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  • Refereed essays Web of Science

    Is Entrepreneurial Success Predictable? An Ex-Ante Analysis of the Character-Based Approach

    This paper empirically analyzes whether the character-based approach, which focuses on the personality structure and the human capital of business founders, allows prediction of entrepreneurial success. A unique data set is used consisting of 414 persons whose personal characteristics were analyzed by different methods, namely an one-day assessment center (AC) and a standardized questionnaire, before ...

    In: Kyklos 61 (2008), 2, S. 189-214 | Marco Caliendo, Alexander S. Kritikos
  • Refereed essays Web of Science

    Downsizing in the German Chemical Manufacturing Industry during the 1990s

    The German chemical manufacturing industry experienced major downsizing between 1992 and 2004, with the average size of firms shrinking by nearly half during this period. This study uses modern frontier efficiency analysis to investigate the determinants of this downsizing. Based on reliable census data, the results of this analysis suggest that firms were not primarily concerned with improving technical ...

    In: Small Business Economics 34 (2010), 4, S. 413-431 | Oleg Badunenko
  • Refereed essays Web of Science

    The Impact of Income Taxation on the Ratio between Reservation and Market Wages and the Incentives for Labour Supply

    This article extends previous research about the determinants of reservation wages by analysing the effect of progressive income taxation on the ratio between reservation and net market wages. Based on micro data for Germany Socio-Economic-Panel (SOEP) we show that joint income taxation in Germany which discriminates by marital status, has a strong and highly significant impact on the reservation/market ...

    In: Applied Economics Letters 16 (2009), 9, S. 877-883 | Marco Caliendo, Ludovica Gambaro, Peter Haan
  • Refereed essays Web of Science

    Risk Attitudes of Nascent Entrepreneurs

    The influence of risk aversion on the decision to become self-employed is a much discussed topic in the entrepreneurial literature. Conventional wisdom asserts that being an entrepreneur means making risky decisions; hence more risk-averse individuals are less likely to become entrepreneurs. In contrast to previous research, we are able to examine empirically whether the decision of starting a business ...

    In: Small Business Economics 32 (2009), 2, S. 153-167 | Marco Caliendo, Frank M. Fossen, Alexander S. Kritikos
  • Refereed essays Web of Science

    Income Taxes and Entrepreneurial Choice: Empirical Evidence from Germany

    Does tax policy affect entrepreneurial choice? We use two tax reforms in Germany as "natural experiments". These reforms reduced the marginal income tax rate for entrepreneurs with income above a certain threshold, with the exception of freelance professionals. The two conditions for belonging to the treatment group allow us to apply a "difference-in-difference-in-difference" identification strategy ...

    In: Empirical Economics 36 (2009), 3, S. 487-513 | Frank M. Fossen, Viktor Steiner
  • Refereed essays Web of Science

    Evaluating the German Mini-Job Reform Using a Natural Experiment

    Increasing work incentives for people with low income is a common topic in the policy debate across European countries. The 'Mini-Job' reform in Germany had a similar motivation. We carry out an ex-post evaluation to identify the short-run effects of this reform. Our identification strategy uses an exogenous variation in the interview months in the Socio-Economic Panel Study (SOEP), which allows us ...

    In: Applied Economics 42 (2010), 19, S. 2475-2489 | Marco Caliendo, Katharina Wrohlich
  • Refereed essays Web of Science

    Turning Unemployment into Self-Employment: Effectiveness of Two Start-up Programmes

    Turning unemployment into self-employment has become a major focus of German active labour market policy (ALMP) in recent years. If effective, this would not only reduce Germany's persistently high unemployment rate, but also increase its notoriously low self-employment rate. Empirical evidence on the effectiveness of such programmes is scarce. We evaluate the effectiveness of two start-up programmes ...

    In: Oxford Bulletin of Economics and Statistics 70 (2008), 3, S. 347-373 | Hans J. Baumgartner, Marco Caliendo
  • Refereed essays Web of Science

    Introducing Family Tax Splitting in Germany: How Would It Affect the Income Distribution, Work Incentives and Household Welfare?

    We analyze the effects of three different proposals to introduce a family tax-splitting system in Germany. The empirical analysis is based on a behavioral microsimulation model, which integrates an empirical household labor-supply model into a detailed tax-benefit model. Our results show that, under each reform, the lion's share of the reduction in taxes would accrue to families in the upper part of ...

    In: Finanzarchiv 64 (2008), 1, S. 115-142 | Viktor Steiner, Katharina Wrohlich
  • Refereed essays Web of Science

    The Parental Leave Benefit Reform in Germany: Costs and Labour Market Outcomes of Moving towards the Nordic Model

    Germany is known to have one of the lowest fertility rates among Western European countries and also relatively low employment rates of mothers with young children. Although these trends have been observed during the last decades, the German public has only recently begun discussing these issues. In order to reverse these trends, the German government recently passed a reform of the parental leave ...

    In: Population Research and Policy Review 27 (2008), 5, S. 575-591 | C. Katharina Spieß, Katharina Wrohlich
  • Refereed essays Web of Science

    A Drive up the Capital Coast? Contributions to Post-reform Growth across Chinese Provinces

    We use nonparametric production-frontier methods to decompose the growth of labor productivity of Chinese provinces in the post-reform period. These techniques, combined with kernel density estimates, allow us to decompose the shift in the distribution of labor productivity without the need for many assumptions common in the empirical growth literature. We find that (1) the distribution of output per ...

