Journal of Political Economy, Ahead of Print.

Journal of Political Economy, Ahead of Print.

This paper examines how the ethnic composition of SMEs’ business teams, also in conjunction with their strategic behaviour (including digitalisation, innovation and exporting), affect their employment growth. The study conceptualises different forms and aspects of social capital to develop the theoretical framework and hypotheses. We utilise the UK Office for National Statistics’ Longitudinal Small

The UK, like other Organisation for Economic Co-operation and Development (OECD) economies, has experienced a dismal decade and a half since the financial crisis. The reason lies in the dual technological transition, energy and digital, which is prompting structural shifts in the economy that require a co-ordinated policy response. This implies the need for more co-ordinated policies and more active

Journal of Political Economy, Ahead of Print.

The rapid evolution of digital technologies over the past decades has induced profound economic and social transformations. Economic geography faces the ongoing challenge of assimilating these changes into existing theories that elucidate the dynamics of the global economy. In response, we present the Global Digital Networks (GDN) framework, drawing inspiration from established analytical instruments

Journal of Political Economy, Ahead of Print.

Journal of Political Economy, Ahead of Print.

Credit supply to small businesses may ease financial frictions, helping them grow faster and re-optimize the factor inputs for production, particularly when lumpy and/or long-term investment is required. We study how government loan programs address these two issues by combining the loan-level data with firms’ financial statements. We find that, with additional credit supplied by government, (i) small

Rising interest rates can create “mortgage rate lock” for homeowners with fixed rate mortgages, who can hold onto their low rates as long as they stay in their homes but would have to take on new mortgages with higher rates if they moved. We show mobility rates fell in 2022 and 2023 for homeowners with mortgages, as market rates rose. We observe both absolute declines and declines relative to homeowners

Journal of Political Economy, Ahead of Print.

From a new data set, we infer time series of term structures of yields on U.S. federal bonds during the gold standard era from 1791–1933 and use our estimates to reassess historical narratives about how the United States expanded its fiscal capacity. We show that U.S. debt carried a default risk premium until the end of the nineteenth century, when it started being priced as an alternative safe asset

Over the last two decades, there has been a significant surge in the self-employment rate among Hispanics, especially among Hispanic immigrants. However, the reasons behind this increase remain underexplored. This paper addresses this gap by examining the role of undocumented immigrants, a substantial part of the Hispanic immigrant population, by discerning immigrants’ legal status in the Current Population

Sustainability practices have a positive effect on the financial performance of SMEs. We extract ESG-related information for a sample of Spanish SMEs over the period 2012–2022 using tools provided by the Internet Archive to estimate a staggered difference-in-differences model of how the release of new ESG-related information impacts the financial performance of SMEs. ESG-related information can be

Journal of Political Economy, Ahead of Print.

Journal of Political Economy, Ahead of Print.

We present a stylized microeconomic model to analyze solar panels and storage investment decisions of a representative consumer under either grid (credit regulation) or individual (price regulation) storage. We identify the conditions under which prosumers become storers. We show that solar technology must be more competitive under credit than price regulation for consumers to invest in storage. We

Journal of Political Economy, Ahead of Print.

Journal of Political Economy, Volume 132, Issue 12, December 2024.

Journal of Political Economy, Volume 132, Issue 12, Page 4225-4234, December 2024.

Journal of Political Economy, Volume 132, Issue 12, Page 4223-4223, December 2024.

Journal of Political Economy, Volume 132, Issue 12, December 2024.

This study delves into the complexities of energy commodity futures and clean energy indexes, analyzing their responses to geopolitical risk. The detrended fluctuation analysis was applied, and the efficiency index was estimated to assess energy market behavior better. This approach allows the evaluation of long-range dependence and market efficiency. The findings show evolving patterns influenced

This paper investigates the connection between energy uncertainty and banking credit risk within the Eurozone. To analyze this relationship, we first apply a Bayesian time-varying VAR model to examine how shocks in energy uncertainty influence financial risk. Next, we use the impulse response function to assess how these shocks propagate through the banking sector. Further, long-run Granger causality

This paper extends discussion of parental influence on adolescent’s occupational intentions by including parents’ socioeconomic status and by arguing that entrepreneurial self-efficacy (ESE) as instrumental to both entrepreneurial intention and employment intention. The adolescents’ social milieu is proxied by their parents’ occupational type and formal education and income levels, which adds their

Considering the policies surrounding carbon trading, decarbonization plans have been regarded as imperative choices for the manufacturing industry. However, there has been little research into combining the concrete carbon quota allocation methods with the low-carbon supply chain. Still, the distinction between ordinary and low-carbon manufacturers has been scarcely investigated. To fill these gaps

Inequality in income and consumption expenditure is intricately linked to discrimination based on gender, caste, and religion in India. Using large-scale administrative survey data – the Consumer Pyramids Household Surveys (CPHS), we provide empirical evidence on Roemer's paradigm of equality of opportunity in energy consumption and its components: fuel and electricity consumption. We investigate the

Journal of Political Economy, Ahead of Print.

