Aktuelle Publikationen
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(2009): Can countries with severe labor market frictions gain from globalization? Review of Development Economics. 2009, 13(2), pp. 230-247. Available under: doi: 10.1111/j.1467-9361.2009.00509.x
The interaction between increased Southern trade integration (globalization) and labor market frictions is analyzed in a dynamic general-equilibrium North South nonscale growth model with endogenous Northern innovation and endogenous Southern imitation. The qualitative employment, growth, and relative-wage effects of globalization are shown to depend crucially on the degree of Northern labor market frictions. I demonstrate that only Northern countries with particularly large labor market adjustment costs for both firms and workers benefit from globalization in terms of permanently lower unemployment, temporarily faster growth, and permanently higher wages. This is because of the resulting general-equilibrium feedback effects of Northern labor market frictions that deter Southern imitation incentives.The result does not imply the recommendation to increase Northern labor market rigidities, but it challenges the common belief that labor market flexibility helps Northern countries to better adjust to the globalization threat coming from the South.
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(2009): Optimal Taxation of Risky Human Capital EVANS, Chris, ed., Richard KREVER, ed.. Australian Business Tax Reform in Retrospect and Prospect. Sydney: Thomson, 2009, pp. 55-74. ISBN 978-0-455-22692-7
The paper summarizes the arguments in favour of a shift from comprehensive to dual income taxation as a desirable business and investment tax option. The attractivity of comprehensive income taxation is reduced in a world with integrated capital and commodity markets and mobile business. Dual income taxation is shown to offer a serious theoretical and practical alternative, which should be considered as a stepping stone toward business tax coordination in the EU.
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This dissertation deals with two major topics. The first topic looks at the behavior of multinational companies (MNCs) in terms of their offshoring behavior. Chapters
1 and 2 are contributions to this area, focussing on the choice of entry-mode made
by MNCs when going offshore. The second field of interest is devoted to firm’s innovation behavior. Chapters 3 and 4 analyze those issues in the context of Uruguayan firms.
Chapter 1 reviews and criticizes in depth the literature on foreign establishment
mode choices by MNCs providing a motivation to perform a robustness analysis,that is then performed in Chapter 2. Through a review of the theoretical approaches behind each study, as well as by comparing the way theoretical constructs are operationalized, Chapter 1 pools different studies that are part of empirical literature in the field of foreign entry-mode decisions into different classes, comparing their results. The literature’s main results are then compared within those classes, finding inconsistencies in the significance and sign found for almost every explanatory variable studied in the context of entry-mode decisions. An explanation on the reasons behind those inconsistencies is also provided, yielding a strong motivation for
pursuing model misspecification checks and robustness analysis for those variables.
Motivated by Chapter 1, in Chapter 2 a robustness analysis is performed on the
variables usually found in literature to be determinants for entry-mode choices. I
perform a so-called Extreme Bound Analysis (EBA) to determine which of almost 60
explanatory variables are robust to different model specifications. I do so by looking
at the entire distribution of the estimator for each explanatory variable’s coefficient,
following the methodology introduced by Sala-i-Martin (1997a) in a multinomial logit framework. To perform this analysis I build a unique dataset, that accounts for more than 4000 offshoring events of the largest 50 Multinational Companies (MNCs) worldwide in the last 15 years. In Chapter 2 I use 640 of those events, them being entries into foreign countries done by the largest 22 financial MNCs in the last 15 years. Based on over eight million regressions, my results are able to
isolate 15 variables that seem robustly related to an MNC’s entry-mode decision.
Multinational firms’ size and its international experience increase the likelihood of Greenfield Investments (GI) over choosing Merger & Acquisitions (M&A) or any
type of entry-mode involving a partner. Conversely, its host-country experience as
well as the larger its experience differential in M&A over GI, make greenfields less
probable. In terms of the host-country’s characteristics, more cultural distance between
home and host-country, a better developed financial sector (or local credit
market) in the host-country, a more regulated environment for obtaining licenses and more macroeconomic sustainability increase the chances of GI, while a worse local
infrastructure, higher ITC costs and more difficulties in registering property and
employing workers decrease the odds of greenfields. Joint Ventures are more likely
if the MNC is larger and if the host-country has more macroeconomic sustainability
and/or if it has a worse investment environment. A small and expensive talent pool,
make Joint Ventures (JV) less likely if compared to M&A. In addition, I find that
the size, expensiveness and quality of the talent pool determine the likelihood of full
GI due to the latter’s character of being generated from scratch, rather than because
it is done in a full ownership mode or without interacting with another company, be
it a target or a partner. The same applies for a host-country’s political stability.
