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Diskussionspapiere 2078 / 2024
The low degree of stock market participation (SMP) is one of the big puzzles in finance. Numerous determinants have been proposed. We put these determinants into a structure that is derived from a standard static portfolio model. Then we discuss arguments put forward regarding specific SMP determinants and the empirical evidence that has been provided. The focus of our survey is on the identification ...
2024| Lukas Menkhoff, Jannis Westermann
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Diskussionspapiere 2120 / 2025
This paper provides causal evidence on the effect of credit crunches on political polarisation. Combining data on bank-firm connections and electoral outcomes at the city-level during the 2008-2014 Spanish financial crisis, I construct an instrument for unemployment based on the city-level exposure to (foreign) weak banks. I find that a 10% increase in (instrumented) local unemployment rates leads ...
2025| Pia Hüttl
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DIW Weekly Report 9 / 2025
The price of cryptocurrency Bitcoin has risen sharply over the past ten years, with many investors adding Bitcoin to their portfolios, benefitting from price increases and diversifying their investments. But is Bitcoin suitable for this purpose? This Weekly Report examines the extent to which Bitcoin, like gold, can contribute to the diversification of an investment portfolio. To achieve this, we have ...
2025| Alexander Kriwoluzky, Christoph Schneider
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Externe Monographien
Chapter 1: In this paper, I analyze the interplay between (European) monetary policy and energy prices. Employing a Bayesian proxy structural vector autoregressive model, I establish that the ECB’s decisions have material effects on global and local energy prices. This starkly contrasts the public communication and internal assumptions of the ECB. Through Lucas-critique robust counterfactuals, I demonstrate ...
Berlin:
Freie Universität Berlin,
2024,
XXVII; 267 S.
| Ben Schumann
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Diskussionspapiere 2100 / 2024
Using a data-driven approach to identify structural vector autoregressive models, we examine key factors influencing the US dollar exchange rate across eight advanced economies from 1980 to 2022. We find that shocks to inflation expectations, which are closely tied to unfunded government transfer payments, have a pronounced effect on the US dollar’s value. This underscores the fiscal dimension of exchange ...
2024| Kerstin Bernoth, Helmut Herwartz, Lasse Trienens
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Externe Monographien
Stock market participation among working household heads jumped upwards in 2020-in Germany by about 25%. A major cause is the required use of work from home (WfH). We show this by repeating a benchmark study and adding WfH to the explanatory variables. Moreover, we implement an instrumental variables estimation based on industry-specific levels of WfH-capacity. The transmission channels seem to work ...
SSRN,
2024,
48 S.
(SSRN Papers)
| Lorenz Meister, Lukas Menkhoff, Carsten Schröder
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Refereed essays Web of Science
Navigating the transition toward a zero-emission and just future amidst multiple crises requires a nuanced understanding of potential hindrances to investments and energy transitions. As current approaches hardly consider the big picture of interacting crises, this study offers a framework to analyze the dynamics and risk channels between 1) the climate crisis, 2) financial (in)stability, 3) the geopolitical ...
In:
Applied Energy
361 (2024), 122885, 11 S.
| Franziska M. Hoffart, Paola D'Orazio, Franziska Holz, Claudia Kemfert
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Refereed essays Web of Science
Financing entrepreneurship spurs innovation and economic growth. Digital financial platforms that crowdfund equity for entrepreneurs have emerged globally, yet they remain poorly understood. We model equity crowdfunding in terms of the relationship between the number of investors and the amount of money raised per pitch. We examine heterogeneity in the average amount raised per pitch that is associated ...
In:
PloS one
19 (2024), 1, e0293292, 17 S.
| Saul Estrin, Susanna Khavul, Alexander S. Kritikos, Jonas Löher
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DIW Weekly Report 15 / 2024
German companies view high and uncertain electricity prices a major challenge. A Renewable Energy Pool (RE-Pool), wherein the favorable conditions of competitive tenders for new wind and solar power projects are passed on to electricity consumers, could hedge such price risks. Consumers’ electricity prices are thus hedged for the share of their consumption that corresponds to the RE-Pool’s generation ...
2024| Karsten Neuhoff, Mats Kröger, Leon Stolle
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Externe Monographien
This briefing report evaluates the ECB's monetary policy in a context of declining inflation and stagnant growth. Inflation risks have been averted and, after a period of relatively tight policy in 2024, benchmark comparisons indicate that the current interest rate is consistent with the ECB's mandate. The prevailing economic and inflation outlook supports further rate cuts. However, the high level ...
Bruxelles:
European Parliament,
2025,
27 S.
(Monetary Dialogue Papers ; March 2025)
| Kerstin Bernoth