Abstract: Does distance matter for the volatility of international real and financial transactions? We show that it does, in addition to its well-established relevance for the level of trade. A simple model of trade with endogenous markups shows that demand shocks have a larger impact on trade between more distant countries. We test this implication in two steps, relying on a broad range of real...
About Our Project The project researches the implementation of Nationally Determined Contributions (NDCs) in Brazil, Germany/EU, India, Indonesia and South Africa, by research-based policy advice and capacity building. The project will especially analyse policy and financial instruments that support the just transition to a climate-friendly pathway and that can contribute to the mobilization of...
Überblick Das Projekt erforscht die Umsetzung nationaler Klimaschutzbeiträge (NDCs) in Brasilien, Deutschland/der EU, Indien, Indonesien und Südafrika durch forschungsbasierte Politikberatung und Kapazitätsaufbau. Das Projekt wird insbesondere politische und finanzielle Instrumente analysieren, die eine Transformation zu einem klimafreundlichen Pfad unterstützen, sowie zur Mobilisierung privater...
Germany’s persistent current account surplus reflects to a large extent low domestic private investment. We argue that two factors—the local fragmentation of Germany’s banking system and the role of local banks in local public finance—can help explain why investment is so low. Local public banks dominate lending to small and medium firms in many regions of Germany. At the...
Workshop organization: Hans-Helmut Kotz (SAFE, Harvard) and Dorothea Schäfer (DIW Berlin) in cooperation with Horst Gischer, head of Forschungszentrums für Sparkassenentwicklung e.V. at the University of Magdeburg. The workshop is part of the research project Banking Sector Diversity: Does it matter for sector stability and SME financing?
The global financial and the subsequent European Sovereign Debt crisis have renewed the interest in fiscal policy as a macroeconomic stabilization device because central banks have lost their conventional measure of stimulating the economy through reductions in the policy interest rate. At the same time, rising debt burdens following the crisis - especially in Europe - have called into question...
The 1st annual Workshop for Women in Macroeconomics, Finance and Economic History is being organized by the DIW Berlin. The aim is to bring together female academic researchers and practitioners to promote and exchange ideas in the field of Macroeconomics, Finance, and Economic History. We invite both empirical and theoretical contributions, including, but not limited to macroeconomic and...
