Empirical Link Research Articles

Local government expenditure and Quality of Life in Finnish municipalities

This study investigates whether local government expenditure correlate with the Quality of Life (QoL) of the local population and whether high public expenditure are indicative of high or low QoL. Data, including information on public expenditure and objective QoL indicators, were gathered for Finnish municipalities from several existing databases and cover a period of 2015–2019. A composite indicator was constructed to measure municipal QoL performance. The results indicate that there is a clear correlation between public expenditure and QoL: the higher the public expenditure the lower the QoL of the local population. This is due to a greater demand for public goods in municipalities that have low QoL levels. Further, QoL and public expenditure levels are a fairly constant phenomenon. There was no evidence that changes in public expenditure and QoL would affect each other in the short term. The added value of this paper is that it fills parts of the research gap concerning our knowledge on the empirical links between public expenditure and QoL at the local level.

The Impact of Digital Transformation on Service Models and Employee Skill Requirements in Taiwan's Real Estate Brokerage Industry

This paper investigates how digital transformation impacts service delivery models and employee skill requirements in Taiwan's real estate brokerage industry. Through a multiple-case comparison approach, data was collected from 200 participants across real estate firms to examine organizational adaptation to technological change. The research employed structural equation modeling and hierarchical linear modeling to analyze relationships between compensation satisfaction (β = 0.45, p < 0.001), digital competency levels, and internal case circulation patterns. Results demonstrate that digital technologies significantly reshape brokerage operations, with digitalized companies achieving 32% higher client acquisition rates and 45% reduction in transaction processing time. Analysis reveals that employee digital literacy accounts for 28% of performance variance, while organizational support systems explain 23% of technology adoption rates. The findings extend service innovation literature by establishing empirical links between compensation systems and digital transformation success, providing a practical framework for technology integration in Taiwan's real estate sector. This research offers evidence-based recommendations for firms implementing digitalization strategies and developing employee capabilities in response to industry evolution.

How is coaches’ social identity leadership related to mental health in elite athletes? The mediating role of satisfaction with performance

ABSTRACT It has been found that the way high-performance coaches lead influences both athletes’ performance and mental health. However, limited research exists on the Social Identity Approach to leadership in elite sports, despite growing interest in coaching science regarding interpersonal behaviours and leadership. This study investigates the empirical links between coaches’ leadership, sport performance and mental health from a social identity approach. One hundred and forty-five elite athletes (M age = 20.6 years; SD = 4.1; 62% women, 38% men) answered questionnaires measuring coaches’ social identity leadership, sport performance satisfaction and mental health. The overall structural equation model (SEM) accounted for 36% and 19% of the variances in athletes’ mental health and mental illness dimensions, respectively. There was a positive association between perceived coaches’ social identity leadership and sport performance satisfaction, explaining 10% of its variance. Coaches’ social identity leadership predicted athletes’ mental health but not mental illness. Sport performance satisfaction positively influenced mental health and negatively impacted mental illness. Fostering a sense of “we” and “us” within elite sport training groups is instrumental in promoting sport performance satisfaction and, consequently, enhancing the mental health of athletes. Coaching educational courses may benefit from social identity leadership in interpersonal behaviours.

Parasite scars: the impact of salmon lice injury on sea trout populations.

Spillback effects of the parasitic salmon louse from fish farms to wild fish are a critical environmental concern for countries with wild salmon. The ectoparasitic louse causes significant physical and physiological damage to wild salmonids that probably have long-term impacts on individuals and population dynamics. However, empirical links between injuries and abundance of lice have not been established in the wild. This study establishes a strong association between dorsal fin injuries in wild sea trout (Salmo trutta) and infestation with salmon lice at a marine site in Norway. We further assessed the prevalence of such injuries on sea trout returning to spawning grounds from snorkelling observations in 16 rivers in Hardangerfjord, western Norway, from 2007 to 2021. The prevalence of injuries decreased with distance from the fjord outlet, from approximately 70% in middle and outer parts to approximately 10% in the inner parts. Additionally, a negative correlation was found between sea trout population size and the proportion of the population with dorsal fin damage. The results demonstrate that salmon lice inflict high levels of injury on significant portions of sea trout populations in areas with intensive fish farming, leading to poorer population status in affected populations.

