China's government has been promoting the shift toward a consumption-based economy in the past few years to arrive at a path of sustainable and socially inclusive growth. In this context, the explicit goal to significantly raise the percentage ofwages in the national household income was an integral part of the 12th Five-Year Plan (2011–15). These changes in economic strategy are likely to affect the ...
The paper estimates the dynamic impact of structural oil market shocks on the balance sheet of US firms, using industry level data covering manufacturing, trade and mining sectors. For manufacturing firms, findings indicate that an unexpected disruption in oil supply that raises oil prices by 1% lowers firm profits by 1.3% on impact. On the other hand, profits rise by 0.39% in response to the same ...
Cost of renewable energies have dropped, approaching wholesale power price levels. As a result, the role of renewable energy policy design is shifting – from covering incremental costs towards facilitating risk-hedging. An analytical model of the financing structure of renewable investment projects is developed to assess this effect und used to compare different policy design choices: contracts for ...
This project raises the question of how rental housing market and land-use regulations affect the build-up of the speculative house price bubbles that often lead to financial system instability and deep recessions. The study focuses on the OECD countries. Specifically, the project examines the impact of the rent control, protection of tenants from eviction, housing rationing, and land-use...
The overarching objective of the project is to describe and analyse the evolution of expectations about key macroeconomic variables in Germany between 1932 and 1934 and use these insights to evaluate their significance for the German recovery from the Great Depression in a structural macroeconomic model. We aim to assemble qualitative and quantitative evidence about the evolution of expectations...
The past 10 years since the 2008 Lehman bankruptcy have clearly shown that global economic and financial crises present major challenges not only to banks and businesses but also to private households, requiring them a high level of shock absorption capacity. Resilience of households also depends on the stability of their investment portfolios. Diversification is an important requirement for...
Countries with de jure floating exchange rate regimes are often reluctant to allow their currencies to float freely in practice. One reason why countries may wish to limit exchange rate volatility is potential negative balance sheet effects due to currency mismatches on the balance sheets of firms and households. In this paper, we show in a sample of 15 emerging market economies that countries with ...
Despite increasing female labor market participation over the past decades care duties are hardly been shared more equally within couples. We challenge existing approaches (time availability theory, relative resources approach) on the formation of care arrangements with the human capital theory focusing on the consequences of an unequal distribution of housework. We argue that couples make...
