@techreport{BruttelNithammerStolley2019, type = {Working Paper}, author = {Bruttel, Lisa Verena and Nithammer, Juri and Stolley, Florian}, title = {"Thanks in Advance"}, series = {CEPA Discussion Papers}, journal = {CEPA Discussion Papers}, number = {7}, issn = {2628-653X}, doi = {10.25932/publishup-42770}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-427706}, pages = {18}, year = {2019}, abstract = {This paper studies the effect of the commonly used phrase "thanks in advance" on compliance with a small request. In a controlled laboratory experiment we ask participants to give a detailed answer to an open question. The treatment variable is whether or not they see the phrase "thanks in advance." Our participants react to the treatment by exerting less effort in answering the request even though they perceive the phrase as polite.}, language = {en} } @techreport{Ziemann2022, type = {Working Paper}, author = {Ziemann, Niklas}, title = {You will receive your money next week!}, series = {CEPA Discussion Papers}, journal = {CEPA Discussion Papers}, number = {56}, address = {Potsdam}, issn = {2628-653X}, doi = {10.25932/publishup-56398}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-563983}, pages = {24}, year = {2022}, abstract = {Against the background of the increasingly discussed "Linguistic Saving Hypothesis" (Chen, 2013), I studied whether the targeted use of a present tense (close tense) and a future tense (distant tense) within the same language have an impact on intertemporal decision-making. In a monetarily incentivized laboratory experiment in Germany, I implemented two different treatments on intertemporal choices. The treatments differed in the tense in which I referred to future rewards. My results show that individuals prefer to a greater extent rewards which are associated with a present tense (close tense). This result is in line with my prediction and the first empirical support for the Linguistic Saving Hypothesis within one language. However, this result holds exclusively for males. Females seem to be unaffected by the linguistic manipulation. I discuss my findings in the context of "gender-as-culture" as well as their potential policy-implications.}, language = {en} } @techreport{Gohl2023, type = {Working Paper}, author = {Gohl, Niklas}, title = {Working Longer, Working Stronger?}, series = {CEPA Discussion Papers}, journal = {CEPA Discussion Papers}, number = {63}, issn = {2628-653X}, doi = {10.25932/publishup-58527}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-585275}, pages = {62}, year = {2023}, abstract = {Leveraging two cohort-specific pension reforms, this paper estimates the forward-looking effects of an exogenous increase in the working horizon on (un)employment behaviour for individuals with a long remaining statutory working life. Using difference-in-differences and regression discontinuity approaches based on administrative and survey data, I show that a longer legal working horizon increases individuals' subjective expectations about the length of their work life, raises the probability of employment, decreases the probability of unemployment, and increases the intensity of job search among the unemployed. Heterogeneity analyses show that the demonstrated employment effects are strongest for women and in occupations with comparatively low physical intensity, i.e., occupations that can be performed at older ages.}, language = {en} } @techreport{SondergeldWrohlich2023, type = {Working Paper}, author = {Sondergeld, Virginia and Wrohlich, Katharina}, title = {Women in management and the gender pay gap}, series = {CEPA Discussion Papers}, journal = {CEPA Discussion Papers}, number = {66}, issn = {2628-653X}, doi = {10.25932/publishup-60581}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-605813}, pages = {31}, year = {2023}, abstract = {We analyze the impact of women's managerial representation on the gender pay gap among employees on the establishment level using German Linked-Employer-Employee-Data from the years 2004 to 2018. For identification of a causal effect we employ a panel model with establishment fixed effects and industry-specific time dummies. Our results show that a higher share of women in management significantly reduces the gender pay gap within the firm. An increase in the share of women in first-level management e.g. from zero to above 33 percent decreases the adjusted gender pay gap from a baseline of 15 percent by 1.2 percentage points, i.e. to roughly 14 percent. The effect is stronger for women in second-level than first-level management, indicating that women managers with closer interactions with their subordinates have a higher impact on the gender pay gap than women on higher management levels. The results are similar for East and West Germany, despite the lower gender pay gap and more gender egalitarian social norms in East Germany. From a policy perspective, we conclude that increasing the number of women in management positions has the potential to reduce the gender pay gap to a limited extent. However, further policy measures will be needed in order to fully close the gender gap in pay.}, language = {en} } @techreport{CaliendoFossenKritikos2019, type = {Working Paper}, author = {Caliendo, Marco and Fossen, Frank M. and Kritikos, Alexander}, title = {What Makes an Employer?}, series = {CEPA Discussion Papers}, journal = {CEPA Discussion Papers}, number = {13}, issn = {2628-653X}, doi = {10.25932/publishup-43736}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-437360}, year = {2019}, abstract = {As the policy debate on entrepreneurship increasingly centers on firm growth in terms of job creation, it is important to better understand which variables influence the first hiring decision and which ones influence the subsequent survival as an employer. Using the German Socio-economic Panel (SOEP), we analyze what role individual characteristics of entrepreneurs play in sustainable job creation. While human and social capital variables positively influence the hiring decision and the survival as an employer in the same direction, we show that none of the personality traits affect the two outcomes in the same way. Some traits are only relevant for survival as an employer but do not influence the hiring decision, other traits even unfold a revolving door effect, in the sense that employers tend to fail due to the same characteristics that positively influenced their hiring decision.}, language = {en} } @techreport{EydamLeupold2023, type = {Working Paper}, author = {Eydam, Ulrich and Leupold, Florian}, title = {What is it good for?}, series = {CEPA Discussion Papers}, journal = {CEPA Discussion Papers}, number = {65}, issn = {2628-653X}, doi = {10.25932/publishup-59796}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-597966}, pages = {37}, year = {2023}, abstract = {Military conflicts and wars affect a country's development in various dimensions. Rising inflation rates are a potentially important economic effect associated with conflict. High inflation can undermine investment, weigh on private consumption, and threaten macroeconomic stability. Furthermore, these effects are not necessarily restricted to the locality of the conflict, but can also spill over to other countries. Therefore, to understand how conflict affects the economy and to make a more comprehensive assessment of the costs of armed conflict, it is important to take inflationary effects into account. To disentangle the conflict-inflation-nexus and to quantify this relationship, we conduct a panel analysis for 175 countries over the period 1950-2019. To capture indirect inflationary effects, we construct a distance based spillover index. In general, the results of our analysis confirm a statistically significant positive direct association between conflicts and inflation rates. This finding is robust across various model specifications. Moreover, our results indicate that conflict induced inflation is not solely driven by increasing money supply. Furthermore, we document a statistically significant positive indirect association between conflicts and inflation rates in uninvolved countries.}, language = {en} } @techreport{BacheletKalkuhlKoch2022, type = {Working Paper}, author = {Bachelet, Marion and Kalkuhl, Matthias and Koch, Nicolas}, title = {What if working from home will stick?