-
DIW Discussion Papers 295 / 2002
This paper investigates the strategic value of the managerial incentive scheme in affecting firms' incentive in R&D investment and their product market activities. Firstly, we find that in Cournot-quantity competition, owners strategically assign a non-profitmaximization objective to their managers. Consequently, managers in a delegation game invest more in cost-reducing R&D, and have higher output, ...
2002| Zhentang Zhang
-
DIW Discussion Papers 294 / 2002
Empirical work on price-cost margins often treats costs as exogenous. Allowing for endogenous costs when estimating price-cost margins is the topic of this paper. Methodologically, the endogenous cost model we propose leads to an additional equation that allows for the simultaneity in price setting in the product and the input market (labor in our case). In other words, the usual two-equation set-up ...
2002| Damien J. Neven, Lars-Hendrik Röller, Zhentang Zhang
-
DIW Discussion Papers 293 / 2002
Why do people work unpaid overtime? We show that remarkable long-term labor earnings gains are associated with unpaid overtime in West Germany. A descriptive analysis suggests that over a 10-year period workers with unpaid overtime experience on average at least a 10 percentage points higher increase in real labor earnings than their co-workers. Applying panel data models this result generally holds. ...
2002| Markus Pannenberg
-
DIW Discussion Papers 292 / 2002
Using data from the German Socio-Economic Panel (GSOEP), this paper analyzes the dynamics of equivalent income in Germany in the eighties and nineties. Special emphasis is given to the separation of permanent and transitory components, the persistence of transitory shocks and their implications for the persistence of poverty and income inequality. The results suggest that 52 to 69 percent of income ...
2002| Martin Biewen
-
DIW Discussion Papers 291 / 2002
In this paper R2-type measures of the explanatory power of multivariate linear and categorical probit models proposed in the literature are reviewed and their deficiencies are discussed. It is argued that a measure of the explanatory power should take into account the components which are explicitely modeled when a regression model is estimated while it should be indifferent to components not explicitely ...
2002| Martin Spieß, Gerhard Tutz
-
DIW Discussion Papers 290 / 2002
In this paper, we take a multilevel perspective to investigate the role of child care in the transition to motherhood in Germany. We argue that in the European institutional context the availability of public day care and informal child care arrangements should be a central element of the local opportunity structure regarding the compatibility of childrearing and women's employment. Using data from ...
2002| Karsten Hank, Michaela Kreyenfeld
-
DIW Discussion Papers 289 / 2002
In 1986 German federal parental leave and benefit policy was expanded in several ways, extending the potential duration of leave from six to ten months and paying child-rearing benefits to all new mothers regardless of their employment status before childbirth. The potential duration has increased four times since 1986 and stood at 18 months in 1991 and three years starting in 1992. This study uses ...
2002| Jan Ondrich, Katharina C. Spieß, Qing Yang
-
DIW Discussion Papers 288 / 2002
We examine the determinants of low income transitions using first-order Markov models that control for initial conditions effects (those found to be poor in the base year may be a nonrandom sample) and for attrition (panel retention may also be non-random). Our econometric model is a form of endogeneous switching regression, and is fitted using simulated maximum likelihood methods. The estimates, derived ...
2002| Lorenzo Cappellari, Stephen P. Jenkins
-
DIW Discussion Papers 287 / 2002
This paper analyses the consequences of the planned enlargement on the EU budget for the years 2007 and 2013. It concentrates on the EU's Common Agricultural Policy and Structural Policy and calculates the possible fiscal consequences of enlarging the EU for various policy scenarios. Enlarging the EU could be financed without overstepping the current upper limit for the EU budget, but it increases ...
2002| Christian Weise
-
DIW Discussion Papers 286 / 2002
The growth of the German economy intrinsically depends on the development of German exports to the euro area, which is by far the biggest market for German products. The paper estimates a structural equation for the export demand from the EMU member countries, which is suitable for both simulations and short-term forecasts. However, the equation systematically underestimates the export demand for data ...
