External refereed essays

The Intergenerational Transmission of Health in Early Childhood: Evidence from the German Socio-Economic Panel Study

Children's physical health problems have clear and lasting impacts on a variety of later life outcomes, as a growing body of research has shown. Furthermore, problems such as obesity, motor impairment, and chronic diseases entail high social costs, particularly when childhood health problems carry over into adulthood. This study examines intergenerational relationships between parent and child health ...

Pollution Exposure and Child Health: Evidence for Infants and Toddlers in Germany

This paper examines the impact of outdoor pollution and parental smoking on children's health from birth until the age of three years in Germany. We use representative data from the German Socio-Economic Panel (SOEP), combined with five air pollution levels. These data were provided by the Federal Environment Agency and cover theyears 2002-2007. Our work makes two important contributions. First, we ...

How Important Is Cultural Background for the Level of Intergenerational Mobility?

Based on brother correlations in permanent earnings for different groups of second generation immigrants, the findings in this paper indicate that cultural background is not a major determinant of the level of intergenerational economic mobility.

The Evolution of Adult Height across Spanish Regions, 1950-1980: A New Source of Data

We present new evidence concerning the evolution of adult height across Spanish regions for the 1950-1980 male and female birth cohorts, using the augmented sample of the European Community Household Panel (ECHP) for Spain. This augmented sample, available only for the year 2000, contains self-reported height data representative at the Autonomous Community level. The average heights of these two sets ...

Sovereign Bond Yield Spreads: A Time-Varying Coefficient Approach

We study the determinants of sovereign bond yield spreads across 10 EMU countries between Q1/1999 and Q1/2010. We apply a semiparametric time-varying coefficient model to identify, to what extent an observed change in the yield spread is due to a shift in macroeconomic fundamentals or due to altering risk pricing. We find that at the beginning of EMU, the government debt level and the general investors' ...

Forecasting Private Consumption by Consumer Surveys

Survey-based indicators are widely seen as leading indicators for economic activity. As such, consumer confidence might be informative for the future path of private consumption. Although the indicators receive high attention in the media, their forecasting power often appears to be very limited. This paper takes a fresh look at the data that serve as a basis for the consumer confidence indicator (CCI) ...

The Long Run Relationship between Private Consumption and Wealth: Common and Idiosyncratic Effects

We investigate the long run relationship between private consumption, disposable income and wealth approximated by equity and house price indices for a panel of 15 industrialized countries. Consumption, income and wealth are cointegrated in their common components. The impact of house prices exceeds the effect arising from equity wealth. The long run vector is broadly in line with the life cycle permanent ...

The Contextual Effects of Social Capital on Health: A Cross-National Instrumental Variable Analysis

Past research on the associations between area-level/contextual social capital and health has produced conflicting evidence. However, interpreting this rapidly growing literature is difficult because estimates using conventional regression are prone to major sources of bias including residual confounding and reverse causation. Instrumental variable (IV) analysis can reduce such bias. Using data on ...

A Comparison of Response Rates in the English Longitudinal Study of Ageing and the Health and Retirement Study

Survey response rates are an important measure of the quality of a survey; this is true for both longitudinal and cross-sectional surveys. However, the concept of a response rate in the context of a panel survey is more complex than is the case for a cross-sectional survey. There are typically many different response rates that can be calculated for a panel survey, each of which may be relevant for ...

The Influence of Collusion on Price Changes: New Evidence from Major Cartel Cases

In this article, we compare the distribution of price changes between collusive and non-collusive periods for 11 major cartels. Based on the theoretical and empirical results from previous research, we discuss the four moments with respect to price changes (mean, variance, skewness and kurtosis). However, none of the above descriptive statistics can be considered as a robust test allowing a differentiation ...

Drivers of Exchange Rate Dynamics in Selected CIS Countries: Evidence from a Factor-Augmented Vector Autoregressive (FAVAR) Analysis

We investigate the likely sources of exchange rate dynamics in selected member countries of the Commonwealth of Independent States (CIS; Russia, Kazakhstan, Ukraine, Kyrgyzstan, Azerbaijan, and Moldova) over the past decade (1999-2010). Evidence is based on country VARs augmented by a regional common-factor structure (FAVAR model). The models include nominal exchange rates, the common factor of exchange ...

On the Role of Sectoral and National Wage Components in the Wage Bargaining Process

This paper provides an empirical analysis on the determination of wages at the sectoral level in main industrial economies. Nominal wages are bargained between labour unions and employers in imperfect competitive markets, where spillovers across sectors might occur. Using a principal component approach, sectoral wage growth rates are separated into common and idiosyncratic components. This defines ...

Liquidity and Asset Prices: How Strong Are the Linkages?

The appropriate design of monetary policy in integrated financial markets is one of the most challenging areas for central banks. One hot topic is whether the increase in liquidity has contributed to the formation of price bubbles in asset markets in the years preceding the financial crisis. If linkages are strong, the inclusion of asset prices in the monetary policy rule may limit speculative runs ...

Repayment Performance in Group Lending: Evidence from Jordan

Using data from a survey of 160 urban borrowing groups of the Microfund for Women in Jordan, we investigate the effect of screening, peer monitoring, group pressure, and social ties on borrowing groups' repayment behavior as an indirect test of different theoretical models. The dependent variable used captures the intensity of default measured by the total number of days of late repayment after each ...

Zensus der Zukunft? Erdbeobachtung zur räumlichen Abschätzung der Bevölkerungsverteilung

Expected Future Earnings, Taxation, and University Enrollment: A Microeconometric Model with Uncertainty

Taxation changes the expectations of prospective university students about their future level and uncertainty of after-tax income. To estimate the impact of taxes on university enrollment, we estimate a structural microeconometric model, in which a high-school graduate decides to enter university studies if expected lifetime utility from this choice is greater than that anticipated from starting to ...

Terror and Human Insecurity: Editoral Introduction

We identify research gaps and recent contributions in the economics of terror. We focus on the human drivers of insecurity as a key topic. Insecurity shapes growth, perceptions of individuals, and policy responses. The economics of security policies remains large under-researched.

Violent Conflict and Behavior: A Field Experiment in Burundi

We use a series of field experiments in rural Burundi to examine the impact of exposure to conflict on social, risk, and time preferences. We find that conflict affects behavior: individuals exposed to violence display more altruistic behavior towards their neighbors, are more risk-seeking, and have higher discount rates. Large adverse shocks can thus alter savings and investments decisions, and potentially ...

Energy Consumption and Economic Growth: New Insights into the Cointegration Relationship

This paper examines the long-run relationship between energy consumption and real GDP, including energy prices, for 25 OECD countries from 1981 to 2007. The distinction between common factors and idiosyncratic components using principal component analysis allows to distinguish between developments on an international and a national level as drivers of the long-run relationship. Indeed, cointegration ...

Gender and Remittances: Evidence from Germany

This study focuses on gender-specific determinants of remittances in Germany. The conceptual approach considers gender roles and naturalization to be crucial in the immigrant's decision to remit. For the empirical investigation, the authors use data from the German Socio-Economic Panel (SOEP) study for the years 2001-6. The findings show, first, that individual income differences in the country of ...