Strife-torn Europe

Economic, Refugee and Trust Crisis. The European Union currently faces up to many conflicts.


 

In 2007 the US property bubble bursted and the worldwide crisis took its course. When the investment bank Lehman Brothers collapsed in 2008, the financial crisis reached its first peak. But the problems were not over yet: The member states had to spend many billion euros to save their banks from bankruptcy which by and by led into the dept and euro crisis. Especially Greece struggled with missing trust of the financial markets from which Germany meanwhile benefited strongly.

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Current IWH Publications

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Complexity and Bank Risk During the Financial Crisis

Thomas Krause Talina Sondershaus Lena Tonzer

in: Economics Letters , 2017

Abstract

We construct a novel dataset to measure banks’ complexity and relate it to banks’ riskiness. The sample covers stock listed Euro area banks from 2007 to 2014. Bank stability is significantly affected by complexity, whereas the direction of the effect differs across complexity measures.

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The European Refugee Crisis and the Natural Rate of Output

Katja Heinisch Klaus Wohlrabe

in: IWH Discussion Papers , No. 30, 2016

Abstract

The European Commission follows a harmonized approach for calculating structural (potential) output for EU member states that takes into account labor as an important ingredient. This paper shows how the recent huge migrants inflow to Europe affects trend output. Due to the fact that the immigrants immediately increase the working population but effectively do not enter the labor market, we illustrate that the potential output is potentially upward biased without any corrections. Taking Germany as an example, we find that the average medium-term potential growth rate is lower if the migration flow is modeled adequately compared to results based on the unadjusted European Commission procedure.

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Kommentar: Großbritanniens Nein zur EU wird für beide Seiten teuer

Reint E. Gropp

in: Wirtschaft im Wandel , No. 3, 2016

Abstract

Die Briten haben sich überraschend klar gegen einen Verbleib ihres Landes in der Europäischen Union entschieden. Das Ausscheiden Großbritanniens aus der EU hat nicht nur politisch, sondern auch ökonomisch tiefgreifende Konsequenzen für das Land selbst, aber auch für das übrige Europa. Entscheidend ist jetzt die Reaktion der verbleibenden Länder auf das Votum, insbesondere die Frankreichs und Deutschlands.

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FDI, Human Capital and Income Convergence — Evidence for European Regions

Dominik Völlmecke Björn Jindra Philipp Marek

in: Economic Systems , No. 2, 2016

Abstract

This study examines income convergence in regional GDP per capita for a sample of 269 regions within the European Union (EU) between 2003 and 2010. We use an endogenous broad capital model based on foreign direct investment (FDI) induced agglomeration economies and human capital. By applying a Markov chain approach to a new dataset that exploits micro-aggregated sub-national FDI statistics, the analysis provides insights into regional income growth dynamics within the EU. Our results indicate a weak process of overall income convergence across EU regions. This does not apply to the dynamics within Central and East European countries (CEECs), where we find indications of a poverty trap. In contrast to FDI, regional human capital seems to be associated with higher income levels. However, we identify a positive interaction of FDI and human capital in their relation with income growth dynamics.

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Von der Transformation zur europäischen Integration: Auf dem Weg zu mehr Wachstumsdynamik – ein Tagungsbericht

Gerhard Heimpold

in: Wirtschaft im Wandel , No. 2, 2016

Abstract

Unter dem Titel „Von der Transformation zur europäischen Integration: Auf dem Weg zu mehr Wachstumsdynamik“ hat das Leibniz-Institut für Wirtschaftsforschung Halle (IWH) gemeinsam mit Partnern aus Universitäten in Mitteldeutschland am 22. Februar 2016 Forschungsergebnisse zu den Folgen des Strukturwandels, zur Erzielung von mehr Wachstums­dynamik und den wirtschaftspolitischen Rahmenbedingungen hierfür präsentiert.

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