Economic Policy Research Articles

Making ‘the people’ behave: the economic policies of the Israeli anti-populist ‘change’ coalition

ABSTRACT Populism’s recent ascent to power in many countries has fueled the discussion of anti-populist responses. This paper investigates anti-populism’s implications for economic policy and policymaking. Anti-populism has been shown to manifest alongside and through both neoliberalism and technocracy; this paper investigates how anti-populism shapes the manifestation of neoliberalism and technocracy, and how they can be in turn employed to strengthen anti-populist logic. I consider the case of Israel’s anti-populist coalition (2021–2022), which replaced the populist former prime minister Benjamin Netanyahu. After reviewing the existing literature on anti-populism, I discuss behaviour modification taxation’s role in and importance for anti-populist policy agendas. I analyse the discourse surrounding the implementation of behaviour modification taxation and its implications in Israel, showing that anti-populists can use such policies to not only hurt populist voters but also replace ‘the people’ in the political imagination with rational, incentive-driven individuals.

Retraction Note: Assessing the nexus between COVID-19 pandemic-driven economic crisis and economic policy: lesson learned and challenges.

Retraction Note: Assessing the nexus between COVID-19 pandemic-driven economic crisis and economic policy: lesson learned and challenges.

Climate change and economic growth: Evidence for European countries

AbstractClimate change may affect economies and the welfare of people around the world. To design appropriate policy responses, the economic effects of climate change should be known. One strand in the literature empirically estimates the growth effects of climatic variations. However, those studies often neglect economic variables that have proven to be robust in explaining economic growth. Further, often they fail to check for the robustness of their results. The main aim of this study is to detect whether there exists a statistically significant robust relation between climate change and economic growth by estimating different model specifications. To do so panel estimation techniques for 24 European economies for the period from 2002 to 2019 are applied whereby panel fixed effects estimations and dynamic Generalized Methods of Moments estimations are resorted to. No statistically significant robust relationship between the temperature change and economic growth is found just as for precipitation that does not exert a significant effect on growth. As regards the institutional and macroeconomic control variables the rule of law, the fiscal variable, and the output gap are statistically significant and robust. It is argued that far‐reaching policy measures, such as the net zero goal of the European Union, should be given only based on robust results. Otherwise, economic policy may turn out to be inadequate and can lead to welfare losses. Hence, the conclusion is that the net zero goal of the European Green Deal is to be seen skeptical.

Uncertainties of Economic Policy and Government Management Stability Played Important Roles in Increasing Suicides in Japan from 2009 to 2023

Standardized suicide mortality rates per 100,000 (SMRs) in Japan consistently decreased from 2009 to 2019 but increased from 2020. The causes of these temporal SMR fluctuations remain to be clarified. Therefore, this study was conducted to identify the causalities underlying the recently transformed fluctuations of suicide mortality in Japan. Monthly suicide numbers disaggregated by sex and social standing, and political uncertainty indices, such as economic policy uncertainty (EPU) and government management instability (AENROP), were obtained from Japanese government databases. Interrupted time-series analysis was performed to analyze temporal fluctuations of SMRs disaggregated by sex/social standing associated with the three General Principles of Suicide Prevention Policy (GPSPP) periods and the COVID-19 pandemic. Panel data and vector autoregressive analyses were conducted to investigate causalities from political uncertainties to SMRs. During the first and second GPSPPs (2009–2017), all SMRs disaggregated by sex and social standing decreased, whereas those of unemployed females did not change. During the third GPSPP (2017–2022), decreasing trends in all SMRs were attenuated compared to previous periods. All female SMRs, except unemployed females, showed sharp increases synchronized with the pandemic outbreak. No male SMRs showed sharply increasing at the pandemic outbreak. SMRs of unemployed males/females drastically increased in the later periods of the pandemic, while SMRs of employed and multiple-person/single-person household males did not increase during the pandemic. SMR of unemployed males was positively related to AENROP but not EPU. Other male SMRs were positively related to EPU/AENROP. On the contrary, not all female SMRs were related to EPU/AENROP. Increasing AENROP generally contributed to increasing male SMRs throughout the observation period; however, susceptibility to AENROP and/or political information might have unexpectedly contributed to suppressing the sharply increasing male SMRs induced by large-scale social shocks (the COVID-19 pandemic outbreak) in Japan.

