From:                              Kerstin Heres <heres@zew.de>

Sent:                               Mittwoch, 10. Jänner 2018 11:55

To:                                   IHS Library

Subject:                          ZEW Discussion Papers

 

Sehr geehrte Damen und Herren,

im Rahmen unseres E-Mail Services finden Sie Titel und Zusammenfassung 
der neuen Discussion Papers aus den Forschungsbereichen des ZEW, um deren
Zusendung Sie gebeten hatten.
 
as requested we send you via our e-mail service the Discussion Papers from those Research Departments of the Centre for European Economic Research which you have selected.
 
Mit freundlichen Grüßen / Sincerely yours
Kerstin Heres
ZEW
..........................................................................................................

Economics of Innovation and Industrial Dynamics

 

Discussion Paper No. 17-064

 

External Financing Constraints and Firm’s Innovative Activities During the Financial Crisis

 

Marek Giebel and Kornelius Kraft

 

Abstract

We investigate the effect of individual banks’ liquidity shocks during the recent financial crisis of

2008/2009 on the innovation activities of their business customers. Individual banks’ liquidity shocks are identified by the degree of interbank market usage. We use a difference-in-differences approach to identify the effect of interbank reliance during the crisis on total innovation expenditures in comparison to the periods before. Our results imply that those firms which have a business relation to a bank with higher interbank market reliance reduce their innovation activities during the financial crisis to a higher degree than other firms.

 

Download this ZEW Discussion Paper from our ftp server:

http://ftp.zew.de/pub/zew-docs/dp/dp17064.pdf 

 

..........................................................................................................

 

Discussion Paper No. 17-074

 

The Organizational Design of High-Tech Startups and Product Innovation

 

Christoph Grimpe, Martin Murmann, and Wolfgang Sofka

 

Abstract

We investigate whether appointing a middle management level affects startups’ innovation performance. Additional hierarchical levels are often suspected to restrict innovative activities.

However, founders’ capacities for information processing and resource allocation are usually strongly limited while, at the same time, R&D decisions are among the most consequential choices of startups. We argue that middle management is positively related to introducing product innovations because it improves the success rates from recombining existing knowledge as well as managing R&D personnel. In addition, we suggest that the effectiveness of these mechanisms depends on the riskiness of a startup’s business opportunity. Based on a sample of German high-tech startups, we find support for our conjectures.

 

Download this ZEW Discussion Paper from our ftp server:

http://ftp.zew.de/pub/zew-docs/dp/dp17074.pdf 

 

..........................................................................................................

..........................................................................................................

 

Environmental and Resource Economics, Environmental Management

 

Discussion Paper No. 17-065

 

Natural Disasters and Governmental Aid:

Is there a Charity Hazard?

 

Mark Andor, Daniel Osberghaus, and Michael Simora

 

Abstract

In the aftermath of natural disasters, governments frequently provide financial aid for affected households. This policy can have adverse effects if individuals anticipate it and forgo private precaution measures. While theoretical literature unequivocally suggests this so called “charity hazard”, empirical studies yield ambiguous results. Drawing on rich survey data from German homeowners, we analyze charity hazard for different flood precaution strategies, namely insurance uptake and non-financial protection measures, and different flood risk areas. Our results indicate a substantial charity hazard in the insurance market for individuals residing in flood-prone areas.

In contrast, we find a positive correlation between governmental aid and non-financial protection measures. Moreover, our results suggest that insurance and non-financial protection measures are rather complements than substitutes. Finally, we provide suggestive evidence that status-quo bias might play an important role for insurance uptake.

 

Download this ZEW Discussion Paper from our ftp server:

http://ftp.zew.de/pub/zew-docs/dp/dp17065.pdf 

 

..........................................................................................................

 

Discussion Paper No. 17-067

 

Does the Stick Make the Carrot More Attractive?

