In this paper, we extend Henning Bohn's (2008) fiscal sustainability test by allowing for slope heterogeneity and cross-sectional dependence (CD). In particular, our econometric approach is the first that allows fiscal reaction functions (FRF) to capture unobserved heterogeneous effects from...

The current European fiscal framework is highly complex. The multitude of fiscal rules and the discretion in their enforcement precludes an effective oversight and weakens the effectiveness of fiscal rules substantially. Against this background, we present a proposal for a careful refocusing of...

To make the no-bailout clause credible and enhance the effectiveness of crisis assistance, a consistent institutional and legal framework is needed to ensure that private creditors contribute to crisis resolution. Getting activated as part of ESM crisis assistance, we propose a two-stage...

Die Studie basiert auf einer empirischen Analyse des Innovationsgeschehens in vier ostdeutschen Fallstudienregionen Dresden, Halle, Jena und Rostock. Alle vier Regionen besitzen sowohl eine universitäre als auch eine industrielle Tradition. Die Entwicklungsverläufe seit dem Systembruch im Jahr...