Transferability and Explainability of Deep Learning Emulators for Regional Climate Model Projections: Perspectives for Future Applications

Abstract Regional climate models (RCMs) are essential tools for simulating and studying regional climate variability and change. However, their high computational cost limits the production of comprehensive ensembles of regional climate projections covering multiple scenarios and driving Global climate models (GCMs) across regions. RCM emulators based on deep learning models have recently been introduced as a cost-effective and promising alternative that requires only short RCM simulations to train the models. Therefore, evaluating their transferability to different periods, scenarios, and GCMs becomes a pivotal and complex task in which the inherent biases of both GCMs and RCMs play a significant role. Here, we focus on this problem by considering the two different emulation approaches introduced in the literature as perfect and imperfect, that we here refer to as perfect prognosis (PP) and model output statistics (MOS), respectively, following the well-established downscaling terminology. In addition to standard evaluation techniques, we expand the analysis with methods from the field of explainable artificial intelligence (XAI), to assess the physical consistency of the empirical links learnt by the models. We find that both approaches are able to emulate certain climatological properties of RCMs for different periods and scenarios (soft transferability), but the consistency of the emulation functions differs between approaches. Whereas PP learns robust and physically meaningful patterns, MOS results are GCM dependent and lack physical consistency in some cases. Both approaches face problems when transferring the emulation function to other GCMs (hard transferability), due to the existence of GCM-dependent biases. This limits their applicability to build RCM ensembles. We conclude by giving prospects for future applications. Significance Statement Regional climate model (RCM) emulators are a cost-effective emerging approach for generating comprehensive ensembles of regional climate projections. Promising results have been recently obtained using deep learning models. However, their potential to capture the regional climate dynamics and to emulate other periods, emission scenarios, or driving global climate models (GCMs) remains an open issue that affects their practical use. This study explores the potential of current emulation approaches incorporating new explainable artificial intelligence (XAI) evaluation techniques to assess the reliability and transferability of the emulators. Our findings show that the different global and regional model biases involved in the different approaches play a key role in transferability. Based on the results obtained, we provide some prospects for potential applications of these models in challenging problems.

Differentiation and destandardization of family life courses: Theoretical and empirical links to sociopolitical regime types

Building on research on cohort-specific trends in life-course differentiation and destandardization, our study seeks to explore how patterns of family-life-course diversity relate to characteristics of sociopolitical regimes. Applying sequence analysis, we analyse cohort-specific family life courses from nine European countries and Canada, classifying them into five sociopolitical regimes (Nordic, Anglo-Saxon, Mediterranean, Continental, Eastern). We use data from the Harmonized Histories and the German National Educational Panel Survey. Our results indicate that sociopolitical regimes differentiate patterns of life-course diversity quite well in the Nordic, Anglo-Saxon, and Eastern European countries but to a lesser degree in the Mediterranean and Continental countries. In methodological terms, our results suggest that distinguishing patterns of diversity between and within life courses helps to create a more nuanced empirical account of changing life-course patterns, particularly in a cross-national perspective.

Linkages between financial and macroeconomic indicators in emerging markets and developing economies

This paper provides empirical evidence on the finance-growth nexus, making key contributions by focusing on previously understudied Emerging Markets and Developing Economies (EMDEs) and employing mixed-frequency data. Utilizing panel forecasting models for 50 countries from 1990 to 2019, we examine the empirical link between macroeconomic indicators (e.g., aggregate production) and financial indicators (e.g., stock market indexes). Our results support the notion that financial indicators can indeed serve as robust predictors of macroeconomic indicators. Further, the use of mixed data sampling (MIDAS) models enhances the results, confirming the presence of valuable predictive information in higher-frequency data, even for lower-income countries. These findings bear particular significance for policymakers and investors, given the persistent challenge of accessing timely and reliable data on real indicators in EMDEs.

