News Archive

joining hands with EU stars

Calamities, Common Interests, Shared Identity: What Shapes Altruism and Reciprocity?

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Working Paper
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Information on the Covid-19 pandemic increases altruistic behavior and reciprocity towards compatriots, citizens of other EU countries, and non-EU citizens. This is one key result of a large-scale survey experiment conducted in August 2020 by EconPol Europe network members in nine European countries. The study also finds that priming common European values boosts altruism and reciprocity, but only towards compatriots and fellow Europeans.

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Taxing the Residual Profit of Multinational Enterprises: A Critique of Formulaic Apportionment and a Proposal

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Policy Brief
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In the context of a changed digital economy, the OECD has put forward a proposal that requires large multinational companies to pay some of their income taxes where revenue is generated, i.e. in countries where the consumers or users are located. It is suggested that taxing rights should be allocated using a revenue-based formula. This policy brief argues against the use of such a rule that requires the multilateral assessment of MNEs’ worldwide profit.

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reverse mortgage

Is there a need for reverse mortgages in Germany? Empirical evidence and policy implications

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Policy Report
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Building up sufficient capital for old-age provision, poses a challenge to private households. Homeowners can resort to illiquid housing wealth by using home reversion plans or reverse mortgages. While reverse mortgages are common in the USA and the UK, a German market is quasi non-existent. This Policy Report provides evidence on the demand- and supply-side reasons for the absence of a reverse mortgage market in Germany. It finds that there is potential for the market to grow in the medium term and could benefit cash-poor but house-rich households, hence decreasing old-age poverty.

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Young woman receiving a vaccination jab

How Fast Must Vaccination Campaigns Proceed in Order to Beat Rising Covid-19 Infection Numbers?

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Policy Brief
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Facing a third Covid-19 outbreak in the spring of 2021 a central question for European policymakers is at what point a vaccination campaign has acquired sufficient speed to overcome the increase in infections, so as to justify lifting NPIs at least partially. The authors of this study derive an expression for a critical threshold that is shaped by three factors: First, the mortality risk from a Covid-19 infection increases exponentially with age. Second, the sizes of age cohorts decrease linearly at the top of the population pyramid. And third, vaccination proceeds at an increasing speed.

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Pile of files

What Are the Priorities of Bureaucrats?

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Working Paper
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The functioning of public bureaucracies is considered a principal driver of government effectiveness and state capacity. Surveying more than 900 real-life procurement officials in Finland and Germany on the basis of hypothetical choice experiments the authors of this study find that bureaucratic decision-making is based to a large extent on intrinsic motivation. While bureaucrats lack important career or pay incentives, they have substantial discretion at work.

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