Brexit caught everybody by surprise and prominent economists were no exception: Krugman called it a “tragic development,” Sachs “a watershed moment,” and Reinhart equated Brexit to “a blow to globalisation.” Uncertainty about the impacts of Brexit on the UK economy is large, but larger still is that regarding what happens to the European Union. In this seminar...
Using administrative data of all workers and firms in Germany, we quantify the spillover effects of mass layoffs. Our empirical strategy combines matching with an event study approach to trace employment and wages in regions hit by a mass layoff to suitable control regions. We find sizable and persistent negative spillover effects on the regional economy: regions, and especially firms producing in...
The risk return relationship is analysed in bivariate models for return and realised variance (RV) series. Based on daily time series from 21 international market indices for more than 13 years (January 2000 to February 2013), the empirical findings support the arguments of risk return tradeoff, volatility feedback and statistical balance. It is argued that the empirical risk return relationship...
We analyze the increasing concentration of U.S. banking assets using nonparametric empirical methods that characterize dynamic power law distributions in terms of two shaping factors the asset reversion rates and idiosyncratic volatilities for different size-ranked banking institutions. We show that the greater concentration of bank-holding company (BHC) assets is caused by decreased mean...
The Fehmarn Belt is a strait between Denmark and Germany, currently served by a ferry. This note analyses the theory of competition between the ferry and a planned tunnel, the Fehmarn Belt Fixed Link. The model is an asymmetric duopoly and addresses two questions: 1. Will the tunnel induce the ferry to exit the market, once it operates? 2. Will the tunnel's toll revenue suffice to cover its cost? To ...
Roman Mendelevitch, a doctoral student of the Energy, Transportation, Environment department, was awarded the "Conference Presentation Award for Young Researchers" (Vortragsprämie) for his talk based on the paper "Market Power Rents and Climate Change Mitigation: A Rationale for Coal Export Taxes?”" at the EAERE Annual Conference 2015 in Helsinki. The award is endowed by the German Bundesbank ...
Nils May, a doctoral student of the Climate Policy department, was awarded the "Conference Presentation Award for Young Researchers" (Vortragsprämie) for his talk based on his paper "The Impact of Wind Power Support Schemes on Technology Choices" at the EAERE Annual Conference 2015 in Helsinki. The award is endowed by the German Bundesbank and was awarded by the Verein für Socialpolitik ...
Compliance with principles of ethical research is a fundamental prerequisite for all scientific work. As a research institution, DIW Berlin has a responsibility to protect scholarly research and itself from falsifications and to take appropriate action against the abuse and manipulation of scholarly findings. The ombudsmen Jan Marcus and Johannes Geyer will introduce the principles of...
