Cross-country Data Research Articles

What Drives the Impact of Personalization in Western Europe?

ABSTRACT The personalisation of politics has been widely studied in the past few decades, especially in Western Europe, from several viewpoints, from the electoral to the party-centered one, from the governmental to the media-related one. Nonetheless, very few contributions have focused on the determinants of personalization, even if this latter process might be linked to more general – and much relevant –societal, institutional, or party-related phenomena. In this article, we aim to fill this gap by proposing a novel framework to explain the evolution of the impact of the personalization of politics – i.e., the fact that personalization has had a stronger or weaker influence – in Western Europe between the mid-1990s and the mid-2010s. We depart from cross-time and cross-country data collected in the first expert survey on the personalization of politics (the PoPES) and investigate the effect of three sets of possible determinants: societal changes (the decrease in the strength of the class cleavage or the diffusion of TV), institutional factors (the presence of presidential elections or personal-vote-driving electoral systems’ features), and party-related changes (the organizational decline of Western European parties). Regression analyses show that almost none of these determinants have influenced personalization's impact in Western Europe.

The power of oversight: institutional investors as moderators of the earnings quality-information asymmetry nexus in Europe

Purpose While there is some evidence of a relationship between earnings quality and information asymmetry, there is limited evidence on the moderating role of institutional investors in this relationship. To fill this gap, this study aims to examine how institutional ownership affects the relationship between earnings quality and information asymmetry, with a focus on the impact of different investment horizons. Design/methodology/approach This study uses a sample of listed European firms from 2000 to 2022. Earnings quality is measured using the McNichols (2002) modification of the Dechow and Dichev (2002) model. The analysis examines the moderating effect of institutional ownership on the relationship between earnings quality and information asymmetry. Findings This study finds that the relationship between earnings quality and information asymmetry is more pronounced in firms with a higher percentage of institutional ownership. This study finds that the monitoring role of long-term institutional investors is more effective than that of short-term institutional investors. This study also finds that the influence of institutional investors is more significant in firms with incentives to engage in earnings management. Practical implications The findings provide evidence suggesting that institutional investors are an important class of investors in terms of exercising an effective monitoring role to mitigate information asymmetry and demand higher earnings quality from their investee firms. These findings are informative for many financial reporting participants, including investors, analysts, regulators and managers. Originality/value This study extends the existing research examining the relationship between earnings quality and information asymmetry (e.g. Affleck-Graves et al., 2002; Ascioglu et al., 2012; Bhattacharya et al., 2013; Jayaraman, 2008; Liu and Elayan, 2015) by examining the moderating effect of institutional ownership on this relationship. It further contributes to the literature by distinguishing between long- and short-term institutional investors and their respective monitoring roles. In addition, this study broadens the geographical scope of the research by using cross-country data from European firms, providing evidence that country-specific factors do not uniformly affect the relationship between earnings quality and information asymmetry.

Adaptation of the Diet Quality Questionnaire as a global public good for use in 140 countries

BackgroundFood group consumption data is useful for measuring and monitoring diet quality. To collect valid data across contexts, consistent and rigorous adaptation of survey questions is needed. ObjectivesThe objective of this research is to adapt food group consumption survey questions for 140 countries, by identifying the most common (sentinel) food items in each food group using a structured, participatory process and global standards for classification. MethodsSurvey questions were adapted for 29 food groups of the Diet Quality Questionnaire (DQQ) and for additional questions for infant and young child feeding (IYCF) indicators. For each country, adaptation comprised: (1) review of existing questionnaires, dietary intake data, and other information to draft food lists; (2) key informant (KI) interviews with 5-12 experts to identify and prioritize sentinel items including terminology; (3) comparison of items across countries within the same region to identify discrepancies, and follow-up with KIs to resolve them. Results1,016 KIs contributed to the adapted DQQs for 140 countries and IYCF DQQs for 96 countries, amounting to approximately 9,550 hours of collective effort (68 person-hours/country on average) from 2020-2024. The process revealed numerous challenges and decisions to ensure consistent classification of items and valid question formulation. ConclusionCountry-specific questions adhering to global standards, and adapted through cumulative and iterative input of local experts, enable the collection of food group consumption data that is valid and comparable across time and geographies. The adapted survey questions have been implemented in the Demographic and Health Surveys (DHS) and Gallup World Poll in 94 countries, generating the first cross-country data on minimum dietary diversity (MDD) and other diet quality indicators. The finalized country-adapted DQQs and IYCF DQQs were translated to 143 national languages and are published online as a global public good for population-level diet quality measurement.