}, series = {CEPA Discussion Papers}, journal = {CEPA Discussion Papers}, number = {41}, issn = {2628-653X}, doi = {10.25932/publishup-53238}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-532384}, pages = {28}, year = {2022}, abstract = {The COVID-19 pandemic created the largest experiment in working from home. We study how persistent telework may change energy and transport consumption and costs in Germany to assess the distributional and environmental implications when working from home will stick. Based on data from the German Microcensus and available classifications of working-from-home feasibility for different occupations, we calculate the change in energy consumption and travel to work when 15\% of employees work full time from home. Our findings suggest that telework translates into an annual increase in heating energy expenditure of 110 euros per worker and a decrease in transport expenditure of 840 euros per worker. All income groups would gain from telework but high-income workers gain twice as much as low-income workers. The value of time saving is between 1.3 and 6 times greater than the savings from reduced travel costs and almost 9 times higher for high-income workers than low-income workers. The direct effects on CO₂ emissions due to reduced car commuting amount to 4.5 millions tons of CO₂, representing around 3 percent of carbon emissions in the transport sector.}, language = {en} } @techreport{BorckSchrauth2022, type = {Working Paper}, author = {Borck, Rainald and Schrauth, Philipp}, title = {Urban pollution}, series = {CEPA Discussion Papers}, journal = {CEPA Discussion Papers}, number = {60}, issn = {2628-653X}, doi = {10.25932/publishup-57204}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-572049}, pages = {48}, year = {2022}, abstract = {We use worldwide satellite data to analyse how population size and density affect urban pollution. We find that density significantly increases pollution exposure. Looking only at urban areas, we find that population size affects exposure more than density. Moreover, the effect is driven mostly by population commuting to core cities rather than the core city population itself. We analyse heterogeneity by geography and income levels. By and large, the influence of population on pollution is greatest in Asia and middle-income countries. A counterfactual simulation shows that PM2.5 exposure would fall by up to 36\% and NO2 exposure up to 53\% if within countries population size were equalized across all cities.}, language = {en} } @techreport{GohlSchrauth2022, type = {Working Paper}, author = {Gohl, Niklas and Schrauth, Philipp}, title = {Ticket to Paradise?}, series = {CEPA Discussion Papers}, journal = {CEPA Discussion Papers}, number = {50}, issn = {2628-653X}, doi = {10.25932/publishup-55846}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-558466}, pages = {20}, year = {2022}, abstract = {This paper provides novel evidence on the impact of public transport subsidies on air pollution. We obtain causal estimates by leveraging a unique policy intervention in Germany that temporarily reduced nationwide prices for regional public transport to a monthly flat rate price of 9 Euros. Us-ing DiD estimation strategies on air pollutant data, we show that this intervention causally reduced a benchmark air pollution index by more than six percent. Our results illustrate that public transport subsidies - especially in the context of spatially constrained cities - offer a viable alterna-tive for policymakers and city planers to improve air quality, which has been shown to crucially affect health outcomes.}, language = {en} } @techreport{Brenner2021, type = {Working Paper}, author = {Brenner, Andri}, title = {The Social Power of Spillover Effects}, series = {CEPA Discussion Papers}, journal = {CEPA Discussion Papers}, number = {35}, issn = {2628-653X}, doi = {10.25932/publishup-51109}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-511098}, pages = {60}, year = {2021}, abstract = {Economists are worried that the lack of property rights to natural capital goods jeopardizes the sustainability of the economic growth miracle that has existed since industrialization. This article questions their position. A vertical innovation model with a portfolio of technologies for abatement, adaptation, and general (Harrod-neutral) technology reveals that environmental damage spillovers have a comparable effect on research profits as technology spillovers so that the social costs of depleting public natural capital are internalized. As long as there is free access to information and technology, growth is sustainable and the allocation of research efforts among alternative technologies is socially optimal. While there still is a need to address externalities from monopolistic research markets, no environmental policy is necessary. These results suggest that environmental externalities may originate in restricted access to information and technology, demonstrating that (i) information has a similar effect as an environmental tax and (ii) knowledge and technology transfers have an impact comparable to that of subsidies for research in green technology.}, language = {en} } @techreport{AmorosoHerrmannKritikos2023, type = {Working Paper}, author = {Amoroso, Sara and Herrmann, Benedikt and Kritikos, Alexander}, title = {The Role of Regulation and Regional Government Quality for High Growth Firms}, series = {CEPA Discussion Papers}, journal = {CEPA Discussion Papers}, number = {71}, issn = {2628-653X}, doi = {10.25932/publishup-61277}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-612771}, pages = {32}, year = {2023}, abstract = {High growth firms (HGFs) are important for job creation and considered to be precursors of economic growth. We investigate how formal institutions, like product- and labor-market regulations, as well as the quality of regional governments that implement these regulations, affect HGF development across European regions. Using data from Eurostat, OECD, WEF, and Gothenburg University, we show that both regulatory stringency and the quality of the regional government influence the regional shares of HGFs. More importantly, we find that the effect of labor- and product-market regulations ultimately depends on the quality of regional governments: in regions with high quality of government, the share of HGFs is neither affected by the level of product market regulation, nor by more or less flexibility in hiring and firing practices. Our findings contribute to the debate on the effects of regulations by showing that regulations are not, per se, "good, bad, and ugly", rather their impact depends on the efficiency of regional governments. Our paper offers important building blocks to develop tailored policy measures that may influence the development of HGFs in a region.}, language = {en} } @techreport{KritikosSchierschStiel2021, type = {Working Paper}, author = {Kritikos, Alexander and Schiersch, Alexander and Stiel, Caroline}, title = {The productivity puzzle in business services}, series = {CEPA Discussion Papers}, journal = {CEPA Discussion Papers}, number = {37}, issn = {2628-653X}, doi = {10.25932/publishup-51453}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-514536}, pages = {37}, year = {2021}, abstract = {In Germany, the productivity of professional services, a sector dominated by micro and small firms, declined by 40 percent between 1995 and 2014. This productivity decline also holds true for professional services in other European countries. Using a German firm-level dataset of 700,000 observations between 2003 and 2017, we analyze this largely uncovered phenomenon among professional services, the 4th largest sector in the EU15 business economy, which provide important intermediate services for the rest of the economy. We show that changes in the value chain explain about half of the decline and the increase in part-time employment is a further minor part of the decline. In contrast to expectations, the entry of micro and small firms, despite their lower productivity levels, is not responsible for the decline. We also cannot confirm the conjecture that weakening competition allows unproductive firms to remain in the market.}, language = {en} } @techreport{AndresBruttelFriedrichsen2021, type = {Working Paper}, author = {Andres, Maximilian and Bruttel, Lisa Verena and Friedrichsen, Jana}, title = {The Leniency Rule Revisited: Experiments on Cartel Formation with Open Communication}, series = {CEPA Discussion Papers}, journal = {CEPA Discussion Papers}, number = {24}, issn = {2628-653X}, doi = {10.25932/publishup-49169}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-491696}, pages = {62}, year = {2021}, abstract = {The experimental literature on antitrust enforcement provides robust evidence that communication plays an important role for the formation and stability of cartels. We extend these studies through a design that distinguishes between innocuous communication and communication about a cartel, sanctioning only the latter. To this aim, we introduce a participant in the role of the competition authority, who is properly incentivized to judge communication content and price setting behavior of the firms. Using this novel design, we revisit the question whether a leniency rule successfully destabilizes cartels. In contrast to existing experimental studies, we find that a leniency rule does not affect cartelization. We discuss potential explanations for this contrasting result.