A Note of Caution on Quantifying Banks' Recapitalization Effects
Deutsche Bundesbank Discussion Paper,
Unconventional monetary policy measures like asset purchase programs aim to reduce certain securities' yield and alter financial institutions' investment behavior. These measures increase the institutions' market value of securities and add to their equity positions. We show that the extent of this recapitalization effect crucially depends on the securities' accounting and valuation methods, country-level regulation, and maturity structure. We argue that future research needs to consider these factors when quantifying banks' recapitalization effects and consequent changes in banks' lending decisions to the real sector.
People Doctoral Students PhD...
IWH Autumn Forecast: Production bottlenecks delay recovery The German recovery made good progress over the summer 2021....
PostDoc in Financial Economics (f/m/x) - reference number 2021-08
Stellenausschreibung PostDoc in Financial Economics (f/m/x) -...
Assistant Professor in Financial Economics (W1) (f/m/x)
Job Vacancy Assistant Professor in Financial Economics (W1) (f/m/x) ...
Productivity: More with Less by Better Available resources are scarce. To sustain our...
IWH Alumni The IWH would like to stay in contact with its former employees. We...
Gender Equality & Anti-Discrimination
Equal Opportunities at IWH ...
Employment Effects of Introducing a Minimum Wage: The Case of Germany
Income inequality has been a major concern of economic policy makers for several years. Can minimum wages help to mitigate inequality? In 2015, the German government introduced a nationwide statutory minimum wage to reduce income inequality by improving the labour income of low-wage employees. However, the employment effects of wage increases depend on time and region specific conditions and, hence, they cannot be known in advance. Because negative employment effects may offset the income gains for low-wage employees, it is important to evaluate minimum-wage policies empirically. We estimate the employment effects of the German minimum-wage introduction using panel regressions on the state-industry-level. We find a robust negative effect of the minimum wage on marginal and a robust positive effect on regular employment. In terms of the number of jobs, our results imply a negative overall effect. Hence, low-wage employees who are still employed are better off at the expense of those who have lost their jobs due to the minimum wage.