Air pollution and under-5 child mortality: linking satellite and IPUMS-DHS data across 41 countries in South Asia and Sub-Saharan Africa

BackgroundDespite progress, under-five mortality remains high, especially in Sub-Saharan Africa and South Asia, where around 13,400 children die daily. Environmental pollutants, including PM2.5 from outdoor air and household air pollution, significantly contribute to these preventable deaths.MethodsThis cross-country study combined satellite data with 113 surveys from the IPUMS-DHS dataset (1998–2019) to examine under-five child mortality in 41 developing countries. The integration of Global Annual Particulate Matter with a diameter of 2.5 micrometres or less (PM2.5) Grids from Socioeconomic Data and Applications Center (SEDAC) and geospatial data from the DHS Program enabled a focused analysis of the association between indoor and outdoor air pollution, particularly PM2.5, and child mortality rates using both logistic and multilevel logistic regression models, as well as estimating Population Attributable Fractions (PAF) to quantify the mortality burden attributable to these pollutants.ResultsOutdoor air pollution, measured by a one standard deviation increase in PM2.5, significantly increased the risk of child mortality (Odds Ratio [OR]: 1.14; 95% Confidence Interval [CI]: 1.10–1.18; p < 0.001). Moderate and high household air pollution exposure also heightened this risk, with increases of 37% (OR: 1.37; 95% CI: 1.24–1.53; p < 0.001) and 40% (OR: 1.40; 95% CI: 1.26–1.56; p < 0.001), respectively, compared to no exposure. Multilevel models (Models 5a and 10a) produced similar estimates to standard logistic regression, indicating robust associations. Additionally, Population Attributable Fraction analysis revealed that approximately 11.9% of under-five mortality could be prevented by reducing ambient PM2.5 exposure and 12.0% by mitigating household air pollution. The interaction between indoor and outdoor pollution revealed complex dynamics, with moderate and high household exposure associated with a reduction in mortality risk when combined with PM2.5. Geographical disparities were observed, with stronger correlations between outdoor air pollution and child mortality in Africa compared to Asia, and more pronounced impacts in low-income countries. However, household air pollution had stronger association with child mortality in Africa and lower- and middle-income countries.ConclusionsOur findings could serve as a guide for policy development aimed at reducing under-five mortality, ultimately contributing to the attainment of the Sustainable Development Goal (SDGs).

The Role of Entrepreneur’s Face Disclosure on Crowdfunding Success

The evaluation of crowdfunding campaigns varies from person to person; some investors are more interested in the project’s creativity, and others are more concerned with the profiles of entrepreneurs. The study investigated how entrepreneurs’ face disclosure influenced the success of crowdfunding. Secondary data were collected from multiple crowdfunding platforms for projects in Africa. That is, cross-country data from 54 African countries, to overcome data limitations from a single country. An econometrics analysis revealed that the facial disclosure of entrepreneurs increases the probability of crowdfunding success by 3%. Images, videos, and backers had a positive influence on the success of crowdfunding. On the contrary, the duration of the crowdfunding campaign was negatively associated with its success. To reduce the knowledge asymmetry between creators and backers, those prepared to start a crowdfunding project must provide as much information as possible to show their abilities. This study contributes to understanding the role of disclosing an entrepreneur’s profile on economic exchanges to the success of online crowdfunding.

Threats to personal control fuel similarity attraction

We propose that experiencing a lack of personal control will increase people's preferences for self-similar others and that this effect would be explained by a greater need for structure. Our hypotheses received support across 11 longitudinal, experimental, and archival studies composed of data from 60 countries (5 preregistered studies, N = 90,216). In an analysis of cross-country archival data, we found that respondents who indicated a lower sense of personal control were less likely to prefer to live with neighbors who had a different religion, race, or spoke a different language (Study 1). Study 2 found that participants who perceived lower (vs. higher) personal control indicated greater liking for coworkers who they perceived to be more self-similar across a wide range of characteristics (e.g., gender, personality). Studies 3a and 3b, two live-interaction experiments conducted in the United States and China, provided additional causal evidence for control-motivated similarity attraction. A causal experimental chain (Studies 4a to 4c) and a manipulation-of-mediation-as-a-moderator study (Study 5) provided evidence for the mediating effects of the need for structure. Study 6, a longitudinal study with Chinese employees, found that workers who reported perceiving a lower (vs. higher) sense of personal control preferred more self-similar coworkers, and this effect was mediated by a greater desire for structure. Finally, exploring downstream consequences, Studies 7a and 7b found that control-motivated similarity attraction was associated with a greater preference for homogenous (vs. diverse) groups. These findings highlight how the fundamental motive for personal control shapes the structure of social life.