Climate change undermines seafood micronutrient supply from wild-capture fisheries in Southeast Asia and Pacific Island countries

Marine ecosystem functions are affected by climate change impacts such as ocean warming, deoxygenation and acidification. These impacts drive changes in distributions and body size of fish species and directly affect fisheries. Wild-capture fisheries are crucial for providing nutrients, livelihoods, and employment in tropical Southeast Asia and Pacific Island countries, where coastal communities are highly vulnerable to climate change. We examined the impacts of climate change on fish stocks and nutrient availability of seven key micronutrients (calcium, Omega-3 fatty acids, iodine, iron, vitamin A, vitamin B12 and zinc) in Southeast Asia, Pacific Islands, and Oceania (Australia and New Zealand). We combined micronutrient demands by local human populations with Sea Around Us reconstructed catch time series and catch projections from a dynamic bioclimate envelope model for the 21st century. The model predicted a decline in the Maximum Catch Potential (MCP) within Exclusive Economic Zones for Oceania, Pacific Islands, and Southeast Asian countries. Under the ‘strong mitigation’ scenario, catch potential reductions ranged from a decline of 54–66 % in Oceania, 58–92 % in Pacific Islands, and 65–86 % in Southeast Asia by the mid to the end of the 21st century relative to the historical period, respectively. Under the ‘no-mitigation’ climate scenario, reductions were more severe, with a decline of 55–70 % in Oceania, 66–92 % in Pacific Islands, and 70–86 % in Southeast Asia for the same time periods. Our findings indicate that Australia and New Zealand are unlikely to meet the recommended nutrient intake demand for most micronutrients through their fisheries (not considering trade or aquaculture production), except for iodine and vitamin B12. Pacific Island countries will likely follow the same pattern while Southeast Asia is expected to face worsening deficits, except for iodine and vitamin B12. This study highlights the importance of incorporating nutritional considerations of seafood into national food, trade and economic policies.

Financing mode decision of characteristic tourist town based on improved G1 and Z-number-TOPSIS: the Chinese case

PurposeThe objective is to address financing challenges with an innovative technical approach and provide financial support to facilitate the sustainable development of characteristic tourist towns.Design/methodology/approachIn this study, a novel decision model is proposed, which utilizes the CRITIC improved G1 weighting method to analyze financing factors and applies GRA to enhance the TOPSIS model under a Z-Number fuzzy environment. Finally, sensitivity analysis and comparative assessment were conducted to validate the findings and the model.FindingsThe findings indicate that equity financing is the optimal mode of financing for characteristic tourist towns, with bond financing serving as a viable alternative. Key factors influencing financing include economic benefit, social benefit and policy risk. Managers should carefully consider these factors when selecting financing methods in order to enhance efficiency and mitigate risks.Originality/valueAs a new business model and value creation method of cultural and tourism integration, the financing decision of a characteristic tourism town has always been the key to the overall promotion and operation. The research constructs a financing index system for characteristic tourism towns based on benefit and risk considerations, using the hot spring town in Anhui Province, China, as a case study to evaluate eight financing models.

Innovation in renewable energy in Morocco: economic opportunities and policy measures

Our study examines the analysis of the determinants of eco-innovation in renewable energy in Morocco. To this end, we have tried to conceptually and theoretically understand eco-innovation, its emergence and its affirmation in the field of renewable energies. Using hypothetical-deductive reasoning, we made a quantitative assessment of the main economic and policy measures related to renewable energy and eco-innovation. The results show that "the propensity to collaborate with third countries in environmental technologies", as well as "energy depletion", stimulate innovation in renewable energy, while "revenues generated from environmental taxes" appear to have a deterrent effect on patenting. In sum, the key insights from the theoretical and empirical exploration resulting from our work highlight the factors driving innovation in renewable energy and prompting Moroccan policymakers to put in place the necessary measures to further support the energy transition.