}, language = {en} } @techreport{CaliendoKuennMahlstedt2022, type = {Working Paper}, author = {Caliendo, Marco and K{\"u}nn, Steffen and Mahlstedt, Robert}, title = {The Intended and Unintended Effects of Promoting Labor Market Mobility}, series = {CEPA Discussion Papers}, journal = {CEPA Discussion Papers}, issn = {2628-653X}, doi = {10.25932/publishup-53522}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-535229}, pages = {49}, year = {2022}, abstract = {Subsidizing the geographical mobility of unemployed workers may improve welfare by relaxing their financial constraints and allowing them to find jobs in more prosperous regions. We exploit regional variation in the promotion of mobility programs along administrative borders of German employment agency districts to investigate the causal effect of offering such financial incentives on the job search behavior and labor market integration of unemployed workers. We show that promoting mobility - as intended - causes job seekers to increase their search radius, apply for and accept distant jobs. At the same time, local job search is reduced with adverse consequences for reemployment and earnings. These unintended negative effects are provoked by spatial search frictions. Overall, the unconditional provision of mobility programs harms the welfare of unemployed job seekers.}, language = {en} } @techreport{CaliendoKritikosStier2022, type = {Working Paper}, author = {Caliendo, Marco and Kritikos, Alexander and Stier, Claudia}, title = {The Influence of Start-up Motivation on Entrepreneurial Performance}, series = {CEPA Discussion Papers}, journal = {CEPA Discussion Papers}, number = {59}, issn = {2628-653X}, doi = {10.25932/publishup-57115}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-571152}, pages = {43}, year = {2022}, abstract = {Predicting entrepreneurial development based on individual and business-related characteristics is a key objective of entrepreneurship research. In this context, we investigate whether the motives of becoming an entrepreneur influence the subsequent entrepreneurial development. In our analysis, we examine a broad range of business outcomes including survival and income, as well as job creation, expansion and innovation activities for up to 40 months after business formation. Using self-determination theory as conceptual background, we aggregate the start-up motives into a continuous motivational index. We show - based on a unique dataset of German start-ups from unemployment and non-unemployment - that the later business performance is better, the higher they score on this index. Effects are particularly strong for growth oriented outcomes like innovation and expansion activities. In a next step, we examine three underlying motivational categories that we term opportunity, career ambition, and necessity. We show that individuals driven by opportunity motives perform better in terms of innovation and business expansion activities, while career ambition is positively associated with survival, income, and the probability of hiring employees. All effects are robust to the inclusion of a large battery of covariates that are proven to be important determinants of entrepreneurial performance.}, language = {en} } @techreport{AmannRzepka2021, type = {Working Paper}, author = {Amann, Erwin and Rzepka, Sylvi}, title = {The Effect of Goal-Setting Prompts in a Blended Learning Environment}, series = {CEPA Discussion Papers}, journal = {CEPA Discussion Papers}, number = {25}, issn = {2628-653X}, doi = {10.25932/publishup-49347}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-493476}, pages = {22, vi}, year = {2021}, abstract = {We investigate how inviting students to set task-based goals affects usage of an online learning platform and course performance. We design and implement a randomized field experiment in a large mandatory economics course with blended learning elements. The low-cost treatment induces students to use the online learning system more often, more intensively, and to begin earlier with exam preparation. Treated students perform better in the course than the control group: they are 18.8\% (0.20 SD) more likely to pass the exam and earn 6.7\% (0.19 SD) more points on the exam. There is no evidence that treated students spend significantly more time, rather they tend to shift to more productive learning methods. The heterogeneity analysis suggests that higher treatment effects are associated with higher levels of behavioral bias but also with poor early course behavior.}, language = {en} } @techreport{Eydam2021, type = {Working Paper}, author = {Eydam, Ulrich}, title = {The Distributional Implications of Climate Policies Under Uncertainty}, series = {CEPA Discussion Papers}, journal = {CEPA Discussion Papers}, number = {33}, issn = {2628-653X}, doi = {10.25932/publishup-50895}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-508950}, pages = {53}, year = {2021}, abstract = {Promoting the decarbonization of economic activity through climate policies raises many questions. From a macroeconomic perspective, it is important to understand how these policies perform under uncertainty, how they affect short-run dynamics and to what extent they have distributional effects. In addition, uncertainties directly associated with climate policies, such as uncertainty about the carbon budget or emission intensities, become relevant aspects. We study the implications of emission reduction schemes within a Two-Agent New-Keynesian (TANK) model. This quantitative exercise, based on data for the German economy, provides various insights. In the light of frictions and fluctuations, compared to other instruments, a carbon price (i.e. tax) is associated with lower volatility in output and consumption. In terms of aggregate welfare, price instruments are found to be preferable. Conditional on the distribution of revenues from climate policies, quantity instruments can exert regressive effects, posing a larger economic loss on wealth-poor households, whereas price instruments are moderately progressive. Finally, we find that unexpected changes in climate policies can induce substantial aggregate adjustments. With uncertainty about the carbon budget, the costs of adjustment are larger under quantity instruments.}, language = {en} } @techreport{CaliendoSchroederWittbrodt2019, type = {Working Paper}, author = {Caliendo, Marco and Schr{\"o}der, Carsten and Wittbrodt, Linda}, title = {The Causal Effects of the Minimum Wage Introduction in Germany}, series = {CEPA Discussion Papers}, journal = {CEPA Discussion Papers}, number = {1}, issn = {2628-653X}, doi = {10.25932/publishup-42692}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-426929}, year = {2019}, abstract = {In 2015, Germany introduced a statutory hourly minimum wage that was not only universally binding but also set at a relatively high level. We discuss the short-run effects of this new minimum wage on a wide set of socio-economic outcomes, such as employment and working hours, earnings and wage inequality, dependent and self-employment, as well as reservation wages and satisfaction. We also discuss difficulties in the implementation of the minimum wage and the measurement of its effects related to non-compliance and suitability of data sources. Two years after the minimum wage introduction, the following conclusions can be drawn: while hourly wages increased for low-wage earners, some small negative employment effects are also identifiable. The effects on aspired goals, such as poverty and inequality reduction, have not materialized in the short run. Instead, a tendency to reduce working hours is found, which alleviates the desired positive impact on monthly income. Additionally, the level of non-compliance was substantial in the short run, thus drawing attention to problems when implementing such a wide-reaching policy.}, language = {en} } @techreport{Schrauth2022, type = {Working Paper}, author = {Schrauth, Philipp}, title = {The Causal Effect of Cycling Infrastructure on Traffic and Accidents}, series = {CEPA Discussion Papers}, journal = {CEPA Discussion Papers}, number = {48}, issn = {2628-653X}, doi = {10.25932/publishup-55335}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-553359}, pages = {56}, year = {2022}, abstract = {This paper analyzes the effect of new bicycle lanes on traffic volume, congestion, and accidents. Crucially, the new bike lanes replace existing car lanes thereby reducing available space for motorized traffic. In order to obtain causal estimates, I exploit the quasi-random timing and location of the newly built cycle lanes. Using an event study design, a two-way fixed effects model and the synthetic control group method on geo-coded data, I show that the construction of pop-up bike lanes significantly reduced average car speed by 8 to 12 percentage points (p.p.) and up to 16 p.p. in peak traffic hours. In contrast, the results for car volume are modest, while the data does not allow for a conclusive judgment of accidents.