Technology Clubs, R&D and Growth Patterns: Evidence from EU Manufacturing
Claire Economidou, J. W. B. Bos, Michael Koetter
European Economic Review,
No. 1,
2010
Abstract
This paper investigates the forces driving output change in a panel of EU manufacturing industries. A flexible modeling strategy is adopted that accounts for: (i) inefficient use of resources and (ii) differences in the production technology across industries. With our model we are able to identify technical, efficiency, and input growth for endogenously determined technology clubs. Technology club membership is modeled as a function of R&D intensity. This framework allows us to explore the components of output growth in each club, technology spillovers and catch-up issues across industries and countries.
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Do All Countries Grow Alike?
Claire Economidou, J. W. B. Bos, Michael Koetter, James W. Kolari
Journal of Development Economics,
No. 1,
2010
Abstract
This paper investigates the driving forces of output change in 77 countries during the period 1970–2000. A flexible modeling strategy is adopted that accounts for (i) the inefficient use of resources, and (ii) different production technologies across countries. The proposed model can identify technical, efficiency, and input change for each of three endogenously determined regimes. Membership in these regimes is estimated, rather than determined ex ante. This framework enables explorations into the determinants of output growth and convergence issues in each regime.
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Deriving the Term Structure of Banking Crisis Risk with a Compound Option Approach: The Case of Kazakhstan
Stefan Eichler, Alexander Karmann, Dominik Maltritz
Discussion paper, Series 2: Banking and financial studies, No. 01/2010,
No. 1,
2010
Abstract
We use a compound option-based structural credit risk model to infer a term structure of banking crisis risk from market data on bank stocks in daily frequency. Considering debt service payments with different maturities this term structure assigns a separate estimator for short- and long-term default risk to each maturity. Applying the Duan (1994) maximum likelihood approach, we find for Kazakhstan that the overall crisis probability was mainly driven by short-term risk, which increased from 25% in March 2007 to 80% in December 2008. Concurrently, the long-term default risk increased from 20% to only 25% during the same period.
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Industry Concentration and Regional Innovative Performance – Empirical Evidence for Eastern Germany
Christoph Hornych, Michael Schwartz
Post-Communist Economies,
2009
Abstract
Regarding technological innovativeness, the transformed economy of the former German Democratic Republic (GDR) clearly lags behind the western part of the country. To face this weakness a broad mixture of policy measures was carried out in recent years. Particular attention is drawn to the development of industry concentrations and economic ‘clusters’. However, little is known about the effectiveness of these policy measures regarding how industry concentrations in fact promote innovative performance in Eastern Germany. The present study tries to fill this gap by analysing the relationship between industry concentration in Eastern Germany and regional innovative performance. Our empirical analysis is based upon the number of patent applications of 22 manufacturing industries in 22 Eastern German planning regions. The estimated regression models indicate an inverted-U relationship between the degree of industry concentration and innovative performance. An exceedingly high degree of industry concentration in one region hampers regional innovative output. We discuss policy implications of our findings and give recommendations for future refinement of ‘cluster’-supporting policy schemes in Eastern Germany.
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Folgen des Wettbewerbs zwischen Krankenversicherungen für die Kosten im Gesundheitswesen
Ingmar Kumpmann
Gesundheitspolitik, Wettbewerb und Gesundheitssystemforschung. DIBOGS-Beiträge zur Gesundheitsökonomie und Sozialpolitik Bd. 3,
2009
Abstract
In this study it is argued that competition among health insurers can bring about higher costs in the health care sector. Medical services are inhomogeneous goods; thus the competition between physicians can be modeled by Chamberlins concept of monopolistic competition. The physicians have a strong bargaining power face to face a multitude of competing health insurers acting as purchasers of health care services. The costs can be lower if the physicians’ strong position is compensated by a monopolistic health insurer. Two case studies show the applicability of the argument. A regression analysis confirms the correlation between (public) monopolistic health insurer and lower costs in the health care sector.