Chapter 3 is the result of joint work with Adriana Cassoni and was developed under
the sponsorship of the IADB, for the Innovation Network. We there analyze the
innovation behavior of Uruguayan firms using a microeconomic dataset, stemming
from Uruguayan Innovation Surveys (IS) which we matched to Uruguayan Economic
Activity Surveys (EAS). We there review the theoretical and applied literature on
the innovative behavior of firms and its impact on productivity, so as to depict the
setting within which the models estimated for Uruguay are specified. We describe
the main characteristics of Uruguayan data, thus setting a benchmark for a better
understanding of the descriptive analysis afterwards summarized. Finally, we estimate
a model using a panel approach and correcting for survey design and sample
bias, following in general lines the specification of Cr´epon et al. (1998), although with several modifications and making use of new innovation and output indicators
proposed by us. Our results depict an innovation behavior that heavily relies on
innovation in processes and whose main impact on firm productivity occurs through
the improvement of firm internal efficiency, as opposed to product innovation.
In the context of the paper prepared for the IADB we encountered that the empirical
literature dealing with the innovation behavior has difficulties to empirically
implement the theoretical model derived by Cr´epon et al. (1998). Most variables
and proxies used to operationalize the mentioned model are mediocre in terms of
replicating the underlying theoretical concepts and are not able to capture the complexity of innovation behavior when it comes to model innovation inputs and the
value of the innovation output obtained. In Chapter 4 we therefore suggest and construct
alternative measures for capturing those dimensions. Two of our indicators
can be applied using standard IS data, while the remaining three indicators make use
of EAS data. We analyze their comparative performance in a productivity equation
and conclude that our specification based on value added per employee as a proxy
of productivity and using our indicators for innovation output value significantly
improves the measuring of the impact of innovation on productivity growth yielding
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(2009): The neural circuitry of a broken promise Neuron. 2009, 64(5), pp. 756-770. Available under: doi: 10.1016/j.neuron.2009.11.017
Promises are one of the oldest human-specific psychological mechanisms fostering cooperation and trust. Here, we study the neural underpinnings of promise keeping and promise breaking. Subjects first make a promise decision (promise stage), then they anticipate whether the promise affects the interaction partner's decision anticipation stage) and are subsequently free to keep or break the promise (decision stage). Findings revealed that the breaking of the promise is associated with increased activation in the DLPFC, ACC, and amygdala, suggesting that the dishonest act involves an emotional conflict due to the suppression of the honest response. Moreover, the breach of the promise can be predicted by a perfidious brain activity pattern (anterior insula, ACC, inferior frontal gyrus) during the promise and anticipation stage, indicating that brain measurements may reveal malevolent intentions before dishonest or deceitful acts are actually committed.
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dc.contributor.author: Eißler, Ralph
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This paper examines how electoral motives and government ideology influence active labor market policies (ALMP). We present a model that explains how politicians strategically use ALMP to generate political cycles in unemployment and the budget deficit. Election-motivated politicians increase ALMP spending before elections irrespective of their party ideology. Leftwing politicians spend more on ALMP than rightwing politicians. We test the hypotheses derived from our model using German state data from 1985:1 to 2004:11. The results suggest that ALMP (job-creation schemes) were pushed before elections.
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We investigate how multinational two-sided platform firms set their prices on intra firm transactions. Two-sided platform firms derive income from two customer groups that are connected through at least one positive network externality from one group to the other. A main finding is that even in the absence of taxation transfer prices deviate from marginal cost of production. A second result of the paper is that it is inherently difficult to establish arm s length prices in two sided-markets. Finally, we find that differences in national tax rates may be welfare enhancing despite the use of such prices as a profit shifting device.
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(2009): Materielle und immaterielle Anreize für Organspender DUTTGE, Gunnar, ed. and others. Recht am Krankenbett : Die Kommerzialisierung des Gesundheitssystems. Göttingen: Universitätsverlag Göttingen, 2009, pp. 27-45
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(2009): Der Deutsche Qualifikationsrahmen : Chance zur Lösung nationaler Problemlagen Berufsbildung in Wissenschaft und Praxis. 2009, 38(6), pp. 40-43. ISSN 0341-4515
Die Literatur zum Europäischen und Deutschen Qualifikationsrahmen nimmt zu. Dies entspricht der Wichtigkeit der damit verbundenen Aufgabenstellungen, die sowohl für die reflektierende und kritisch begleitende Wissenschaft als auch für die zum Handeln aufgeforderte Politik nicht von der Hand zu weisen sind. Sie konkretisieren sich, wenn man (a) die Vorgaben des Europäischen Qualifikationsrahmens ernst nimmt und ihnen zu entsprechen versucht und (b) wenn man die "Baustellen" des deutschen Berufsbildungssystems betrachtet, die seit Jahren existieren und ihrer Bearbeitung harren. Nach den Beiträgen von FRIEDRICH HUBERT ESSER und HERMANN NEHLS in dieser Zeitschrift möchte dieser Artikel einen Beitrag zur Schärfung des berufsbildungspolitischen Problembewusstseins leisten, sich im Kontext der Entwicklung des DQR mit den ungelösten Fragen der deutschen Berufsbildung zu befassen und Lösungswege zu eröffnen.
