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"An infinite number of fitness apps are available on various app stores. However, hardly any of them are fitted to the needs and requirements of care-dependent peo-ple. This paper investigates the effectiveness of a customised fitness-app prototype for increasing physical activity in home care service users. Home care service users from Austria and Italy were randomly assigned to two groups. In total, 216 partici-pants were involved in the field trial, 104 received a tablet with the fitness app and an activity tracker (treatment group), 112 did not (control group). Regularity of physical activity, frequency of fitness exercises and walking behaviour were self- reported by participants at baseline, after 4 months and after 8 months. In addition, the frequency of using the prototype was assessed based on the fitness app's logged usage data. We estimated multilevel mixed-effects ordered logistic models to examine the effects of the intervention. After 4 months, the intervention increased the home care users’ probability of agreeing strongly with being physically active on a regular basis by 28 percentage points (p< 0.001; 95% CI: 0.20, 0.36) and their probability of reporting to exercise more than once a week by 45 percentage points (p< 0.001; 95% CI: 0.32, 0.57). Walking behaviour was not affected on group- level but improved for frequent users of the activity tracker. Frequent and regular users of the fitness app benefited most and effects persisted until the end of the 8 months controlled trial. Tailoring a fitness-app prototype to the needs of care-dependent people has the potential to support people with functional limitations to engage in a more active lifestyle. Future research is encouraged to seek further insights into how new technologies can sup-port physical activities in people with long-term care needs."

Reducing the energy demand has become a key mechanism for limiting climate change, but there are practical limitations associated with large energy savings in a growing global economy and, importantly, its lower-income parts. Using new data on energy and GDP, we show that adopting the same near-term low-energy growth trajectory in all regions in IPCC scenarios limiting global warming to 1.5 °C presents an unresolved policy challenge. We discuss this challenge of combining energy demand reductions with robust income growth for the 6.4 billion people in middle- and low-income countries in light of the reliance of economic development on industrialization. Our results highlight the importance of addressing limits to energy demand reduction in integrated assessment modelling when regional economic development is powered by industrialization and of instead exploring faster energy supply decarbonization. Insights from development economics and other disciplines could help generate plausible assumptions given the financial, investment and stability issues involved. Climate policy calls for energy demand reduction on top of decarbonizing energy generation. Analysis of historical energy–income data shows that achieving these climate targets alongside economic development poses unresolved policy and modelling challenges, especially for developing countries.

The Adult Social Care Outcomes Toolkit four response‐level interview schedule (ASCOT INT4) for service users was translated into Finnish. The aim of this paper was to investigate the construct validity and structural characteristics of the Finnish ASCOT. We used data from a face‐to‐face interview survey of older people receiving publicly funded home care services, which was conducted in 2016–2017 (n = 493), excluding missing values and proxy respondents (n = 334). Chi‐square tests, adjusted residuals and analyses of variance were used to examine hypothesised associations between each attribute and a number of relevant variables regarding health and well‐being, disabilities, living arrangements, social contact and support, experience of service use, and the nature of the locality and environment. Structural characteristics were explored using exploratory factor analysis and Cronbach's alpha test. The EQ‐5D‐3L and ASCOT were moderately correlated (r = 0.429; p < 0.001). The ASCOT attributes were statistically positively related to the overall quality of life. For other tested variables, we found a high number of significant associations with the control over daily life, occupation, social participation, and personal cleanliness attributes, but fewer significant associations with the other attributes. Cronbach's alpha was 0.697 and a single factor was extracted. This assessment provides evidence to support the construct validity of the Finnish ASCOT. The results support the introduction of the Finnish ASCOT into Finland for use in practical applications. Future research on its reliability would be useful.

