This paper explores semi-monotonicity constraints in the distribution of potential outcomes, first, conditional on an instrument, and second, in terms of the response function. The imposed assumptions are strictly weaker than traditional instrumental variables assumptions and can be gainfully...

The paper evaluates the effects of two labor market programs in Germany, namely the Job Creation- /Structural Adjustment Scheme and Vocational Training, on the unemployment duration of long term unemployed persons. The study uses data from the Mikrozensus Sachsen. A two step...

Investment in East Germany is heavily subsidized. Econometric estimates based on a treatment approach show that the level of investment is significantly higher in firms being supported by state aid. Nevertheless, capital productivity is lower in East Germany, indicating a misallocation of...

Die Investitionstätigkeit in Ostdeutschland ist durch massive staatliche Förderung gekennzeichnet. Die mit Abstand wichtigsten Instrumente, hinsichtlich des Fördervolumens sowie der Inanspruchnahme durch die Betriebe, sind die Investitionszulage und die Gemeinschaftsaufgabe zur 'Verbesserung...

Technology policy is a major part of government's efforts in contributing to East Ger-many's economic recovery. However, even a decade after unification East Germany does not produce sufficient technology goods. Thus, the question is whether technology policy is either not suitable or...

Remarkably little is known about the long-term impacts of project aid to lagging poor areas (Chen, Mu et al. 2006, 2008). This paper contributes to the debate about the role of rural transport infrastructure development in explaining the long-term rural development. In line with Grimm and Klasen...

Do financial market participants free-ride on liquidity? To address this question, we construct a dynamic general equilibrium model where agents face idiosyncratic preference and technology shocks. A secondary financial market allows agents to adjust their portfolio of liquid and illiquid assets...

This paper investigates how precisely short-term, job-search oriented training programs as opposed to long-term, human capital intensive training programs work. We evaluate and compare their effects on time until job entry, stability of employment, and earnings. Further, we examine the...

Many governments subsidize regional rail service as an alternative to road traffic. This paper assesses whether increases in service frequency reduce road traffic externalities. We exploit differences in service frequency growth by procurement mode following a railway reform in Germany to...