}, language = {en} } @techreport{BruttelFelgendreherGuethetal.2019, type = {Working Paper}, author = {Bruttel, Lisa Verena and Felgendreher, Simon and G{\"u}th, Werner and Hertwig, Ralph}, title = {Strategic ignorance in repeated prisoners' dilemma experiments and its effects on the dynamics of voluntary cooperation}, series = {CEPA Discussion Papers}, journal = {CEPA Discussion Papers}, number = {10}, issn = {2628-653X}, doi = {10.25932/publishup-43188}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-431881}, pages = {30}, year = {2019}, abstract = {Being ignorant of key aspects of a strategic interaction can represent an advantage rather than a handicap. We study one particular context in which ignorance can be beneficial: iterated strategic interactions in which voluntary cooperation may be sustained into the final round if players voluntarily forego knowledge about the time horizon. We experimentally examine this option to remain ignorant about the time horizon in a finitely repeated two-person prisoners' dilemma game. We confirm that pairs without horizon knowledge avoid the drop in cooperation that otherwise occurs toward the end of the game. However, this effect is superposed by cooperation declining more rapidly in pairs without horizon knowledge during the middle phase of the game, especially if players do not know that the other player also wanted to remain ignorant of the time horizon.}, language = {en} } @techreport{HinzStammannWanner2021, type = {Working Paper}, author = {Hinz, Julian and Stammann, Amrei and Wanner, Joschka}, title = {State Dependence and Unobserved Heterogeneity in the Extensive Margin of Trade}, series = {CEPA Discussion Papers}, journal = {CEPA Discussion Papers}, issn = {2628-653X}, doi = {10.25932/publishup-51191}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-511919}, pages = {62}, year = {2021}, abstract = {We study the role and drivers of persistence in the extensive margin of bilateral trade. Motivated by a stylized heterogeneous firms model of international trade with market entry costs, we consider dynamic three-way fixed effects binary choice models and study the corresponding incidental parameter problem. The standard maximum likelihood estimator is consistent under asymptotics where all panel dimensions grow at a constant rate, but it has an asymptotic bias in its limiting distribution, invalidating inference even in situations where the bias appears to be small. Thus, we propose two different bias-corrected estimators. Monte Carlo simulations confirm their desirable statistical properties. We apply these estimators in a reassessment of the most commonly studied determinants of the extensive margin of trade. Both true state dependence and unobserved heterogeneity contribute considerably to trade persistence and taking this persistence into account matters significantly in identifying the effects of trade policies on the extensive margin.}, language = {en} } @techreport{CaliendoMahlstedtvandenBergetal.2020, type = {Working Paper}, author = {Caliendo, Marco and Mahlstedt, Robert and van den Berg, Gerard J. and Vikstr{\"o}m, Johan}, title = {Side Effects of Labor Market Policies}, series = {CEPA Discussion Papers}, journal = {CEPA Discussion Papers}, number = {22}, issn = {2628-653X}, doi = {10.25932/publishup-47883}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-478839}, pages = {33}, year = {2020}, abstract = {Labor market policy tools such as training and sanctions are commonly used to help bring workers back to work. By analogy to medical treatments, the individual exposure to these tools may have side effects. We study effects on health using individual-level population registers on labor market events outcomes, drug prescriptions and sickness absence, comparing outcomes before and after exposure to training and sanctions. We find that training improves cardiovascular and mental health and lowers sickness absence. The results suggest that this is not due to improved employment prospects but rather to instantaneous features of participation such as, perhaps, the adoption of a more rigorous daily routine. Unemployment benefits sanctions cause a short-run deterioration of mental health, possibly due higher stress levels, but this tapers out quickly.}, language = {en} } @techreport{CaliendoKritikosRodriguezetal.2023, type = {Working Paper}, author = {Caliendo, Marco and Kritikos, Alexander and Rodriguez, Daniel and Stier, Claudia}, title = {Self-Efficacy and Entrepreneurial Performance of Start-Ups}, series = {CEPA Discussion Papers}, journal = {CEPA Discussion Papers}, number = {61}, issn = {2628-653X}, doi = {10.25932/publishup-57252}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-572527}, pages = {41}, year = {2023}, abstract = {Self-efficacy reflects the self-belief that one can persistently perform difficult and novel tasks while coping with adversity. As such beliefs reflect how individuals behave, think, and act, they are key for successful entrepreneurial activities. While existing literature mainly analyzes the influence of the task-related construct of entrepreneurial self-efficacy, we take a different perspective and investigate, based on a representative sample of 1,405 German business founders, how the personality characteristic of generalized self-efficacy influences start-up performance as measured by a broad set of business outcomes up to 19 months after business creation. Outcomes include start-up survival and entrepreneurial income, as well as growth-oriented outcomes such as job creation and innovation. We find statistically significant and economically important positive effects of high scores of self-efficacy on start-up survival and entrepreneurial income, which become even stronger when focusing on the growth-oriented outcome of innovation. Furthermore, we observe that generalized self-efficacy is similarly distributed between female and male business founders, with effects being partly stronger for female entrepreneurs. Our findings are important for policy instruments that are meant to support firm growth by facilitating the design of more target-oriented offers for training, coaching, and entrepreneurial incubators.}, language = {en} } @techreport{CaliendoCobbClarkObstetal.2020, type = {Working Paper}, author = {Caliendo, Marco and Cobb-Clark, Deborah A. and Obst, Cosima and Uhlendorff, Arne}, title = {Risk Preferences and Training Investments}, series = {CEPA Discussion Papers}, journal = {CEPA Discussion Papers}, number = {23}, issn = {2628-653X}, doi = {10.25932/publishup-48092}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-480927}, pages = {35}, year = {2020}, abstract = {We analyze workers' risk preferences and training investments. Our conceptual framework differentiates between the investment risk and insurance mechanisms underpinning training decisions. Investment risk leads risk-averse workers to train less; they undertake more training if it insures them against future losses. We use the German Socio-Economic Panel (SOEP) to demonstrate that risk affinity is associated with more training, implying that, on average, investment risks dominate the insurance benefits of training. Crucially, this relationship is evident only for general training; there is no relationship between risk attitudes and specific training. Thus, as expected, risk preferences matter more when skills are transferable - and workers have a vested interest in training outcomes - than when they are not. Finally, we provide evidence that the insurance benefits of training are concentrated among workers with uncertain employment relationships or limited access to public insurance schemes.}, language = {en} } @techreport{HuberRolvering2023, type = {Working Paper}, author = {Huber, Katrin and Rolvering, Geske}, title = {Public child care and mothers' career trajectories}, series = {CEPA Discussion Papers}, journal = {CEPA Discussion Papers}, number = {64}, issn = {2628-653X}, doi = {10.25932/publishup-58731}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-587310}, pages = {33}, year = {2023}, abstract = {This paper studies the effect of public child care on mothers' career trajectories. To this end, we combine county-level data on child care coverage with detailed individual-level information from the German social security records and exploit a set of German reforms leading to a substantial temporal and spatial variation in child care coverage for children under the age of three. We conduct an event study approach that investigates the labor market outcomes of mothers in the years around the birth of their first child. We thereby explore career trajectories, both in terms of quantity and quality of employment. We find that public child care improves maternal labor supply in the years immediately following childbirth. However, the results on quality-related outcomes suggest that the effect of child care provision does not reach far beyond pure employment effects. These results do not change for mothers with different 'career costs of children'.