Background: The Adult Social Care Outcomes Toolkit (ASCOT) measures quality-of-life (QoL) outcomes of long-term care (LTC) service provision. Country-specificpreference weights are required to calculate ASCOT scores. ASCOT has been translated into German, but lacks preference weights for German-speaking countries. Objectives: This paper aims to establish Austrian preference weights for the German version of the ASCOT service user measure, using best-worst scaling (BWS). Methods: Data were collected using an online BWS-experiment from a general population sample (n=1,000) of Austrian adults. We use a scale-adjusted multinomiallogit model (S-MNL) accounting for positioning effects to estimate preference weights. Results: Austrians value the top attribute-levels in the ASCOT domains 'being meaningfully occupied during the day' and 'having control over daily life' most highly,whereas high needs were the least preferred in the domains 'dignity' and 'social participation'. From a methods perspective, we found significant positioning effectsonly for 'best' choices, with statements at the top of a list being picked more often than those further down in the list. Factors related to survey completion (self-assessed understanding of the tasks and survey completion time) were shown to have the greatest effect on individual choice consistency. Discussion:The paper provides Austrian preference weights for the German version of ASCOT for service users. The weights also provide insight into how Austriansvalue different LTC-QoL states. Future research may investigate how values for different LTC-QoL states differ between socioeconomic groups.

Assets in the fossil fuel industries are at risk of losing market value due to unanticipated breakthroughs in renewable technology and governments stepping up climate policies in light of the Paris commitments to limit global warming to 1.5 or 2°C. Stranded assets arise due to uncertainty about the future timing of these two types of events and substantial intertemporal and intersectoral investment adjustment costs. Stranding of assets mostly affects the 20 biggest oil, gas, and coal companies who have been responsible for at least one-third of global warming since 1965, but it also affects carbon-intensive industries such as steel, aluminum, cement, plastics, and greenhouse horticulture. A disorderly transition to the carbon-free economy will lead to stranded assets and legal claims. Institutional investors should be aware of these financial risks. A broader definition of stranded assets also includes countries reliant on fossil fuel exports and workers with technology-specific skills.

Massive increases in Internet data traffic over the last years have led to rapidly rising electricity demand and CO2 emissions, giving rise to environmental externalities and network congestion costs. One particular concern is the rise in data traffic generated by video-streaming services. We analyze the electricity-saving potential related to video streaming in Europe from 2020 to 2030. To this end, three trend scenarios (Business-as-usual, Gray, and Green) are considered and modeled bottom-up, taking specific electricity consumption (and trends) of data transmission networks, end-use devices, and data centers into account. Using these scenarios, we examine in more detail the approximate electricity-saving impact that regulatory interventions and technical standards can have on the electricity consumption of end-users, network operators, and data centers. The model results reveal that regulatory intervention can have a significant impact on electricity consumption and CO2 emissions of the residential houshold sector.

There is evidence that training for strength and balance prevents decline in physical function in old age when the training is personally instructed. It is an open question whether interventions that deliver training via up-to-date technologies can achieve long-term effects. This study examined the effects of an 8-month fitness training program delivered via information and communication technology (ICT) on lower-body strength and balance in female home care users (n = 72) aged 75 years on average. For statistical analysis, the test group was divided into two subgroups, one who used the program at least 8 times per month (n = 26) and another one who used the program less often (n = 17) compared with a control group that received no exercise program (n = 29). It was found that regular ICT-exercisers exhibited positive effects over time on lower-body strength and balance compared to a decrease in both indicators in irregular exercisers and the control group. The authors see potential in offering exercise programs to people of advanced age via ICT to counteract physical decline in old age.

Published: 02 April 2018 This article provides evidence on the decision of consumers to move from an "old" (copper-based) to a "new" (fiber-based) broadband technology, taking into account the impact of regulatory interventions imposed on the old technology. The analysis in this article has been applied to a sample of EU25 (25 European Union member states) countries using panel data from 2003 to 2015 on the adoption of fiber-based broadband technology by households and firms. Results show that an increase in the regulated price for accessing the old network favors consumer adoption of the new technology. In particular, we find that an increase in the unbundling price of 10% increases fiber-based adoption in the range of 0.7%-1%. Our results also provide insights on the take-up rate of the new technology, i.e. on the ratio between adopted and deployed fiber-based services and networks. By comparing the quantitative effects of regulation, we find that an increase in the access price decreases the take-up rate, meaning that the impact on fiber coverage is stronger than on fiber adoption.

