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DIW Discussion Papers 2027 / 2022
We examine the additivity of stock-market expectations over different time intervals. When asked about a ten-year interval, survey respondents expect a stock-price change that is not equal to, but closer to zero than, the sum of their expectations over two shorter time intervals that cover the same ten years. Such sub-additivity is irrational in that it cannot stem from aggregating short-term expectations. ...
2022| Peter Haan, Chen Sun, Uwe Sunde, Georg Weizsäcker
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DIW Discussion Papers 2026 / 2022
Rent control is a highly debated social policy that has been omnipresent since World War I. Since the 2010s, it is experiencing a true renaissance, for many cities and countries facing chronic housing shortages are desperately looking for solution, directing their attention to controling housing rents and other restrictive policies. Is rent control useful or does it create more damage than utility? ...
2022| Konstantin A. Kholodilin
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DIW Discussion Papers 2025 / 2022
The massive expansion of wind power and solar PV is the primary strategy to reduce greenhouse gas emissions in many countries. Due to their variable generation profiles, power sector flexibility needs to increase. Geographical balancing enabled by electricity grids and temporal flexibility enabled by electricity storage are important options for flexibility. As they interact with each other, we investigate ...
2022| Alexander Roth, Wolf-Peter Schill
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DIW Discussion Papers 2024 / 2022
I quantify the perceived changes in hourly wage rates associated with working different hours on the same job for a representative sample of female workers. While part-time working women expect significant hourly wage gains from switching to full-time work - 7% on average - full-time workers expect no effect on current wages when switching to part-time, on average. Perceived pecuniary losses from part-time ...
2022| Annekatrin Schrenker
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DIW Discussion Papers 2023 / 2022
We link investor ownership to profit loads on rival firms by the managers of a firm. We propose a theory model in which we distinguish between passive and active investors’ holdings, where passive investors are relatively more diversified. We find that if passive investors become relatively bigger, then common ownership incentives increase. We show that these higher incentives, in turn, are linked ...
2022| Albert Banal-Estanol, Jo Seldeslachts, Xavier Vives
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DIW Discussion Papers 2022 / 2022
This paper investigates the dynamic effects of tax changes on the cross-sectional distribution of disposable income in the United States using a narrative identification approach. I distinguish between changes in personal and corporate income taxes and quantify the distributional effects on families and business owners. I document that tax changes affect incomes along the distribution differently and ...
2022| Stephanie Ettmeier
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DIW Discussion Papers 2021 / 2022
This paper examines the impact of coalitions on the economic costs of the 2012 Iran and 2014 Russia sanctions. By estimating and simulating a quantitative general equilibrium trade model under different coalition setups, we (i) dissect welfare losses for sanctions senders and target; (ii) compare prospective coalition partners and; (iii) provide bounds for the sanctions potential — the maximum welfare ...
2022| Sonali Chowdhry, Julian Hinz, Katrin Kamin, Joschka Wanner
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DIW Discussion Papers 2020 / 2022
How do commodity price movements affect sovereign default risk over the long-run? Using a novel dataset covering 41 countries and 42 raw commodities, we take a comprehensive long-run view to shed light on this so far understudied relationship between commodity risk and sovereign risk across 150 years. We create a novel country-specific commodity price index that allows us to take advantage of countries’ ...
2022| Angélica Domínguez-Cardoza, Adelina Garamow, Josefin Meyer
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DIW Discussion Papers 2019 / 2022
This paper explores the effect of a firm’s reputation of being a green bond issuer on its financing costs. Using a sample of 73 listed Swedish real estate companies issuing in total about 1500 bonds over the period from 2011 till 2021, difference-in-difference analyses and instrumental variable estimations are applied to identify the causal impact of frequent green vis-à-vis frequent non-green bond ...
2022| Aleksandar Petreski, Dorothea Schäfer, Andreas Stephan
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DIW Discussion Papers 2018 / 2022
In response to strong revenue and income losses that a large share of the self-employed faced during the COVID-19 pandemic, the German federal government introduced a €50bn emergency aid program. Based on real-time online-survey data comprising more than 20,000 observations, we analyze the impact of this program on the subjective survival probability. In particular, we investigate how the digitalization ...
