General Economics (econ.GN)

Abstract: The extent to which individuals commit to their partner for life has important implications. This paper develops a lifecycle collective model of the household, through which it characterizes behavior in three prominent alternative types of commitment: full, limited, and no commitment. We propose a test that distinguishes between all three types based on how contemporaneous and historical news affect household behavior. Our test permits heterogeneity in the degree of commitment across households. Using recent data from the Panel Study of Income Dynamics, we reject full and no commitment, while we find strong evidence for limited commitment.

Abstract: The main component of the NextGeneration EU (NGEU) program is the Recovery and Resilience Facility (RRF), spanning an implementation period between 2021 and 2026. The RRF also includes a monitoring system: every six months, each country is required to send an update on the progress of the plan against 14 common indicators, measured on specific quantitative scales. The aim of this paper is to present the first empirical evidence on this system, while, at the same time, emphasizing the potential of its integration with the sustainable development framework (SDGs). We propose to develop a first linkage between the 14 common indicators and the SDGs which allows us to produce a composite index (SDGs-RRF) for France, Germany, Italy, and Spain for the period 2014-2021. Over this time, widespread improvements in the composite index across the four countries led to a partial reduction of the divergence. The proposed approach represents a first step towards a wider use of the SDGs for the assessment of the RRF, in line with their use in the European Semester documents prepared by the European Commission.