Background: A growing number of older people, mainly women, live in single households. They represent avulnerable group as staying at home may turn out challenging when care needs increase, particularly at the end oflife. Non-kin-carers can play an essential role in supporting individuals’preferences to stay at home. In research littleattention has been paid to non-kin-carers, such as friends and neighbors, yet. Thus, the Older People Living Alone (OPLA) study will evaluate whether non-kin support is robust enough to enable care dependent people to stay athome even at the end of life. This paper aims to introduce the research protocol. Methods: We plan to apply a qualitative longitudinal study to better understand how older people living aloneand their non-kin-carers manage to face the challenges with increased care needs towards the end-of-life. We willconduct serial interviews with the older persons living alone and their non-kin-carers. A total of 20–25 completedata sets and up to 200 personal interviews were planned. These will be complemented by regular telephonecontacts. All interviews will be analysed following the grounded theory approach and strategies for reconstructingcase trajectories, supported by MAXQDA software. In the course of the study, inter- and transdisciplinary workshopsshall assure quality and support knowledge transfer. Discussion:This study protocol aims to guide research in a field that is difficult to approach, with regard to itstopic, methodology and the interdisciplinary approach. As this study introduces longitudinal qualitative researchmethodology in the field of home care in Austria, a deeper understanding of (end-of-life-) care trajectories will beenhanced, which is of major relevance for future care planning. With investment in additional reflexivity andcommunication procedures innovative results and robust knowledge are expected outcomes.

We evaluate the impact of a major European state aid programme for speed upgrades in broadband internet availability applied to rural areas in the German state of Bavaria throughout 2010 and 2011. We use a matched difference-in-differences estimation strategy that compares treated and untreated municipalities that are balanced with respect to funding criteria. We find that aided municipalities have a significantly higher broadband coverage at higher speed than non-aided municipalities. This increase in broadband coverage does not, on average, benefit the local population in terms of increase in local jobs per resident or wages. However, these effects are heterogeneous across skill groups. Furthermore, we find positive effects on the employment rate among residents. Taking these results together suggests that an increase in broadband coverage through state aid protects rural areas from depopulation (while residents work at other locations), but does not contribute to a further closing of the economic divide in the form of creating new jobs.

In a real effort lab and online team production experiment, we analyze exerted effort under different conditions of individual accountability. In a repeated setting, we vary the degree to which production can be directly traced back to a collaborator’s individual or randomly drawn effort level, respectively. We find that individuals produce much less and the decline of effort over time is significantly steeper under high as compared to low and endogenously chosen personal accountability. While endogenous accountability provides an option for monitoring others, it does not force subjects to learn about their under-performing peers, thus limiting the typical decline of contributions over time. We conclude that accountability one step removed may be an interesting institutional setting for repeated collaborations in contexts where low accountability for political, social or legal reasons is not a viable option. (author's abstract)

ArgumentThis paper argues that the economics discipline is highly concentrated, which may inhibit scientific innovation and change in the future. The argument is based on an empirical investigation of six dimensions of concentration in economics between 1956 and 2016 using a large-scale data set. The results show that North America accounts for nearly half of all articles and three quarters of all citations. Twenty institutions reap a share of 42 percent of citations, five journals a share of 28.5 percent, and 100 authors a share of 15.5 percent. A total of 2.8 percent of citations may be attributed to heterodox schools of thought. Also top articles are concentrated along these dimensions. Overall, concentration has strongly increased over the last six decades.

European countries have developed a range of long-term care (LTC) policy responses to support the increasing share of older people. However, little is known about the effectiveness of LTC services and benefits, particularly their impact on older peoples’ quality of life (QoL). This paper investigates the role of personal, care service and environmental characteristics on the effects of home care services on QoL across England, Finland and Austria. We used data from surveys conducted in England, Finland and Austria. In total, 811 older adults were included in the analysis. OLS regression including main effects and country-specific interactions was used to explore variation in gains in long-term care service-related quality-of-life (LTC-QoL). Explanatory variables were derived from the production of welfare framework and comprised home care service user socio-demographics, needs indicators, social support and environmental variables and characteristics of home care service provision. In all three countries, LTC-QoL gains increased with needs, indicating that home care services perform well, with additional gains declining the higher the needs. Also, better process quality contributed to LTC-QoL improvements in all three countries. In addition, the availability of informal care, social contact, financial household situation and living alone, were associated with changes in LTC-QoL only in one or two of the countries. Home care services increased service users’ QoL in all three European countries. The increase in QoL, however, varied across the countries. The results also provide insights into the benefits and limits of home care service provision and areas for future improvements. JEL: I31, I38, J14

