Testing for time variation in the natural rate of interest

This paper replicates in a wider sense the unobserved components model of Laubach and Williams (Review of Economics and Statistics, 2003, 85, 1063–1070) to estimate the natural rate of interest (NRI) and investigates the role of model uncertainty. A stochastic Bayesian model selection procedure is employed to test the hypothesis of time variation in the NRI against a constant NRI. The model selection confirms time variation in the NRI as a result of changes in potential output growth, but other determinants of the NRI are found constant.     

Covid-19 and smart beta

Financial Markets and Portfolio Management - We investigate the role of sectors on the performance of smart beta products during the COVID-19 crisis. Cross-sectional differences in excess returns...     

The social costs of gun ownership revisited

Cook and Ludwig (J Public Econ 90:379–391, 2006) use data on homicide rates and gun prevalence proxies from US counties over the period 1980–19     

The devil dwells in the tails

This paper explores firm growth rate distribution in a Gibrat’s Law context. It is novel in two respects. First, rather than limiting the analysis to a focus on the conditional mean, we investigate the entire shape of the distribution. Second, we show that differences in the firm growth rate process between large and small firms are highly circumstantial and depend on the industry dynamics. The data used include more than 9,000 Danish manufacturing, services and construction firms. We provide robust evidence indicating that firm growth studies should concentrate less on explaining means and instead focus on other parts of the firm growth rate distribution.     

Does foreign ownership matter for the innovative activities of enterprises?

This paper tests the relationship between foreign ownership and the innovative behaviour and performance of enterprises. The analysis uses data from the Community Innovation Survey (CIS 3) for Austria. We employ a kernel-based matching approach as a non-parametric test. After controlling for size, sectoral affiliation, export intensity and other variables that influence innovative behaviour we find that the impact of foreign ownership on innovation input and outcome is not significant in most variables. Membership in a multinational enterprise group, however, significantly helps to overcome different obstacles in the innovation process, such as the lack of financial resources, the lack of technological and market information or organisational problems. The nationality of the parent enterprise does not matter for innovative behaviour and performance except in the case of Anglo-Saxon-owned enterprises.

Collective Bargaining,Inter‐Sectoral Heterogeneity and Competitiveness: A Cross‐National Comparison of Macroeconomic Performance

Research on the performance effects of bargaining remains inconclusive. One reason for this is neglect of heterogeneity of the bargainers, namely differences in exposure to world markets and their implications for international competitiveness. Since the effects of bargaining on competitiveness depend on coping with productivity differentials between the exposed and sheltered sector, we discuss how distinct bargaining structures interact with these differentials. Exposed‐sector pattern setting is predicted to be the only bargaining structure that is sensitive to productivity differentials. The findings from time series cross‐sectional analysis corroborate the expected impact on labour costs and the current balance, whereas no employment effects are discernible.     

Erneuerbare Energien in W?rmenetzen – eine realistische Perspektive?

The heating sector holds high potentials for cutting CO₂ emissions by using renewable energy. These potentials can be tapped either by substituting fossil fuels in individual heating units or by using renewable energy in district heating networks, which may be more efficient. This paper asks for the options to increase the share of renewable energy in Germany??s district heating infrastructure and for the restrictions that are hampering further development in this field. It critically discusses the relevant technical, political and economic challenges and determinants. District heating networks fuelled by renewable energy are not only competing with fossil fuels in individual heating units. They are also facing the more fundamental question regarding the preconditions for a profitable and worthwhile operation of grid-bound heat supply. The economic viability of heat grids has to be analyzed on a case-by-case basis, since it depends predominantly on individual framework conditions. Those include a decreasing heat demand due to improving energy performance of buildings, competing gas grids already in place and the complex interest structures of the actors involved. The growth rates that were observed in the last years were predominantly achieved in small renewably fuelled district heating networks. Even under favourable framework conditions, there is a need for additional supportive measures to increase the share of renewable energy in district heating grids. This mix of policy instruments should encompass measures to increase the implementation rates of municipal heat utilization concepts, measures to decrease the initial investments needed, as well as public relations to improve the user perception of grid-bound heat supply. However, the options to increase the share of renewable heat in existing large-scale grids are considered to be rather limited.