The great recession of 2008/2009 had a huge impact on unemployment and public finances in most advanced countries, and these impacts were magnified in the southern Euro area by the sovereign debt crisis of 2010/2011. The fiscal consolidation imposed by the European Union on highly indebted countries was based on the assumptions of so-called expansionary austerity. However, the reality so far provides proof to the contrary, and the results outlined in this article support the opposing view of a self-defeating austerity. Based on a model of the input–output relations of the productive system, an unemployment rate/budget balance trade-off equation is derived, as well as the impact of a strong fiscal consolidation based on social transfers and the notion of a neutral budget balance. An application to the Portuguese case confirms the huge costs of a strong fiscal consolidation, both in terms of unemployment and social policy regress. The conclusion is that too much consolidation in anyone year makes consolidation more difficult in the following year.

International trade has been increasingly organized in the form of global value chains (GVCs). In this paper, we provide a new method for comparing GVCs across countries and over time. First, we use the World Input–Output Database (WIOD) to construct both the upstream and the downstream global value networks. Second, we introduce a network-based measure of node similarity to compare the GVCs between any pair of countries for each sector and each year available in the WIOD. Our network-based similarity is a better measure for node comparison than the existing ones because it takes into account all the direct and indirect relationships between the country–sector pairs, is applicable to both directed and weighted networks with self-loops, and takes into account externally defined node attributes. As a result, our measure of similarity reveals the most intensive interactions among the GVCs across countries and over time. From 1995 to 2011, the average similarity between sectors and countries have clear increasing trends, which are temporarily interrupted by the recent economic crisis. This measure of the similarity of GVCs provides quantitative answers to important questions about dependency, sustainability, risk, and competition in the global production system.

Nonindigenous invasive weed species can have substantial negative impacts on the quantity and quality of outdoor recreational activities such as fishing, hunting, hiking, wildlife viewing, and water-based recreation. Despite the significance of impacts on recreation, very little research has been performed to estimate the corresponding economic losses at spatial scales such as regions, states, and watersheds. This is true primarily because in most jurisdictions the data necessary to estimate recreational impacts are scarce and incomplete. Because of the challenges involved in measuring recreational losses precisely, we illustrate a method that can provide indications of the ranges in which the true economic losses likely lie. To reflect underlying uncertainty in parameters such as the number of acres infested in a jurisdiction and the rate at which wildlife-related recreation decreases as a function of increasing weed infestation, we developed a range of estimates using lower, medium, and higher scenario combinations of parameter and variable values. Our case study jurisdiction is a western state (Nevada) in which nonindigenous weed infestations on public lands have expanded rapidly in recent years. Under conservative assumptions, the negative economic impacts stemming from the adverse influence of nonindigenous weeds on wildlife-related recreation in Nevada likely range from $6 million to $12 million per year. Using the most conservative findings for annual recreation losses, the predicted discounted stream of negative economic impacts over a future time horizon of 5 yr ranges from about $30 million to $40 million in Nevada, depending on actual future expansion rates of weeds.