}, language = {en} } @techreport{BorckOshiroSatō2022, type = {Working Paper}, author = {Borck, Rainald and Oshiro, Jun and Satō, Yasuhiro}, title = {Property tax competition}, series = {CEPA Discussion Papers}, journal = {CEPA Discussion Papers}, issn = {2628-653X}, doi = {10.25932/publishup-56222}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-562228}, pages = {71}, year = {2022}, abstract = {We develop a model of property taxation and characterize equilibria under three alternative taxa-tion regimes often used in the public finance literature: decentralized taxation, centralized taxation, and "rent seeking" regimes. We show that decentralized taxation results in inefficiently high tax rates, whereas centralized taxation yields a common optimal tax rate, and tax rates in the rent-seeking regime can be either inefficiently high or low. We quantify the effects of switching from the observed tax system to the three regimes for Japan and Germany. The decentralized or rent-seeking regime best describes the Japanese tax system, whereas the centralized regime does so for Germany. We also quantify the welfare effects of regime changes.}, language = {en} } @techreport{BruttelEisenkopfNithammer2024, type = {Working Paper}, author = {Bruttel, Lisa Verena and Eisenkopf, Gerald and Nithammer, Juri}, title = {Pre-election communication in public good games with endogenous leaders}, series = {CEPA Discussion Papers}, journal = {CEPA Discussion Papers}, number = {73}, issn = {2628-653X}, doi = {10.25932/publishup-62395}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-623952}, pages = {28}, year = {2024}, abstract = {Leadership plays an important role for the efficient and fair solution of social dilemmas but the effectiveness of a leader can vary substantially. Two main factors of leadership impact are the ability to induce high contributions by all group members and the (expected) fair use of power. Participants in our experiment decide about contributions to a public good. After all contributions are made, the leader can choose how much of the joint earnings to assign to herself; the remainder is distributed equally among the followers. Using machine learning techniques, we study whether the content of initial open statements by the group members predicts their behavior as a leader and whether groups are able to identify such clues and endogenously appoint a "good" leader to solve the dilemma. We find that leaders who promise fairness are more likely to behave fairly, and that followers appoint as leaders those who write more explicitly about fairness and efficiency. However, in their contribution decision, followers focus on the leader's first-move contribution and place less importance on the content of the leader's statements.}, language = {en} } @techreport{BorckSchrauth2019, type = {Working Paper}, author = {Borck, Rainald and Schrauth, Philipp}, title = {Population density and urban air quality}, series = {CEPA Discussion Papers}, journal = {CEPA Discussion Papers}, number = {8}, issn = {2628-653X}, doi = {10.25932/publishup-42771}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-427719}, pages = {53}, year = {2019}, abstract = {We use panel data from Germany to analyze the effect of population density on urban air pollution (nitrogen oxides, particulate matter and ozone). To address unobserved heterogeneity and omitted variables, we present long difference/fixed effects estimates and instrumental variables estimates, using historical population and soil quality as instruments. Our preferred estimates imply that a one-standard deviation increase in population density increases air pollution by 3-12\%.}, language = {en} } @techreport{KalkuhlFranksGruneretal.2023, type = {Working Paper}, author = {Kalkuhl, Matthias and Franks, Max and Gruner, Friedemann and Lessmann, Kai and Edenhofer, Ottmar}, title = {Pigou's Advice and Sisyphus' Warning}, series = {CEPA Discussion Papers}, journal = {CEPA Discussion Papers}, number = {62}, issn = {2628-653X}, doi = {10.25932/publishup-57588}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-575882}, pages = {66}, year = {2023}, abstract = {Carbon dioxide removal from the atmosphere is becoming an important option to achieve net zero climate targets. This paper develops a welfare and public economics perspective on optimal policies for carbon removal and storage in non-permanent sinks like forests, soil, oceans, wood products or chemical products. We derive a new metric for the valuation of non-permanent carbon storage, the social cost of carbon removal (SCC-R), which embeds also the conventional social cost of carbon emissions. We show that the contribution of CDR is to create new carbon sinks that should be used to reduce transition costs, even if the stored carbon is released to the atmosphere eventually. Importantly, CDR does not raise the ambition of optimal temperature levels unless initial atmospheric carbon stocks are excessively high. For high initial atmospheric carbon stocks, CDR allows to reduce the optimal temperature below initial levels. Finally, we characterize three different policy regimes that ensure an optimal deployment of carbon removal: downstream carbon pricing, upstream carbon pricing, and carbon storage pricing. The policy regimes differ in their informational and institutional requirements regarding monitoring, liability and financing.}, language = {en} } @techreport{CaliendoGraeberKritikosetal.2022, type = {Working Paper}, author = {Caliendo, Marco and Graeber, Daniel and Kritikos, Alexander and Seebauer, Johannes}, title = {Pandemic Depression: COVID-19 and the Mental Health of the Self-Employed}, series = {CEPA Discussion Papers}, journal = {CEPA Discussion Papers}, number = {46}, issn = {2628-653X}, doi = {10.25932/publishup-54899}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-548999}, pages = {65}, year = {2022}, abstract = {We investigate the effect of the COVID-19 pandemic on self-employed people's mental health. Using representative longitudinal survey data from Germany, we reveal differential effects by gender: whereas self-employed women experienced a substantial deterioration in their mental health, self-employed men displayed no significant changes up to early 2021. Financial losses are important in explaining these differences. In addition, we find larger mental health responses among self-employed women who were directly affected by government-imposed restrictions and bore an increased childcare burden due to school and daycare closures. We also find that self-employed individuals who are more resilient coped better with the crisis.}, language = {en} } @techreport{FranksKalkuhlLessmann2022, type = {Working Paper}, author = {Franks, Max and Kalkuhl, Matthias and Lessmann, Kai}, title = {Optimal Pricing for Carbon Dioxide Removal Under Inter-Regional Leakage}, series = {CEPA Discussion Papers}, journal = {CEPA Discussion Papers}, number = {43}, issn = {2628-653X}, doi = {10.25932/publishup-53808}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-538080}, pages = {12}, year = {2022}, abstract = {Carbon dioxide removal (CDR) moves atmospheric carbon to geological or land-based sinks. In a first-best setting, the optimal use of CDR is achieved by a removal subsidy that equals the optimal carbon tax and marginal damages. We derive second-best subsidies for CDR when no global carbon price exists but a national government implements a unilateral climate policy. We find that the optimal carbon tax differs from an optimal CDR subsidy because of carbon leakage, terms-of-trade and fossil resource rent dynamics. First, the optimal removal subsidy tends to be larger than the carbon tax because of lower supply-side leakage on fossil resource markets. Second, terms-of-trade effects exacerbate this wedge for net resource exporters, implying even larger removal subsidies. Third, the optimal removal subsidy may fall below the carbon tax for resource-poor countries when marginal environmental damages are small.}, language = {en} } @techreport{HaenselFranksKalkuhletal.2021, type = {Working Paper}, author = {H{\"a}nsel, Martin C. and Franks, Max and Kalkuhl, Matthias and Edenhofer, Ottmar}, title = {Optimal carbon taxation and horizontal equity}, series = {CEPA Discussion Papers}, journal = {CEPA Discussion Papers}, number = {28}, issn = {2628-653X}, doi = {10.25932/publishup-49812}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-498128}, pages = {51}, year = {2021}, abstract = {We develop a model of optimal carbon taxation and redistribution taking into account horizontal equity concerns by considering heterogeneous energy efficiencies. By deriving first- and second-best rules for policy instruments including carbon taxes, transfers and energy subsidies, we then investigate analytically how horizontal equity is considered in the social welfare maximizing tax structure. We calibrate the model to German household data and a 30 percent emission reduction goal. Our results show that energy-intensive households should receive more redistributive resources than energy-efficient households if and only if social inequality aversion is sufficiently high. We further find that redistribution of carbon tax revenue via household-specific transfers is the first-best policy. Equal per-capita transfers do not suffer from informational problems, but increase mitigation costs by around 15 percent compared to the first- best for unity inequality aversion. Adding renewable energy subsidies or non-linear energy subsidies, reduces mitigation costs further without relying on observability of households' energy efficiency.