ddc:330

Chapter 1: Going Multinational: What are the effects on home market performance? A number of recent studies find evidence for the existence of a persistent performance gap between multinational enterprises (MNE) and their domestic competitors. This chapter investigates to what extent MNEs have superior performance characteristics, both prior to and after they have switched from national to multinational activities. In the first case results are quite clear: Future multinationals outperform domestic firms. When comparing ex-post performance of firms an endogenous treatment model is applied to account for selectivity issues. The results suggest that after switching, both productivity and wage growth are higher for newly founded MNEs than for national firms. Employment growth is superior before switching but does not exhibit significantly higher ex-post growth rates. Moreover, capital intensities at multinationals evolve towards the use of capital. Chapter 2: The Impact of FDI on the Skill Structure in German Manufacturing This chapter tests whether foreign direct investment (FDI) of German manufacturing multinationals (MNE) has raised domestic skill intensity between 1996 and 2001. Using a sample of 1,557 firms, the results show that foreign activities of German manufacturing MNEs carry higher average wages on the home market. I interpret this as evidence indicating that part of the skill upgrading in German manufacturing is associated with the rising job export to foreign locations. Other things equal, an increase in overall affiliate employment relative to domestic employment by 10 percentage points raises skill intensity at the parent firm by 0.1\% to 0.3\%. When distinguishing between different host regions, I find investment in industrialised countries consistent with the horizontal FDI motive, whereas investment in developing countries is driven by vertical production strategies. In the case of transition countries results are inconclusive. Chapter 3: Health and Wages - Panel data estimates considering selection and endogeneity This paper investigates the effects of health on wages by controlling for a number of problems: first, the unobservable genetic endowment may cause an omitted variable bias; second, using a self-reported health variable could induce measurement error; third, the issue of reverse causality arises; and fourth, panel attrition driven by the endogenous decision to participate in the labour market may result in inconsistent estimation. By using recently developed methods, I control for all of the above issues in one framework. The results show that good health raises wages for both women and men. I find the health variable to suffer from measurement error. For men, applying OLS or 2SLS, instead of methods accounting for selection and individual heterogeneity, causes an upward bias in the health coefficient. Selection tests indicate panel attrition to generate biased estimates in the male sample, while for females no selection correction is required.

This thesis analyzes three separate, controversially discussed socioeconomic and policy issues. The first chapter is concerned with the regulation of hospitals. It is shown that the informational problems hinder the regulator to set optimal prices in a prospective payment system. It is also shown that the mechanism that the literature typically recommends for finding best prices, namely yardstick competition, fails in the hospital market. The second chapter analyzes the question whether general smoking bans in taverns can be welfare improving or whether they are an illegtimate market intervention. It is shown that owners of such establishments indeed do not necessarilly have an incentive to act in the consumers' interests. That is, it is possible that taverns do not prohibit smoking in their domain although it is in the social interest. The third chapter offers an alternative theory of how noninformative advertising can influence consumer's behavior. The advantages of the approach are that, first, it can explain the effect of advertising without violating fundamental assumptions of micoreconomic theory and, second, that it allows for welfare analysis.

This thesis is about two major economic topics, trade policy and education choice. The first and the second essay analyze trade policy with special attention to tariff formation in intermediate-good sectors. The first essay explains tariff formation in intermediate-good sectors from a national perspective. I build a political economy model in which lobby groups try to influence the government, which is both concerned about social welfare and collecting contributions from the lobby groups. It turns out that in such a model the equilibrium tariffs on intermediate goods deviate systematically from the tariffs on final goods. The second essay analyzes the tariff formation in intermediate-good sectors from an international perspective. It shows in a strategic trade policy model that the consideration of intermediate goods has a strong effect on the government’s optimal policy towards final goods also. The third essay is about education choice. I introduce social preferences into a simple model of education choice. Social preferences mean that individuals are not only concerned about their material self interest, but also about their relative income in comparison to others. It is shown that the individuals with social preferences take a systematically different education choice than purely self-interested individuals. The results can explain empirical evidence concerning the educational success of students.

