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München, Germany

Kauder B.,Ifo Institute
Journal of Regional Science | Year: 2015

I investigate whether the spatial administrative structure of agglomerations is associated with local business tax rates in core cities of agglomerations. Using data for German municipalities, I define agglomerations based on distances and based on cumulative population densities. The results show that the population share of the core in its agglomeration is positively associated and the number of surrounding municipalities is negatively associated with the tax rate of the core. When municipalities consolidate, the core has the opportunity to increase the tax rate. © 2015 Wiley Periodicals, Inc. Source


Huber M.,TU Munich | Weissbart C.,Ifo Institute
Energy | Year: 2015

China is one of the largest and fastest growing economies in the world. Until now, the corresponding growth of electricity consumption has been mainly provided by coal. However, as national reserves are limited and since burning coal leads to severe environmental problems, the employment of alternative sources of energy supply has become an important part of the Chinese energy policy. Recent studies show that wind energy alone could meetall of China's electricity demand. While our results validate these findings with regard to annual production, we look at the hour-by-hour resolution and uncover a major limitation: wind generation will not match the demand at every given point in time. This results in significant periods with over- and undersupply. Our study shows that combining wind and solar generation in the power system reduces overproduction significantly and increases the capacity credit of the combined VRE (variable renewable energy sources). The article demonstrates that up to 70% of VRE comprising 20-30% solar generation in the form of photovoltaics (PV) can be integrated into China's electricity system with moderate storage requirements. We encourage planners to consider those findings in their long-term planning in order to set up a sustainable power system for China at low costs. © 2015 Elsevier Ltd. Source


Candel Haug K.,Ifo Institute | Kretschmer T.,Ludwig Maximilians University of Munich | Strobel T.,Ifo Institute
Telecommunications Policy | Year: 2015

Cloud computing combines established computing technologies and outsourcing advantages into a new ICT paradigm that is generally expected to foster productivity and economic growth. However, despite a series of studies on the drivers of cloud adoption, evidence of its economic effects is lacking, possibly because many of the datasets on cloud computing are of insufficient size and often lack a time dimension as well as precise definitions of cloud computing, thus making them unsuitable for rigorous quantitative analysis. To overcome these limitations, we propose a proxy variable for cloud computing usage-cloud adaptiveness-based on survey panel data from European firms. Observations based on a descriptive analysis suggest three important aspects for further research. First, cloud studies should be conducted at the industry level as cloud computing adaptiveness differs widely across industry sectors. Second, it is important to know what firms do with cloud computing to understand the economic mechanisms and effects triggered by this innovation. And third, cloud adaptiveness is potentially correlated to a firm's position in the supply chain and thus the type of output it produces as well as the market in which it operates. Our indicator can be employed to further analyze the effects of cloud computing in the context of firm heterogeneity. © 2015 Elsevier Ltd. Source


Claussen J.,Copenhagen Business School | Kretschmer T.,Ludwig Maximilians University of Munich | Kretschmer T.,Ifo Institute | Kretschmer T.,Center for Economic Performance | Mayrhofer P.,Center for Digital Technology and Management
Information Systems Research | Year: 2013

We study the market for apps on Facebook, the dominant social networking platform, and make use of a rule change by Facebook by which highly engaging apps were rewarded with further opportunities to engage users. The rule change led to new applications with significantly higher user ratings being developed. Moreover, user ratings became more important drivers of app success. Other drivers of app success are also affected by the rule change; sheer network size became a less important driver for app success, update frequency benefitted apps more in staying successful, and active users of Facebook apps declined less rapidly with age. Our results show that social media channels do not necessarily have to be managed through hard exclusion of participants but can also be steered through "softer" changes in reward and incentive systems. © 2013 INFORMS. Source


Fujii E.,Kwansei Gakuin University | Fujii E.,Ifo Institute
Pacific Economic Review | Year: 2015

This study reconsiders the well-known cross-country positive association between prices and income by focusing on heterogeneity between the inter-developed-country and inter-developing-country relationships. Empirical results suggest that developed and developing countries exhibit the positive price-income association for different reasons. Specifically, we find only for the inter-developed-country case that the positive price-income association is attributable, at least partly, to the Balassa-Samuelson productivity differential effect. The idiosyncrasy of the inter-developing-country relationship is not dissolved by controlling for the effects of a variety of real and financial variables. The findings cast some doubt on the conventional explanation for the cross-country price-income relationship. © 2015 Wiley Publishing Asia Pty Ltd. Source

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