Types Of Spillovers Research Articles

On spillovers in economic evaluations: definition, mapping review and research agenda

An important issue in economic evaluations is determining whether all relevant impacts are considered, given the perspective chosen for the analysis. Acknowledging that patients are not isolated individuals has important implications in this context. Increasingly, the term “spillovers” is used to label consequences of health interventions on others. However, a clear definition of spillovers is lacking, and as a result, the scope of the concept remains unclear. In this study, we aim to clarify the concept of spillovers by proposing a definition applicable in health economic evaluations. To illustrate the implications of this definition, we highlight the diversity of potential spillovers through an expanded impact inventory and conduct a mapping review that outlines the evidence base for the different types of spillovers. In the context of economic evaluations of health interventions, we define spillovers as all impacts from an intervention on all parties or entities other than the users of the intervention under evaluation. This definition encompasses a broader range of potential costs and effects, beyond informal caregivers and family members. The expanded impact inventory enables a systematic approach to identifying broader impacts of health interventions. The mapping review shows that the relevance of different types of spillovers is context-specific. Some spillovers are regularly included in economic evaluations, although not always recognised as such, while others are not. A consistent use of the term “spillovers”, improved measurement of these costs and effects, and increased transparency in reporting them are still necessary. To that end, we propose a research agenda.

Pollution havens and agglomeration: The effect of globalization and technological spillover

ABSTRACT The statistical significance of the pollution haven hypothesis remains low. This suggests that some elements may have been overlooked in hypothesis testing. Here, pollution havens due to trade liberalization may depend on the degree of technological spillover. This spillover affects the industrial concentration of polluting firms. Using an agglomeration model with technological spillover, we analysed the effect of transport costs on pollution havens to clarify this relationship. Interactions between an international emission permit trading market and local spillover in innovation bring about the following multiple equilibria: the poverty trap equilibrium leads to similar results in the case of global spillover, where lower transport costs encourage economic growth in addition to relocation from the South to the North. By contrast, equilibrium with a higher concentration of firms leads to the pollution havens hypothesis because decreased transport costs prompt polluting firms to relocate to South with relatively small markets due to the home market effect, leading to lower economic growth. Our findings imply that the type of spillover in innovation (local or global) determines the pollution haven hypothesis. In a global economy, narrowing the North-South technology gap could contribute to eliminating pollution havens.

Enhancing Stress Tests by Adding Macroprudential Elements

The use of stress testing for macroprudential objectives is advanced by modeling spillovers within the financial sector or between the real and financial sectors. In this chapter, we discuss several macroprudential elements that capture these spillovers and how they might be added to stress test frameworks. We show how funding spillovers can be modeled as an add-on, using a reduced-form relation between banks’ funding cost, bank capital and economic activity. Using a calibration to US data, we project very modest funding spillovers conditional on the DFAST 2018 severely adverse scenario. We describe the pros and cons of modeling different types of spillovers using this approach.

Manufacturer’s online selling strategies under spillovers from online to offline sales

In this paper, we investigate a manufacturer’s online selling strategy choice between wholesale selling and agency selling, and discuss its impact in the presence of spillovers from online to offline sales. We find that the manufacturer’s optimal online selling strategies vary with consumers’ online channel acceptance and the extent of the spillover effect. In particular, when the online channel acceptance is high, the manufacturer prefers the agency selling strategy. When the online channel acceptance is moderate, if the sale in the online channel leads to a negative spillover effect on demand in the offline channel, the manufacturer has an incentive to adopt the wholesale selling strategy; otherwise, the agency selling strategy is a preferred choice for the manufacturer. When the online channel acceptance is low, if the sale in the online channel leads to a significant negative or a positive spillover effect on demand in the offline channel, the manufacturer should adopt the agency selling strategy; otherwise, reselling the products to an e-tailer is an optimal choice. Moreover, under certain conditions, we find a “win-win-win” result for the manufacturer, the offline retailer, and the online platform by adopting the agency selling strategy. Finally, we show that two types of spillover (i.e., stimulation effect and cannibalization effect) have different influences on supply chain participants.

