bluuebunny/crossref_metadata_2025 huggingface dataset:
Löhne, Wechselkurse und Beschäftigung
Authors: Suntum Ulrich van
Published: May 2016

In recent time it has been argued that Germanys international competitiveness had suffered more from the strong D-Mark than from the national wage level. As a proof it has been pointed to the relative impact of these two factors on the level of German unit labour costs, measured in terms of international currency.

It is shown that neither the real exchange rate nor international unit labour costs are an unambiguous indicator of international competitiveness. On the other hand, the seemingly naive indicator of the rise in unit labour costs in national currency is by far more relevant in evaluating the impact of the wage level on national employment, at least in the long run. This is true in case of flexible as well as in the case of fixed exchange rates and also in case of a currency union. Moreover, it is argued that a flexible exchange rate will never do the job of outweighing the negative effects on employment caused by a rise in wages which is in excess of the rise in productivity. Hence with flexible exchange rates national real wage policy must bee eaqually aware of employment needs like with fixed exchange rates or in case of a currency union.
Politische Institutionenökonomik multilateraler Entwicklungshilfe
Authors: Gelbhaar Siegfried
Published: May 2016

The article analyses the economic rationality of multilateral arrangements in foreign aid policy. In the centre of attention is a comparison of patterns of valuation taken from the theory of welfare concerning selected forms of international co-operation. Furthermore, the paper discusses patterns of explanation for the coming into being and the function of multilateral organisations from a publicchoice- perspective. The result of politico-economic evaluation is ambivalent: On the one hand those institutions reduce the transparency and the possibility of democratic and parliamentary control of international politics respectively. Thus, the structural efficiency of the aims of political programs could be endangered. Furthermore specific agency-problems aggravate the conditions for the realisation of political aims at minimum cost. On the other hand multilateral organisations open up a special strategic set of action for democratically elected politicians upon which institutions such as the IMF or the World Bank could at least possibly foster economic welfare.
Umwelt- und Sozialdumping: Argumente gegen freien Welthandel?
Authors: Adlung Rudolf , Langhammer Rolf J. , Klemmer Paul
Published: May 2016

This economic policy forum deals with the question of whether environmental and social dumping justifies countervailing trade policy measures. Rolf Langhammer and Rudolf Adlung both argue that there is no need for such policy measures. Langhammer first questions the effectiveness of anti-dumping procedures in general, since their effect on domestic economies is rather detrimental. He then argues that due to different preferences and factor endowments prices for environment and labour vary between countries. Trade policy measures in order to adjust these price differences would be contra-productive for protecting the environment and the rights of employees. On the contrary, they would reduce economic growth in these countries, which is necessary for a higher level of environmental protection and employee rights. Therefore he rejects the idea of introducing anit-dumping measures with regard to environmental and social objectives.

Adlung addresses the question of whether the WTO is an adequate forum for establishing worldwide environmental and social standards. He contends that this is not the case since the WTO provides a framework for trade policy in order to improve the efficiency of markets by reducing state interventions. The inclusion of environmental and social policy objectives in the WTO would have the opposite effect because it would give states an argument for protectionist measures. Therefore he suggests that environmental and social policy aspects should be dealt with in different fora such as the International Labour Organisation.

Paul Klemmer holds that protectionist measures might be justified if environmental policies have trade distortive effects. However, so far empirical studies have not proved that divergent international environmental standards lead to negative economic effects. Furthermore, in order to take any action against a country it has to be proved that the country purposefully imposes intolerable damage on its eco-system or its population. Yet, due to methodological problems, it is rather difficult to judge whether a certain policy can be considered to be one of environmental dumping. Hence, protectionist measures are rather inappropriate to avert environmental dumping.
Zur Frage der realwirtschaftlichen Konvergenz in der Europäischen Union
Authors: Molitor Christian
Published: May 2016

The paper examines theoretical and empirical aspects of convergence in the European Union. Whether the European economies will converge in the future or not, cannot be determined by theoretical reasonning. Neoclassical models predict convergence, endogenous growth models and new regional economics allow for divergence. However, the empirical results for the EU suggest slow (absolute) convergence between the national economies in the past. The economies seem to belong to the same “convergence-club”. The autonomous role of wage policy for the convergence process - somewhat neglected in most theoretical models - as well as some policy implications of the results are also discussed.
Zum Wort der Kirche zur wirtschaftlichen und sozialen Lage in Deutschland
Authors: Homeyer Josef , Hax Herbert , Habisch André
Published: May 2016

This economic policy forum is assigned to the position of the church on the economic and political situation in Germany. Bishop Joseph Homeyer presents the origin, content and intention of the position of the church, in order to illustrate how the two German churches, the catholic and the protestant, perceive their social and political responsibility. Homeyer shows that the churches launched a process of consultation where all groups of the society were invited to present their positions. In a second step the churches analysed three major challenges: mass unemployment, the crisis of the social state and globalisation. Based on this analysis a consens on four issues has been considered to be crucial for the future society: 1) both freedom and personal responsibility are important, 2) economic competition needs to take into account social and ecological aspects, 3) solidarity and justice require a fair distribution of burdens and 4) the principle of subsidiarity has to be properly implemented.

