ECB repo rate setting during the financial crisis

I estimate a reaction function for the ECB using an ordered logit model for the period 1999-2009. Allowing for a smooth transition from one set of parameters to another, I detect a rapid change in the middle of 2008.     

The microstructure of exchange rate management: FX intervention and capital controls in Brazil

This article uses a microstructure approach to analyse the effectiveness of capital controls introduced in Brazil to counter an appreciation of the Real. Based on a rich data set from the Brazilian foreign exchange market, we estimate a reduced-form VAR to characterize the interaction of the central bank, financial and commercial customers in times of regulatory policy measures. We find that capital controls change market participants’ behaviour, and that central bank interventions elicit a significant response in financial order flow. Referring to the source of order flow, we find no direct price impact by financial flows and thus no evidence that the appreciation of the Real is driven by financial customers’ activity. Instead, commercial customers seem to be a primary driver of the Real within our model.     

On the Delegation of Powers: With Special Emphasis on Central and Eastern Europe

Elected politicians can choose to decide themselves or to delegate competence. Delegation can occur in the constitutional stage, but is most common in the post-constitutional stage. Furthermore, domestic delegation can be distinguished from international delegation. The authors propose to analyze both delegation decisions within a unified framework and apply it to eight countries of Central and Eastern Europe that have experienced substantial constitutional change recently. The main differences among these countries with regard to delegation are portrayed, their origins are traced and their effects analyzed.     

Leseliste Top 5: Beteiligungscontrolling

PRAXIS | Magazin

Leseliste Top 5: Beteiligungscontrolling     

减少汽车业的浪费

汽车制造商和零件供应商可以节省巨大开支，但前提是双方要更为紧密地合作在一起麦肯锡的研究表明，北美汽车业每年在产品开发和组装过程中由于汽车生产商与供应商缺乏良好的计划和协调不当，造成了超过100亿美元的浪费。事实上．这只是较为保守的估算。因为我们的研究仅涵盖了供应商发生的成本，如：附加设计、生产工具最后改型和零件自身的附加成本。这还不包括因设计问题生产商需额外支付的改型费用、生产问题引发的车辆最终成本的增加或质保支出。这几项每年给汽车行业带来的浪费约为120亿美元。     

On the public provision of the performing arts

In this paper, we present a model in which the performing arts are modelled as congestible public goods. In accordance with empirical evidence, the production of seat capacity is assumed to be subject to fixed costs. We estimate the parameters of the model's demand and cost functions using German data. Using these estimates in a subsequent social choice analysis, we show that the current situation in the German performing arts sector is best described by a directorship that under the influence of a selfish theater lobby maximizes only the welfare of the spectators. Such an equilibrium, characterized by too low ticket prices and too large capacity, is most likely to establish if citizens have a very positive ex ante notion of the performing arts.     

Property taxes and dynamic efficiency: A correction

According to Kim and Lee (1997), property taxes as opposed to capital gain taxes and taxes on rent endanger dynamic efficiency. The present paper shows that the choice of the tax base is immaterial. What counts is whether the taxes eliminate the after-tax rent. Empirical evidence suggests that this is not the case.     

Debating liberalism: Walter Eucken,F. A. Hayek and the early history of the Mont Pèlerin Society

The Review of Austrian Economics - Walter Eucken is mostly known for his impact on establishing the Social Market Economy in post-war Germany. In this paper we identify how Eucken was highly...