Good and bad high-frequency volatility spillovers among developed and emerging stock markets

PurposeThis paper examines dynamic return spillovers and connectedness networks among international stock exchange markets. The authors account for asymmetry by distinguishing between positive and negative returns.Design/methodology/approachThis paper employs the spillover index of Diebold and Yilmaz (2012) to measure the volatility spillover index for total, positive and negative volatility.FindingsThe results show time-varying and asymmetric volatility spillovers among the stock markets under investigation. During the coronavirus disease 2019 (COVID-19) pandemic, bad volatility spillovers are more pronounced and dominated over good volatility spillovers, indicating contagion effects.Originality/valueThe presence of confirmed COVID-19 cases positively (negatively) affects the good and bad spillovers under low and intermediate (upper) quantiles. Both types of spillovers at various quantiles agree also influenced by the number of COVID-19 deaths.

Keun Lee Comments on Financial Spillover in Emerging Asia: A Tale of Three Crises

Keun Lee, Seoul National University: This paper analyzes the propagation of shocks originating in the United States and Japan into countries of emerging Asia (EA) in terms of five asset classes. It compares the scale and nature of spillovers during the 2008–09 global financial crisis (GFC), the 2013 “taper tantrum” (TT), and the ongoing COVID-19 pandemic. All three events have important and interesting implications for future economic management in Asia.Although the paper applies a conventional statistical technique to analyze the three episodes of economic disruption, it would have been better if the paper had started with a priori hypotheses derived from some theoretical reasoning instead of neglecting it. The starting point for such hypothesizing could have been either of the following two considerations. First, this paper could have started by considering the possibility that different shocks would generate different patterns of spillover across these five types of assets. Second, given that EA includes a diverse range of countries (e.g., Korea and India), with each at a different level of development or macro-financial openness and integration, this paper could have hypothesized about different impacts of the crises on the same asset in each country.Having said this, one methodological issue is how to define and operationalize a crisis. Certainly, the GFC and TT are different in nature—the former was an unplanned break-out of a crisis while the latter was a policy action by the Fed. Such a fundamental difference should have led to different patterns in spillover, but this key aspect not only was not analyzed but also not discussed in the interpretation of the results.Further, the GFC was immediately followed by extraordinarily strong macro-stabilization measures across the world, rendering economic outcomes to reflect both GFC and dramatic policy reactions like the quantitative easing (QE) in 2009. QE is rather similar to TT, whereas GFC is different. So, unless an analyst could separate these two intertwined events, they cannot interpret correctly the results of the analysis, namely, what is the pure effect of the GFC separated from QE.In addition, informed readers would wonder what kinds of shock had originated from Japan, when the paper had identified only non-Japan shocks as its focus. Two shocks (GFC and TT) originated in the United States, and COVID-19 first broke out contagiously in China. As this paper claims to analyze different shocks from the United States and from Japan, it should also be able to hypothesize about the differences in possible impacts, and in the nature of the spillovers.Now, in terms of analysis, the paper discusses two types of spillover, namely, shock versus volatility spillover. The differences and meaning of these two spillovers are not explained well for the reader, however. Further, the paper importantly uses the term “spillback” from EA to the United States. That requires some theorizing about the possible different nature and degree of these two, spillover versus spillback, which could open up room for a bigger contribution of the paper. I am raising this point because the paper mentions that “it is often problematic to distinguish contagion and spillover from interdependence.” Thus, I wonder what the answer to this issue is (spillover versus interdependence), which is not easy to find in the current version of the paper. Maybe the answer lies in distinguishing and more clearly explaining the differences among the direct, indirect, and dynamic spillovers, which are terms mentioned in the paper.Last, the paper makes an important statement at the end that “decades of financial liberalization that led to increased integration must have played a role; when crisis struck, contagion more easily ensued. In good times, everyone gained from integration, in bad times collective losses are difficult to avoid.” Such a statement is interesting and should have led the authors to discuss more of the policy implications from the results and findings of the paper. An important policy statement could have been derived if one had focused on the possible difference among the three crises, which is not explored much in the ending part of the paper, to come up with suggestions for macro-stabilization management for future pandemics.In sum, I find that the paper deals with important and timely issues but that it leaves more questions than it answers. At the same time, I definitely see more room for a potentially bigger contribution if some hypotheses are derived from a priori reasoning (e.g., expected differences in response patterns between GFC and COVID-19 shocks), and if these interpretations are then associated with such theoretical reasoning.

