Courses
Prof. Cristiano Perugini
Rationale and Background
The course is aimed at providing a description of the steps of the European integration process in relation to the evolution of development disparities and income inequality across the EU. The implementation of the single market (freedoms of circulation for goods, services, capitals and people) has generated structural and economic adjustments in EU, favouring specialisation processes and migration movements which have shaped a new geography of development in Western and Eastern Europe. Similarly, the implementation of the monetary Union has provided further integration, but also the demission of national monetary policy and more constraints on the national budgets; in other words, and on the ability to counteract asymmetric (country-specific) shocks. On the other hand, a number of measures aimed at pursuing social cohesion have been implemented at EU level with the aim of correcting structural distortions of disadvantaged regions, social groups and individuals.
The course is included in the existing course of Economics (Istituzioni di Economia), the second part of which will be modified and converted into this course.
Contents
- Introduction: The process of European Integration: phases and achievements
- The evolution of Regional disparities in the EU: regional development differentials; regional labour market differentials. Historical evolutions of disparities in relation to the phases of integration
- The monetary Union: a new wave of integration and new constraints on the national policy tools; fiscal policy and the stability pact (initial and revisions)
- The social cohesion policy of the EU: addressing structural disparities across the EU between regions, sectors, individual; the role of structural funds, CAP, rural development policies, the ESF.
TEST - Prof. Cristiano Perugini, lesson Wednesday, February 13, 2013 9:55 AM
Market integration and inequality in the EU
Prof. Cristiano Perugini
Rationale and Background
The course aims at providing the theoretical and empirical background on the effects of goods, services and factors markets integration and evolution of development and income disparities in EU. Standard trade models predict that removal of trade barriers foster country and regional specialisation according to comparative advantage based on the relative endowment of factors of production. This reverberates on their demand and relative returns: income inequality is expected to rise in developed countries/regions specialising in high technology intensive sectors, and vice versa for developing countries/regions. New trade theory (trade in tasks and components) show that trade opening is compatible with increasing inequality also in underdeveloped economic systems. Standard factor movements models show a convergence between real returns to factors of production with similar characteristics, but increase in inequality between factors in the destination country and vice versa in the origin country. The course provides an overview of theoretical models and a thorough illustration of the evolution of regional specialisation and earnings inequality level in the EU following the implementation of the single market.
Contents
- The implementation of the single market in the EU: institutional and historical aspects;
- The theoretical background: standard trade models, New Economic Geography (NEG) theory, International movement of factors (K, L), New trade theories (trade in parts and components, outsourcing);
- The empirical evidence (i): a descriptive picture of trade flows intensity and structure within the EU and between the EU and trade partners;
- The empirical evidence (ii): the single market and regional specialisation patterns across the EU: has the single market reduced regional structural and economic disparities?
- The empirical evidence (iii): the single market and income inequality between factors of production (capital, skilled labour, unskilled labour) across the EU: has the single market reduced or increased social groups inequality?
Institutions and inequality in EU
Prof. Cristiano Perugini
Rationale and Background
The course aims at providing the theoretical and empirical background on the institutional drivers of inequality in Europe to post-graduate students (in Phd courses). The existing literature has highlighted that existing inequalities between and within countries can be only partially explained by trade flows, factors movements and technological change. Important streams of literature have instead emphasised that institutional settings play a crucial role in shaping development levels and relative returns of social and economic groups. The focus is primarily on labour market institutions, but also the role of product market regulation has attracted scholars’ attention in recent years. Lastly, different models of welfare states are intrinsically relevant in affecting market income distribution and redistributive effects. The course is organised into a first part in which the theoretical background is provided: in the second part of the course students will be asked to review and discuss the relevant literature contributions suggested by the teacher.
