DIW Economic Bulletin

Ganzes Heft

Transport Infrastructure: Higher Investments Needed to Preserve Assets

A quantitatively and qualitatively efficient transport infrastructure is a fundamental requirement for the success and prosperity of the German economy, with its high degree of labor division, its many exchange relationships, and its central European location. The transport infrastructure represents a considerable economic capital stock with gross fixed assets of 778 billion euros. This corresponds ...

The Quality of Early Education and Care Must Be Improved: Five Questions to C. Katharina Spieß

Investments in Education: The Early Years Offer Great Potential

Investments in education are of great importance for the competitiveness of the German economy. In particular, early childhood education programs promise high returns - because children can benefit from them even years later and find it easier to acquire new skills. These are the results of research in the field of the economics of education in recent years, at least when high quality programs are ...

Ganzes Heft

European Electricity Generation Post-2020: Renewable Energy Not To Be Underestimated

In its Green Paper on a 2030 framework for climate and energy policies, the European Commission calls for a framework for the future development of environment and energy policy beyond 2020. However, much like the Energy Roadmap 2050 adopted by the Commission in December 2011, the Green Paper is based on scenario assumptions that are, to a great extent, not up-to-date. The European Commission would ...

Investment in Energy Transition Has Unequivocally Positive Impact on Economy: Six Questions to Claudia Kemfert

Energy Transition Calls for High Investment

Achieving the objectives of the German governments 2010 Energy Concept and the accelerated phase-out of nuclear energy will require significant investment in restructuring energy supply. In particular, this includes investment in installations for the use of renewable energy sources in the power and heating sector, as well as in the infrastructure, such as power grids. In addition, substantial investment ...

Ganzes Heft

Automobility in Flux: More Women and Older Drivers at the Wheel

Having barely registered an increase at the beginning of the new millennium, during the economic upturn after 2009, there was significant growth in the mileage by registered motor vehicles in Germany, both in the case of utility vehicles and automobiles. Overall, in 2011, automobiles covered a higher mileage than ever before. Despite more efficient engines, this resulted in fuel consumption stagnating ...

Germany's Big Weakness is a Lack of Investment: Seven Questions to Marcel Fratzscher

More Growth through Higher Investment

While many countries in the euro area are deep in recession due to a debt and structural crisis, the German economy appears to have excelled compared to many other euro area countries. Unemployment has fallen to the lowest level since German reunification, economic output has grown by over eight percent since 2009, and public budgets have been consolidated, generating a surplus in 2012. But this is ...

Germany Must Invest More in Its Future

Shortly before the parliamentary election in 2013, Germany is riding on a wave of euphoria: hardly any other euro country has weathered the financial and debt crisis so well. Since 2009, GDP has grown by over eight percent and 1.2 million new jobs have been created. Public finances were consolidated and, in 2012, there was a fiscal surplus of 0.2 percent of GDP. An impressive financial position indeed ...

Ganzes Heft

Corporate Taxation: High Profits, Moderate Tax Revenue

If the revenue from corporate taxation in Germany is divided by the corporate income figures from national accounts, companies' average tax burden for the period 2001 to 2008 is 21 percent. This rate is considerably lower than the statutory tax rates for this period. The reason for this is that tax-reported corporate income was well below macroeconomic corporate income. This taxation gap was something ...

Lack of Training for Young People Continues to be a Cause for Concern: Seven Questions to Karl Brenke

Sharp Drop in Youth Unemployment in Germany but Regional Differences Remain

Youth unemployment in Germany has fallen to its lowest level since reunification. Between 2005 and 2012, unemployment among under 25 year olds has more than halved. By international standards, Germany is in an exceptionally strong position. Nowhere in Europe is youth unemployment lower. However, this is not so much due to structural improvements or positive labor market growth than to demographic change: ...

Ganzes Heft

Real Estate Booms and Price Bubbles: What Can Germany Learn from Other Countries?

When speculative price bubbles on real estate markets burst, the effects for the real economy are often devastating taking the form of substantial losses in production and employment. This paper discusses the degree to which institutional frameworks can prevent speculative bubbles from emerging and expanding. Comparing experiences in different countries indicates that, in Germany, institutional regulations ...

Separated Banking System Not Enough: Seven Questions to Dorothea Schäfer