The theory and practice of Intercultural Communication focuses on the “between cultures”. It is the fundamental assumption of that discipline that the cultural boundary – the difference between “We” and “the Other” – can be located and that the Interculturalist possesses the capability of doing so. But what is really happening in the so called "Intercultural Fields"? In my dissertation that is based on two years of ethnographic research, I present the case of a German High-Tech-Company where the boundary between “We” and “the Other” cannot be defined precisely anymore. Instead of simple distinctions between national cultures the actors in the field – highly-qualified engineers who are working together at a German and an Indian company site – construct collective identity according to context and very often in contrast to the external discourse of national cultural differences. The actors’ perception of cultural difference is multiple, heterogenous, sometimes ambiguous and context-specific. According to context, they possess the agency to use many discourses of "We" and "the Other" if it serves their needs. Thus, also the difficulties the actors in the field experience in cross-site work do not match management assumptions and depend on the respective actor's interpretation of their own boundary conditions like re-organisation from above, the discourse of globalisation and the conflicting topic of technical ownership. As this interpretative approach to global interaction in multinational companies shows, cross-site work is often "beyond national culture".

After the Second World War the residential construction quickly becomes one of the leading sectors of the German economy. The first part of the dissertation shows the long-time patterns of residential construction and dates the turning points of the business cycles. It also analyses some structural developments like the change in size of buildings and flats and compares the years 1945 to 1989 with the decades before. The second and third part gives some explanations for the phenomena shown in the first part. Therefore the second part focuses on the housing policy and the institutions of residential construction. The third part analyses the influence of war damage, population and some macroeconomic determinants.

In den letzten Jahrzehnten ist es in den USA zu einem enormen Anstieg der Ungleichheit der Lohnverteilung gekommen. Für einen Großteil der Geringqualifizierten war diese Entwicklung – trotz erheblichen technologischen Fortschritts – mit realen Einkommenseinbußen verbunden. In den 1980er Jahren nahm die Lohnspreizung auch in einer Reihe europäischer Volkswirtschaften und seit den 1990er Jahren auch in Deutschland zu. Neben der detaillierten Darstellung dieser empirischen Trends beschäftigt sich die Arbeit vor allem mit den möglichen Ursachen der gestiegenen Lohnspreizung. Als potentielle Erklärungen für die USA werden zunächst i) die reale Senkung der Mindestlöhne, ii) der verminderte gewerkschaftliche Organisationsgrad, iii) die vermehrte Immigration Geringqualifizierter und iv) der verstärkte Außenhandel mit Ländern durchschnittlich geringerer Qualifikation diskutiert. Da diese Ansätze einen Großteil der Entwicklung unerklärt lassen, wird dem technologischen Fortschritt als residualer Erklärung heute vermehrte Aufmerksamkeit geschenkt. Versuche, den Anstieg der Lohnspreizung über Skill-Biased Technological Change zu erklären, stehen allerdings häufig im Widerspruch zur verringerten totalen Faktorproduktivität, wie sie seit dem Ende der 1960er Jahre zu beobachten ist. In der Arbeit wird ein neuer Mechanismus präsentiert, der dieses sogenannte Produktivitätsparadox aufzulösen vermag. Im Zentrum des Modells steht die Annahme eines beschleunigten technologischen Fortschritts, der die Produktivität zukünftiger Erwerbsperioden steigert und der deshalb zu Bildungsexpansion führt. Durch einen Gruppierungseffekt kommt es hierbei zu erhöhter Lohnspreizung und durch die längere Abwesenheit Hochqualifizierter vom Arbeitsmarkt sowie einen möglichen Anstieg der Überqualifikation kann sich im Modell - trotz beschleunigten Fortschritts - eine Verlangsamung des Produktivitätswachstums einstellen. Im Rahmen eines Sraffa-Preis-Systems wird darüber hinaus aber gezeigt, dass technologischer Fortschritt, der die Produktivität Hochqualifizierter erhöht, auch zu Lohnkompression führen kann. Zusammen mit den mangelnden empirischen Belegen zugunsten technokratischer Erklärungen für die gestiegene Lohnspreizung leitet sich hieraus erhöhter Bedarf nach alternativen Erklärungen ab. Zum Abschluss der Arbeit werden deshalb mit der Interaktion der Einkommensverteilungen von Frauen und Männern und der reduzierten Steuerprogression in vielen Ländern seit den 1980er Jahren zwei vielversprechende Alternativen aufgezeigt.

