DIW Weekly Report

About the DIW Weekly Report

The DIW Weekly Report is an online publication from DIW Berlin. Every week selected articles of the Wochenbericht are published online in English.

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DIW Weekly Report 37 / 2021

German Economy Only Slowly Emerging from the Pandemic: DIW Economic Outlook Autumn 2021

The German economy is taking longer than expected to overcome the pandemic: It is likely to increase by only 2.1 percent in 2021 and capacities remain markedly underutilized. In addition, global supply bottlenecks are affecting German industry, resulting in stalled domestic production despite high demand. Following a profitable summer due to low case numbers and progress in the vaccination campaign, ...

2021| Marius Clemens, Simon Junker, Laura Pagenhardt
DIW Weekly Report 37 / 2021

Global Economy Returning to Its Recovery Course after Summer Setbacks: DIW Economic Outlook Autumn 2021

Recently, the coronavirus pandemic has caused economic developments in major economies to drift apart: While infection rates were declining and production was experiencing strong growth in places such as Europe and the United States in the second quarter of 2021, emerging economies were experiencing strict economic restrictions due to high case numbers. In some of these countries, the economy declined. ...

2021| Guido Baldi, Geraldine Dany-Knedlik, Hella Engerer, Frederik Kurcz
DIW Weekly Report 37 / 2021

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2021
DIW Weekly Report 35/36 / 2021

Labor-Intensive Firms Are a Catalyst for Monetary Policy and Its Distributive Effects

The mandate of the European Central Bank’s monetary policy is to ensure price stability. Interest rate changes by the ECB affect labor costs and the value added of firms. If both dimensions are not equally affected, monetary policy has a distributive effect between workers and shareholders. Balance sheet data from over two million companies in the euro area show that the labor costs in labor-intensive ...

2021| Jan Philipp Fritsche
DIW Weekly Report 35/36 / 2021

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2021
DIW Weekly Report 34 / 2021

Childcare Workers Experience Many Stressors and Little Recognition

Childcare workers are essential for both families and society at large, and their working conditions and pay are often a topic of discussion. Using new data spanning until the end of 2019 from the Socio-Economic Panel (SOEP) as well as a special SOEP additional survey in day care centers, this report shows how childcare workers view their occupation, day-to-day work, and pay. According to the data, ...

2021| Ludovica Gambaro, C. Katharina Spieß, Franz G. Westermaier
DIW Weekly Report 34 / 2021

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2021
DIW Weekly Report 33 / 2021

Hospital Mergers Can Impact the Offer of Health Care Services

In the last decades, many European hospital markets witnessed a wave of mergers leading to increased levels of market concentration. The effects of hospital mergers and the effectiveness of competition enforcement have been discussed by politicians but understudied by academics. This report studies how hospital mergers impact hospital service provision by focusing on the French hospital industry from ...

2021| Daniel Herrera-Araujo, Joanna Piechucka
DIW Weekly Report 33 / 2021

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2021
DIW Weekly Report 32 / 2021

Collective Action: New Guiding Principles for International Climate Finance

To limit global warming to 1.5 degrees Celsius, it is necessary for industrialized countries to support developing countries financially. The channels and mechanisms under which this support would be provided are known as International Climate Finance. Building upon expert interviews with a focus on the industrial sector, this report analyses the different areas of International Climate Finance and ...

2021| Heiner von Lüpke, Charlotte Aebischer, Karsten Neuhoff
DIW Weekly Report 32 / 2021

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2021
DIW Weekly Report 31 / 2021

Restrictive US Trade Policy Has a Significantly Negative Effect on Financial Markets

With its America First strategy, the former US administration turned away from an internationally oriented trade policy. It attempted to assert its interests, especially vis-à-vis China, with bilateral and mostly restrictive measures such as import tariffs. This Weekly Report shows that the costs of such a strategy are immense, at least in the medium-term analysis conducted: Almost all US industries ...

2021| Lukas Boer, Lukas Menkhoff, Malte Rieth
DIW Weekly Report 31 / 2021

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2021
DIW Weekly Report 29/30 / 2021

100% Renewable Energy for Germany: Coordinated Expansion Planning Needed

Due to ambitious climate change targets and other energy and industrial policy goals such as the nuclear phase-out, the energy transition in Germany is heading toward a completely renewable energy system. This Weekly Report is the first to describe scenarios for 100 percent renewable energy coverage in Germany and, furthermore, shows it is both possible and realistic. In such a scenario, no more fossil ...

2021| Leonard Göke, Claudia Kemfert, Mario Kendziorski, Christian von Hirschhausen
DIW Weekly Report 29/30 / 2021

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2021
DIW Weekly Report 27/28 / 2021

Real Estate Taxation Reform: Tax Land Values, Abolish Privileges

Real estate is taxed at comparatively low rates in Germany, with primarily the affluent benefiting from numerous existing tax privileges. This Weekly Report describes the current state of real estate taxation in Germany and outlines reform proposals that could increase tax revenue, improve the efficiency of the tax system, and reduce wealth and income inequality. In the case of property tax, value-based ...

2021| Stefan Bach, Sebastian Eichfelder
DIW Weekly Report 27/28 / 2021

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2021
DIW Weekly Report 26 / 2021

Climate Neutrality Requires Coordinated Measures for High Quality Recycling

For Europe to reach climate neutrality by mid-century, it needs to move toward a circular economy. Waste avoidance, reuse, and recycling save primary resources and avoid emissions in the production of basic materials like steel, cement, and plastics. Without exploring circular economy potentials, switching production to climate-neutral processes alone would result in significant costs and tremendous ...

2021| Xi Sun, Frederik Lettow, Karsten Neuhoff
DIW Weekly Report 26 / 2021

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2021
DIW Weekly Report 25 / 2021

The Case of Deutsche Telekom: How Stock Market Crashes Can Persistantly Affect Household Investment Decisions

Since decades, only one fourth of German households invest in shares. One exception was during the three IPOs from 1996 to 2000 of the Deutsche Telekom, which gave Germans a taste to enter the stock market. However, the fall in the share price shortly after the second IPO, followed by corruption scandals of the company, put an end to their enthusiasm. The present study based on SOEP data shows that ...

2021| Chi Hyun Kim, Alexander Kriwoluzky
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