State Mandates and Uptake of Renewable Heating Technologies

 

Martin Achtnicht, Robert Germeshausen, and Kathrine von Graevenitz

 

Abstract

In this paper, we investigate the effect of the state-level renewable heating mandate for existing homes in Baden-Wuerttemberg, Germany's third largest federal state. The mandate requires homeowners to supply at least 10 % of their heat demand with renewable energy when they replace their existing heating system. To assess the impact of the renewable heating standard on the uptake of renewable heating systems, we use unique data on a federal government subsidy scheme and exploit geographic differences in state laws over time. We find no evidence of an effect of the mandate even after restricting distance to the state border and refining the data set through matching on population and building characteristics. These findings are unchanged, when we allow effects to vary across space or over time. While energy efficiency and renewable standards are often criticized for not being cost-effective, our results challenge the widespread view that a standard is nevertheless successful in achieving its policy goal.

 

Download this ZEW Discussion Paper from our ftp server:

http://ftp.zew.de/pub/zew-docs/dp/dp17067.pdf 

 

..........................................................................................................

 

Discussion Paper No. 17-068

 

Drivers of Energy Efficiency in German Manufacturing:

A Firm-level Stochastic Frontier Analysis

 

Benjamin Johannes Lutz, Philipp Massier, Katrin Sommerfeld, and Andreas Löschel

 

Abstract

Increasing energy efficiency is one of the main goals in current German energy and climate policies. We study the determinants of energy efficiency in the German manufacturing sector based on official firm-level production census data. By means of a stochastic frontier analysis, we estimate the cost-minimizing energy demand function at the two-digit industry level using firm-level heterogeneity. Apart from the identification of the determinants of the energy demand function, we also analyze potential drivers of energy efficiency. Our results suggest that there is still potential to increase energy efficiency in most industries of the German manufacturing sector.

Furthermore, we find that in most industries exporting and innovating firms as well as those investing in environmental protection measures are more energy efficient than their counterparts. In contrast, firms which are regulated by the European Union Emissions Trading System are mostly less energy efficient than non-regulated firms.

 

Download this ZEW Discussion Paper from our ftp server:

http://ftp.zew.de/pub/zew-docs/dp/dp17068.pdf 

 

..........................................................................................................

 

Discussion Paper No. 17-070

 

Matching Schemes and Public Goods:

A Review

 

Raphael Epperson and Christiane Reif

 

Abstract

Matching schemes, where a party matches the contribution of others, reduce the effective price of a good and aim to foster its demand. We review the empirical literature on the effectiveness of these schemes in the context of public goods, especially in the field of charitable giving. As different measures of effectiveness are used, we classify results according to (i) the level of public good provision, (ii) the amount of individuals’ contributions, (iii) the likelihood to give and (iv) the contribution conditional on contributing a positive amount. Generalizing results is challenging, since context specific factors matter. Predominantly, a match is found to create a significant increase in public good provision without crowding out individuals’ contributions, while the effect on the likelihood of giving and contribution condition on contributing a positive amount is nonnegative. The discussion reveals several avenues for future research, as putting stronger emphasizes on long term effects, public good competition or heterogeneity in responses.

 

Download this ZEW Discussion Paper from our ftp server:

http://ftp.zew.de/pub/zew-docs/dp/dp17070.pdf 

 

..........................................................................................................

 

Discussion Paper No. 17-071

 

Ratchet up or down?

An Experimental Investigation of Global Public Good Provision in the United

Nations Youth Associations Network

 

Carlo Gallier, Martin Kesternich, Andreas Löschel, and Israel Waichman

 

Abstract 

From a current perspective the Paris Agreement is not sufficient to limit the global mean temperature below 2°C above pre-industrial level as intended. The Agreement stipulates that parties review, compare and ratchet up efforts to combat climate change over time. Within this process, commitments heavily depend on what has been already achieved and this status-quo reflects an important reference point serving either as commitment advice or potential threat. We present an experimental study that is specifically designed to incorporate the effect of a status-quo via pre-existing contribution levels under endowment heterogeneity in a game in which participants make voluntary contributions to a public good. Our participants are sampled from the

United Nations Youth Associations Network, representing participants from 51 countries.

