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Higher capital requirements: It’s the firms that end up suffering

61 European banks were scheduled to increase their capital cover by 2012 to provide a sufficient buffer for future crises. And banks did implement these requirements – not by raising their levels of equity, but by reducing their credit supply.This resulted in lower firm, investment, and sales growth for firms which obtained a larger share of their bank credit from these banks.

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Growing old is inevitable, growing up is optional: Housing strategies in Europe

37.02
Per cent
The percentage of senior households (age>75) paying mortgage in the Netherlands. The average level of other Euro-zone countries is 3.05 %.
ECB HFCS 2016
20.56
Per cent
The percentage of young households (age<30) living in their main residence for free in Italy. The average level of other Euro-zone countries is 5.48 %.
ECB HFCS 2016

Press Releases

24.04.2017 • 22/2017

Higher capital requirements: It’s the firms that end up suffering

Professor Reint E. Gropp, PhD
Abstract

61 European banks were scheduled to increase their capital cover by 2012 to provide a sufficient buffer for future crises. As the study by the research group chaired by Reint E. Gropp at the Halle Institute for Economic Research (IWH) – Member of the Leibniz Association shows, the banks did implement these requirements – not by raising their levels of equity, but by reducing their credit supply. This resulted in lower firm, investment, and sales growth for firms which obtained a larger share of their bank credit from these banks.

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20.04.2017 • 21/2017

IWH Policy Talk: „Gewissenlose Kapitalisten oder Motor der Zukunft? Private Equity in Europa“

Abstract

Das Leibniz-Institut für Wirtschaftsforschung Halle (IWH) lädt am Montag, dem 24. April 2017 um 17:00 Uhr zu seinem zweiten IWH Policy Talk zum Thema „Gewissenlose Kapitalisten oder Motor der Zukunft? Private Equity in Europa“ mit Peter Cornelius von AlpInvest in den Konferenzsaal des Instituts ein.

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12.04.2017 • 20/2017

Auch der Osten ist im moderaten Aufschwung – Implikationen der Gemeinschaftsdiagnose Frühjahr 2017 für Ostdeutschland

Professor Dr Oliver Holtemöller
Abstract

Für das Jahr 2017 prognostiziert das Leibniz-Institut für Wirtschaftsforschung Halle (IWH) einen Anstieg des ostdeutschen Bruttoinlandsprodukts mit Berlin um 1,7% (Gemeinschaftsdiagnose für Deutschland insgesamt: 1,5%). Maßgeblicher Treiber ist wie in Deutschland insgesamt die Binnennachfrage. Insbesondere profitiert die Wirtschaft von der hohen Dynamik in Berlin und Sachsen. Die Produktion pro Einwohner dürfte in diesem Jahr im Osten wohl erneut etwas schneller als im Westen steigen; somit setzt sich die Tendenz kleiner Fortschritte bei der ökonomischen Konvergenz fort.

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12.04.2017 • 19/2017

Joint Economic Forecast Spring 2017: Upturn in Germany strengthens in spite of global economic risks

Professor Dr Oliver Holtemöller
Abstract

The German economy is already in the fifth year of a moderate upturn. According to the Gemeinschaftsdiagnose (GD, joint economic forecast) that was prepared by Germany’s five leading economic research institutes on behalf of the Federal Government, capacity utilization is gradually increasing, and aggregate production capacities are now likely to have slightly exceeded their normal utilisation levels. However, cyclical dynamics remain low compared to earlier periods of recoveries, as consumption expenditures, which do not exhibit strong fluctuations, have been the main driving force so far. In addition, net migration increases potential output, counteracting a stronger capacity tightening. “Gross domestic product (GDP) is expected to expand by 1.5% (1.8% adjusted for calendar effects) and 1.8% in the next year. Unemployment is expected to fall to 6.1% in 2016, to 5.7% in 2017 and 5.4% in 2018”, says Oliver Holtemöller, Head of the Department Macroeconomics and vice president of the Halle Institute for Economic Research (IWH) – Member of the Leibniz Association. Inflation is expected to increase markedly over the forecast horizon. After an increase in consumer prices of only 0.5% in 2016, the inflation rate is expected to rise to 1.8% in 2017 and 1.7% in 2018. The public budget surplus will reduce only modestly. Public finances are slightly stimulating economic activity in the current year and are cyclically neutral in the year ahead.

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Stefanie Müller
Stefanie Müller
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IWH contributes to G20 Insights

Right before the Think 20 Summit on Global Solutions in Berlin on 29-30 May 2017, three IWH papers contributed to the G20 Insights Platform, which offers policy proposals to the G20. The Policy Briefs clustered in the policy area “Financial Resilience” are:

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Current Publications

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EEA-ESEM Conference 2017

IWH papers presented at the EEA-ESEM Conference from August 21 to August 25, 2017, in Lisboa

  • Daniel Fackler: Wage Losses after Job Displacement: Productivity Depreciations or Lost Firm Rents
  • Chris Jürschik, Lena Tonzer, Matias Ossandon Busch: Macroprudential Instruments and Intra-group Dynamics: The Effects of Reserve Requirements in Brazil

44th Annual Meeting of the European Finance Association

IWH papers presented at the EFA Annual Meeting from August 23 to August 26, 2017, in Mannheim

Current Events

Veranstaltung
29
May 2017

14:15 - 15:45

IWH Research Seminar

Sorry, We're Closed: Loan Conditions When Bank Branches Close and Firms Transfer to Another Bank

Professor Dr Steven Ongena University of Zurich, Swiss Finance Institute
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