Herbert Hax criticizes the position of the church by focusing on three issues: 1) the definition of poverty, 2) the remarks on social and family policy and 3) the propositions on reducing unemployment. On the issue of poverty, Hax questions the criteria used for defining poverty. He argues that they are rather relative and therefore more appropriate to define ineqality. However he considers inequality to be necessary as an incentive for performance. Although the churches stress the principle of solidarity it seems that their demands concerning familiy policy contradict this principle. On unemployment the author rather doubts whether the propositions made by the churches will solve the problem of high unemployment.

André Habisch analyses the position of the church from a historical perspective. He argues that traditionally the church in Germany has had a rather sceptical view on the performance of markets. This is due to its role as an institution that feels responsible for poor and weak people. However, by looking at the position of the church in more detail, one can notice that the church supports the social market economy as a model for the future. Also on globalisation the church is not as negative as one might think. Both risks and chances are assessed by them. Although some particular positions of the church deserve to be criticized, overall the author agrees with the church in adding an ethic dimension to the economic analysis.
Ausgestaltung und Wirkung einer ökologischen Steuerreform
Authors: Klepper Gernot , Scholz Christian M. , Peffekoven Rolf , Weizsäcker Ernst Ulrich von
Published: May 2016

This economic policy forum deals with the design and impact of an ecological tax reform. Gernot Klepper and Christian M. Scholz argue that the various effects of an ecological tax reform cannot be discussed separately. Rather, allocative effects and fiscal policy aspects have to be considered together. While they agree that ecological taxes might improve environmental quality, they reject the assertion that there are also positive welfare effects arising from such a tax reform. Instead, they consider it as likely that eco taxes cause negative employment effects. At most, these negative employment effects can be prevented. However, for doing so, it is necessary to use the additional tax revenues for reducing wage costs. In addition, trade unions would have to forgo wage increases.

Rolf Peffekoven agrees with Klepper and Scholz as to the effects of an ecological tax reform: A better environmental quality and economic efficiency cannot be realized simultaneously. He then points out some problems which may arise when eco taxes are introduced. For instance, eco taxes imply a conflict between fiscal and environmental objectives (tax revenues and reduction of pollution). Furthermore, in order to achieve the objective of a better environmental quality it is important to determine the correct tax rate and tax base. Thereby one has to bear in mind that if only one country decides to introduce eco taxes competitive distortions and a shift of production to other countries would be the result.

In contrast to the previous contributions Ernst Ulrich von Weizsäcker argues that a properly dimensioned ecological tax reform may cause ecological and economic benefits. While he acknowledges the arguments against such a tax reform, he claims that there are three strong arguments in favour of an environmental tax reform: the increasing need for climate protection, the creation of an adequate economic incentive structure, and the reduction of other taxes and fees which are more damaging than energy taxes. In addition, he proposes to cut all subsidies to the energy, transport and agricultural sector since they have not only a harmful effect on the environment but are also inefficient in economic terms.
Agenda 2000 und zukünftige Entwicklungszusammenarbeit der Europäischen Union Öffentliches Interesse vs. private Eigentumsrechte - Wettbewerbsprobleme in der Gaswirtschaft
Authors: Urff Winfried von , Schmitz P. Michael , Hagedorn Konrad , Eggers Jörg
Published: May 2016

This economic policy forum is assigned to the reform of the Common Agricultural Policy (CAP) with a view to the Agenda 2000. Thereby Winfried von Urff discusses the implications of the Agenda 2000 for developing countries. He argues that the implementation of the Agenda proposals would result at most in rather modest price increases on the markets for agricultural products. Therefore there will be no serious impact on developing countries. In the second part of his paper von Urff discusses the future relationship between the EU and the ACP countries. Thereby he analyses the Lomé Convention as a regional agreement that focuses on rural and agricultural development by allocating grants and loans to 70 ACP countries. He argues that the public should pay more attention to this issue.

Michael Schmitz analyses the distributive and allocative effects of the reform of the CAP as outlined in the Agenda 2000. In general, he supports the Agenda 2000 initiative by the European Commission, because in his view it continues the 1992 CAP reform by reducing product related subsidies and encouraging farmers to use less intensive production methods. However, on some issues he also criticises the Agenda 2000. For instance, the Commission does not specify how to achieve a stronger efficiency control of its measures. Overall, the Commission fails to clearly commit itself to a market driven CAP. There remain too many interventionist elements.