}, language = {en} } @techreport{BlanzEydamHeinemannetal.2022, type = {Working Paper}, author = {Blanz, Alkis and Eydam, Ulrich and Heinemann, Maik and Kalkuhl, Matthias}, title = {Optimal carbon pricing with fluctuating energy prices — emission targeting vs. price targeting}, series = {CEPA Discussion Papers}, journal = {CEPA Discussion Papers}, number = {51}, issn = {2628-653X}, doi = {10.25932/publishup-56104}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-561049}, pages = {12}, year = {2022}, abstract = {Prices of primary energy commodities display marked fluctuations over time. Market-based climate policy instruments (e.g., emissions pricing) create incentives to reduce energy consumption by increasing the user cost of fossil energy. This raises the question of whether climate policy should respond to fluctuations in fossil energy prices? We study this question within an environmental dynamic stochastic general equilibrium (E-DSGE) model calibrated on the German economy. Our results indicate that the welfare implications of dynamic emissions pricing crucially depend on how the revenues are used. When revenues are fully absorbed, a reduction in emissions prices stabilizes the economy in response to energy price shocks. However, when revenues are at least partially recycled, a stable emissions price improves overall welfare. This result is robust to different modeling assumptions.}, language = {en} } @techreport{MatthewesVentura2022, type = {Working Paper}, author = {Matthewes, S{\"o}nke Hendrik and Ventura, Guglielmo}, title = {On Track to Success?}, series = {CEPA Discussion Papers}, journal = {CEPA Discussion Papers}, number = {58}, issn = {2628-653X}, doi = {10.25932/publishup-56725}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-567253}, pages = {70}, year = {2022}, abstract = {Many countries consider expanding vocational curricula in secondary education to boost skills and labour market outcomes among non-university-bound students. However, critics fear this could divert other students from more profitable academic education. We study labour market returns to vocational education in England, where until recently students chose between a vocational track, an academic track and quitting education at age 16. Identification is challenging because self-selection is strong and because students' next-best alternatives are unknown. Against this back- drop, we leverage multiple instrumental variables to estimate margin-specific treatment effects, i.e., causal returns to vocational education for students at the margin with academic education and, separately, for students at the margin with quitting education. Identification comes from variation in distance to the nearest vocational provider conditional on distance to the nearest academic provider (and vice-versa), while controlling for granular student, school and neighbourhood characteristics. The analysis is based on population-wide administrative education data linked to tax records. We find that the vast majority of marginal vocational students are indifferent be- tween vocational and academic education. For them, vocational enrolment substantially decreases earnings at age 30. This earnings penalty grows with age and is due to wages, not employment. However, consistent with comparative advantage, the penalty is smaller for students with higher revealed preferences for the vocational track. For the few students at the margin with no further education, we find merely tentative evidence of increased employment and earnings from vocational enrolment.}, language = {en} } @techreport{CaliendoTuebbicke2019, type = {Working Paper}, author = {Caliendo, Marco and T{\"u}bbicke, Stefan}, title = {New Evidence on Long-Term Effects of Start-Up Subsidies}, series = {CEPA Discussion Papers}, journal = {CEPA Discussion Papers}, number = {6}, issn = {2628-653X}, doi = {10.25932/publishup-42679}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-426798}, pages = {41}, year = {2019}, abstract = {The German start-up subsidy (SUS) program for the unemployed has recently undergone a major make-over, altering its institutional setup, adding an additional layer of selection and leading to ambiguous predictions of the program's effectiveness. Using propensity score matching (PSM) as our main empirical approach, we provide estimates of long-term effects of the post-reform subsidy on individual employment prospects and labor market earnings up to 40 months after entering the program. Our results suggest large and persistent long-term effects of the subsidy on employment probabilities and net earned income. These effects are larger than what was estimated for the pre-reform program. Extensive sensitivity analyses within the standard PSM framework reveal that the results are robust to different choices regarding the implementation of the weighting procedure and also with respect to deviations from the conditional independence assumption. As a further assessment of the results' sensitivity, we go beyond the standard selection-on-observables approach and employ an instrumental variable setup using regional variation in the likelihood of receiving treatment. Here, we exploit the fact that the reform increased the discretionary power of local employment agencies in allocating active labor market policy funds, allowing us to obtain a measure of local preferences for SUS as the program of choice. The results based on this approach give rise to similar estimates. Thus, our results indicating that SUS are still an effective active labor market program after the reform do not appear to be driven by "hidden bias".}, language = {en} } @techreport{FelfeKocherRaineretal.2021, type = {Working Paper}, author = {Felfe, Christina and Kocher, Martin and Rainer, Helmut and Saurer, Judith and Siedler, Thomas}, title = {More Opportunity, More Cooperation?}, series = {CEPA Discussion Papers}, journal = {CEPA Discussion Papers}, number = {32}, issn = {2628-653X}, doi = {10.25932/publishup-50864}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-508643}, pages = {63}, year = {2021}, abstract = {Inequality of opportunity, particularly when overlaid with socioeconomic, ethnic, or cultural differences, may limit the scope of cooperation between individuals. A central question, then, is how to overcome such obstacles to cooperation. We study this question in the context of Germany, by asking whether the propensity of immigrant youth to cooperate with native peers was affected by a major integration reform: the introduction of birthright citizenship. Our unique setup exploits data from a large-scale lab-in-the-field experiment in a quasi-experimental evaluation framework. We find that the policy caused male, but not female, immigrants to significantly increase their cooperativeness toward natives. We show that the increase in out-group cooperation among immigrant boys is an outcome of more trust rather than a reflection of stronger other- regarding preferences towards natives. In exploring factors that may explain these behavioral effects, we present evidence that the policy also led to a near-closure of the educational achievement gap between young immigrant men and their native peers. Our results highlight that, through integration interventions, governments can modify prosocial behavior in a way that generates higher levels of efficiency in the interaction between social groups.}, language = {en} } @techreport{BruttelBulutayCornandetal.2022, type = {Working Paper}, author = {Bruttel, Lisa Verena and Bulutay, Muhammed and Cornand, Camille and Heinemann, Frank and Zylbersztejn, Adam}, title = {Measuring strategic-uncertainty attitudes}, series = {CEPA Discussion Papers}, journal = {CEPA Discussion Papers}, number = {54}, issn = {2628-653X}, doi = {10.25932/publishup-56234}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-562340}, pages = {40}, year = {2022}, abstract = {Strategic uncertainty is the uncertainty that players face with respect to the purposeful behavior of other players in an interactive decision situation. Our paper develops a new method for measuring strategic-uncertainty attitudes and distinguishing them from risk and ambiguity attitudes. We vary the source of uncertainty (whether strategic or not) across conditions in a ceteris paribus manner. We elicit certainty equivalents of participating in two strategic 2x2 games (a stag-hunt and a market-entry game) as well as certainty equivalents of related lotteries that yield the same possible payoffs with exogenously given probabilities (risk) and lotteries with unknown probabilities (ambiguity). We provide a structural model of uncertainty attitudes that allows us to measure a preference for or an aversion against the source of uncertainty, as well as optimism or pessimism regarding the desired outcome. We document systematic attitudes towards strategic uncertainty that vary across contexts. Under strategic complementarity [substitutability], the majority of participants tend to be pessimistic [optimistic] regarding the desired outcome. However, preferences for the source of uncertainty are distributed around zero.