In macroeconomic models featuring borrowing-constrained agents, the effects of monetary policy depend on the fiscal reaction to interest rate changes. This paper presents new evidence on the dynamic causal effects of U.S. monetary policy shocks on fiscal instruments and estimates a Heterogeneous Agent New Keynesian model with fiscal feedback rules to match the empirical results. I find that U.S. fiscal ...
Despite high inflation, the real gross hourly wages of employees grew by around 15 percent from 1995 to 2022. In particular, the lowest wage decile caught back up to all other deciles following a sharp drop in real wages. At the same time, the low-wage sector has shrunk by nearly five percentage points since 2007, and by even more in the east of Germany (14 percent). In 2022, 18.5 percent of employees ...
Cross-sectional age-skill profiles suggest that cognitive skills start declining by age 30 if not earlier. If accurate, such age-driven skill losses pose a major threat to the human capital of societies with rapidly aging populations. We estimate actual age-skill profiles from individual changes in literacy and numeracy skills at different ages. We use the unique German longitudinal component of the ...
This paper studies the role of viewers’ heterogeneous ad aversion on media content demand and advertisers’ willingness to pay. High-frequency individual-level data on broadcast media content allows us to track viewers’ minute-by-minute choices within the set of available alternatives. We first illustrate the potential selection biases that arise when using aggregated market-level data to estimate...
Background Perceived social cohesion (PSC) is a protective factor for mental health. Yet, evidence on social mechanisms influencing mental health is scarce. Aims We examined the moderating role of PSC between parental stressors and depressive symptoms before and during the COVID-19 pandemic. Methods We performed a multilevel moderated linear regression analysis using German Socio-Economic Panel ...