Centre for Evidence-based Policy Advice (IWH-CEP)

The Centre for Evidence-based Policy Advice (IWH-CEP) of the IWH was founded in 2014. It is a platform that bundles and structures activities in research, teaching, and policy advice. IWH-CEP pursues the objective of creating better foundations for a causal analysis of policy implemented across different sectors.

IWH-CEP is designed as a service unit and supports the activities in the research groups by providing access to a supra-regional research and policy advising network as well as access to data sets for causal analyses. IWH-CEP lies at the interface between three areas of responsibility and carries out coordination functions between them.

Tasks    Contact    Events    Projects    Publications

IWH Subsidy Database   Research Group "Evaluation of Subsidy Programmes"

The tasks of the IWH-CEP

The government intervenes in the market mechanism through a lot of policy instruments in order to achieve various economic objectives. However, for policy makers, it is important to know whether the originally intended objectives are also achieved. Scientific methods can make a significant contribution to this. These are necessary to establish a clear connection between a policy instrument and its effect. Against this background, the Centre for Evidence-based Policy Advice (IWH-CEP) at the IWH was founded.

Research and Policy Advice

Research and policy advice are organized via the different research groups of the IWH. This organizational structure allows to assess policy changes from both a macro and micro perspective and cover different sectors of the economy.

To gain a better understanding of structural changes and economic growth, a first focus is set on the evaluation of industrial policy schemes, for example, the "Joint Task of 'Improving the Regional Economic Structure'" (which is the most important regional policy support scheme in Germany) is being evaluated in the Federal State of Saxony-Anhalt. The objective of the project is to use different evaluation techniques to assess the impact of policy support measures. The project is carried out under the responsibility of the IWH Research Group "Evaluation of Subsidy Programmes".

A second key area includes analyses on regulatory reforms and effects. Especially having in mind that after the recent financial crisis, a re-regulation of the financial system took place, it is of utmost importance to evaluate the effectiveness of the reforms as well as to assess whether there are unintended side-effects. In the context of the project The Political Economy of the European Banking Union, researchers in the financial markets department study how the directives underlying the European Banking Union are implemented across member states as well as whether the new regulatory framework has implications for banking stability and financial intermediation.

Set-up of a Network

IWH-CEP is part of the initiative for "Evidence-based Economic Policy", hosted by the Verein für Socialpolitik (German Economic Association). Being part of this initiative enhances IWH-CEP's visibility within the scientific and political community.

Set-up and Maintenance of Databases

The major challenge in the analysis of effects of government interventions and regulatory changes  lies in the accessibility of administrative data. IWH-CEP advances into this direction by building up databases that can be shared with other researchers.

Therefore, the IWH Subsidy Database is set up, maintained and completed according to the (current) specialisation in the analysis of effects of industrial policy support schemes. Information about the funded projects alone is not sufficient to conduct causal analyses – corporate data provieded by official and commercial statistics must be added; this is organised using record linkage techniques. This task is carried out at the IWH Research Data Centre.

Additionally, the financial market department has set up the website International Banking Library, which is a web-based platform for the exchange of research outcomes on cross-border banking. It provides access to data sources, academic research on cross-border banking, both theoretical and empirical, as well as information on regulatory initiatives. Thus, the website provides researchers and policymakers with a comprehensive overview of available data to conduct policy evaluation and the current stance of the literature on regulation and supervision of financial markets. The quarterly newsletter summarizes recent developments and is appreciateted by both academics and central bankers.

Your Contact

Events

The IWH-CEP organises the annual transfer conference "From Transition to European Integration". Under a current topic, the event connects representatives from politics, ministries, authorities, associations and companies with scientists from the IWH and its partner institutions. The opening speech is given by a prominent politician. After scientific lectures and discussions, a panel discussion concludes the one-day conference. The event is designed for the dissemination of IWH's research findings among political decision-makers and administrative professionals. There is also media coverage.

Veranstaltung
06
Mar 2019

10:00 - 16:00

Workshops and conferences

Vereintes Land – drei Jahrzehnte nach dem Mauerfall

Eröffnungsvortrag: Dr. Reiner Haseloff
View event
Browse all events

Projects

09.2019 ‐ 09.2022

Establishing Evidence-based Evaluation Methods for Subsidy Programmes in Germany (EVA-KULT)

European Regional Development Fund (ERDF)

The project aims at expanding the Centre for Evidence-based Policy Advice at the Halle Institute for Economic Research (IWH-CEP).