Background: The emergency call feature of CARU, a voice-assistant and smart sensor, was developed by CARU AG (Switzerland, Europe). The feature is innovative as it allows older people to call for help using their voice only. Little, however, is systematically known aboutthe acceptance of CARU’s emergency feature in older adults living in assisted living facilities. Objective: The aim of this deliverable is to report on the results of the acceptance test (ACTEST) in Switzerland in older adults using the CARU emergency call in their apartments. Methods: The ACTEST lasted two months (September to November 2020). The ACTEST survey was administered in two waves. ACTEST I included test scenarios for test emergency calls from different rooms followed by survey questions. ACTEST II consisted of survey questions only. Using UTAUT2 as a conceptual model, data on acceptance indicators and predictors were collected from more than 20 customers (in 4 assisted living facilities) of the bonacasa AG, a provider of smart living services, via online-surveys. Quantitative data were analyzed using descriptive, bivariate and multivariate methods. In addition, a short questionnaire captured the view of bonacasa’s 24/7 emergency call centre staff. Results: The results show that trial participants could recall how to trigger the alarm but experienced difficulties with being detected by the CARU sensor, particularly at the first attempt. Most of the successful alarms were triggered from the room within which the CARU sensor was placed. If a connection could be established, both the guidance by CARU and the emergency service centre staff were understood clearly. Most participants rated the emergency call via CARU as easy to learn. However, acceptance, measured as intention to use, was rated very low. Ratings differed substantially across assisted living facilities.

In this chapter, I investigate the role of economists in public discourses. Conceptually, I draw on the recent ‘cultural turns’ in regulation theory and post-Marxist thinking, and in particular the work of Bob Jessop and Antonio Gramsci in their discussion of intellectuals and their role in society. Empirically, the role of economists is investigated drawing on the example of wealth and inheritance taxation in the German press in the beginning of the 21st century. The empirical analysis shows that well-known economists frequently occur in the newspaper coverage. Furthermore, a stark dominance of economists associated with mainstream economics and ordoliberalism over post-Keynesian and other heterodox economists is revealed. Given the role of economists as organic intellectuals in the political economy, this points to a continuing legitimation and normalisation of the structural power of the capital class to assert their interests regarding low wealth and inheritance taxation.

Residualization refers to the process whereby publicly subsidized rental housing moves towards a position in which it provides only a safety net for low-income households. In this paper we quantify residualization based on the income profile of households in the below market rates (BMR) rental sector. Various residualization indicators for 12 European countries from EU-SILC data are calculated. First, we explore the effect of the size of the BMR sector and the cost of alternative tenure types on residualization. Second, we investigate if there are similar trends of residualization from 2005 to 2016. We find that decreases in the share of the BMR sector are associated with significant increases in residualization. Increases in rent differences between the BMR and market rate rental sector are related to larger degrees of residualization. We further observe a rising level of residualization for most countries. However, countries with allocation systems that aim at broader income groups still display the lowest degree of residualization.

What is the impact of trade policy in developing countries? We address the question in the context of interwar India, whose trade policies have been accused of harming British export interests. We quantify the impact of trade policy on the value and composition of Indian imports, using novel disaggregated data on both trade policies and imports for 114 commodity categories coming from 42 countries. Indian trade elasticities were generally larger than those in the United Kingdom at the same time. We find that even though Indian protection lowered total imports, it sub- stantially boosted imports from the UK. Trade policy had a big impact on trade flows.

This working paper – like its companion, Caldwell and Klausinger 2021 – grew out of the authors’ joint work on Hayek: A Life, 1899–1950 (Caldwell and Klausinger 2022) and it contains material supplementing it. This paper draws to a large extent on Friedrich Hayek’s own investigations into the genealogical roots of his family. On the paternal side the family ancestry is traced back to the ennoblement of Friedrich’s great-great-grandfather Josef Hayek in 1789. On the maternal side we enquire into the family trees of Fritz’s grandfather Franz von Juraschek and his first and second wife, Johanna Stallner and Ida Pokorny. Finally, we look at the relationship between Fritz and two of his “distant cousins,” the philosopher Ludwig Wittgenstein and Fritz’s girlfriend in his youth and future second wife, Helene (“Lenerl”) Bitterlich.

