We propose a novel method to find Nash equilibria in games with binary decision variables by including compensation payments and incentive-compatibility constraints from non-cooperative game theory directly into an optimization framework in lieu of using first order conditions of a linearization, or relaxation of integrality conditions. The reformulation offers a new approach to obtain and interpret ...
Empirical research that uses subjective data relies heavily on the validity of the information reported by survey participants. However, situation-specific factors, such as the atmosphere in which the interview takes place, may cause considerable differences in responses. While some researchers of subjective well-being have, in fact, discussed the role of survey factors and acknowledged that these...
Abstract: As a consequence of WWII, Austria was divided for ten years into four different occupation zones. Before tight travel restrictions came into place, about 11 percent of the population residing in the Soviet-zone moved across the demarcation line. We exploit this large internal migration shock, as a natural experiment to further our understanding of why economic activity is so highly...
In this paper we investigate the introduction of an export tax on steam coal levied by an individual country (Australia), or a group of major exporting countries. The policy motivation would be twofold: generating tax revenues against the background of improved terms-of-trade, while CO2 emissions are reduced. We construct and numerically apply a two-level game consisting of an optimal policy problem ...
The interview with Wolf-Peter Schill is published in DIW Economic Bulletin 17/2015. It is available for Download as pdf-document. More issues of DIW Economic Bulletin
Joint press release from the German Institute for Economic Research (DIW Berlin) and the Institute for Applied Ecology (Öko-Institut) Even if the use of electric road vehicles (EVs) were to increase significantly, the total annual power consumption of EV fleets would be small compared to overall power demand. However, uncontrolled charging, which involves the vehicle being fully recharged as ...
The German government plans to significantly increase the deployment of electric vehicles. What impact would this have on the country’s power system and carbon emissions? This question was addressed as part of a European research project analyzing various scenarios up to 2030. One of the key findings of the study is that total annual power consumption of the four to five million electric vehicles (depending ...
Capital-Flow Management Measures: What Are They Good For?
