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Brexit Decision Is Likely to Reduce Growth in the Short Term

The high degree of uncertainty about the United Kingdom’s (UK) economic future following the June 23 Brexit referendum is leading to a flight into safe assets, and will most likely worsen financing conditions for British companies. In addition, companies could reduce investment and postpone hiring decisions. This is likely to start dampening economic growth in the UK in the short term, thus reducing ...

Couple's Labor Supply, Taxes, and the Division of Housework in a Gender-Neutral Lab

We use a lab-in-the-field experiment to investigate intra-couple labor supply decisions and the division of housework under individual and joint income taxation systems. In order to eliminate problems of endogenous intra-couple time use decisions, we exogenously varied not only the taxation system but also the intra-couple roles of primary and secondary earners. Using work effort as a proxy for labor ...

Entrepreneurs and Freelancers: Are They Time and Income Multidimensional Poor? - The German Case

Entrepreneurs and freelancers, the self-employed, commonly are characterized as not only to be relatively rich in income but also as to be rich in time because of their time-sovereignty in principle. Our introducing study scrutinises these results and notions about the well-being situation of self-employed persons not only by asking about traditional single income poverty but also by considering time ...

The Joint Distribution of Net Worth and Pension Wealth in Germany

Research on wealth inequality usually focuses on real and financial assets, while pension wealth – the present value of future pension entitlements from public and company pension schemes – receives little attention. This is astonishing, given that pension plans play an important role for material security and well‐being for an overwhelming part of the population and, thus, should be accounted for ...

Europe Needs to Show What It's Made Of

Equity Premium Prediction: Are Economic and Technical Indicators Unstable?

We show that technical indicators deliver stable economic value in predicting the US equity premium over the out-of-sample period from 1966 to 2014. The results tentatively improve over time, and beat alternatives over a large continuum of sub-periods. In contrast, economic indicators work well only until the 1970s, but lose predictive power thereafter, even when considering the last crisis. Translating ...

Currency Valuation and Risk Premia

Inevitable? Doping Attitudes among Berliners in 2011: The Role of Socialist State Socialisation and Athlete Experience

To design effective and commonly accepted public health policies against performance-enhancing drugs (PED), it is important to understand general population attitudes. This article elicits PED attitudes in the Berlin population and compares response rates of former athletes (N = 496) with those of non-athletes (N = 1686). In addition, exploiting the natural experiment of the division of Germany, by ...

How Important Is Precautionary Labor Supply?

We quantify the importance of precautionary labor supply using data from the German Socio-Economic Panel (SOEP) for 2001-2012. We estimate dynamic labor supply equations augmented with a measure of wage risk. Our results show that married men choose about 2.5% of their hours of work or one week per year on average to shield against unpredictable wage shocks. This implies that about 26% of precautionary ...

The effect of parental education on the offspring's mental health

We are the first to estimate the causal effect of parental education on a wide range of the adult offspring's mental health outcomes. Theoretical considerations predict positive direct and indirect effects of parental education on the offspring's mental health. But the relation between parental education and mental health outcomes is plagued by endogeneity. To circumvent this problem, we exploit...