Austrian Economic Quarterly 

About: Austrian Economic Quarterly is an academic journal. The journal publishes majorly in the area(s): Unemployment & Real gross domestic product. Over the lifetime, 150 publications have been published receiving 632 citations.

Imbalances in the Euro Area

Abstract: In the run-up to the economic crisis, distinctive macroeconomic imbalances emerged in the euro area. Greece, Ireland, Italy, Portugal and Spain experienced a considerable deterioration of their international competitiveness and incurred high current account deficits. By contrast, Germany, among other countries, improved its competitiveness and achieved a large current account surplus. These imbalances continue to exist and are likely to threaten the economic recovery, the long-term growth perspectives and the cohesion of the EMU.

Tax Incentives for Research and Development

Abstract: The majority of OECD countries provide support to R&D both through direct subsidies and, increasingly, by means of tax incentives. For a considerable period of time, Austria has been offering an instrument of fiscal support to R&D – the R&D tax allowance – that is rather generous by international standards. However, the R&D tax allowance shows some weaknesses. The recent reform of fiscal aid for R&D is designed to eliminate some of these weaknesses by additional measures (a new R&D allowance for R&D expenditure based on the OECD definition, an R&D premium for firms that do not manage to make sufficient profit). This reform of tax incentives for R&D does not leave any firm worse off than before. On the other hand, the system of incentives is becoming increasingly complex, which in turn raises the costs of administration and compliance by firms. Until now the actual use and effects of the R&D tax allowance have not been very transparent and no evaluation has been presented so far. It is recommended to evaluate the new set of instruments according to international standards after they have been in use for three years.

Economic Integration, Specialisation and the Location of Industries. A Survey of the Theoretical Literature

Abstract: Globalisation and the process of European integration have dramatically changed the competitive environment for European manufacturing. The literature survey gives an insight into theoretically possible impacts of these ongoing processes on industrial structures, the specialisation patterns of EU economies, the location of industrial activities within Europe and the possible emergence of core-periphery patterns.

Specialisation of European Manufacturing

Abstract: The article investigates how the structure of manufacturing changes in the EU countries over the past 15 years: it presents evidence about the specialisation of countries in production and exports in general and whether the share of the most important industries is decreasing or increasing under the impact of integration and globalisation.

The Austrian Paradox: "Old" Structures but High Performance?

Abstract: The Austrian "structure-performance paradox" describes the ambiguous observation of high overall economic performance on the one hand, but a considerable lock in to "old" industrial structures on the other. Compared to other high-income countries, Austria is characterised by an almost unique low share of industries, where competitive advantage is mostly driven by technological change. Following the presentation of a new empirical tool useful in structural analysis, this paper will summarise recent empirical results on both aspects of the paradox. Initially, attention will be drawn towards the most relevant policy questions; later some tentative explanations of the paradox will be examined.