Harnessing visitors' enthusiasm for national parks to fund cooperative large‐landscape conservation

AbstractSpillover impacts pose challenges for the management of protected areas (PAs). The issue of external threats encroaching on PAs has long been recognized, but a corollary—that PA conservation can increase costs borne by neighboring governments or landowners—is less well appreciated. In some contexts, basic principles of fairness and cooperation suggest that PA users should help pay these costs. Several countries have developed mechanisms for distributing the costs of spillover impacts to PA users, but not the United States. Here, we investigate whether and how US park visitors could help address one type of spillover, the need for wildlife conservation efforts beyond park boundaries, using a case study of the Greater Yellowstone Ecosystem (GYE). We examine a “conservation fee” recently proposed in the Wyoming legislature, along with tax‐based alternatives. After exploring some costs of wildlife conservation in GYE, we estimate that a fee of up to $10 per vehicle could generate up to $13 million annually, and tax‐based approaches considerably more. We consider legal, political, and governance challenges, and ways to mitigate them. The GYE could serve as a demonstration site for visitor funding of cooperative, large‐landscape conservation, for potential future expansion in the US and beyond.

The role of gender in linking external sources of knowledge and R&D intensity

ABSTRACT Scholars examining the effect of knowledge spillovers on R&D and innovation all agree on one thing – there is a strong relationship between the firm's R&D effort and knowledge spillover. The sign of this relationship depends, however, on many things, such as the type of spillovers (horizontal, vertical, or from other sources), the level of appropriability, the type of firm (e.g. age and sector), and the measurement of the spillover itself. A missing piece of evidence to this literature is the role of gender in the founding team of the firm. Our contribution is to fill this gap by explicitly analysing the role played by gender in the founding team. Given that the relationship between a firm's R&D intensity and external knowledge spillovers is ultimately context-specific, we analyse the differences between male-owned and female-owned young entrepreneurial firms with respect to the influence that knowledge spillovers have on their R&D intensity.

Technological spillovers from multinational firms

AbstractThis paper aims to identify genuine technological spillovers from multinational firms (MNEs). To this end, we use data on R&D from MNEs to measure spillovers, while most of the existing literature uses output to measure the foreign presence in an industry (what we call output‐based spillovers). In line with the existing literature, we distinguish between horizontal spillovers (i.e., intra‐industry linkages) and vertical spillovers (i.e., backward—or downstream—and forward—or upstream—inter‐industry linkages). Our results show that the three types of technological spillovers from MNEs are positive, with the horizontal spillovers the larger ones, followed by backward spillovers. The effect of forward spillovers is much smaller in magnitude. Moreover, we find that not controlling for industry size (i.e., technological spillovers from all firms in an industry) leads to underestimating both horizontal and backward spillovers from MNEs, and to overestimating forward spillovers from MNEs. Finally, we find that the distinction between technological and output‐based spillovers is of great relevance. The size of backward technological spillovers is approximately 44% of the size of output‐based backward spillovers, while for horizontal spillovers both types of spillovers are quite similar. Importantly, output‐based forward spillovers are negative while technological forward spillovers are positive.

When controversies cascade: Analysing the dynamics of public engagement and conflict in the Netherlands and Switzerland through “controversy spillover”

Energy controversies have been widely studied. Such studies are, however, generally based on either single case studies, providing rich and in-depth understanding of (local) dynamics of planning and implementation processes, or they focus on understanding responses to a specific technology (not bound to a location). Therefore these studies tend to overlook a key dynamic in controversy, namely that publics respond to projects by drawing on earlier experiences with a similar technology elsewhere, or with earlier experiences with other technologies in their vicinity. We refer to this dynamic as controversy spillover. The notion of controversy spillover helps to understand how the discursive space of controversy changes over time. In case studies, other controversies are usually considered as context, i.e. as an external condition. However, in order to understand the temporal dynamics of public engagement with energy projects, spillover from other controversies deserves to be investigated more as an object of interest, rather than as an external condition. The aim of this paper is to conceptualize controversy spillover as an important dynamic in controversies and to develop a research agenda. We identify three different types of spillover: 1) geographical (i.e. between the same energy technology in different locations), 2) historical (i.e. with respect to earlier experiences at the same location), 3) technology (i.e. between different technologies). Three empirical examples serve to illustrate the three types of spillover. We finalize the paper with a research agenda for further conceptualization and empirical analysis of the notion of controversy spillover.

The Macroeconomic Spillover Effects of the Pandemic on the Global Economy

Given the historical persistence of economic activity, the reduction of GDP due to confinement measures is likely to drag on over several quarters. The total GDP shortfall could be as much as twice that implied by the direct initial effects of confinement. This persistence reflects in part two types of spillovers across countries. One is due to the risk that uncoordinated confinements lead to repeated virus outbreaks and confinements across the globe. Another is the more traditional trade and financial integration interlinkages. Economic spillovers and spillbacks across the major economic blocs are large. There is no immunity from the economic effects if the epidemic is controlled in only one or two regions. Countries should adopt confinement, border control and macroeconomic policies that internalise these global considerations.

