Economics and Business Letters

Reconsidering the effectiveness of expansionary policies in developed economies: stimulating a renewed debate

Daniel Rodríguez-Asensio — 2026-06-28

The influence of public policy on the economies of developed countries has increased significantly after the great financial crisis and pandemic. Discussions are underway regarding the efficient use of public resources and the viability of increasing public spending and financing a growing deficit without a more accommodative monetary policy. Consequently, both fiscal multipliers and the effectiveness of monetary policy are declining. Research has demonstrated that tax cuts are a more effective means of boosting economic activity, while unconventional policies tend to produce adverse effects. The primary goal of this article is to provide a comprehensive overview of the impact of expansionary fiscal and monetary policies, thereby contributing to the ongoing debate on enhancing the efficiency of public policies.

Shadow subscription for online video rental stores and affine systems

Arturo Macias — 2026-06-28

This article computes the optimal price-by-quantity curves for a monopolistic platform that sells goods (vg. films) with zero marginal cost to identified consumers. The optimal curves are named “shadow subscription,'' being a pricing system intermediate between transaction fees and subscriptions. Substantial improvements in revenue and total value (revenue plus consumer surplus) are observed between the optimal price-by-quantity curves and the conventional alternatives (transaction fees, subscription and a combination of both) for some parametric choices.

We conjecture that a stylized shadow subscription could be a pricing model of interest to market challengers, fostering competition within the Internet economy. Further research avenues on shadow subscription are suggested.

Geopolitical risk, wartime economic policy uncertainty and carbon intensity

Provash Sarker — 2026-06-28

We examine how geopolitical risk and wartime economic policy uncertainty affect carbon intensity (CI) in the United States. Using monthly data from 2000 to 2024 and employing a Quantile Vector Error Correction Model (QVECM) with the Caldara-Iacoviello Geopolitical Risk Index (GPR) and Brochet et al.’s adjusted Economic Policy Uncertainty index (AEPU), we uncover pronounced asymmetries across carbon intensity distributions. Error correction speeds exhibit a U-shaped pattern, with the strongest adjustments at extreme quantiles (24.5% at the 95th percentile) and the weakest around the median. Geopolitical risk increases carbon intensity during high-emission periods while policy uncertainty reduces it at both extremes. These findings highlight the need for distribution-sensitive climate policies during geopolitical crises

The creation of energy startups: the role of environmental knowledge spillovers

Aurelien Quignon — 2026-06-28

This paper examines how environmental innovation influences startup creation in energy and non-energy sectors. Using a panel of 35 developed and developing countries from 1998 to 2019 and a two-way fixed effects model, I find that environmental knowledge significantly increases the creation of startups in energy sectors, while no effect is found for non-energy sectors. Further analysis reveals that environmental knowledge promotes startup creation across green, brown, digital, and non-digital energy sectors, suggesting broad spillover effects. These results support policies aimed at fostering environmental innovation to stimulate entrepreneurship.

Economic disparities, migration and human trafficking in Europe: empirical evidence and policy perspectives

Mario Coccia — 2026-06-28

This study examines the relationship between national wealth, immigration inflows, and human trafficking across European countries from 2012 to 2022. Higher GDP per capita significantly attracts immigration, which is positively associated with trafficking victimization. Correlation analysis shows strong links between trafficking victims and both immigration (r = +37.4%, p = 0.05) and GDP per capita (r ≈ +42%, p = 0.03). Using two-stage least squares regression, we find that a 1% increase in immigration—instrumented by GDP per capita—raises trafficking victims by 0.87%. Additionally, a 1% rise in criminal convictions reduces victimization by 0.402%. These findings highlight key economic and demographic drivers of trafficking and offer policy-relevant insights for designing effective interventions.