Research on the Driving Factors and Policy Guidance for a Reduction in Electricity Consumption by Urban Residents

The urgency of mitigating climate change and the challenges it poses to ecosystems and human systems are highlighted in the Intergovernmental Panel on Climate Change’s (IPCC) Sixth Assessment Report (AR6). In order to achieve sustainable development, it is imperative to adopt a series of adaptive measures to enhance the resilience of various sectors to climate change and reduce greenhouse gas emissions. This article analyzes the driving mechanism behind the reduction in electricity consumption by urban residents based on 302 valid questionnaires from 18 communities in nine districts in B City. Using a method that combines qualitative and empirical research, the study proposes policy recommendations aimed at guiding urban residents toward reducing their electricity consumption. These recommendations serve as a policy reference for cities striving to achieve sustainability and low-carbon targets. The primary innovations and conclusions of the study are as follows: (1) this study summarizes the primary factors and processes influencing the reduction in electricity consumption among urban residents, examined from the following three perspectives: residents’ characteristics, psychological understanding, and external environment. (2) On the basis of the research data, empirical analysis and hypothesis testing are conducted using a variety of mathematical and statistical methods. The results indicate significant differences in the electricity consumption reduction behavior of heterogeneous urban residents in both public and private areas. Subjective norms, perceived behavioral control, and knowledge of electricity conservation have significant direct influences on residents’ willingness to reduce their electricity consumption. Among these factors, subjective norms have the most significant impact, while the impact of attitude is negligible. Economic incentive policies have a significant positive regulatory effect on the relationship between “willingness (intention)” and “private area electricity consumption reduction behavior”.

Economic Policy Uncertainty, Financial Reporting Quality, and Audit Fees: Examining the Role of Industry Characteristics and International Accounting Standards

Economic Policy Uncertainty, Financial Reporting Quality, and Audit Fees: Examining the Role of Industry Characteristics and International Accounting Standards

Technological progress in central and eastern Europe: Digitalization and business innovation leaders and outsiders

Innovation and the associated digitization of the global economy are becoming the foundation of competitiveness and development. This state of affairs affects all regions and countries of the world, especially enterprises, which need to adapt to stay in the market. The situation is particularly challenging in developing countries, whose economic potential is lower than that of developed economies. Addressing this issue, the article presents the results of a study on the degree of digitization and innovation of enterprises in the countries of Central and Eastern Europe (CEE), which are among the group of developing economies. The research included independent assessments of innovation and digitization in these countries, as well as a combined assessment of both processes. It was based on a set of 17 selected indicators characterizing the processes of digitization (9) and innovation (8). The CRITIC method was used to calculate the weights of these indicators, and the TOPSIS method was used to determine the digitization and innovation indices, as well as the final digitization and innovation index. Using the results of this analysis, relationships were determined between the digitization and innovation indices, as well as between the final index (innovation and digitization) and selected economic parameters of the countries under study (CEE). The results show that companies in the studied countries are highly differentiated in terms of their digitization and innovation. The best results in both dimensions were obtained by the Czech Republic and Slovenia, while the weakest were by Latvia and Romania. In terms of business innovation, the Czech Republic and Slovenia are the best performers, while Latvia and Romania are the weakest. On the other hand, Slovenia and the Czech Republic are the leaders in business digitization, while Romania and Bulgaria are the worst performers. The remaining countries fell within the area of average development in these dimensions. The obtained results should be a valuable source of knowledge for assessing the measures taken to date in CEE countries in the field of innovation and digitization. It would also be advisable to use them in the development and implementation of economic policy and the targeting of investment activities in the EU. A major opportunity, especially for improving the innovativeness of CEE countries, could be the Open Innovation concept. Its wider implementation in these countries should improve their performance in this regard.

