Monetary Policy and Private Sector Development. The Case of South Africa
Tobias Knedlik
African Development Perspectives Yearbook, No. 9,
No. 9,
2004
Abstract
Read article
The Contestable Markets Theory - Efficient Advice for Economic Policy
Christian Growitsch, Thomas Wein
Externe Publikationen,
2004
Abstract
During the nineties of the last century several formerly monopolistic markets (telecommunication, electricity, gas, and railway) have been deregulated in Germany based on European directives and theoretically inspired by the theory of contestable markets. The original contestable market theory implied three assumptions necessary to be satisfied to establish potential competition: Free market entry, market exit possible without any costs, and the price adjustment lag exceeding the entry lag. Our analysis shows that if the incumbent reduces its prices slowly (high adjustment lag) and the market entry can be performed quickly (low entry lag), a new competitor will be able to earn back sunk costs. Therefore it is not necessary that all three conditions be complied with for potential competition to exist. Applying this „revised“ contestable market theory to the deregulated sectors in Germany, natural monopolies can be identified in telecommunication sections local loops and local/regional connection networks, in the national electricity grid and the regional/local electricity distribution networks, in the national and regional/local gas transmission/distribution sections, and in the railroad network. These sections are not contestable due to sunk costs, expected high entry lags and a probably short price adjustment lag. They are identified as bottlenecks, which should be regulated. The function of system operators in energy and railroad are closely related to the non-contestable monopolistic networks.
Read article
The influence of Vertical Integration and Property Rights on Network Access Charges in the German Electricity Markets
Christian Growitsch, Thomas Wein
Externe Publikationen,
No. 6,
2004
Abstract
German Electricity markets were deregulated in the late nineties of the last century. In contrast to other European countries, the German government enacted negotiated third party access instead of installing a regulation authority. Network access charges for new competitors are based on contractual arrangements between energy producers and industrial consumers, which specify the calculation schemes for access charges. Local and regional suppliers are nevertheless able to set (monopolistic) charges at their own discretion, restricted only by the possibility of interference competition authorities. While some of those suppliers have been acquired by one of the four Transmission System Operators and become vertically integrated, the majority is still independent public utility companies. In this paper we analyse if there is evidence for different charging behaviour depending on the supplier’s economic independence or its level of vertical integration. Controlling for other coefficients as the so called structural features and related cost differences as well as the influence of competition law suits, multivariate estimations show significantly lower access charges than vertically separated suppliers, whereas incorporated network operators charge significantly higher charges compared to independent suppliers for at least one typical case.
Read article
The economic situation and development in the German regions along the border with Poland
Gerhard Heimpold
Jahrbuch für Regionalwissenschaft,
No. 1,
2004
Abstract
Read article
Employment effects of development of renewable energies
Steffen Hentrich, Jürgen Wiemers, Joachim Ragnitz
IWH-Sonderhefte,
No. 1,
2004
Abstract
Die Bundesregierung strebt bis zum Jahr 2010 eine Verdopplung des Anteils erneuerbarer Energien am Primärenergie- sowie am Bruttostromverbrauch an. Das vorrangige Ziel der damit verbundenen Umstrukturierung des Energiesektors ist die Verbesserung der Umweltqualität. Es darf jedoch nicht außer Acht gelassen werden, dass die Förderung erneuerbarer Energien zwangsläufig auch gesamtwirtschaftliche Auswirkungen hat. Angesichts der anhaltend angespannten Lage am Arbeitsmarkt stehen dabei insbesondere die Beschäftigungseffekte der Förderung erneuerbarer Energien im Mittelpunkt des öffentlichen und wirtschaftspolitischen Interesses.
Read article
The Reform of Local Public Services of General Interest in Europe
Peter Haug, Martin T. W. Rosenfeld
Applied Economics Quarterly (Supplement),
2004
Abstract
The benefits of a reduced supply of local public services may more than outweigh the supposed welfare losses. This was suggested by various theoretical and empirical investigations in many fields of economics during the last decades. Nevertheless, local and national politicians, trade unionists, charities, and other lobbyists have succeeded in preventing further liberalisation of “services of general interest” in Europe. This article examines why these preserve agents have been and are still successful. The analysis is based on an institutional economic approach. Several policy measures and institutional changes are suggested to either reduce influence of preserve agents or to compensate them for their losses.
