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DIW Discussion Papers 745 / 2007
In a series of experimental games, each of two players may choose between remuneration based on either private or team effort. Although at least one of the players has the subgame perfect equilibrium strategy to choose remuneration based on private effort, we frequently observe team remuneration chosen by both players. Team remuneration allows for high payoff for each player for cooperation, but at ...
2007| Claudia Keser, Claude Montmarquette
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DIW Discussion Papers 744 / 2007
"Marginal Employment", i.e. employment at low working hours and earnings not covered by social security, has been gaining importance in the German economy over the past decade. Using a large newly available panel data set and statistical matching techniques, we analyse the effects of marginal employment on future individual outcome variables such as unemployment, regular employment and earnings. In ...
2007| Ronny Freier, Viktor Steiner
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DIW Discussion Papers 743 / 2007
Innovation is at the basis of economic development and as such, it is instrumental for developing countries. We review the literature on innovation from the perspectives of four select branches of economics to build a conceptual framework of innovation applicable to developing countries. The conceptual framework includes insights from the surveyed literature and identifies areas of further research. ...
2007| Andréanne Léger, Sushmita Swaminathan
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DIW Discussion Papers 742 / 2007
Many studies analyzed in depth how aging affects aggregate economic performance. But analyses of these effects on the employment structure are scarce and they do not consider that consumption patterns, the supply of goods and services, and also sectoral labor productivity are all likely to adjust to aging and will change. Hence, regression analysis of sectoral employment shares is proposed that controls ...
2007| Ulrich Thießen
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DIW Discussion Papers 741 / 2007
The neoclassical growth model predicts convergence of productivity or per capita output levels across regions. If participation in the labor force is constant, convergence of per capita income is implied. We investigate this hypothesis for the Iranian economy using data on demand deposits as a proxy for GDP. Furthermore, the analysis controls for the effects of rent seeking. Due to its impact on the ...
2007| Christian Dreger, Teymur Rahmani, Hans-Friedrich Eckey
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DIW Discussion Papers 740 / 2007
In this paper we used the procedures developed in the Kumar and Russell (2002) growth-accounting study to examine cross-country growth during the 1990's. Using a data set comprising developed, newly industrialized, developing and transitional economies, we decomposed the growth of output per worker into components attributable to technological catch-up, technological change and capital accumulation. ...
2007| Oleg Badunenko, Daniel J. Henderson, Valentin Zelenyuk
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DIW Discussion Papers 739 / 2007
This study compares two alternative approaches to estimate parameters in gravity equations. We compare the traditional OLS approach applied to the log-linear form of the gravity model with the Poisson Quasi Maximum Likelihood (PQML) estimation procedure applied to the non-linear multiplicative specification of the gravity model. We use the trade flows for all products, for all manufacturing products ...
2007| Boriss Siliverstovs, Dieter Schumacher
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DIW Discussion Papers 738 / 2007
Over the last decades the German education system underwent numerous reforms in order to improve "equality of opportunity", i.e. to guarantee all pupils equal access to higher education. At the same time internationally comparative evidence yields that Germany features particularly low intergenerational mobility with respect to educational attainment. This study investigates the development in intergenerational ...
2007| Guido Heineck, Regina T. Riphahn
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DIW Discussion Papers 737 / 2007
This paper contributes to the debate about the optimal design of tax-transfer systems. Based on the theory of optimal taxation, combined with microsimulation and microeconometric techniques we derive the welfare function which makes the current German tax and transfer system for single women optimal. Furthermore, we compare the welfare function conditional on the presence and age of children and assess ...
2007| Peter Haan, Katharina Wrohlich
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DIW Discussion Papers 736 / 2007
Using data on annual individual labor income from three representative panel datasets (German SOEP, British BHPS, Australian HILDA) we investigate a) the selectivity of item non-response (INR) and b) the impact of imputation as a prominent post-survey means to cope with this type of measurement error on prototypical analyses (earnings inequality, mobility and wage regressions) in a cross-national setting. ...