Income convergence in Central and Eastern Europe: Evidence from cross-country panel data analysis

Income convergence in Central and Eastern Europe: Evidence from cross-country panel data analysis

A curse on leisure? Resource rents and labor supply

An extensive literature establishes the resource curse, the paradoxical tendency of societies with more natural resources to have worse economic outcomes. Our formal model extends the resource curse literature in several ways. First, there may exist a general tendency for resources to crowd out private production while still increasing consumption and welfare. We establish this relation without assuming increasing returns to scale in the productive private sector, as is common in the literature. We also propose a novel resource curse to leisure time. Just as resources ‘should’ increase income—their failure to do so establishing the traditional curse—they should also allow more leisure. Recent cross-country data suggest the opposite is true. We offer initial steps toward explaining the discrepancy: resources can turn from blessing to curse on both leisure and income under flawed institutions, particularly when policymakers favor employment over leisure. Direct (re)distribution of resource wealth rather than expanded government employment presents a policy solution.

Societal Trust and Modified Audit Opinions: International Evidence

ABSTRACT This study examines how societal trust influences auditors’ likelihood of issuing modified audit opinions. Analyzing cross-country data, we find that auditors in countries with high levels of societal trust are less prone to issue modified audit opinions. Specifically, our findings indicate that this effect is moderated by formal audit-related institutions, such as heightened auditor liabilities, the presence of Public Company Accounting Oversight Board (PCAOB) inspections, and a more advanced audit profession. These results are consistent even when applying a difference-in-differences (DiD) approach. Further analysis shows that the moderating impact of formal institutions is more pronounced for clients operating domestically, clients of non-Big N auditors, and auditors with long tenure. Overall, our findings highlight societal trust as a significant informal institution influencing auditor opinions, with a complex interplay between this trust and formal audit-related institutions. The study offers important implications for policy, practice, and future research. Data Availability: Data are available from the public sources cited in the text. JEL Classifications: M40; M41.

How does participation in Global Value Chains affect embodied carbon emissions in international trade? New insights from cross-country panel data analysis.

Global Value Chains (GVCs) significantly influence international trade and environmental outcomes. Despite the economic benefits of GVCs, their impact on the environment remains under-examined. This study analyzes the effects of GVC participation (considering forward and backward positions) on total carbon emissions embodied in exports (TEEE) and imports (TEEI). Utilizing panel data from 65 economies spanning 1995 to 2018, we apply input-output matrices and the system generalized method of moments (GMM-SYS) approach. Our results indicate that GVC participation generally is associated with reductions in TEEI and increases in TEEE, with backward participation exerting a more substantial impact. Furthermore, we observed asymmetrical impacts of GVC participation between developed and developing countries. Developed nations tend to reap greater benefits from GVC in terms of diminished CO2 emissions associated with imports, as well as notable CO2 reductions in both exports and imports, particularly when forward participation is the focal point. Conversely, developing countries grapple with heightened environmental burdens stemming from their engagement in backward linkages.

Impact of digital divide on energy poverty across the globe: The mediating role of income inequality

Energy poverty is an important reality facing the whole world, and the rapid development of digital technology has great potential in eradicating poverty. However, the differences in the level of information development have led to the existence of the digital divide within countries. In this context, this paper explores whether and how the digital divide affects energy poverty from a global perspective. Based on cross-country panel data, this study focuses on the effect and asymmetry of the digital divide on energy poverty. The results show that the digital divide hinders the reduction of energy poverty and manifests itself in a Matthew effect that makes the energy poor poorer. Second, the heterogeneity analysis based on income level and rural-urban areas find that the digital divide has a greater negative impact on energy poverty in low-income countries and rural areas. Finally, the mechanism analysis reveals that the digital divide exacerbates energy poverty mainly by increasing income inequality. Therefore, there is a greater need to focus on the efficiency, equity and inclusive development of the digital economy in the process of its globalization. The findings can also provide an empirical basis for policy design to bridge the digital divide and alleviate energy poverty.

The Neighborhood Effects of National Climate Legislation: Learning or Competition?