Bank loan maturity and corporate investment

This study analyzes bank loan maturity and corporate investment linkage by using novel firm-level data covering the universe of all incorporated firms in Türkiye over the last decade. The results of the panel regression model with multi-dimensional fixed effects reveal that loan maturity has a significant positive association with investment, indicating that longer debt maturity fosters corporate investment. The results reveal that the positive linkage between longer debt maturity and investment is more pronounced for small and medium-sized enterprises (SMEs). This is also the case for young firms and firms with high growth opportunities. Considering the evidence provided in the literature that bank lending conditions, including maturity structure, are highly cyclical and vulnerable to financial conditions and economic policy uncertainties, our findings highlight the importance of reducing the policy uncertainties as well as the importance of policies that make equity financing more attractive and deepen the capital markets.

Sustainability Implications of Commodity Price Shocks and Commodity Dependence in Selected Sub-Saharan Countries

Sub-Saharan economies often rely heavily on a narrow range of commodities, making them particularly vulnerable to price fluctuations in global markets. This volatility predisposes these countries to economic instability, threatening short-term growth and long-term development goals. As a result, this study examines the sustainability implications of commodity price volatility and commodity dependence for 31 Sub-Saharan African countries from 2000 to 2023. Eleven agricultural commodity-dependent countries, six energy commodity-dependent countries, and fourteen mineral and metal ore-dependent countries were chosen. This study uses balanced annual panel data from World Development Indicators, World Bank Commodity Price Data, and Federal Reserve Bank Data. The data were analyzed using the VECM, and this study’s findings were threefold and unanimous for all three categories of commodities (agricultural, energy and mineral, and metal ore). First, commodity dependence is positively related to economic growth, suggesting that higher commodity prices benefit the economy in the long run. Second, commodity price volatility is negatively related to economic growth, indicating adverse impacts on economic stability in the long run. Third, commodity dependence is positively related to commodity price volatility in the long run. By analyzing the interconnectedness of these factors, this study underscores the need for diversified economic policies and sustainable practices to reduce vulnerability and promote sustainable development in the region. The findings highlight the critical role of strategic resource management and policy interventions in achieving economic stability and ensuring the well-being of future generations.

A look at the treatment of the contents of Agroecology as a component of agricultural education in Biology 1

<p>Currently, the study of Agroecology as a component of agricultural education in the subject of Biology 1 and the treatment of its contents at the basic secondary educational level is of great importance. Agricultural education is of vital importance to achieve sustainable development, adopting environmental, economic and social policies based on agroecological principles related to food production and local development from the Cuban educational system. In this sense, it is necessary for teachers to promote and encourage students towards the use of agroecological practices to contribute to the education of current and future generations in love and respect for rurality and for the school to become an extensionist of the agrarian culture. The objective of this article is: to systematize the theoretical foundations of Agroecology as a component of agricultural education and the treatment of its contents, promoting agroecological practices on the basis of food sovereignty and security. To achieve this objective, theoretical (analytical-synthetic; inductive-deductive) and empirical (observation; documentary analysis and interview) methods were used. The importance of this work lies in seventh grade students being able to develop agroecological practices in school, family and community with a view to finding possible solutions to the problems associated with production processes to support family food security.<strong></strong></p>

Tropical forest cover, oil palm plantations, and precipitation drive flooding events in Aceh, Indonesia, and hit the poorest people hardest.

Tropical forest loss and degradation in watersheds disrupt essential ecosystem services that regulate water flow, often causing devastating floods that impact agricultural productivity and impoverish downstream communities. Despite its importance, evaluations of the interconnectedness between the depletion of hydrological services and flooding lack an evidence-base in the Global South and, therefore, have little influence on policy dialogue. In this study, we focus on the forest-rich province of Aceh, Indonesia, using local and national newspaper articles to compile information on flood events between 2011 and 2018. We explored spatio-temporal flood patterns with a combination of climatic, topographic, and environmental factors. We compiled 2,029 reported flood events in mainland Aceh located in 20 of the 21 districts/cities, with a disproportionately high occurrence (71%) in four districts. The trend of flood events exhibited an increasing pattern between 2011 and 2018. Over this period, floods displaced ~158,000 people and damaged ~24,500 houses and ~11,500 ha of agricultural land. Our generalized linear mixed-effect model found that reported flood events were more likely to occur in areas with lower tree cover, more oil palm plantations, and higher precipitation. Areas with a lower human population density and higher poverty rates were found to be most susceptible to flooding events. Our findings highlight the critical link between forest preservation and flood prevention, and the irreplaceable role that forests play in ensuring the well-being of local communities, especially those affected by poverty. Our study underscores the importance of considering these interconnected factors in future land use and economic development plans and policies.

