Suchergebnisse

During the sovereign debt crisis, all euro countries have deployed \aus- terity packages", believing that they could regain the path of growth im- plementing structural reforms and cutting government spending. Such policies should have led to an initial decline in GDP followed by recov- ery and a reduction of the debt to gdp ratio. A key issue is the size of fiscal multipliers when the economy is in recession. We estimate a non- linear model allowing variations based on the state of the economy and we control for the macroeconomic characteristics across the Euro Area. The empirical evidence suggests that, an increase in government spending will be particularly effective to boost aggregate demand, increase private consumption and investment in the short-to-medium run, without raising the debt to gdp ratio but rather decreasing it.

During the sovereign debt crisis, many Euro countries have deployed "austerity packages" implementing structural reforms and cutting government spending. Such policies should have led to an initial decline in GDP followed by recovery and a reduction of the debt to gdp ratio. Key to this outcome is the size and sign of expenditure multipliers when the economy is in a recession. We estimate, for the Eurozone countries, expenditure multipliers in recession and expansion using the linear projection approach and forecast errors to identify exogenous expenditure shocks. The empirical evidence suggests that, in a recession, an increase in government spending will be effective in boosting aggregate demand, crowding-in private consumption in the short-to-medium run, without raising the debt to gdp ratio but rather decreasing it. The opposite applies in expansions. Estimates also show that expenditure multipliers, in a recession, are larger in high debt/deficit countries than in low debt/deficit countries. In a recession,fiscal consolidation based on expenditure cuts would have both short and medium run contractionary effects.

AbstractWe investigate the impact of ECB conventional (CMP) on national banking indices of 10 Eurozone countries and a Eurozone‐wide banking index using the event study technique. We find that announcements of unexpected increases in interest rates benefit French, German, Greek and Italian banks when interest rates are low, while in other periods, the effect is muted. A plausible explanation is that bank profits are squeezed when interest rates are low because banks are reluctant to push deposit rates to zero. Our results are robust to potentially confounding events related to unconventional monetary policy announcements, volatility clustering and volatility expectations.

We analyze the non-linear effects of government spending for the Euro area in recession, by using local projection method and by testing whether the impact of the shock depends crucially on the levels of public debt or the depth of the recession. We provide three insights. First, expenditure multipliers are not strongly state-dependent but they are always above unity. Second, state dependency emerges as soon as deep recession is distinguished from ordinary downturns. Third, fiscal space matters: expenditure multipliers are larger in low fiscal space, high debt, South-EZ countries than in low-debt, North-EZ countries.

AbstractThe aim of this article is to analyse the effect of non‐financial reporting regulation on firms' Environmental, Social, and Governance (ESG) performance, commitment and effectiveness. Specifically, we explore the implications of the European Non‐Financial Reporting Directive (NFRD) mandating disclosure on non‐financial and diversity information by certain large companies. To identify the effect of the EU disclosure regulation on firms' ESG scores, we performed a differences‐in‐differences estimation using a sample of EU firms as the treated group and a sample of US firms as the control group in the period 2015–2020. Overall, our findings suggest that regulatory efforts to increase the transparency of the social and environmental impacts of firms' activities on society are effective at improving disclosure commitment and effectiveness. Hence, regulation supports the adoption of ESG strategies to the benefit of the whole society. The study provides a fresh comparison between regulating or not the ESG information market, drawing suggestions for future policy.

During the sovereign debt crisis, many Euro countries have deployed \austerity packages" implementing structural reforms and cutting government spending. Such policies should have led to an initial decline in GDP followed by recovery and a reduction of the debt to gdp ratio. Key to this outcome is the size and sign of expenditure multipliers when the economy is in a recession. We estimate, for the Eurozone countries, expenditure multipliers in recession and expansion using the linear projection approach and forecast errors to identify exogenous expenditure shocks. The empirical evidence suggests that, in a recession, an increase in government spending will be eective in boosting aggregate demand, crowding-in private consumption in the shortto- medium run, without raising the debt to gdp ratio but rather decreasing it. The opposite applies in expansions. Estimates also show that expenditure multipliers, in a recession, are larger in high debt/dect countries than in low debt/decit countries. In a recession, scal consolidation based on expenditure cuts would have both short and medium run contractionary effects.