This study aims to explore the spatial spillover effects of national climate legislation on carbon emission reduction by using cross-country panel data from 2002 to 2021. The results show the following: First, the estimation outcomes confirm the presence of spatial correlations between carbon dioxide emissions and climate legislation across countries. Second, the study shows that the spillover effect of climate legislation on CO2 emissions is significantly negative. Hence, the outcomes indicate that being surrounded by nations with more climate laws positively impacts environmental quality. Third, regarding direct impact and spillover effects, the carbon reduction impact of parliamentary legislative acts is stronger than that of governmental executive orders. Finally, even with the spillover effect, we uncover robust evidence supporting an inverted-U-shaped EKC linkage between carbon emissions and GDP per capita, even under the spatial spillover effect.

Does Geopolitical Risk Endanger Energy Resilience? Empirical Evidence from Cross-Country Data

Does Geopolitical Risk Endanger Energy Resilience? Empirical Evidence from Cross-Country Data

Cooking readiness in stressful times: Navigating food choices for a healthier future

Food choice is a complex function of preferences and combines a myriad of food-related factors, such as biological, economic, physical, social, and psychological determinants. People's food choices directly affect their health and can have both positive and negative outcomes. For instance, the pandemic may have presented an opportunity to cook more at home, eventually resulting in dietary benefits, health improvements, and reduced stress. Conversely, adverse behavioral, psychological, and physical outcomes, such as overeating, have also been associated with stressful situations. Therefore, the aim of this study is twofold: first, to propose “cooking readiness” as a higher-order construct, in which ‘food literacy’ and ‘cooking skills’ correspond to the capability, ‘cooking attitudes’ reflect the motivation, and the variable ‘COVID-19 restrictions’ represent the opportunity for consumers to cook and consume healthier food at home. Furthermore, as the pandemic scenario was imposed and caused changes in mental health and emotional mood, the second objective is to explore the relationship between cooking readiness and stress levels in consumers' choices for nutritionally recommended (or non-recommended) food. Cross-country data (Brazil, Denmark) from 1074 consumers was analyzed using structural equation modeling. This study confirms cooking readiness as a higher-order construct, integrating food literacy, cooking skills, and cooking attitudes with pandemic-induced opportunities. Cooking readiness is crucial in promoting healthier eating habits, particularly in Brazil. The stronger tradition of healthier eating in Denmark may mitigate the impact of cooking readiness on reducing non-recommended food consumption. The varying effects of stress on food choices between the two countries underscore the need for tailored public health strategies that consider cultural differences and existing dietary habits. Promoting cooking skills and food literacy, particularly in times of crisis, can be instrumental in supporting healthier food choices and improving public health.

Policy spillovers from climate actions to energy poverty: international evidence

Policies to address climate change have been implemented worldwide in recent years. The core of these policies is to control greenhouse gas (GHG) emissions, which primarily stem from the consumption of fossil fuels. Consequently, the implementation of climate policies can affect other energy-related issues, such as energy poverty, a critical element of the UN Sustainable Development Goals (SDGs). This paper uses cross-country data from 2000 to 2020 to study the possible policy spillovers from climate actions to energy poverty. We show that a spillover effect does exist. In other words, a higher number of climate policies is associated with a lower level of energy poverty. The spillover is realized through improvements in energy efficiency, the promotion of renewable energy, and support for innovations. In addition, legislative policies are found to have stronger spillover effects. While the overall policy effects are positive for executive policies, regulations tend to have negative impacts on energy development. There is also evidence demonstrating heterogeneous effects between long-term and short-term policies, and between developed and developing countries. Discovering this spillover effect gives extra motivation for countries to adopt climate policies and actively seek synergies in achieving broader sustainable goals.

Aid for trade and value chain cooperation: evidence from China

ABSTRACT The impact of Aid for Trade (AfT) on the development of global value chains (GVCs) has attracted much attention in recent years. Based on the cross-country panel data of China’s AfT and value chain cooperation (VCC) between China and recipient countries from 2000 to 2016, this paper examines the impact of China’s AfT on VCC between China and recipient countries. The study found that China’s AfT can significantly increase the degree of VCC between China and the recipient countries. Further mechanism tests show that China’s AfT has mainly promoted VCC between China and recipient countries through two channels: improving their infrastructure and reducing trade costs. The research shows that AfT can effectively promote win-win cooperation and common development between donor and recipient countries. In addition, from the perspective of GVCs, aid is effective for developing recipient countries.