Konrad Hagedorn and Jörg Eggers analyse the environmental effects of the proposed CAP reform. Thereby they focus on the nitrogen problem. They show that the proposals of the Agenda 2000 will not result in a significant reduction of nitrogen as a main source of water pollution. Compensatory payments granted to farmers in order to offset the effects of price reductions might have the desired distributive effects. However, even if they are made conditioned upon fulfilling environmental criteria, they will not achieve the aim of a sustainable agriculture. Therefore they present an alternative model for agricultural production methods that is more likely to have a positive ecological impact.
Überlebt der Flächentarifvertrag die Globalisierung?
Authors: Stumpfe Werner
Published: May 2016

Due to the ongoing globalization of markets and enterprises labour and management face new challenges when negotiating collective wage agreements. Yet, this does not mean that nationwide collective wage agreements should be abolished. Rather, there is a need to reform them. To be able to adjust successfully to a rapidly changing environment, collective agreements have to be made more flexible. In particular, a new distribution of rule-making competencies between the social partners at the industry level on the one hand and the social partners at the company level on the other hand is needed. In future, the main task of labour and management at the industry level will be to establish a framework with general rules. The social partners at the company level will have to agree within this given framework upon specific working conditions according to the individual requirements of firms.
Stabilitätspakt – Eine fiktive ex-post Anwendung und reale Probleme der Zukunft
Authors: Sutter Matthias
Published: May 2016

This article deals with the stability and growth pact approved of by the EU’s heads of state or government in Amsterdam in June 1997. The pact’s aim is to provide budgetary discipline in Stage 3 of the European Monetary Union in order to ensure a stable common currency and the European Central Bank’s independence. Excessive deficits are evaluated by taking into account real GDP growth. A hypothetical application of the stability pact for the period 1979 to 1996 shows considerable problems for some future EMU-members if structural deficits are not reduced before entering EMU. The credibility of the stability pact within EMU will depend upon timely and exact statistical data as well as on a strict application of its rules. On both accounts there remain doubts.
Zur Theorie des Currency Boards
Authors: Fuhrmann Wilfried
Published: May 2016

Α Currency Board (CB) does not fly on its own wings. Monetary stabilization requires more than establishing a CB. Of course, the fixing of the exchange rate to an adequate anchor currency, a reserve ratio of 100 per cent for the monetary base (and by this foreign reserves) and, in avoidance of a reduced reputation, transparent rules for changes by a qualified majority in parliament only are important characteristics. Further indispensable essentials are an effective banking-supervision as well as the control of the money-creation on the base of domestic sources by means of a minimum-reserve-requirement, especially in countries under transition, or other efficient measures. This may be done by an independent central bank with additional boards, as there are a Banking Board and a Supervision- Agency, beside the CB.

The foreign reserves, the independent central bank with given rules for the CB and efficient capital markets are important factors for the credibility of the CB-solution. However, most important is the social consensus. And at least, it has to be covered by fiscal stability and by (reforms of) the real-sectors and its integration into the international markets.

A Currency Board is a corner stone within an efficiency- and market-oriented framework, enforcing a convergent development of the country. Interpreting a CB with its fixed rules as a suboptimal solution (compared to a more flexible discretionary policy) as well as a temporary institutionalization (or even as the lesser evil) means to reduce its credibility from the very beginning, higher capital costs and to create severe problems when (creepingly) switching to a regime with more national monetary autonomy and flexibilities. A Currency Board goes with economic reasoning and stands in contrast to politicians freedom of scope.
Bedeuten deutsche Direktinvestitionen im Ausland einen ‘Export’ deutscher Arbeitsplätze?
Authors: Jörg Volkswirt
Published: May 2016

This article provides an empirical assessment of a German ‘job export’ through foreign direct investment (FDI). To do this it highlights the rather problematic statistical registration of FDI. A theoretical framework is given, whereafter home country employment effects are derived from different motivations for FDI. While ‘cost oriented’ FDI are substitutive in nature and have a negative effect on home country employment, ‘market oriented’ FDI are supposed to strengthen the export basis, hence home production and employment. Statistically the structure of German FDI by industry and host regions indicates a predominance of ‘market orientation’. Exploring the motivation for German FDI by an error correction model ‘market orientation’ and ‘cost orientation’ are pervasive but with some differences in industries. In a cross-sectional analysis of FDI and employment in Germany FDI-intensive industries show a better employment performance than less FDI-intensive industries. All in all, the empirical basis for a German ‘job export’ is weak. German FDI seem to have a rather positive net employment effect. Finally, policy conclusions are drawn.
Die Liberalisierung des deutschen Telekommunikationsmarktes: Zukünftige Regulierungserfordernisse im Lichte bisheriger Erfahrungen
Authors: Knieps Günter , Vogelsang Ingo , Witte Eberhard
Published: May 2016

