We explore the impact of large banks and of financial openness for aggregate growth. Large banks matter because of granular effects: if markets are very concentrated in terms of the size distribution of banks, idiosyncratic shocks at the bank-level do not cancel out in the aggregate but can affect macroeconomic outcomes. Financial openness may affect GDP growth in and of itself, and it may also influence ...
The Brexit vote has considerably increased economic uncertainty in Europe and beyond. It will likely affect economic performance and in particular investment in the euro area, which are both already relatively weak. The impact of this uncertainty shock on the euro area and the German economy is estimated with an econometric framework. A counterfactual analysis indicates that the uncertainty associated ...
This paper introduces changes in the level of ambiguity as a complementary source of time-varying risk aversion. We show in a consumption-based asset pricing model with simultaneously risky and ambiguous assets that a rise in the level of ambiguity raises investors' risk aversion. The effect is quantified in an application to European sovereign debt markets using a structural VAR to achieve identification ...
DIW Berlin study shows that Brexit vote-related uncertainty will do considerable damage to the European and German economies in a way that will be noticeable even two years from now – since the German economy is primarily affected by sinking business investment, policy should be more oriented toward promoting investment Uncertainty plays a major role in the economy overall – but what are ...
Dr. Rieth, you’ve investigated the possible consequences of the recent spike in uncertainty related to the Brexit vote. How exactly did you measure the change in economic uncertainty here? We isolated one specific aspect that was undoubtedly related to the “Leave” vote: the change in economic uncertainty that took place overnight between June 23 and June 24, 2016. We tried ...
Die Psychologie der Lebensspanne und die Soziologie des Lebensverlaufs betonen die Bedeutung von Kontexten für den Erwerb individueller Fähigkeiten und die Entwicklung im Leben. In Übereinstimmung mit diesen konzeptionellen Annahmen zeigen Studien, dass verschiedene Kontexte die Entwicklung individueller Bereiche beeinflussen. Jedoch ist wenig darüber bekannt, wie kontextuelle Faktoren in der zweiten ...
