Csaba Lakócai (p)

André Luis S Chagas

The importance of organizations belonging to the social and solidarity economy (SSE) has been re-emerging nowadays in relation to the recent pandemic situation. Indeed, these organizations have always played an important social role, especially in times of recessions and systemic crises. In France, under the law of 31st July 2014, the SSE represents an official sector which is statistically measurable. The objective of the current research is to analyze the spatial features of the sector within the continental territory of France. For this objective, I apply spatial regression analyses in departmental breakdown. The results show a statistically significant spatial concentration of SSE in terms of the number of organizations, belonging to the sector, per population. Besides, this concentration shows only partial overlap with the formal regional economic structure within the country and stochastic relationship with certain socioeconomic indices.

Tamás Krisztin (p)

Csaba Lakócai

In this paper, we examine the drivers of farm structural change in the EU27, using a novel framework using a spatially augmented multinomial logit model (MNL), which features spatial dependence in the log-odds. The decision theoretic analytical model relies on a multiplicative competitive interaction (MCI) model, from agricultural economics. The proposed modelling framework additionally allows for state of the art features, such as uncertainty over explanatory variables and spatial dependence structures. Within our empirical application we analyze farm group shares at the NUTS-2 level taken from the Farm Structure Survey (FSS) using socio-economic variables from the Farm Accountancy Data Network (FADN) and other databases for the period 2007–2017. We demonstarte the importance for accounting for spatial spillovers, particularly in terms of agricultural funding and employment.

Wen-Chung Guo (p)

Tamás Krisztin

Work-from-home is a rising observation of working away from a fixed job location in the office that can be carried out in home and any place. It has the beauty to help reduce energy consumption, traffic congestion and air pollution, save office space and provide work-life balance. This study is motived by the onset of Covid-19 pandemic and the rapid development of digitalization that accelerated work from home that has received much attentions recently.
We attempt to establish a spatial framework of a circular labor market with oligopsony to analyze how work from home affects the labor market along with the factor of pandemic. It contributes to the existing limited theoretical studies by focusing on the effects from both the competition and undertaking several factors of benefits and difficulties from work from home, such as the percentage of work from home, the number of firms, commuting costs, costs from saving in office space, personal costs related to work from home, productivity of labors, and the production technology of firms. Analysis on the equilibrium wages, labor allocation, labor welfare, firms’ profit and social welfare is derived.
We adopt a circular model with equal distanced firms as a spatial oligopsony. Consider two types of workers with either high or low productivities. The main results are as follows. First, work-from-home can be beneficial to both workers and overall social interest when the distance costs are high, firms are less competitive, the extra cost for work-from-home and the productivity gap are low. This result is consistent with empirical findings of positive impacts on productivity and workers’ satisfication. Second, wage dispersion among workers may become wider in work from home under similar conditions. The implied increased wage dispersion in pandemic was found in empirical data. Third, pandemic risk can induce increased wage dispersion, although the level of wages may either increase or decrease, depending on the extent of productivity shock and the cost from pandemic spread.

Potential empirical explanations from the proposed model and related empirical predictions are further discussed. Moreover, several extensions for robustness are provided to include investment game of digitalization, partially covered labor markets and unemployment, and linear model with both consumption and labor markets.

André Luis S Chagas (p), Natalia Cotarelli

Wen-Chung Guo

Before 2008, the Taylor Rule had seemed to be a reasonable rep-resentation of monetary policy decisions; however, recently, monetary policyagents have increasingly deviated from this rule. Given the higher financial in-tegration, this study assumes that there is some spillover effect between severalcountries’ monetary policy decisions, not included in the Taylor Rule. Consid-ering spatial autocorrelation in monetary policy decisions, the coefficient of thedirect effect of the domestic inflation on interest rate is 0.95, while the coefficient for the indirect or spillover effect is 0.10, resulting in a total effect of inflation equals to 1.05