Rentenpaket: die Bundesregierung auf Irrwegen

In the summer of 2014 Germany will witness the most substantial expansion of pension expenditures since the 1950s. Yet, while this reform package was motivated mainly by the dismal prospect of rising old age poverty rates, it does little to alleviate this problem. On the contrary, its two central elements, an expansion of the pension claims of mothers whose children were born before 1992, and access to early retirement at age 63 for workers with a long insurance history, tend to benefit rather privileged groups of the insured. These measures endanger the sustainability of the German pension system and will necessitate future generations to work even longer than would have been the case otherwise.     

Nach der Wahl: Was sind die wichtigsten wirtschaftspolitischen Herausforderungen?

Even though Germany’s economy is currently going strong, the country still faces enormous challenges if it wants to maintain and increase this prosperity. The new government should take this opportunity to set the course for the future by encouraging the digitalisation of the economy and the society as well as by ensuring that the ongoing energy transition is sustainable and efficient. Other challenges include the adverse effects of globalisation on parts of society and the uneven distribution of income and wealth. But the actual magnitude of the government’s room to manoeuver is up for debate. The new government’s fiscal space might be more limited than it seems, since an automatic adjustment of the income tax to inflation and growth is required to end the bracket creep. Given that transfer programmes are being phased out, the federal income tax surcharge to finance German unification also needs to be abolished. Further budget pressure stems from the pension system and from demands by state and local as well as European governments. The new German government should use the next governing period to initiate fundamental reforms of economic and fiscal policy that will provide adequate answers to long-run challenges.     

PRICE SETTING OF MARKET MAKERS: A FILTERING PROBLEM WITH ENDOGENOUS FILTRATION

This paper studies the price‐setting problem of market makers under risk neutrality and perfect competition in continuous time. The classic approach of Glosten–Milgrom is followed. Bid and ask prices are defined as conditional expectations of a true value of the asset given the market makers' partial information that includes the customers' trading decisions. The true value is modeled as a Markov process that can be observed by the customers with some noise at Poisson times. A mathematically rigorous analysis of the price‐setting problem is carried out, solving a filtering problem with endogenous filtration that depends on the bid and ask price processes quoted by the market maker. The existence and uniqueness of the bid and ask price processes is shown under some conditions.     

Trump’s Trade Policy Agenda

President Donald Trump espouses “America First” positions which are commonly interpreted as protectionist. However, a closer reading of Donald Trump’s business interests, of his administration’s published trade agenda and of US trade negotiation history calls into question whether “America First” means protectionism. Trump will use large trade deficits to pressure trading partners to further open up their markets. Companies that are successful in exporting to the US market from those countries will be alarmed by protectionist announcements and will therefore most likely pressure their governments to give in to the demands of the Trump administration.     

Soziale Lage — Was sind die drängendsten Probleme?

Democracy seems to be at risk. People elect populists and autocrats, who offer simple solutions to social problems. Often, these problems are not even real ones but are only perceived as such. Economists have measures to determine which problems are fact-based, but they cannot draw a clear distinction between academic analysis and normative demand. If politics pursues a correction of a market outcome, any normative criteria other than efficiency have to be outlined explicitly. Nevertheless, some authors consider inequality one of the central contemporary social and economic challenges. Marcel Fratzscher emphasises that the solution is not found in more redistribution via taxes and transfers, but rather through greater equality of opportunity and social and educational mobility. Bert Rürup thinks that to stabilise the acceptance of the compulsory pension scheme, the dominance of the equivalence principle should be reduced. Further, the existence of different federal subsidy schemes should be replaced by a fixed federal contribution rate in alignment with the pension expenditures. In an international comparison, the fiscal burden for households with small and mid-level earned incomes is exceptionally high in Germany. In order to reduce this burden, Rürup suggests a contribution-free allowance for the social insurance contributions.     

Umverteilung durch öffentliche Realtransfers in der Hochschulbildung?

To support higher education, the public sector in Germany makes inter alia use of transfers in kind. With respect to “chances for education”, the social group-specific redistributive effects were quantified for various transfers in kind. The results show that especially students with high social backgrounds benefit from this type of support. A look “behind the scenes” reveals, however, that it is not primarily the transfer instrument but rather the allocation mechanisms of the upstream stages of the educational system which are constitutive for the redistribution effects.     

Health Information on the Internet

Electronic Health (e-Health) increasingly strives to provide health information and services to healthcare stakeholders via the Internet, and to actively involve patients in their care. One major chance for these participatory healthcare and patient-centered approaches that integrate patients in healthcare are the phenomena and ideas associated with providing information and healthcare on the Internet. This paper examines the existing body of knowledge on online health information and explores the current state of research through a review of literature as well as past and current research projects. The fundamental categories of the analysis represent the stakeholders in the healthcare sector, the connecting information flows, the information-transferring technological applications, as well as the categories of the TEMPEST model. Based on these findings, causes and future research fields are discussed. The technological category has the largest share of all categories. Based on these findings, causes and future research fields are discussed.