We study the wage and employment effects of a German place-based policy using a research design that exploits conditionally exogenous EU-wide rules governing the program parameters at the regional level. The place-based program subsidizes investments to create jobs with a subsidy rate that varies across labor market regions. The analysis uses matched data on the universe of establishments and...
This study explores the relationship between artificial intelligence (AI) and workers’ wellbeing and mental health using longitudinal survey data from Germany (2000-2020). We construct a measure of individual exposure to AI technology based on the occupation in which workers in our sample were first employed and explore an event study design and a difference-in-differences approach to compare AI...
A course by the Kiel Institute for the World Economy (IfW Kiel) In cooperation with DIW Berlin Researchers are often interested in calculating how variables respond over time to a given stimulus, such as a policy intervention. This is often referred to as an impulse response. The method of local projections offers a convenient approach to investigate such impulse response dynamics.
Noting that the shocks in vector autoregressive models can be correlated if a number of shocks is identified individually by multiple proxy variables, we propose a Generalized Method of Moments (GMM) approach for estimation that enforces uncorrelated shocks. We point out that if each proxy identifies exactly one shock and is uncorrelated with all other shocks, uncorrelatedness of the shocks provides ...
Public procurement accounts for a large share of Gross Domestic Product in many countries. Given its impact, governments and other public authorities can leverage their purchasing decisions to pursue welfare goals; among these, environmental protection and climate change mitigation have particular priority. By using procurement practices that account for the environmental quality of bids – so-called ...
Introducing electricity purchase conditions in renewable fuel regulations and carbon accounting is a controversial issue in the US and Europe. We argue that their impact must be assessed considering demand flexibility, local grid conditions, and overlapping policy instruments such as emissions trading schemes and renewable portfolio standards. The introduction of more stringent requirements has a significant ...
The energy crisis following Russia’s invasion of Ukraine exposed the heightened vulnerability of low-income households to rising heating costs, particularly those in energy inefficient buildings. Using data from the German Socio-Economic Panel (SOEP), this study examines the distributional impact of heating costs across income deciles and evaluates the effectiveness of policy interventions. We find ...
