We used a Bayesian dynamic factor model (BDFM) to examine the share of variance explained by the European and country factors for 59 regions in Eurozone countries in the period from 1992 to 2020. The BDFM output facilitated the construction of a criterion that enables the assessment of the cost of participation in the European Monetary Union, which is directly related to the optimum currency area theory. Over the examined period, we observed business cycle divergence, with 46 regions experiencing a drop in the share of variance explained by the European factor from 1992–2005 to 2006–2020. However, the analysis over shorter time spans demonstrated that all the regions decoupled from the European business cycle. The results contradict the predictions of "The European Commission View". On the one hand, two predictions stemming from "The Krugman View" are supported by the results: the European regions experienced a slight increase in sectoral specialization, and they experienced business cycle divergence. On the other hand, the data does not support the notion that the ongoing specialization was the underlying cause of this divergence.

Normative reasoning within the mainstream economic framework has been largely shaped by utilitarian ethics. The growing popularity of effective altruism indicates that the utilitarian spirit has also permeated the sphere of social sentiment, evaluating our pro-social behaviour and charitable giving in terms of efficiency. The present study assesses the appropriateness of judging social outcomes through the prism of allocative efficiency by questioning to what extent the society of effective altruists is robust, sustainable, and resilient. Using computer simulations based on the dictator game, we demonstrate that a society of welfare-maximising effective altruists can achieve an optimal outcome alongside equality under extremely restrictive assumptions, such as the uniformity of giving strategies (i.e. interacting with other effective altruists exclusively) and initial equality of wealth distribution. Yet, in the world of unequal opportunities, utilitarian giving tends to increase wealth disparity. In addition, in polymorphic societies, effective altruists underperform compared to deontological (or unconditional) altruists. Consequently, we demonstrate that striving for allocative efficiency might undermine the equality and resilience objectives and question whether the former should remain the dominant economic normative principle.

Objectives: The neoclassical economic framework is a dominant approach in both theoretical and applied fields, such as public policy design. Despite the substantial amount of criticism towards the neoclassical assumptions of rational choice and obstacles related to preference aggregation, there is a minor concern regarding the underlying philosophy of the mainstream public policy design, namely static social utility maximisation under exogenously given social preferences.This paper analyses the inherent biases of the public policy based on the neoclassical background, attempting to prove that although such an approach can theoretically lead to the socially optimal outcome, it is hardly in line with the long-run social survival and development objectives. Other than this, the paper attempts to explore how incorporating alternative approaches towards individual and collective rationality into the theory of social choice can allow for designing a more sustainable public policy. Research Design & Methods: The paper presents the review of the relevant literature alongside the theoretical inquiry into the underlying logic and philosophy of the neoclassical approach towards the public policy design as well as the most relevant non-mainstream theories. Findings: It is demonstrated that the assumptions behind the neoclassical framework are inconsistent with the notions of social evolution and social sustainability. Implications / Recommendation: The persistent idea that public policymakers should attempt to maximise social utility implies artificial limitations for public policy as well as ill-designed goals and objectives. There is a strong need to reconsider the appropriateness of using the neoclassical analytical framework in public policy design. Contribution / Value added: The framework discussed in this article serves as the ground for more sustainable public policy design principles.

This paper examines the moral factors that motivate altruistic behavior on the part of Polish students toward Ukrainian war refugees within the context of economic theories on altruism. An online survey is used to itemise the students’ altruistic activities, explore what they see as their moral...

The attribution of causality, a central concept in human cognition theory, is the principal instrument for investigating functional links between events and phenomena. Although the links between causality and moral responsibility are commonly recognized, the scope of studies analysing the practical implications of causality attribution is minimal. This study examines the effect of causality perception on the desired distribution of the generic means of life by utilising thought experiment data collection methodology and non-parametric statistical analysis. The results indicate that: (i) causality perception affects the desired distribution, and (ii) individuals show no tendency to modify their perception of causality.