Rent Control, Market Segmentation, and Misallocation: Causal Evidence from a Large-Scale Policy Intervention

This paper studies market segmentation that arises from the introduction of a price ceiling in the market for rental housing. When part of the market faces rent control, theory predicts an increase of free-market rents, a consequence of misallocation of households to housing units. We study a large-scale policy intervention in the German housing market in 2015 to document this mechanism empirically. To identify the effect we rely on temporal variation in treatment dates, combined with a difference-in-differences setup and a discontinuity-intime design. By taking a short-run perspective, we are able to isolate the misallocation mechanism from other types of spillovers. We find a robust positive effect on free-market rents in response to the introduction of rent control. Further, we document that rent control reduced the propensity to move house within rent controlled areas, but only among highincome households. Interpreted through the lens of our theoretical model, this spillover is a clear sign of misallocation. Further, we document that the spillover brings forward demolitions of old, ramshackle buildings.

International R&D spillovers to the electric power industries

This article analyzes how productivity in the electric power industries (electricity, gas, steam and air condition supply) is affected through investments in R&D for OECD countries between 1995 and 2014. The accumulated R&D expenditures represent the current stock of knowledge or technology. Using a detailed input-output matrix for country-industry combinations allows us to distinguish between four types of spillovers: domestic own sector, foreign own sector as well as domestic and foreign other sector spillovers. The foreign spillovers we capture thus occur through the use of (imported) inputs from the electric power industries or from other sectors. Our estimates show that the productivity of the electric power industries is much more influenced by the transfer of embodied technology from other industries than by investments of these industries themselves. Countries with the highest stock of R&D are mainly responsible for these international technology spillovers.

The moderating role of education in the relationship between FDI and entrepreneurial activity

We investigate the roles of inward FDI and education in explaining country levels of entrepreneurship. It is widely recognised that inward FDI may have positive but also negative spillover effects on entrepreneurial activity. We argue that both types of spillovers (positive and negative) may be reinforced by high education levels of the labour force. Using a database across 75 countries between 2001 and 2015, we estimate a 2SLS model that tests for this moderating role of education. We find support for a negative interaction effect of FDI and macro-level education on the rate of entrepreneurial activity, suggesting that in countries with highly educated labour forces, inward FDI leads to more jobs in the wage sector rather than a higher number of entrepreneurs. Policy implications are discussed.

Strategic introduction of the marketplace channel under spillovers from online to offline sales

In recent years, the increasing prevalence of online retailing has given rise to a novel e-channel—the marketplace—in which manufacturers sell their products directly to consumers by paying fees to e-tailers. This e-channel, unlike the conventional reseller e-channel, endows manufacturers with absolute control over prices, which helps protect brick-and-mortar channels, especially in the presence of different types of spillovers from online to offline sales. However, the marketplace channel is nevertheless not used in practice in some instances as a result of the e-tailer’s costly platform fees and the manufacturer’s inefficiency in direct retail sales. These different attitudes raise key questions of whether and under what conditions the marketplace channel should be introduced in addition to the reseller channel. In this paper, we study these problems by measuring the combined effects of the online spillover, the platform fee and the manufacturer’s retailing inefficiency. We demonstrate that the manufacturer’s willingness to employ the marketplace channel increases and the e-tailer’s willingness to do so decreases in the level of spillovers; when combining the two, we find that a Pareto improvement can be achieved under a moderate spillover. We also present an interesting insight that the introduction of the marketplace channel fundamentally changes the effects of the spillover on the e-tailer while merely strengthening those on the manufacturer. Moreover, a higher platform fee does not necessarily incentivize the e-tailer to join the marketplace, and the manufacturer’s retailing inefficiency may either benefit or harm the e-tailer, depending on the size of the platform fee.

Central Bank Balance Sheet Policies and Spillovers to Emerging Markets

We develop a theoretical model that shows that in the near future, the monetary policies of some key central banks in advanced economies (AEs) will have two dimensions — changes in short-term policy rates and balance sheet adjustments. This will affect emerging market economies (EMs), especially those with a pegged exchange rate, as these EMs primarily use a single monetary policy tool, i.e., the short-term policy rate. We show that changes in policy rates and balance sheet adjustments in AEs may differ in their respective financial spillovers to pegged EMs. Thus, it will be difficult for EMs to mitigate different types of spillovers with a single monetary policy tool. In that context, we use the model to show how EMs might use additional tools — capital controls and/or macro-prudential policy — to complement their monetary policy and financial stability toolkit. We also discuss how balance sheet adjustments that affect long-term interest rates may percolate to influence short-term interest rates via financial plumbing.

