Ifo Institute

München, Germany

Ifo Institute

München, Germany

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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.

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.

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.

Rave T.,Ifo Institute | Goetzke F.,University of Louisville
Journal of Environmental Planning and Management | Year: 2016

This paper provides new econometric evidence on the determinants of eco-innovations by using multiple innovation indicators and by combining survey-based information and patent records at the firm level from two different time periods. We hypothesize that firms with a propensity to patent focus on future technological and market opportunities and do not directly or immediately react to incentives created by environmental policies. Based on negative binomial models, we confirm that eco-patents are stimulated by the expectation of creating technological advancement and new market opportunities. By contrast, energy cost savings can better or more easily be achieved when firms refrain from patenting and concentrate on non-patented innovations or adoption. Favorable framework conditions created by environmental policies and patent protection are also important for eco-patenting, but more in the longer term. Testing the validity of using self-reported eco-innovations, instead of patents, as the dependent variable in simple binomial probit models reveals that product eco-innovations as reported in the surveys are a relatively good proxy for eco-patents. Yet, for product eco-innovations, serving and enlarging current markets is another important reason to innovate. © 2016 Newcastle University

Goetzke F.,University of Louisville | Rave T.,ifo Institute
Utilities Policy | Year: 2016

Expansion of renewable energies in Germany is strongly associated with decentralization of energy provision. In the case of wind energy there are especially strong regional-level spatial, technical, economic, and social ramifications of this energy source. In addition to differing natural conditions and the strong push from the federal feed-in tariffs, policies and initiatives at the state, county, and municipal level need to be considered when explaining the pattern of wind energy expansion across time and space and to improve the coordination of multi-level energy policies. This paper uses panel regressions at the level of German counties from 2001 to 2012 to explore the growth of wind power capacity. Based on the estimates obtained, we then analyze counterfactual scenarios in which factors influenced by the regional (county) level are varied individually. Our focus is on party policy preferences and coalitions on the one hand, and the unemployment rate on the other. While strict causality is difficult to establish, our results reveal heterogeneous incentives between states, within states, and between different county types. © 2016 Elsevier Ltd.

The aim of this study was to investigate the relationship between the stringency of NOx regulation and environmental technological change in the EU and US glass industry. A time series of patents on NOx primary reduction measures, including oxy-fuel technology drawn from the international patent class 'glass melting furnaces', serves as an indicator of technological change. A qualitative analysis based on patent data and face-to-face interviews with glass industry representatives revealed that NOx-related patent registrations, particularly in Germany and the US, are closely associated with early national NOx regulations and to a more limited extent with international regulation. Quantitative analysis of patent citations as a measure of knowledge spillover between patents showed that the strong environmental knowledge of Germany and the US is not only widely used within these countries, and also in other countries where environmental regulation began at a later stage. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment.

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.

Wohlrabe K.,Ifo Institute | Buchen T.,Ifo Institute
Journal of Forecasting | Year: 2014

The use of large datasets for macroeconomic forecasting has received a great deal of interest recently. Boosting is one possible method of using high-dimensional data for this purpose. It is a stage-wise additive modelling procedure, which, in a linear specification, becomes a variable selection device that iteratively adds the predictors with the largest contribution to the fit. Using data for the United States, the euro area and Germany, we assess the performance of boosting when forecasting a wide range of macroeconomic variables. Moreover, we analyse to what extent its forecasting accuracy depends on the method used for determining its key regularization parameter: the number of iterations. We find that boosting mostly outperforms the autoregressive benchmark, and that K-fold cross-validation works much better as stopping criterion than the commonly used information criteria. Copyright © 2014 John Wiley & Sons, Ltd.

Kauder B.,Ifo Institute
Papers in Regional Science | Year: 2016

During the 1960s and 1970s, the German state governments reduced the number of municipalities. Many independent municipalities in the outskirts of cities became districts of the respective cities. Using propensity score matching, I examine how the reforms influenced population growth in these incorporated units. The results show that the population of small incorporated municipalities grew by about 47 percentage points faster than the population of small municipalities that remained independent. The results do not show that large incorporated municipalities grew faster than large municipalities that remained independent. Population growth was stronger in municipalities that were incorporated later. © 2014 The Author(s). Papers in Regional Science © 2014 RSAI

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.

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