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DIW Discussion Papers 435 / 2004
This paper illustrates the representation of induced technological change in the multi- regional, multi-sectoral integrated assessment model WIAGEM. The main aim of this paper is to investigate quantitatively economic impacts of climate policy measures due to induced technological changes that are considered. Improved technological innovations are triggered by increased R&D expenditures that advance ...
2004| Claudia Kemfert
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DIW Discussion Papers 434 / 2004
Previous cross-sectional and intervention studies have suggested that pet owners may enjoy better physical and mental health than non-owners. This paper presents longitudinal evidence from a major national representative longitudinal survey: the German Socio-Economic Panel (SOEP). Because the data are longitudinal, it is possible to assess the impact on health outcomes (measured by number of doctor ...
2004| Bruce Headey, Markus M. Grabka
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DIW Discussion Papers 433 / 2004
This paper investigates the effect of economic integration on the ability of firms to maintain a collusive understanding about staying out of each other's markets. The paper distinguishes among different types of trade costs: ad valorem, unit, fixed. It is shown that for a sufficient reduction of ad valorem trade costs, a cartel supported by collusion on either quantities or prices will be weakened, ...
2004| Ulrich Fritsche, Vladimir Kuzin
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DIW Discussion Papers 432 / 2004
This paper investigates the effect of economic integration on the ability of firms to maintain a collusive understanding about staying out of each other's markets. The paper distinguishes among different types of trade costs: ad valorem, unit, fixed. It is shown that for a sufficient reduction of ad valorem trade costs, a cartel supported by collusion on either quantities or prices will be weakened, ...
2004| Philipp J. H. Schröder
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DIW Discussion Papers 423 / 2004
We present a model of takeover where the target optimally sets its reserve price. Under relatively standard symmetry restrictions, we obtain a unique equilibrium. The probability of takeover is only a function of the number of .rms and of the insiders. share of total industry gains due to the increase in concentration. Our main application is to the linear Cournot and Bertrand models. A takeover is ...
2004| Roman Inderst, Christian Wey
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DIW Discussion Papers 431 / 2004
This note explores the relationship between the price elasticity of demand and the R&D intensity of the product. We introduce the concept of R&D intensity into a standard Dixit-Stiglitz/Krugman-type setting. R&D activity is treated as a fixed cost of production. Within this framework, sectors with a higher R&D intensity show a lower price elasticity of demand. This proposition is confirmed by an empirical ...
2004| Mechthild Schrooten, Sabine Stephan
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DIW Discussion Papers 430 / 2004
This note explores the relationship between the price elasticity of demand and the R&D intensity of the product. We introduce the concept of R&D intensity into a standard Dixit-Stiglitz/Krugman-type setting. R&D activity is treated as a fixed cost of production. Within this framework, sectors with a higher R&D intensity show a lower price elasticity of demand. This proposition is confirmed by an empirical ...
2004| Dorothea Lucke, Philipp J. H. Schröder, Dieter Schumacher
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DIW Discussion Papers 429 / 2004
Using a sample of prime-aged men from the German Socio-Economic Panel (GSOEP), this paper examines the effects of past poverty experience on future poverty status, future employment status and household composition. The empirical results suggest that even after controlling for observed and unobserved characteristics, past poverty experience increases the poverty risk of future periods. Moreover, there ...
2004| Martin Biewen
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DIW Discussion Papers 428 / 2004
The paper presents a multivariate approach on transitions into work for five non working groups including the unemployed, the Attached, people in education, people doing housework and others. The study is based on ECHP data from 1994 to 1998. It is expected that individuals in the Attached group have significantly higher transition probabilities into work than others outside the labour force although ...
2004| Elke Holst, C. Katharina Spieß
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DIW Discussion Papers 427 / 2004
We analyse the effectiveness of fiscal policy rules for business cycle stabilisation in a monetary union using a quarterly macro-econometric model of Germany. The simulations compare a deficit target and an expenditure target under a range of supply, demand and fiscal shocks. Their effects are evaluated by their impact on prices and output. The analysis demonstrates that in general the deficit target ...
