Alternatives to GDP - Measuring the Impact of Natural Disasters using Panel Data
Jörg Döpke, Philip Maschke
Journal of Economic and Social Measurement,
No. 3,
2016
Abstract
A frequent criticism of GDP states that events that obviously reduce welfare of people can nevertheless increase GDP per capita. We use data of natural disasters as quasi experiments to examine whether alternatives to GDP (Human Development Index, Progress Index, Index of Economic Well-Being and a Happiness Index) lead to more plausible responses to disasters. Applying a Differences-in-Differences approach and estimates from various panels of countries we find no noteworthy differences between the response of real GDP per capita and the responses of suggested alternative welfare measures to a natural disaster except for the Human Development Index.
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18.10.2016 • 46/2016
No Sign of Price Distortions – Lack of Evidence for Effects of US Bank Bailouts
There has been much political and public controversy surrounding the very large rescue packages offered to the banking sector in the course of the financial crisis of 2007 to 2009. The aim of the packages was to stabilise the financial sector and, therefore, the development of the real economy. The downsides of these bailouts were the enormous financial cost to the taxpayer, increased assumption of risk by the government and possible distortive effects on competition in the banking market – since not all banks were given financial support. Researchers at the Halle Institute for Economic Research (IWH) – Member of the Leibniz Association led by Professor Felix Noth have now studied the long-term, indirect and possible market-distorting effects of the US rescue packages.
Felix Noth
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09.09.2016 • 38/2016
The Perception of Financial Inferiority Nurtures Negative Attitudes Towards Foreigners
When people feel that their own economic status is inferior to the economic status of a relevant peer group, it becomes more likely that they develop negative attitudes towards foreigners. This link was found in a new study of the Halle Institute for Economic Research (IWH) – Member of the Leibniz Association. The effect is particularly strong with respect to foreigners from low-wage countries.
Walter Hyll
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A Fresh Look at the Labor Market Height Premium in Germany
Frieder Kropfhäußer
Economics Bulletin,
No. 3,
2016
Abstract
I use data from the German Socio-Economic Panel Study (SOEP) to analyze the relationship between height and wages in a sample of young German workers. My results show that the crude height wage premium documented in the literature is explained by unobserved heterogeneity on the sibling level. This contradicts the findings of a labor market height premium in Germany using OLS and Hausman-Taylor estimators as well as the Swedish finding of a height effect remaining after controlling for sibling fixed effects.
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Im Fokus: Industrielle Kerne in Ostdeutschland und wie es dort heute aussieht – Das Beispiel des Metallurgiestandorts Eisenhüttenstadt
Gerhard Heimpold
Wirtschaft im Wandel,
No. 3,
2016
Abstract
Der Metallurgiestandort Eisenhüttenstadt gehörte zu den industriellen Kernen, um deren Erhalt nach Herstellung der Einheit Deutschlands gerungen wurde. Der Beitrag untersucht, wie der Kern nach mehr als 25 Jahren Deutscher Einheit dasteht und welche Entwicklung sich vollzogen hat. Das Eisenhüttenstädter Unternehmen bildet weiterhin den prägenden industriellen Kern für die Region, bei starkem Beschäftigungsrückgang. Nach der Übernahme durch den privaten Investor Ende 1994 wurde die bis dahin existierende produktivitätsmindernde Lücke in der Wertschöpfungskette durch Errichtung eines Warmwalzwerks geschlossen. Auch ein neuer Hochofen wurde errichtet. Das Eisenhüttenstädter Werk gehört heute zu ArcelorMittal, dem weltweit größten Stahlkonzern, und ist einer von vier Stahlproduktionsstandorten des Konzerns in Deutschland. Geforscht wird an anderen Standorten außerhalb Deutschlands. Hergestellt werden qualitativ hochwertige Flachstähle für die zentral- und osteuropäischen Märkte. Die Produktion ist hochmodern und wettbewerbsfähig, sieht sich aber insbesondere durch Importwettbewerb und Pläne der EU-Kommission für den Emissionsrechtehandel herausgefordert. Weiterer Strukturwandel und wirtschaftliche Diversifizierung sind in Eisenhüttenstadt vonnöten.
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Does Administrative Status Matter for Urban Growth? Evidence from Present and Former County Capitals in East Germany
Bastian Heider, Albrecht Kauffmann, Martin T. W. Rosenfeld
Abstract
Public sector activities are often neglected in the economic approaches used to analyze the driving forces behind urban growth. The institutional status of a regional capital is a crucial aspect of public sector activities. This paper reports on a quasi-natural experiment on county towns in East Germany. Since 1990, cities in East Germany have demonstrated remarkable differences in population development. During this same period, many towns have lost their status as a county seat due to several administrative reforms. Using a difference-in-difference approach, the annual population development of former county capitals is compared to population change in towns that have successfully held on to their capital status throughout the observed period. The estimations show that maintaining county capital status has a statistically significant positive effect on annual changes in population. This effect is furthermore increasing over time after the implementation of the respective reforms.
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24.06.2016 • 26/2016
UK’s “No” to EU will be costly for both sides
On Thursday 23rd, the British people have decided to leave the European Union (EU) Their vote not to remain in the European community was surprisingly clear. UK’s exit will have both political and economic consequences which are far-reaching for the country itself as well as the rest of Europe. “The reactions of the remaining member states are the crucial key now, especially France’s and Germany’s” says Reint E. Gropp, President of the Halle Institute for Economic Research (IWH) – Member of the Leibniz Association.
Reint E. Gropp
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Social Distress and Economic Integration
Walter Hyll, Lutz Schneider
IWH Discussion Papers,
No. 21,
2016
Abstract
We analyze whether social distress from income comparisons affects attitudes towards the integration of economies. Using Germany’s division as natural experiment, we find that East Germans’ feelings of relative deprivation with respect to better-off West Germans led to significantly more support for the upcoming German re-unification.
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Gemeinschaftsdiagnose Frühjahr 2016: Aufschwung bleibt moderat – Wirtschaftspolitik wenig wachstumsorientiert
Wirtschaft im Wandel,
No. 2,
2016
Abstract
Anfang des Jahres 2016 wurde deutlich, dass sich die Weltwirtschaft in den Monaten zuvor merklich abgekühlt hatte. Die schlechten Nachrichten führten auf den Aktienmärkten im Januar und Februar weltweit zu erheblichen Bewertungsverlusten sowie zu einem deutlichen Anstieg der Risikowahrnehmung.
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Buy, Keep, or Sell: Economic Growth and the Market for Ideas
Ufuk Akcigit, Murat Alp Celik, Jeremy Greenwood
Econometrica,
No. 3,
2016
Abstract
An endogenous growth model is developed where each period firms invest in researching and developing new ideas. An idea increases a firm's productivity. By how much depends on the technological propinquity between an idea and the firm's line of business. Ideas can be bought and sold on a market for patents. A firm can sell an idea that is not relevant to its business or buy one if it fails to innovate. The developed model is matched up with stylized facts about the market for patents in the United States. The analysis gauges how efficiency in the patent market affects growth.
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