2007| Joachim R. Frick, Markus M. Grabka
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DIW Discussion Papers 735 / 2007
This study suggests another explanation of the "missing globalization puzzle" typically observed in the empirical gravity models. In contrast to the previous research that focused on aggregated trade flows, we employ the trade flows in manufacturing products broken down by 25 three-digit ISIC Rev.2 categories. We estimate the distance coefficient using the log-linear specification of the standard as ...
2007| Boriss Siliverstovs, Dieter Schumacher
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DIW Discussion Papers 734 / 2007
Using representative micro data from the German Socio-Economic Panel Study (SOEP) for the year 2002, we analyse non-take-up behaviour of Social Assistance (SA) in Germany. According to our simulation as much as 67 percent of the eligible population did not claim SA in that year which is slightly higher than reported in previous work. We particularly emphasize the role of measurement error in estimating ...
2007| Joachim R. Frick, Olaf Groh-Samberg
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DIW Discussion Papers 733 / 2007
Objectives - Taking a cross-national comparative perspective, we investigate linkages between volunteer work, informal helping, and caring among Europeans aged 50 or older: Is the relationship between these activities characterized by complementarity or by substitution? Is there evidence for the existence of (unobserved) personality traits that foster engagement independent of a specific activity? ...
2007| Karsten Hank, Stephanie Stuck
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DIW Discussion Papers 732 / 2007
In this paper, we present a detailed and comprehensive complementarity model for computing market equilibrium values in the European natural gas system. Market players include producers and their marketing arms which we call "transmitters", pipeline and storage operators, marketers, LNG liquefiers, regasifiers, tankers, and three end-use consumption sectors. The economic behavior of producers, transmitters, ...
2007| Ruud Egging, Steven A. Gabriel, Franziska Holz, Jifang Zhuang
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DIW Discussion Papers 731 / 2007
We consider a model of a monopolistic network operator who sequentially offers two-parted access charges to symmetric downstream firms. We are particularly interested in analyzing an alternative to current regulatory practice of prescribing access. In particular, we look at the possibility of restraining the input monopolist's market power by endowing downstream firms with a regulatory option: In case ...
2007| Claudia Salim
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DIW Discussion Papers 730 / 2007
In this paper we investigate the effects of EU enlargement on price convergence. The internal market is expected to boost integration and increase efficiency and welfare through a convergence of prices in product markets. Two principal drivers are crucial to explain price developments. On the one hand, higher competition exerts a downward pressure on prices because of lower mark ups. On the other hand, ...
2007| Christian Dreger, Konstantin Kholodilin, Kirsten Lommatzsch, Jiri Slacalek, Przemyslaw Wozniak
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DIW Discussion Papers 729 / 2007
The Kyoto Protocol is one first important step towards a global greenhouse gas emissions reduction strategy. In order to avoid irreversible climate changes and huge economic damage, not just some but all of the responsible nations should agree on a joint proposal to reduce emissions. Sharing the burden fairly would mean that those nations with high emissions per capita should reduce them more than ...
2007| Claudia Kemfert
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DIW Discussion Papers 728 / 2007
The telecommunications in the 1990s witnessed an enormous worldwide round of Mergers & Acquisitions (M&A). This paper examines the innovation determinants of M&A activity and the consequences of M&A transactions on the technological potential and the innovation performance. We examine the telecommunications equipment industry over the period 1988-2002 using a newly constructed data set with firm-level ...
2007| Tseveen Gantumur, Andreas Stephan
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DIW Discussion Papers 727 / 2007
Gender role attitudes are well-known determinants of female labor supply. This paper examines the strength of those attitudes using time diaries on childcare, food management and religious activities provided by the British Time Use Survey. Given the low labor force participation of females from ethnic minorities, the role of ethnicity in forming those attitudes and influencing time spent for "traditional" ...
2007| Anzelika Zaiceva, Klaus F. Zimmermann
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DIW Discussion Papers 726 / 2007
Immigrants are much less likely to own their homes than natives, even after controlling for a broad range of life-cycle and socio-economic characteristics and housing market conditions. This paper extends the analysis of immigrant housing tenure choice by explicitly accounting for ethnic identity as a potential influence on the homeownership decision, using a two-dimensional model of ethnic identity ...
2007| Amelie Constant, Rowan Roberts, Klaus F. Zimmermann