Tag: O4

MACROECONOMIC EFFECTS OF TELEWORKING IN EU27: STOCHASTIC FRONTIER APPROACH

Lena MALEŠEVIĆ PEROVIĆ

Full professor, University of Split, Faculty of Economics, Business and Tourism, Split, Croatia and CERGE-EI Teaching Fellow

lena@efst.hr

Abstract

The main aim of this paper is to investigate macroeconomic effects of teleworking during the COVID-19 pandemic, using an atypical approach. We apply stochastic frontier analysis to a Cobb-Douglas production function broadened with teleworkability variable, and analyse the level of (in)efficiency of EU27 countries in producing their GDPs. We find that increasing the percentage of jobs that can be done at home by 1 percentage point reduces the level of technical inefficiency by 3.5%. Additionally, we use a unique e-survey conducted in April and May of 2020, which provides the data on the share of people who started working from home as a results of a COVID-19 situation, and combine it with the teleworkability variable. Overall, our findings suggest that more developed EU countries have a higher share of teleworkable jobs, which in turn reduces their inefficiencies, and furthermore results in more people beginning to work from home in the pandemic. 

Keywords: teleworking, production function, stochastic frontier analysis, EU, COVID-19

JEL classification: C21, O4, O33, O52

 pp. 33-42

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AGGLOMERATION ECONOMICS AND ASYMMETRIC INFORMATION: ROLE OF INSTITUTIONS

Vinko MUŠTRA[1]

Associate professor, Faculty of Economics, Business and Tourism, University of Split

vmustra@efst.hr

Hrvoje KALINIĆ

Assistant professor, Faculty of Science, University of Split

hrvoje.kalinic@pmfst.hr

Abstract

This paper constructs the model that links agglomeration economics with information asymmetries. It extends the literature by launching the concept that explains influence of the asymmetric information on agglomeration economies by emphasizing the role of the transaction cost under institutional framework. Consequently, the predictions of the model suggesting that impact of agglomeration economies depends on stages of development highlight the importance of different approach to the agglomeration economies phenomena in developing  and developed countries.

Keywords: agglomeration economics, asymmetric information, transaction costs, institutions

JEL classification: R1, O4, D8

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[1] Corresponding author

GOVERNMENT EXPENDITURES COMPOSITION AND GROWTH IN EU15: A DYNAMIC HETEROGENEOUS APPROACH

Lena MALEŠEVIĆ PEROVIĆ

Associate professor University of Split, Faculty of Economics, Business and Tourism, CERGE EI Teaching Fellow Cvite Fiskovića 5, 21000 Split, Croatia, Tel: + 385 21 430 683, Fax: + 385 21 430 701

lena@efst.hr

Silvia GOLEM

Associate professor University of Split, Faculty of Economics, Business and Tourism, Cvite Fiskovića 5, 21000 Split, Croatia, Tel: + 385 21 430 673, Fax: + 385 21 430 701

sgolem@efst.hr

Abstract

The goal of this paper is to investigate the long-run effect of government size and composition on growth in EU15 countries during 1995-2014. Unlike previous studies, this paper employs a more adequate and sophisticated econometric technique which allows the joint occurrence of dynamics and parameter heterogeneity as well as addresses the problem of unobserved common factors. The obtained results indicate that high aggregate spending levels are an impediment for growth in developed economies, while the single most important government expenditure item is education. In quantitative terms the impact of education expenditures is, however, significantly lower than that found by other papers.

Keywords: government size, expenditures composition, GDP growth, heterogeneity, unobserved common effects, EU15

JEL classification: C23, H1, H50, O4
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