Central Bank Balance Sheet Policies and Spillovers to Emerging Markets

We develop a theoretical model that shows that in the near future, the monetary policies of some key central banks in advanced economies (AEs) will have two dimensions—changes in short-term policy rates and balance sheet adjustments. This will affect emerging market economies (EMs), especially those with a pegged exchange rate, as these EMs primarily use a single monetary policy tool, i.e., the short-term policy rate. We show that changes in policy rates and balance sheet adjustments in AEs may differ in their respective financial spillovers to pegged EMs. Thus, it will be difficult for EMs to mitigate different types of spillovers with a single monetary policy tool. In that context, we use the model to show how EMs might use additional tools—capital controls and/or macro-prudential policy—to complement their monetary policy and financial stability toolkit. We also discuss how balance sheet adjustments that affect long-term interest rates may percolate to influence short-term interest rates via financial plumbing.

Central Bank Balance Sheet Policies and Spillovers to Emerging Markets

We develop a theoretical model that shows that in the near future, the monetary policies of some key central banks in advanced economies (AEs) will have two dimensions—changes in short-term policy rates and balance sheet adjustments. This will affect emerging market economies (EMs), especially those with a pegged exchange rate, as these EMs primarily use a single monetary policy tool, i.e., the short-term policy rate. We show that changes in policy rates and balance sheet adjustments in AEs may differ in their respective financial spillovers to pegged EMs. Thus, it will be difficult for EMs to mitigate different types of spillovers with a single monetary policy tool. In that context, we use the model to show how EMs might use additional tools—capital controls and/or macro-prudential policy—to complement their monetary policy and financial stability toolkit. We also discuss how balance sheet adjustments that affect long-term interest rates may percolate to influence short-term interest rates via financial plumbing.

Home-to-work spillover and employability among university employees

Purpose The purpose of this paper is to investigate the relationship between positive and negative home-to-work spillover, i.e., home-to-work facilitation (HWF) and home-to-work conflict (HWC) with employability. Moreover, this study also examined whether the relationship between home-to-work spillover and employability varied between academic and support staff employees. Design/methodology/approach An on-line self-report questionnaire was distributed among academic (n=139) and support staff employees (n=215) working at a Dutch university for distance-learning education. Thoroughly validated measures of home-to-work spillover and employability were used. The employability measure consisted of five dimensions: occupational expertise, anticipation and optimization, personal flexibility, corporate sense, and balance. Hypotheses were tested using hierarchical multivariate regression analyses including interaction effects. Findings HWF was positively related to anticipation and optimization only, while HWC appeared to be negatively associated with all employability dimensions. As expected, the relationships between HWF and HWC on the one hand and the specific employability dimensions on the other hand were stronger for support staff employees than for academic staff employees. Originality/value This study has extended research on employability, by focusing on the home context of employees as a possible antecedent. So far, studies have largely ignored the home context of employees, when investigating employability outcomes. Another contribution was the focus on both positive (facilitation) and negative (conflict) spillover from home-to-work, whereas previous studies mainly focused on one type of spillover only. Finally, the authors had the unique opportunity to compare support staff and academic staff employees in one and the same study.

IT-Related Spillovers between Insurers and Healthcare Providers: Implications for Medical Fraud Detection, Hospital Quality, and Subsequent IT Investments

IT-related spillovers occur via data- and information-related transmission paths, so these types of spillovers are best studied through process-level measures. The medical claims fraud detection is a prototypical data- and information-intensive process in insurance companies. This paper examines the impact of IT-related spillovers on fraud detection outcome for insurers and patient-care quality for hospitals. We model IT-related spillovers between state-level subsidiaries of insurers, between subsidiaries of an insurer parent company, and between insurers and hospitals. We then examine the impact of spillover benefits and spillover IT pools on future IT-related investments, specifically, the impacts of IT-related spillover benefits and spillover pools of state-level subsidiaries of insurers on subsequent IT investments of insurers and hospitals. The empirical analysis is conducted using 2011-2013 data for insurers and hospitals, and state-level data on pharmacies and ambulatory providers.