The deployment of new broadband networks (NBNs) based on fiber-optic transmission technologies promises high gains in terms of productivity and economic growth, and has attracted subsidies worth billions from governments around the world in the form of various state aid programs. Yet, the effectiveness and the efficiency of such programs remains largely unstudied. We employ panel data from 32 OECD countries during 2002-2019 to provide robust empirical evidence of both. We find that state aid significantly increases NBNs by facilitating the deployment of new connections to 22% of households in the short term and 39.2% in the long term. By comparing the actual amounts of state aid support to the estimated impact on GDP growth, we also find it to be highly cost efficient, as the programs break even after three years on average.

The paper builds Distributional National Accounts (DINA) using household survey data. We present a transparent and reproducible methodology to construct DINA whenever administrative tax data are not available for research and apply it to various European countries. By doing so, we build synthetic microdata files which cover the entire distribution, include all income components individually aligned to national accounts, and preserve the detailed socioeconomic information available in the surveys. The methodology uses harmonized and publicly available data sources (SILC, HFCS) and provides highly comparable results. We discuss the methodological steps and their impact on the income distribution. In particular, we highlight the effects of imputations and the adjustment of the variables to national accounts totals. Furthermore, we compare different income concepts of both the DINA and EG-DNA approach of the OECD in a consistent way. Our results confirm that constructing DINA is crucial to get a better picture of the income distribution. Our methodology is well suited to build synthetic microdata files which can be used for policy evaluation like social impact analysis and microsimulation.

This working paper – like its companion, Caldwell and Klausinger 2021 – grew out of the authors’ joint work on Hayek: A Life 1899–1950 (Caldwell and Klausinger 2022) and it contains material supplementing it. This paper examines the intellectual circles of fin-desiécle Vienna in which the Hayek family moved and which therefore shaped Fritz’s education. After looking at the academics within the Hayek family we turn towards the intellectual communities in which Friedrich’s father, August von Hayek, participated. Here we focus on the various associations of biologists and botanists and on the so-called “Brunnwinkl community.” We show that participation in these circles resulted in Fritz coming in close contact with future Nobel prize winners like Erwin Schrödinger, Karl von Frisch and Konrad Lorenz. Austrian School economists Eugen von Böhm-Bawerk and Friedrich von Wieser were also among the close friends of the Hayek family. Finally, we point out a link to Austria’s early liberal women’s movement.

Increasingly, the estimation of household equivalence scales relies on subjec-tive data. This approach challenges not only traditional methodology, but alsoprovides systematically lower estimates of household needs compared to othermethods. I offer a novel take on this puzzle and argue that the failure to accountfor private wealth in subjective measurement is part of the explanation of whyhousehold financial needs appear to be low. Wealthy survey respondents claimto be satisfied with less income, as they can draw on their asset buffer to main-tain a given living standard. Capitalising on SOEP survey data, I find that thefinancial needs of a household comprising five members relative to a referencehousehold might be underestimated by up to 20% if wealth is not accountedfor. Equivalence scales are central to poverty and inequality measurement, thedesign of social transfer systems and many other applications. Therefore, it iscrucial to account for asset ownership when drawing on estimates that rely onthe subjective methodology.

