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 ...
Power systems with increasing shares of wind and solar power generation have higher capital and lower operational costs than traditional technologies. This increases the importance of the cost of finance for total system cost. We quantify how renewable policy design can influence cost of finance by addressing regulatory risk and facilitating hedging. We use interview data on wind power financing costs ...
This article investigates the impact of indemnity payments from index insurance on the asset recovery of households following a catastrophic weather disaster. Our focus is on the Index-Based Livestock Insurance (IBLI) in Mongolia. We analyze the effect of IBLI indemnity payments after a once-in-50-year winter disaster struck Mongolia over the 2009/10 winter. The analysis is based on three waves of ...
In a high-tax labor market like France, tax reductions are a popular tool to support employment of low-wage workers. The welfare implications of these exemptions go beyond the directly affected. We ask three questions. First, because employment and wages are determined by both supply and demand of labor, what are the equilibrium effects of tax reductions on different workers? Second, since policy...
Statement by DIW president Marcel Fratzscher about the results of the German federal election 2017.
Both, a high quality of the Early Childhood Education and Care (ECEC) setting and a high quality of the home learning environment foster children’s development. However, we know little about the interactions between ECEC quality and the home learning environment. We examine whether the child’s attendance in a high ECEC quality setting improves the quality of her home learning environment. We use very ...
We investigate how personal income taxes affect the portfolio share of personal wealth that entrepreneurs invest in their own business. In a reformulation of the standard portfolio choice model that allows for underreporting of private business income to tax authorities, we show that a fall in the tax rate may increase investment in risky entrepreneurial business equity at the intensive margin, but ...
Stefan Seifert and Marica Valente have been granted a research scholarship from the American Association of Economists (AAWE), as well as receiving a prize for their paper "An offer that you can’t refuse? Agrimafias and Migrant Labor on Vineyards in Southern Italy." Both were presented at the annual AAWE conference in Pedua, Italy. The dean of the GC, Prof. Weizsäcker, congratulates them ...
