Publikationen

We provide evidence that higher wealth inequality between households is associated with stronger real effects of monetary policy. First, we use state-dependent local projections to show that the US and the UK exhibited stronger real effects of monetary policy in times of higher wealth inequality. Second, we measure wealth inequality within US states and document that economic activity responds more strongly to interest rate changes in states where wealth is distributed more unequally. Third, we show that ECB monetary policy has stronger real effects in Euro Area countries with higher wealth inequality.

Causal evidence for the effect of team size on performance is lacking despite the high relevance of this question. From an economic perspective, one would expect performance incentives to decrease with increasing team size, but the psychological phenomenon of peer effects could mitigate the free-rider problem. To analyze the behavioral implications due to changes in team size, we exploit a rich dataset from a controlled experiment with teams of either two or three participants of a university research project performing a real-effort task. Our study provides three main findings. First, increasing team size does not change team performance on average, which is a robust result, be it across performance dimensions and even when introducing pay inequality between two work periods. Second, positive performance spillovers from peer to peer alleviate the free-rider problem when team size increases. Third, changes in peer pressure due to changes in the transparency of others' performance could explain the variation in peer effects across team size. In contrast to discussions in previous literature, our evidence points to a potentially negative role of peer pressure for team performance. While lower peer pressure in teams of three allows for more positive performance spillovers, a high-skilled peer in a team of two seems to pressure the other team member to produce more mistakes instead of more work output in high quality.

We represent the dynamic relation among variables in vector autoregressive (VAR) models as directed graphs. Based on these graphs, we identify so-called strongly connected components (SCCs). Using this graphical representation, we consider the problem of variable choice. We use the relations among the strongly connected components to select variables that need to be included in a VAR if interest is in impulse response analysis of a given set of variables. Our theoretical contributions show that the set of selected variables from the graphical method coincides with the set of variables that is multi-step causal for the variables of interest by relating the paths in the graph to the coefficients of the ‘direct’ VAR representation. An empirical application illustrates the usefulness of the suggested approach: Including the selected variables into a small US monetary VAR is useful for impulse response analysis as it avoids the well-known ‘price-puzzle’.

This study aims to synthesize the extant research on the Born Global Firms (BGF) phenomenon, mainly focusing on the Asia Pacific region (APAC). We adopt the systematic literature review methodology to identify the main context-specific drivers (‘success factors’) and outcomes of BGFs’ accelerated internationalization and the challenges they face before, during, and after global expansion. The analysis and evaluation of relevant studies reveal several critical variables that need to be extensively investigated (separately and in tandem) by scholars in order to advance existing theories and, at the same time, explain the out-of-pattern behaviors of BGFs outside the typical ‘Western economy’ context. Among the core variables are international entrepreneurial orientation and culture adoption, organizational learning and networking strategies, global strategic human capital and network resources (as predictors of BGFs’ international performance) and resource constraints, institutional and cultural distances, and liabilities of newness, smallness, foreignness, outsidership, and emergingness (as constraints to BGFs’ success). By identifying the research gaps and proposing a comprehensive framework with promising avenues for future research into the phenomenon of BGFs from the APAC region, this study helps enhance our understanding of the global strategy formation and execution processes of international new ventures from ‘the East’ and stimulate interdisciplinary dialogue between international business, strategy, and entrepreneurship scholars.

This paper examines the effect of trade-induced changes in Mexican labor demand on population growth and migration responses at the local level. It exploits cross-municipality variation in exposure to a change in trade policy between the United States and China that eliminated potential tariff increases on Chinese imports, negatively affecting Mexican manufacturing exports to the United States. Municipalities more exposed to the policy change, via their industry structure, experienced greater employment loss. In the five years following the change in trade policy, more exposed municipalities experience increased population growth, driven by declines in out-migration. Conversely, 6 to 10 years after the change in trade policy, exposure to increased trade competition is associated with decreased population growth, driven by declines in in-migration and return migration rates, and increased out-migration. The sluggish regional adjustment is consistent with high moving costs and transitions across sectors in the short term.

Leaks are pervasive in politics. Hence, many committees that nominally operate under secrecy de facto operate under the threat that information might be passed on to outsiders. We study theoretically and experimentally how this possibility affects the behavior of committee members and decision-making accuracy. Our theoretical analysis generates two major predictions. First, a committee operating under the threat of leaks is equivalent to a formally transparent committee in terms of the probability of supporting the adoption of a new policy. Second, the threat of leaks leads to status quo bias. In our experimental analysis of a committee with possible leaks, individual behavior is often less strategic than theoretically predicted, which leads to frequent leaks. However, despite these deviations on the individual level, our experiment confirms the two major theoretical predictions.

This paper studies how the opening of the Panama Canal in 1914 changed counties’ market potential and influenced the economic geography of the USA. We compute shipment effective distances with and without the canal from each US county to each other US county and to international ports and compute the resulting change in market potential. The main elasticity would imply that a 1% increase in market potential led to a total increase of population by around 2.3% in 1940. We compute similar elasticities for wages, land values, and immigration from out of state. Tradable (manufacturing) industries react stronger than non-tradable (services) industries.

During the COVID-19 pandemic, the youth mental health crisis has reached unprecedented levels. To which extent school closures, one of the most heavily debated pandemic measures, have contributed to or even caused this crisis is largely unknown. We seek to narrow this blind spot, by combining quasi-experimental variation in school closure and reopening strategies across the German federal states at the onset of the pandemic with nationwide, population-based survey data on youth mental health and high-frequency data from the largest crisis helpline. We show that prolonged school closures led to a substantial deterioration in youth health-related quality of life, precipitating early signs of mental health problems. The effects were most severe among boys, younger adolescents, and families with limited living space. We further provide evidence that family problems are a major issue that adolescents were struggling with when denied access to school. Overall, school closures largely explain the deterioration of youth mental health over the first pandemic wave.