PD Dr Mirko Titze

Publications

cover_industry-and-innovation.jpg

Identifying Cooperation for Innovation―a Comparison of Data Sources

Michael Fritsch Mirko Titze M. Piontek

in: Industry and Innovation, forthcoming

Abstract

The value of social network analysis is critically dependent on the comprehensive and reliable identification of actors and their relationships. We compare regional knowledge networks based on different types of data sources, namely, co-patents, co-publications, and publicly subsidized collaborative R&D projects. Moreover, by combining these three data sources, we construct a multilayer network that provides a comprehensive picture of intraregional interactions. By comparing the networks based on the data sources, we address the problems of coverage and selection bias. We observe that using only one data source leads to a severe underestimation of regional knowledge interactions, especially those of private sector firms and independent researchers.

read publication

cover_regional-science-and-urban-economics.jpg

The Regional Effects of a Place-based Policy – Causal Evidence from Germany

Matthias Brachert Eva Dettmann Mirko Titze

in: Regional Science and Urban Economics, 2019

Abstract

The German government provides discretionary investment grants to structurally weak regions in order to reduce regional inequality. We use a regression discontinuity design that exploits an exogenous discrete jump in the probability of regional actors to receive investment grants to identify the causal effects of the policy. We find positive effects of the programme on district-level gross value-added and productivity growth, but no effects on employment and gross wage growth.

read publication

cover_regional-studies.jpg

Do Diasporas Affect Regional Knowledge Transfer within Host Countries? A Panel Analysis of German R&D Collaborations

Lutz Schneider Alexander Kubis Mirko Titze

in: Regional Studies, No. 1, 2019

Abstract

Interactive regional learning involving various actors is considered a precondition for successful innovations and, hence, for regional development. Diasporas as non-native ethnic groups are regarded as beneficial since they enrich the creative class by broadening the cultural base and introducing new routines. Using data on research and development (R&D) collaboration projects, the analysis provides tentative evidence that the size of diasporas positively affects the region’s share of outward R&D linkages enabling the exchange of knowledge. The empirical analysis further confirms that these interactions mainly occur between regions hosting the same diasporas, pointing to a positive effect of ethnic proximity rather than ethnic diversity.

read publication

cover_jahrbuecher-fuer-nationaloekonomie-und-statistik.jpg

Public Investment Subsidies and Firm Performance – Evidence from Germany

Matthias Brachert Eva Dettmann Mirko Titze

in: Jahrbücher für Nationalökonomie und Statistik, No. 2, 2018

Abstract

This paper assesses firm-level effects of the single largest investment subsidy programme in Germany. The analysis considers grants allocated to firms in East German regions over the period 2007 to 2013 under the regional policy scheme Joint Task ‘Improving Regional Economic Structures’ (GRW). We apply a coarsened exact matching (CEM) in combination with a fixed effects difference-in-differences (FEDiD) estimator to identify the effects of programme participation on the treated firms. For the assessment, we use administrative data from the Federal Statistical Office and the Offices of the Länder to demonstrate that this administrative database offers a huge potential for evidence-based policy advice. The results suggest that investment subsidies have a positive impact on different dimensions of firm development, but do not affect overall firm competitiveness. We find positive short- and medium-run effects on firm employment. The effects on firm turnover remain significant and positive only in the medium-run. Gross fixed capital formation responses positively to GRW funding only during the mean implementation period of the projects but becomes insignificant afterwards. Finally, the effect of GRW-funding on labour productivity remains insignificant throughout the whole period of analysis.

read publication

cover_journal-of-international-money-and-finance.png

Central Bank Transparency and Cross-border Banking

Stefan Eichler Helge Littke Lena Tonzer

in: Journal of International Money and Finance, 2017

Abstract

We analyze the effect of central bank transparency on cross-border bank activities. Based on a panel gravity model for cross-border bank claims for 21 home and 47 destination countries from 1998 to 2010, we find strong empirical evidence that a rise in central bank transparency in the destination country, on average, increases cross-border claims. Using interaction models, we find that the positive effect of central bank transparency on cross-border claims is only significant if the central bank is politically independent and operates in a stable economic environment. Central bank transparency and credibility are thus considered complements by banks investing abroad.

read publication
Mitglied der Leibniz-Gemeinschaft LogoTotal-Equality-LogoWeltoffen Logo