The real euro area house price has increased steadily since 1997 reaching more than 6.5% in 2004 and 2005. The rise on its own is not as striking as the long lasting effect of the phenomenon. Indeed, it is the longest lasting house price increase ever experience in the euro area since data are available. Due to a lack of data, I use panel econometrics. The estimated coefficients are then used to generate euro area fitted values in all three papers. In my first paper, I investigate the question whether we can explain past house price movements by the arbitrage theory. Since arbitrage is a static phenomenon, I use within FE and RE estimators. The pattern of the residuals proves that arbitrage is not the core mechanism in house price determination. This may be due to large transaction costs, but also housing is un-tradable by nature, and finally government regulations. Alternative explanations are, friendly tax schemes to promote home ownership against alternative assets, government regulations like tenants rights, and finally massive public investment to build social houses for small income households. Instead, in my second paper, I suggest to analyze directly the interaction of supply and demand together with the mortgage market. Due to endogeneity, Anderson & Hsiao (1981) and the GMM Arellano-Bond (1991) dynamic panel estimator (AB) are used. However, in macro-panel data, the time dimension is much larger than the cross-sectional dimension. A trade-off arises between efficiency and consistency. Thus, the results are checked by means of LSDV (Least Square Dummy Variables) estimates, which are indeed close to the AB estimates. In the third paper, a general equilibrium model underpins the choice of macro-variables. To disentangle long-term from short-term dynamics, the PMG (Pooled Mean Group) estimator developed by Pesaran, Shin & Smith (1997) is used. The PMG assumes homogeneity of long-run coefficients (or a sub-set) but without making implausible assumption of common short-term coefficients. In the short-term coefficients are allowed to vary across countries. Indeed, mortgage and house market in the euro area are characterized to be strongly heterogeneous. The conclusions on the short-term dynamics of the house prices are alike between the second and the third paper. As regards the factors: disposable income per capita and the autoregressive term mostly drive the house price dynamics. Moreover, the demographic variables and rents do not account in the short term house price dynamics. The conclusion on the long-term house price are mainly explained in the third paper. The empirical results of the Panel ECM suggest a strong long-term empirical relationship between house price and disposable income, interest rate, stock of dwelling, population, but also mortgage loan. However, long-term house price equilibrium is mainly driven by disposable incomes and interest rates. How can we explain the long lasting house price increase in the euro area? First, in the wake of the monetary union process, household’s in the euro area experienced a positive shift in their borrowing capacity which had a positive impact on house price dynamics. Second, the euro area business cycle since 1999 has been stabilized by means of an optimal leaning against the wind policy which has no pedigree in the euro area. The slowdown of the economy since 2001 has been offset by an accommodative policy. Monetary policy stance indicators like interest rate and mortgage loan development prove a leaning against the wind policy which sustained strong housing demand. Excess demand factor indicates that sticky supply did not react quickly enough, the overshooting of demand kept soaring house prices. Current house price cycle is above 2% since 1998, i.e. already 8 years (10 years with our adjustment process), the longest lasting cycle ever experienced. Thus, two effects explain this fact. The low interest rate in level due to the gained credibility and variation in interest rate (opticmal monetary policy). In contrast, the previous cycle duration was much shorter, i.e. from the mid-80s to the mid-90s. As inflation was already rising in the end of the 80s, the Bundesbank raised its discount rate in 1988, and kept tightening it until 1992 due to the German monetary reunification. The one to one exchange with the East-mark obliged the Bundesbank to lead an even harsher policy. The other member countries of the ERM (European Ex-change Rate Mechanism) had to follow at odds with an optimal monetary policy. Consequently, the “euro area” interest rates increased dramatically. Beyond the cyclical component, the overall interest rate level was excessively high. The financial liberalization in the mid-80s caused sharp real estate increases. Thereafter, high interest rates coupled with a weak business cycle dampened relatively quickly soaring house prices. Currently, the ECB reputation allowed a structural real and nominal real interest rate fall, as well as an optimal monetary policy in view of the business cycle fluctuations. This explains why current house price cycle already lasts twice as long as the previous one. As regards the mortgage market (second paper), collateral (house price) is the only core factor. Consequently, house market and mortgage market strongly interact via the collateral. Banks relax their lending standards by favourable house price prospects due to asymmetric information. Households can capture more mortgage loans which fuels demand. Higher house price impinges positively on household’s wealth. This self-perpetuating process is then reversed by a trigger event like monetary policy tightening. An interest rate increase of 1% causes a 1% house price inflation drop and a 0.4% decline in mortgage loan growth rate in the long term, according to the estimates. The interest rate shock has only a temporary effect on the mortgage market on its own but the collateral (house price) drop leads to a long lasting fall in mortgage loan volume. To conclude, interest rate increase impinges negatively on real house price growth, proving that demand outweighs supply. As a result, monetary can influence house price growth. The estimates of the euro area house price equilibrium (third paper) prove three positive misalignments with respect to actual house prices. The first started during the second oil price shock until the mid 80’s. The second began in the late 80’s and ended in the mid90’s. Finally, current house prices has overshot equilibrium price since 2001 and has not shown mean reversion yet. This history is in line with the literature on housing. However, the gap between house price equilibrium and current price cannot be assimilated to a bubble as defined by Stiglitz (1990). The misalignment of current prices to long-term equilibrium price characterizes a natural feature of the functioning of the house market. Supposing the tide starts to turn in 2006, current house prices would smoothly catch up equilibrium price in 5 to 6 years according to the Panel ECM. In the simulation of current house prices adjustment to equilibrium level, I suppose that all explanatory variables equal simultaneously their steady value in 2006 and onwards. The adjustment depicts a 4% growth rate in 2006 and thereafter 2% and then a tiny negative rate of approximately 2 years until 0% (in real terms). This is a smooth and soft landing in opposite to the “biggest bubble in history” documented by the Economist for instance. This empirical study might prove that no recession will occur and even less a deflation. First, most of the huge house price increase in the euro area is explained by the fundamentals and second, the bank risk exposure is relatively moderate, they have mostly already implemented Basel II, which will be officially implemented in 2008.

