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The purpose of this paper is to understand the impending relationship between the impact of the US–China trade war on Taiwanese firms' spending on R&D and their offshore investment in technologically advanced countries (TAC), the authors examined if changes in these firms' R&D ratios and the growing presence of skilled workers in Taiwan's labour market during the trade war have affected their offshore investments in TAC.

Using a model built on pooled cross-sectional time-series data from 2012–2019, the authors examined whether a change in R&D ratios of domestic firms in Taiwan and the growing presence of skilled workers in Taiwan's labour market have affected the offshore investment by these firms during the trade war. Using data from the Manpower Utilisation Survey, the authors applied differences–in–differences–in–differences and differences–in–differences–in–differences–in–differences estimation methods and found that the trade war indeed gave a boost to Taiwan's job market, particularly for skilled workers.

From the estimation results, the authors noticed a rise in employment opportunities alongside a decline in the earnings of skilled workers in industries where more firms have spent on R&D as well as invested in offshore operations. However, firms in Taiwan that had not heavily spent on R&D from industries where investment in foreign operations was otherwise high have also attracted skilled workers during the trade war.

An in-depth analysis of the impact of the trade war on domestic firms' spending on R&D and their investment in offshore operations in TAC should be helpful to policymakers interested in understanding the effects of the trade war and subsequent changes in firms' spending on R&D on labour market outcomes. If changes in the R&D ratios and a steady supply of skilled workers influenced the outflow of Foreign Direct Investment (FDI) to TAC, this insight could be helpful for those devising policies and measures to curb the impact of the trade war on domestic spending on R&D.

The study findings not only provide broad lessons to policymakers in Taiwan, but the country case study can guide growing economies that are equally careful while perceiving trade war as a significant deterrent to domestic R&D spending and the outflow of FDI.

This research assesses the economic impact of biomass plant installations on Brazilian municipalities, focusing on (1) labor income, (2) sectoral labor income and (3) income inequality.

Municipal data from the Annual Social Information Report, the National Electric Energy Agency and the National Institute of Meteorology spanning 2002 to 2020 are utilized. The Synthetic Difference-in-Differences methodology is employed for empirical analysis, and robustness checks are conducted using the Doubly Robust Difference in Differences and the Double/Debiased Machine Learning methods.

The findings reveal that biomass plant installations lead to an average annual increase of approximately R$688.00 in formal workers' wages and reduce formal income inequality, with notable benefits observed for workers in the industry and agriculture sectors. The robustness tests support and validate the primary results, highlighting the positive implications of renewable energy integration on economic development in the studied municipalities.

This article represents a groundbreaking contribution to the existing literature as it pioneers the identification of the impact of biomass plant installation on formal employment income and local economic development in Brazil. To the best of our knowledge, this study is the first to uncover such effects. Moreover, the authors comprehensively examine sectoral implications and formal income inequality.

Credit is an essential element in the production process in agriculture. There are two sources from which farm households can access credit: institutional sources and non-institutional or informal sources of credit. The informal sources of credit, such as moneylenders, charge exorbitant rates of interest, which further puts a financial burden on the farmers. Hence, to increase the flow of credit from institutional sources, a policy known as the interest subvention scheme (ISS) was introduced in the year 2006. This paper aims to find the effect of the ISS on the behaviour of farm households.

The author has used difference-in-difference analysis for estimation. In the analysis, the author has taken Madhya Pradesh as the treatment state and Andhra Pradesh as the controlled state. The author has used the Village Dynamics in South Asia (VDSA) dataset of ICRISAT for analysis. The author has used data from 2009 to 2014 for the two states.

The author has found that the difference between the average interest rate of Andhra Pradesh and Madhya Pradesh is significant for both pre-treatment and post-treatment periods and this gap has increased after the intervention period. The results suggest that the share of informal sector borrowings has reduced in the treatment group (Madhya Pradesh) as compared to the control group (Andhra Pradesh) in the post-treatment period.

This paper is particularly important because of the dearth of literature on the impact of this scheme in India and may shed light on the much-needed policy implications of this particular policy.

This study aims to examine the impact of housing construction on single-family housing values and the implications for urban development.

To achieve this objective, the author used the difference-in-difference methodology to examine the effect of multifamily and single-family housing construction on surrounding single-family homes in Stockholm, Sweden. The author analysed data from approximately 480 housing construction projects between 2009 and 2014 and 17,000 single-family detached house transactions between 2005 and 2018.

The research found that multifamily construction projects did not affect the value of surrounding single-family homes, while single-family home construction had a negative impact. The author attributes this result to single-family housing projects typically located in areas with initially positive externalities, while multifamily housing projects are often located on the edge of areas with negative externalities before construction.

The research is limited by its focus on a specific geographic area and time frame, and future research could expand the scope to include other cities and regions and different periods. Additionally, further research could examine the impact of housing construction on other economic factors beyond housing values.

