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Diskussionspapiere 2083 / 2024
A plethora of sustainable finance taxonomies are emerging worldwide to support shifting trillions for climate action. Employing a qualitative research approach, we use document analysis to assess 26 sustainable finance taxonomy frameworks worldwide that are in the developing phase or have been published and/or adopted. Based on literature and data we build a transition score (TS) to evaluate the framework’s ...
2024| Catherine Marchewitz, Fernanda Ballesteros, Franziska Schütze, Nesrine Hadj Arab
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Diskussionspapiere 2082 / 2024
The transition of the steel sector to carbon neutrality requires significant investment. In this study, we aim to better understand the scale of investment required for a transition to hydrogen-based steelmaking and the ability of listed steelmakers to finance this investment. First, we analyze how capital expenditures are estimated in the academic literature and compare them with reported investment ...
2024| Alexandra Hüttel, Judith Lehner
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Diskussionspapiere 2081 / 2024
We consider structural vector autoregressions identified through stochastic volatility. Our focus is on whether a particular structural shock is identified by heteroskedasticity without the need to impose any sign or exclusion restrictions. Three contributions emerge from our exercise: (i) a set of conditions under which the matrix containing structural parameters is partially or globally unique; (ii) ...
2024| Helmut Lütkepohl, Fei Shang, Luis Uzeda, Tomasz Woźniak
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Diskussionspapiere 2080 / 2024
Business cycle models often abstract from persistent household heterogeneity, despite its potentially significant implications for macroeconomic fluctuations and policy. We show empirically that the likelihood of being persistently financially constrained decreases with cognitive skills and increases with overconfidence thereon. Guided by this and other micro evidence, we add persistent heterogeneity ...
2024| Oliver Pfäuti, Fabian Seyrich, Jonathan Zinman
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Diskussionspapiere 2079 / 2024
We examine how the gender of business-owners is related to the wages paid to female relative to male employees working in their firms. Using Finnish register data and employing firm fixed effects, we find that the gender pay gap is – starting from a gender pay gap of 11 to 12 percent - two to three percentage-points lower for hourly wages in female-owned firms than in maleowned firms. Results are robust ...
2024| Alexander S. Kritikos, Mika Maliranta, Veera Nippala, Satu Nurmi
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Diskussionspapiere 2078 / 2024
The low degree of stock market participation (SMP) is one of the big puzzles in finance. Numerous determinants have been proposed. We put these determinants into a structure that is derived from a standard static portfolio model. Then we discuss arguments put forward regarding specific SMP determinants and the empirical evidence that has been provided. The focus of our survey is on the identification ...
2024| Lukas Menkhoff, Jannis Westermann
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Diskussionspapiere 2077 / 2024
This paper investigates the elusive role of productivity heterogeneity in new trade models in the trade and environment nexus. We contrast the Eaton-Kortum and the Melitz models with firm heterogeneity to the Armington and Krugman models without heterogeneity. We show that if firms have a constant emission share in terms of sales — as they do in a wide range of trade and environment models — the three ...
2024| Robin Sogalla, Joschka Wanner, Yuta Watabe
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Diskussionspapiere 2076 / 2024
We contribute to the research on gender representation in economics by documenting the share of women among economists in a variety of leadership positions in the academic, but also in the private and public sectors, both globally and by region. For the years 2019 to 2023, we find women economists’ representation overall to be low in all sectors and no clear-cut trends over time. In academia, we find ...
2024| Jana Schuetz, Virginia Sondergeld, Insa Weilage
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Diskussionspapiere 2075 / 2024
Financial repression lowers the return on government debt and contributes, all else equal, towards its liquidation. However, its full effect on the debt-to-GDP ratio hinges on how repression impacts the economy at large because it alters investment and saving decisions. We develop and estimate a New Keynesian model with financial repression. Based on U.S. data for the period 1948–1974, we find, consistent ...
2024| Martin Kliem, Alexander Kriwoluzky, Gernot J. Müller, Alexander Scheer
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Diskussionspapiere 2074 / 2024
This paper re-evaluates the US external deficit which has considerably widened over the 1990s. US safe asset provision to the rest of the world is the dominant explanation for the persistent nature of the US external deficit. We suggest that apart from the safe asset hypothesis, there is an important role for technology shocks originating in US multinational companies that have a strong foreign direct ...