}, language = {en} } @techreport{CaliendoCobbClarkPfeiferetal.2022, type = {Working Paper}, author = {Caliendo, Marco and Cobb-Clark, Deborah A. and Pfeifer, Harald and Uhlendorff, Arne and Wehner, Caroline}, title = {Managers' Risk Preferences and Firm Training Investments}, series = {CEPA Discussion Papers}, journal = {CEPA Discussion Papers}, number = {44}, issn = {2628-653X}, doi = {10.25932/publishup-53843}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-538439}, pages = {45}, year = {2022}, abstract = {We provide the first estimates of the impact of managers' risk preferences on their training allocation decisions. Our conceptual framework links managers' risk preferences to firms' training decisions through the bonuses they expect to receive. Risk-averse managers are expected to select workers with low turnover risk and invest in specific rather than general training. Empirical evidence supporting these predictions is provided using a novel vignette study embedded in a nationally representative survey of firm managers. Risk-tolerant and risk-averse decision makers have significantly different training preferences. Risk aversion results in increased sensitivity to turnover risk. Managers who are risk-averse offer significantly less general training and, in some cases, are more reluctant to train workers with a history of job mobility. All managers, irrespective of their risk preferences, are sensitive to the investment risk associated with training, avoiding training that is more costly or targets those with less occupational expertise or nearing retirement. This suggests the risks of training are primarily due to the risk that trained workers will leave the firm (turnover risk) rather than the risk that the benefits of training do not outweigh the costs (investment risk).}, language = {en} } @techreport{Obst2022, type = {Working Paper}, author = {Obst, Cosima}, title = {Job Satisfaction and Training Investments}, series = {CEPA Discussion Papers}, journal = {CEPA Discussion Papers}, number = {47}, issn = {2628-653X}, doi = {10.25932/publishup-54912}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-549124}, pages = {46}, year = {2022}, abstract = {Job satisfaction has been found to impact behavioral choices at the workplace. Since levels of satisfaction are not guaranteed to remain high, understanding the consequences of job dissatisfaction is essential. Hence, I analyze the relationship between a worker's job satisfaction and her training investments. Based on my theoretical model, I expect a U-shaped relationship if dissatisfied workers attempt to improve the situation or plan to quit. In contrast, there is an overall positive relationship if dissatisfied workers neglect their duties. Using logit regressions with the Household, Income and Labour Dynamics in Australia (HILDA) survey I find tentative evidence that there is on average an overall positive relationship with a 1 standard deviation increase in job satisfaction being associated with a 1.5\% increased likelihood of participating in training. A closer inspection of the reasons for training as well as quit intentions reveals some hints of a U-shaped relationship. My results highlight the importance of considering the source of dissatisfaction as there are heterogeneous effects along different job satisfaction facets.}, language = {en} } @techreport{Spaeth2021, type = {Working Paper}, author = {Sp{\"a}th, Maximilian}, title = {It's me again… Ask Avoidance and the Dynamics of Charitable Giving}, series = {CEPA Discussion Papers}, journal = {CEPA Discussion Papers}, number = {38}, issn = {2628-653X}, doi = {10.25932/publishup-52099}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-520991}, pages = {25}, year = {2021}, abstract = {Charities typically ask potential donors repeatedly for a donation. These repeated requests might trigger avoidance behavior. Considering that, this paper analyzes the impact of offering an ask avoidance option on charitable giving. In a proposed utility framework, the avoidance option decreases the social pressure to donate. At the same time, it induces feelings of gratitude toward the fundraiser, which may lead to a reciprocal increase in donations. The results of a lab experiment designed to disentangle the two channels show no negative impact of the option to avoid repeated asking on donations. Instead, the full model indicates a positive impact of the reciprocity channel. This finding suggests that it might be beneficial for charities to introduce an ask avoidance option during high-frequency fundraising campaigns.}, language = {en} } @techreport{Bruttel2019, type = {Working Paper}, author = {Bruttel, Lisa Verena}, title = {Is There a Loyalty-Enhancing Effect of Retroactive Price-Reduction Schemes?}, series = {CEPA Discussion Papers}, journal = {CEPA Discussion Papers}, number = {5}, issn = {2628-653X}, doi = {10.25932/publishup-42768}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-427688}, pages = {25}, year = {2019}, abstract = {This paper presents an experiment on the effect of retroactive price-reduction schemes on buyers' repeated purchase decisions. Such schemes promise buyers a reduced price for all units that are bought in a certain time frame if the total quantity that is purchased passes a given threshold. This study finds a loyalty-enhancing effect of retroactive price-reduction schemes only if the buyers ex-ante expected that entering into the scheme would maximize their monetary gain, but later learn that they should leave the scheme. Furthermore, the effect crucially hinges on the framing of the price reduction.}, language = {en} } @techreport{BruttelGuethNithammeretal.2020, type = {Working Paper}, author = {Bruttel, Lisa Verena and G{\"u}th, Werner and Nithammer, Juri and Orland, Andreas}, title = {Inefficient Cooperation under Stochastic and Strategic Uncertainty}, series = {CEPA Discussion Papers}, journal = {CEPA Discussion Papers}, number = {20}, issn = {2628-653X}, doi = {10.25932/publishup-47550}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-475500}, year = {2020}, abstract = {Stochastic uncertainty can cause difficult coordination problems that may hinder mutually beneficial cooperation. We propose a mechanism of ex-post voluntary transfers designed to circumvent these coordination problems and ask whether it can do so. To test this, we implement a controlled laboratory experiment based on a repeatedly played Ultimatum Game with a stochastic endowment. Contrary to our hypothesis, we find that allowing voluntary transfers does not entail an efficiency increase. We suggest and analyze two main reasons for this finding: First, the stochastic uncertainty forces proposers to accept high strategic uncertainty if they intend to cooperate by claiming a low amount (which many proposers do not). Second, many responders behave only incompletely conditionally cooperative by transferring too little (which hinders cooperation in future periods).}, language = {en} } @techreport{EydamDiluiso2022, type = {Working Paper}, author = {Eydam, Ulrich and Diluiso, Francesca}, title = {How to Redistribute the Revenues from Climate Policy?}, series = {CEPA Discussion Papers}, journal = {CEPA Discussion Papers}, number = {45}, issn = {2628-653X}, doi = {10.25932/publishup-54896}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-548960}, pages = {32}, year = {2022}, abstract = {In light of climate change mitigation efforts, revenues from climate policies are growing, with no consensus yet on how they should be used. Potential efficiency gains from reducing distortionary taxes and the distributional implications of different revenue recycling schemes are currently debated. To account for households heterogeneity and dynamic trade-offs, we study the macroeconomic and welfare performance of different revenue recycling schemes using an Environmental Two-Agent New-Keynesian model, calibrated on the German economy. We find that, in the long run, welfare gains are higher when revenues are used to reduce distortionary taxes on capital, but this comes at the cost of higher inequality: while all households prefer labor income tax reductions to lump-sum transfers, only financially unconstrained households are better off when reducing taxes on capital income. Interestingly, we find that over the transition period relevant to meet short-medium run climate targets, labor income tax cuts are the most efficient and equitable instrument.