This economic policy forum focuses on the liberalisation of the German telecommunication market. In view of former experiences future regulation requirements are discussed. Günter Knieps stresses that the problem of market power is central for answering the question of future division of labour between sector-specific regulations and the application of the competition law. Net-specific market power is only expected in monopolistic bottlenecks characterised by irreversible costs so that sector-specific regulations should be exclusively restricted to these monopolistic bottlenecks. Knieps aims at establishing service as well as infrastructural competition in competitive telecommunication markets. He argues that the telecommunication markets should not be distorted by regulations. Another aspect of Knieps’ article is the question how the mobile telecommunication market should be regulated. He examines whether the mobile telecommunication markets are characterised by monopolistic bottlenecks. However, Knieps does not find evidence for the existence of the latter. Finally, the author concludes that slimy regulations of net-specific market power is necessary to use all advantages provided by liberalised telecommunication markets. Therefore, the concept of “essential facility” should be employed.

Ingo Vogelsang emphasises that the telecommunication sector is characterised by a great volume of investment. Rapid technical progress and fast changing markets can lead to uncertainty which makes investment insecure. On the one hand, Vogelsang points out that regulations can reduce the investors’ uncertainty. On the other hand, he reminds the reader that regulations can raise risk of investments. The main aspect in this context is the increasing uncertainty in law. Therefore, the author proposes regulative decisions that are predictable in the long run. Yet, long-term plans specifying definite time plans for regulations would not be successful. In contrast, the author suggests time independent development steps. For this reason, Vogelsang introduces a “Four Step Plan of Regulation” discussed in this article.

Eberhard Witte remarks that the current regulations in the German telecommunication market result from several reform steps. He points out that the reforms in other countries, as e.g. in the United States or the United Kingdom have advancedthe liberalisation in Germany. Hence he describes the process of the German telecommunication market liberalisation with regard to the speed and the sequence of political actions. According to Witte’s opinion, the necessary rearrangements of the German telecommunication market are not yet finished. The author emphasises that one problem remains: Should new competitors be allowed to use the old infrastructure or should they be required to implement their own? Finally, he tries to answer this question for Germany and draws comparison to the experience of other countries.
Zur Rationalität einer beschäftigungsorientierten Mittelstandsförderung
Authors: Schulz Eckehard
Published: May 2016

This study yields the impact of firm size as a determinant of employment. Using the theoretical framework of labor elasticities, it is argued that Small and Medium sized Enterprises (SME’s) are superior in creating jobs if an increase in their share - by reducing the share of large firms - stimulates the aggregate demand for labor. This could be due to a (static) more labor intensive production technology and/or a (dynamic) higher efficiency. The so determined Mittelstands-hypothese is theoretically and empirically examined. Further - from an ordoliberal perspective - the question is raised whether other indicators are more qualified to boost employment and to refresh market forces in the longrun.
Unternehmensfusionen im Zeitalter der Globalisierung
Authors: Voigt Stefan , Kleinert Jörn , Klodt Henning , Wenger Ekkehard
Published: May 2016

This economic policy forum is assigned to the relevance of mergers in the era of globalization. Stefan Voigt argues that the number as well as the relevance of mergers has dramatically increased over the last couple of years. This has led to demands to modify the competition policies based on nation-state institutions but also to introduce an international competition policy. In his contribution, arguments in favor of merger-control as well as the possible relevance that globalization may have for merger policy are discussed shortly. The main emphasis, however, is on a discussion about whether competition is a useful method to discover adequate competition rules. The author is rather skeptical with regard to this prospect.

Jörn Kleinert and Henning Klodt show that mergers are observed mainly in large companies, so called "Megafusionen" a fact that demonstrates a domination of horizontal integration. They analyse these mergers with the help of the theory of transaction costs. Furthermore the authors argue that global economies of scale, which are due to headquarter services, have an impact on competition. This requires a more critical policy. Therefore Kleinert and Klodt demand for new international competition rules which go beyond the improved application of the national ones.

In his contribution on firm mergers, Ekkehard Wenger describes the often mentioned advantages of realising economies of scale and scope from a critical point of view. He notes that more than half of the "mega-mergers" can be seen as having failed. In this context, the question on the efficiency of fully functional capital markets is raised, as the latter could have prevented such failures. The author analysis this point of view by elaborating on the question about what conflicts of interests form the background in front of which the capital market functions or not. By referring to the principle-agent-theory, he shoes, how important this aspect is for assessing whether the mechanisms of corporate governance, which exist in reality, work or not. Wenger notes, that pressure groups like e.g. large investment banks support mergers planned by the management, which are not in the interest of the share holders. The writer says that instead of enacting legal regulations, the wage structure of all individuals, especially the management, in the firms which are affected by the merger should be changed
Zur Reform der Altersvorsorge – ein konstitutionenökonomischer Vorschlag
Authors: Voigt Stefan , Wagner Gert G.
Published: May 2016

