Macro-stress testing studies often rely on rather short sample periods due to the limited availability of banking data. They may fail to appropriately account for the cyclicality in the interaction between the banking system and macroeconomic developments. In this paper we use a newly...

This study investigates the role of stratification of health and income in the social cost of health-related early retirement, as evidenced in the German Socio-economic Panel (GSOEP). We interpret early retirement as a mechanism to limit work-related declines in health that allows poorer and...

If a wide definition of subsidies is used, the subsidies granted by the German Länder and their local authorities fell considerably from 65 billion euros in 2000 to (a projected) 61.3 billion euros in 2007. If a narrow definition is used, and arguable cases of subsidization are ignored, the...

Tax expenditures are granted for a variety of purposes in Germany. They were significantly reduced in December 2003. After the general election in 2005, additional reductions of the tax expenditures were decided upon; however, new measures were introduced, too. The paper presents data on the...

This paper provides a theoretical and quantitative analysis of various types of wellknown employment subsidies. Two important questions are addressed: (i) How should employment subsidies be targeted? (ii) How large should the subsidies be? We consider measures involving targeting workers with...

Based on a quarterly regulatory dataset for German banks from 1999 to 2004, this paper analyzes the effects of banks' regulatory capital on the transmission of monetary policy in a system of liquidity networks. The dynamic panel regression results provide evidence in favor of the bank capital...

This study investigates the relation between human capital depreciation during family-related career interruptions and occupational choice of women in the (West) German labour market. In contrast to other studies that do not explicitly focus on family-related career interruptions, we find that...

The financial status of the unemployment insurance system in Germany has improved markedly since 2005. Some reform measures and the upswing of the economy are the most important reasons for the favorable development. It is hotly debated how to use the surplus of the Federal Labor Agency....

The structure of income taxation in Germany implies that the marginal and the average tax rates will rise in the course of the coming yearseven if the increase of nominal incomes is modest. The elasticity of the wage income tax revenues with respect to gross wages amounts to about 1.9, assuming...