Spillovers of Asset Purchases Within the Real Sector: Win-Win or Joy and Sorrow?
Talina Sondershaus
IWH Discussion Papers,
No. 22,
2019
Abstract
Events which have an adverse or positive effect on some firms can disseminate through the economy to firms which are not directly affected. By exploiting the first large sovereign bond purchase programme of the ECB, this paper investigates whether more lending to some firms spill over to firms in the surroundings of direct beneficiaries. Firms operating in the same industry and region invest less and reduce employment. The paper shows the importance to consider spillover effects when assessing unconventional monetary policies: Differences between treatment and control groups can be entirely attributed to negative effects on the control group.
Read article
26.06.2019 • 14/2019
Study: How financial crises lower life satisfaction and how to prevent this
Financial crises not only result in severe disruptions to the economic system, they also affect people’s life satisfaction. A new study by Martin Luther University Halle-Wittenberg (MLU) and the Halle Institute for Economic Research (IWH) shows that weaker members of society are more affected by increased uncertainty during crisis times, even if they may not be speculating on the stock market themselves. This could potentially also lower their propensity to consume, thereby intensifying the impact of a financial crisis. The study was recently published in “The B.E. Journal of Economic Analysis & Policy”.
Lena Tonzer
Read press release
Homepage
Global Economy Gains Momentum – But Germany still Stuck in a Downturn In 2020, the global economy is likely to benefit...
See page
Charts
Info Graphs Sometimes pictures say more than a thousand words. Therefore, we selected...
See page
Establishing Evidence-based Evaluation Methods for Subsidy Programmes in Germany (EVA-KULT)
Establishing Evidence-based Evaluation Methods for Subsidy Programmes in Germany (EVA-KULT) ...
See page
IWH FDI Micro Database
IWH FDI Micro Database The IWH FDI Micro Database (FDI = Foreign Direct...
See page
Behaviour
The maths behind gut decisions First carefully weigh up the costs and benefits and then make a rational...
See page
Demographic Change
Demographic Change Dossier ...
See page
Financial Stability
Financial Stability Dossier ...
See page
