-
DIW Economic Bulletin 5 / 2014
Member states of the euro area have been struggling with the legacies of the severe financial and economic crisis for four years now. But debt ratios are still rising. Negative primary balances, low growth, and low inflation do not allow for a recovery similar to the one in the US after the Second World War. Between 1946 and 1953, the US was able to almost halve its debt with no haircuts. The crisis ...
2014| Marius Kokert, Dorothea Schäfer, Andreas Stephan
-
DIW Economic Bulletin 5 / 2014
2014
-
Refereed essays Web of Science
In a wage bargaining model, a stronger earnings relationship of unemployment benefits may reduce wages. Therefore, the benefit structure significantly influences profits and trade union utility, raising the question as to how the benefit structure is determined in the political process. We consider a government that chooses the earnings relationship in order to maximize its political support. Our model ...
In:
Public Choice
145 (2010), 1-2, S. 137-163
| Laszlo Goerke, Markus Pannenberg, Heinrich W. Ursprung
-
Refereed essays Web of Science
When there are more than two parties, policy outcomes are typically the result of a bargaining process. We investigate whether changes in political power for various parties have an effect on tax policies. We use an instrumental variable approach where close elections provide the exogenous variation in our variable of interest: voting power. In order to isolate close elections in a proportional election ...
In:
European Economic Review
80 (2015), S. 310-328
| Ronny Freier, Christian Odendahl
-
Diskussionspapiere 1333 / 2013
This paper studies the impact of credit rating agency (CRA) announcements on the value of the Euro and the yields of French, Italian, German and Spanish long-term sovereign bonds during the culmination of the Eurozone debt crisis in 2011-2012. The employed GARCH models show that CRA downgrade announcements negatively affected the value of the Euro currency and also increased its volatility. Downgrading ...
2013| Christopher F. Baum, Margarita Karpava, Dorothea Schäfer, Andreas Stephan
-
Externe Monographien
We analyze empirically the optimal design of social insurance and assistance programs when families obtain insurance by making labor supply choices for both spouses. For this purpose, we specify a structural life-cycle model of the labor supply and savings decisions of singles and married couples. Partial insurance against wage and employment shocks is provided by social programs, savings and the labor ...
Berlin:
Freie Univ. Berlin, FB Wirtschaftswiss.,
2015,
54 S.
(Discussion Paper / School of Business & Economics ; 2015,17)
| Peter Haan, Victoria Prowse
-
Diskussionspapiere 1489 / 2015
This paper exploits discontinuities induced by earnings caps for social security contributions (SSC) in Germany to analyse the effect of SSC on gross labour earnings. Empirical evidence is based on two complementary approaches utilising two administrative data sets. First, employment responses to SSC at the intensive margin are identified by a modified bunching approach that is applied to kinks in ...
2015| Michael Neumann
-
Externe Monographien
We analyze empirically the optimal design of social insurance and assistance programs when families obtain insurance by making labor supply choices for both spouses. For this purpose, we specify a structural life-cycle model of the labor supply and savings decisions of singles and married couples. Partial insurance against wage and employment shocks isprovided by social programs, savings and the labor ...
Bonn:
IZA,
2015,
54 S.
(Discussion Paper Series / Forschungsinstitut zur Zukunft der Arbeit ; 8980)
| Peter Haan, Victoria Prowse
-
Diskussionspapiere 1468 / 2015
We analyze empirically the optimal design of social insurance and assistance programs when families obtain insurance by making labor supply choices for both spouses. For this purpose, we specify a structural life-cycle model of the labor supply and savings decisions of singles and married couples. Partial insurance against wage and employment shocks is provided by social programs, savings and the labor ...
2015| Peter Haan, Victoria Prowse
-
DIW Economic Bulletin 13 / 2015
The European Central Bank (ECB) decided at its Council meeting in January to implement a comprehensive program to purchase bonds, including euro area government bonds. The purchases are intended to anchor the rate of inflation and inflation expectations at below but close to two percent again. Given the lack of experience with this unconventional monetary policy instrument, the ECB is venturing into ...
2015| Kerstin Bernoth, Philipp König, Carolin Raab, Marcel Fratzscher