Members from developed and developing countries take decisions against the background of different initial levels of endowments and pre-existing contributions. Our analysis indicates that starting with ambitious pre-existing contribution levels can foster aggregate mitigation levels. Falling behind this status-quo contribution levels by reducing the public good appears to be a strong behavioral barrier. These observations might provide support for the basic structure of the Paris Agreement with Nationally Determined Contributions and the possibility to adjust them, even if a downward revision of national targets may not be precluded.

 

Download this ZEW Discussion Paper from our ftp server:

http://ftp.zew.de/pub/zew-docs/dp/dp17071.pdf 

 

..........................................................................................................

 

Discussion Paper No. 17-072

 

Credit Constraints, Energy Management Practices, and Investments in Energy Saving Technologies:

German Manufacturing in Close-up

 

Andreas Löschel, Benjamin Johannes Lutz, and Philipp Massier

 

Abstract

We analyze the drivers and barriers that influence investments increasing the energy efficiency of firms’ production processes or buildings in the German manufacturing sector based on microdata. In particular, we shed light on the relationship between financial barriers (e. g. credit constraints), information and knowledge (e. g. energy management practices), salience of energy-related topics, and the investments in energy saving technologies. A better understanding of firms’ investment behavior regarding energy saving technologies is crucial to design efficient policy measures, which are necessary to achieve the imposed ambitious climate and energy policy targets. We use data from 701 structured telephone interviews in combination with commercial and confidential firm-level data. Our results suggest that energy management practices have a statistically significant positive relationship with investment decisions on energy saving technologies for production processes and buildings. Credit constraints are a barrier to investments in the energy efficiency of firms’ production processes. Furthermore, high energy cost shares of heating or cooling, high energy intensity, energy self-generation and structured internal decision making processes influence the investments in energy efficiency positively.

 

Download this ZEW Discussion Paper from our ftp server:

http://ftp.zew.de/pub/zew-docs/dp/dp17072.pdf 

 

..........................................................................................................

..........................................................................................................

 

Corporate Taxation and Public Finance

 

Discussion Paper No. 17-066

 

On the Interdependency of Profit Shifting Channels and the Effectiveness of Anti-Avoidance Legislation

 

Katharina Nicolay, Hannah Nusser, and Olena Pfeiffer

 

Abstract

The issue of base erosion and profit shifting has been on the international policy agenda for several years now. The aim of this paper is to examine how firms adjust their profit shifting mechanisms in a changing institutional environment. In particular, we test whether firms substitute one profit shifting strategy for another if respective costs change. To this end, we exploit changes in the strictness of transfer pricing regulations and thin capitalization rules over time in a panel of European multinational firms and study a quasi-experimental reform setting in France. We confirm existing evidence that tightening transfer pricing regulations reduces the tax sensitivity of earnings before interest and taxes (EBIT) substantially. Our results show, however, that this reduction includes both a reduction in profit shifting activity via the transfer pricing channel and a substitution with debt shifting. Moreover, firms using debt shifting to begin with rely more heavily on tax optimization of transfer prices when thin capitalization rules are strengthened. If transfer pricing regulations are also strict, the conditional reform effects show that the substitutive response is more pronounced for a subsample of firms with a high share of intangible property (IP). The difference-in-difference approach for the French tax reform illustrates an increase in profit shifting based on transfer prices for treated firms facing new restrictions on debt shifting. Again, the effect is stronger for IP intensive firms.

 

Download this ZEW Discussion Paper from our ftp server:

http://ftp.zew.de/pub/zew-docs/dp/dp17066.pdf

 

..........................................................................................................

..........................................................................................................

 

International Finance and Financial Management

 

Discussion Paper No. 17-069

 

The Zero Risk Fallacy?

