Theory suggests that corporate and sovereign bonds are fundamentally different, also because sovereign debt has no bankruptcy mechanism and is hard to enforce. We show empirically that the two assets are more similar than you think, at least when it comes to high-yield bonds over the past 20 years. We use rich new data to compare high-yield US corporate (“junk”) bonds to high-yield emerging market ...
The Russian invasion of Ukraine in 2022 triggered an energy crisis in Germany, with consumer energy prices skyrocketing over the course of the year. Due to concerns about gas shortages, various programs aimed at reducing consumption were set up and the German Federal Government and numerous organizations appealed to consumers to save as much energy as possible. This Weekly Report investigates how much ...
This paper investigates the mental health consequences of spousal death and the role of survivor benefits in mitigating these effects. Using Dutch administrative data and a staggered difference-in-differences, we first document a significant increase in the consumption of benzodiazepines - a proxy for deteriorating mental health - following widowhood (up to +3 percentage points, or +30%, in the...
The Covid-19 pandemic caused a global economic crisis, leading governments to provide substantial State Aid to support firms. This paper examines the effectiveness of Covid-related financial support in Spain and Italy, focusing on its impact on firm recovery. Using a difference-in-differences (DiD) approach combined with propensity score weighting, it compares outcomes of similar firms receiving aid ...
Martin Kittel, Research Associate in the Energy, Transportation, Environment Department, successfully defended his dissertation entitled “Five Essays in Energy System Analysis - Exploring the Dunkelflaute and Unintended Storage Cycling” on January 27, 2025. The scientific reviewers were Tom Brown, Claudia Kemfert, and Wolf-Peter Schill. Congratulations!
Gender inequality remains a pressing issue in our society. Women are underrepresented in many decision-making positions and the gender pay gap remains at 16%. Whether or how language contributes to forming and transporting gender stereotypes has sparked intense scientific and public debate. In German, masculine role nouns are still often used in a generic sense to address people of unknown gender ...
