Does the mere presence of big banks affect macroeconomic outcomes? In this paper, we develop a theory of granularity (Gabaix, 2011) for the banking sector, introducing Bertrand competition and heterogeneous banks charging variable markups. Using this framework, we show conditions under which...

We investigate the impact of competition policy enforcement on the functioning of European energy markets, and how sectoral regulation influences these outcomes. For this purpose, we compile a new dataset on the European Commission’s (EC) and EU member states’ competition policy decisions,...

Different stochastic simulation methods are used in order to check the robustness of the outcome of policy simulations with a macroeconometric model. A macroeconometric disequilibriummodel of the West German economy is used to analyze a reform proposal for the tax system. The model was estimated...

Introduction Germany currently finds itself in a difficult economic situation, one characterised not only by a long period of weak economic growth, but also by developments that, if the necessary adjustment processes are not accomplished, pose a threat to Germany's medium-term growth prospects....

This paper explores determinants of church attendance and the formation of 'religious human capital' in Germany within a Becker-style allocation-of-time framework. The analysis is based on data derived from the German Socio-Economic Panel (GSOEP). Taking advantage of the longitudinal structure...

This study deals with youth unemployment trends in Europe since the mid of the 80ths in general and regards individual risk factors for Germany and the United Kingdom in particular in the mid of the 90ths. The study for the two selected countries shows that the individual risk of (long-term)...

We analyze the determinants of household work contracted in the German shadow economy. The German socio-economic household panel, which enumerates casual domestic employment, is used to estimate the demand for such household work. The regressors include regional wage rates, household income and...