Structural Stability of the Research & Development Sector in European Economies Despite the Economic Crisis
Jutta Günther, Maria Kristalova, Udo Ludwig
Journal of Evolutionary Economics,
Nr. 5,
2019
Abstract
When an external shock such as the economic crisis in 2008/2009 occurs, the interconnectedness of sectors can be affected. This paper investigates whether the R&D sector experienced changes in its sectoral integration through the recession. Based on an input-output analysis, it can be shown that the linkages of the R&D sector with other sectors remain stable. In some countries, the inter-sectoral integration becomes even stronger. Policy makers can be encouraged to use public R&D spending as a means of fiscal policy against an economic crisis.
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Power Generation and Structural Change: Quantifying
Economic Effects of the Coal Phase-out in Germany
Christoph Schult, Katja Heinisch, Oliver Holtemöller
Abstract
In the fight against global warming, the reduction of greenhouse gas emissions is a major objective. In particular, a decrease in electricity generation by coal could contribute to reducing CO2 emissions. We study potential economic consequences of a coal phase-out in Germany, using a multi-region dynamic general equilibrium model. Four regional phase-out scenarios before the end of 2040 are simulated. We find that the worst case phase-out scenario would lead to an increase in the aggregate unemployment rate by about 0.13 [0.09 minimum; 0.18 maximum] percentage points from 2020 to 2040. The effect on regional unemployment rates varies between 0.18 [0.13; 0.22] and 1.07 [1.00; 1.13] percentage points in the lignite regions. A faster coal phase-out can lead to a faster recovery. The coal phase-out leads to migration from German lignite regions to German non-lignite regions and reduces the labour force in the lignite regions by 10,100 [6,300; 12,300] people by 2040. A coal phase-out until 2035 is not worse in terms of welfare, consumption and employment compared to a coal-exit until 2040
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The Privatisation Activities of the Treuhandanstalt and the Transformation of the East German Corporate Landscape: A New Dataset for First Explorations
Alexander Giebler, Michael Wyrwich
IWH Technical Reports,
Nr. 1,
2018
Abstract
Even nearly 30 years after the fall of the Berlin Wall, the privatisation and transformation of East Germany's business landscape is controversially discussed in the media and politics. The privatisation process led to enormous structural changes, which were associated with massive job losses. In particular, the stagnating regional development of East Germany is often blamed on the “long shadow” of the privatisation activities of the Treuhandanstalt (THA). From a scientific perspective, however, there are hardly any contributions dealing with the effects of privatisation activities. The IWH-Treuhand Privatisation Micro Database introduced in this technical report is novel as such that it provides comprehensive information on employment and turnover figures for formerly state-owned enterprises for the early 1990s.
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Multidimensional Well-being and Regional Disparities in Europe
Jörg Döpke, Andreas Knabe, Cornelia Lang, Philip Maschke
Journal of Common Market Studies,
Nr. 5,
2017
Abstract
Using data from the OECD Regional Well-Being Index – a set of quality-of-life indicators measured at the sub-national level – we construct a set of composite well-being indices. We analyze the extent to which the choice of five alternative aggregation methods affects the well-being ranking of regions. We find that regional inequality in these composite measures is lower than regional inequality in real GDP per capita. For most aggregation methods, the rank correlation across regions appears to be quite high. It is also shown that using alternative indices instead of GDP per capita would only have a small effect on the set of regions eligible for aid from EU Structural Funds. The exception appears to be an aggregation based on how individual dimensions relate to average life satisfaction across regions, which would substantially change both the ranking of regions and which regions would be eligible for EU funds.
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The Research Data Centre of the Halle Institute for Economic Research – Member of the Leibniz Association FDZ-IWH
Tim Kuttig, Cornelia Lang
Jahrbücher für Nationalökonomie und Statistik,
Nr. 2,
2017
Abstract
The Halle Institute for Economic Research (IWH) was founded in 1992 and operates three research departments: Macroeconomics, Financial Markets, and Structural Change and Productivity. The IWH’s research structure is designed to foster close interplay between micro and macroeconomic research, however it has its roots in the empirical research conducted on the transition from a planned to a market economy, with a particular focus on East Germany.