The research has practical implications for urban planners and policymakers. They should consider the potential negative impact of new single-family home construction on existing single-family housing areas while balancing the need for new housing in urban areas. By carefully evaluating construction locations, policymakers can create more sustainable, livable and equitable urban environments that benefit all members of society.

This research paper contributes to the field of housing economics by examining the impact of housing construction on single-family housing values in the context of urban development and climate change mitigation. Using a difference-in-difference methodology, the study provides evidence of the price effect of multifamily and single-family housing construction on surrounding single-family homes, which has important policy implications for urban planners and policymakers. By identifying the negative impact of single-family home construction on surrounding areas and highlighting the need for careful evaluation of construction locations, the research provides valuable insights for creating sustainable, livable and equitable urban environments that benefit all members of society.

The purpose of this study is to find out the effect of consumption tax on savings behavior especially on the people who are close to their retirement.

The authors analyze the response in spending and retirement saving using a difference-in-differences regression methodology. The authors use the year since the Public Provident Fund (PPF) enrollment date for each individual as a random assignment to identify the service tax policy's causal impact. Therefore, this variable is a continuous variable defined as an individual's age until the end of the restrictions when people can withdraw money from their retirement savings account PPF without any penalty. The treatment variable is the service tax shock (increase in service tax) that happened effective 1st April 2015.

The authors find a significant effect of a change in the service tax rate on individuals' spending and PPF saving behavior. On average, individuals lower their consumption by about 14% and increase their PPF savings by 16% in response to the increase in the service tax rate. The authors find substantial heterogeneity in effect across different types of individuals. The effect is more pronounced for people closer to their retirement and needy people (defined as individuals with low traditional savings account balances).

The authors studied the effect of consumption tax on one category of savings (PPF) only. There are other savings instruments available in India. The data for those were not available to us.

This paper not only throws light on the consumption and savings behaviour of the individuals, but will also help the policy maker for framing appropriate fiscal policy.

Using a unique and proprietary data from a large bank in India, the authors analyze the effect of a tax policy change on households' consumption and retirement savings behavior. The authors find that households reduce their consumption by 14% and increase their voluntary retirement savings (Public Provident Fund aka PPF) by 16% in response to an increase in the service tax policy. Individuals close to their retirement age (55 years of age and above) and without any withdrawal restrictions from their PPF account tend to reduce their expenditures more and save more. Individuals with financial constraints and withdrawal restrictions do not reduce their expenditures significantly. To the best of the authors’ knowledge no study was done on this.

This study aims to clarify the impact of agriculture–tourism integration (ATI) on in situ urbanization (ISURB) of rural residents, to highlight the role of industrial integration in the process of China's ISURB and to provide industrial integration suggestions for promoting urbanization quality in Chinese counties.

By sorting out the panel data of China's 1868 counties, the evaluation index system of ISURB was constructed. Difference in difference (DID) and spatial Durbin-difference in difference (SDM-DID) model is used for estimate the relationship between ATI and ISURB.

First, ATI can improve ISURB by 11.4% higher than other regions. Second, theoretical analysis model of ATI on ISURB is constructed from four aspects of “drive–push–pull–block.” The results show that ATI can promote ISURB by increasing upgrading of rural industries, rural employment demand and income capacity, whereas ATI may inhibit ISURB by reducing farmland. Third, considering changes in institutional, hard and soft factors, rural collective economy, information infrastructure and digital finance all promote positive impact of ATI on ISURB. Fourth, ATI will produce spillover effects on ISURB in neighboring regions, which is more pronounced in the central and western regions.

This study lacks quantification of ATI, so future studies are encouraged to further quantify ATI at the county level.

This study has policy significance for constructing ATI demonstration counties and promoting ISURB in China's counties.

It is of great practical value to promote China's ISURB. By stimulating ATI, it can improve income and employment capacity of rural residents and stimulate ISURB of China.

This study enriches the theoretical and practical research on industrial integration behaviors during the process of ISURB.

1. Use county data to measure in situ urbanization (ISURB)

2. Agriculture–tourism integration (ATI) can increase ISURB

3. Constructs a “drive-push-pull-block” model to explain the influence mechanism

4. Use spatial Durbin-difference in difference (SDM-DID) models

5. Consider collective economy, rural information infrastructure and digital finance

Use county data to measure in situ urbanization (ISURB)

Agriculture–tourism integration (ATI) can increase ISURB

Constructs a “drive-push-pull-block” model to explain the influence mechanism

Use spatial Durbin-difference in difference (SDM-DID) models

Consider collective economy, rural information infrastructure and digital finance

The purpose of this paper is to investigate the impact of the COVID-19 pandemic on company innovation, specifically centering on the quantity and quality of innovation. The paper aims to provide a comprehensive understanding of whether the epidemic inhibits innovation and the role of digital transformation in mitigating this negative impact.