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From District Capital to State Capital: What are the Consequences of Rebuilding the East German States for the System of Cities?
Albrecht Kauffmann
Wirtschaft im Wandel,
No. 12,
2009
Abstract
20 years after the German unification, one may ask what consequences for the system of East German cities follow from the changes of the institutional framework. It may be expected that gains or losses of a location in the hierarchy of central places significantly affect the outcome of economic activity as well as the accumulation of – particularly human – capital. The reorganisation of countries on the territory of the former GDR that has elevated five former district capitals to the status of state capitals while the other ones became urban municipalities has created a model case whose implications were investigated by the IWH. The main objective was to identify a pattern of group formation within the former district capitals on the basis of socioeconomic indicators that coincides with the subgroups out of them with and without the status of a capital state. By means of cluster analysis, we have found that already from 1995 to 2000, differences between both groups with regard to income, structure of employment, human capital, and other indicators were significantly. In the period from 2002 to 2007, the spread of income is growing not only between both groups but also within the group of state capitals, dividing their cluster. We can conclude that the allocation of political institutions of higher centrality has influence on local economic development.
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Margins of international banking: Is there a productivity pecking order in banking, too?
Claudia M. Buch
Bundesbank Discussion Paper 12/2009,
2009
Abstract
Modern trade theory emphasizes firm-level productivity differentials to explain
the cross-border activities of non-financial firms. This study tests whether a
productivity pecking order also determines international banking activities. Using
a novel dataset that contains all German banks’ international activities, we
estimate the ordered probability of a presence abroad (extensive margin) and the
volume of international assets (intensive margin). Methodologically, we enrich the
conventional Heckman selection model to account for the self-selection of banks
into different modes of foreign activities using an ordered probit. Four main
findings emerge. First, similar to results for non-financial firms, a productivity
pecking order drives bank internationalization. Second, only a few non-financial
firms engage in international trade, but many banks hold international assets, and
only a few large banks engage in foreign direct investment. Third, in addition to
productivity, risk factors matter for international banking. Fourth, gravity-type
variables have an important impact on international banking activities.
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Shocks at Large Banks and Banking Sector Distress: The Banking Granular Residual
S. Blank, Claudia M. Buch, Katja Neugebauer
Journal of Financial Stability,
No. 4,
2009
Abstract
Size matters in banking. In this paper, we explore whether shocks originating at large banks affect the probability of distress of smaller banks and thus the stability of the banking system. Our analysis proceeds in two steps. In a first step, we follow Gabaix and construct a measure of idiosyncratic shocks at large banks, the so-called Banking Granular Residual. This measure documents the importance of size effects for the German banking system. In a second step, we incorporate this measure of idiosyncratic shocks at large banks into an integrated stress-testing model for the German banking system following De Graeve et al. (2008). We find that positive shocks at large banks reduce the probability of distress of small banks.
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What Happened to the East German Housing Market? – A Historical Perspective on the Role of Public Funding –
Claus Michelsen, Dominik Weiß
IWH Discussion Papers,
No. 20,
2009
Abstract
The paper analyses the development of the East German housing market after the reunification of the former German Democratic Republic and the Federal Republic of Germany in 1990. We analyse the dynamics of the East German housing market within the framework of the well-known stock-flow model, proposed by DiPasquale and Wheaton. We show that the today observable disequilibrium to a large extend is caused by post-unification housing policy and its strong fiscal incentives to invest into the housing stock. Moreover, in line with the stylized empirical facts, we show that ‘hidden reserves’ of the housing market were reactivated since the economy of East Germany became market organized. Since initial undersupply was overcome faster than politicians expected, the implemented fiscal stimuli were too strong. In contrast to the widespread opinion that outward migration caused the observable vacancies, this paper shows that not weakness of demand but supply side policies caused the observable disequilibrium.
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