@article{CoviEydam2020,
  author    = {Covi, Giovanni and Eydam, Ulrich},
  title     = {End of the sovereign-bank doom loop in the European Union?},
  series = {Journal of evolutionary economics},
  volume    = {30},
  journal   = {Journal of evolutionary economics},
  number    = {1},
  publisher = {Springer},
  address   = {Berlin ; Heidelberg ; New York},
  issn      = {0936-9937},
  doi       = {10.1007/s00191-018-0576-2},
  pages     = {5 -- 30},
  year      = {2020},
  abstract  = {In this paper we examine the relationship between the default risk of banks and sovereigns, i.e. the 'doom-loop'. Specifically, we try to assess the effectiveness of the implementation of the new recovery and resolution framework in the European Union. We use a panel with daily data on European banks and sovereigns ranging from 2012 to 2016 in order to test the effects of the Bank Recovery and Resolution Directive on the two-way feedback process. We find that there was a pronounced feedback loop between banks and sovereigns from 2012 to 2014. However, after the implementation of the European Banking Union, in 2015/2016, the magnitude of the doom-loop decreased and the spillovers became not statistically significant. Furthermore, our results suggest that the implementation of the new resolution framework is a suitable candidate to explain this finding. Overall, the results are robust across several specifications.},
  language  = {en}
}
@phdthesis{Eydam2021,
  author    = {Eydam, Ulrich},
  title     = {Essays on Macroeconomics},
  school      = {Universit{\"a}t Potsdam},
  pages     = {161},
  year      = {2021},
  abstract  = {This dissertation consists of four self-contained papers. Each paper deals with a specific macroeconomic question. The first paper assesses the distributional implications of environmental policies from a general equilibrium macroeconomic perspective. I develop a New-Keynesian model with several types of uncertainties and frictions that incorporates liquidity constrained households. The model is calibrated to match the German economy and the numerical results show that climate policy instruments can be associated with regressive welfare effects. Furthermore, the analysis shows that these effects can be mitigated through an appropriate revenue recycling scheme. The second paper deals with short-run inequality dynamics within a real business cycle model. An empirical evaluation shows that the cyclical components of income inequality, the capital share and real GDP are correlated. We develop tractable representation of common inequality indicators in the general equilibrium model and show that the observed pattern is driven by innovations in the capital share. A Bayesian estimation of the model for the United States with data for the period 1948 to 2017 indicates that the model provides a reasonable fit for the data and successfully replicates the observed pattern of cyclical correlations. The third paper empirically examines the effects of banking regulation on the risk-relationship between sovereigns and banks. Based on a comprehensive data set of the European banking sector, we find that the implementation of the novel European banking regulation framework significantly contributed to a weakening of the risk-link between sovereigns and banks.The fourth paper empirically examines the role of institutional experience for institutional development in transition economies. To capture institutional experience, we develop a novel index, based on historical country records. The results of cross-sectional and panel estimations suggest that institutional experience helps to explain the divergent economic and institutional development in transition economies after the dissolution of the Soviet Union.},
  language  = {de}
}