Monetary Policy, Factor Substitution, and Convergence

in Macroeconomic Dynamics (2016)

Property Rights and Consumption Volatility: Evidence from a Land Reform in Vietnam

in WORLD DEVELOPMENT (2015), 71

During Vietnam's transition from a socialist to a market economy, household's property rights over agricultural land were considerably strengthened through a land certification program. This resulted in ... [more ▼]

During Vietnam's transition from a socialist to a market economy, household's property rights over agricultural land were considerably strengthened through a land certification program. This resulted in active formal credit and land markets, either of which potentially affects consumption levels and volatility. This article evaluates the program impact with respect to consumption outcomes. In particular, it identifies the channel of impact through which improved property rights affect consumption volatility. We find that land certification increases consumption levels for rural households, but also consumption volatility for a subgroup of households identified by an instrument. We show that the certification program affects consumption outcomes of this subgroup through, presumably more risky, credit-based agricultural investment at the intensive margin. (C) 2013 Elsevier Ltd. All rights reserved. [less ▲]

Synthesis and assessment of the public debate on the reform of the CAP after 2013

Book published by Nomos Verlagsgesellschaft (2013)

The normalized CES production function: theory and empirics

in JOURNAL OF ECONOMIC SURVEYS (2012), 26(5), 769-799

The elasticity of substitution between capital and labor and, in turn, the direction of technical change are critical parameters in many fields of economics. Until recently, though, the application of ... [more ▼]

The elasticity of substitution between capital and labor and, in turn, the direction of technical change are critical parameters in many fields of economics. Until recently, though, the application of production functions with specifically non-unitary substitution elasticities (i.e., non-CobbDouglas) was hampered by empirical and theoretical uncertainties. As recently revealed, normalization of production-technology systems holds out the promise of resolving many of those uncertainties. We survey and assess the intrinsic links between production (as conceptualized in a production function), factor substitution (as made most explicit in Constant Elasticity of Substitution functions) and normalization (defined by the fixing of baseline values for relevant variables). First, we recall how the normalized Constant Elasticity of Substitution function came into existence and what normalization implies for its formal properties. Then we deal with the key role of normalization in recent advances in the theory of business cycles and of economic growth. Next, we discuss the benefits normalization brings for empirical estimation and empirical growth research. Finally, we identify promising areas of future research. [less ▲]

On the affiliation of phenomenology and ordoliberalism: Links between Edmund Husserl, Rudolf and Walter Eucken

in European Journal of the History of Economic Thought (2011), 18(4), 551-578

This paper explores the various personal and intellectual links between Edmund Husserl, Rudolf and Walter Eucken. Our interdisciplinary approach gives an insight into Husserl's transcendental ... [more ▼]

This paper explores the various personal and intellectual links between Edmund Husserl, Rudolf and Walter Eucken. Our interdisciplinary approach gives an insight into Husserl's transcendental phenomenology, Walter Eucken's Ordoliberalism as well as in the interdependency between phenomenology and economics for which Rudolf Eucken's philosophy of intellectual life plays an important role. Particular affiliations between phenomenology and economics can be found in the following topics: epistemology, the idea of man, the comprehension of liberty and the importance of legal or social orders, institutional rules and frameworks of regulations. [less ▲]

An Ordoliberal Interpretation of Adam Smith

in ORDO: Jahrbuch für die Ordnung von Wirtschaft und Gesellschaft (2010)

The effects of public pensions on private wealth: evidence on the German savings puzzle

in APPLIED ECONOMICS (2010), 42(15), 1917-1926

Based on German panel data between 1984 and 1999, we test for the interaction of social security benefits and private wealth formation. In a simple life-cylce model benefits from public pension systems ... [more ▼]

Based on German panel data between 1984 and 1999, we test for the interaction of social security benefits and private wealth formation. In a simple life-cylce model benefits from public pension systems should displace equal amounts of private retirement accumulation. Our estimate for the offset effect, corrected for several possible measurement biases, is much lower, however, than expected from pure life-cycle considerations and less than comparable estimates for the US and the UK. This result thus supports other evidence on a particular German savings puzzle, which might be due to market imperfections and/or bounded rational behaviour. [less ▲]

Factor Substitution, Income Distribution and Growth in a Generalized Neoclassical Model

in GERMAN ECONOMIC REVIEW (2009), 10(4), 464-479

We analyze a generalized neoclassical growth model that combines a normalized CES production function and possible asymmetries of savings out of factor incomes. This generalized model helps to shed new ... [more ▼]

We analyze a generalized neoclassical growth model that combines a normalized CES production function and possible asymmetries of savings out of factor incomes. This generalized model helps to shed new light on a recent debate concerning the impact of factor substitution and income distribution on economic growth. We show that this impact relies on both an efficiency and a distribution effect, where the latter is caused by the distributional consequences of an increase in the elasticity of substitution. While the efficiency effect is always positive, the sign of the distribution effect depends on the particular savings hypothesis. If the savings rate out of capital income is substantial so that a certain threshold value is surpassed, the efficiency effect dominates and higher factor substitution accelerates the accumulation of capital and works as a major engine of growth. [less ▲]

Über die normativen Implikationen des Ordoliberalismus für die moderne Wirtschaftsethik (The Ethical-Normative Implications of German Ordoliberalism)

in Zeitschrift für Wirtschafts- und Unternehmensethik (2009)

Calibration of normalised CES production functions in dynamic models

in ECONOMICS LETTERS (2008), 99(2), 256-259

Normalising CES production functions allows to choose technology parameters of dynamic models in a plausible way and excludes arbitrary effects of changes in the elasticity of substitution. As an ... [more ▼]

Normalising CES production functions allows to choose technology parameters of dynamic models in a plausible way and excludes arbitrary effects of changes in the elasticity of substitution. As an illustration, the speed of convergence in the Ramsey model is considered. (C) 2007 Elsevier B.V. All rights reserved. [less ▲]