How does basic income (a regular, unconditional, guaranteed cash transfer) impact labor supply? We show that in search models of the labor market with income effects, this impact is theoretically ambiguous: Employment and job durations might increase or decrease, match surplus might be shifted to workers or employers, and worker surplus might be reallocated between wages and job amenities. We thus ...
[English subtitles, German language video] Climate neutrality is possible and necessary—scientists, politicians, and society agree on this. But implementation is stalling. Why? Karsten Neuhoff, Head of the Climate Policy Department at DIW Berlin, explains in the video: There is a lack of the right policy instruments to make climate-friendly investments attractive. The team analyzes international...
This paper provides empirical evidence on which M&A deals spur innovation, and which stifle it. To do so, we consider not only the product market position of the acquiring firm, but also the position of both target and acquirer in the technology space. Focusing on the antidiabetic drugs market, our dataset tracks the lifecycle and patenting of all individual antidiabetic projects in development between ...
This workshop brings together leading scholars to present cutting-edge research at the intersection of climate change, behavioral economics, and expectation formation. The sessions span a wide array of topics, including climate-related decision-making in households and firms, sustainable consumption, labor productivity under climate stressors, and public support for environmental policies. With a...
Carbon pricing policies are usually combined with compensation for exposed firms to prevent adverse competitiveness effects. In cap-and-trade systems, this carbon cost compensation mostly occurs through free allocation of emission permits. Using an administrative panel of German manufacturing firms, this paper investigates how free allocation in the European Union Emissions Trading System affects firms’ ...
