparities among the 12 Western European member countries. In fact, incomes per capita between Southern and Northern Eurozone members have diverged since the Eurozone was created, in contrast to earlier trends which had seen rapid convergence in living standards across Western
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Asymmetries in effects of domestic inflation drivers in the Baltic States: a Phillips curve-based nonlinear ARDL approach Baltic Journal of Economics (IF 1.435) Pub Date : 2020-05-29 Vladimir Mihajlović, Gordana Marjanović
ABSTRACT This study investigates asymmetry in the impact of domestic inflation drivers in the Baltic States, focusing on the output gap and unemployment gap. We aim to reveal how positive and negative changes in these economic activity indicators affect the inflation rate by employing a nonlinear autoregressive distributed lag approach (NARDL) and the Phillips curve. Empirical results demonstrate the
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Who is responsible for asymmetric fuel price adjustments? An application of the threshold cointegrated VAR model Baltic Journal of Economics (IF 1.435) Pub Date : 2020-04-02 Emilia Gosińska, Katarzyna Leszkiewicz-Kędzior, Aleksander Welfe
ABSTRACT The purpose of the paper is to test the hypothesis about asymmetric price transmission between the fuel markets. The distribution chain is considered at three levels: the European wholesale market, the domestic wholesale market, and the domestic retail market. It is shown that between the European and domestic wholesale markets fuel prices adjust symmetrically and asymmetrically between the
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Language training for unemployed non-natives: who benefits the most? Baltic Journal of Economics (IF 1.435) Pub Date : 2020-03-19 Laura Helena Kivi, Marko Sõmer, Epp Kallaste
ABSTRACT This study evaluates the local language training aimed at the unemployed in Estonia during 2015–2016. The impact of training on employment probability and labour income is estimated by combining propensity score matching with coarsened exact matching. The impact on the probability of being employed is found to be positive after the end of the lock-in effect. Two years after the start of the
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Debt literacy and debt advice-seeking behaviour among Facebook users: the role of social networks Baltic Journal of Economics (IF 1.435) Pub Date : 2019-11-20 Andrzej Cwynar, Wiktor Cwynar, Mieczysław Kowerski, Kamil Filipek, Przemysław Szuba
ABSTRACT Professional advice can be perceived as a means to tackle shortcomings in the objectively measured financial literacy of consumers. However, most studies suggest that less financially literate individuals are less likely to seek experts’ financial advice. At the same time, it has been shown that financial confidence – or subjectively perceived financial literacy – is positively correlated
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Private rental housing market underdevelopment: life cycle model simulations for Poland Baltic Journal of Economics (IF 1.435) Pub Date : 2019-10-19 Michał Rubaszek
ABSTRACT The share of the private rental housing market in Central and Eastern European countries is low. With a survey data from Poland, I show that strong tenure preferences of households toward owning can be attributed to both economic and psychological factors. Building on these findings, I develop a life cycle model and I conduct counterfactual simulations to evaluate how changes in the structure
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Bank credit and money creation in a DSGE model of a small open economy Baltic Journal of Economics (IF 1.435) Pub Date : 2019-09-17 Jaunius Karmelavičius, Tomas Ramanauskas
ABSTRACT By the act of lending banks do not actually intermediate pre-accumulated real resources but rather create new financial resources in the form of deposits. Therefore, bank credit needs to be modelled as a monetary phenomenon, which directly fuels domestic demand and inflationary pressures. So far, there have been just a few attempts to model banks as monetary institutions in the DSGE model
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Can inaction account for the incomplete exchange rate pass-through? Evidence from threshold ARDL model Baltic Journal of Economics (IF 1.435) Pub Date : 2019-08-22 Karolina Konopczak
ABSTRACT Numerous empirical studies suggest that the responses of prices to exchange rate movements are muted, i.e. the exchange rate pass-through is incomplete. In this study we investigate whether this result can be explained by inaction to small changes in the exchange rate, in which case the incompleteness would constitute merely an artefact introduced by the linear specification of the pass-through
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What drives business cycle synchronization? BMA results from the European Union Baltic Journal of Economics (IF 1.435) Pub Date : 2019-08-20 Krzysztof Beck
ABSTRACT The last twenty years have brought a bulk of inconsistent results on the determinants of business cycle synchronization (BCS). Researchers have usually focused their attention on a limited set of possible determinants, not accounting for model uncertainty. For these reasons, Bayesian Model Averaging has been applied in this paper to the dataset with 43 potential determinants of BCS for the
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Firm productivity, heterogeneity and macroeconomic dynamics: a data-driven investigation Baltic Journal of Economics (IF 1.435) Pub Date : 2019-07-18 Mihnea Constantinescu, Aurelija Proškutė
