Economy Under the Spell of the Coronavirus Epidemic

The epidemic is obstructing the economic recovery in Germany. If the spread of the disease can be contained in short time, GDP growth in 2020 is expected to be 0.6% according to IWH spring economic forecast. If the number of new infections cannot be decreased in short time, we expect a recession in Germany.

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IWH investigates causes of populism

Is the increasing strength of populist parties due to economic causes? The IWH addresses this controversial question as the coordinator of an interdisciplinary research project, funded by the Volkswagen Foundation.

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IWH hosts award-winning US economist

The renowned Max Planck-Humboldt Research Award 2019 goes to Ufuk Akcigit, Professor of Economics at the University of Chicago. At the IWH, Akcigit aims to use innovative methods to investigate why the economy in eastern Germany is still lagging behind that in western Germany – and what role the privatisation process 30 years ago played in this.

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United by Inequality

How is Germany’s economy faring 30 years after the fall of the Berlin Wall? An IWH publication analyses how the country’s unification has progressed. The study presents many new findings, including on productivity differences between east and west, urban and rural development, as well as the availability of skilled labour.

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IWH leads large scale EU project on productivity

Is productivity growth slowing in industrialised countries? And if so, why? From the start of 2019, the IWH will be addressing these decisive questions as the leading coordinator of a new European research collaboration: MICROPROD is the largest EU project in the history of the institute.

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The Halle Spirit

We provide independent research on economic topics that really matter and aim to enrich society with facts and evidence-based insights that facilitate better economic decisions. We focus on growth and productivity because we are convinced that economic prosperity enables people to lead happier lives. We provide young researchers a nurturing place to develop their competencies and to make the most of their skills. Working in flat hierarchies, we are driven by open-minded intellectual curiosity and we have the courage to share inconvenient insights.

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Intangible capital and productivity

10
percent

Intangible capital (e.g. patents, licenses, software, research and development) as production factor can explain up to 10% of the productivity dispersion among companies within an industry.

Press Releases

12.03.2020 • 4/2020

Global economy under the spell of the coronavirus epidemic

Abstract

The epidemic is obstructing the economic recovery in Germany. Foreign demand is falling, private households forgo domestic consumption if it comes with infection risk, and investments are postponed. Assuming that the spread of the disease can be contained in short time, GDP growth in 2020 is expected to be 0.6% according to IWH spring economic forecast. Growth in East Germany is expected to be 0.9% and thus higher than in West Germany. If the number of new infections cannot be decreased in short time, we expect a recession in Germany.

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18.02.2020 • 3/2020

Presseeinladung zur IWH-Konferenz „Europas Finanzmarkt: Zwangsehe oder lose Bekanntschaft?“ am 26. Februar 2020

Abstract

Ein Jahrzehnt nach der weltweiten Finanzkrise steht das Finanzsystem noch immer vor enormen Herausforderungen. Wie diese in Europa gemeistert werden können, ist Thema einer hochkarätig besetzten Tagung am Leibniz-Institut für Wirtschaftsforschung Halle (IWH). Zur Eröffnung spricht Claudia Buch, Vizepräsidentin der Deutschen Bundesbank.

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12.02.2020 • 2/2020

Causes of populism: IWH begins international research project

Abstract

Is the increasing strength of populist parties due to economic causes? The Halle Institute for Economic Research (IWH) is set to play a leading role in scrutinising this controversial question with immediate effect, together with researchers from England, Scotland and the Czech Republic. The Volkswagen Foundation is funding this interdisciplinary project to the tune of almost one million euro for four years.

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30.01.2020 • 1/2020

Alterung, Braunkohleausstieg und Klimapaket: Finanzpolitische Konsequenzen in Deutschland bis 2024

Professor Dr Oliver Holtemöller
Abstract

Nach der Mittelfristprojektion des Leibniz-Instituts für Wirtschaftsforschung Halle (IWH) wird das Wachstum in Deutschland in den Jahren bis 2024 aufgrund der bald sinkenden Erwerbsbevölkerung spürbar zurückgehen. Dies wird sich auch bei den Staatseinnahmen niederschlagen, und strukturschwache Regionen dürften davon besonders stark betroffen sein. Diese regionalen Effekte werden zwar durch Umverteilungsmechanismen abgefedert, aber nicht völlig ausgeglichen. Regionen mit schrumpfender Erwerbsbevölkerung müssen sich auf einen sinkenden finanziellen Spielraum einstellen. Oliver Holtemöller, Leiter der Abteilung Makroökonomik und Vizepräsident des IWH, ergänzt: „Der beschleunigte Braunkohleausstieg wird diesen Prozess verstärken, das Klimapaket der Bundesregierung hat hingegen vergleichsweise geringe Auswirkungen auf die öffentlichen Finanzen.“

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Sustainable Development, Firm Performance, and Competitiveness Policies in Small Open Economies

Keynote Speaker: Robert B. Koopman (Chief Economist World Trade Organization)
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