Interregional Support Policy for East German Regions
Martin T. W. Rosenfeld
German Annual of Spatial Research and Policy,
2006
Abstract
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Development aid and economic freedom: Are there interrelations?
Tobias Knedlik, Franz Kronthaler
Wirtschaft im Wandel,
No. 11,
2006
Abstract
Development aid attracts currently high public attention, e.g. because of the Millennium Development Goals of the United Nations. Thereby so-called weak factors gain importance in the debate of development policy. In this regard the establishing of enabling conditions, which allow and support economic activities is central. Economic freedom is an important concept in the discussion. The academic literature clearly suggests a positive relation between economic freedom and economic development. This is the motivation to analyze the impact of development aid on economic freedom.
This contribution analysis this impact of two forms of development aid (conditional and overall aid). In contrast to expectations the results show a positive impact of overall aid and a negative impact of conditional aid on economic freedom. Economic policy should consider the positive effect of overall aid and adjust aid conditions according to domestic requirements in recipient countries to avoid negative effects on economic freedom.
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Too old to work? The impact of age on productivity
Lutz Schneider
Wirtschaft im Wandel,
No. 11,
2006
Abstract
Due to the public debate on the raising legal re-tirement age in Germany labor market research has recently focused on an explanation of the low labor market participation rate of elders. In the economic discussion the low participation is pri-marily explained by a supposed imbalance of la-bor costs and returns for old workers. Whereas wages rise with increasing age, the individual productivity seems to fall beyond a certain age. Gerontological research supports this view, since it documents an age-driven decline of physical and certain mental abilities. The study empirically evaluates the thesis of a diminishing individual productivity at higher ages. The analysis is done on the basis of a new dataset for German firms of the manufacturing sector. Using these data the effect of the employee’s age on a firm’s productiv-ity is estimated and conclusions on the job per-formance of workers at different ages are drawn. The performed cross-section-regressions of the years 2003 and 2000 indicate an inverted u-shaped age-productivity-profile. The 25-44 year olds turn out to be the most productive, the share of the over 44 year old workers seems to dampen productivity. However the 15-24 age group makes the lowest productivity contribution. Moreover a positive effect of firm-related experience can be found. Due to elders’ higher stock of firm specific human capital this might at least partly compen-sate the unfavorable effects of aging.
From a political perspective these findings sup-port the view, that an increasing legal retirement age will not automatically lead to a remarkable extension of the labor demand for older people. In addition to legal aspects the wage schemes and the actual productivity profiles in higher age have to be linked more closely together.
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Implementing an International Lender of Last Resort
Tobias Knedlik
IWH Discussion Papers,
No. 20,
2006
Abstract
Current research discusses various general frameworks for installing an international lender of last resort (ILOLR). However, it remains unclear how the ILOLR should actually operate. This paper discusses six different options of construction of an ILOLR who supports central banks in the case of currency crises. The paper concludes that the cost efficient version of the ILOLR would be direct interventions by the IMF by the use of IMF resources and the right to dispose additional reserves from central banks. The paper considers measures of cost efficiency, such as cost of borrowing, intervention, and sterilization and moral hazard problems.
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Die Gestaltung der Wirtschaftsstruktur durch das Land Brandenburg - Eine kritische Analyse der Subventionszahlungen für die CargoLifter AG
Mirko Titze
Forum der Forschung. Wissenschaftsmagazin der Brandenburgischen Technischen Universität Cottbus,
No. 17,
2004
Abstract
The Government of the State of Brandenburg subsidised the company CargoLifter AG on the basis of the „new industrial policy“. Following this policy the government supports individually selected industries or companies. The „new industrial policy“ is supported by the strategic trade policy, which states that subsidising domestic companies in incomplete markets with declining average costs and high entry barriers can increase the welfare level of a particular region. The following article provides an analysis whether in the case of Cargo-Lifter the Government of the State of Brandenburg pursued an effective strategic trade policy. Moreover the article investigates particular problems of the strategic trade policy.
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Microeconometric Evaluation of Selected ESF-funded ALMP-Programmes
Eva Reinowski, Birgit Schultz
IWH Discussion Papers,
No. 17,
2006
Abstract
The study evaluates different ESF-funded labour market programmes by comparing the labour market status at different points in time after the treatment. In order to solve the selection problem we employ a standard matching algorithm with a multi-dimensional distance measure. The effects of the analyzed programmes (wage subsidies, start-up subsidies and qualification measures for recipients of social welfare) are very heterogeneous. It can be observed that the direct integration into the regular labour market provides an advantage for the supported individuals. Its lasting effects, however, strongly depend on the group of persons being supported, the type of treatment and the employers’ financial share.
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Intermediate central communities in Rural Regions - A qualitative instrument for analysis
Alexander Kubis
Теоретические основы и опыт стратегическ,
2006
Abstract
This study shows specific strengths and weaknesses of the economic potential of rural regions by using qualitative, statistic methods. At this, groups of central communities are formed to analyze their potentials. The application of intermediate central communities, which are a functional link between periphery and main central communities, is the particular characteristic of this study, which applies the municipality as the least possible regional level of analysis. There is a massive, structural need for adjustment in the Eastern German States for these central communities. Furthermore, specific, structural deficits can be shown for the West German States as well. The recommended method allows to take all relevant deficits adequately into consideration within a regional policy. The delineated statements provide sufficient statistical support.
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Industry Level Technology Gaps and Complementary Knowledge Stocks as Determinants of Intra-MNC Knowledge Flows
Björn Jindra, Johannes Stephan
East-West Journal of Economics and Business,
1 & 2
2005
Abstract
Pursuing a subsidiary level analysis, we this paper tests the ‘technology gap’ hypothesis in the context of intra-MNC knowledge flows. Furthermore, it introduces complementary knowledge stocks into the concept of absorptive capacity. A set of hypotheses is tested in sample 434 foreign subsidiaries based in Central and East Europe. We find partial support for the ‘technology gap’ hypothesis applied at industry level. Furthermore, subsidiaries’ complementary knowledge stocks increase the probability for corresponding knowledge inflows from the foreign parent.
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The (never) ending story of the truck toll system – a contract theory view
Niels Krap
Wirtschaft im Wandel,
No. 11,
2005
Abstract
After long-lasting negotiations, representatives of the Federal Government and the consortium Toll Collect signed a 17,000 pages contract on 20 September, 2002. It was fixed that Toll Collect had to develop and afterwards operate a system for the automatic collection of a satellite-supported distance-based truck toll until the end of August 2003. However, technical difficulties in the development of the new system led to delays to an unexpected extent. In this article, it is examined whether the results of the renegotiations that followed were consistent to the economics of contract theory. It can be shown that both contracting parties were bound to the contractual relation, so that the preliminary termination of the contract by the Federal Minister of Transport on 17 February, 2004 became void by an agreement only few days later. Additionally, it could be identified that the contract set correct incentives for both parties, Federal Government and Toll Collect, and covered the possibility of efficient renegotiation.
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Financial Openness and Business Cycle Volatility
Claudia M. Buch, Jörg Döpke, C. Pierdzioch
Journal of International Money and Finance,
No. 5,
2005
Abstract
This paper discusses whether the integration of international financial markets affects business cycle volatility. In the framework of a new open economy macro-model, we show that the link between financial openness and business cycle volatility depends on the nature of the underlying shock. Empirical evidence supports this conclusion. Our results also show that the link between business cycle volatility and financial openness has not been stable over time.
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