Contents
- Theoretical background (i): the diversity of institutional settings in Europe, the variety of capitalism approach, European models of capitalism;
- Theoretical background (ii): labour market institutions (LMI): unions, employment protection for temporary and permanent workers, bargaining models, active and passive labour market policies;
- Theoretical background (iii): product market regulation (PMR): goods market regulation dimensions, service market regulation dimensions; intensity of service regulation in manufacturing sectors;
- Theoretical background (iv): welfare state (WS) models;
- Empirics and discussion (i) LMI variety and inequalities in EU;
- Empirics and discussion (ii) PMR variety and inequalities in EU;
- Empirics and discussion (iii) WS models variety and inequalities in EU;
21 February 2013, ore 12 Labour market institutions, crisis and gender earnings gap in Eastern Europe (Cristiano Perugini, University of Perugia) - Presentation | Paper
7 March 2013, ore 12 Institutions and Income Mobility in Europe (Cristiano Perugini, University of Perugia) - Presentation | Paper
14 March 2013 Employment protection and earnings inequality within education groups (Cristiano Perugini and Fabrizio Pompei Department of Economics, Statistics and Finance, University of Perugia) - Presentation
21 March 2013 The Components of Wage Inequality and the Role of Labour Market Flexibility. Analyses for the Enlarged Europe (Jens Hölscher, University of Brighton (UK) - Cristiano Perugini and Fabrizio Pompei, University of Perugia) - Presentation | Paper
25 March 2013 Speed and Sequencing of Transition Reforms and Income Inequality A Panel Data Analysis (Cristiano Perugini, University of Perugia) - Presentation | Paper
18 April 2013 Preferences for Redistribution and Inequality in Well-being across Europe (Cristiano Perugini - David Aristei, University of Perugia) - Presentation | Paper
Institutions, policies and social cohesion in new EU members
Prof. Cristiano Perugini
Rationale and Background
This series of seminars is a short and more focused version of the teaching activity n.3, but delivered at the host institutions of the teaching staff members. The rational and background is the same as in teaching activity 3, but the focus will be on the central and eastern countries the EU. In particular, the course will deal with: (i) their transition patterns with regards of institutional convergence towards market Economies and integration into the EU market; and (ii) with their relations between their model of capitalism and inequality after more than 20 years of transition.
Contents
- Models of transition patterns in Central and Eastern EU countries;
- Income inequality and development disparities during transition;
- Diversity of the models of capitalism in new-EU member countries;
- Welfare states models and redistribution in Central-Eastern Europe;
- Institutional drivers of inter-generational income mobility in Central and Eastern Europe;
- Institutional drivers of intra-generational income mobility in Central and Eastern Europe;
UNIVERSITY OF PERUGIA
FDI, multinational firms and regional inequalities in the EU
Prof. Davide Castellani
Rationale and Background
The theoretical and empirical literature has shown that agglomeration forces tend to be particularly strong in the case of MNFs. This leads to geographical concentration of MNFs into few regions, affecting the evolution of geographical disparities in EU. Depending on the economic and institutional drivers of firms localisation, this also affects earnings and income distributions among individuals. This series will aim at assessing whether, to what extent, using which policy instruments the EU should try and address this process to the aim of social cohesion and European integration.
Contents
- Agglomeration economies and MNFs location choices: theory, empirical methods and results Institutions, Public policy and MNFs location choices;
- MNFs and regional spillovers: intra vs. inter-regional effects;
- MNFs and EU regional productivity growth: the long-run effects of MNFs;
- MNF and the evolution of regional disparities in Europe
- MNF and earnings inequality in EU
UNIVERSITY OF REGENSBURG
Institutions, growth and convergence in EU countries and regions
Prof. Richard Frensch
Rationale and Background
The five-lecture series (together 8 hours) on Institutions, Growth and Convergence in EU countries will be integrated in the established lecture on Economic Growth, held during the summer term at the University of Regensburg.
Contents
Institutions, Growth and Convergence in EU countries will be made an integral part of the second half of the established University of Regensburg lecture on Economic Growth within the context of the introduction and discussion of (semi)-endogenous models of growth, with specific reference to central and eastern European new EU member states’ recent developments.
- The first lecture will motivate the need for endogenising technical progress as a profit seeking endeavor to generate ideas, rather than a by-product of capital accumulation, as can be evidenced by the growth experience of centrally planned economies.
- The second lecture will separate the economics of ideas from the economics of objects, motivating the need for intellectual property rights protection.
- The third lecture will introduce the Romer-Jones macro-model of semi-endogenous growth for an entity of countries subject to common institutions of intellectual property rights protection, such as the European Patent Office.
- The fourth lecture will deepen the link between intellectual property rights protection and the production of ideas by presenting the micro aspects of the Romer-Jones model.
