Start-up Competitions as an Instrument of Entrepreneurship Policy: The German Experience
Michael Schwartz, Maximilian Göthner, Claus Michelsen, N. Waldmann
European Planning Studies,
No. 10,
2013
Abstract
The number of aspiring entrepreneurs in high-tech industries who successfully complete the transition from a nascent start-up project towards an operational new venture is comparatively low in Germany. Since the mid-1990s, policy-makers have initiated numerous start-up competitions (SUCs or business plan competitions) to facilitate this important step in the venture creation process. SUCs have two key objectives. They are aimed at increasing start-up activity by motivating potential entrepreneurs, while they should also help to increase the likelihood of subsequent entrepreneurial success through providing necessary entrepreneurial skills to prospective entrepreneurs. With our explorative study, we provide the first comprehensive empirical evidence from a cross-sectional survey of existing SUCs in Germany. Overall, 71 SUCs are identified which are analysed regarding their development, regional distribution, and main structural characteristics. Finally, we outline an agenda of future research questions concerning the effectiveness and efficiency of SUCs as an instrument of entrepreneurship policy.
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Evaluation of the Main Achievements of Cohesion Policy Programmes over the Longer Term in 15 Selected Regions (from 1989-1993 Programming Period to the Present) (2011.CE.16.B.AT.015): Case Study Sachsen-Anhalt
Marina Grusevaja, Gerhard Heimpold, O. Schwab, K. Schwarze
Analyse: Bewertungen des Programmplanungszeitraums,
2013
Abstract
Sachsen-Anhalt’s regional development has been heavily determined by the transition from a centrally planned economy to a market economy after German unification in 1990. The process of transition took place during the 1990s as the formal rules associated with a market economy system were adopted. Nevertheless, a number of structural peculiarities which have their roots in the transition period continue to have an impact. This feature is not specific to Sachsen-Anhalt; it concerns all East German regions.
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Organization of EU Structural Policy in the Years 2007-20013 in Northwestern Germany, ed. by the German National Academy for Spatial Research and Planning
Martin T. W. Rosenfeld
Raumforschung und Raumordnung,
No. 2,
2013
Abstract
In jüngster Zeit wird wieder einmal kontrovers über die Frage diskutiert, wie effizient und effektiv die strukturpolitischen Programme der EU bislang waren. Wichtige neue Impulse für diese Diskussion liefert der jetzt von einer Arbeitsgruppe der Landesarbeitsgemeinschaft für Bremen, Hamburg, Niedersachsen und Schleswig-Holstein der Akademie für Raumforschung und Landesplanung vorgelegte Sammelband zur EU-Strukturpolitik in der noch laufenden Förderperiode (2007-2013) in den vier genannten nordwestdeutschen Ländern. Die theoretisch fundierten empirischen Untersuchungen zur Ausgestaltung der EU-Strukturpolitik im Nordwesten liefern wichtige Anregungen für die Politikgestaltung und dürften damit auch weit über Nordwestdeutschland hinaus ausstrahlen.
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The GVAR Handbook: Structure and Applications of a Macro Model of the Global Economy for Policy Analysis
Filippo di Mauro, M. Hashem Pesaran
Oxford University Press,
2013
Abstract
The recent crisis has shown yet again how the world economies are globally interlinked, via a complex net of transmission channels. When it comes, however, to build econometric frameworks aimed at analysing such linkages, modellers are faced with what is called the "curse of dimensionality": there far too many parameters to be estimated with respect to the available observations. The GVAR, a VAR based model of the global economy, offers a solution to this problem. The basic model is composed of a large number of country specific models, comprising domestic, foreign and purely global variables. The foreign variables, however, are treated as weakly exogenous. This assumption, which is typically held when empirically tested for virtually all economies - with the notable exception of the US which is treated differently - allows to estimate first the individual country models separately. Only in a second stage country-specific models are simultaneously solved, thus allowing global interactions.This volume presents - for a first time in a compact and rather easy to read format - principles and structure of the basic GVAR model and a number of its many applications and extensions developed in the last few years by a growing literature. Its main objective is to show how powerful the model can be as a tool for forecasting and scenario analysis. The clear modelling structure of the GVAR appeals to policy makers and practitioners as shown by its growing use among major institutions, as well as by econometricians, as shown by the main extensions and applications.
