Diskussionspapiere 1990 / 2022
Negative interest rates remain a controversial policy for central banks. We study a novel signalling channel and ask under what conditions negative rates should exist in an optimal policymaker’s toolkit. We prove two necessary conditions for the optimality of negative rates: a time-consistent policy setting and a preference for policy smoothing. These conditions allow negative rates to signal policy ...
2022| Oliver de Groot, Alexander Haas
Diskussionspapiere 1989 / 2021
With the expansion of onshore wind power, countries increasingly consider the introduction of minimum distance regulations between wind turbines to nearby residential areas, to increase public acceptance. In 2014, the German federal state of Bavaria introduced a minimum distance regulation that requires new wind turbines to be ten times their total height away from settlements (10-H regulation). This ...
2021| Jan Stede, Marc Blauert, Nils May
Diskussionspapiere 1988 / 2021
We study the impact of broadband availability on firms’ total factor productivity (TFP) using German firm-level data between 2010 and 2015. We adopt a control function approach to causally identify and separately estimate productivity for 46 two-digit manufacturing and service sectors. Over the sample period, broadband availability, measured by 16 Mbps transmission rates, more than doubled in German ...
2021| Tomaso Duso, Mattia Nardotto, Alexander Schiersch
Diskussionspapiere 1987 / 2021
Since 2010, Google, Apple, Facebook, Amazon, and Microsoft (GAFAM) have acquired more than 400 companies. Competition authorities did not scrutinize most of these transactions and blocked none. This raised concerns that GAFAM acquisitions target potential competitors yet fly under the radar of current merger control due to the features of the digital economy. We empirically study the competitive effects ...
2021| Pauline Affeldt, Reinhold Kesler
Diskussionspapiere 1986 / 2021
The system of capital taxation consists of two instruments, namely a tax on profits and a depreciation allowance on investment. We will show in this paper that by acting on both instruments simultaneously it is possible to achieve both a growth and a fiscal net revenue target even in cases when a trade off prevails when each instrument is used individually. This is an application of the Tinbergen rule ...
2021| Marius Clemens, Werner Röger
Diskussionspapiere 1985 / 2021
This study analyzes the causal effect of an increase in the retirement age on health. We exploit a sizable cohort-specific pension reform for women using two complementary empirical approaches - a Regression Discontinuity Design and a Difference-in- Differences approach. The analysis is based on official records covering all individuals insured by the public health system in Germany and including all ...
2021| Mara Barschkett, Johannes Geyer, Peter Haan, Anna Hammerschmid
Diskussionspapiere 1984 / 2021
We examine whether the financial strength of companies, in particular, small and medium-sized enterprises (SMEs) is causally linked to the award of a public procurement contract (PP), especially in the environmentally friendly “green” area (GPP). For this purpose, we build a combined procurement company data set from the Tenders Electronic Daily (TED) and the SME database AMADEUS, which includes ten ...
2021| Christopher F. Baum, Arash Kordestani, Dorothea Schäfer, Andreas Stephan
Diskussionspapiere 1983 / 2021
We consider a Green Public Procurement setting where the procurer provides a bid discount to environment-friendly technologies to foster their use. We assume that, before the auction, firms may switch to green technology via a publicly observable costly investment. We show that investment acts as a signaling device. This mitigates the effect of incomplete information on firms’ costs, thereby triggering ...
2021| Olga Chiappinelli, Gyula Seres
Diskussionspapiere 1982 / 2021
It is striking that economists in particular firmly believe in the benefits of rule-binding, even though this belief runs counter to the standard assumption of economic theory that we humans are self-interested and therefore extremely resourceful when it comes to circumventing inconvenient government regulations, e.g. taxes. In Public Choice Theory, politicians are even assumed to have nothing but ...
2021| Gert G. Wagner
Diskussionspapiere 1981 / 2021
This paper investigates the impact of natural disasters on price stability in the euro area. We estimate panel and country-specific structural vector autoregression (VAR) models by combining estimated damages of disaster events with monthly data for the Harmonised Index of Consumer Prices (HICP) for all euro area countries over the period 1996-2021. Besides estimating the effect on overall headline ...
2021| John Beirne, Yannis Dafermos, Alexander Kriwoluzky, Nuobu Renzhi, Ulrich Volz, Jana Wittich
Diskussionspapiere 1980 / 2021
Using machine learning methods in a quasi-experimental setting, I study the heterogeneous effects of introducing waste prices - unit prices on household unsorted waste disposal - on waste demands and social welfare. First, using a unique panel of Italian municipalities with large variation in prices and observables, I show that waste demands are nonlinear. - find evidence of constant elasticities at ...