The role of loan loss provisions in income inequality: Evidence from a sample of banking institutions

This study explores the empirical link between income inequality and banks’ Loan Loss Provisions (LLPs) through a sample of banking institutions from 132 countries, applying a panel regression methodology. The evidence reveals that higher LLPs have a positive impact on income inequality, and the findings remain valid across various model specifications and income inequality measures. The results also hold against various robustness tests, such as different bank sizes, developed vs. emerging countries, the impact of the 2008 global financial crisis, and the controlling for risk. The implications are relevant for stakeholders, including regulators that endeavor to protect banking systems against expected and unexpected losses via LLPs. Specifically, since credit decisions have substantial effects on income inequality, regulators should mitigate the accumulation of LLPs, allowing more funds to be available for other banking system activities and functions.

Self-employment, financial access and economic welfare: empirical evidence from Africa

Purpose This study aims to investigate the empirical linkages between self-employment, financial access and economic welfare in Africa. It particularly examines the moderating role of financial access in the self-employment-economic welfare nexus and determines relevant thresholds. Design/methodology/approach The paper samples 52 African economies from 2000 to 2018 and deploys the fixed effects and bootstrap quantile regression estimators. Findings The results show that self-employment has a negative and significant relationship with economic welfare, while access to finance has a positive and significant relationship with welfare. More notably, the conditional effect of self-employment and finance is significant and positive, confirming a synergetic effect. The result suggests that pushing more people into self-employment does not necessarily enhance economic welfare, other than the avoidance of unemployment, due to the large number of replicative and necessity entrepreneurs. However, granting the self-employed more access to affordable finance that boosts entrepreneurial activities enhances economic welfare. Practical implications African governments and relevant policymakers must recognize that deepening the financial sector is crucial in creating sustainable opportunity entrepreneurs and boosting general economic welfare. Originality/value The uniqueness of this paper centers on the exposé of the relevance of financial access/development in promoting the economic welfare of self-employed persons and entrepreneurs. It also determines relevant thresholds at which finance is most significant in procuring positive impacts on economic welfare. In addition, the simultaneous quantile regression is used to show snapshots of human development index at which this impact is paramount.

Three Pillars of Support for Orphan Drug Programs: Individual Valuations, Societal Valuations, and Anonymous Altruism

ObjectivesTo identify and describe potential societal and individual sources of support for orphan drug programs. MethodsThe Generalized Risk-Adjusted Cost-Effectiveness method shows that acute illness and disability severity increase individuals’ willingness to pay for health gains. We develop a social welfare function (SWF) that incorporates individuals’ own values, combined with politically or ethically determined weights. We introduce the concept of horizontal equity—that individuals in similar situations should be treated similarly—into the SWF. Finally, we introduce anonymous altruism into individuals’ utility functions—the desire to help others, without knowing their identity. ResultsCombined with the empirical link between disease severity and rarity, the Generalized Risk-Adjusted Cost-Effectiveness method demonstrates heightened willingness to pay for health gains for people with rare diseases, leading rational individuals to support orphan drug programs, our first pillar of support. Adding horizontal equity to the SWF further increases societal support for orphan drug programs. Anonymous altruism, focusing most strongly on those in the most-dire circumstances, leads to altruistic support for those with severe disorders. Because innovators’ economic incentives lead them to focus on larger markets, anonymous altruistic individuals will increasingly prefer public investments into rare diseases over time, as private markets systematically produce gains for common diseases. ConclusionsWe identified 3 supporting pillars for orphan drug programs: (1) individuals’ propensity to prefer treatments for severe diseases; (2) the preference for horizontal equity in our social welfare; (3) anonymous altruism, the desire to help strangers, coupled with market incentives that underserve strangers with rare diseases.

