Design von Informationsfeedback in Regelenergiemärkten

Information feedback is a much debated issue on balancing power markets: which information on past auctions should be published and when? The article analyzes advantages and disadvantages of different feedback policies applied to the example of the Swiss balancing power market. Our main conclusion is that the publication of the marginal bid is usually recommendable. This is often not the case for additional information (e.g. extramarginal bids). However, the answer depends on the specific market design and the market structure.     

Interbank market frictions, international banks and growth

In developing countries and countries in transition, a lack of finance is regarded as a major reason for the underperformance of the SME sector. The financial sector does not channel funds efficiently from savers to the most efficient investment. In a general equilibrium endogenous growth model, we explain the underperformance of the SME sector by interbank market frictions. High information costs in the interbank market lead to a high loan/deposit spread and hence to a low growth equilibrium. The solution to this problem is twofold. First, central bank policy could reduce interbank information problems by providing effective bank supervision. Second, if the central bank is expected not to have sufficient monitoring capabilities, reputation and reserves, opening up the interbank market to international banks can substitute for insufficient central bank activities.The sources of this advantage in efficiency are stronger incentives for workers and managers (direct connection between effort and return), easier monitoring and greater flexibility (McIntyre 2001).     

Shaping the Societal Bill: past and future trends in education, pensions and healthcare expenditure

Education, pensions and healthcare are the main components of the Societal Bill in Europe. Here we analyse the principal trends and trend breaks that will shape the bill in the next decades. Population ageing, changes in household structure, technological progress, new organisation of work and leisure, changes in market labour structure and regulation and increasing migration flows are the main factors that will call for a reform of social systems in Europe. Understanding how all these variables relate each other is a complex challenge that needs to be tackled with both quantitative and qualitative forecasting methods.     

German direct investment: Marked structural change

The collapse of socialism and opening up of markets in the East has led to a significant structural change in direct investment behaviour on a worldwide scale. The trend is particularly evident in Germany's direct investment patterns over the past two years. While newly industrializing countries in Latin America and Asia continue to be attractive investment locations, the major losers are the less developed countries, especially in Africa. There is a good deal of evidence to suggest that the countries of Africa, with a small number of exceptions, are increasingly becoming pure recipients of development aid.     

Taiwan and the People's Republic of China foes or partners?

Taiwan is developing ever more perceptibly into what both Peking and Taipei consider it to be: a province of China, albeit a province sui generis—part of China and yet an independent state, enjoying world-wide recognition though denied diplomatic relations, a leading commercial power but without proper commercial treaties. The prosperity which has been generated in the island is an ever present temptation for the People's Republic. Is it tempting enough to provoke an appeal to arms? Or is Red China's perfectly legitimate interest directed primarily at the exchange of goods and technologies?     

VI. Writschaftslehre der Unternehmungen

Ohne Zusammenfassung     

Does foreign aid really raise per capita income? A time series perspective

Abstract. We analyze the relationship between per capita income and foreign aid. We employ annual data and five‐year averages and carefully examine the time‐series properties of the data. Panel estimations with dynamic feasible generalized least‐squares (DFGLS) show that aid generally has an insignificant or minute negative significant impact on per capita income (particularly in highly aid‐dependent countries). This holds true for countries with different levels of human development and income, as well as for different regions. We also find that aid has a small positive impact on investment, but a significant negative impact on domestic savings (crowding out) and the real exchange rate (appreciation). JEL classification: F35, O11, C23, C51     

Balancing Power Markets in Germany: Timing Matters

This paper analyzes timing issues on the German balancing power market. We focus the analysis on the length of the bidding period, i.e. the length of the time period a supplier has to provide balancing power capacities, and the question of how far before the beginning of a bidding period the auction should be carried out. We show that different load levels require different plants for the optimal provision of balancing power. In a longer bidding period, the power plants that have the lowest average cost in the bidding period are unlikely to be efficient in all hours of the bidding period. Hence, shortening bidding periods can increase efficiency. Furthermore, we show that an early commitment on a power plant’s mode of operation (when uncertainty about resulting spot prices is still relatively high) also reduces efficiency. This suggests that the auction should be held relatively close to the beginning of the bidding period. Furthermore, we discuss some advantages of a liquid real time market.