International student mobility is the most recognised element of Erasmus+, a major EU policy. Not enough is known about the causal effect of studying abroad on labour market outcomes. This is because most of the existing studies dismiss selection bias: the different composition of students...

The relation between income inequality and support for redistributive policies has long being debated by social scientists, albeit with mostly contrasting findings. We shed light on this puzzle by exploiting a novel EU-28 wide survey (Eurobarometer 471) and matching it with an array of regional...

The financial system plays a major role in the transition to a low-carbon economy. We investigate this issue analysing the recent developments and challenges in the bond and debt markets. First, we study the pricing of green bonds at issuance. We find a premium when green bonds are issued by...

We propose a simple model that captures the link between bank and sovereign credit risk. It allows evaluating policy options to address this ‘doom loop’ in which the government may need to raise debt to recapitalise banks, and an increase in government debt raises sovereign risk and in turn...

The aim of this paper is to study the distribution of portfolio returns across portfolios and for given asset returns. We focus on the most common type of investment considering portfolios whose weights are non-negative and sum up to 1. We provide algorithms and formulas from computational...

Mainstream monitoring of income dynamics and inequality is based on summary measures that can miss important phenomena prevalent in income distributions. Relying on quantile functions and the adapted statistical framework suggested by Szekely and Rizzo (2004), we characterize the change and...

Drawing on a model in which utility is derived from consumption and effort (labor supply), we ask how the deportation of a number of undocumented migrants influences the decisions regarding labor supply, consumption, and savings of the remaining undocumented migrants. We assume that the...

Assuming that an individual's rank in the wealth distribution is the only factor determining the individual's wellbeing, we analyze the individual's risk preferences in relation to gaining or losing rank, rather than the individual's risk preferences towards gaining or losing absolute wealth. We...

We provide new evidence of worker-firm matching based on preferences, attitudes and personality traits using new, representative matched employer-employee data from Germany. Time-constant firm characteristics explain a significant proportion of total variance in a series of outcome variables...

Combining a standard measure of concern about low relative wealth and a standard measure of relative risk aversion leads to a novel explanation of variation in risk-taking behavior identified and documented by social psychologists and economists. We obtain two results: (1) Holding individual i's...