Economics and Business Letters

Do law professionals lack economic knowledge?

Joseph Hassid — 2026-01-30

This study examines the relevance of economic knowledge among lawyers, based on a survey of Greek law professionals. The econometric results unveil a gap between the perceived usefulness and adequacy of economics literacy by lawyers. We argue that graduate studies in economics increase perceived competence, while self-employed practice is less beneficial. The findings survive robustness checks when we account for demographic characteristics. Lastly, the empirical analysis underscores the value of continued education and the impact of professional business experience in deepening lawyers' understanding of economics.

Uneven recovery: sectoral labour market mismatch in Austria after COVID-19

Michael Christl — 2026-01-30

This paper investigates sectoral labour market matching in Austria using monthly administrative data from 2008 to 2024. We estimate sector-specific Beveridge curves and mismatch unemployment to assess the effects of the COVID-19 pandemic. While mismatch unemployment returned to pre-pandemic levels in most sectors, it remained elevated in hospitality and the public sector, particularly in healthcare. These results underscore the need for targeted policy interventions to address sector-specific frictions and enhance the efficiency of labour reallocation.

Examining green finance resilience during the COVID-19 pandemic

David Staunton — 2026-01-30

This research investigates the market response of green and environmentally focused exchange-traded funds (ETFs) to COVID-19 variant announcements by the World Health Organisation (WHO). The results show that the direction of investor responses to COVID-19 variant announcements changed over the course of the pandemic. Initial WHO announcements triggered sharp negative market responses, reflecting heightened uncertainty and investor risk aversion. However, market resilience improved as subsequent variant announcements produced short-term positive reactions, suggesting improved investor confidence in green and environmentally-focused investment assets as a result of government support and policies designed to underpin their long-term sustainability. Results further illustrate such ETFs' potential to mitigate systemic risks and provide portfolio diversification.

Another look at cultural and institutional determinants of R&D investment: a worldwide study

Emilio López-Millán — 2026-01-30

We analyze a sample of 65 countries to examine the national structural and cultural determinants of R&D investment. Our findings suggest the existence of a legal effect, wherein other structural determinants are effective only in countries with a strong rule of law. Additionally, we find that cultural openness and long-term orientation are positively associated with R&D investment. While innovation efficiency attracts foreign R&D investment, innovation efficacy acts as a deterrent, as profitable innovation opportunities are typically seized by domestic investors. Furthermore, we identify a substitution effect, in which the government compensates for insufficient investment from both domestic and foreign investors.

Risk without borders: a transfer entropy analysis of geopolitical spillovers in low- and lower-middle-income markets

Dora Almeida — 2026-01-30

How geopolitical risk affects stock markets in low and lower-middle-income countries remains an area often overlooked. This study analyzes daily data from 2014 to 2025 for 16 stock markets and two geopolitical risk subindices, acts and threats. The transfer entropy is applied in a dynamic framework to measure asymmetric and time-varying information flows. The findings reveal a heterogeneous influence of acts and threats, varying by country-income level, geographic region, and over time. Stock market sensitivity increased after 2020, particularly in response to acts rather than threats. This highlights distinct geopolitical risk transmission, requiring tailored investment strategies and policy responses.

Editorial Note

Francisco J. Delgado — 2026-01-30

Editorial Note