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(2009): Freie Schulwahl im dualen System : Chancen und Risiken WUTTKE, Eveline, ed. and others. Erträge und Perspektiven berufs- und wirtschaftspädagogischer Forschung. Opladen [u.a.]: Budrich, 2009, pp. 89-100
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(2009): Domänenbezogene Professionalität ZLATKIN-TROITSCHANSKAJA, O., ed. and others. Lehrerprofessionalität - Bedingungen, Genese, Wirkungen und Messung. Weinheim: Beltz, 2009, pp. 83-92
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dc.contributor.author: Ziegler, Birgit
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(2009): Die Rolle von Anreizen für die Zukunft der Kreditverbriefung BURGHOF, P., ed., L. JOHANNING, ed., S. RODT, ed., K. SCHÄFER, ed., H. F. WAGNER, ed.. Risikomanagement und kapitalmarktorientierte Finanzierung. Frankfurt: Knapp, 2009, pp. 5-13
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dc.contributor.author: Krahnen, Jan Pieter
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(2009): Harmonization of Corporate Tax Systems and Its Effect on Collusive Behavior Journal of Public Economic Theory. Wiley-Blackwell. 2009, 11(4), pp. 599-621. ISSN 1097-3923. eISSN 1467-9779. Available under: doi: 10.1111/j.1467-9779.2009.01422.x
We study how harmonization of corporate tax systems affects the stability of international cartels. We show that tax base harmonization reinforces collusive agreements, while harmonization of corporate tax rates may destabilize or stabilize cartels. We also find that bilateral and full harmonization to a common standard is worse from society's point of view than unilateral harmonization to a minimum tax standard.
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This paper explores whether an exchange featuring (almost) equal expected gains and expected losses for a trusting individual is evidence for high trust or low trust; I argue that such an exchange shows low trust. A simple trust measure is suggested which could be applied both in experimental and analytical research.
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(2009): Modularisierung im angelsächsischen Kulturraum-bildungspolitische Ausgangslagen und strukturelle Umsetzungen im Großbritannien PILZ, Matthias, ed.. Modularisierungsansätze in der Berufsbildung Deutschland, Österreich, Schweiz sowie Großbritannien im Vergleich. Bielefeld: Bertelsmann, 2009, pp. 113-131
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(2009): Wege zu mehr Wettbewerb im Gesundheitssystem SCHULZE, Günther G., ed.. Reformen für Deutschland : die wichtigsten Handlungsfelder aus ökonomischer Sicht. Stuttgart: Schäffer-Poeschel, 2009, pp. 79-97
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Educational risk and wage uncertainty are important features in human capital investment. Therefore, we apply an OLG-model, wherein human capital formation is exposed to idiosyncratic risk. Extending the instruments available for social insurance, a (Norwegian-type) two-bracket progressive labor tax system and education subsidies are shown to enhance the efficiency-insurance trade-off and to increase social welfare compared to a standard Eaton-Rosen-world. Progression is a superior instrument for insurance, and education subsidies are desirable to alleviate efficiency losses. Finally, we link our results to the flat tax debate. Direct tax progression becomes the more likely the more welfare costs are caused by income risk, the less elastic is labor supply and the more education is boosted by education subsidies.
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(2009): Regional costs-of-living with congestion and amenity differences : an economic geography perspective The Annals of Regional Science. Springer. 2009, 43(1), pp. 49-69. ISSN 0570-1864. eISSN 1432-0592. Available under: doi: 10.1007/s00168-007-0201-z
Standard models of the “new economic geography” predict that costs-of-living are low in the central and high in peripheral region, due to the fact that consumers in the periphery have to bear transportation cost for manufacturing varieties. In reality, however, only some goods are cheaper in economic centres, whereas the overall costs-of-living (including housing costs) tend to be higher. In this paper we use an analytically tractable economic geography model with an immobile housing stock, so that regional agglomeration drives up housing prices. We show that a core-periphery structure can endogenously emerge in which the core is the more expensive area in equilibrium. We also analyse the efficiency of spatial cost-of-living differences and augment the model to include an exogenous regional difference in the form of a consumption amenity.
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(2009): Does government ideology influence political alignment with the U.S.? An empirical analysis of voting in the UN General Assembly Review of International Organizations. 2009, 4(3), pp. 245-268. Available under: doi: 10.1007/s11558-009-9066-5
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