Understanding the causes of the slowdown in aggregate productivity growth is key to maintaining the competitiveness of advanced economies and ensuring long-term economic prosperity. This paper is the first to provide evidence that investment in Knowledge-Based Capital (KBC), despite having a positive effect on productivity at the micro level, is a driver of the weak productivity performance at the ...
We argue that within-industry investor diversification is directly related to common ownership incentives (profit loads on rival firms by the manager of a firm) in product markets. Because of their respective investment strategies, passive investors are naturally more diversified than active investors. If more money flows from active toward passive investors, then common ownership incentives increase. ...
The purpose of the project is to measure the digitalisation of the German economy and to track its development over time. The results will serve as an evidence-based framework for decision makers in policy and business. The project comprises several topics. DIW Berlin focuses on the analysis of the productivity effects of digitization.
As part of the evaluation process of the current State aid rules, the European Commission has awarded to the consortium of Lear, DIW Berlin, and Sheppard Mullin, a specific contract to carry out a study of the EU rules for State aid facilitating access to finance for Small and Medium Enterprises (SMEs). These rules comprise the Guidelines on State aid to promote risk finance investments (RFG) and...
As part of the evaluation process of the current State aid rules, the European Commission has awarded to the consortium of Lear, DIW Berlin, and Sheppard Mullin, a specific contract to carry out a study to support its evaluation of the rules regarding access of airports to operating aid under the EU Aviation Framework applicable as of 2014 (2014 Aviation Guidelines or the Guidelines). The study...
This paper presents a broad retrospective evaluation of mergers and merger decisions in the digital sector. We first discuss the most crucial features of digital markets such as network effects, multi-sidedness, big data, and rapid innovation that create important challenges for competition policy. We show that these features have been key determinants of the theories of harm in major merger cases ...
Following reunification, productivity in eastern Germany grew rapidly. A strong industrial sector is key to a thriving German economy. However, the narrowing of the industrial productivity gap between eastern and western Germany has come to a standstill since the financial and economic crisis and the gap remains considerable today. Nevertheless, when comparing similar regions in eastern and western ...
