Central bankers’ conventional wisdom suggests that nominal interest rates should be raised to implement a lower inflation target. In contrast, I show that the standard New Keynesian monetary model predicts that nominal interest rates should bedecreased to attain this goal. Real interest rates,...

Recent econometric studies only emphasize the role of longterm demand expectations and technological capability. They neglect the impact of buyer market structure on innovative efforts of input suppliers....

This paper develops a model in order to explore how a banks equity stake in a competitor of a borrower affects the financing relationship with the borrower and product market outcomes.

In April 2003 the U.S. Federal Energy Regulatory Commission proposed a complicated marketdesign – the Wholesale Power Market Platform (WPMP) – for common adoption byall U.S. wholesale power markets. Versions of the WPMP have been implemented in NewEngland, New York, the mid-Atlantic states,...

We find little support for the Schumpeterian hypothesis of a positiverelationship between market power and innovation in 1950’s Britain eventhough many economists and policymakers accepted it at the time. Pricefixingagreements were very widespread prior to the 1956 RestrictivePractices Act and...

Seit 2008 ist der Postmarkt in Deutschland vollständig geöffnet. Gleichzeitig ist die Exante-Preisgenehmigungspflicht für Massensendungen, die den weit überwiegenden Teilder Briefnachfrage ausmachen, entfallen. Die DPAG kann ihre Preise jetzt flexibler gestaltenund, vor allem durch die...

Der Milchstreik im Jahr 2008 machte auf die Problematik der geringen Erzeugerpreise für Milch aufmerksam und lösteDiskussionen um die Verteilung der Erlöse entlang derWertschöpfungskette (WSK) Milch aus. Vor diesem Hintergrundführte das Bundeskartellamt im Jahr 2009 eine Sektoruntersuchung...

Two stylized representations are often found in the academic and policy literature oninformality and formality in developing countries. The first is that the informal (or unregulated)sector is more competitive than the formal (or regulated) sector. The second is that contractenforcement is...

This paper examines an economic union where oligopolistic firms produce by skilled andunskilled labor and do in-house R&D by skilled labor. The planner of the union accepts newmembers to the union, regulates the labor market through a minimum wage for unskilledlabor and supports firms by...