This paper investigates whether central banks can attenuate excessive mispricing in stocks as suggested by the proponents of a "leaning against the wind" (LATW) monetary policy. For this, we decompose stock prices into a fundamental component, a risk premium, and a mispricing component. We argue that mispricing can arise for two reasons: (i) from false subjective expectations of investors about future ...
The demographic change challenges pay-as-you-go funded pension insurance systems around the world. In particular, the aging of the population increases the group of pension recipients while the group of working contributors decreases. Therefore, most OECD countries have reversed their retirement policies since the 1990s and started to encourage longer working lives to alleviate the decline of the...
The achieved international consensus on the 1.5‐2°C target entails that most of current fossil fuel reserves must remain unburned. Currently, a majority of climate policies aiming at this goal are directed towards the demand side. In the absence of a global carbon regime these polices are prone to carbon leakage and other adverse effects. Supply‐side climate policies present an alternative and more ...
Kapitel 2: Obwohl die Entwicklung von Fähigkeiten bereits Gegenstand zahlreicher Forschungsvorhaben war, ist bisher wenig über die Wirkung von Musik auf kognitive und nicht-kognitive Fähigkeiten bekannt. Die vorliegende Studie untersucht auf der Basis von Daten des Sozio-ökonomischen Panels, wie sich die Ausbildung auf einem Musikinstrument in Kindheit und Jugend auf die Entwicklung von Intelligenz, ...
Understanding the formation of trust at the individual level is a key issue given the impact that it has been recognized to have on economic development. Theoretical work highlights the role of the transmission of values such as trust from parents to their children. Attempts to empirically measure the strength of this transmission relied so far on the cross-sectional regression of the trust of children ...
Thanks to a stable job market and solid consumption, the German economy is experiencing a moderate upswing. The GDP is expected to increase by 1.9 percent this year, 1.4 percent in 2017, and 1.6 percent in 2018, according to the Gemeinschaftsdiagnose (GD, joint economic forecast) that was prepared by five of Europe’s leading economic research institutes on behalf of the Federal Government. The ...
The tertiarisation, or perhaps more accurately, the deindustrialisation of the economy has left deep scars on cities. It is evident not only in the industrial wastelands and empty factory buildings, but also in the income and social structures of cities. Industrialisation, collective wage setting, and the welfare state led to a stark reduction in income differences over the course of the 20th century. ...
