Central European Journal of Economic Modelling and Econometrics

We study the migrants' assimilation, which we conceptualize as forming human capital productive on the labor market of a developed host country, and we link the observed frequent lack of assimilation with the relative deprivation that the migrants start to feel when they move in social space towards the natives. We presume that the native population is heterogeneous and consists of high-skill and low-skill workers. The presence of assimilated migrants might shape the comparison group of the natives, influencing the relative deprivation of the low-skill workers and, in consequence, the choice to form human capital and become highly skilled. To analyse this interrelation between assimilation choices of migrants and skill formation of natives, we construct a coevolutionary model of the open-to-migration economy. Showing that the economy might end up in a non-assimilation equilibrium, we discuss welfare consequences of an assimilation policy funded from tax levied on the native population. We identify conditions under which such costly policy can bring the migrants to assimilation and at the same time increase the welfare of the natives, even though the incomes of the former take a beating.

The study attempts to link the descriptive economics with the
theoretical model of permanent income and life cycle hypothesis (PILCH)
to shed some light on a low private savings rate for Polish households.
These may be explained by the households' belief that the public pension
are a collateral to borrow against, which could discourage the buffer
stock effect. The study comprises two research fields: 1) the estimation
of so called augmented wealth, and, 2) the marginal propensity to
consume (MPC) out of different types of wealth with the permanent income
model. The mean augmented wealth (i.e. net wealth plus public pension
wealth) per household in PLN amounted to 705 thousands, consisting of
public pension wealth of 388 thousands and net wealth of 415 thousands.
The model perfectly matches the augmented wealth Lorenz curve. The
average MPC out of all types of wealth reaches 10% on average, ranging
6-20%, with a negative MPC to wealth correlation, and 60% of
hand-to-mouth households. The explanation for this perfect match may
stem from a high wage growth (also public pension contributions wedge)
that that builds the public pension wealth. The Ricardian-type
households may then mentally account the future pensions as a collateral
(fiduciary money) for current high MPC, which may implicate crowding out
their propensity to save for retirement privately.

Recent studies have shown that announcements of information about the
state of the US economy have had a significant impact on European stock
markets. However, the importance of information about the US economy may
vary in time. In order to analyze this issue, we examine the impact of
announcements of unexpected US macroeconomic news on the prices of
selected stocks listed on the Vienna Stocks Exchange. On the basis of
the 5-minute returns of 13 stocks we examine how the strength and the
significance of the reactions of investors to unexpected macroeconomic
news from the US has changed over the last 15 years. Event study
methodology allows us to describe precisely such reactions in the first
minutes after news announcements.

This research analyzes factors affecting the scientific success of
central bankers. We combine data from the RePEc and EDIRC databases,
which contain information about economic publications of authors from
182 central banks. We construct a dataset containing information about
3312 authors and almost 80,000 scientific papers published between 1965
and 2020. The results from Poisson regressions of citation impact
measure (called the h-index) on a number of research features
suggest that economists from the U.S. Federal Reserve Banks,
international financial institutions, and some eurozone central banks
are cited more frequently than economists with similar characteristics
from central banks located in emerging markets. Researchers from some
big emerging economies like Russia or Indonesia are cited particularly
infrequently by the scientific community. Beyond these outcomes, we
identify a significant positive relationship between research networking
and publication success. Moreover, economists cooperating with highly
cited scientists also obtain a high number of citations even after
controlling for the size of their research networks.