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IWH-CompNet Discussion Papers
IWH-CompNet Discussion Papers The IWH-CompNet Discussion Paper series presents research...
Benchmark Value-added Chains and Regional Clusters in R&D-intensive Industries
International Regional Science Review,
Although the phase of euphoria seems to be over, policy makers and regional agencies have maintained their interest in cluster policy. Modern cluster theory provides reasons for positive external effects that may accrue from interaction in a group of proximate enterprises operating in common and related fields. Although there has been some progress in locating clusters, in most cases only limited knowledge on the geographical extent of regional clusters has been established. In the present article, we present a hybrid approach to cluster identification. Dominant buyer–supplier relationships are derived by qualitative input–output analysis from national input–output tables, and potential regional clusters are identified by spatial scanning. This procedure is employed to identify clusters of German research and development-intensive industries. A sensitivity analysis reveals good robustness properties of the hybrid approach with respect to variations in the quantitative cluster composition.
09.08.2017 • 29/2017
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During the financial crisis, billions were spent to rescue banks that were according to their governments too big to be allowed to fail. But a study by Michael Koetter from the Halle Institute for Economic Research (IWH) and co-authors shows that besides the size of the banks, the centrality within the global financial network was also pivotal for financial institutions to receive a bail-out.
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Effects of Urban Renewal on Non-subsidised Property Owners: Evidence from East Germany
Town Planning Review,
Urban renewal programmes intervene in the housing market by offering different kinds of subsidies that support the improvement of public spaces or selective demolition. The central aim of this paper is to disentangle the economic impact of these subsidies on property owners and investors by exploring the value of residential real estate. There is limited knowledge as to which type of owners benefit from such actions and whether they even benefit at all. One may expect that the indirect effects of a regime of regulation inspire more confidence in market recovery from the perspective of property owners. By using the theory of real options it is assumed that urban renewal raises the option premium of a property which in turn represents an opportunity to the owners to use and develop their property. This opportunity is based on expectations of higher revenues in the future. The hypothesis of an increasing option premium is explored using data from a large urban renewal programme in East Germany.
Extreme Dependence with Asymmetric Thresholds: Evidence for the European Monetary Union
Journal of Banking & Finance,
Existing papers on extreme dependence use symmetrical thresholds to define simultaneous stock market booms or crashes such as the joint occurrence of the upper or lower one percent return quantile in both stock markets. We show that the probability of the joint occurrence of extreme stock returns may be higher for asymmetric thresholds than for symmetric thresholds. We propose a non-parametric measure of extreme dependence which allows capturing extreme events for different thresholds and can be used to compute different types of extreme dependence. We find that extreme dependence among the stock markets of ten initial EMU member countries, the United Kingdom, and the United States is largely asymmetrical in the pre-EMU period (1989–1998) and largely symmetrical in the EMU period (1999–2010). Our findings suggest that ignoring the possibility of asymmetric extreme dependence may lead to an underestimation of the probability of co-booms and co-crashes.
The Identification of Regional Industrial Clusters Using Qualitative Input-Output Analysis (QIOA)
The 'cluster theory' has become one of the main concepts promoting regional competitiveness, innovation, and growth. As most empirical applications focus on measures of concentration of one industrial branch in order to identify regional clusters, the appropriate analysis of specific vertical relations is developing in this discussion. This paper tries to identify interrelated sectors via national input-output tables with the help of minimal flow analysis (MFA). The regionalization of these national industry templates is carried out with the allocation of branch-specific production values on regional employment. As a result, the paper shows concentrations of vertical clusters in only 27 of 439 German Nomenclature des Unite´s Territoriales Statistiques (NUTS)-3 regions.
On the Look-out for a White Knight: Options-based Calculation of Probability and Expected Value of Increased Bids in Hostile Takeover Battles
Applied Economics Letters,
Takeover bids provide an option right to the target's shareholders; they guarantee the offered price but maintain the chance of higher offers. Using Option Pricing Theory (OPT) we estimate the probability and expected value of higher bids from target stock prices.