Reservation wages of first- and second-generation migrants

We analyse the reservation wages of first- and second-generation migrants, based on rich survey data of the unemployed in Germany. Our results confirm the hypothesis that reservation wages increase over migrant generations and over time, suggesting that the mobility benefit of immigration may be limited in time.     

Credit crunch in a model of financial intermediation and occupational choice

In this paper, we introduce a dynamic general equilibrium model with numerous and heterogeneous investment projects and endogenous occupational choice to study a credit crunch. Asset accumulation of assets by households as they face various employment and return risks over a long lifetime determines whether they are entrepreneurs or workers. The origin of a credit crunch may be found in the conservative lending by banks during periods of financial duress and reduced profitability because of capital requirements. Using an example from Canada, monetary policy is shown to be largely ineffective in alleviating the credit crunch, while flexible loan regulation can erase it.     

The international oil industry in the 1980s

Few industries have undergone such rapid changes during the last ten years as the international oil industry. During this decade, there have been radical changes in the conditions under which international oil companies acquire and trade crude oil. In addition to the changes in the upstream sector the two quantum jumps in oil prices have drastically altered the conditions of downstream operations. Since 1979 oil demand fell more sharply than total energy demand, thereby reducing its relative importance in the energy economy. These events initiated a far-reaching adjustment process which is likely to continue.     

Der direkte internationale Preiszusammenhang

Ohne Zusammenfassung     

Manipulierte Schadenfälle als Herausforderung für die Praxis

Der Versicherungsbetrug hat insbesondere in den letzten Jahren stark zugenommen. In diesem Artikel werden Abwehrstrategien und Erfolgsfaktoren der Betrugsabwehr eines Versicherungsunternehmens beispielhaft dargestellt. Mit Hilfe der vorgestellten Vorgehensweisen wird sowohl dem Eigenschutz des Versicherungsunternehmens als auch dem Schutz der Versicherungsgemeinschaft Rechnung getragen.     

Can the international debt strategy use the concept of corporate compositions?

So far, it has been possible to stave off really serious consequences for the world economy and the international financial system since the developing-country debt crisis started in 1982. Yet for many developing countries, external debt problems and the underlying economic crisis are as pressing as ever. The following article identifies five central elements of a general orientation framework for dealing with the debt crisis which has been inspired by the basic idea of the concept of corporate compositions found in commercial law.     

Technological Creativity and Cheap Labour? Explaining the Growing International Competitiveness of German Mechanical Engineering before World War I

Abstract. Which factors caused the growing international competitiveness of German mechanical engineering industry in the pre‐World War I period? In this paper, we want to address this question and elucidate whether or not the international market success of machine builders in the German Empire was determined by technological creativity and the availability of a comparatively cheap labour force. Based on an unbalanced panel, we therefore investigate the influence of demand, labour costs and technological creativity on export performance of 32 different machinery types. We find robust evidence that the development of export–import ratios in mechanical engineering was positively influenced by the growth of patent stocks that represent the new knowledge being available for German machine builders. In addition, we present some evidence for the assumption that the growing international competitiveness of German mechanical engineering was also caused by decreasing relative unit labour cost.     

International transmission of the business cycle in a multi-sector model

Standard multi-country models do not replicate important features of the international transmission of business cycles, predicting cross-country correlations of output and consumption which are, respectively, too low and too high. In this paper we modify the supply side of a two-country model by adding multiple sectors and trade in intermediate goods. The model generates a higher cross-country correlation of output than standard one-sector models. It also predicts cross-country correlations of employment and investment that are closer to the data. We analyze the relative impact of multiple sectors, trade in intermediate goods, imperfect substitution between domestic and foreign goods, home preference, capital adjustment costs, and capital depreciation in order to pinpoint the features which move the model's predictions closer to the data.     

Sustainable management of extensively managed savanna rangelands

Classic rangeland theory advocates stocking rangelands at relatively low and constant levels. This theory has been labelled inappropriate for savanna rangelands, because savannas are strongly influenced by stochastic processes. Opportunistic strategies that force animal numbers to track available forage have been proposed as an alternative management paradigm. However, no studies have examined whether these opportunistic strategies are sustainable or optimal. We developed a simulation model of a savanna rangeland to identify optimal, sustainable strategies for the management of extensive rangelands. We optimised the utility of agents who are motivated by economic, production or ecological factors under both deterministic and stochastic conditions. In all cases we found that it was optimal to manage the system conservatively and not opportunistically. Moreover, it was optimal to manage more conservatively under stochastic conditions. Key elements of the conservative strategy were to stock at low levels and to use fire to control tree abundance and thereby maintain the system in a grass dominated state. We conclude that opportunistic strategies of range management although intuitively appealing are not optimal.