Marktmacht, Inputkosten und Technologie
Im Fokus dieser Forschungsgruppe steht die empirische Analyse der Dynamik und Determinanten der wirtschaftlichen Entwicklung. Dabei wird soweit wie möglich anerkannt, dass es einzelne heterogene Unternehmen sind, die durch ihre individuellen Fähigkeiten, Innovationen hervorzubringen und Ressourcen effizient zu allokieren, die Entwicklung auf höherer Aggregationsebene bestimmen. Insgesamt kann die mikrofundierte Analyse zu einem besseren Verständnis der eigentlichen Mechanismen und der Dynamik der wirtschaftlichen Entwicklung und somit zur Entwicklung geeigneter wirtschaftspolitischer Instrumente beitragen. Beispielsweise beschäftigt sich eins der aktuellen Projekte dieser Forschungsgruppe mit den Effekten von (Import-)Wettbewerb auf Produktivität und Innovationsverhalten von Unternehmen sowie auf die Entwicklung in und von Branchen.
Die Forschungsgruppe arbeitet eng mit CompNet zusammen.
ForschungsclusterProduktivität und Institutionen
10.2022 ‐ 09.2024
Enhancing the Micro Foundation of the Research Output of National Productivity Board (NPBs). Using CompNet and expanding its Micro Data Infrastructure (MDI).
The Competitiveness Research Network (CompNet)
Mittelgeber: Europäische Zentralbank (EZB), Europäische Investitionsbank (EIB), Europäische Bank für Wiederaufbau und Entwicklung (EBRD), Tinbergen-Institut, Europäische Kommission.
The Competitiveness Research Network (CompNet) provides a forum for high level research and policy analysis in the areas of competitiveness and productivity. Its main activities include the regular updating of its micro-based competitiveness database for European countries, unprecedented in terms of coverage and cross-country comparability.
Labor Market Power and the Distorting Effects of International Trade
in: International Journal of Industrial Organization, January 2020
This article examines how final product trade with China shapes and interacts with labor market imperfections that create market power in labor markets and prevent an efficient market outcome. I develop a framework for measuring such labor market power distortions in monetary terms and document large degrees of these distortions in Germany's manufacturing sector. Import competition only exerts labor market disciplining effects if firms, rather than employees, possess labor market power. Otherwise, increasing export demand and import competition both fortify existing distortions, which decreases labor market efficiency. This widens the gap between potential and realized output and thus diminishes classical gains from trade.
Criminal Network Formation and Optimal Detection Policy: The Role of Cascade of Detection
in: Journal of Economic Behavior and Organization, September 2017
This paper investigates the effect of cascade of detection, how detection of a criminal triggers detection of his network neighbors, on criminal network formation. We develop a model in which criminals choose both links and actions. We show that the degree of cascade of detection plays an important role in shaping equilibrium criminal networks. Surprisingly, greater cascade of detection could reduce ex ante social welfare. In particular, we prove that full cascade of detection yields a weakly denser criminal network than that under partial cascade of detection. We further characterize the optimal allocation of the detection resource and demonstrate that it should be highly asymmetric among ex ante identical agents.
The Effects of Local Elections on National Military Spending: A Cross-country Study
in: Defence and Peace Economics, Nr. 3, 2017
In this paper, we study the domestic political determinants of military spending. Our conceptual framework suggests that power distribution over local and central governments influences the government provision of national public goods, in our context, military expenditure. Drawing on a large cross-country panel, we demonstrate that having local elections will decrease a country’s military expenditure markedly, controlling for other political and economic variables. According to our preferred estimates, a country’s military expenditure is on average 20% lower if its state government officials are locally elected, which is consistent with our theoretical prediction.
Support for Public Research Spin-offs by the Parent Organizations and the Speed of Commercialization
in: Journal of Technology Transfer, Nr. 6, 2016
We empirically analyze whether support by the parent organization in the early (nascent and seed) stage speeds up the process of commercialization and helps spin-offs from public research organizations generate first revenues sooner. To identify the impact of support by the parent organization, we apply multivariate regression techniques as well as an instrumental variable approach. Our results show that support in the early stage by the parent organization can speed up commercialization. Moreover, we identify two distinct channels—the help in developing a business plan and in acquiring external capital—through which support by the parent organization can enable spin-offs to generate first revenues sooner.
Regional Capital Flows and Economic Regimes: Evidence from China
in: Economics Letters, April 2016
Using provincial data from China, this paper examines the pattern of capital flows in relation to the transition of economic regimes. We show that fast-growing provinces experienced less capital inflows before the large-scale market reform, contrary to the prediction of the neoclassical growth theory. As China transitioned from the central-planning economy to the market economy, the negative correlation between productivity growth and capital inflows became much less pronounced. From a regional perspective, this finding suggests domestic institutional factors play an important role in shaping the pattern of capital flows.