Der „Größenlohneffekt" (alternativ: „Firmengrößeneffekt") bezeichnet das empirische Phänomen eines mit zunehmender Firmengröße ansteigenden Lohns für Arbeitnehmer mit identischen Merkmalen. Diese Beobachtung wirft zwei Fragen auf, welche die folgende Arbeit zu beantworten sucht: 1) Wieso sind größere Firmen in der Lage höhere Löhne zu zahlen als kleinere? 2) Selbst wenn sie dazu in der Lage sind, wieso sollten sie? Der erste Teil der Arbeit befasst sich mit den wichtigsten Ansätzen, die bislang zur Erklärung von Größenlohneffekten herangezogen wurden. Auf die jeweilige Erläuterung der theoretischen Grundlagen folgt dabei stets der Versuch, die Relevanz der verschiedenen Theorien für die Existenz von Größenlohndifferenzialen abzuschätzen. Im zweiten Teil der Arbeit wird ein alternativer Ansatz entwickelt, der auf zwei Aspekten der innerbetrieblichen Arbeitsteilung aufbaut und der in der Lage ist, eine neue theoretische Begründung für die Existenz von Größenlohneffekten zu liefern. Es wird hierbei wie folgt argumentiert: Potenzielle Beschäftigte sind per Annahme heterogen hinsichtlich ihrer Lernfähigkeit, wodurch sich für jeden Arbeitgeber grundsätzlich ein trade-off zwischen der Qualität und der Quantität der von ihm beschäftigten Personen ergibt. Der höhere Grad an innerbetrieblicher Arbeitsteilung in größeren Firmen bewirkt eine Steigerung der Arbeitsproduktivität, führt jedoch gleichzeitig zu einer Zunahme der Anstrengung, welche für die Koordination einer vermehrt spezialisierten Belegschaft erforderlich ist. Da größere Firmen somit stärker von den damit einhergehenden Koordinationskosten betroffen sind, ist für sie die Attraktion von besonders lernfähigen Arbeitnehmern mit einer überproportional hohen Einsparung dieser Kosten verbunden – weshalb sie entsprechend hohe Lohnangebote für qualifizierte Bewerber aussprechen. Dies führt zu einer positiven Korrelation zwischen Firmengröße, Qualität der Belegschaft und Lohnniveau, wobei größere Firmen auch bereit sind, für identische Arbeitnehmer höhere Löhne zu zahlen als kleinere Firmen, wie an einem Beispiel verdeutlicht wird.