In the European Union's electricity wholesale markets, energy is traded across large bidding zones, which, in most cases coincide with national borders: the so-called zonal markets. Within each market zone, energy flows are supposed to be free of transmission constraints. However, in some cases transmission constraints exist, implying an inefficient mismatch between demand and supply in different areas

This paper uses the dynamic connectedness framework to investigate the interrelationship between the decomposed oil supply, demand and risk shocks that Ready (2018) developed and the stock market returns of emerging market economies. For this purpose, we use daily data from 11 October 2001 to 5 April 2021. Novel empirical methodologies, including wavelet quantile correlation (WQC), cross-quantilogram

As a complement to previous studies related to geopolitical risk (GPRs) and renewable energy development, this study examines the impact of GPRs on renewable energy technology innovation in an attempt to reveal whether fluctuations in GPRs promote energy transition. The study finds that increased levels of GPRs will foster technological innovation in the renewable energy sector, most pronounced in

We investigate the impact of global common volatility and geopolitical risks on clean energy prices. Our study utilizes daily data from January 1, 2001, to March 18, 2024. Using a new framework based on explainable artificial intelligence (XAI) methods, our findings demonstrate that the COVOL index outperforms the geopolitical risk index in accurately predicting clean energy prices. Furthermore, the

The change in the cost of capital that results from a divestiture strategy can be closely approximated by a simple function of three parameters: (1) the fraction of socially conscious capital, (2) the fraction of targeted firms in the economy and (3) the return correlation between the targeted firms and the rest of the stock market. When calibrated to current data, we demonstrate that the impact on

This paper examines how pro-market reforms affect entrepreneurial innovation through the lens of the dynamic institution-based view of the firm. We propose that the speed at which changes occur has a positive influence on entrepreneurial innovation. Additionally, we hypothesize that, in highly uncertain environments, entrepreneurs with higher levels of entrepreneurial self-efficacy and those who have

How does inventors’ migration affect international talent allocation, knowledge diffusion, and productivity growth? To answer this question, I build a novel two-country innovation-led endogenous growth model, where heterogeneous inventors produce innovations, learn from others, and make dynamic migration and return decisions. Migrants interact with individuals at origin and destination, diffusing knowledge

We investigate the relationship between business strategies and corporate carbon (CO2) emissions. Using a sample of US publicly listed firms, we document that firms following a prospector-type business strategy emit significantly less CO2 than those adopting a defender-type strategy. We also find that this relationship holds for Scope 1, Scope 2, and Scope 3 emissions. This connection is more evident

This paper examines how border carbon adjustments (BCAs) may address the consequences of uncoordinated global climate action, focusing on the economic impacts for Canada. We investigate these impacts under different BCA design features and by considering a coalition of countries and regions that adopt BCAs. We find that when Canada is within a coalition of BCA-implementing countries including the United

The paper examines how women's political empowerment affects renewable energy demand, considering factors like energy costs, green technologies, and gross domestic product (GDP) growth in the panel dataset of 36 Organisation for Economic Cooperation and Development (OECD) economies from 1990 to 2022. The Least Absolute Shrinkage and Selection Operators (LASSOs) algorithms select the critical drivers

In the eighteenth and nineteenth centuries the United Kingdom transported convicts to the penal colonies of New South Wales and Van Diemen's Land. Most of the convicts who were sent to the colonies were men. Treating it as a quasi-natural experiment, we employ the gender imbalance associated with this historical event to examine how gender norms influence the adoption of photovoltaic solar panels (PVS)

Workers who are worried about their personal finances may find it hard to focus at work. If so, reducing financial concerns could by itself increase productivity. We test this hypothesis in a sample of low-income Indian piece-rate manufacturing workers. We stagger when wages are paid out: some workers are paid earlier and receive a cash infusion while others remain liquidity constrained. The cash infusion

This study investigates the drivers of renewable energy capacity in 25 OECD countries from 1989 to 2019, with a particular focus on the complex role of oil prices in the energy transition. Given their strong correlation with major fossil fuels like coal and gas, understanding the impact of oil price shocks is crucial for shaping effective transition strategies. We examine this impact from a climate

We combine econometric estimation with quantitative modeling to generate projections on the trade, GDP, and emissions effects of a potential trade liberalization agreement involving energy-related environmental goods (EREGs) and environmentally preferable products (EPPs). Trade liberalization can contribute to reduced emissions in two ways in our projections: (i) a reduction of import prices of goods

We develop and apply a modelling framework to estimate the micro-level employment impacts of climate policies in Aotearoa New Zealand. Our approach links an economy-wide model with a micro simulation module to calculate employment changes for different groups of the population across several dimensions (and combinations of dimensions), including sectoral, geospatial, demographic, and socio-economic