    In: Journal of Macroeconomics 29 (2007), 3, S. 569-594 | Daniel J. Henderson, Kiril Tochkov, Oleg Badunenko
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    Banking Competition, Good or Bad? The Case of Promoting Micro and Small Enterprise Finance in Kazakhstan

    Competition is claimed to be beneficial in development projects promoting micro and small enterprise finance although there are still doubts as to whether these loans can be developed into a profitable business. Our research sheds new light on the question of how many MSE banking units should optimally be created and supported in a certain region. We employ a unique data set from the European Bank ...

    In: Applied Economics 42 (2010), 6, S.701-716 | Dorothea Schäfer, Boriss Siliverstovs, Eva Terberger
  • Refereed essays Web of Science

    Does Corporate Governance Determine Dividend Payouts in Poland?

    This study examines the relation between corporate governance practices measured by the Transparency Disclosure Index (TDI) and dividend payouts in Poland. Our empirical approach lies in constructing measures of the quality of the corporate governance in 110 non-financial companies listed on the Warsaw Stock Exchange between 1998 and 2004.We find evidence that an increase in the TDI or its sub-indices ...

    In: Post-Communist Economies 20 (2008), 2, S. 203-218 | Oskar Kowalewski, Ivan Stetsyuk, Oleksandr Talavera
  • Refereed essays Web of Science

    Effects of Foreign Presence in a Transition Economy

    We investigate the effects of regional and industrywide foreign presence and foreign direct investment (FDI) on the export volumes of Ukrainian manufacturing firms using unpublished panel data from 1996-2000. Foreign presence through FDI may have negative competition effects on domestic firms' performance; at the same time, domestic firms' productivity may be increased by technology transfer or training ...

    In: Emerging Markets, Finance & Trade 44 (2008), 5, S. 82-98 | Stefan Lutz, Oleksandr Talavera, Sang-Min Park
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    The Effects of Uncertainty on the Leverage of Non-Financial Firms

    This paper investigates the link between the optimal level of nonfinancial firms' short-term leverage and macroeconomic and idiosyncratic sources of uncertainty. We develop a structural model of a firm's value maximization problem that predicts a negative relationship between uncertainty and optimal levels of borrowing. This proposition is tested using a panel of nonfinancial U.S. firms drawn from ...

    In: Economic Inquiry 47 (2009), 2, S. 216-225 | Christopher F. Baum, Andreas Stephan, Oleksandr Talavera
  • Refereed essays Web of Science

    Uncertainty Determinants of Corporate Liquidity

    This paper investigates the link between the optimal level of non-financial firms' liquid assets and uncertainty. We develop a partial equilibrium model of precautionary demand for liquid assets showing that firms alter their liquidity ratio in response to changes in either macroeconomic or idiosyneratic uncertainty. We test this hypothesis using a panel of non-financial US firms drawn from the COMPUSTAT ...

    In: Economic Modelling 25 (2008), 5, S. 833-849 | Christopher F. Baum, Mustafa Caglayan, Andreas Stephan, Oleksandr Talavera
  • Refereed essays Web of Science

    Uncertainty Determinants of Firm Investment

    We investigate the impact of measures of uncertainty on firms' capital investment behavior using a panel of U.S. firms. Increases in firm-specific and CAPM-based measures have a significant negative effect on investment spending, while market-based uncertainty has a positive impact

    In: Economics Letters 98 (2008), 3, S. 282-287 | Christopher F. Baum, Mustafa Caglayan, Oleksandr Talavera
  • Refereed essays Web of Science

    Economic Growth of Agglomerations and Geographic Concentration of Industries: Evidence for West Germany

    During the two decades between 1980 and 2000, there was no clear overall trend of economic convergence or divergence among West German regions. However, a number of regions that were already rich - generally large agglomerations - had succeeded in further distancing themselves from the rest. At the same time, knowledge-intensive services are identified as industries whose geographical concentration ...

    In: Regional Studies 42 (2008), 3, S. 413-421 | Kurt Geppert, Martin Gornig, Axel Werwatz
  • Refereed essays Web of Science

    Firm Wage Differentiation in Eastern Germany: A Non-parametric Analysis of the Wage Spread

    In Eastern Germany, wage differentiation between firms has clearly grown, parallel to individual wage differentials. Nevertheless, the wage spread between firms is still much less than in Western Germany. In this paper, a non-parametric decomposition is used to analyze the difference between the wages spread in the two parts of Germany. Only part of the difference can be explained by different economic ...

    In: Economics of Transition 16 (2008), 2, S. 273-292 | Bernd Görzig, Martin Gornig, Axel Werwatz
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    The Influence of Environment and Personality on the Affective and Cognitive Component of Subjective Well-Being

    Subjective well-being (SWB) has two components: affective well-being (AWB) and cognitive well-being (CWB). The present study demonstrated that AWB and CWB have are influenced by different factors in a nationally representative sample in Germany (N = 1053). Neuroticism was a stronger predictor of AWB than CWB. Unemployment and regional differences between the East and West of Germany were stronger predictors ...

    In: Social Indicators Research 89 (2008), 1, S. 41-60 | Ulrich Schimmack, Jürgen Schupp, Gert G. Wagner
  • Refereed essays Web of Science

    Subjective Well-being among Young People in Transition to Adulthood

    This study used a nationally representative sample of young people in Germany from the German Socio-Economic Panel to examine how demographic and socio-economic characteristics of the young persons and their parents, personality traits of the young persons, quality and quantity of relationships, the parent's level of life satisfaction, and other measures of satisfaction for the young person are related ...

    In: Social Indicators Research 87 (2008), 1, S. 83-109 | Eileen Trzcinski, Elke Holst
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