This paper analyses the roles of bank asset fire sales, asset liquidity, and recourse to the central bank as lender of last resort for the equilibrium debt structure of banks and the spread between bank lending rates and the central bank policy rate (the short term risk free rate). The paper also provides a first attempt of a comprehensive empirical cross-sectional analysis of liquidity properties...
We find that one global factor explains an important part of the variance of a large cross section of returns of risky assets around the world. This global factor can be interpreted as reflecting the time-varying degree of market wide risk aversion and aggregate volatility. Importantly, we show, using a large Bayesian VAR, that US monetary policy is a driver of this global factor in risky asset...
The transport sector - road transport, in particular - accounts for more than half of world oil consumption. In the future, the transport sector’s share of oil consumption will grow even more, primarily due to the increasing use of motor vehicles in developing and emerging countries. Road freight transport will also take on greater significance. And overall, gasoline - and, increasingly, diesel - will ...
This paper studies the role of paternal risk attitudes in sons’ long-run education outcomes and in the intergenerational transmission of incomes and education. Based on 1984–2012 German Socio-Economic Panel Study data of sons and fathers, I show that fathers’ risk aversion is inversely related to sons’ long-run levels of education. A quasi-experimental setting provides no evidence for reverse causality. ...
Germany introduced a new mandatory insurance for long-term care in 1995 as part of its social security system. It replaced a system based on means tested social welfare. Benefits from the long-term care insurance are not means tested and depend on the required level of care. The insurance provides both benefits in kind and cash benefits. The new scheme improved the situation for households to organize ...
The goal of the project is to provide scientific advice to the Federal Environmental Agency (UBA/DEHSt) and the Federal Ministry for the Environment in evaluating, implementing nationally, and further developing the EU’s Emissions Trading System (EU ETS). In particular, the project considers challenges and policy options arising in the context of the political decision process towards adapting the...
The project provides scientific advice to the Federal Environmental Agency (UBA/DEHSt) and the Federal Ministry for the Environment in evaluating, implementing nationally, and further developing the EU’s Emissions Trading System (EU ETS). Central topics of the analyses are the interaction of the EU ETS with energy and climate policies, the structural development of the EU ETS post-2020 and its...
