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Comparison of Feed-in Tariffs and Tenders to Remunerate Solar Power Generation

This paper analyzes the trade-offs for using feed-in tariffs or tenders to remunerate different scales of solar photovoltaics (PV) projects. In recent years, European countries increasingly combined feed-in tariffs for small renewables systems with tenders for large installations. This study develops an analytic framework to quantify deployment effectiveness of responsive feed-in tariff adjustment ...

Low Base Interest Rates: An Opportunity in the Euro Debt Crisis

Member states of the euro area have been struggling with the legacies of the severe financial and economic crisis for four years now. But debt ratios are still rising. Negative primary balances, low growth, and low inflation do not allow for a recovery similar to the one in the US after the Second World War. Between 1946 and 1953, the US was able to almost halve its debt with no haircuts. The crisis ...

Taking the Mandate of the ECB Seriously

International Capital Markets Structure, Preferences and Puzzles: The US-China Case

A canonical two country-two good model with standard preferences does not address three classic international macroeconomic puzzles as well as two well-known asset pricing puzzles. Specifically, under financial autarky, it does not account for the high real exchange rate (RER) volatility relative to consumption volatility (RER volatility puzzle), the negative RER-consumption differentials correlation ...

Does the Economic Integration of China Affect Growth and Inflation in Industrial Countries?

The Chinese economic development affects GDP growth and inflation in the advanced countries. The size of the effects is inferred from multivariate time series and structural econometric methods. In particular, the GVAR and the NiGEM are employed to examine the interdependencies between the business cycles in China and industrial countries, including the US, the euro area and Japan. Evidence is based ...

Dispersed Communication by Central Bank Committees and the Predictability of Monetary Policy Decisions

The paper asks whether members of central bank decision-making committees should communicate with the public in a collegial manner, by conveying the consensus or majority view of the committee, or in an individualistic way, by providing the diversity of views among the committee members. It finds that more active as well as more consistent communication by committee members improves the predictability ...

The Pricing of Sovereign Risk and Contagion during the European Sovereign Debt Crisis

The paper analyses the drivers of sovereign risk for 31 advanced and emerging economies during the European sovereign debt crisis. It shows that a deterioration in countries' fundamentals and fundamentals contagion - a sharp rise in the sensitivity of financial markets to fundamentals - are the main explanations for the rise in sovereign yield spreads and CDS spreads during the crisis, not only for ...

German Science Foundation Grant for the project "Parallel imports, innovations, and generics: Competition in the German market for oral anti-diabetics"

The German Science Foundation granted the 2-years project "Parallel imports, innovations, and generics: Competition in the German market for oral anti-diabetics" by Jun. Prof. Annika Herr (DICE) and Prof. Dr. Tomaso Duso (DIW Berlin and DICE). The primary focus of the research proposal is the empirical evaluation of parallel imports' competitive impact in on-patent drug markets. By means ...

Next steps for EU ETS

The EU Commission just suggested a set of reforms to the EU ETS. What is the plan? What is the underpinning analysis? Can it re-establish credibility of the scheme? - and when will it be implemented?

ICT and Education: Evidence from Internet Access at Pupil Home Addresses

Abstract: How do falling costs of accessing information and communication affect human capital formation? This paper combines administrative test score records for the population of English primary and secondary school students with information about available internet speed at student home addresses to contribute to our understanding of this question. In the first step, we use data from UK...