The paper uses a quasi-experimental study of the COVID-19 pandemic and constructs a differential model to analyze the relationship between the epidemic and firm innovation in three dimensions: total, quantity and quality. The paper also uses a difference-in-difference-in-differences model to test whether digital transformation of firms mitigates the negative impact of the epidemic and its mechanism of action.

The results show that COVID-19 significantly reduced the overall level of firm innovation, primarily in terms of quantity rather than quality. Furthermore, this study finds that digital transformation plays a pivotal role in mitigating the pandemic’s adverse impact on innovation. By addressing financing constraints and countering demand insufficiency, digital transformation acts as a catalyst for preserving and fostering innovation during and after the pandemic.

This study extends the current research on the pandemic’s impact on firm innovation at the micro level. It offers valuable insights into strategies for fostering digital transformation among Chinese enterprises in the post-pandemic era.

This study aims to investigate whether the cash flow forecasts (CFF) of analysts can disseminate valuable information to the information environments of companies.

The author uses empirical archival methodology to conduct differences-in-difference analyses.

It is found that information asymmetry decreases in the treatment group following the initiation of CFF during the postperiod, which is consistent with the hypothesis of this paper.

To the best of the author’s knowledge, this study is the first among the cash flow forecast studies to demonstrate the usefulness of CFF in the mitigation of information asymmetry, a friction that is widespread in capital markets.

Environmental, social and governance (ESG) issues have become the cornerstone of investment decisions in firms today. With that, publicly traded ESG indices (like the BSE ESG 100 index in India) have come into existence. The existing literature signifies that ESG generates financial implications and induces stability. The current study aims to test whether the firms listed on the ESG index (ESG-sensitive firms) face less financial distress than those not listed on such an index.

The study applies panel data difference-in-differences (DID) regression by considering ESG as an unstaggered treatment to 74 non-financial firms listed on India's Bombay Stock Exchanges (BSE) 100 index. In total, 42 firms are ESG treated as they got listed on the BSE ESG 100 index, formed in 2017. The remaining 32 firms form the control group. The confidence intervals and standard errors are estimated using clustered robust errors and the Donald and Lang method.

Listing on the ESG index matters for financial stability; differences in financial distress are significant on financial distress. ESG-sensitive firms face less financial distress than non-ESG firms (or firms not perceived as ESG-sensitive). The results are consistent across two financial distress measures, Altman z-scores for emerged and emerging markets. Thus, the DID in distress status between ESG-sensitive and non-ESG firms matter.

The study creates vibrant implications for practitioners using ESG to reduce financial distress.

The study is one of its kind to test the treatment effects of ESG on firm value and quantify treatment effects on financial distress.

Many European countries suspended mandatory conscription after the Cold War, and especially between 2000 and 2010. However, with the changing security situation in Europe, more and more countries are considering the re-introduction of the draft. That is why, it is important to evaluate the impact of conscription on draftees, including its effect on fertility outcomes. Additionally, fertility is of particular interest because birth rates have been below replacement levels in most European countries at least in the last two decades. This, combined with the increase in life expectancy, has contributed to aging population and raises concerns about the future economic prospects and sustainability of the continent. Military service could be related to fertility in several ways. Compulsory service for men would affect the marriage market and subsequently child-bearing outcomes. For example, men who serve in the military would have to delay higher education at least by a year, given that they plan to continue their education after high school. One possibility is that this leads to older men meeting younger women if partners meet at college. Alternatively, in case the partners know each other prior to the draft, service could delay marriage by up to a year due to the conscription, postponing planning and having children, and potentially having fewer children as women might be less able or less willing to have a child after a certain age. Finally, some men who plan and would otherwise continue their education might choose to not do so or to further postpone it once they disattach from studying during their service. For some men, this might influence their marital and subsequent fertility outcomes. In either of these scenarios, a draft or its suspension is likely to be connected to fertility.

This study examines the effect of the suspension of the draft in Spain in December 2001 on three fertility outcomes of men that would have been drafted in the absence of the suspension. The author performs the analysis in a difference-in-differences framework. Potential concerns and policy implications are also discussed.

The findings suggest that after the suspension of the draft, individuals started to have their first child earlier given that they decide to have children. Consistent with the overall time trend, they became less likely to have a child and started to have fewer children. However, the age at birth of the first child decreased while the number of children and the likelihood of having a child increased for men relative to women, after compared to before the suspension of the mandatory draft.

The author extends prior literature by investigating the effect of the abolition of compulsory military service in Spain in December 2001 on fertility. This is novel is several ways. First, to the best of the author’s knowledge, previous literature has examined the effect of this Spanish reform only on labor market outcomes prior to men's conscription. Second, even for other countries that terminated the compulsory draft, fertility has been under-studied, providing an opportunity for further exploration. Third, this analysis is based on rich Census data, representative of the population in Spain. Finally, given the inconclusive findings of previous studies for other countries and the proposed re-introduction of the draft in some parts of Europe, additional evidence of the effect of the conscription has important policy implications necessary for the evaluation of future military service policy decisions.