Modifications in pay-as-you-go pension schemes are regularly met with broad public opposition. It is therefore rational for politicians who are interested in reelection to delay necessary reforms as long as possible. Short-termism is the result. Drawing on the concepts of constitutional economics, the characteristics of an old age provision system for which unanimous consent could be assumed are sketched. Then, a proposal to reform the current scheme is developed. Rather than discussing yet another formula, an institutional arrangement - a pension chamber - is proposed that sets incentives to take long run effects of old age provision systems explicitly into account. Recurring on political economy, it is shown that politicians can have an interest in the delegation of powers which is necessary for the implementation of the proposal.
Zur aktuellen Diskussion der Implikationen elektronischen Geldes für den Geldumlauf und die Geldpolitik
Authors: Kempa Bernd
Published: May 2016

Electronic money has a huge potential as an international medium of exchange, particularly for transactions via the Internet. This paper analyzes the likely consequences of this development for the money market and the effectiveness of monetary policy. A high degree of substitutability of electronic money with conventional money implies a heightened degree of instability of money demand. At the same time, the money supply process will be characterized by higher and more unstable multiplier effects. Refinancing operations, open market operations and foreign exchange market operations will increasingly lose their effectiveness as electronic money displaces conventional money. Fine tuning of the money supply and the effectiveness of discretionary monetary policy will consequently be impeded. In a world of electronic money the conduct of monetary policy should therefore solely be oriented towards maintaining price stability.
Prognosen zum E-Commerce - Ungewissheiten über das zukünftige Potenzial des elektronischen Handels
Authors: Mai Stefan
Published: May 2016

E-Commerce - an application of the internet - has expanded exponentially over the past five years and is widely expected to continue to develop rapidly. The potential of electronic commerce has caught the imaginations of politicians and business people. Yet, it is difficult to measure the current (and future) magnitude of e-commerce. Even more challenging is trying to assess the value of transactions within the latter, since defining what constitutes electronic commerce has proven to be somewhat intricate. A number of consulting groups, however, has published estimates of e-commerce transactions. These projections will be discussed in this paper. Furthermore, the paper shows that the future potential of e-commerce is uncertain, and points out that political authorities have to take this into account when considering prospective regulations for this industry.
Das Verhältnis zwischen Antidumpingpolitik und Wettbewerbspolitik: Konflikte und Lösungsansätze
Authors: Theuringer Martin
Published: May 2016

Classic antidumping measures serve to protect domestic firms against unfair import competition, but they have frequently undesirable, anti-competitive side effects. In this article, it is shown, that antidumping policy in the 1990s continues to favour cartelization and price collusion. It will be argued that the reform of antidumping policy rules should not be linked to international competition policy rules. Rather, during the next multilateral trade talks, the existing rules should be reformed in a way, which ensures that antidumping actions become compatible with a competition promoting policy.
Reforming the World’s Financial Order. Institutional and Theoretical Aspects
Authors: Müller Anton P.
Published: May 2016

Modern financial markets are characterized by rapid innovation and expansion as well as intensive internationalization. The liberalization of capital markets since the 1980s has been accompanied by a shift from structural regulation towards prudential supervision along with endeavors to establish international norms on capital adequacy. During the same period, the markets have been hit by a series of crises, which have caused concern that more strict and direct controls are warranted.

This paper argues that although liberalized capital markets do in some way possess an inherent tendency towards instability, almost all cases of severe disturbances in the international capital markets are the result of excessively expansive fiscal and monetary policies, which at some point had to give way to a sharp liquidity contraction. In order to stabilize the system, the monetary and fiscal authorities quite often accelerated expansive measures, exposing investors, lenders and borrowers to misleading interest rate and price signals which resulted in a postponement of the adaptation process and in a number of cases to the prolongation of stagnation. Given the international integration of modern financial markets, misplaced monetary and fiscal policies cause various international spillover effects. Repeated bailouts of borrowers and creditors by central banks, governments and international institutions have led to the persistence of moral hazard, as the assumption of implicit guarantees to stabilize financial markets has lowered the perception of risk and resulted in over-exposure.