Corruption and supply-side economics

This paper develops a model of the effects of tax rates chosen optimally to promote growth and public welfare in the face of corruption. For a given level of corruption, public spending can promote growth but high tax rates in pursuit of various social goals have potentially significant supply-side economics effects that reduce income. Governments faced with rampant corruption optimally choose low tax rates, thus associating poor countries with low tax rates, and confounding the observed relation between tax rates and income. The model is estimated using cross-country data on income, tax rates, and corruption and is shown to match key features of the data. The chief contribution of this paper is to stress the importance of jointly considering the effects of corruption and taxation in documenting evidence in support of supply-side economics.

Estimating the elasticity of substitution: An index-number approach

This paper presents a new way to estimate the constant elasticity of substitution ( σ ) . We show that the link between σ and Divisia index numbers gives rise to a revealing way to obtain preliminary estimates of σ . This approach, which is related to stochastic index numbers, is illustrated with time-series and cross-country data. Using consumption data for 12 commodities over time from 23 European countries, we obtain 400 + estimates of σ , which mostly lie between 0 and 1. The cross-country estimates are broadly similar. Extensions of the approach to deal with endogenous prices and non-homothetic demand are also considered.

Unlocking the nexus: exploring the mediating and moderating dynamics of risk factors in economic literacy for organizational performance - A systematic review

PurposeRecognizing economic literacy as a vital form of intellectual capital provides essential tools to mitigate the adverse impact of risk factors on business organizations' performance. This recognition serves as a strong rationale for prioritizing economic literacy as a strategic asset in navigating the complexities of risk factors for sustained organizational performance. To bridge this gap, this study examines the role of risk factors in the economic literacy of an organization and how they affect organizational performance.Design/methodology/approachThis exploratory study employed a qualitative research method, utilizing a systematic review with the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) approach to identify gaps. A comprehensive search across databases was conducted using keywords related to risks, economic literacy and organizational performance. In total, 32 articles were meticulously analyzed, focusing on methodology, results and discussion sections to address research questions.FindingsThis study highlights the impact of risk factors on economic literacy and organizational performance, focusing on risk-taking, attitude, enterprise risk management (ERM), financial literacy and organizational performance. It reveals that possessing economic literacy can mitigate financial risks in corporations by helping entrepreneurs identify business opportunities and pitfalls, enabling informed and prudent financial decision-making. Conflicting findings challenge existing knowledge on the link between risk factors and financial literacy, particularly in new product development decisions, highlighting the need for further investigation into environmental factors shaping this connection.Originality/valueThe study developed a conceptual model that explains the interaction among economic literacy, risk factor and organization performance, which has implications for the development of the required intellectual capital to mitigate the impact of risk factors. Also, the study identified diverse conceptual, methodological and geographical gaps that will provide direction for future studies. Future research could delve into firm-level or cross-country data via surveys, interviews or focus groups, enriching the research's robustness and depth for nuanced insights into the investigated relationships.

Carbon pricing policies and renewable energy development: Analysis based on cross-country panel data

While studies have theoretically discussed the impact of carbon pricing on renewable energy, the practical implementation and effectiveness of these policies remain uncertain. This study empirically examines the role of carbon emissions trading and carbon tax in global renewable energy development using panel data from 196 countries and regions and employing the staggered difference-in-differences (DID) model and Bacon decomposition method. The results suggest that: (1) From the perspective of policy shocks, carbon trading has increased non-hydro renewable electricity generation by 73.32%, while carbon tax has increased it by 31.79%. This indicates that the overall impact of carbon trading on renewable energy is greater than that of carbon tax. However, the elasticity coefficients of renewable energy to carbon trading prices and carbon tax rates are 0.1801 and 0.1845, respectively, suggesting a slightly greater marginal effect of carbon tax on renewable energy compared to carbon trading. (2) Both carbon tax and carbon trading have mitigated the growth of fossil electricity and encouraged public investment in renewable energy, thereby fostering its development. (3) The influence of carbon pricing on renewable energy varies by income level; notably, the implementation of these policies in high-income countries has diminished their promotional effect on renewable energy. (4) The contribution of technological innovation to renewable energy development is smaller than that of policies including carbon trading and carbon tax, indicating that renewable energy development during the sample period was predominantly driven by policy measures. The findings indicate that the application of carbon pricing policies should be further promoted to accelerate the energy mix transition.