Revista Galega de Economía

Influence of behavioral biases on investment decisions. The importance of financial education in times of crisis

2023-06-01T10:17:23+02:00

While classical financial theories assume the rationality of the individual, Behavioral Finance supports the influence of cognitive and emotional aspects on investment decisions. The objective of this study is to contribute in this field by analyzing the presence of five biases –Overconfidence, Herd Behavior, Player Fallacy, Hot Hand Fallacy, and Domestic Bias– and their relationship with the personal characteristics of the investor, in particular with his EFE. We also analyze the effect of the financial crisis derived from Covid-19 on the aforementioned biases. This work is based on 109 questionnaires carried out in Galicia to individual investors, both real and potential, operating in the stock markets. The results confirm the existence of such biases, their relationship with some personal characteristics, a lower presence in individuals with greater financial knowledge and the intensification of Overconfidence and Herd Behavior during prolonged crises.

The initial effects of Covid-19 on income inequalities in Galicia and their distribution in society

2023-06-01T10:17:23+02:00

The pandemic caused by Covid-19 has a considerable effect on social inequalities. The aim of this paper is to identify, measure, and describe the changes in income inequalities in Galicia after the pandemic. For this purpose, different income inequality indicators are calculated, which allow us to analyse its evolution before and after the pandemic (2014-2020) considering the different income sources. The main results suggest three main issues. Firstly, the pandemic implies an increase of income inequalities in Galicia in 2020. Secondly, inequalities depending on sex, nationality, age and level of education of household members, as well as territorial inequalities, increase. Finally, social benefits have played a relevant role in softening the effect of the pandemic on inequalities. It should be noted that this effect is uneven, leading to the fact that households composed of younger people are clearly less protected than those of older age.

Taxation and the circular economy in Spain: current situation and potentialities of the use of tax benefits

2023-06-01T10:17:23+02:00

The transition to the circular economy (CE) implies a fundamental change in production and consumption. Its promotion requires coordinated action by different policies (e.g., environmental, regulatory, industrial, innovation, and public procurement) and especially, tax policies. The environmental orientation of fiscal instruments could be key to the transition to the CE and sustainability. This study analyses the current situation in Spain, noting the absence of tax benefit instruments that support the CE, and then identifies those that have the potential to promote the CE and sustainability. The paper shows the volume and diversity of these tax mechanisms, the cost in collection and the figures with the highest incidence, all of which have allowed us to highlight the potentialities, adversities and challenges shown by the policy of tax benefits in Spain for promoting the CE and sustainability.

The influence of teleworking on creative performance by employees with high academic training: The mediating role of work autonomy, self-efficacy, and creative self-efficacy

2023-06-01T10:17:23+02:00

This paper aims to evaluate the effect of teleworking on the creativity of professional employees via three mediating variables: work autonomy, self-efficacy, and creative self-efficacy. The research applies a quantitative-correlational design. The sample is made up of 448 employees evaluated online. From the results, what stands out is that teleworking is an ideal scenario for employees with high academic training to expand their creative performance. In fact, work autonomy, self-efficacy and creative self-efficacy are three characteristics related to the task or to the worker’s personality, which intensifies the relationship between teleworking and creativity by acting as a labor resource. In addition, working two or more days a week remotely is associated with stable creativity. However, low intensity teleworking, specifically if it is on one day a week only, decreases the self-perception of creative performance considerably. Lastly, the results also reveal gender differences in creative self-assessment, in such a way that women are significantly less aware of their ideas being original than men are, especially when teleworking only occurs on one day a week.

Some reflections on economic matters in association of municipalities in Galicia

2023-06-01T10:17:24+02:00

Galicia, like many other autonomous regions, has opted for the creation of associations as supramunicipal entities for the provision of certain services and infrastructure. The increase in the number of participating municipalities is not always accompanied by an adequate degree of compliance with their obligation to release their economic reports. In addition, those that do comply, demonstrate the existence of excessive financial dependence on public administrations other than municipalities. This paper aims, firstly, to analyze and evaluate these issues from an economic perspective and, secondly, to propose some reflections that could contribute to improving the way that association of municipalities in Galicia are run.

Profile of financially fragile households: Comparative analysis of Galicia and Spain

2023-06-01T10:17:24+02:00

The objective of this research is to determine the level of financial fragility experienced by Galician households, as well as to analyze whether the sociodemographic, economic and behavioural characteristics that they posess have any relation to this issue from a comparative perspective with respect to the other Autonomous Communities in Spain. Using the data from the first wave of the Survey of Financial Competences (abbreviated as ECF in Spanish), it has been observed that the percentage of those who are faced with medium or high financial fragility in Galicia is lower than in the rest of Spain. In addition, household income and one’s financial capability are buffering factors of financial fragility (FF), both in Galicia and in the rest of Spain. The higher the level of education received, the lower the probability of suffering from a high level of individual self-perceived FF, while the opposite relationship seems to be true for those living with dependent children. These results, which are similar in both subsamples, do not hide notable differences; in comparison with Spain, the impact of financial capability is less relevant in Galicia, while financial inclusion is positively related to FF.