Applied Microeconomics
Applied Microeconomics
The Applied Microeconomics research group unites researchers working on a broad array of topics within such areas as labour economics, economics of education, health economics, family economics, urban economics, environmental economics, and the economics of science and innovation. The group operates in close collaboration with the CAGE Research Centre.
The group participates in the CAGE seminar on Applied Economics, which runs weekly on Tuesdays at 2:15pm. Students and faculty members of the group present their ongoing work in two brown bag seminars, held weekly on Tuesdays and Wednesdays at 1pm. Students, in collaboration with faculty members, also organise a bi-weekly reading group in applied econometrics on Thursdays at 1pm. The group organises numerous events throughout the year, including the Research Away Day and several thematic workshops.
Our activities
Work in Progress seminars
Tuesdays and Wednesdays 1-2pm
Students and faculty members of the group present their work in progress in two brown bag seminars. See below for a detailed scheduled of speakers.
Applied Econometrics reading group
Thursdays (bi-weekly) 1-2pm
Organised by students in collaboration with faculty members. See the Events calendar below for further details
People
Academics
Academics associated with the Applied Microeconomics Group are:
Research Students
Events
Macro/International Seminar - Marta Garcia (Bank of Spain)
Title: The Role of Confidence Measures in European Unemployment Dynamics.
Abstract: This paper explores the role of confidence measures in macroeconomic dynamics, focusing on their impact on unemployment in Europe. Using a mixed-frequency Panel FAVAR model with data from 22 European countries, we find that confidence shocks, which have no immediate effect on productivity or unemployment, are strongly correlated with non-technological shocks driving long-term unemployment dynamics. By applying a simultaneous identification approach with short- and long-run restrictions, we show that confidence shocks account for approximately 50% of unemployment variance in the medium run. These results support the 鈥渘ews鈥� view of confidence and challenge both the traditional view that focuses solely on technological news and the conventional belief that technological news shocks are the primary drivers of business cycles, suggesting instead that confidence-related shocks linked to non-technological factors play a significant role. To validate our empirical findings, we develop a structural search and matching model, demonstrating that under adaptive learning, confidence shocks in the form of news can explain a substantial portion of unemployment fluctuations. This research shifts the focus from technological to confidence-related shocks, providing new insights into labor market dynamics. (Authors: Marta Garcia Rodriguez (BdE) and Clemente Pinilla Torremocha (BoE & ERUNI))