Fall Semester 2021-2022

  • Date:
    14/10/2021 - 15:30 - 17:00

    Οctober 14, 2021

    Title: The Unintended Consequences of Meritocratic Government Hiring

    Speaker: Assistant Professor of Economics Ioannis Κospentaris, School of Business, Virginia Commonwealth University

    Host: Professor Evangelos Vassilatos, Department of Economics, Athens University of Economics and Business

    Time: 15.30-17.00

    Abstract: In an attempt to mitigate the negative effects of clientelism, many governments around the world have adopted meritocratic hiring of public employees. This paper shows that meritocratic government hiring can have unintended negative consequences on macroeconomic aggregates. In many countries, public employees enjoy considerable job security and generous compensation schemes; as a result, many talented workers choose to work for the public sector, which deprives the private sector of productive potential employees. This, in turn, reduces firms’ incentives to create jobs, increases unemployment, and lowers GDP. To quantify the effects of this novel channel, we extend the standard Diamond-Mortensen-Pissarides model to incorporate workers of heterogeneous productivity and a government that fills public sector jobs based on merit. We calibrate the model to aggregate data from Greece and perform a series of counterfactual exercises. We find that the adverse effects of our mechanism on TFP, GDP, and unemployment are sizable.

  • Date:
    04/10/2021 - 15:30 - 17:00

    October 4, 2021

    Title: Market Structure, International Banking, and New Technology: Evidence from the Loan Markets of the European Union

    Speaker: Małgorzata Pawłowska, Warsaw School of Economics

    Host: Georgios Kouretas, Department of Business Administration, Athens University of Economics and Business

    Time: 15.30-17.00

    Attachments: PDF icon PDF of Relevant Paper

    Abstract: The aim of this paper is to investigate whether the market structure and new technology have an impact on bank loan markets in the European Union. The impact of new technology on three types of bank loans (residential mortgage loans, consumer loans, and corporate loans) is quantified separately at the bank level, using the single-equation panel regression model and the interacted panel vector autoregression model. Using a panel data sample for the period 2004–2019, we find that new technology mainly affects the growth of loans for households, in particular, for consumer loans. We also find some heterogeneities between advanced and transitioning European Union banking sectors. Furthermore, the impact of new technology is significantly stronger and prolonged for foreign banks. Finally, our findings confirm the leading role of loans for households in the use of new digital technologies.

  • Date:
    20/09/2021 - 15:30 - 17:00

    September 20, 2021

    Title: The Response of Local Corporate Sustainability to Environmental Disasters: Evidence from Wildfires/WEBINAR

    Speaker: Ioannis Branikas, Assistant Professor of Finance, University of Oregon  

    Time: 15:30-17:00

    Host: Professor Evangelos Vassilatos, Department of Economics, Athens University of Economics and Business

    Abstract:  Environmental disasters are thought to increase the focus on corporate sustainability in the communities where they occur. Extracting data on wildfires (a frequent type of disaster in the U.S.), and using two ESG rating agencies and EPA air enforcement actions to construct measures of local corporate sustainability, we study this conjecture. To address the omitted variables concern, we conduct a pre- and post-trends analysis as well as an instrumental variables analysis using the Hot Dry-Windy Index of Srock, Charney, Potter, and Goodrick (2018). We show that severe wildfires in a county increase significantly its corporate environmental sustainability in the following year. The impact is not homogeneous across counties: it is significant only in counties where the percentage of anthropogenic climate change believers is high, or where the majority of voters are Democrats.