2021| Marica Valente
Diskussionspapiere 1979 / 2021
Worldwide, the overwhelming majority of large horizontal mergers are cleared by antitrust authorities unconditionally. The presumption seems to be that efficiencies from these mergers are sizeable. We calculate the compensating efficiencies that would prevent a merger from harming consumers for 1,014 mergers affecting 12,325 antitrust markets scrutinized by the European Commission between 1990 and ...
2021| Pauline Affeldt, Tomaso Duso, Klaus Gugler, Joanna Piechucka
Diskussionspapiere 1978 / 2021
Early retirement options are usually targeted at employees at risk of not reaching their regular retirement age in employment. An important at-risk group comprises employees who have worked in demanding jobs for many years. This group may be particularly negatively affected by the abolition of early retirement options. To measure differences in labor market reactions of employees in low- and high-demand ...
2021| Johannes Geyer, Svenja Lorenz, Thomas Zwick, Mona Bruns
Diskussionspapiere 1977 / 2021
Wir untersuchen anhand von repräsentativen Daten für die Privatwirtschaft (Verdienststrukturerhebung 2018) Anteile und Höhe von umgewandelten Entgelten nach verschiedenen individuellen und betrieblichen Merkmalen von Arbeitnehmerinnen und Arbeitnehmern in Deutschland für das Jahr 2018. Deskriptive wie multivariate Regressionsanalysen weisen sowohl auf eine selektive Teilnahmebereitschaft zur Umwandlung ...
2021| Johannes Geyer, Ralf K. Himmelreicher
Diskussionspapiere 1976 / 2021
The energy transition requires substantial amounts of metals such as copper, nickel, cobalt and lithium. Are these metals a key bottleneck? We identify metal-specific demand shocks, estimate supply elasticities and pin down the price impact of the energy transition in a structural scenario analysis. Metal prices would reach historical peaks for an unprecedented, sustained period in a net-zero emissions ...
2021| Lukas Boer, Andrea Pescatori, Martin Stuermer
Diskussionspapiere 1975 / 2021
Grandparents act as the third largest caregiver after parental care and daycare in Germany, as in many Western societies. Adopting a double-generation perspective, we investigate the causal impact of this care mode on children's health, socio-emotional behavior, and school outcomes, as well as parental well-being. Based on representative German panel data sets, and exploiting arguably exogenous variations ...
2021| Mara Barschkett, C. Katharina Spieß, Elena Ziege
Diskussionspapiere 1974 / 2021
From standard portfolio-choice theory it is well-understood that background risk, overwhelmingly due to wage risk, is one of the central determinants of individuals’ portfolio composition: higher background risk reduces risky investments. However, if background risk is negatively correlated with financial market risk, higher background risk implies more risky investment. We quantify the influence of ...
2021| Johannes König, Maximilian Longmuir
Diskussionspapiere 1973 / 2021
Habit formation theory and the transformative voting hypothesis both imply that voting has downstream consequences for turnout and political involvement. Although several studies have applied causal research designs to study this question, the long-run evidence is extremely limited, especially for potentially transformative effects. We jointly examine the short- and long-term impact of earlier voting ...
2021| Jonas Jessen, Daniel Kuehnle, Markus Wagner
Diskussionspapiere 1972 / 2021
Welfare is traditionally understood through social security decommodifying labor markets or social investment policies. In the domain of housing, however, welfare for homeowners is largely hidden in the tax codes’ fiscal exemptions. Based on a content analysis of legislation, this paper introduces a novel yearly database of 37 countries between 1910 and 2020 to uncover the “hidden welfare state” of ...
2021| Konstantin A. Kholodilin, Sebastian Kohl, Artem Korzhenevych, Linus Pfeiffer
Diskussionspapiere 1971 / 2021
During the COVID-19 pandemic, the introduction of mandatory face mask usage triggered a heated debate. A major point of debate is whether community use of masks creates a false sense of security that would diminish physical distancing, counteracting any potential direct benefit from masking. We conducted a randomized field experiment in Berlin, Germany, to investigate how masks affect distancing and ...
2021| Gyula Seres, Anna Balleyer, Nicola Cerutti, Jana Friedrichsen, Müge Süer