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  • Press Release

    Joint Economic Forecast Autumn 2017: Upturn Remains Robust - Amid Mounting Tensions

    Press release of the project group "Gemeinschaftsdiagnose": German Institute for Economic Research (DIW Berlin), Halle Institute for Economic Research (IWH), ifo Institute, Kiel Institute for the World Economy (IfW), RWI - Leibniz Institute for Economic Research The German economic upturn has gained both in terms of strength and breadth. In addition to consumer spending, external trade and investments ...

    28.09.2017
  • DIW Roundup 113 / 2017

    Does More Education Protect against Mental Health Problems?

    Mental health conditions are a leading cause of disability-adjusted life years (DALYs) and health costs worldwide: They account for 199 million DALYs or 37 percent of healthy life years lost from non-communicable diseases. The sum of direct and indirect costs worldwide were estimated to amount to 2.5 trillion US dollars in 2010 and projected to increase to 6 trillion US dollars in 2030 (Bloom et al., ...

    2017| Daniel Graeber
  • Economic Bulletin

    Renewable Energy Policy : Risk Hedging Is Taking Center Stage

    The costs of renewable energy technologies have fallen sharply. Now the financing costs of new installations are playing an increasing role in the overall cost of Germany’s energy transition. This has put the primary focus of support instruments for renewable energy on creating more affordable financing conditions for investments. This report compares the effects of various policy instruments ...

    27.09.2017| Ingmar Jürgens, Nils May, Karsten Neuhoff
  • Refereed essays Web of Science

    Reduced Cross-Border Lending and Financing Costs of SMEs

    This paper investigates how the withdrawal of banks from their cross-border business impacted the borrowing costs of European firms since the crisis. We combine aggregate information on total and cross-border credit with firm-level survey data for the period 2010 - 2014. We find that the decline in cross-border lending led to a deterioration in the borrowingconditions of small firms. In countries with ...

    In: Journal of International Money and Finance 80 (2018), S. 35-58 | Franziska Bremus, Katja Neugebauer
  • DIW Economic Bulletin 39/40 / 2017

    Renewable Energy Policy: Risk Hedging Is Taking Center Stage

    The costs of renewable energy technologies have fallen sharply. Now the financing costs of new installations are playing an increasing role in the overall cost of Germany’s energy transition. This has put the primary focus of support instruments for renewable energy on creating more affordable financing conditions for investments. This report compares the effects of various policy instruments on risk ...

    2017| Nils May, Ingmar Jürgens, Karsten Neuhoff
  • Refereed essays Web of Science

    Designing a Model for the Global Energy System - GENeSYS-MOD: An Application of the Open-Source Energy Modeling System (OSeMOSYS)

    This paper develops a path for the global energy system up to 2050, presenting a new application of the open-source energy modeling system (OSeMOSYS) to the community. It allows quite disaggregate energy and emission analysis: Global Energy System Model (GENeSYS-MOD) uses a system of linear equations of the energy system to search for lowest-cost solutions for a secure energy supply, given externally ...

    In: Energies 10 (2017), 10, S. 1-28 | Konstantin Löffler, Karlo Hainsch, Thorsten Burandt, Pao-Yu Oei, Claudia Kemfert, Christian von Hirschhausen
  • Comment

    Op-ed of Franco-German Economist Group on EMU reforms

    The euro area has recently seen some good news. A broad-based economic recovery is under way. Significant institutional reforms have been achieved, particularly in the area of banking union. Significant economic reforms are under way in several countries, including in France. As French and German economists committed to Europe and to the friendship between our countries, we are nonetheless concerned ...

    27.09.2017| Marcel Fratzscher
  • Refereed essays Web of Science

    Decoupling Nominal and Real Rigidities: A Reexamination of the Canonical Model of Price Setting under Menu Costs

    We revisit Ball and Romer’s (1990) canonical model of price setting with menu costs that exhibits multiple equilibria. We show that changes to firms’ markups move nominal and real rigidities in opposite directions. Using game-theoretic tools to derive a unique equilibrium, we find that accounting for agents’ endogenous adjustment of price expectations further weakens the link between real and nominal ...

    In: Economics Letters 156 (2017), S. 129-132 | Philipp König, Alexander Meyer-Gohde
  • DIW Discussion Papers 1683 / 2017

    Media and Occupational Choice

    We address the question of whether media influences occupational choices. To theoretically examine media effects, we construct a dynamic Bayesian occupational choice model with sequential decisions under ambiguity due to imperfect information. We show that sufficiently intensive positive media articles and reports about entrepreneurship increase the probability of self-employment and decrease the probability ...

    2017| Alexander Konon, Alexander Kritikos
  • Economic Bulletin

    Increased labor market participation can’t do the job of mastering Germany’s demographic change in the future

    In the last decade the available labor force has expanded in Germany—despite the decline in the working-age population. The reason: labor market participation has increased, for women in particular and older people in general. Also noticeable was a rise in qualification level because well-educated people have a particularly high propensity to participate in the labor market. Most recently, Germany’s ...

    04.09.2017
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