EconStor Collection:
https://hdl.handle.net/10419/45785
2024-03-29T08:49:27ZMarket dynamics, dynamic resource management and environmental policy in the context of (strong) sustainability
https://hdl.handle.net/10419/48714
Title: Market dynamics, dynamic resource management and environmental policy in the context of (strong) sustainability
Authors: Klarl, Torben
Abstract: In this paper, we investigate the relationship between market dynamics, dynamic resource management and environmental policy. In contrast to static market entry games, this paper draws attention to the effects of market dynamics on resource dynamics et vice versa, because (1) we show that feedback processes are necessary for obtaining a better understanding of what drives the \textit{dynamics} between the evolution of common-pool resources and the number of harvesters and more importantly, (2) this analysis provides an environment discussing sustainability in an appropriate inasmuch dynamic way. The paper makes following major points: (1) Interpreting the monopoly-scenario as a non-cooperative solution and the firm coexistence solution as a cooperative solution, it is shown that the coexistence solution of this model implies a degenerate saddle-node equilibrium. (2) An increasing number of harvesters does not necessarily imply a lower stock of the common-pool resource in the long run. (3) The paper introduces a way establishing an output-sharing solution by implementing an output tax, which turns out to be a pure effort tax in the long run. (4) Strong resource sustainability is not possible, given cost reducing technological progress is relevant and policy interventions ceased. With respect to environmental policy, we can conclude that a tax scheme is not a substitute to a partnership solution dealing with the common-pool problem, but is treated as an instrument establishing such a solution in the sense of a policy mix approach.2011-01-01T00:00:00ZOptimal Choice of Health and Retirement in a Life-Cycle Model
https://hdl.handle.net/10419/48681
Title: Optimal Choice of Health and Retirement in a Life-Cycle Model
Authors: Kuhn, Michael; Wrzaczek, Stefan; Prskawetz, Alexia; Feichtinger, Gustav
Abstract: We examine within a life-cycle set-up the choice of health and retirement. Health care contributes to a reduction in both mortality, determining the need to accumulate retirement wealth, and in morbidity, determining the disutility of work. The retirement age affects health through the value of survival and the value of morbidity reductions. We compare the allocation for a first-best setting where the individual can transfer wealth freely within a perfect annuity market with a second-best set-up with an incentive incompatible (yet actuarially fair) retirement scheme and an imperfect annuity market and show how the inefficiencies shape the health-retirement nexus.2011-01-01T00:00:00ZThe Dynamics of Earnings in Germany: Evidence from Social Security Records
https://hdl.handle.net/10419/48692
Title: The Dynamics of Earnings in Germany: Evidence from Social Security Records
Authors: Giesecke, Matthias; Bönke, Timm; Lüthen, Holger
Abstract: We examine patterns of earnings volatility for male employees who are subject to statutory social security contributions in West Germany over the period 1986 - 2005. For this purpose, we analyse individual records covering highly reliable earnings biographies provided by the German Social Security Administration. We decompose earnings into permanent and transitory components and estimate parameters of the underlying variance-covariance structure of the earnings components model. This provides insights into the mechanics of earnings dynamics of the German labour market. We find evidence for increasing overall volatility which is predominantly driven by the permanent earnings component and therefore indicates increasing earnings inequality.2011-01-01T00:00:00ZForeign Direct Investment, Search Unemployment, and the Role of Labor Market Institutions
https://hdl.handle.net/10419/48730
Title: Foreign Direct Investment, Search Unemployment, and the Role of Labor Market Institutions
Authors: Schmerer, Hans-Jörg
Abstract: This paper proposes a simple multi-industry trade model with search frictions in the labor market. It will be shown that the reallocation of capital across countries in formof FDI leads to changes in unemployment at the extensive and intensive industry margins. Whether a country benefits from FDI highly depends on the respective country’s net-FDI flows. Unilateral changes in labor market institutions trigger spillover effects induced by a reallocation of industries across countries, which affects labor markets in all economies integrated through trade. The model yields two predictions that are tested in the second part of the paper by use of OECD data on unemployment, FDI, and labor market institutions. It will be shown that net-FDI is robustly associated with lower rates of aggregate and skill-specific unemployment. Finally, the theoretical and empirical findings also suggest that countries that exhibit a high degree of employment protection, or union density tend to have relatively more outward-FDI flows.2011-01-01T00:00:00Z