This analysis leads to the conclusion that while more strict regulations might be applied to off-balance financial innovations and that capital adequacy norms should be more strictly enforced on an international level, further direct control seems to bring more harm than good and deflect the attention from the causes of financial instability, which are the inadequate control of liquidity.
Rationale Wirtschaftspolitik in einem komplexen System
Authors: Streit Manfred E.
Published: May 2016

Starting point for the present analysis is the finding, that a market economy represents an interactive complex and open system. A discussion of these properties emphasised by systems theory leads to the result, that attempts to steer such a system by means of economic policy have to face narrow boundaries, which can only be surpassed by initiating unpredictable reactions of the system. As a consequence the steering knowledge is considered to be unsatisfactory from the point of view of an economic policy guided by the rationality principle. This leads to the question, how interventions should look like, which comply with the steering properties of the system. It requires a reformulation of the criterion of systems conformity by drawing on two processes, which govern the economic performance of the system. According to this criterion, interventions should neither interfere with the self-coordination of the actors nor with their self control by competitive action. Considering typical examples of interventions leads to the unpleasant result that there are good reasons to accept the hypothesis of rent-seeking as a salient feature of economic policy-making. Interventions emerge from the interaction between a rent-seeking lobby and rent-creating political actors. Finally considering scientific policy advice, a conflict between the advisor who himself has committed to systems conformity, and the advised political actor, who is involved in rent-creating, is bound to emerge. This conflict can only be solved by engaging in constitutional reforms, which change the incentive situation of political actors completely. However, such reforms are difficult to bring about, because they manifestly go against the interests of political actors who have to set their own constitutional rules.
Zur Rentenproblematik: Lösungswege und Reformvorschläge. Nach der Reform ist vor der Reform: Weitere Schritte für eine nachhaltige Reform der Altersvorsorge in Deutschland
Authors: Börsch-Supan Axel
Published: May 2016

Auch nach der Rentenreform 2000 wird das Alterseinkommen im Wesentlichen von der umlagefinanzierten gesetzlichen Rentenversicherung getragen werden. Die zumeist unterschätzte Alterung der Bevölkerung und die nach wie vor bestehenden Anreizeffekte auf das Arbeitskräfteangebot werden daher weiterhin die gesetzliche Rentenversicherung unter großen Druck setzen.

Dieses Papier vertritt den Standpunkt, dass eine nachhaltige Sanierung der Rentenversicherung weitere Reformschritte benötigt. Die umlagefinanzierte Pflichtversicherungssäule sollte versicherungsmathematisch angepasst werden, den Versicherten ein transparentes Kontensystem anbieten und die Beitragssätze auf ihrer jetzigen Höhe einfrieren. Die neue freiwillige Zusatzversorgung sollte als Mischform der zweiten und dritten Säule gestaltet werden, um die anstehende Alterslast verlässlich finanzieren zu können. Sie bedarf ferner einer einheitlichen und in sich konsistenten Besteuerung sowie flankierender Kapitalmarktbestimmungen.
Alfred Müller-Armack – der Schöpfer des Begriffs “Soziale Marktwirtschaft”
Authors: Willgerodt Hans
Published: May 2016

After the Second World War centralized economic planning was seen as more or less unavoidable for economic recovery in most European countries including West Germany, with its destruction of all kinds and millions of destitute refugees. But as early as in 1945 Alfred Miiller-Armack proposed quite another remedy for recovery: West Germany should abolish its repressed inflation by a currency reform and at the same time return to a market economy. He called his concept “Social Market Economy” as a new type of economic order. It was intended to harmonize economic progress and free competitive markets with social stability and security in a more comprehensive sense. He became professor economics at the universities of Munster and Cologne. In 1952 the German reformer of economic policy and minister of economic affairs Ludwig Erhard appointed him as head of the department for principal issues in his ministry and in 1958 as secretary of state for European affairs. Miiller-Armack got the chance to apply his concept in political practice. This proved to be very successful, if one takes into account the difficulties and irrationalities of the political process. He became one of the leading German negotiators in the conferences establishing the European Economic Community, but resigned after de Gaulle’s veto against the admission of Denmark and the United Kingdom. The author examines in detail the controversial term “social” in Muller-Armack’s concept of a market economy. He concludes that seeming conflicts between socalled social aims and a free market can be made irrelevant to a large extent, if certain principles and limits are observed and aspects beyond supply and demand are included.
Inflation Forecast Targeting: A Monetary Policy Strategy without Shortcomings?
Authors: Clausen Jens R.
Published: May 2016

This paper provides a critical discussion of the benefits and shortcomings of the concept of inflation forecast targeting (IFT) which is becoming the dominating monetary policy strategy in theory and practice. The paper contains an analysis of the more practical and institutional aspects arising when following an inflation forecast targeting regime as well as a discussion of the theoretical reasoning behind it. The setting of an inflation target itself is a useful instrument to increase accountability. That is because the public can make judgements on how successful monetary policy has been. The concept of IFT also ensures that monetary policy is forward-looking. Nevertheless, this paper will argue that the theoretical reasoning behind IFT has limitations. The assumed monetary transmission process is too one-sided and the role of money is not incorporated adequately. Inflation forecast targeting does not necessarily ease the business of communication by focusing on inflation forecasts as the main communication vehicle. On the contrary, there are substantial difficulties in explaining the implications of conditional or unconditional forecasts. Forecasts as complementing devices are surely useful and important in monetary policy making. The discussion of transparency and credibility within an IFT regime neglects the fact that in the long term credibility relies on the degree of price stability achieved and not the publication of minutes.
Gesundheitsreform: Ende der Krise oder Krise ohne Ende?
Authors: Knappe Eckhard , Härter Stefan , Lauterbach Karl W. , Stock Stephanie , Evers Thomas , Zweifel Peter
Published: May 2016