Diese Arbeit befasst sich mit der Preisdynamik auf Immobilienmärkten, sowie mit der allokativen Effizienz von räumlichen Verkehrsregelungsmaßnahmen.

Eine eingehende Kritik der paretianischen Wohlfahrtstheorie zeigt, daß normative Urteile in der Ökonomie einer breiteren ethisch-normativen Grundlage bedürfen. Neuere metaethische Ansätze begründen die prinzipielle Möglichkeit der dazu erforderlichen kognitiven ethischen Urteile. Als konkreter inhaltlicher Vorschlag für eine solche Grundlage wird die Rawlssche Theorie der Gerechtigkeit kurz vorgestellt und in ihrem Kern, der eine Kritik des Utilitarismus einschließt, auch formal rekonstruiert. Die Tragfähigkeit und die Konsequenzen der verschiedenen diskutierten Ansätze werden dann abschließend anhand der konkreten und aktuellen Problematik des Klimawandels und möglicher Strategien seiner Vermeidung überprüft.

In this study we analyze how markets work in the Information Society. In particular we concentrate on three important markets: the software market, the broadcasting market and "technology markets" where intellectual property rights can be traded. All these markets are characterized by modes of competition that are rather unorthodox and beyond simple Cournot or Bertrand models. Therefore, extended models are needed to gain insights about competition in the Information Society.

The ability to solve problems of collective action is crucial for economic performance. Growth-fostering behavioral propensities such as respecting property, honoring contracts, or helping others are collectively beneficial but individually costly. The paradigmatic formalization of this rationality gap is provided by the non-iterated Prisoners’ Dilemma, where rational players are locked in at a state of mutual defection while mutual cooperation would be better for everyone. In sporadic, ex-ante anonymous interactions (like in modern large-scale societies), the ‘shadow of the future’ cannot sustain cooperation. Cooperation must be altruistic, in the sense that a cooperator enhances her opponent’s payoff at her own expense. In this piece of work another group selection mechanism is presented that generates and sustains altruism in ex-ante anonymous settings. Assuming that cooperative attitudes are coupled with a preference for participating in costly rituals (religious involvement is taken as an example), interactions take place within two endogenously separated groups. The signaling value of religion in the model derives not from differential costliness but from cooperators’ intrinsic nature of motivation. Noncooperative types have to learn about the matching gains from religious involvement while cooperative types need not. This induces an initial advantage to cooperative/religious types at the beginning of each generation, thereby sustaining altruism in the long run via religious participation.

This theses deals with the effects of national economic policies in internationally integrated markets. In particular, we look at markets of sovereign debt and intellectual property rights. Further, we provide an explicit analysis of the redistributive and welfare effects of different types of politicians. Finally we study the effects of anticipated competition in models of rent seeking.

The dissertation deals with various aspects of the estimation of equilibrium search models with wage posting. It addresses estimation form incompletely observed data and explores applicability of parametric and nonparametric methods. Furthermore, the dissertation presents the estimation of a Burdett-Mortensen model extended for multiple skills.