BRICS Expansion: A Geopolitical Triumph of Partner Countries

The BRICS organization is making significant and consistent progress in its development. The 15th BRICS Summit was held in Johannesburg from 22 to 24 August 2023. This summit is a global event that sets the trends and guiding principles for future economic policies. Four of the five BRICS member countries are among the ten largest countries in the world in terms of GDP, territory and population. According to open sources, the total area of the BRICS countries is 39.7 million square kilometers (26.7% of the world’s land surface), and the population is estimated at3.2 billion people (41.5% of the world’s population). The economic potential of BRICS, as the leading economic organization in the world, is more than significant. These competitive advantages in the economy and financial sphere represent an enormous resource of industrial, human and technological potential that can serve as the locomotive of the global economy. Following the conclusion of the above summit, the leaders of the BRICS countries adopted the final “Johannesburg-2” declaration, which noted the advisability of using their countries’ respective national currencies in international trade and collectively resolving problems related to international debt. In addition, decisions were made to expand BRICS and admit new member states to the organization. BRICS has established itself as a prominent entity on the global stage, whose influence in world affairs is consistently strengthening. The strategic course of their unification is aimed at planning for the future and meets the interests of the leading nations of the international community, the so-called world majority. By acting cohesively on the principles of equality, partnership support and mutual consideration, the BRICS member countries are effectively addressing the most pressing issues on the global and regional agenda. The BRICS member states are strongly in favor of the establishment of a multipolar world order that is based on international law and is fair. At the same time, they are committed to adhering to the fundamental principles of the United Nations Charter. BRICS is the most important guarantor of the legal foundations of international relations and a fair world order in general. The recent expansion of the BRICS group is a significant event that enables the group to have an even greater influence in international affairs. The presented article analyzes the features of the recent expansion of BRICS and its impact on world geopolitics, taking into account the admission of new states to the organization. The distinctive features of the BRICS group activities and its role in relation to the G7 and G20 are revealed. The trends in the transition to a multipolar world are discussed. Furthermore, issues of political and economic cooperation between the different BRICS member countries are analyzed.

Optimal unilateral climate policy with carbon leakage at the extensive and the intensive margins

AbstractWe derive the optimal unilateral climate policy for an open economy with a domestic emissions target and aversion to carbon leakage, distinguishing between leakage at the extensive margin, where domestic firms relocate to foreign countries, and leakage at the intensive margin, where domestic firms lose world market shares. Implementing the optimal allocation requires several instruments including a lump‐sum location subsidy to counter leakage at the extensive margin. Simulations indicate substantial leakage at the extensive margin and a social welfare gain of around 0.3 percent of national income from our optimal leakage‐adjusted tax‐subsidy scheme compared to uniform carbon taxation.

The Lessons from Sanctions on Iran and Their Impacts on the Development of Civil Aviation Understanding and Iranian Airlines

After the Islamic Revolution, Iran lived through many hard times not only because of its economic and financial resources such as oil and petroleum but also because of its historical, social, supremacy and leadership of some other Islamic countries and communities. Essentially, it has tried to defend its position for many years without sacrificing its Idiosyncratic Islamic governance structure within the world context or other Islamic countries, for these reasons, it has witnessed a lot of economic and financial sanctions or bans. Although Iran has a lot of highly qualified academicians and a workforce in the science of aviation, its civil aviation management structure and related activities, such as airline management, are very far from the average of the world depending on these financial and economic sanctions and bans by international orders. This situation is subjected to this research as a gap. This paper will analyse the civil aviation and air carrier industry of Iran under the impacts of these economic and financial bans and sanctions regarding four dimensions: Maintenance, Training and licensing, corporal development, and relationships with manufacturers. Essentially, at the beginning of the new age, in terms of international politics and conflicts in every continent of the world, new sanctions and bans are on the trouble agenda of world civil aviation agencies and institutions because of their highly political structure, and these bans and sanctions carry generally economic and financial identities, although they have international policy claims. There are a lot of possibilities on the desks of the civil aviation authorities for the burdens of these sanctions and bans and their sustainability impacts on civil aviation. Moving from the situation of Iran, the correct courses and necessary economic and financial policies will be suggested in this new world context and understanding.

