Globally installed wind power capacity has grown tremendously since 2000. This study focuses on the local economic impacts of wind power deployment. A theoretical model shows that wind power deployment is not necessarily driven by locally-accruing economic payoffs, but also by other factors such as emphasis on environmentally-friendly energy production and its associated benefits. The theoretical analysis ...
Job search requirements constrain the effort choice of unemployment insurance recipients by enforcing a minimum number of monthly applications. This paper is the first to assess how individual search effort, job finding and job stability react to this constraint. Standard job search theory predicts that requirements affect each job seeker relative to her unconstrained effort choice. Therefore, the ...
DIW Berlin’s researchers warn: employment does not necessarily prevent poverty—11.5 million people in Germany are at risk of poverty—one in five in eastern Germany is living below the poverty risk threshold Real disposable household incomes in Germany rose by an average of five percent from 2000 to 2012. At the same time, according to a study by the German Institute for Economic ...
Dr. Grabka, you have analyzed income inequality in Germany. Does your research show that the gap between rich and poor has widened even further?If we look at the development of income inequality since 2000, it is clear that the gap between the richer and the poorer income groups has widened further. During this period, real income gains of more than 15 percent were recorded among the top ten percent ...
This paper argues that counter-cyclical liquidity hoarding by financial intermediaries may strongly amplify business cycles. It develops a dynamic stochastic general equilibrium model in which banks operate subject to agency problems and funding liquidity risk in their intermediation activity. Importantly, the amount of liquidity reserves held in the financial sector is determined endogenously: Balance ...
While various empirical studies have found negative growth-effects of natural disasters, little is yet known about the microeconomic channels through which disasters might affect short- and especially long-term growth. This paper contributes to filling this gap in the literature by studying how natural disasters affect individual saving decisions. This study makes use of a natural experiment created ...
We study the impact of the Fukushima disaster on environmental concerns, well-being, risk aversion, and political preferences in Germany, Switzerland, and the UK. In these countries, overall life satisfaction did not significantly decrease, but the disaster significantly increased environmental concerns among Germans. One underlying mechanism likely operated through the perceived risk of a similar ...
According to calculations based on the Socio-Economic Panel (SOEP) study, average disposable household income rose by five percent in real terms between 2000 and 2012. Only the highest earners have benefited from this development. While real income in the top ten percent rose by more than 15 percent, the earnings of the middle income groups stagnated, and even fell in the lower income groups. As a ...
