We provide an overidentification test for a nonparametric treatment model where individuals are allowed to select into treatment based on unobserved gains. Our test can be used to test the validity of instruments in a framework with essential heterogeneity (Imbens and Angrist 1994). The...

In this paper incumbency effects in Federal Elections and Mayoral Elections in Germany are estimated using a quasi-experimental design which allows for causal inference under a set of rather mild assumptions. Relying on nonparametric and parametric estimation procedures and exploiting a recently...

The expanding/contracting behavior of monetary macroeconomic models is largely driven by government deficits. Their monetary effects on inflation and monetary growth determine the real value of money (or of government debt) in the long run. Only positive stationary (constant) real values of...

We develop a dynamic stochastic full equilibrium New Keynesian model of two open economies based on stochastic differential equations to analyse the interdependence between monetary policy and financial markets in the context of the recent financial crisis. The effect of bubbles on stock and...

Cerreia-Vioglio, Ghirardato, Maccheroni, Marinacci and Siniscalchi (Economic Theory, 48:341-375, 2011) have recently axiomatised preferences in the presence of ambiguity as Monotonic Bernoullian Archimedean (MBA) preferences. We investigate the problem of Arrovian aggregation of MBA preferences...

Successful innovation is a precondition for economic prosperity. While various potential determinants of innovative activity have been considered, little empirical evidence is yet available for the influence of firm governance issues. This paper aims at filling this gap in the literature by...

In this paper, I analyze the impact of the extension of the ECB s collateral framework on securities sales. In addition, I evaluate the impact of different macroeconomic and bank-specific characteristics on banks selling behavior. At this, I distinguish between healthy banks and banks rescued...

Economists have a long tradition in identifying the evolution of cooperation in large, unstructured societies as a puzzle. We suggest a new explanation for cooperation which avoids restrictions of most previous attempts. Our explanation deals with the role of internalized norms for cooperation...

An important education reform in Germany reduced the duration of university preparatory schooling from 13 to 12 years, but left the curriculum unchanged. In the state of Saxony-Anhalt the reform was completed in 2007 with a double cohort of graduates, providing a natural experiment. We use...

In many federations, fiscal equalization schemes soften fiscal imbalances across the member states. Such schemes usually imply that a member state internalizes only a small fraction of the additional tax revenue from an expansion of the state-specific tax base, while the remainder of the...