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Do Stock Prices Reflect Their Fundamentals? New Evidence in the Aftermath of the Financial Crisis

We re-examine the dynamic relations between stock prices and macroeconomic fundamentals for six major industrialized countries in the wake of the recent financial crisis. Our analysis is based on a structural vector autoregressive (SVAR) model, which relies on a long-run restriction to identify fundamental and non-fundamental shocks to stock prices. This paper is the first in this line of literature ...

On the Empirical Relevance of the Lucas Critique: The Case of Euro Area Money Demand

This paper examines the relevance of the Lucas critique for euro area money demand. Based on the money in the utility function approach, a vector error correction model is specified to investigate the relationship between money and inflation in times of policy shifts. A well defined equation for money demand is obtained. The results indicate that the evolution of M3 is still in line with money demand. ...

Essays on Liquidity Frictions and Macroeconomic Dynamics: Dissertation

Die in dieser Dissertation gesammelten Aufsätze untersuchen die Interaktion zwischen Finanzmärkten und realwirtschaftlicher Entwicklung. Sie stellen dabei insbesondere auf die Rolle von Liquiditätsfriktionen ab. In den folgenden Kapiteln werden zwei unterschiedliche Modellrahmen entwickelt, in denen einerseits Refinanzierungsrisiken im Bankensektor und andererseits Marktliquiditätsrisiken, also Friktionen ...

Career Breaks of Mothers and the Role of Time Discounting

Personal Taxation of Capital Income and the Financial Leverage of Firms

Tax competition for capital has led to a trend where many countries levy lower taxes on interest income, often introducing differential taxation between interest and business income. This study analyzes the effect on firm debt usage. We exploit Germany’s 2009 tax reform, which introduced a final withholding tax on interest income with a flat rate 18 percentage points below the unchanged tax rate on ...

The Potential of Electromobility in Austria: Evidence from Hybrid Choice Models under the Presence of Unreported Information

This paper analyses the impact of the introduction of electromobility in Austria, focusing specifically on the potential demand for electric vehicles in the automotive market. We estimate discrete choice behavioral mixture models considering latent variables; these allows us to deal with this potential demand as well as to analyze the effect of different attributes of the alternatives over the potential ...

Wealth Effects on Job Preferences

Preferences over jobs depend on wages and non-wage aspects. Variation in wealth may change the importance of income as a motivation for working. Higher wealth levels may make good non-wage characteristics relatively more important. This hypothesis is tested empirically using a reduced form search model in which differential job leaving rates identify willingness to pay for non-wage aspects of jobs. ...

Maintaining Perceived Control with Unemployment Facilitates Future Adjustment

Unemployment is a major challenge to individuals' development. An important personal resource to ameliorate the negative impact of unemployment may be perceived control, a general-purpose belief system. Little is known, however, about how perceived control itself changes with the experience of unemployment and what the antecedents, correlates, and consequences of such change in perceived control are ...

Benefits of Coordinating Congestion Management in Electricity Transmission Networks: Theory and Application to Germany

This article analyzes the coordination of congestion management in the electricity grid and identifies the benefits from closer cooperation among Transmission System Operators. Mimicking the German situation with four Transmission System Operators in charge of relieving grid congestion, in particular by redispatch of power plants, we set up a model with shared transmission network constraints. Through ...

Beyond the Employment Agency: The Effect of Social Capital on the Duration of Unemployment

This paper relates an individual’s social capital and the length of unemployment spells of the very same individual. For this purpose, we analyze several facets of an agent’s social activities as determinants of her social capital. Social activities lead to social interactions within organizational settings, which build up social capital at the group level. Via social interactions an exchange of knowledge ...