Background: The emergency call feature of CARU, a voice-assistant and smart sensor developed by CARU AG (Switzerland, Europe), is available on the market. The feature is innovative as it allows older people to call for help using their voice. There is, however, still little systematic research on the degree of acceptance of CARU’s emergency call feature and factors influencing this acceptance, particularly in assisted living environments. Objectives: The aim of this paper is to lay out the trial and validation criteria for the test of the operative readiness and the acceptance of the emergency call feature in Switzerland (ACTEST). More specifically, it explains the study design for the field trial and the proposed criteria for evaluating the acceptance of CARU’s emergency call feature. This document also contains the proposed timeline for the field trial. Methods: The target group for the ACTEST are residents of bonacasa, aged 60+ who already have experience with an emergency call system or are interested in using such a system. According to the proposal, the sample should consist of at least 20 trial participants and 5 members of staff (concierges) of bonacasa. Recruitment will be conducted by bonacasa, a training and roll-out concept will be provided by CARU AG. Vienna University of Economics and Business (WU) is responsible for the trial design and data analyses. Quantitative data will be collected using functionality tests (test-scenarios) and online surveys. Two waves of online data collection will be conducted by bonacasa concierges using computer-aided standardized face-to-face interviews. Measures and influencing factors for acceptance will be derived from the UTAUT2 model. In addition, data from a qualitative interview with bonacasa’s 24/7 emergency call center will be collected by HSLU. The ACTEST will start in September 2020 and will last for two months.

If global warming is to stay below 2 °C, there are four risks of assets stranding. First, substantial fossil fuel reserves will be stranded at the end of the fossil era. Second, this is true for exploration capital too. Third, unanticipated changes in present or expected climate policy cause discrete jumps in today's valuation of physical and natural capital. Fourth, if timing and intensity of climate policy are uncertain, revaluation of assets occurs as uncertainty about future climate policy is resolved. To highlight these four effects, we use an analytical model of investment in exploration capital with intertemporal adjustment costs, reserves depletion and market capitalization, and calibrate it to the global oil and gas industry. Climate policy implements a carbon budget commensurate with 2 °C peak warming and we allow for immediate or delayed carbon taxes and renewable subsidies. The social welfare ranking of these instruments is inverse to that of the oil and gas industry which prefers renewable subsidy and delaying taxes for as long as possible. We also pay attention to how the legislative “risk” of tipping into policy action affects the timing of the end of the fossil era, the profitability of existing capital, and green paradox effects.

This paper investigates the effects of double tax treaties (DTTs) on foreign direct investment (FDI) after controlling for their relevance in the presence of treaty shopping. DTTs cannot be considered a bilateral issue, but must be viewed as a network. We define tax distance as the cost of channelling corporate income from one country to another and, by considering treaty shopping through intermediate jurisdictions, we calculate the shortest (i.e. the cheapest) distance between any two countries. We show that relevant tax treaties—which reduce the direct tax distance both over domestic law and the entire existing treaty network—will increase FDI by about 18%.

To address the challenges of aging societies, various information and communication technology (ICT)-based systems for older people have been developed in recent years. Currently, the evaluation of these so-called active and assisted living (AAL) systems usually focuses on the analyses of usability and acceptance, while some also assess their impact. Little is known about the actual take-up of these assistive technologies. This paper presents a framework for measuring the take-up by analyzing the actual usage of AAL systems. This evaluation framework covers detailed information regarding the entire process including usage data logging, data preparation, and usage data analysis. We applied the framework on the AAL prototype CARIMO for measuring its take-up during an eight-month field trial in Austria and Italy. The framework was designed to guide systematic, comparable, and reproducible usage data evaluation in the AAL field, however, the general applicability of the framework has yet to be validated.

Climate policy has been mainly studied with economic models that assume representative, rational agents. Such policy aims, though, at changing carbon-intensive consumption and production patterns driven by bounded rationality and other-regarding preferences, such as status and imitation. To examine climate policy under such alternative behavioral assumptions, we develop a model tool by adapting an existing general-purpose macroeconomic multi-agent model. The resulting tool allows testing various climate policies in terms of combined climate and economic performance. The model is particularly suitable to address the distributional impacts of climate policies, not only because populations of many agents are included, but also as these are composed of different classes of households. The approach accounts for two types of innovations, which improve either the carbon or labor intensity of production. We simulate policy scenarios with distinct combinations of carbon taxation, a reduction of labor taxes, subsidies for green innovation, a price subsidy to consumers for less carbon-intensive products, and green government procurement. The results show pronounced differences with those obtained by rational-agent model studies. It turns out that a supply-oriented subsidy for green innovation, funded by the revenues of a carbon tax, results in a significant reduction of carbon emissions without causing negative effects on employment. On the contrary, demand-oriented subsidies for adopting greener technologies, funded in the same manner, result in either none or considerably less reduction of carbon emissions and may even lead to higher unemployment. Our study also contributes insight on a potential double dividend of shifting taxes from labor to carbon.

