We show that firms' credit market experience determines their perception of aggregate bank lending policy using panel data
from the Austrian Business Survey between 2011 and 2016. Loan rejections have a strongly negative and persistent effect on
perceptions. Interestingly, firms that receive a loan at worse than anticipated conditions show a similarly negative effect.
Firms that do not need a loan tend to perceive lending policy as neutral and revise their perceptions less often. Our findings
are in line with theories on sticky information, rational inattention and pessimism bias and suggest considering experience
for the aggregation of perceptions.
in: Martin Kahanec, Mikuláš Luptácik, Philipp Schmidt-Dengler, Economic Policy in a Dynamic Environment. Selected Papers of the 2016 Joint Annual Meeting of the Slovak Economic Association
and the Austrian Economic Association
After the collapse of the Soviet Union a new class of entrepreneurs, the so called "oligarchs", have emerged in Russia. Using
individual survey data for Russia in combination with unique regional data on oligarchic dominance, we try to illuminate the
relationship of oligarchs and levels of social capital in Russian regions. We further examine the interplay of oligarchs and
public governance. The analysis reveals that social capital in terms of informal network strength and trust is significantly
higher in regions with stronger oligarchic dominance. While the quality of all levels of public governance is perceived to
be worse in oligarchic regions, this effect is especially pronounced for the local government.
Between 1955 and 1987, Austrian trade with Eastern Europe was characterised by specific factors. On the one hand, trade flows
were influenced by the central planning system in Eastern Europe. On the other hand, Austria applied non-standard policy tools
to manage Eastern trade. Furthermore, Austrian trade with Eastern Europe was affected by the implementation of the free trade
agreement with the European Communities and the change in the institutional framework for Eastern trade in the early 1970s.
Austrian Eastern exports were fostered by increased export subsidies and barter trade. We assess the net effects of these
contradictory measures of trade policy by estimating aggregate import and export equations and testing for a structural break
in 1973. Our results are consistent with the view that Austria subsidised Eastern exports to pursue a countercyclical policy