2004| Tilman Brück, Rudolf Zwiener
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DIW Discussion Papers 426 / 2004
This paper analyses the impact of foreign direct investment (FDI) on the development of local firms. We focus on two likely effects of FDI: a competition effect which deters entry of domestic firms and positive market externalities which foster the development of local industry. Using a simple theoretical model to illustrate how these forces work we show that the number of domestic firms follows a ...
2004| Salvador Barrios, Holger Görg, Eric Strobl
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DIW Discussion Papers 425 / 2004
In the context of economic instruments for more energy efficiency and climate protection, tradable certificates have been investigated for renewable energy and for a number of emissions. In contrast, tradable energy efficiency - or "white" - certificates have only lately been considered as a market-based tool to foster energy efficiency as compared to standards and labelling, for example. Theoretically, ...
2004| Ole Langniss, Barbara Praetorius
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DIW Discussion Papers 424 / 2004
Can a growing welfare state induce a regime switch in the growth rate of an econ-omy? This paper constructs a dynamic political economy model of economic growth and the welfare state in which both variables are non-linearly related and jointly en-dogenous. Using a Markov switching framework over the period 1950-2001, we find that the structural decline in growth rates that several welfare state economies ...
2004| Tatiana Fic, Chetan Ghate
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DIW Discussion Papers 422 / 2004
I examine the determinants of inter-state migration of adults within western Germany, using the German Socio-Economic Panel from 1984 - 2000. I highlight the prevalence and distinctive characteristics of migrants who do not change employers. Same-employer migrants represent 25 % of all migrants, and have higher education and pre-move wages than non-migrants. Conditional on age, same-employer migrants ...
2004| Jennifer Hunt
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DIW Discussion Papers 421 / 2004
We analyze potential labor supply effects of a shift from the current German system of taxation of married couples to a system of limited real income splitting on the basis of econometric household labor supply model embedded in a tax-benefit model. Our simulation results show relatively small labor supply effects of a shift from the current system to one limited real income splitting system. In the ...
2004| Viktor Steiner, Katharina Wrohlich
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DIW Discussion Papers 420 / 2004
Using data from the German Socio-Economic Panel Study 2002, we show that satisfaction with the German public pension system is significantly lower in the younger generation. This effect is independent from the individual economic situation and cannot be observed in earlier years. Whereas long periods of full time employment increase satisfaction with old-age security, unemployment has a significant ...
2004| Christoph Wunder, Johannes Schwarze
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DIW Discussion Papers 419 / 2004
In the year 2000, the German government passed the most ambitious tax reform in postwar German history aiming at a significant tax relief for households. Drawing on data of the GSOEP, we analyze the distributional and fiscal effects of the tax reform. Our analysis employs microsimulation techniques. Furthermore, we estimate behavioral effects of the tax reform using a discrete choice labor supply model. ...
2004| Peter Haan, Viktor Steiner
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DIW Discussion Papers 418 / 2004
This paper provides a productivity analysis of German electricity distribution companies. It addresses both traditional issues in electricity sector benchmarking, such as the role of scale effects and optimal utility size, as well as new evidence specific to the situation in Germany. Regarding the latter, we consider the potential effects of the three structural variables defined in the association ...
2004| Christian von Hirschhausen, Andreas Kappeler
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DIW Discussion Papers 417 / 2004
The paper analyses the effect of class size, which stands proxy for school quality, on early career earnings. Using confidential district level information from the German Socio-Economic Panel (GSOEP), it is demonstrated that class size has no discernible effect on early career earnings. This finding is robust to changes in specification and the choice of sub-samples. The economic literature focused ...
2004| Hans J. Baumgartner
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DIW Discussion Papers 416 / 2004
The goal of this work is to introduce one of the most successful among recently developed statistical techniques - the support vector machine (SVM) - to the field of corporate bankruptcy analysis. The main emphasis is done on implementing SVMs for analysing predictors in the form of financial ratios. A method is proposed of adapting SVMs to default probability estimation. A survey of practically and ...
2004| Wolfgang K. Härdle, Rouslan A. Moro, Dorothea Schäfer