External refereed essays

How Many Brackets Should We Ask for to Derive Adequate Metric Information for Income and Wealth?

This paper investigates how the number of brackets and the choice of upper cutoffs in grouped data affect the metric approximation of income and wealth. The literature currently lacks a definition of what should be considered too few brackets or too-low cut-offs. Using German survey data, we show that more than six (eight) brackets and an upper cut-off at the 95th (97th) percentile are sufficient to ...

Immigration, Segregation, and Attitudes Toward Immigrants: A Longitudinal Multiscalar Analysis across Egohoods

Evidence on how proximity to ethnic outgroups shapes attitudes toward immigration remains inconclusive. We suggest this may be driven, in part, by the fact that studies rarely account for the role of residential segregation. We argue that how the minority-share in an environment affects majority-group attitudes will depend on how segregated groups are from one another. To explore this, we undertake ...

Demand Response Within the Irish Wastewater Treatment Sector: Analysing Flexibility Potentials of the Aeration Process and Wastewater Pumping Within an Integrated Energy–Water System Model

Significant amounts of electricity consumed in air and water pumping make wastewater treatment energy-intensive. This study investigates the potential power system benefits of load shifting within these pumping processes. As a case study, the Irish power system and wastewater sector are studied by using an integrated modelling approach. The results show that demand flexibility within the wastewater ...

Common Ownership and Market Entry: Evidence from the Pharmaceutical Industry

Long-Term Employment Effects of the Minimum Wage in Germany: New Data and Estimators

We investigate the long-term effects of the introduction of the German minimum wage in 2015 and its subsequent increases on regional employment. Using comprehensive survey data, we are able to measure the regional bite of the minimum wage in 2014, just before its introduction, as well as in 2018, before it was raised substantially in several steps. The introduction mainly affected the labour market ...

The Macro-Economic Effects of a European Deposit (Re-)Insurance Scheme

Recent proposals for a European deposit insurance scheme (EDIS) favor a reinsurance framework. In this paper, we use a regime-switching open economy DSGE model with bank defaults to assess the relative efficiency of such a scheme. We find that reinsurance by EDIS is more effective in stabilizing real activity, credit, and welfare than a national fiscal backstop. We demonstrate that risk-weighted contributions ...

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 ...

Kids or No Kids? Life Goals in One’s 20s Predict Midlife Trajectories of Well-Being

For many people, parenthood constitutes a crucial part of a successful life. Yet, the number of adults who never have children is increasing and has prompted concerns about their well-being. Past research mostly focused on parents and rarely investigated factors that are theoretically meaningful for the well-being of adults without children. Our preregistered study uses a propensity-score matched design ...

A Retrospective Study of State Aid Control in the German Broadband Market

Equilibrium Effects of Payroll Tax Reductions and Optimal Policy Design

We quantify the unintended effects of a low-wage payroll tax reduction using an equilibrium search model featuring bargaining, worker and firm productivity heterogeneity, labor taxes, and a minimum wage. The decentralized economy is inefficient due to search externalities and labor market policies. We estimate the model using French data and find that a significant reduction in low-wage payroll taxes ...

An Economical Measure of Attitudes Towards Artificial Intelligence in Work, Healthcare, and Education (ATTARI-WHE)

Artificial intelligence (AI) has profoundly transformed numerous facets of both private and professional life. Understanding how people evaluate AI is crucial for predicting its future adoption and addressing potential barriers. However, existing instruments measuring attitudes towards AI often focus on specific technologies or cross-domain evaluations, while domain-specific measurement instruments ...

Cross-national Differences in Socioeconomic Achievement Inequality in Early Primary School: The Role of Parental Education and Income in Six Countries

This paper presents comparative information on the strength of the association between socioeconomic status (SES) and literacy skills at ages 6–8, drawing on data from France, Germany, Japan, Rotterdam (Netherlands), the United Kingdom, and the United States. We investigate whether the strength of the association between SES and literacy skills in early-to-mid childhood depends on the operationalization ...

Navigating the Housing Channel of Monetary Policy Across Euro Area Regions

This paper assesses the role of the housing market in the transmission of monetary policy across euro area regions. By exploiting a novel regional dataset on housing-related variables, a structural panel VAR analysis shows that conventional and unconventional monetary policy shocks propagate effectively to the economy, particularly to the housing sector, albeit in a heterogeneous fashion across regions. ...

Investigation of Dog Ownership and Physical Activity on Weekdays and Weekends Using Longitudinal Data from the SOEP Cohort

This study examines the association between dog ownership over a period of 5 years (always, sometimes and no ownership) with physical activity on weekdays and weekends over a period of 6 years using the nationally representative German Socio-Economic Panel. Participants were asked if they had any pets and how many hours they spend on sports, fitness, and exercise. We hypothesized that the length of ...

The Price Elasticity of Natural Gas Demand of Small Consumers in Germany during the Energy Crisis 2022

Understanding how consumers respond to turbulent market conditions is crucial for planning security of natural gas supply. This paper estimates the price elasticity of demand of small consumers in Germany in the period with both high price fluctuations and a fear of natural gas shortage in the aftermath of the Russian invasion of Ukraine. Using granular data between 2018 and 2023, we estimate an Auto ...

The Long-Term Implications of Destruction During the Second World War on Private Wealth in Germany

By the end of the Second World War, an estimated 20% of the West German housing stock had been destroyed. Building on a theoretical life-cycle model, this paper examines the persistent consequences of the war for individual wealth across generations. As our empirical basis, we link a unique historical dataset on the levels of wartime destruction in 1739 West German cities with micro data on individual ...

Wealth Creators or Inheritors? Unpacking the Gender Wealth Gap from Bottom To Top and Young to Old

There is growing interest in understanding how gender influences the accumulation of wealth. While prior studies focused on labor-related determinants, our research focuses on inheritances and gifts. Using unique survey data that oversamples the top 1% of wealth holders in Germany, we show that the gender wealth gap is small for individuals up to age 40, then widens, and declines for those past retirement ...

Age Trajectories of Perceptual Speed and Loneliness: Separating Between-Person and Within-Person Associations

Objectives: We aimed at examining between-person and within-person associations across age trajectories of perceptual speed and loneliness in old age. Method: We applied multilevel models to 4 waves of data collected over 6 years from 1,491 participants of the Berlin Aging Study II (60–88 years at baseline, 50% women) to disentangle between-person and within-person associations across age trajectories ...

'Climate Neutral' is a Lie — Abandon It as a Goal: Correspondence

Catalyzing the Transition to a Climate-Neutral Industry with Carbon Contracts for Difference: Commentary