For many years now, nitrate concentrations have exceeded the trigger value of 50 milligrams per liter at nearly one-fifth of the groundwater sampling sites in Germany. Apart from impairing the ecosystem by, for example, causing eutrophication of water bodies, nitrate-polluted drinking water also...

The effects of the climate crisis are worsening water shortages, not only in the Global South but also in Europe, for example in the Berlin-Brandenburg region. Due to inadequate pricing of surface and groundwater abstraction and a lack of regulatory instruments, water overuse is occurring in...

The effects of the climate crisis are worsening water shortages, not only in the Global South but also in Europe, for example in the Berlin-Brandenburg region. Due to inadequate pricing of surface and groundwater abstraction and a lack of regulatory instruments, water overuse is occurring in...

For many years now, nitrate concentrations have exceeded the trigger value of 50 milligrams per liter at nearly one-fifth of the groundwater sampling sites in Germany. Apart from impairing the ecosystem by, for example, causing eutrophication of water bodies, nitrate-polluted drinking water also...

Not just since the European Central Bank announced the large-scale purchase of government bonds a few weeks ago, large-scale asset purchases have always been a controversially discussed topic. This DIW Roundup summarizes the measures that have been taken by central banks in Japan, USA and UK and...

How do banks choose their debt maturity structure when credit markets are subject to information frictions? This paper proposes a model of equilibrium maturity choice with asymmetric information and endogenous roll-over risk. We show that in the presence of public signals about firms'...

Using a sample of fare quotes for non-stop travel from New York to London, this paper investigates the dynamics of offered fares as the departure date nears. We find that the general trend is toward fare increase at an accelerated rate as the departure date approaches. Clear differences in...

The paper investigates young firms' choice of capital source. Our theoretical model hypothesizes a positive (negative) relation between riskiness of the project (price of venture capital) and receiving informed equity. We test our predictions by employing a unique data set collected by KfW...

This paper investigates the link between the optimal level of non-financial firms' liquid assets and uncertainty. We develop a partial equilibrium model of precautionary demand for liquid assets showing that firms alter their liquidity ratio in response to changes in either macroeconomic or...

This paper investigates the link between the optimal level of nonfinancial firms' leverage and macroeconomic uncertainty. We develop a structural model of a firm's value maximization problem that predicts that as macroeconomic un-certainty increases the firm will decrease its optimal level of...