The fallout from the Global Crisis and its aftermath has been deeply damaging for European output. This column uses a growth accounting framework to explore the pre-Crisis and post-Crisis growth dynamics of several European countries. The weakness of post-Crisis real GDP in the Eurozone manifested itself in a decline in employment and average hours worked. However, decomposing growth for the Eurozone as a whole conceals significant differences across European countries, in both real GDP growth and its factor inputs.
Kevin Daly, Tim Munday, Saturday, November 28, 2015 - 00:00
Carlo Favero, Vincenzo Galasso, Sunday, October 18, 2015 - 00:00
Demographic trends in Europe do not support empirically the secular stagnation hypothesis. Our evidence shows that the age structure of population generates less long-term growth but positive real rates. Policies for growth become very important. We assess the relevance of the demographic structure for the choice between macro adjustements and structural reforms. We show that middle aged and elderly individuals have a more negative view of reforms, competitiveness and globalization than young. Our results suggest that older countries -- in terms of share of elderly people -- should lean more towards macroeconomic adjustments, whereas younger nations will be more supportive of structural reforms.
Shekhar Aiyar, Anna Ilyina, Andreas Jobst , Thursday, November 5, 2015 - 00:00
European banks are struggling with high levels of non-performing loans. This column explores the channels through which persistently high non-performing loans hold down credit growth and economic activity. A survey of EU authorities and banks reveals that the loans are not written-off for a variety of deep-seated reasons, including legal and tax code issues. An agenda is proposed comprising tightened bank supervision, structural bankruptcy reforms, and the development of markets for distressed assets.
Simone Moriconi, Giovanni Peri, Monday, October 19, 2015 - 00:00
Unemployment rates vary widely across EU countries. While national institutions and policies explain much of the variation, cultural values, attitudes, and beliefs may also play a role. This column uses survey data from 26 EU countries to investigate the existence of culturally transmitted preferences for work. Country-specific preferences for work are found to have a positive effect on emigrants’ labour market outcomes, with those from countries with an above-average preference for work having higher employment rates abroad. Cultural preferences are significant enough that EU countries may never converge to the same employment rate.
Plamen Iossifov, Jiří Podpiera, Monday, February 16, 2015 - 00:00
Masayuki Morikawa, Sunday, November 23, 2014 - 00:00
Morris Goldstein, Tuesday, November 18, 2014 - 00:00
Brent Glover, Seth Richards-Shubik, Wednesday, November 12, 2014 - 00:00
Jean Pisani-Ferry, Friday, November 7, 2014 - 00:00
Daniel S. Hamermesh, Elena Stancanelli, Monday, September 29, 2014 - 00:00
American employees put in longer workweeks than Europeans. They are also more likely to work at undesirable times, such as nights and weekends. This column argues that the phenomena of long hours and strange hours are related. One possibility for this is cultural – Americans simply enjoy working at strange times. Another, more probable explanation, is the greater inequality of earnings of low-skilled workers in the US, compared to Europeans.
Judith Niehues, Sunday, September 28, 2014 - 00:00
Charles Wyplosz, Friday, September 12, 2014 - 00:00
Marcus Miller, Lei Zhang, Wednesday, September 10, 2014 - 00:00
Reinhilde Veugelers, Thursday, August 28, 2014 - 00:00
Coen Teulings, Richard Baldwin, Wednesday, September 10, 2014 - 00:00
The CEPR Press eBook on secular stagnation has been viewed over 80,000 times since it was published on 15 August 2014. The PDF remains freely downloadable, but as the European debate on secular stagnation is moving into policy circles, we decided to also make it a Kindle book. This is available from Amazon; all proceeds will help defray VoxEU expenses.
Emanuele Massetti, Elena Ricci, Wednesday, July 23, 2014 - 00:00
Concentrated solar power generation in Northern African and Middle Eastern deserts could potentially supply up to 20% of European power demand. This column evaluates the technological, economic, and political feasibility of this idea. Although concentrated solar power is a proven technology that can work at scale, it is currently four or five times more expensive than fossil fuels. Concentrated solar power could play an important role in Europe’s energy mix after 2050, but only if geo-political challenges can be overcome.
Marco Onado, Sunday, February 23, 2014 - 00:00
The financial crisis showed that European banks were much more fragile than expected. This column discusses some of the changes implemented by banks since the crisis. Overall, their responses have been minor. Currently, most banks remain highly leveraged, yet yielding low returns. Redressing this could require a reduction of non-core assets and/or a slashing of operating costs. Ultimately, something has to give. European banks have yet to reach a post-crisis equilibrium.
Mickey Levy, Friday, February 21, 2014 - 00:00
A popular view among economic commentators is that rich countries face a serious risk of deflation, and should adopt aggressive macroeconomic stimulus policies to ward it off. This column argues that despite similar headline inflation rates, the US, Europe, and Japan in fact face very different macroeconomic conditions. In the US, much of the recent disinflation is attributable to positive supply-side developments. In Europe, an aggressive round of quantitative easing might encourage policymakers to delay the reforms that are necessary to avoid a prolonged Japanese-style malaise.
Iftekhar Hasan, Tuomas Takalo, Friday, January 24, 2014 - 00:00
Efficient retail payments are associated not only with lower direct costs but also with indirect benefits, and ultimately – with enhanced economic growth. This column presents research on different retail payment habits in the Eurozone. A correlation exists between the forms of payment in a country and its recent economic fortune. There are a number of methods to promote more efficient payments. The biggest challenge to increase the efficiency of retail payments in Europe is the heavy regulation and barriers to entry of new payment methods.
Nina Leheyda, Frank Verboven, Thursday, December 5, 2013 - 00:00
Scrapping subsidies were a popular policy to protect car sales in the beginning of the crisis. This column presents new research showing that the subsidies had a strong effect on stabilising sales, but only a small environmental impact. There may thus be more productive investments to stabilise the economy during times of crisis.