Brexit and the London housing market: An empirical contribution

This study aims to analyse the impact of Brexit on London’s housing market, exploring socio-economic and regional disparities. By examining property transaction data from 2012 to 2022, the research seeks to understand how Brexit has influenced real housing prices across different boroughs of London. The methodology involves aggregating transaction data from the Her Majesty (HM) Price Paid database and normalizing prices using the Consumer Price Index (CPI) to obtain real price variations. These data were segmented into three distinct periods: pre-Brexit (2012–2016), post-plebiscite Brexit (2016–2019), and post-implementation Brexit (2020–2022). Spatial analysis was conducted using the software Quantum Geographic Information System (QGIS), transforming point data (postcodes) into polygonal data (wards) for better visualization and comparison. The findings reveal significant socio-economic impacts, with traditionally affluent areas such as Westminster, Kensington, and Chelsea experiencing notable declines in real housing prices. Conversely, certain outer boroughs like Newham and Barnet showed resilience, with positive real price variations despite decreased sales. This geographical disparity underscores the uneven distribution of Brexit’s economic consequences, highlighting the critical role of localized economic policies and development projects in mitigating adverse effects. The results confirm existing literature on the polarization and regional inequalities exacerbated by Brexit while providing new insights into the complex interplay of local and global factors affecting housing markets. The findings emphasize the need for targeted policy interventions to address the diverse challenges posed by Brexit, ensuring both affluent and disadvantaged areas receive adequate support. This research is crucial for informing public policy, urban planning, and housing market strategies in a post-Brexit context, promoting equitable and sustainable development across London.

How to make sense of the crisis of the international economic system: the emergence of the Group of Thirty and the debate on inflation (1978–81)

ABSTRACT This article explores the early history of the Group of Thirty (G30, 1978), which is an economic policy body committed to the analysis and spread of policy prescriptions as regards the evolution of the international economic and monetary system after the end of Bretton Woods. In so doing, this work represents the first critical recounting of the G30ʹs early experience from a historiographic perspective. The article frames the organizational roots and the early history of the G30 within the wider economic and political context that marked the transformations of the international system between the late 1970s and the early 1980s. Moreover, this article deals with one of the most challenging policy issues that characterized the international economic policymaking at that time: the spread of high inflation rates. The emergence of sustained inflation trends in Western Europe will receive specific attention. Finally, the article discusses the relevance that social and political concerns acquired in the very conceptualization of anti-inflationary and market-oriented measures, as these were promoted by the G30ʹs affiliates between the late 1970s and the early 1980s.

The Establishment of Economic Dirigism In Maritime Trade of Turkey, 1923–1950

ABSTRACT In the aftermath of the establishment of the republican regime in Turkey in 1923, the policy of economic dirigisme began to dominate the markets step by step. This article aims to analyse the effects of economic dirigisme on maritime trade for a quarter of a century and furnishes an illustrative case delineating how the government’s favoured economic policy attenuated the developmental prospects of maritime commerce. Throughout this temporal span, endeavours advocating a laissez-faire market policy found themselves systematically marginalized, as the juggernaut of economic dirigisme unfolded. The corollary of this policy was a precipitous decline in the operational efficiency of maritime trade. The proclivity for deploying antiquated ships escalated the inherent risks of maritime accidents. Legislative initiatives, exemplified by the promulgation of cabotage laws and the imposition of onerous taxes, erected formidable impediments that curtailed the operability of foreign-flagged vessels in Turkish ports. Concurrently, the waning trade potential cast a pall over the developmental trajectory of Anatolian cities.