Establishment Survival in East and West Germany: A Comparative Analysis
Using a large administrative dataset, this paper compares the development of new establishments’ survival chances in East and West Germany for the period 1994 – 2008. A central question is whether convergence with respect to survival rates between East and West Germany can be observed. Using methods of survival analysis, I find that new establishments’ survival chances do not differ strongly between East and West Germany at the beginning of the observation period. In 1998 and 1999 the exit hazard increases strongly in East but not in West Germany, which is likely to be due to a change in the subsidy policy affecting East Germany. Since the turn of the millennium, the difference in establishments’ exit hazard between East and West Germany becomes smaller, indicating that there is convergence with respect to establishments’ survival chances.
Impact of Personal Economic Environment and Personality Factors on Individual Financial Decision Making
Frontiers in Decision Neuroscience,
This study on healthy young male students aimed to enlighten the associations between an individual’s financial decision making and surrogate makers for environmental factors covering long-term financial socialization, the current financial security/responsibility, and the personal affinity to financial affairs as represented by parental income, funding situation, and field of study. A group of 150 male young healthy students underwent two versions of the Holt and Laury (2002) lottery paradigm (matrix and random sequential version). Their financial decision was mainly driven by the factor “source of funding”: students with strict performance control (grants, scholarships) had much higher rates of relative risk aversion (RRA) than subjects with support from family (ΔRRA = 0.22; p = 0.018). Personality scores only modestly affected the outcome. In an ANOVA, however, also the intelligence quotient significantly and relevantly contributed to the explanation of variance; the effects of parental income and the personality factors “agreeableness” and “openness” showed moderate to modest – but significant – effects. These findings suggest that environmental factors more than personality factors affect risk aversion.