The German Statutory Health Insurance System (Gesetzliche Krankenversicherung) has been in a continuous reform process for the past twenty years. Therefore this economic policy forum is assigned to the question: Health reform: End of the crisis or never-ending crisis?

Eckhard Knappe and Stefan Horter argue that this reform process was mostly dominated by the model of a cost-containment policy. Most health economists are not in favour of a global cost-containment policy, because it cannot solve the structural deficiencies within the system. As a result they recommend a further strategy of deregulation so that competitive processes will be enforced. Moreover Knappe and Horter show that this in turn will be more responsive to the preferences of the insured and patients and sets incentives for insurers and health-providers to follow efficiency goals in a static and dynamic way in order to mitigate the future burden of the demographic changes.

Karl W. Lauterbach, Stephanie Stock and Thomas Evers determinate the thesis that medical innovation and future demographic changes will lead to increased prevalence of chronic diseases and thus to a strong increase of health expenditures are well established, putting the health care system into a permanent financial crisis. This article demonstrates that such a crisis will not necessarily occur in Germany. There is evidence that prevention measures and disease management programs can induce significant cost savings for highly prevalent chronic diseases like diabetes mellitus, colon-carcinoma, ischemic heart diseases, and cerebrovascular diseases. The cost savings could result from delayed onset of chronic disease (due to prevention) and fewer complications (due to disease management) for such diseases. 20% of all health care costs are caused by 20% of the insured, mostly due to chronic disease. Despite these implications, a final conclusion about the future health expenditures cannot be drawn.

Switzerland often conceives of itself as a special case, and with regard to health care, it may well be one determines Peter Zweifel. In his article he argues that individuals have free individual choice of social health insurers and can express their preferences in the public domain rather directly, while competition in health care is fostered both by the new Law on Health Insurance of 1994 (LHI 94) and the new Law on Cartels of 1996. He discusses the objectives of the players involved in the promulgation of the LHI 94 and points out its inherent contradictions. Furthermore, Zweifel concludes by sketching additional future reforms that hold the promise of serving the objectives of insureds and patients by improving the ratio of expected benefits to cost in Swiss health care.
Wie erfolgreich sind Maßnahmen zur Förderung von ausländischen Direktinvestitionen? Empirische Befunde aus den Transformationsländern
Authors: Beyer Jürgen
Published: May 2016

Because of the scarcity of capital the attraction of FDI became an objective which was followed with topmost priority in many post-socialist countries. But how effective were the introduced incentives? The comparative analysis shows that in spite of the advantageous effects of FDI on the transition process, the introduction of tax concessions appears to be of little value. No significant relationship between tax incentives and the level of FDI could be found. This however does not mean that the development of FDI was detached from political control. The way in which privatization took place had a big impact and a comparatively low general level of taxes influenced investments positively. Beyond this the general success of transformation was of importance for the attractiveness of a country.
Die Steuerreform: Zum “Wann und Wie” der Durchführung
Authors: Peffekoven Rolf , Rose Manfred , Schön Wolfgang
Published: May 2016

Concerning the Tax Reform 2000 point of time and design are controversial. Because of the anyway high level of public debt a pre-drawing of the next stage of tax reform can not be financed by government borrowing argues Rolf Peffekoven. Furthermore he points out that “Länder und Gemeinden” have to accept additional public debt. Though additional tax cut is necessary for higher growth and higher employment, it must be financed by cutting down public spending, particularly transfer payments and subsidies. The different treatment of revenues contravenes the tax structure and leads to efficiency losses. Therefore Peffekoven contributes that a reform must take into consideration the principle of equal treatment, independent of source. But a comprehensive tax reform is linked to the abolishment of German trade tax (Gewerbesteuer).

Manfred Rose evaluates German tax reform by highlighting the conceptual framework that various reform measures can be attributed to. Due to a lack of understanding as regards economic effects of taxes, the German system of taxing personal and corporate income has become arbitrary and complicated. This makes the case for a fundamental reform towards an efficient, equitable and simple tax system. While some of the measures taken in the German tax reform contribute to a more efficient and equitable system, others seem to aggravate existing problems. This applies to income as well as corporate taxation. In his final section Rose characterizes a possible reform direction as proposed in the “Einfachsteuer” - a proposal for a fundamental reform of the German tax system.