Wirtschaftliche Folgen des Gaspreisanstiegs für die deutsche Industrie
in: Sachverständigenrat Wirtschaft, Nr. 4, 2022
Diese Analyse nutzt amtliche Mikrodaten für die deutsche Industrie. Auf Ebene fein untergliederter Produkte werden der Verbrauch an Erdgas und der heimische Produktumsatz mit Daten der Vereinten Nationen zu Exporten und Importen verknüpft. Es zeigt sich, dass die 300 Produkte mit dem höchsten Gasverbrauch innerhalb der deutschen Industrie für knapp 90% des Gasverbrauchs der Industrie stehen, dass bei Gaspreiserhöhungen um das Vierfache gegenüber den Jahren 2015-2017 die Kosten für das durchschnittliche Produkt um 12 Cent pro Euro Umsatz steigen und dass ein Produktionsstopp der Produkte, die sowohl überdurchschnittlich gasintensiv sind als auch überdurchschnittlich leicht durch Importe substituiert werden können, 26% des Gesamtgasverbrauchs der Industrie einspart, aber weniger als 3% des Umsatzes der Industrie kostet.
Offshoring, Domestic Employment and Production. Evidence from the German International Sourcing Survey
in: IWH Discussion Papers, Nr. 14, 2022
This paper analyses the effect of offshoring (i.e., the relocation of activities previously performed in-house to foreign countries) on various firm outcomes (domestic employment, production, and productivity). It uses data from the International Sourcing Survey (ISS) 2017 for Germany, linked to other firm level data such as business register and ITGS data. First, we find that offshoring is a rare event: In the sample of firms with 50 or more persons employed, only about 3% of manufacturing firms and 1% of business service firms have performed offshoring in the period 2014-2016. Second, difference-in-differences propensity score matching estimates reveal a negative effect of offshoring on domestic employment and production. Most of this negative effect is not because the offshoring firms shrink, but rather because they don’t grow as fast as the non-offshoring firms. We further decompose the underlying employment dynamics by using direct survey evidence on how many jobs the firms destroyed/created due to offshoring. Moreover, we do not find an effect on labour productivity, since the negative effect on domestic employment and production are more or less of the same size. Third, the German data confirm previous findings for Denmark that offshoring is associated with an increase in the share of ‘produced goods imports’, i.e. offshoring firms increase their imports for the same goods they continue to produce domestically. In contrast, it is not the case that offshoring firms increase the share of intermediate goods imports (a commonly used proxy for offshoring), as defined by the BEC Rev. 5 classification.
The Financial Channel of Wage Rigidity
in: Econometrics Laboratory (EML), April 2022
I propose a financial channel of wage rigidity. In recessions, rigid average wages squeeze cash flows, forcing firms to cut hiring due to financial constraints. Indeed, empirical cash flows and profits would turn acyclical if wages were only moderately more procyclical. I study this channel in a search and matching model with financial constraints and wage rigidity among incumbent workers (but flexible new hires’ wages). While neither feature generates amplification individually, their interaction can account for much of the empirical labor market fluctuations—breaking the neutrality of incumbents’ wages for hiring, and showing that financial amplification of business cycles requires wage rigidity.
Intangible Capital and Productivity. Firm-level Evidence from German Manufacturing
in: IWH Discussion Papers, Nr. 1, 2020
We study the importance of intangible capital (R&D, software, patents) for the measurement of productivity using firm-level panel data from German manufacturing. We first document a number of facts on the evolution of intangible investment over time, and its distribution across firms. Aggregate intangible investment increased over time. However, the distribution of intangible investment, even more so than that of physical investment, is heavily right-skewed, with many firms investing nothing or little, and a few firms having very large intensities. Intangible investment is also lumpy. Firms that invest more intensively in intangibles (per capita or as sales share) also tend to be more productive. In a second step, we estimate production functions with and without intangible capital using recent control function approaches to account for the simultaneity of input choice and unobserved productivity shocks. We find a positive output elasticity for research and development (R&D) and, to a lesser extent, software and patent investment. Moreover, the production function estimates show substantial heterogeneity in the output elasticities across industries and firms. While intangible capital has small effects for firms with low intangible intensity, there are strong positive effects for high-intensity firms. Finally, including intangibles in a gross output production function reduces productivity dispersion (measured by the 90-10 decile range) on average by 3%, in some industries as much as nearly 9%.
TV and Entrepreneurship
in: IWH Discussion Papers, Nr. 17, 2017
We empirically analyse whether television (TV) can influence entrepreneurial identity and incidence. To identify causal effects, we utilise a quasi-natural experiment setting. During the division of Germany after WWII into West Germany with a free-market economy and the socialistic East Germany with centrally-planned economy, some East German regions had access to West German public TV that – differently from the East German TV – transmitted images, values, attitudes and view of life compatible with the free-market economy principles and supportive of entrepreneurship. We show that during the 40 years of socialistic regime in East Germany entrepreneurship was highly regulated and virtually impossible and that the prevalent formal and informal institutions broke the traditional ties linking entrepreneurship to the characteristics of individuals so that there were hardly any differences in the levels and development of entrepreneurship between East German regions with and without West German TV signal. Using both, regional and individual level data, we show then that, for the period after the Unification in 1990 which made starting an own business in East Germany, possible again, entrepreneurship incidence is higher among the residents of East German regions that had access to West German public TV, indicating that TV can, while transmitting specific images, values, attitudes and view of life, directly impact on the entrepreneurial mindset of individuals. Moreover, we find that young individuals born after 1980 in East German households that had access to West German TV are also more entrepreneurial. These findings point to second-order effects due to inter-personal and inter-generational transmission, a mechanism that can cause persistent differences in the entrepreneurship incidence across (geographically defined) population groups.