2002| Sabine Stephan
-
DIW Discussion Papers 285 / 2002
We link life-satisfaction data to inequality of the pre-government income distribution at the regional level, to estimate the degree of inequality aversion. In addition, we investigate whether a reduction in inequality by the state increases individual well-being. We find that Germans are inequality averse over the entire income distribution. However, inequality reduction by the state does not increase ...
2002| Johannes Schwarze, Marco Härpfer
-
DIW Discussion Papers 284 / 2002
This study deals with youth unemployment trends in Europe since the mid of the 80ths in general and regards individual risk factors for Germany and the United Kingdom in particular in the mid of the 90ths. The study for the two selected countries shows that the individual risk of (long-term) unemployment is not equally high for all young people, but rather depends on various socio-economic and structural ...
2002| Bettina Isengard
-
DIW Discussion Papers 283 / 2002
Housing is a critical component of household well being and the extent to which minority households have achieved parity with Germans is a measure of the extent to which this population is integrated into the larger German society. Specifically we examine whether the housing conditions for immigrants2 has improved between 1985 and 1998 despite the greater barriers to upward mobility for low skill workers ...
2002| Anita I. Drever, William A. V. Clark
-
DIW Discussion Papers 282 / 2002
Institutional change is guided by rules. In the European Union these rules are given by Art. 250- 252 of the Treaty of Amsterdam. These articles define the actors and rules that bring about changes in policies in the European Union. We analyze these articles as games in extensive form and characterize and compare the equilibria of these games. This analysis identifies the decisive actors the conditions ...
2002| Martin Kolmar
-
DIW Discussion Papers 281 / 2002
The paper uses panel data on OECD countries to assess four theories about the forces that generate social spending. The four theories are: Aid: the Welfare State is about helping the poor. Insure: the Welfare State insures the consumption of middle-class voters. Transfer: the Welfare State transfers money to politically-powerful entitled groups. Control: the Welfare State is about controlling the behavior ...
2002| Edward Castronova
-
DIW Discussion Papers 280 / 2002
This paper examines the changes in the inter-industry wage structure experienced by Russia since 1993, as part of its transition from a plan-based economy to a more \market oriented" structure. Using two Russian household panel data sets, the RLMS and the RUSSET, we _nd that since the transformation process began, the dispersion of inter-industry wage structure has increased. Moreover, Russia exhibits ...
2002| Ingo Geishecker, John P. Haisken-DeNew
-
DIW Discussion Papers 279 / 2002
This paper uses Markov switching models to study short-run movements of the Polish zloty and speculative phenomena in Poland, that is, to investigate whether the exchange rate is "contaminated" by a speculative bubble. The zloty movements are examined in terms of so-called long swings - periods of prevailing appreciation and depreciation of the exchange rate. Speculative fluctuations of the zloty are ...
2002| Tatiana Fic
-
DIW Discussion Papers 278 / 2002
On behavioural theory basis, this article analyses whether religion influences married women in Germany in their decision to supply labour. Gender roles and accompanying attitudes toward the appropriate division of labour among spouses might differ across religious groups depending on the groups´ strictness. Using data from the German Socio-Economic Panel (GSOEP) and applying both cross-sectional and ...
2002| Guido Heineck
-
DIW Discussion Papers 277 / 2002
In this paper, we investigate the intergenerational transmission of smoking behavior from parents to their children using data from the German Socio- Economic Panel, surveyed in 1999 including 813 youths aged 16 through 19. We find strong evidence, that parental smoking significantly increases the probability that their children likewise become smokers. Youths living in families with both parents smoking ...
2002| Christian Bantle, John P. Haisken-DeNew
-
DIW Discussion Papers 276 / 2002
The availability of panel data on the basis of micro data has become an indispensable component of the infrastructure of empirically oriented social scientists and economists. This is also a consequence of the fact that, for a panel survey, the quality of both content and methodological analyses increases with each new wave. Especially the number of events which can be analyzed increases (e.g., social ...
2002| Jürgen Schupp, Gert G. Wagner