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 Team 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
Research Group Head
If you have any further questions please contact me.
+49 345 7753-861 Request per E-Mail
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.
Projects
FLEXPANELDID: Stata module to perform causal analysis of treatments with varying start dates and durations
flexpaneldid: A Stata Toolbox for Causal Analysis with Varying Treatment Time and Duration
in: IWH Discussion Papers, No. 3, 2020
Abstract
The paper presents a modification of the matching and difference-in-differences approach of Heckman et al. (1998) for the staggered treatment adoption design and a Stata tool that implements the approach. This flexible conditional difference-in-differences approach is particularly useful for causal analysis of treatments with varying start dates and varying treatment durations. Introducing more flexibility enables the user to consider individual treatment periods for the treated observations and thus circumventing problems arising in canonical difference-in-differences approaches. The open-source flexpaneldid toolbox for Stata implements the developed approach and allows comprehensive robustness checks and quality tests. The core of the paper gives comprehensive examples to explain the use of the commands and its options on the basis of a publicly accessible data set.
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).
Publications
Identifying Cooperation for Innovation―a Comparison of Data Sources
in: Industry and Innovation, No. 6, 2020
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.
The Effects of German Regional Policy – Evidence at the Establishment Level
in: IWH Online, No. 5, 2020
Abstract
The “Joint Task ‘Improving Regional Economic Structures’ (GRW)” represents the most important regional policy scheme in Germany. The program provides non-repayable grants as a share of total investment costs to establishments (and municipalities) in structurally weak regions. The definition of eligible areas is based on i) a composite indicator measuring regional structural weakness and ii) a threshold determined by the European Union consisting of the population share of the respective country that lives in assisted regions. Responsible for the selection of the supported projects is the respective Federal State in which the GRW project is applied for.
Ostdeutschland - Eine Bilanz
in: One-off Publications, 2020
Abstract
Anlass dieser Festschrift ist die Verabschiedung von Dr. Gerhard Heimpold, dem stellvertretenden Leiter der Abteilung Strukturwandel und Produktivität am Leibniz-Institut für Wirtschaftsforschung Halle (IWH), aus dem aktiven Berufsleben in den wohlverdienten Ruhestand. Gerhard Heimpold forschte am IWH zu Aspekten der Regionalentwicklung Ostdeutschlands unter Beachtung des politischen und wirtschaftlichen Transformationsprozesses. Er gehört heute zu den wenigen Experten in Deutschland, die umfassende ökonomische Kenntnis über den gesamten Verlauf des Transformationsprozesses der ostdeutschen Wirtschaft seit Mitte der 1980er Jahre vorweisen können. Gerhard Heimpold hat im Laufe seiner akademischen Ausbildung und seiner ersten wissenschaftlichen Tätigkeit tiefe Einblicke in die Ausgestaltung und Funktionsweise der sozialistischen Planwirtschaft der DDR erhalten und konnte dieses Wissen nach dem Mauerfall 1989 in wichtige wissenschaftliche Beiträge auf dem Gebiet der internationalen Transformationsforschung einbringen.
Zu den betrieblichen Effekten der Investitionsförderung im Rahmen der deutschen Regionalpolitik
in: Wirtschaft im Wandel, No. 1, 2020
Abstract
Die Wirtschaft in den Industrieländern unterliegt einem ständigen Anpassungsdruck. Wichtige aktuelle Treiber des Strukturwandels sind vor allem die Globalisierung, der technologische Fortschritt (insbesondere durch Digitalisierung und Automatisierung), die Demographie (durch Alterung und Schrumpfung der Bevölkerung) und der Klimawandel. Von diesem Anpassungsdruck sind jedoch die Regionen in Deutschland sehr unterschiedlich betroffen. Regionalpolitik verfolgt das Ziel, Regionen bei der Bewältigung des Strukturwandels zu unterstützen. Ein besonderer Fokus liegt dabei auf Regionen, die ohnehin durch Strukturschwächen gekennzeichnet sind. Die aktuelle Regionalförderung in Deutschland basiert im Wesentlichen auf der Förderung von Investitionen von Betrieben und Kommunen. Die Evaluierung dieser Programme muss integraler Bestandteil der Regionalpolitik sein – schließlich stellt sich immer die Frage nach einer alternativen Verwendung knapper öffentlicher Mittel. Eine Pilotstudie für Sachsen-Anhalt zeigt, dass die im Rahmen der Regionalpolitik gewährten Investitionszuschüsse einen positiven Effekt auf Beschäftigung und Investitionen der geförderten Betriebe haben; bei den Investitionen allerdings nur für die Dauer des Projekts. Effekte der Förderung auf Umsatz und Produktivität von Betrieben in Sachsen-Anhalt waren nicht nachweisbar.
flexpaneldid: A Stata Toolbox for Causal Analysis with Varying Treatment Time and Duration
in: IWH Discussion Papers, No. 3, 2020
Abstract
The paper presents a modification of the matching and difference-in-differences approach of Heckman et al. (1998) for the staggered treatment adoption design and a Stata tool that implements the approach. This flexible conditional difference-in-differences approach is particularly useful for causal analysis of treatments with varying start dates and varying treatment durations. Introducing more flexibility enables the user to consider individual treatment periods for the treated observations and thus circumventing problems arising in canonical difference-in-differences approaches. The open-source flexpaneldid toolbox for Stata implements the developed approach and allows comprehensive robustness checks and quality tests. The core of the paper gives comprehensive examples to explain the use of the commands and its options on the basis of a publicly accessible data set.
The Regional Effects of a Place-based Policy – Causal Evidence from Germany
in: Regional Science and Urban Economics, November 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.
The Impact of Innovation and Innovation Subsidies on Economic Development in German Regions
in: Regional Studies, No. 9, 2019
Abstract
Public innovation subsidies in a regional environment are expected to unfold a positive economic impact over time. The focus of this paper is on an assessment of the long-run impact of innovation and innovation subsidies in German regions. This is scrutinized by an estimation approach combining panel model and time-series characteristics and using regional data for the years 1980–2014. The results show that innovation and innovation subsidies in the long run have a positive impact on the economic development of regions in Germany. This supports a long-term strategy for regional and innovation policy.
Do Diasporas Affect Regional Knowledge Transfer within Host Countries? A Panel Analysis of German R&D Collaborations
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.
Expertisen zur Evaluation der Gemeinschaftsaufgabe „Verbesserung der regionalen Wirtschaftsstruktur“ (GRW) in Sachsen-Anhalt
in: IWH Online, No. 2, 2018
Abstract
Investitionszuschüsse im Rahmen der Gemeinschaftsaufgabe „Verbesserung der regionalen Wirtschaftsstruktur“ (GRW) haben eine hohe Bedeutung im Rahmen der Wirtschaftsförderung des Landes Sachsen-Anhalt. Die Ziele der GRW-Förderung in Sachsen-Anhalt umfassen den Aufbau einer breitgefächerten, modernen Wirtschaftsstruktur, die Modernisierung und Erneuerung des Kapitalstocks, die Steigerung der Arbeitsproduktivität und die Schaffung neuer wettbewerbsfähiger Arbeitsplätze. Die vorliegenden drei Expertisen evaluieren diese Förderung mit Blick auf die GRW-Landesregeln, den Zusammenhang zwischen den wirtschaftspolitischen Maßnahmen und deren Wirkung sowie die Beschäftigungseffekte als einen Schwerpunkt der gewerblichen Förderung.
Public Investment Subsidies and Firm Performance – Evidence from Germany
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.
