15 Results

German GDP expected to increase by 1.8 percent (2015), 2.1 percent (2016), and 2.3 percent (2017) – Strong consumption growth is driving economic activity – Imports will grow faster than exports – Weakness in emerging markets and China weighs on...

The German economy is cooling significantly and the global political uncertainty is affecting the German economy. In their current economic outlook, the researchers of the Kiel Institute for the World Economy revise their forecast for growth in gross...

The German economy is facing one of the weakest years since the financial crisis. The economic researchers at the Kiel Institute expect gross domestic product to grow by only 0.4 percent in 2019, 0.2 percentage points less than previously forecasted....

We analyze the implications of trend growth for optimal monetary policy in the presence of search and matching unemployment. We show that trend growth inter- acts importantly with the inefficiencies stemming from the labor market. Higher trend growth...

This paper analyzes Germany’s unusual labor market experience during the Great Recession. We estimate a general equilibrium model with a detailed labo

This paper analyzes Germany’s unusual labor market experience during the Great Recession. We estimate a general equilibrium model with a detailed labor market block for post-unification Germany. This allows us to disentangle the role of institutions...

Global competition and the global financial crisis have put additional pressures on education programs around the world. A new wave of globalization is under way, in which outsourcing and offshoring no longer just affect unskilled and manufacturing...

This paper characterizes long-run and short-run optimal fiscal policy in the labor selection framework. In a calibrated non-Ramsey decentralized equilibrium, labor market volatility is inefficient. Keeping fixed the structural parameters, the Ramsey...

Labor’s share of income varies over the business cycle, and different theories of nominal rigidities predict different behaviors for labor’s share. Based on evidence from a VAR for the USA, labor’s share falls sharply after a positive productivity...

This paper documents a puzzling fact, namely that there is a significant negative relation between employment protection legislation and the usage of the intensive margin of labor market adjustments. I make use of a real business cycle model and...