This paper investigates the effect of insolvency regulation reforms on cross-border debt and equity investments at aggregate and sectoral levels. Using disaggregated data from the ECB’s Securities Holdings Statistics by Sector (SHSS) database and the OECD indicators on efficiency of insolvency regulations, we find that investors increase their debt and equity holdings in the countries that undertook ...
This paper studies if workers infer from correlation about causal effects in the context of the part-time wage penalty. Differences in hourly pay between full-time and part-time workers are strongly driven by worker selection and systematic sorting. Ignoring these selection effects can lead to biased expectations about the consequences of working part-time on wages (’selection neglect bias’). Based ...
Following the construction boom of recent years in Germany, inflation and supply bottlenecks hit the industry hard in 2022. While nominal construction volume increased by nearly 14 percent, it decreased by two percent when adjusted for inflation. Residential construction, which is urgently needed, was particularly affected. In 2023 and 2024, it is expected that investors will show restraint and that ...
We propose a framework to unravel the hurdles and opportunities for the renewable energy transition in con-temporary crises to examine the interconnections be-tween energy transition, climate risks, and geopolitical issues. The study focuses on Germany and emphasizes that neglecting climate-related risks leads to financial in-stability and hampers the energy transition. If Paris-aligned energy and ...
This paper sheds new light on the role of communication for cartel formation. Using machine learning to evaluate free-form chat communication among firms in a laboratory experiment, we identify typical communication patterns for both explicit cartel formation and indirect attempts to collude tacitly. We document that firms are less likely to communicate explicitly about price fixing and more likely ...
Energy system models are used for policy decisions and technology designs. If not carefully used, models give implausible outputs and mislead decision-making. One implausible effect is “unintended storage cycling”, which is observable as simultaneous storage charging and discharging. Methods to remove such misleading effects exist, but are computationally inefficient and sometimes ineffective. Through ...