19.09.2019 • 19/2019
Long-term effects of privatisation in eastern Germany: award-winning US economist begins large-scale research project at the IWH
It is one of the most prestigious awards in the German scientific community: the Max Planck-Humboldt Research Award 2019 endowed with €1.5 million goes to Ufuk Akcigit, Professor of Economics at the University of Chicago. At the Halle Institute for Economic Research (IWH), Akcigit aims to use innovative methods to investigate why the economy in eastern Germany is still lagging behind that in western Germany – and what role the privatisation process 30 years ago played in this.
Reint E. Gropp
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05.09.2019 • 18/2019
Downturn in Germany continues
Trade disputes are causing international trade in goods to decline this year. The manufacturing industry in Germany is particularly affected by this. However, a robust labour market is supporting the economy. According to IWH autumn economic forecast, German gross domestic product (GDP) will increase by 0.5% in 2019. At 1%, output growth in East Germany is likely to be significantly higher than in West Germany.
Oliver Holtemöller
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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
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08.05.2019 • 11/2019
Erweiterung des IWH beschlossen
Die Gemeinsame Wissenschaftskonferenz (GWK) von Bund und Ländern hat dem Antrag des Leibniz-Instituts für Wirtschaftsforschung Halle (IWH) auf einen großen strategischen Sondertatbestand in Form einer strategischen Erweiterung zugestimmt. Ab dem Jahr 2020 erhält das Institut eine zusätzliche Grundfinanzierung in Höhe von 1,3 Millionen Euro jährlich. IWH-Präsident Reint E. Gropp zeigt sich außerordentlich erfreut über den großen Erfolg.
Reint E. Gropp
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28.01.2019 • 2/2019
Wissenschaftsrat stimmt IWH-Erweiterung zu
Der Wissenschaftsrat befürwortet die Gründung einer neuen Abteilung am Leibniz-Institut für Wirtschaftsforschung Halle (IWH). Mit zusätzlichen Forschenden und einem neuen Ansatz will das Institut untersuchen, welche Auswirkungen das Zusammenspiel von unterschiedlichen staatlichen Eingriffen in Finanz- und Arbeitsmärkte auf die Gesamtwirtschaft hat.
Reint E. Gropp
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19.12.2018 • 23/2018
IWH Mid-term Projections: The German Economy and Public Finances 2018 to 2025
In 2018 the general government overall balance is likely to be in surplus by almost 60 billion euros. In the medium term, however, demographic conditions will deteriorate, as will public finances. The financial position of the German state will nevertheless remain stable until 2025, unless major negative shocks occur. “But even if interest rates rose significantly or foreign demand declined markedly, only moderate deficits would arise”, says Oliver Holtemöller, head of the Department of Macroeconomics and vice president at Halle Institute for Economic Research (IWH). However, given the expected reduction of the surplus under existing legislation, there is no room for further increases in spending.
Oliver Holtemöller
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18.12.2018 • 22/2018
IWH leads large scale EU research project on productivity
Is productivity growth slowing in industrialised countries? And if so, why? From the start of 2019, the Halle Institute for Economic Research (IWH) will be addressing these questions as the coordinator of a new EU project. Economists and statistics experts from nine European partners will collaborate on the three-year project, entitled MICROPROD. With a total budget of just under three million euros, it is the IWH’s largest EU project to date.
Steffen Müller
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13.12.2018 • 21/2018
Economic activity in the world and in Germany is losing momentum
In the second half of 2018, the upturn of the German economy has stalled. Production of the automotive industry declined because of delays in switching production to WLTP compliant cars. Irrespectively of this, the German export business has been weakening since the beginning of the year, since the global economy, burdened by the political uncertainties surrounding trade conflicts, the impending Brexit and the conflict over the Italian budget, was unable to keep up with the high momentum of 2017. “It is to be expected that the less benign external environment will not only dampen exports, but will also impact on companies’ investment and hiring decisions”, says Oliver Holtemöller, head of the Department Macroeconomics and vice president at Halle Institute for Economic Research (IWH). Gross domestic product is expected to increase by 1.5% in 2018 and by 1.4% in 2019, which is roughly equal to the growth rate of economic capacity in Germany.
Oliver Holtemöller
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19.04.2018 • 7/2018
Joint Economic Forecast Spring 2018: Germany’s Economic Experts Raise Forecast Slightly
Berlin, 19 April – Germany’s leading economic experts raised their forecasts for 2018 and 2019 slightly in their Spring Joint Economic Forecast released on Thursday in Berlin. They now expect economic growth of 2.2 percent for this year and 2.0 percent for 2019, versus 2.0 percent and 1.8 percent respectively in their autumn forecast. “The German economy is still booming, but the air is getting thinner as unused capacities are shrinking“, notes Timo Wollmershaeuser, ifo Head of Economic Forecasting. Commenting on the new German government’s economic policy, he adds: “It is precisely when the government’s coffers are full that fiscal policy should reflect the implications of its actions for overall economic stability and the sustainability of public finances. The extension of statutory pension benefits outlined in the coalition agreement runs counter to the idea of sustainability.”
Oliver Holtemöller
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19.03.2018 • 4/2018
Economists – and the others
People with a background in economics react more strongly to financial incentives – both positively and negatively, as Dmitri Bershadskyy of the Halle Institute for Economic Research (IWH) – Member of the Leibniz Association – found out. At the beginning of his laboratory experiment, economists were prepared to spend more money on a public good and keep to this social behaviour for a longer period than non-economists. However, towards the end of the experiment they were also the greatest free-riders.
Dmitri Bershadskyy
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