}, language = {en} } @techreport{AndresBruttelFriedrichsen2022, type = {Working Paper}, author = {Andres, Maximilian and Bruttel, Lisa Verena and Friedrichsen, Jana}, title = {How communication makes the difference between a cartel and tacit collusion}, series = {CEPA Discussion Papers}, journal = {CEPA Discussion Papers}, issn = {2628-653X}, doi = {10.25932/publishup-56223}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-562234}, pages = {67}, year = {2022}, abstract = {This paper sheds new light on the role of communication for cartel formation. Using machine learning to evaluate free-form chat communication among firms in a laboratory experiment, we identify typical communication patterns for both explicit cartel formation and indirect attempts to collude tacitly. We document that firms are less likely to communicate explicitly about price fixing and more likely to use indirect messages when sanctioning institutions are present. This effect of sanctions on communication reinforces the direct cartel-deterring effect of sanctions as collusion is more difficult to reach and sustain without an explicit agreement. Indirect messages have no, or even a negative, effect on prices.}, language = {en} } @techreport{LudolphŠedova2021, type = {Working Paper}, author = {Ludolph, Lars and Šedov{\´a}, Barbora}, title = {Global food prices, local weather and migration in Sub-Saharan Africa}, series = {CEPA Discussion Papers}, journal = {CEPA Discussion Papers}, number = {26}, issn = {2628-653X}, doi = {10.25932/publishup-49494}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-494946}, pages = {53}, year = {2021}, abstract = {In this paper, we study the effect of exogenous global crop price changes on migration from agricultural and non-agricultural households in Sub-Saharan Africa. We show that, similar to the effect of positive local weather shocks, the effect of a locally-relevant global crop price increase on household out-migration depends on the initial household wealth. Higher international producer prices relax the budget constraint of poor agricultural households and facilitate migration. The order of magnitude of a standardized price effect is approx. one third of the standardized effect of a local weather shock. Unlike positive weather shocks, which mostly facilitate internal rural-urban migration, positive income shocks through rising producer prices only increase migration to neighboring African countries, likely due to the simultaneous decrease in real income in nearby urban areas. Finally, we show that while higher producer prices induce conflict, conflict does not play a role for the household decision to send a member as a labor migrant.}, language = {en} } @techreport{BruttelStolleyUtikal2019, type = {Working Paper}, author = {Bruttel, Lisa Verena and Stolley, Florian and Utikal, Verena}, title = {Getting a Yes}, series = {CEPA Discussion Papers}, journal = {CEPA Discussion Papers}, number = {2}, issn = {2628-653X}, doi = {10.25932/publishup-42763}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-427638}, year = {2019}, abstract = {This paper studies how the request for a favor has to be devised in order to maximize its chance of success. We present results from a mini-dictator game, in which the recipient can send a free-form text message to the dictator before the latter decides. We find that putting effort into the message, writing in a humorous way and mentioning reasons why the money is needed pays off. Additionally, we find differences in the behavior of male and female dictators. Only men react positively to efficiency arguments, while only women react to messages that emphasize the dictator's power and responsibility.}, language = {en} } @techreport{BorckGohl2021, type = {Working Paper}, author = {Borck, Rainald and Gohl, Niklas}, title = {Gentrification and Affordable Housing Policies}, series = {CEPA Discussion Papers}, journal = {CEPA Discussion Papers}, number = {39}, issn = {2628-653X}, doi = {10.25932/publishup-52930}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-529300}, pages = {51}, year = {2021}, abstract = {We use a quantitative spatial equilibrium model to evaluate the distributional and welfare impacts of a recent temporary rent control policy in Berlin, Germany. We calibrate the model to key features of Berlin's housing market, in particular the recent gentrification of inner city locations. As expected, gentrification benefits rich homeowners, while poor renter households lose. Our counterfactual analysis mimicks the rent control policy. We find that this policy reduces welfare for rich and poor households and in fact, the percentage change in welfare is largest for the poorest households. We also study alternative affordable housing policies such as subsidies and re-zoning policies, which are better suited to address the adverse consequences of gentrification.}, language = {en} } @techreport{SpaethGoller2023, type = {Working Paper}, author = {Sp{\"a}th, Maximilian and Goller, Daniel}, title = {Gender differences in investment reactions to irrelevant information}, series = {CEPA Discussion Papers}, journal = {CEPA Discussion Papers}, number = {67}, issn = {2628-653X}, doi = {10.25932/publishup-60635}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-606351}, pages = {25, 4}, year = {2023}, abstract = {Economic agents often irrationally base their decision-making on irrelevant information. This research analyzes whether men and women react to futile information about past outcomes. For this purpose, we run a laboratory experiment (Study 1) and use field data (Study 2). In both studies, the behavior of men is consistent with falsely assumed negative autocorrelation, often referred to as gambler's fallacy Women's behavior aligns with falsely assumed positive autocorrelation, a notion of the hot hand fallacy. On the aggregate, the two fallacies cancel out. Even when individuals are, on average, rational, the biases in the decision-making of subgroups might cause inefficient outcomes. In a mediation analysis, we find that a) the agents stated perceived probabilities of future outcomes are not blurred by irrelevant information and b) about 40 \% of the observed biases are driven by differences in the perceived attractiveness of available choices caused by the irrelevant information.}, language = {en} } @techreport{HunoldPetrishcheva2022, type = {Working Paper}, author = {Hunold, Matthias and Petrishcheva, Vasilisa}, title = {Foreclosure and Tunneling with Partial Vertical Ownership}, series = {CEPA Discussion Papers}, journal = {CEPA Discussion Papers}, number = {57}, issn = {2628-653X}, doi = {10.25932/publishup-56560}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-565601}, pages = {47}, year = {2022}, abstract = {We demonstrate how the incentives of firms that partially own their suppliers or customers to foreclose rivals depend on how the partial owner can extract profits from the target (tunneling). Compared to a fully vertically integrated firm, a partial owner may obtain only a share of the target's profit but influence the target's strategy significantly. We show that the incentives for customer and input foreclosure can be higher, equal, or even lower with partial ownership than with a vertical merger, depending on how the protection of minority shareholders and transfer price regulations affect the scope for profit extraction.}, language = {en} } @techreport{BlanzEydamHeinemannetal.2023, type = {Working Paper}, author = {Blanz, Alkis and Eydam, Ulrich and Heinemann, Maik and Kalkuhl, Matthias and Moretti, Nikolaj}, title = {Fiscal Policy and Energy Price Shocks}, series = {CEPA Discussion Papers}, journal = {CEPA Discussion Papers}, number = {70}, issn = {2628-653X}, doi = {10.25932/publishup-61276}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-612763}, pages = {33}, year = {2023}, abstract = {The effects of energy price increases are heterogeneous between households and firms. Financially constrained poorer households, who spend a larger relative share of their income on energy, are particularly affected. In this analysis, we examine the macroeconomic and welfare effects of energy price shocks in the presence of credit-constrained households that have subsistence-level energy demand. Within a Dynamic Stochastic General Equilibrium (DSGE) model calibrated for the German economy, we compare the performance of different policy measures (transfers and energy subsidies) and different financing schemes (income tax vs. debt). Our results show that credit-constrained households prefer debt over tax financing regardless of the compensation measure due to their difficulty to smooth consumption. On the contrary, rich households tend to prefer tax-financed measures as they increase the labor supply of poor households. From an aggregate perspective, tax-financed measures targeting firms effectively cushion aggregate output losses.}, language = {en} }