Alumni
IWH Alumni The IWH would like to stay in contact with its former employees. We...
See page
Economic Outlook
IWH Summer Forecast 2022 War Drives up Energy Prices ‒ High Inflation Weighs on Economy ...
See page
Corona
Corona The pandemic has posed unprecedented challenges to society and the economy. What is...
See page
Wirtschaft im Wandel
Wirtschaft im Wandel Die Zeitschrift „Wirtschaft im Wandel“ will eine breite...
See page
Behaviour
The maths behind gut decisions First carefully weigh up the costs and benefits and then make a rational...
See page
The Nexus between Loan Portfolio Size and Volatility: Does Bank Capital Regulation Matter?
Franziska Bremus, Melina Ludolph
Journal of Banking and Finance,
June
2021
Abstract
This paper analyzes the effects of bank capital regulation on the link between bank size and volatility. Using bank-level data for 27 advanced economies over the 2000–2014 period, we estimate a power law that relates the volume of a bank’s loan portfolio to the volatility of loan growth. Our analysis reveals, first, that more stringent capital regulation weakens the size-volatility nexus. Hence, in countries with more stringent capital regulation, large banks show, ceteris paribus, lower loan portfolio volatility. Second, the effect of tighter capital requirements on the size-volatility nexus becomes stronger for the upper tail of the bank size distribution. This is in line with capitalization decreasing with bank size, such that larger banks tend to be more affected by increasing capital requirements. Third, in countries with higher sectoral capital buffers, the size-volatility nexus is weaker.
Read article
08.06.2021 • 14/2021
IWH Bankruptcy Update: Still No Bankruptcy Wave in Sight; Number of Impacted Jobs Reaches New Low
In May the number of corporate bankruptcies once again fell significantly. A jump in June is also unlikely, according to early indicators assessed by IWH. The number of jobs impacted by bankruptcy has fallen to the lowest level witnessed since the Corona outbreak. The IWH Bankruptcy Report, published by the Halle Institute for Economic Research (IWH), provides a monthly update on German bankruptcy statistics.
Steffen Müller
Read press release
IWH Bankruptcy Research
IWH Bankruptcy Research The Bankruptcy Research Unit of the Halle Institute for...
See page
CompNet Database
The CompNet Competitiveness Database The Competitiveness Research Network (CompNet)...
See page
Measuring the Impact of Household Innovation Using Administrative Data
Javier Miranda, Nikolas Zolas
Measuring and Accounting for Innovation in the Twenty-First Century,
NBER Studies in Income and Wealth, Vol 78 /
2021
Abstract
We link USPTO patent data to U.S. Census Bureau administrative records on individuals and firms. The combined dataset provides us with a directory of patenting household inventors as well as a time-series directory of self-employed businesses tied to household innovations. We describe the characteristics of household inventors by race, age, gender and U.S. origin, as well as the types of patented innovations pursued by these inventors. Business data allows us to highlight how patents shape the early life-cycle dynamics of nonemployer businesses. We find household innovators are disproportionately U.S. born, white and their age distribution has thicker tails relative to business innovators. Data shows there is a deficit of female and black inventors. Household inventors tend to work in consumer product areas compared to traditional business patents. While patented household innovations do not have the same impact of business innovations their uniqueness and impact remains surprisingly high. Back of the envelope calculations suggest patented household innovations granted between 2000 and 2011 might generate $5.0B in revenue (2000 dollars).
Read article
