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AbstractThe goal of this paper is to test the mean reversion process of the inflation rate in the Eurozone during the COVID‐19 pandemic crisis. The study uses weekly data on consumer prices (measured through the Harmonized Consumer Price Index), spanning the period from 2020 to the mid of 2022. The findings document that euro area inflation follows a mean non‐reverting process, with most of its components following a similar pattern. Moreover, sub‐period analysis illustrates that the vaccination process against the pandemic gives a transitory character to euro area inflation, which, however, is dominated by the lockdown and the Omicron mutation periods. Finally, comparative analysis illustrated the differences of inflation persistence during the Global Financial Crisis of 2007–2009.

PurposeThis study explores the role of rising US student loan debt in explaining income inequality.Design/methodology/approachThe study uses the autoregressive distributed lag (ARDL) modeling approach to explore the short- and long-run impact of college debt on income inequality in the US through quarterly data over the period 2000–2019.FindingsThe results demonstrate the detrimental impact of student debt on national and regional income inequality. Moreover, the regional analysis highlights a more pronounced impact of student debt on income distribution in South and West regions. The findings document that these regions, with the lower student debt proportions, have the lowest average cost of attending college. Finally, the analysis explores two potential channels – i.e. race and homeownership – that could explain the link between college student debt and income inequality.Practical implicationsThe results can be helpful for policymakers and researchers to formulate practical approaches for assessing and addressing the rising national student debt and income inequality.Originality/valueThis is the first, to the best of the author's knowledge, study that explores the impact of US college debt on income inequality.

This paper explores the link between income inequality and banking crises, when inequality is affected by fiscal policy. Using a two-stage probit least squares method and a panel of 21 countries, spanning the period 1971-2017, the findings indicate that inequality impacts the probability of banking crises through budget deficits, followed by government expenses. ; N/A

Given that the literature on the impact of natural disasters on house prices is highly limited, this paper combines data on natural disasters and house prices from 117 countries, spanning the period 2000-2018 and a panel regression method to estimate the effects of natural disasters on house prices. The findings document that natural disasters lead to lower house prices, with the results surviving a number of robustness tests. When examining the impacts of natural disasters by type, the findings highlight that geological disasters exert the strongest (negative) impact on house prices. The results also illustrate the negative impact of those disasters on house prices when the distinction between small and large disasters is also accounted. The findings provide important implications for policymakers and property investors. Lower house prices in countries experience natural disasters events could significantly signify lower consumption and investment (the wealth effect), with further negative spillovers to the real economy. Economic policymakers could implement low-tax policies or quantitative easing schemes to support these areas/countries. The findings exemplify the need of governments and policymakers to mitigate climate change effects on housing by adopting new, more environmentally friendly technologies and energy sources. ; N/A

AbstractIn this article, I explore the relation among board‐level financial expertise, profitability, and risk with panel data from the U.K. banking industry. The empirical findings document that collectively, financial experts have a positive influence on the performance of banks; contribute to higher risks, especially for large banks; and improve the stock performance of banks. Moreover, the results highlight that board‐level qualified accountants have no statistical effect on profitability, whereas financial and banking professors, as well as financial experts from other industries, have a positive effect. Such findings imply that these two groups of professional financial experts may more easily adopt group‐level profit enhancements. Robustness checks confirm the results for all types of banking institutions, except those with strong real estate portfolios. Finally, certain commercial and/or policy implications of the results are reported.

PurposeThe purpose of this paper is to explore the direct and exclusive effects of this rather unconventional monetary policy on financial markets, economic activity and labor markets across the Eurozone.Design/methodology/approachUsing a range of variables, the analysis employed the Markov-switching dynamic regression methodological approach.FindingsThe findings provided evidence in favor of the reduction of short- and log-term credit spreads, increased stock prices, improved market expectations, recovered labor market conditions and economic productivity, while the primary transmission channel of the quantitative easing policy is the expectations channel.Originality/valueThe novelties of this paper are twofold: it makes use of a wide data set to investigate the effect of economic and financial variables on productivity, labor markets, bond markets and equity markets in the Eurozone; and the analysis focuses on the direct effects of monetary base increases on the Eurozone economy, as well as on Eurozone financial markets.

Given that household debt raises certain concerns about the resilience of the economy, against this backdrop, this paper explores whether household debt‐service matters as a leading indicator for consumption. Employing data from 32 countries, spanning the period 1999–2017 and the empirical analysis provides fresh information on the fact that the debt‐service ratio strongly predicts consumption expenditure. The results also document that the effect of the debt‐service ratio on consumer expenditure differs across types of consumer spending (durables vs nondurables vs services). In particular, the impact is strong for the case of the durable goods and weaker in the other two cases. The findings imply that debt‐service may serve as an important channel, running from debt to consumer spending. Finally, the results survive a number of robustness tests, while liquidity constraints seem to dominate the drivers of household consumption decisions.

Using a panel of the UK counties, spanning the period 2010-2016, this study exploreswhether having a Labour or Conservative council affects a county's economic freedom.Due to data unavailability of any economic freedom index for the UK counties,the analysis employed direct measures in relevance to three sub-components ofeconomic freedom, i.e. size of government, sound money and the freedom to tradeinternationally. Using a regression discontinuity approach, we find strong evidencethat the political ideology of a council affects all three sub-components of economicfreedom. An implication of this result is that councils appeal to specific groups ofvoters when making policy. ; Using a panel of the UK counties, spanning the period 2010-2016, this study exploreswhether having a Labour or Conservative council affects a county's economic freedom.Due to data unavailability of any economic freedom index for the UK counties,the analysis employed direct measures in relevance to three sub-components ofeconomic freedom, i.e. size of government, sound money and the freedom to tradeinternationally. Using a regression discontinuity approach, we find strong evidencethat the political ideology of a council affects all three sub-components of economicfreedom. An implication of this result is that councils appeal to specific groups ofvoters when making policy.

This paper uses a fractional methodology to assess convergence in terms of differences in health quality measures, based on six primary criteria, across the English regions. Hence, it uses the English Longitudinal Study of Ageing database and the retrospective interviews from 16,894 participants, aged 50+, with data from three waves–2004/5, 2006/7 and 2008/9, to establish that health quality is characterized by divergences across six health quality criteria. When the overall sample is differentiated through income, education and employment, the evidence favors convergence, indicating that certain socioeconomic factors impose a uniform behavioral attitude of the population toward health quality criteria.