We examine how the US treasury yields are connected with traditional energy and green cryptocurrencies in higher moments. For this purpose, we first compute the US treasury yield curve's Level, Slope, and Curvature based on different maturities from October 2017 to December 2023 and then apply the TVP-VAR model on return, volatility, Skewness, and Kurtosis measures. We find that returns are the most

This paper examines the recent increase in natural gas prices, the sensitivity of inflation expectations, and the pass-through to inflation. Using a semi-structural vector autoregression, we identify a natural gas price shock in the euro area with a combination of sign and zero restrictions. We rely on market-based measures of inflation expectations. The results show that shocks to the real price of

This paper explores the interconnections among oil, artificial intelligence (AI), clean technology, and traditional markets. We apply a novel generalized quantile-on-quantile connectedness method that assesses variable cross-quantile interdependencies, analyzing data from 2018 to 2023. Our study provides a detailed examination of risk transmission dynamics between oil, AI, clean technology, and major

This study investigates the relationships between social and political trust and views on energy affordability, which are crucial for promoting sustainable energy practices. The findings indicate that social and especially political trust are negatively correlated with perceptions of energy affordability. The study also finds that the probability of being highly concerned about energy affordability

Disputes over cost allocation can present a significant barrier to investment in shared infrastructure. While it may be desirable to allocate cost in a way that corresponds to expected benefits, investments in long-lived projects are made under conditions of substantial uncertainty. In the context of electricity transmission, uncertainty combined with the inherent complexity of power systems analysis

This paper analyzes the reputational effects of forced CEO turnovers on outside directors. We find that directors interlocked to a forced CEO turnover experience large and persistent increases in withheld votes at subsequent re-elections relative to non-turnover-interlocked directors. Directors are not penalized for an involvement in a turnover per se but for forced CEO turnovers that are related to

What causes adverse policing outcomes, such as excessive uses of force and unnecessary arrests? Prevailing explanations focus on problematic officers or deficient regulations and oversight. Here, we introduce a new, overlooked perspective. We suggest that the cognitive demands inherent in policing can undermine officer decision-making. Unless officers are prepared for these demands, they may jump to

A nationwide panic forced President Roosevelt to declare a banking holiday in March 1933. The government reopened banks sequentially using a process that sent noisy signals about banks’ health. New microdata reveals that the public responded to these signals. Deposits at rapidly reopened banks rebounded quicker than at comparable or stronger banks that reopened even a few days later. The stigma of

This study aims to examine the combined effects of green energy (Sustainable Development Goal, SDG-7.2), energy efficiency (SDG-7.3), and economic productivity (SDG-8.2) in mitigating energy-driven GHG emissions. The novelty of this study is that it extends the Kaya identity to mathematically explain how the two SDG-7 goals affect energy-driven emissions, and it provides global empirical evidence from

This paper evaluates the effects of the More Productive Brazil Program (BMP) which provided subsidized on-site management consultancies about lean manufacturing techniques to 3000 establishments between 2016 and 2018. The BMP was restricted to four manufacturing sectors but included large, medium, and small-sized establishments. We apply two-way fixed effects regressions and event study specifications

Reliance only on economic growth fueled by fossil fuels may become unsustainable, where the negative ecological consequences of this growth path are rapidly impacting the ecosystem. To address these challenges, enhancing supply chain digitalization, increasing business enterprise R&D expenditure, and boosting government budget allocations for R&D are essential. Additionally, improving fossil fuel energy

Geopolitical risk, as a key determinant of energy supply, greatly influences the vulnerability of energy markets. This study develops a novel energy market vulnerability index—which measures the level and dynamics in vulnerability of energy markets from market risk perspective—using a quantile connectedness approach for the first time. Then, by introducing a generalized autoregressive conditional

The prior literature has argued that inter-sectoral supply chain links provide an important channel for technology diffusion and productivity spillovers across industries, but whether such vertical spillovers influence industrial energy use has remained unexplored thus far. This study analyzes how the energy intensity of European industries is affected by vertical technology and energy productivity

Revenue cap regulation (RCR) is increasingly common in the energy sector because it purportedly reduces the regulated firm's disincentive to promote conservation. In comparison with price-cap regulation, RCR can yield higher prices, greater energy conservation, lower service quality and decreased cost-reducing innovation. The distortionary effects of earnings sharing on investment in cost-reducing

The functioning of energy markets is essential for global stability and is heavily influenced by geopolitical risks. Understanding these risks is critical for policymakers, market analysts, and nations. This study investigates the impact of geopolitical risks and their components on the futures markets of WTI crude oil and natural gas, utilizing time and frequency connectedness analysis along with

This paper provides new evidence on a long-standing question asked by Shiller (1997): why do we dislike inflation? I conducted two surveys on representative samples of the US population to elicit people's perceptions about the impacts of inflation and their reactions to it. The predominant reason for people's aversion to inflation is the widespread belief that it diminishes their buying power, as neither