Establishing an Empirical link between Financial Development, CO2 Emissions, Tourist Arrivals and Economic Growth: A Dynamic Panel Data Approach

The study is an attempt to see the impact of changes in environmental, economic, trading, and financial conditions on tourist arrivals of 123 countries from Europe, America, Asia and Africa. The countries were distributed in seven distinct regions on the four continents. In order to perform an effective empirical analysis, panel data from these countries was obtained from World Development Indicators from 1999 to 2018. The results of panel cointegration revealed the presence of a long-run relationship between tourist arrivals and the explanatory variables included in the model. Environmental conditions were found to adversely affect tourist arrivals with rising CO2 emissions, whereas improvements in financial development contributed towards increased tourist arrivals. The results of the study encouraged the implication of eco-friendly policies and financial development for tourism promotion in selected 123 countries from seven regions.

Classifying national drinking patterns in Europe between 2000 and 2019: A clustering approach using comparable exposure data.

Previously identified national drinking patterns in Europe lack comparability and might be no longer be valid due to changes in economic conditions and policy frameworks. We aimed to identify the most recent alcohol drinking patterns in Europe based on comparable alcohol exposure indicators using a data-driven approach, as well as identifying temporal changes and establishing empirical links between these patterns and indicators of alcohol-related harm. Data from the World Health Organization's monitoring system on alcohol exposure indicators were used. Repeated cross-sectional hierarchical cluster analyses were applied. Differences in alcohol-attributable harm between clusters of countries were analyzed via linear regression. European Union countries, plus Iceland, Norway and Ukraine, for 2000, 2010, 2015 and 2019. Observations consisted of annual country data, at four different time points for alcohol exposure. Harm indicators were only included for 2019. Alcohol exposure indicators included alcohol per capita consumption (APC), beverage-specific consumption and prevalence of drinking status indicators (lifetime abstainers, current drinkers, former drinkers and heavy episodic drinking). Alcohol-attributable harm was measured using age-standardized alcohol-attributable Disability-Adjusted Life Years (DALYs) lost and deaths per 100 000 people. The same six clusters were identified in 2019, 2015 and 2010, mainly characterized by type of alcoholic beverage and prevalence drinking status indicators, with geographical interpretation. Two-thirds of the countries remained in the same cluster over time, with one additional cluster identified in 2000, characterized by low APC. The most recent drinking patterns were shown to be significantly associated with alcohol-attributable deaths and DALY rates. Compared with wine-drinking countries, the mortality rate per 100 000 people was significantly higher in Eastern Europe with high spirits and 'other' beverage consumption [ = 90, 95% confidence interval (CI) = 55-126], and in Eastern Europe with high lifetime abstainers and high spirits consumption ( = 42, 95% CI = 4-78). European drinking patterns appear to be clustered by level of beverage-specific consumption, with heavy episodic drinkers, current drinkers and lifetime abstainers being distinguishing factors between clusters. Despite the overall stability of the clusters over time, some countries shifted between drinking patterns from 2000 to 2019. Overall, patterns of drinking in the European Union seem to be stable and partly determined by geographical proximity.

How does natural resource depletion affect energy security risk? New insights from major energy-consuming countries

The continuous supply of reliable and affordable energy sources is crucial for driving a nation's economic activities. The phenomenon of continuous energy supply at affordable prices is called energy security. To date, more than two-thirds of the global energy demand is met by non-renewable energy derived from natural resources. The empirical connection between natural resource depletion and energy security risk remains unexplored in the prior literature. Thus, this study analyzes the empirical linkage between natural resource depletion and energy security risk by applying the CS-ARDL and PMG-ARDL models. As per our findings, natural resource depletion increases long-term energy security risks Globally and in Asia, America, Europe, and Africa. In short run, the role of natural resource depletion is mostly insignificant in energy security risk. In contrast, the GDP, financial development, trade openness, and technological development help reduce long-run energy security risk in all regions except Africa. In the short run, only GDP and trade openness help reduce energy security risks in most regions. Therefore, policymakers should focus on efficiently utilizing natural resources to mitigate energy security risks.