Wolfgang Schön determinates that although the year 2001 confronted taxpayers, tax advisors and tax administration with the largest tax reform for decades, the advocates of another, even more comprehensive tax reform raise their voice. They will have to bear in mind that a coming reform must answer various questions, the author argues. For example: Shall we retain the classical income tax or move to a consumption-based approach? How shall we reach tax neutrality with respect to the legal form, the source of income, the finance side of an investment and the allocation of profits? What substitute do we find for the anachronistic trade tax (“Gewerbesteuer”)? How do we guarantee the international compatibility of German tax law after another fundamental tax reform?
Wie sinnvoll ist die Regionalpolitik der Europäischen Union?
Authors: Südekum Jens
Published: May 2016

European Regional Policies aim to close real income gaps between EU-regions by subsidising the economic periphery. These policies are motivated by new divergence theories in economics that imply regional income divergence as a possible result of free markets. However, the same theories identify various advantages from a spatially uneven resource allocation and do not point to an essential need for political interventions. Moreover, the European Commission in its endeavour to countervail agglomeration even pursues policies that sometimes achieve quite the opposite. Thus, this paper argues that European regional policies lack a convincing conceptual framework and should undergo substantial reforms.
Steht das US-Leistungsbilanzdefizit vor einer Korrektur?
Authors: Zimmermann Guido
Published: May 2016

Will the huge US current account deficit finally come down? Are lower capital imports into the US or even a capital flight out of the country threatening the US Dollar? I will argue that the US current account deficit will close gradually over the next years. Due to higher productivity growth relative to Europe and Japan and because of the special role of the US Dollar this will not entail a strong depreciation of the Dollar, however.
Familiengeld und Kindergeld als Instrumente der Familienförderung
Authors: Eekhoffund Johann , Henman Barbara
Published: May 2016

In this article the consistency, redistributional effects and work incentives of the support payment for dependent children (Kindergeld) in Germany are discussed. The child benefit, although paid out as a lump-sum, does not lead to an equal monetary transfer per child. The transfer rather depends on the family-income, as the support is optional to taking tax allowances for dependent children (Kinderfreibeträge). Considering that child allowances are no tax benefits, but lead to an equal taxation of taxpayers with children and without, the remaining transfer, the net child benefit, depends on the families tax burden paid on the - otherwise tax-free - income needed for child maintenance. Due to the progressive income taxrate the tax surcharges are increasing with the income and the net-transfer per child decreases accordingly. This leads to disincentives to work for parents. The reasoning and general rules of distribution behind the optional child benefit remain unclear. The payment does not serve welfare purposes as it counts against the supplementary welfare benefits (Sozialhilfe), which secure a minimum income of the poor. The income related transfer also does not generally recognize the upbringing of children, e. g. to make up for disadvantages families face in some of the social insurances on a pay-as-you-go basis, above all the pension insurance fund (gesetzliche Rentenversicherung). The authors argue for a separation of both instruments - the child support payment and the allowances for children. In addition, the current disadvantages of families in the pension insurance fund demand systematic family oriented reforms within the pay-as-yougo system.
Arbeitsanreize für gering Qualifizierte: Anforderungen an das Transfersystem
Authors: Vierling Michael
Published: May 2016

Germany’s social aid and unemployment assistance do not support work incentives, neither with regard to their levels nor their reductions when working hours increase. Thus the social policy trap is complemented by the trap of wages that are too high to allow for full employment. As a consequence, the less qualified are excluded from work. This part of the unemployment problem could be avoided. The key question is how to reconcile incentives for work and for obtaining state transfer. How can the “make-work-pay”-target be achieved? It seems crucial that social aid and unemployment assistance be transferred from income substitutes to wage supplements for those who can work.

Positive work incentives can be expected if the transfer depends on hourly wages and, consequently, on the hours worked. The transfer can be designed as a wage rate subsidy or as an exemption from social security contributions. The features of the “Mainzer Modell”, recently introduced on the federal level, do not meet this requirement. However, the USA’s EITC income tax transfer scheme - at least EITC’s income supplementation for the lowest income ranges - could actually serve as a model for change in Germany.
Fiskalischer Föderalismus und Staatstätigkeit
Authors: Schaltegger Christoph A.
Published: May 2016

What is the impact of federalism on the size of government? On the one hand, various externalities and unexploited economies of scale caused by federalist institutions favour a larger size of government. On the other hand, some authors argue that federalism represents an institutional barrier for policy makers eventually restricting their policy discretion to deviate from voter preferences. Consequently, the net effect of federalism is open from a theoretical point of view. This paper evaluates the different aspects of federalism empirically for Swiss cantons with a panel of annual data from 1980 to 1998. The results indicate that federalism in Switzerland rather favours a smaller size of government.