In Germany, the employment response to the post-2007 crisis has been muted compared to other industrialized countries. Despite a large drop in output, employment has hardly changed. In this paper, we analyze the determinants of German firms' labor demand during the crisis using a firm-level...

Moderne Evaluationsmethoden auf der Basis ökonometrischer Verfahren und randomisierter Feldexperimente machen es für immer mehr Politikbereiche möglich, die Wirksamkeit wirtschaftspolitischer Maßnahmen zu überprüfen. Gleichwohl sind diese Methoden in der deutschen Evaluationspraxis nicht...

Moderne Evaluationsmethoden auf der Basis ökonometrischer Verfahren und randomisierter Feldexperimente machen es für immer mehr Politikbereiche möglich, die Wirksamkeit wirtschaftspolitischer Maßnahmen zu überprüfen. Gleichwohl sind diese Methoden in der deutschen Evaluationspraxis nicht...

Aggregated output in industrialized countries has become less volatile over the past decades. Whether this "Great Moderationʺ can be found in firm level data as well remains disputed. We study the evolution of firm level output volatility using a balanced panel dataset on German firms that...

Globalization may impose a double-burden on low-skilled workers. On the one hand, the relative supply of low-skilled labor increases. This suppresses wages of low-skilled workers and/or increases their unemployment rates. On the other hand, low-skilled workers typically face more limited access...

Has the labor share declined? And what is the impact of international trade? These questions are not only relevant in an international context they also matter for understanding the regional distribution of incomes in a given country. In this paper, we study two regions with trade exposures that...

Recent literature on multinational firms has stressed the importance of low productivity as a barrier to the cross-border expansion of firms. But firms may also need external finance to shoulder the costs of entering foreign markets. We develop a model of multinational firms facing real and...

Recent developments on international financial markets have called the benefits of bank globalization into question. Large, internationally active banks have acquired substantial market power, and international activities have not necessarily made banks less risky. Yet, surprisingly little is...

The interplay between banks and the macroeconomy is of key importance for financial and economic stability. We analyze this link using a factor-augmented vector autoregressive model (FAVAR) which extends a standard VAR for the U.S. macroeconomy. The model includes GDP growth, inflation, the...