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Accidents, Liability Obligations and Monopolized Markets for Spare Parts

We analyze the effects of accidents and liability obligations on the incentives of car manufacturers to monopolize the markets for their spare parts. We show that monopolized markets for spare parts lead to inefficiently high prices for spare parts. Furthermore, monopolization induces the manufacturers to choose inefficiently high qualities. The key for these results is the observation that high prices ...

On the Investment Sensitivity of Debt under Uncertainty

We investigate the impact of debt on a panel of U.S. manufacturing firms' capital investment behavior as the underlying firm-specific and market-level uncertainty changes. Our estimates show that the influence of leverage on capital investment may be stimulating or mitigating depending on the effects of uncertainty.

Investigating M3 Money Demand in the Euro Area

Euro area monetary growth has exceeded its target since 2001. Likewise, recent empirical studies did not find evidence in favour of a stable long-run money demand function. In contrast to the bulk of the literature, we are able to identify a stable long-run money demand relationship. This result is obtained when the analysis is done without the short run homogeneity restriction between money and prices. ...

Armut von Erwerbstätigen im europäischen Vergleich: Erwerbseinkommen und Umverteilung

In Europe, there are significant differences in the extent and in the structure of in-work poverty. Based on a comparison of 20 countries the present study analyses to what extent this is due to the differences in the institutional framework conditions of a given country. The analyses are based on micro data from the EU Statistics on Income and Living Conditions (EU-SILC) of 2006 and macro data from ...

"Making Work Pay" in a Rationed Labour Market

This paper empirically analyzes the labor supply effects of two "making work pay" reforms in Germany. We provide evidence in favor of policies that distinguish between low effort and low productivity by targeting individuals with low wages rather than those with low earnings. We discuss our results more generally and with comparisons to the family-based tax credits in force in the US and the UK. For ...

Les descendants de migrants maghrébins en France et turcs en Allemagne: deux types de mise à distance sociale

Telling the Truth May Not Pay Off: An Empirical Study of Centralized University Admissions in Germany

Matching university places to students is not as clear cut or as straightforward as it ought to be. By investigating the matching algorithm used by the German central clearinghouse for university admissions in medicine and related subjects, we show that a procedure designed to give an advantage to students with excellent school grades actually harms them. The reason is that the three-step process employed ...

What Drives Housing Prices Down? Evidence from an International Panel

In this study, we suggest an explanation for the low growth rates of real housing prices in Canada and Germany in comparison to other OECD countries over the period 1975-2005. We show that the long-run development of housing markets is determined by real disposable percapita income, the real long-term interest rate, population growth, and urbanization. The differential development of real housing prices ...

Authentic Happiness Theory Supported by Impact of Religion on Life Satisfaction: A Longitudinal Analysis with Data for Germany

Using data from the German Socio-Economic Panel Survey, this paper assesses the relationship between life satisfaction and religious practice. It is shown that individuals who become more religious over time record long term gains in life satisfaction, while those who become less religious record long term losses. This result holds net of the effects of personality traits, and also in fixed effects ...

Measurement of Health, Health Inequality, and Reporting Heterogeneity

Using representative survey data of the German Socio-Economic Panel Study (SOEP) for 2006, we show that the magnitude of health inequality measures like the concentration index (CI) depends crucially on the underlying health measure. The highest degree of inequality is found when dichotomized subjective health measures like health satisfaction or self-assessed health (SAH) are employed. With the use ...