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DIW Discussion Papers 2042 / 2023
This paper provides causal evidence on the effect of credit crunches on political polarization. We combine data on bank-firm connections and electoral outcomes at the city-level during the 2008-2014 Spanish Financial Crisis. First, we show that firms in a relationship with weak banks experience a reduction in their loan supply and employment growth. Next, we estimate the effects of unemployment on ...
2023| Pia Hüttl, Simon Baumgartner
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DIW Discussion Papers 2037 / 2023
We examine the causal relationship between US monetary policy shocks, exchange rates and currency excess returns for a sample of eight advanced countries over the period 1980M1 to 2022M11. We find that the dynamics of the US dollar exchange rate is the main driver of currency excess returns. The exchange rate is significantly affected by US monetary policy shocks, where the persistence of this shock ...
2023| Kerstin Bernoth, Helmut Herwartz, Lasse Trienens
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DIW Discussion Papers 2033 / 2023
This study examines whether central banks can combat inflation that is caused by rising energy prices. By using a high-frequency event study and a Structural Vector Autoregression, we find evidence that the European Central Bank (ECB) and the Federal Reserve (Fed) are capable of doing so by affecting domestic and global energy prices. This “energy-price channel” of monetary policy plays an important ...
2023| Gökhan Ider, Alexander Kriwoluzky, Frederik Kurcz, Ben Schumann
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DIW Discussion Papers 2026 / 2022
Rent control is a highly debated social policy that has been omnipresent since World War I. Since the 2010s, it is experiencing a true renaissance, for many cities and countries facing chronic housing shortages are desperately looking for solution, directing their attention to controling housing rents and other restrictive policies. Is rent control useful or does it create more damage than utility? ...
2022| Konstantin A. Kholodilin
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DIW Discussion Papers 2022 / 2022
This paper investigates the dynamic effects of tax changes on the cross-sectional distribution of disposable income in the United States using a narrative identification approach. I distinguish between changes in personal and corporate income taxes and quantify the distributional effects on families and business owners. I document that tax changes affect incomes along the distribution differently and ...
2022| Stephanie Ettmeier
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DIW Discussion Papers 2020 / 2022
How do commodity price movements affect sovereign default risk over the long-run? Using a novel dataset covering 41 countries and 42 raw commodities, we take a comprehensive long-run view to shed light on this so far understudied relationship between commodity risk and sovereign risk across 150 years. We create a novel country-specific commodity price index that allows us to take advantage of countries’ ...
2022| Angélica Domínguez-Cardoza, Adelina Garamow, Josefin Meyer
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DIW Discussion Papers 2019 / 2022
This paper explores the effect of a firm’s reputation of being a green bond issuer on its financing costs. Using a sample of 73 listed Swedish real estate companies issuing in total about 1500 bonds over the period from 2011 till 2021, difference-in-difference analyses and instrumental variable estimations are applied to identify the causal impact of frequent green vis-à-vis frequent non-green bond ...
2022| Aleksandar Petreski, Dorothea Schäfer, Andreas Stephan
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DIW Discussion Papers 2014 / 2022
The purpose of this study is to identify whether an innovative company’s likelihood of facing financial constraints is different when the company possesses a public procurement contract (PP). Theory suggests that the treatment effects of public procurement, particularly when mediated by the demand-pull effect, may lower a company’s funding constraints for innovation. We test this theory and apply extended ...
2022| Dorothea Schäfer, Andreas Stephan, Sören Fuhrmeister
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DIW Discussion Papers 2012 / 2022
Does central bank collateral policy contribute to financial market integration? We address this question by exploiting that, in 2007, the European Central Bank replaced national collateral frameworks by a single list. Under the single list regime, euro area banks could pledge all euro area bank loans as collateral, not only domestic loans as before the framework change. Banks holding a large share ...
2022| Pia Hüttl, Matthias Kaldorf
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DIW Discussion Papers 2008 / 2022
This study investigates the effects of short-lived rent control regulations introduced in Catalonia in September 2020 and revoked in March 2022. Using the microdata of the largest Spanish housing advertisement portal idealista between January 2017 and May 2022, we analyze the dynamics of prices and supply for dwellings offered for rent and for sale. We also examine separately the rental and sales markets. ...
2022| Konstantin A. Kholodilin, Fernando A. López, David Rey Blanco, Pelayo González Arbués