Regulatory bank levies set incentives for banks to reduce leverage. At the same time, corporate income taxation makes funding through debt more attractive. In this paper, we explore how regulatory levies affect bank capital structure, depending on corporate income taxation. Based on bank balance sheet data from 2006 to 2014 for a panel of EU-banks, our analysis yields three main results: The introduction ...
The comparison of long-term care (LTC) expenditures is a difficult task. National LTC systems differ widely in terms of eligibility criteria, level of benefits, institutional variety and regional heterogeneity. In this commentary I will first give some general remarks on cross country comparisons. Then I discuss the role of the informal sector which is the most important pillar of all LTC systems. ...
Opinions regarding capital account openness have been undergoing changes. On the one hand, financial liberalization and integration are viewed as sources of economic growth and prosperity due to a better allocation of capital to productive uses. In addition, free capital mobility and access to foreign capital are considered to be important facilitators of investment as well as cross-border risk sharing. ...
To cushion the economic effects of the coronavirus pandemic, central banks have taken far-reaching monetary policy measures. The US Federal Reserve has lowered its interest rates and, like the European Central Bank, has expanded its bond purchase programs. However, it is questionable whether these measures are having the desired effect of calming the markets and supporting the real economy. It is true ...
Der Euroraum hat eine einheitliche Währungsbehörde, die die Geldschöpfung regelt, aber die einzelnen Eurostaaten begeben jeweils ihre eigenen Staatschulden. Folglich ist auch die Sicherheit der Staatsanleihen sehr unterschiedlich. Vor diesem Hintergrund wird analysiert: i) die Wechselwirkungen zwischen dem finanziellen und dem realer Sektor; ii) die Rolle von Staatsanleihen als Liquiditätsinstrumente; ...
Der Artikel untersucht die deutsche Schuldenbremse von einem technischen Standpunkt aus. Mit der Ausgestaltung der Schuldenbremse anhand der EU-Methode sollte eine adäquate Aufteilung zwischen der konjunkturellen und der strukturellen Komponente des Budgetsaldos gelingen und dabei antizyklische Fiskalpolitik möglich sein. Aktuelle Studien zeigen jedoch, dass die Mechanik der Schuldenbremse eher pro-zyklischer ...
The project examines the transmission channels between public investment and private investment activity in Germany, estimating the aggregate relationship with econometric models, focusing on the specific effects of individual investment categories (e.g., R & D investment) and areas of responsibility (e.g., Defense, Education, Environment). In view of possible barriers to investment, another...
A timely and incisive look at austerity measures that succeed—and those that don’t. Fiscal austerity is hugely controversial. Opponents argue that it can trigger downward growth spirals and become self-defeating. Supporters argue that budget deficits have to be tackled aggressively at all times and at all costs. In this masterful book, three of today’s leading experts –...
Europe and Germany are being hit by a historic shock due to the Covid-19 pandemic. Economic activity is going to shrink substantially this year, with lockdown measures having led to sharp contractions in economic output, household spending, corporate investment and international trade. Will we see a strong and sustainable recovery? Investment is central to reboot economic activity and to...
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