Banks‘ Sovereign Exposure and Sovereign Risk Spillovers

 

Karolin Kirschenmann, Josef Korte, and Sascha Steffen

 

Abstract

European banks are exposed to a substantial amount of risky sovereign debt. The “missing bank capital” resulting from the zero-risk weight exemption for European banks for European sovereign debt amplifies the co-movement between sovereign CDS spreads and facilitates cross-border financial-crisis spillovers. Risks spill over from risky periphery sovereigns to safer core countries, but not in the opposite direction nor for exposures to countries not exempted from risk-weighting. We consider the trade-off of benefits of sovereign debt (for banks and sovereigns) and spillover risk when applying risk-weights. More bank capital as well as positive risk-weighting for sovereign exposures mitigates spillovers.

 

Download this ZEW Discussion Paper from our ftp server:

http://ftp.zew.de/pub/zew-docs/dp/dp17069.pdf 

 

..........................................................................................................

..........................................................................................................

 

Labour Markets, Human Resources and Social Policy

 

Discussion Paper No. 17-073

 

Intermediation in Peer-to-Peer Markets:

Evidence from Auctions for Personal Loans

 

Thilo Klein

 

Abstract

I examine the role of intermediaries on the world's largest peer-to-peer online lending platform. This marketplace as well as other recently opened lending websites allow people to auction microcredit over the internet and are in line with the disintermediation in financial transactions through the power of enabling technologies. On the online market, the screening of potential borrowers and the monitoring of loan repayment can be delegated to designated group leaders. I find that, despite superior private information, these financial intermediaries perform worse than the average lender with respect to borrower selection. I attribute this to deliberately sending wrong signals. Bivariate probit estimates of the effect of group membership on loan default indicate positive self selection into group loans. That is borrowers with worse observed and unobserved characteristics select into this contract form. I provide evidence that this is due to a missleading group reputation system that is driven by a short term incentive design, which was introduced by the platform to expand the market and has been discontinued. I further find that, after controlling for this group growth driven selection effect, group affiliation per se significantly reduces the probability of loan default.

 

Download this ZEW Discussion Paper from our ftp server:

http://ftp.zew.de/pub/zew-docs/dp/dp17073.pdf 

 

 

..........................................................................................................

 

Discussion Paper No. 17-074

 

The Organizational Design of High-Tech Startups and Product Innovation

 

Christoph Grimpe, Martin Murmann, and Wolfgang Sofka

 

Abstract

We investigate whether appointing a middle management level affects startups’ innovation performance. Additional hierarchical levels are often suspected to restrict innovative activities.

However, founders’ capacities for information processing and resource allocation are usually strongly limited while, at the same time, R&D decisions are among the most consequential choices of startups. We argue that middle management is positively related to introducing product innovations because it improves the success rates from recombining existing knowledge as well as managing R&D personnel. In addition, we suggest that the effectiveness of these mechanisms depends on the riskiness of a startup’s business opportunity. Based on a sample of German high-tech startups, we find support for our conjectures.

 

Download this ZEW Discussion Paper from our ftp server:

http://ftp.zew.de/pub/zew-docs/dp/dp17074.pdf

 

............................................................................................................ 

Falls Sie diesen Service nicht mehr wünschen, benachrichtigen Sie uns unter
Vertrieb@zew.de
 
If you are no longer interested in receiving this service please give notice to 
Vertrieb@zew.de

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Kerstin Heres
Special Library & Distribution
• Service Departement Information & Communication
Tel.: +49 621 1235-130
E-Mail: Kerstin.Heres@zew.de

Internet: www.zew.de - www.zew.eu - twitter.com/ZEW

-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Zentrum für Europäische Wirtschaftsforschung GmbH (ZEW), L7,1, 68161 Mannheim
Centre for European Economic Research, L7,1, 68161 Mannheim, Germany
Sitz der Gesellschaft: Mannheim - Amtsgericht Mannheim HRB 6554 ǀ Seat of the Company: Mannheim - Local Court Mannheim HRB 6554
Aufsichtsratsvorsitzende: Ministerin Theresia Bauer MdL ǀ Chairwoman of the Supervisory Board: Minister Theresia Bauer MdL
Geschaeftsfuehrer: Prof. Achim Wambach, PhD, Thomas Kohl ǀ Executive Directors: Prof. Achim Wambach, PhD, Thomas Kohl