ABSTRACT In this paper, we offer a unique firm-level view of the empirical regularities underlying the evolution of the Lithuanian economy over the period of 2000–2014. Employing a novel dataset, we investigate key distributional moments of real and financial variables of Lithuanian firms. We focus in particular on the issues related to productivity, firm birth and death and the associated employment
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The effectiveness of fiscal policy within business cycle – Ricardians vs. non-Ricardians approach Baltic Journal of Economics (IF 1.435) Pub Date : 2019-05-02 Piotr Krajewski, Agata Szymańska
ABSTRACT This study aims to measure the impact of the share of non-Ricardian households on fiscal multipliers. We show that the share of non-Ricardian households in Hungary increased significantly after crisis began and explain why the plausible reason for this increase is the higher level of liquidity constraints during crisis. We also show that after crisis, when the share of non-Ricardians in Hungary
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Finland’s public sector balance sheet Baltic Journal of Economics (IF 1.435) Pub Date : 2019-03-29 Maren Brede, Christian Henn
ABSTRACT We construct comprehensive public sector balance sheets for Finland for 2000–2016 by complementing general government statistics with data on public corporations and pensions. These static balance sheets show that Finland’s public sector net worth at end 2016 was −160 percent of GDP, after having registered considerable fluctuations previously, including due to asset holdings’ sensitivity
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Cyclicality in lending activity of Euro area in pre- and post- 2008 crisis: a local-adaptive-based testing of wavelets Baltic Journal of Economics (IF 1.435) Pub Date : 2019-03-26 Jitka Poměnková, Eva Klejmová, Zuzana Kučerová
ABSTRACT The paper deals with the identification of time-frequency regions describing cyclicality of bank loans before, during and after the 2008 crisis via wavelets. We bring new methods and findings about the short and medium cycles of loans provided to corporates and households in the Euro Area in 2000–2017 using seasonally unadjusted monthly data. We have recognized an impact of the crisis on data
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Who cares? Evidence on informal and formal home care use in Estonia Baltic Journal of Economics (IF 1.435) Pub Date : 2019-02-22 Irina Mozhaeva
ABSTRACT Despite increasing attention to long-term care (LTC) and related challenges in the Estonian social policy agenda, the distributional fairness of LTC services in the country has received very limited attention. Using SHARE data, we address informal and formal home care services and identify the socio-economic factors that drive or hinder their use among the Estonian elderly. The relationship
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Business orientation, efficiency, and credit quality across business cycle: Islamic versus conventional banking. Are there any lessons for Europe and Baltic States? Baltic Journal of Economics (IF 1.435) Pub Date : 2019-01-08 Nosheen, Abdul Rashid
ABSTRACT This paper empirically investigates the difference between Islamic and conventional banks in terms of business dynamics, cost structure, credit quality, and stability. It also examines the difference in the response of two types of banks during peak and trough phases of the business cycle. The analysis is carried out for a sample of 280 banks in 20 countries over the 1995–2014 period. The
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How do oil price changes affect inflation in Central and Eastern European countries? A wavelet-based Markov switching approach Baltic Journal of Economics (IF 1.435) Pub Date : 2018-12-25 Dejan Živkov, Jasmina Đurašković, Slavica Manić
ABSTRACT This paper investigates how oil price changes affect consumer price inflation in eleven Central and Eastern European countries. We use a wavelet-based Markov switching approach in order to distinguish between the effects at different time horizons. We find that the transmission of oil price changes to inflation is relatively low in the Central and Eastern European countries as an increase
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Wage dynamics and worker mobility during deep recessions Baltic Journal of Economics (IF 1.435) Pub Date : 2018-12-20 Anete Pajuste, Hernán Ruffo
ABSTRACT We provide empirical evidence of the relationship between downward wage rigidity and unemployment volatility by comparing wage dynamics and worker mobility during the Great Recession in two countries where wages adjusted very differently: Latvia and Spain. Using a panel of social security administrative data, we find that wages in Spain were rigid even during periods of rising unemployment
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Crimea and punishment: the impact of sanctions on Russian economy and economies of the euro area Baltic Journal of Economics (IF 1.435) Pub Date : 2018-12-07 Konstantin A. Kholodilin, Aleksei Netšunajev
ABSTRACT The conflict between Russia and Ukraine that started in March 2014 led Western countries and Russia to impose economic sanctions on each other, including the euro zone members. The paper investigates the impact of the sanctions on the real side of the economies of Russia and the euro area. The effects of sanctions are analyzed with a structural vector autoregression. To pin down the effect