Insensitive Investors

ABSTRACTWe experimentally study the transmission of subjective expectations into actions. Subjects in our experiment report valuations that are far too insensitive to their expectations, relative to the prediction from a frictionless model. We propose that the insensitivity is driven by a noisy cognitive process that prevents subjects from precisely computing asset valuations. The empirical link between subjective expectations and actions becomes stronger as subjective expectations approach rational expectations. Our results highlight the importance of incorporating weak transmission into belief‐based asset pricing models. Finally, we discuss how cognitive noise can provide a microfoundation for inelastic demand in the stock market.

Impact of green financing on CSR and environmental policies and procedures

Despite increasing global attention towards sustainable development, the empirical linkage between green financing and the enhancement of environmental and social governance (ESG) practices within industries remains underexplored. This study investigates the influence of green financing on Corporate Social Responsibility (CSR) and environmental policies and procedures in 40 Chinese industries from 2010 to 2020. By employing a baseline regression and a difference-in-differences methodology, this paper aims to quantify the extent to which green financing initiatives have impacted CSR activities and the adoption of rigorous environmental policies and procedures in the Chinese industrial sector. The results indicate that industries with access to green financing have shown significant improvements in their CSR engagements and the stringency of their environmental policies and procedures compared to those without such financial incentives. Specifically, the difference-in-differences analysis reveals a positive and statistically significant effect of green financing on the adoption of more stringent environmental policies and the enhancement of CSR practices. We identify the specific areas within CSR and environmental policies that are most influenced by green financing. We assess the effectiveness of green financing as a tool for promoting sustainable industrial practices. The analysis utilizes a comprehensive dataset, including industry-specific financing and ESG performance indicators, to conduct a longitudinal assessment over the decade in question. Based on these findings, the study concludes with a policy implication that emphasizes the critical role of green financing as a catalyst for improving CSR and environmental standards in industries. It suggests that policymakers and financial institutions should consider expanding green financing mechanisms to accelerate the transition towards more sustainable industrial practices.

Effects of monetary policy on household expectations: The role of homeownership

We study the role of homeownership in the effectiveness of monetary policy on households’ expectations based on individual-level microdata in the U.S. We find that homeowners lower their near-term inflation expectations and optimism about the labor market outlook in response to a rise in mortgage rates, while renters are less likely to do so. We further show that forward guidance shocks lead to similar differences between homeowners and renters. Our results suggest that homeowners pay attention to news on interest rates and adjust their expectations accordingly in a manner consistent with the intended effect of monetary policy. We characterize this empirical finding with a rational inattention model where mortgage payments create an incentive for homeowners to acquire information on monetary policy, unlike renters. This housing-driven endogenous attentiveness is the key mechanism behind the compelling empirical link among homeownership, attention, and the transmission of monetary policy.

Enhancing sustainability: Exploring the evolution and dynamics of the grassland social-ecological system in Inner Mongolia over the past 260a

Understanding the intricate relationship between social-ecological systems (SES) coupling and long-term regional sustainable development is critical for effective management strategies. While recent research has predominantly focused on human-earth coupling, there is a dearth of knowledge concerning the transition of grassland SES from one regime to another and the underlying drivers. This study employs a comprehensive SES framework to identify and analyze interactions within typical pastoral areas of Inner Mongolia, aiming to shed light on the evolution of the grassland SES over the past centuries. Our research defines five distinct evolutionary phases in the grassland SES since the mid-Qing Dynasty. Each phase is characterized by unique social and ecological features, providing a nuanced understanding of the system's dynamics. We establish empirical links between the phases and their driving forces and impacts by assessing the main changes between these periods. Specifically, our findings reveal instances of negative cross-scale effects emerging during the evolution process. We observe that unreasonable resource utilization and an inability to curb ecological degradation may lead to unsustainable traps, posing challenges to long-term sustainability. To illustrate, during the transition from Phase 3 to Phase 4 in the late 19th century, a shift towards sedentary pastoralism led to increased land degradation due to intensified grazing practices. This unsustainable trajectory highlights the importance of adaptive management strategies to mitigate such negative consequences. This study contributes insights into the social and ecological management of grassland pastoral areas in China and for global analogous regions. By addressing the identified phases and their associated challenges, our research provides a foundation for crafting sustainable policies and practices to ensure the resilience of grassland SES in diverse geographical contexts.