Read article
Evolving Structural Patterns in the Enlarging European Division of Labour: Sectoral and Branch Specialisation and the Potentials for Closing the Productivity Gap
Johannes Stephan
IWH-Sonderhefte,
No. 5,
2003
Abstract
This report summarises the results generated in empirical analysis within a larger EU 5th FP RTD-project on the determinants of productivity gaps between the current EU-15 and accession states in Central East Europe. The focus of research in this part of the project is on sectoral specialisation patterns emerging as a result of intensifying integration between the current EU and a selection of six newly acceding economies, namely Estonia, Poland, the Czech and Slovak Republics, Hungary and Slovenia. The research-leading question is concerned with the role played by the respective specialisation patterns for (i) the explanation of observed productivity gaps and for (ii) the projection of future potentials of productivity growth in Central East Europe.
For the aggregated level, analysis determines the share of national productivity gaps accountable to acceding countries’ particular sectoral patterns, and their role for aggregate productivity growth: in Poland, the Slovak Republic and Hungary, sectoral shares of national productivity gaps are considerable and might evolve into a ‘barrier’ to productivity catch-up.Moreover, past productivity growth was dominated by a downward adjustment in employment rather than structural change. With the industrial sector of manufacturing having been identified as the main source of national productivity gaps and growth, the subsequent analysis focuses on the role of industrial specialisation patterns and develops an empirical model to project future productivity growth potentials. Each chapter closes with some policy conclusions.
Read article
Why do we have an interbank money market?
Jürgen Wiemers, Ulrike Neyer
IWH Discussion Papers,
No. 182,
2003
Abstract
The interbank money market plays a key role in the execution of monetary policy. Hence, it is important to know the functioning of this market and the determinants of the interbank money market rate. In this paper, we develop an interbank money market model with a heterogeneous banking sector. We show that besides for balancing daily liquidity fluctuations banks participate in the interbank market because they have different marginal costs of obtaining funds from the central bank. In the euro area, which we refer to, these cost differences occur because banks have different marginal cost of collateral which they need to hold to obtain funds from the central bank. Banks with relatively low marginal costs act as intermediaries between the central bank and banks with relatively high marginal costs. The necessary positive spread between the interbank market rate and the central bank rate is determined by transaction costs and credit risk in the interbank market, total liquidity needs of the banking sector, costs of obtaining funds from the central bank, and the distribution of the latter across banks.
Read article
Opportunities and Risks for Regional Development in Former East German Brown Coal Mining Areas: The Case of the “Geiseltal” Mining Area in Saxony-Anhalt
Peter Franz
Wirtschaft im Wandel,
No. 11,
2003
Abstract
Die Sanierung ehemaliger Braunkohletagebaustandorte stellt ein wichtiges Teilstück des seit 1990 stattfindenden ökonomischen und ökologischen Umstrukturierungsprozesses in Ostdeutschland dar. Durch den Sanierungsfortschritt werden in jüngerer Zeit vermehrt rekultivierte Flächen für neue Nutzungen wieder verfügbar und bereichern das Entwicklungspotenzial der betreffenden Regionen. Diese neu entstehenden Potenziale werden jedoch nicht automatisch für die Wirtschaftsentwicklung der betreffenden Region wirksam, sondern werden in ihrer Wirkung durch verschiedene Hemmnisse und Risiken gebremst. Im Fall des ehemaligen Tagebaustandorts des Geiseltals im Süden Sachsen-Anhalts zeigen sich solche Hemmnisse in Form einer starken Gebundenheit an die Bergbau- und Industrietradition, in den expandierenden Flächenschutzinteressen von Naturschutzorganisationen und in den nicht anforderungsgerechten Organisationsformen der regionalen politischen Kräfte. Bei Festlegung auf eine tourismusbezogene Entwicklungsstrategie ergeben sich Risiken bezüglich der tatsächlichen Dauer des restlichen Rekultivierungsprozesses und durch konkurrierende Standorte mit ähnlichen Entwicklungszielen.
Read article
Local conditions for the New Economy in structurally weak areas: The Example of Saxony-Anhalt
Walter Komar
Wirtschaft im Wandel,
No. 9,
2003
Abstract
Der Artikel präsentiert Befunde einer Analyse der Standortbedingungen für die New Economy in Sachsen-Anhalt, d. h. für die Sektoren der modernen Biotechnologie und der modernen Informationstechnologie. Hierfür wurden die Standortbedingungen zwischen Sachsen-Anhalt und der Raumordungsregion (ROR) München verglichen, die zu den fortgeschrittenen Regionen in diesen Branchen in Deutschland zählt. Erwartungsgemäß schneidet die ROR München bei den meisten Feldern besser ab. Die Analyse zeigt aber auch, dass noch nicht so fortgeschrittene Regionen auch Entwicklungschancen in neuen Branchen haben. Dazu müssen diese Regionen ihre Potentiale und Standortvorteile noch besser nutzen sowie noch vorhandene Standortdefizite abbauen.
Read article
