Topic Financial Markets

Sovereign Haircuts: 200 Years of Creditor Losses

We study sovereign external debt crises over the past 200 years, with a focus on creditor losses, or “haircuts”. Our sample covers 327 sovereign debt restructurings with external private creditors over 205 default spells since 1815. Creditor losses vary widely (from none to 100%), but the statistical distribution has remained remarkably stable over two centuries, with an average haircut of around 45 ...

Transitioning to Net Zero: Full Potential of Sustainable Finance Taxonomies Not Yet Exhausted

Sustainable finance taxonomies such as the European Union (EU) taxonomy can support the transition to a climate-neutral economy. As a classification system, these taxonomies serve to offer transparency and guidance as to how capital flows can be shifted to sustainable and environmentally-friendly activities. In this Weekly Report, we analyze 26 sustainable taxonomies from countries and regions around ...

Measuring Expenditure with a Mobile App: Do Probability-Based and Nonprobability Panels Differ?

In this case study, we examine a novel aspect of data collected in a typical probability and a typical nonprobability panel: mobile app data. The data were collected in Great Britain in 2018, using the Innovation Panel of the UK Household Longitudinal Study and the Lightspeed online access panel. Respondents in each panel were invited to participate in a month-long study, reporting all their daily ...

Decommissioning of Commercial Nuclear Power Plants: Insights from a Multiple-Case Study

The decommissioning of nuclear power plants is a complex and lengthy process. But so far, of the 204 already closed reactors, only eleven with more than 100 MW of electrical capacity have been fully decommissioned, while another 200 reactors are expected to reach the end of their operational lifetime in the next two decades. Against this backdrop, this comparative cross-country case study investigates ...

Expert Studies on Fundamental Issues of Public Finance, Taxation, and Economic Policy

After being commissioned by the Federal Ministry of Finance, researchers at DIW Berlin and the ifo Institute prepare short-term expert reports and analyses on national, European and international financial, tax and fiscal policy issues.

Expert Studies on Fundamental Issues of Public Finance, Taxation, and Economic Policy

After being commissioned by the Federal Ministry of Finance, researchers at DIW Berlin and the ifo Institute prepare short-term expert reports and analyses on national, European and international financial, tax and fiscal policy issues.

Stock market participation, remote work, and inequality

Stock market participation jumped upwards in Germany in the year 2020 by about 25%. A major cause for this was the enforced use of remote work. We show this by repeating a benchmark study with demanding data requests and adding remote work to the explanatory variables. Moreover, we implement an instrumental variables estimation based on commuting distance and work-from- home capacity. The...

Managing Public Debt and Economic Challenges

Join us for an insightful presentation on the global impact of COVID-19 on public debt and the challenges it poses for policymakers. This lecture explore the effectiveness of different approaches to reducing debt-to-GDP ratios, considering econometric analyses and historical experiences. Followed by a discussion. Key findings include: Fiscal consolidations: Timely and well-designed fiscal...

“Next steps for HANK” Workshop

3rd annual Workshop for Women in Macroeconomics, Finance and Economic History

The 3rd annual Workshop for Women in Macroeconomics, Finance and Economic History is being organized by the German Institute for Economic Research. The aim is to bring together female academic researchers and practitioners to promote and exchange ideas in the fields of Macroeconomics, Finance, and Economic History.