2022| Irene Bertschek, Joern Block, Alexander S. Kritikos, Caroline Stiel
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DIW Discussion Papers 2017 / 2022
The advent of cloud computing promises to improve the way firms utilize IT solutions. Firms are expected to replace large and inflexible fixed-cost investments in IT with more targeted variable spending in cloud solutions. In addition, cloud usage is expected to increase the productivity of firms, as it allows them to quickly customize the IT they require to their specific needs. We assess these assertions ...
2022| Tomaso Duso, Alexander Schiersch
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DIW Discussion Papers 2016 / 2022
I use the universe of tax returns in Germany and a regression kink design to estimate the impact of the benefit amount available to high-earning women after their first childbirth on subsequent within-couple earnings inequality. Lower benefit amounts result in a reduced earnings gap that persists beyond the benefit period for at least nine years after the birth. The longer-term impacts are driven by ...
2022| Sevrin Waights
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DIW Discussion Papers 2015 / 2022
Common ownership - when an investor holds shares in two or more companies - has recently attracted significant attention from policy-makers and researchers, studying mainly US firms. European firms, however, are different as top investors with large stakes, like governments, founding families and foundations are much more prevalent. This paper takes a well-known common ownership with micro-economic ...
2022| Nuria Boot, Jo Seldeslachts, Albert Banal Estanol
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DIW Discussion Papers 2014 / 2022
The purpose of this study is to identify whether an innovative company’s likelihood of facing financial constraints is different when the company possesses a public procurement contract (PP). Theory suggests that the treatment effects of public procurement, particularly when mediated by the demand-pull effect, may lower a company’s funding constraints for innovation. We test this theory and apply extended ...
2022| Dorothea Schäfer, Andreas Stephan, Sören Fuhrmeister
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DIW Discussion Papers 2013 / 2022
We assess the incorporation of wind or solar resource quality into renewable auction design as a means to geographically diversify renewable energy production and to reduce costs to consumers by reducing scarcity rents at sites with high resource quality. With a stylized auction model, we model the trade-off between production costs and consumer costs. After exploring the influence of the heterogeneity ...
2022| Mats Kröger, Karsten Neuhoff, Jörn C. Richstein
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DIW Discussion Papers 2012 / 2022
Does central bank collateral policy contribute to financial market integration? We address this question by exploiting that, in 2007, the European Central Bank replaced national collateral frameworks by a single list. Under the single list regime, euro area banks could pledge all euro area bank loans as collateral, not only domestic loans as before the framework change. Banks holding a large share ...
2022| Pia Hüttl, Matthias Kaldorf
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DIW Discussion Papers 2011 / 2022
Although plutonium has been studied by different disciplines (such as technology and innovation studies, political sciences) since its discovery, back in 1940 at the University of California (Berkeley), the resource and environmental economic literature is still relatively scarce; neither does the energy economic literature on nuclear power consider plutonium specifically, e.g. Davis (2012) or Lévêque ...
2022| Christian von Hirschhausen
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DIW Discussion Papers 2010 / 2022
Natural gas prices in Germany saw a strong increase at the end of 2021, subsequently worsening with the start of the war in Ukraine in February 2022, raising concerns about the distributional consequences. Our study shows that low-income households are affected the most by the natural gas price increase. Low-income households pay at the median 11.70 percent of their equivalent income on gas bills, ...
2022| Mats Kröger, Maximilian Longmuir, Karsten Neuhoff, Franziska Schütze
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DIW Discussion Papers 2009 / 2022
We use the prolonged Greek crisis as a case study to understand how a lasting economic shock affects the innovation strategies of firms in economies with moderate innovation activities. Adopting the 3-stage CDM model, we explore the link between R&D, innovation, and productivity for different size groups of Greek manufacturing firms during the prolonged crisis. At the first stage, we find that the ...
2022| Ioannis Giotopoulos, Alexander S. Kritikos, Aggelos Tsakanikas
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DIW Discussion Papers 2008 / 2022
This study investigates the effects of short-lived rent control regulations introduced in Catalonia in September 2020 and revoked in March 2022. Using the microdata of the largest Spanish housing advertisement portal idealista between January 2017 and May 2022, we analyze the dynamics of prices and supply for dwellings offered for rent and for sale. We also examine separately the rental and sales markets. ...
2022| Konstantin A. Kholodilin, Fernando A. López, David Rey Blanco, Pelayo González Arbués