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Testing for Structural Breaks at Unknown Time: A Steeplechase
Makram El-Shagi, Sebastian Giesen
Computational Economics,
No. 1,
2013
Abstract
This paper analyzes the role of common data problems when identifying structural breaks in small samples. Most notably, we survey small sample properties of the most commonly applied endogenous break tests developed by Brown et al. (J R Stat Soc B 37:149–163, 1975) and Zeileis (Stat Pap 45(1):123–131, 2004), Nyblom (J Am Stat Assoc 84(405):223–230, 1989) and Hansen (J Policy Model 14(4):517–533, 1992), and Andrews et al. (J Econ 70(1):9–38, 1996). Power and size properties are derived using Monte Carlo simulations. We find that the Nyblom test is on par with the commonly used F type tests in a small sample in terms of power. While the Nyblom test’s power decreases if the structural break occurs close to the margin of the sample, it proves far more robust to nonnormal distributions of the error term that are found to matter strongly in small samples although being irrelevant asymptotically for all tests that are analyzed in this paper.
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How does Institutional Setting Affect the Impact of EU Structural Funds on Economic Cohesion? New Evidence from Central and Eastern Europe
Marina Grusevaja, Toralf Pusch
Journal of Common Market Studies,
2012
Abstract
Structural Funds are the main instrument of the EU Cohesion Policy. Their effective use is subject to an ongoing debate in political and scientific circles. European fiscal assistance under this heading should promote economic and social cohesion in the member states of the European Union. Recently the domestic institutional capacity to absorb, to distribute and to invest Structural Funds effectively has become a crucial determinant of the cohesion process and has attracted attention of the scientific community. The aim of this study is to shed light on the effectiveness of Structural Funds in the countries of the first Central and Eastern European enlargement round in 2004. Using regional data for these countries we have a look on the impact of several institutional governance variables on the effectiveness of Structural Funds. In the interpretation of results reference is made to regional economics. Results of the empirical analysis indicate an influence of certain institutional variables on the effectiveness of Structural Funds in the new member states.
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Bank Bailouts and Moral Hazard: Evidence from Germany
Lammertjan Dam, Michael Koetter
Review of Financial Studies,
No. 8,
2012
Abstract
We use a structural econometric model to provide empirical evidence that safety nets in the banking industry lead to additional risk taking. To identify the moral hazard effect of bailout expectations on bank risk, we exploit the fact that regional political factors explain bank bailouts but not bank risk. The sample includes all observed capital preservation measures and distressed exits in the German banking industry during 1995–2006. A change of bailout expectations by two standard deviations increases the probability of official distress from 6.6% to 9.4%, which is economically significant.
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Monetary Policy in a World Where Money (Also) Matters
Makram El-Shagi, Sebastian Giesen
IWH Discussion Papers,
No. 6,
2012
Abstract
While the long-run relation between money and inflation as predicted by the quantity theory is well established, empirical studies of the short-run adjustment process have been inconclusive at best. The literature regarding the validity of the quantity theory within a given economy is mixed. Previous research has found support for quantity theory within a given economy by combining the P-Star, the structural VAR and the monetary aggregation literature. However, these models lack precise modelling of the short-run dynamics by ignoring interest rates as the main policy instrument. Contrarily, most New Keynesian approaches, while excellently modeling the short-run dynamics transmitted through interest rates, ignore the role of money and thus the potential mid-and long-run effects of monetary policy. We propose a parsimonious and fairly unrestrictive econometric model that allows a detailed look into the dynamics of a monetary policy shock by accounting for changes in economic equilibria, such as potential output and money demand, in a framework that allows for both monetarist and New Keynesian transmission mechanisms, while also considering the Barnett critique. While we confirm most New Keynesian findings concerning the short-run dynamics, we also find strong evidence for a substantial role of the quantity of money for price movements.
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