Overview publications

EU Policy Priorities: How to Ensure Europeʼs Competitiveness and Future Prosperity?

David Pinkus, Jean Pisani-Ferry, Simone Tagliapietra, Reinhilde Veugelers, Georg Zachmann and Jeromin Zettelmeyer, Frédéric Gonand, Pedro Linares, Andreas Löschel, David Newbery, Karen Pittel, Julio Saavedra and Georg Zachmann, Giuseppe Bertola, Georg Duernecker, Fredrik Erixon, Oscar Guinea and Oscar du Roy, Maria Savona, Iain Begg and Daniel Cicak, Roel Beetsma and Marco Buti

Europe ‒ once a leader in industrial development and innovation ‒ has lost its competitiveness. Which place will it take in a new world order? Climate protection and the digital transformation will also influence the next era of prosperity. The EU and its member states now want to build a robust, secure, resilient, and sustainable economy. Meanwhile, the US, China, and some emerging economies have overtaken the EU in many international rankings.

... Details

Patience and the North-South Divide in Student Achievement in Italy and the United States

BIG-DATA-BASED ECONOMIC INSIGHTS

Eric A. Hanushek, Lavinia Kinne, Pietro Sancassani and Ludger Woessmann

This article shows how Facebook interests can be used to construct subnational measures of patience (“the relative valuation of present versus future payoffs”). Differences in patience are closely related to regional student performance in Italy and the United States. The results provide new perspectives on long-standing differences between the countries.

... Details

Focus on Critical Key Technologies: The Race for Leadership in Industry and Technology Policy

ECONOMIC POLICY AND ITS IMPACT

Oliver Falck and Svenja Falk

Measures to promote technological sovereignty vary greatly from country to country and range from the promotion of R&D activities to subsidies for the construction of industrial plants. Systematic forecasting of technology trends would enable policy makers to deal with new technologies at an early stage and adapt policies and institutions.

... Details

Zeitenwende in German-Chinese Trade Relations?

Evidence from German Firms

Andreas Baur and Lisandra Flach

The Russian attack on Ukraine in February 2022 marked not only a turning point (Zeitenwende) for German security policy but also for German foreign economic policy. From a European standpoint, the war served as a painful reminder of how economic dependencies can be used as political leverage, bringing the geopolitical dimension of trade relations and economic interdependencies into public focus. In particular, economic ties with the People’s Republic of China are increasingly being scrutinized. The ifo Institute conducted a representative survey with German firms in February 2024 to assess changes in their reliance on Chinese inputs since the outbreak of the war and firms’ plans regarding their supply relationships with China.

... Details

EU Innovation Policy: How to Escape the Middle Technology Trap

Clemens Fuest, Daniel Gros, Philipp-Leo Mengel, Giorgio Presidente, and Jean Tirole

The EU is losing the global innovation race. EU industry invests less than its peers in R&D, it lags way behind in software and artificial intelligence, and its pharmaceutical component is at risk. For over 20 years the same companies, mostly from the automotive sector, have dominated EU innovation activity. 

... Details

Rise of Populism: Causes, Consequences and Policy Implications?

Sergei Guriev, Florian Dorn, David Gstrein and Florian Neumeier, K. Peren Arin, Efstathios Polyzos and Marcel Thum, Eugenio Levi and Steven Stillman, Manuel Funke, Moritz Schularick and Christoph Trebesch, Luisa Dörr, Niklas Potrafke, Felix Rösel and Tuuli Tähtinen, Vincenzo Galasso, Gylfi Zoega, Massimo Morelli

Populism is on the rise. It goes hand in hand with far-left or far-right party slogans and/or strong, personalized political leadership and polarized rhetoric: The presidency of Donald Trump in the US and the campaigns for the Brexit referendum are two prominent examples in recent years. Several EU member states, namely France, Italy, Spain, Portugal, Hungary, Greece, Austria, the Netherlands, Sweden, and Germany, have experienced how quickly populists win voters in national elections. With the presidential election in the US and European elections in 2024, many people fear a further rise in political polarization and populism in the Western world.

... Details

Inequality Trends in the Context of Changes in Labor Market Outcomes, Composition and Redistribution in Germany

INSTITUTIONS ACROSS THE WORLD

Maximilian Blömer, Elena Herold, Max Lay, Andreas Peichl, Ann-Christin Rathje, Paul Schüle and Anne Steuernagel

With ongoing demographic and economic changes, documenting the distribution of economic resources within a society is a recurring task for applied economic research that can never be considered complete. In Germany, several studies have investigated trends in earnings and income inequality in the past few years. However, a recent and comprehensive account of inequality in Germany that also considers dimensions other than earnings and income inequality is currently not available. This article documents the development of inequalities in Germany over the years from 1983 to 2020.

... Details