The 2nd iteration of the Ethics Manual presents ethical topics that arose during the process of developing functions for CARU to be tested in 2 field trials. The business perspective of testing minimum viable products and using an US-service for speech-to-text and text-to speech transfers has caused issues which needed to be discussed with data protection experts. Several CARUcares partners have involved legal experts and shared their statements about the issue. The end users of the care sector raised a major concern about data protection even in the testing phases, as real data are planned to be used. For business and development partners, it is necessary to define useful features in the field trials before investing in the development of an internal speech recognition (not using an additional service). Furthermore, the effects on predefined ethical aspects in the MEESTAR model presented in Del. 2.4.1. are considered in this deliverable.

By using a randomized controlled trial we test the impact of three treatments on financial literacy (knowledge, attitudes, reported behavior) among adolescents in Austria. Treatments comprise a documentary movie on debt, an internet exercise and a budgeting smartphone app. It is investigated if particularly the latter two instruments could serve as standalone alternatives (nudges) to conventional teaching interventions. Users of the budgeting app report to check their current account balance significantly more often than the control group. The web exercise, however, neither raises interest in personal finance issues nor significantly increases basic financial knowledge. The documentary movie did not affect attitudes towards saving or private credits. Even if it is only about raising awareness and interest in financial matters among adolescents, the ICT applications tested in this study thus do not lend strong support to policies solely relying on digital “stand-alone” solutions of similar design.

A simple rule for the optimal global price of carbon is presented, which captures the geo-physical, economic, and ethical drivers of climate policy as well as the effect of uncertainty about future growth of consumption. There is also a discussion of the optimal carbon budget and the amount of unburnable carbon and stranded fossil fuel reserves and a back-on-the-envelope expression are given for calculating these. It is also shown how one can derive the end of the carbon era and peak warming. This simple arithmetic for determining climate policy is meant to complement the simulations of large-scale integrated assessment model, and to give analytical understanding of the key determinants of climate policy. The simple rules perform very well in a full integrated assessment model. It is also shown how to take account of a 2 °C upper limit on global warming. Steady increases in the efficiency of labour do not affect the optimal price of carbon or the safe carbon budget, but do postpone the carbon-free era., Series: Ecological Economic Papers

We study the impact of macroprudential policies using a novel model which takes into account households’ ability to borrow under different loan-to-value ratios which are tied to their collateral values. Such model generates a larger amplification in real and financial variables, compared to standard models that assume homogeneity in the leveraging and deleveraging process. Conditional on this model, we consider the implications of macroprudential policies that aim to lean against an excessive credit cycle. In particular, we allow macroprudential authorities to tighten excessive lending to higher leveraged households, whose riskiness had been evaluated too optimistically. We find that a policy that targets only the group of households that most strongly deleveraged after an adverse idiosyncratic housing investment risk shock, is welfare-improving at social and individual levels, relative to a macroprudential policy which targets all households in the economy.

We present a model based on Keynesian aggregate demand and labor productivity growth to study how climate damage affects the long-run evolution of the economy. Climate change induced by greenhouse gas lowers profitability, reducing investment and cutting output in the short and long runs. Short-run employment falls due to deficient demand. In the long run productivity growth is slower, lowering potential income levels. Climate policy can increase incomes and employment in the short and long runs while a continuation of business-as-usual leads to a dystopian income distribution with affluence for few and high levels of unemployment for the rest.

This paper investigates the determinants of success and failure of crowdfunding. We have drawn a random sample of 120 crowdfunding initiatives from the crowdfunding platforms Kickstarter and Indiegogo. We extracted relevant characteristics of the project and tracked their performance over a 30 day period. Using probit models, GLS estimators and dynamic panel methods, we estimated success probabilities. We found that crowdfunding is extremely persistent, and early success in attracting financing will improve the chance to get funded in the end. Presentation and instant gratification matters, as do moderate financial goals. We have not found any sectoral bias, which would be a direct indication of market inefficiencies. However, we observe a bias towards projects launched by all male project teams. There are no obvious explanations for this gap, so we must conclude that crowdfunding exhibits a gender bias.