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Monetary-fiscal Policy Interaction and Fiscal Inflation: A Tale of Three Countries
Martin Kliem, Alexander Kriwoluzky, Samad Sarferaz
European Economic Review,
2016
Abstract
We study the impact of the interaction between fiscal and monetary policy on the low-frequency relationship between the fiscal stance and inflation using cross-country data from 1965 to 1999. In a first step, we contrast the monetary–fiscal narrative for Germany, the U.S., and Italy with evidence obtained from simple regression models and a time-varying VAR. We find that the low-frequency relationship between the fiscal stance and inflation is low during periods of an independent central bank and responsible fiscal policy and more pronounced in times of non-responsible fiscal policy and accommodative monetary authorities. In a second step, we use an estimated DSGE model to interpret the low-frequency measure structurally and to illustrate the mechanisms through which fiscal actions affect inflation in the long run. The findings from the DSGE model suggest that switches in the monetary–fiscal policy interaction and accompanying variations in the propagation of structural shocks can well account for changes in the low-frequency relationship between the fiscal stance and inflation.
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Multidimensional Well-being and Regional Disparities in Europe
Jörg Döpke, A. Knabe, Cornelia Lang, Philip Maschke
Abstract
Using data from the OECD Regional Well-Being Index – a set of quality-of-life indicators measured at the sub-national level, we construct a set of composite well-being indices. We analyse the extent to which the choice of five alternative aggregation methods affects the well-being ranking of regions. We find that regional inequality in these composite measures is lower than regional inequality in gross-domestic product (GDP) per capita. For most aggregation methods, the rank correlation across regions appears to be quite high. It is also shown that using alternative indicators instead of GDP per capita would only have a small effect on the set of regions eligible for aid from EU Structural Funds. The exception appears to be an aggregation based on how individual dimensions of welfare relate to average life satisfaction across regions, which would substantially change both the ranking of regions and which regions would receive EU funds.
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Monetary-fiscal Policy Interaction and Fiscal Inflation: A Tale of Three Countries
Martin Kliem, Alexander Kriwoluzky, Samad Sarferaz
Abstract
We study the impact of the interaction between fiscal and monetary policy on the low-frequency relationship between the fiscal stance and inflation using cross-country data from 1965 to 1999. In a first step, we contrast the monetary-fiscal narrative for Germany, the U.S. and Italy with evidence obtained from simple regression models and a time-varying VAR. We find that the low-frequency relationship between the fiscal stance and inflation is low during periods of an independent central bank and responsible fiscal policy and more pronounced in times of high fiscal budget deficits and accommodative monetary authorities. In a second step, we use an estimated DSGE model to interpret the low-frequency measure structurally and to illustrate the mechanisms through which fiscal actions affect inflation in the long run. The findings from the DSGE model suggest that switches in the monetary-fiscal policy interaction and accompanying variations in the propagation of structural shocks can well account for changes in the low-frequency relationship between the fiscal stance and inflation.
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The Impact of Local Factors on the Scope of Benefits from Public Investment: The Case of Tourism Infrastructure in Saxon Municipalities
Martin T. W. Rosenfeld, Albrecht Kauffmann
Urban Research & Practice,
Nr. 3,
2014
Abstract
Following the transition from socialist central planning economies to market economies in all of the former socialist countries, many regions have had to cope with severe structural changes and economic development problems. To overcome these problems, local governments have tried to invest in new public infrastructure to support the development of new industries. This paper looks at infrastructure that supports tourist activities and argues that the impact of infrastructure generally depends on certain local factors which differ between municipalities. One important factor is whether the local population possesses the relevant complementary factors, in particular the right ‘soft skills’.
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College Choice Allocation Mechanisms: Structural Estimates and Counterfactuals
J.-R. Carvalho, T. Magnac, Qizhou Xiong
Abstract
We evaluate a simple allocation mechanism of students to majors at college entry that was commonly used in universities in Brazil in the 1990s and 2000s. Students first chose a single major and then took exams that select them in or out of the chosen major. The literature analyzing student placement, points out that this decentralized mechanism is not stable and is not strategy-proof. This means that some pairs of major & students can be made better off and that students tend to disguise their preferences using such a mechanism. We build up a model of performance and school choices in which expectations are carefully specified and we estimate it using cross-section data reporting choices between two medical schools and grade performances at the entry exams. Given those estimates, we evaluate changes in selection and students’ expected utilities when other mechanisms are implemented. Results highlight the importance of strategic motives and redistributive effects of changes of the allocation mechanisms.
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