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Diskussionspapiere 2063 / 2023
We study the role of international financial integration in buffering natural disaster shocks, using a large sample of advanced and emerging economies. Conditioning on such exogenous events addresses the endogeneity between financial structures and economic conditions. We document that integration improves shock absorption: output, consumption, and investment are significantly higher after a shock ...
2023| Franziska Bremus, Malte Rieth
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Other refereed essays
In:
Intereconomics
58 (2023), 5, S. 260-266
| Heike Belitz, Martin Gornig
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Diskussionspapiere 2050 / 2023
We construct the first measure of collateral re-use at the bank and bond level for the European repo market using a regulatory transaction dataset. We show that banks materially increase the rate of re-use in response to tightened asset scarcity induced by the Eurosystem’s asset purchase program. We find that dealers accommodate clients’ demand for safe assets rather than liquidity and profit from ...
2023| Justus Inhoffen, Iman van Lelyveld
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Diskussionspapiere 2048 / 2023
Various stakeholders are increasingly encouraging companies from the real economy to adopt measures facilitating their transition towards carbon neutrality. In this context, companies are expected to implement forward-looking strategies and climate-related reporting practices using scenario analysis aligned with scientific evidence and credible pathways to net zero carbon emissions. This paper examines ...
2023| Fernanda Ballesteros, Franziska Schütze, Catherine Marchewitz, Alexandra Hüttel
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Refereed essays Web of Science
This study investigates how atypical employment (i.e., part-time, temporary work, mini-jobs) affects workers' ability to accumulate financial assets and exposes them to asset poverty in Germany. Asset poverty occurs when household financial resources (e.g., bank deposits and stock equity) are insufficient to live at the income poverty line for three months. Previously, studies on labour market processes ...
In:
Research in Social Stratification and Mobility
85 (2023), 100803, 11 S.
| Claudia Colombarolli, Philipp M. Lersch
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DIW Weekly Report 26/27 / 2023
Over the past 20 years, China has granted a conspicuous amount of loans to African countries. New loan data show that compared to Western multilateral loans, Chinese loans have relatively high interest rates and shorter maturities, tend to be highly collateralized, and are volatile over time. Thus, Western loans are generally more likely to be in the economic interest of the borrowing country. Furthermore, ...
2023| Lorenz Meister, Lukas Menkhoff, Annika Westen
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Refereed essays Web of Science
Negative policy rates can convince markets that deposit rates will remain lower-for-longer, even when current deposit rates are constrained by zero. This is the signalling channel of negative interest rates. We analyse the optimality and effectiveness of negative rates in the context of this novel transmission channel. In a stylized model, we prove two necessary conditions for optimality: time-consistency ...
In:
Journal of Monetary Economics
138 (2023), S. 87-103
| Oliver de Groot, Alexander Haas
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Refereed essays Web of Science
The European Central Bank (ECB) is currently facing major challenges. Fragmentation of government bond yields across Member States of the European Economic and Monetary Union, based on different economic and fiscal policies, hampers a uniform transmission of monetary policy. At the same time, climate-related financial risks need to be addressed. In recent years, the ECB is meeting these challenges ...
In:
The Economists' Voice
20 (2023), 1, S. 111-118
| Kerstin Bernoth, Sara Dietz
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Diskussionspapiere 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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Refereed essays Web of Science
In this study, we argue that parents’ class position may influence the type and timing of their offspring's investments in financial assets. These investments may facilitate net worth accumulation beyond direct transfers, contributing to the intergenerational reproduction of social positions. We test these expectations using retrospective life history and prospective panel data for 14 countries from ...
In:
Acta Sociologica
66 (2023), 2, S. 210-230
| Philipp M. Lersch, Olaf Groh-Samberg