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Do macroprudential policy instruments reduce the procyclical impact of capital ratio on bank lending? Cross-country evidence Baltic Journal of Economics (IF 1.435) Pub Date : 2018-12-06 Małgorzata Olszak, Sylwia Roszkowska, Iwona Kowalska
ABSTRACT In this paper, we ask about the capacity of macroprudential policies to reduce the procyclical impact of capital ratio on bank lending. We focus on aggregated macroprudential policy measures and on individual instruments and test whether their effect on the association between lending and capital depends on bank size. Applying the GMM 2-step Blundell and Bond approach to a sample covering
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Ragnar Nurkse and the international financial architecture* * Editors’ note: this article is based on the lecture given by Professor Barry Eichengreen for the 2017 Ragnar Nurkse Memorial Lecture on January 12, 2017. The lecture series dedicated to Ragnar Nurkse is organised by the Bank of Estonia and commenced in 2007. Ragnar Nurkse was born in Rapla County in Estonia in 1907 and studied at the University Baltic Journal of Economics (IF 1.435) Pub Date : 2018-11-09 Barry Eichengreen
ABSTRACT This lecture discusses the work by the Estonian economist Ragnar Nurkse (1907–1959). It focuses on the early Nurkse, who was concerned with exchange rates, capital flows and what today we call the international financial architecture. It asks how many of the conclusions of International Currency Experience [Nurkse, R. (1944). International Currency Experience. Geneva: League of Nations.] survive
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Network-based macro fluctuations: what about an open economy? Baltic Journal of Economics (IF 1.435) Pub Date : 2018-09-19 Mihnea Constantinescu, Kristina Barauskaite
ABSTRACT Do input–output linkages of intermediate products affect the spread of sectoral shocks at the aggregate level in Lithuania, a small and open economy? What role does openness play in the empirical exercise? We answer these questions by: (i) constructing the Lithuanian input–output transactions tables with domestic-only and domestic and imported sector-by-sector direct requirements, and (ii)
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Job retention among older workers in central and Eastern Europe Baltic Journal of Economics (IF 1.435) Pub Date : 2018-09-03 Wojciech Hardy, Aneta Kiełczewska, Piotr Lewandowski, Iga Magda
ABSTRACT We study job retention rates – the shares of workers who continue to work in the same job over the next five years – in Czechia, Hungary, Poland and Slovakia. Job retention among older workers is key to prolonging careers and increasing employment of older people which in turn is a crucial challenge for these countries. We find that the retention rates among workers aged 55–59 are low and
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Minimum wages and employment retention: A microeconometric study for Estonia Baltic Journal of Economics (IF 1.435) Pub Date : 2018-06-26 Simona Ferraro, Birgit Hänilane, Karsten Staehr
ABSTRACT This paper assesses the effect of increases in the Estonian minimum wage in 2013–2016 on the probability of workers at different wage levels retaining employment. The effect is identified by comparing the probability of workers remaining employed after increases in the minimum wage in 2013–2016 with the probability of workers at comparable wage levels remaining employed in the 2009–2011 when
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The public–private sector wage gap in Latvia Baltic Journal of Economics (IF 1.435) Pub Date : 2018-04-02 Karlis Vilerts
ABSTRACT This study investigates the public–private sector wage gap in Latvia using microdata from the labour force survey. The severity of public sector wage cuts employed as a response to the economic crisis and subsequent recovery provides a test bed to analyse whether and how the public–private sector wage gap has adjusted after consolidation-driven wage cuts. Findings reveal that the observed
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The Baltic banking system in the enlarged European Union: the effect of the financial crisis on efficiency Baltic Journal of Economics (IF 1.435) Pub Date : 2017-11-01 José Luis Gallizo, Jordi Moreno, Manuel Salvador
ABSTRACT The main objective of this study is to analyse the evolution of banking efficiency in the Baltic countries after their accession to the EU and during the financial crisis, and to check whether there are significant differences between these countries as a consequence of their particular characteristics. To that end, we have estimated the evolution of cost and profit efficiency in the Baltic
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Editorial Baltic Journal of Economics (IF 1.435) Pub Date : 2017-10-19 Anders Paalzow, Konstantins Benkovskis, Nicolas Gavoille, Anna Zasova
(2017). Editorial. Baltic Journal of Economics: Vol. 17, No. 2, pp. 215-215.
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Influence of internet and social media presence on small, local banks’ market power Baltic Journal of Economics (IF 1.435) Pub Date : 2017-09-19 Dariusz Filip, Krzysztof Jackowicz, Łukasz Kozłowski
ABSTRACT We study the impact of Internet and social media presence on the market power of small, local banks in Poland. We observe that small banks, which generally embraced new distribution and communication channels considerably later than the large commercial banks, had to forego a portion of their market power to defend market shares or reach new customers. The size of the market power sacrifice