- The fifth lecture will present the experience across Europe of using ideas – where ever generated – in changing country specific states of technology dependent upon country-specific institutions, especially education.
Ideen.pdf |
Innovation_Romer.pdf |
Romer_Mikro.pdf |
diffusion.pdf |
Soviet_decline.pdf
UNIVERSITY OF BRIGHTON
Institutions and inequality in the emerging markets of central and eastern Europe
Prof. Jens Hölscher
Rationale and Background
Issues in emerging market economies will analysed by using theories and concepts. Particular emphasis is given global economic change and Eastern and Central Europe. The instability of the economic process will be studied in its relationship with financial income inequality and institutions.
Contents
- The emerging Eastern and Central European markets:
- history and recent developments;
- country ratings;
- Liberalisation, privatisation and globalisation:
- capital account liberalisation;
- bank privatisation and central banking;
- property rights and corporate control;
- competition;
- corruption;
- terrorism;
- Poverty and income inequality:
- Definitions and measurement;
- Empirical evidence;
- Inequality and poverty determinants;
- Inequality / growth relationship;
ZHONGNAN UNIVERSITY OF ECONOMICS AND LAW
Financial markets regulation, income inequality and development disparities in EU
Song Limeng
Rationale and Background
The failure of financial markets and the room for opportunism open by weak financial regulations have been one of the major drivers and the major mechanism of transmission of the ongoing global crisis. This lecture series aims at reviewing the main dimensions of regulation of financial markets, their implementation in EU and the effects on EU disparities. This will be done in comparison with other regulation systems worldwide, including transition economies of former Soviet Union and China.
Contents
- Ownership of banks;
- Foreign bank competition;
- Banking Supervision;
- Entry barriers/pro-competition measures;
- Private sector credit;
- Interest rate controls;
- Security Markets
HIGHER SCHOOL OF ECONOMICS, MOSCOW
Welfare state models and social cohesion in the EU
Leonid Polsihchuk
Rationale and Background
The teaching module will cover the experience of EU welfare states and illuminates the link between culture, trust, and other ingredients of social capital, on the one hand, and government’s presence in the economy and society, on the other. The experience of European welfare state models will be developed in view of their ability to promote social cohesion and to counteract adverse socio-economic events on the disadvantaged segments of the population.
Contents
The experience of European countries, from Sweden to Greece, provides a range of patterns of welfare policies and government regulations which are clearly related to social cohesion, trust and culture of particular countries which all exhibit significant variations across the continent. The course will provide a review of approaches to social welfare and safety nets in the EU and its member states, and will discuss those in the context of modern theories of social capital, government performance, and demand in the society for government regulation and control. An important focal point of the module will be the interplay between social cohesion and government programs, and in particular the circumstances when those are complements or substitutes. Recent advances in the institutional theory, political economy and public sector economics will be reflected in the proposed module.
UNIVERSITY OF PERUGIA
Labour market performance disparities in EU countries and regions: policy and institutional determinants before and during the crisis
by Marcello Signorelli
Rationale and Background
Regional and national labour market performance disparities are crucial components of inequalities across EU. The 2007–08 financial crisis and the subsequent Great Recession have had deep effects on European labour markets, with employment cuts (delayed, in some European countries, by labour-hoarding practices and working hours adjustments) and consequent increases in unemployment, which are likely to become persistent over time, at least partially. Labour market impacts of the crisis have been heterogeneous between and within countries due to institutional, structural and policy differences.
Contents
The Lectures will be dedicated to the theoretical and empirical analysis of the labour market institutional and policy differences in Europe before and during the last crisis. In particular, after few theoretical lectures, the course will try to involve the students in an empirical assessment of the evolution of European labour market performance at both national and regional level of investigation, considering the period 1997 (beginning of the European Employment Strategy) and the 2011 (last available data). In particular, the empirical part will be focused around three questions: (i) has there been a reversal in the dynamics of employment and unemployment, at the national and regional levels, during the crisis (2007–11) relative to the previous period (2003–07)? (ii) has there been a different behaviour between the western countries/regions of old EU states and the eastern countries/regions of NMS? (iii) are the differences between the two groups of countries related with structural or institutional variables?
The conclusion to the above three questions will arise key policy implications at European, national and regional (sub-national) levels. In the last two lessons the main policy implications will be discussed with the active participation of students.