2024| Kaan Celebi, Werner Roeger, Paul J. J. Welfens
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Diskussionspapiere 2073 / 2024
This paper analyzes M&A patterns of R&D projects in the antidiabetics industry. For this purpose, we construct a database with all corporate individual antidiabetics R&D projects over the period 1997 - 2017, and add detailed information on firms’ technology dimension using patent information, next to their position in product markets. This allows us to identify the identity of targets and acquirers ...
2024| Jan Malek, Melissa Newham, Jo Seldeslachts, Reinhilde Veugelers
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Diskussionspapiere 2072 / 2024
We estimate the macroeconomic effects of import tariffs and trade policy uncertainty in the United States, combining theory-consistent and narrative sign restrictions on Bayesian SVARs. We find mostly adverse consequences of protectionism. Tariff shocks are more important than trade policy uncertainty shocks. Tariff shocks depress trade, investment, and output persistently, in aggregate and across ...
2024| Lukas Boer, Malte Rieth
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Diskussionspapiere 2071 / 2024
Our article investigates the impact of vertical integration (without foreclosure) on innovation. We compare cases where either (i) two manufacturers or (ii) a manufacturer and a vertically integrated retailer invest. Then, the independent manufacturer( s) and the retailer bargain over non-linear contracts before selling to consumers. We show that vertical integration always increases the incentives ...
2024| Claire Chambolle, Morgane Guignard
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Diskussionspapiere 2070 / 2024
This paper examines the effect of increasing foreign staffing on the labor market outcomes of native workers in the German long-term care sector. Using administrative social security data covering the universe of long-term care workers and policy-induced exogenous variation, we find that increased foreign staffing reduces labor shortages but has diverging implications for the careers of native workers ...
2024| Peter Haan, Izabela Wnuk
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Diskussionspapiere 2069 / 2024
We investigate policies for increasing recycling to facilitate decarbonization within the basic material sector, including market-based policies, such as carbon pricing, advanced disposal fee and minimum recycled content requirement, and non-market policies, such as product design standard. We develop an analytical model to assess the role of these policy instruments for recycling related choices of ...
2024| Xi Sun, Karsten Neuhoff
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Diskussionspapiere 2068 / 2024
This study provides the first absolute income mobility estimates for postwar Germany. Using various micro data sources, we uncover a steep decline in absolute mobility rates from 81 percent to 59 percent for children’s birth cohorts 1962 through 1988. This trend is robust across different ages, family sizes, measurement methods, copulas, and data sources. Across the parental income distribution, we ...
2024| Timm Bönke, Astrid Harnack-Eber, Holger Lüthen
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Diskussionspapiere 2067 / 2024
Entrepreneurs tend to be risk tolerant but is more risk tolerance always better? In a sample of about 2,100 small businesses, we find an inverted U-shaped relation between risk tolerance and profitability. This relationship holds in a simple bilateral regression and also when we control for a large set of individual and business characteristics. Apparently, one major transmission goes from risk tolerance ...
2024| Melanie Koch, Lukas Menkhoff
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Diskussionspapiere 2066 / 2023
Who makes it to the top? We use the leading, socio-economic survey in Germany supplemented by extensive data on the rich to answer this question. We identify the key predictors for belonging to the top 1 percent of income, wealth, and both distributions jointly. Although we consider many, only a few traits matter: Entrepreneurship and self-employment in conjunction with a sizable inheritance of company ...
2023| Johannes König, Christian Schluter, Carsten Schröder
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Diskussionspapiere 2065 / 2023
This paper examines whether biased income expectations due to overconfidence lead to higher levels of debt-taking. We show suggestive evidence for a link between overconfidence and borrowing behavior in a representative survey of German households (GSOEP-IS). This motivates a laboratory experiment to study causality behind these effects. In two experiments, participants can purchase goods by borrowing ...
2023| Antonia Grohmann, Lukas Menkhoff, Christoph Merkle, Renke Schmacker
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Diskussionspapiere 2064 / 2023
Financing entrepreneurship spurs innovation and economic growth. Digital financial platforms that crowdfund equity for entrepreneurs have emerged globally, yet they remain poorly understood. We model equity crowdfunding in terms of the relationship between the number of investors and the amount of money raised per pitch. We examine heterogeneity in the average amount raised per pitch that is associated ...
2023| Saul Estrin, Susanna Khavul, Alexander S. Kritikos, Jonas Löher