Effect of Leadership Styles on Gen-Z Work Performance: An Empirical Analysis

The main purpose of this paper is to examine the relationship between leadership styles and Gen-Z workforce performance. A disproportionate stratified random sampling technique was used to select respondents from private secondary schools in Ogun State, Nigeria. Given a sampling frame of 1300 Gen-Z employees, this study adopted Cochran (1977) sample size method to analyse 279 usable questionnaires. The proposed structural model was assessed through established GOF indices. While specified hypotheses were tested using SEM. Findings show that confirmatory factor analysis reduced the measurement model to 20 items. In addition, the structural model showed GOF indices of χ² / df ratio (438.572 / 166) = 2.642, RMSEA (0.053), TLI (0.901), and CFI (0.907). SEM hypotheses testing revealed that transformational leadership styles do not only have positive path estimates, but also established practical and statistically significant relationship with Gen-Z workforce performance. Contrary to previous research, laissez-faire leadership style was found to be positive and significant with Gen-Z performance. Perhaps, due to the autonomy it accorded Gen-Z cohort to handle tasks without interference. This style makes Gen-Z feel respected and empowered. However, transactional leadership style reported a different outcome. Transactional leadership style was found to be positive, but its path estimate was not practical and statistically significant (β = 0.07, p = 0.120) with Gen-Z work performance. Hence two out of three specified hypotheses were accepted. This paper has it contributions. By implication, its outcome addressed some equivocal issues in leadership literature. Theoretically, it extends body of knowledge on empirical linkage between leadership styles and the digital natives (Gen-Z). Also, the paper impliedly suggests to CEOs / HR / management experts on formulating and implementing policies that will motivate, inspire, and retain Gen-Z in their organisations. Practically, the established relationship between laissez-faire leadership style and Gen-Z cohort suggests that Gen-Z can practically come on board with their ideas and work as ally with their leaders towards achieving the overall organizational goals. There are limitations which may have biased the outcome of this study. Hence, potential areas for further studies have been highlighted.

Assessing the Relationship between Corporate Social Responsibility and R&D Effectiveness of Firms

Practices of corporate social responsibility often generate synergetic effects and improve financial and overall firm’s performance. However, in the high-tech industries, research and development (R&D) efficiency remains a key element of development strategy, and a shift towards sustainable activities can be considered as a trade-off. This study investigates the empirical link between corporate social responsibility practices and R&D effectiveness in R&D-intensive industries. Specifically, this research assesses the impact of environmental, social, and governance information disclosure, the availability of third-party rating, and long-termism on R&D returns. We employ the Hausman–Taylor estimator to analyze three R&D-intensive industries, namely pharmaceuticals, biotechnology and software, for the period from 2012 to 2019. Empirical results show that, in general, higher values of corporate social responsibility metrics are associated with the weaker R&D returns. The findings of this research might be meaningful for managers in making informed decisions with respect to corporate social responsibility practices.

Central Bank Independence, Inflation and Money Growth: Evidence from South Africa

Purpose: This article evaluates the impact of the de jure independence of the South African Reserve Bank (SARB) on the credibility and discipline of domestic monetary policy. Credibility captures the extent to which economic agents trust the SARB to pursue its price stability mandate and is measured by the relationship between the SARB’s independence and domestic inflation. Discipline relates to the effect of independence on money growth rates, while independence is associated with a more disciplined central bank and moderate money growth rates. Methodology: A simple autoregressive distributed lag (ARDL) econometric specification and Granger causality tests are employed. Following the extant empirical literature, existing indexes of central bank independence (CBI) are regressed on annual rates of inflation and M2 money growth. Findings: A statistically significant negative relationship is established between both i) CBI and inflation and ii) CBI and money growth for the South African economy. This suggests that the SARB’s legal independence plays an important role in containing inflation (credibility) and limiting excessive money growth (discipline). Contribution: This article fills a gap in the extant literature by being the first attempt at formalising the empirical link between de jure CBI, inflation, and the rate of money growth in the South African economy.