The 7th Bundesbank-IAW Lecture on European Economic Integration was held on 11 July 2022 by Professor Thierry Mayer from the Institut d'études politiques de Paris (SciencesPo). Under the heading "The United States of Europe", Professor Mayer asked to what extent the EU is already a space without borders. In fact, the analysis based on so-called gravity models shows that trade barriers within the EU hardly exist any more. Whether a supplier is based in Lorraine, Luxembourg or Rhineland-Palatinate, for example, is no longer relevant. At the same time, integration has increased considerably in the last 15 years. However, the welfare gains from domestic trade are unevenly distributed. Above all, the Central and Eastern European countries have gained. For example, consumer welfare in Hungary is 15% higher every year than it would be without the EU.
March 31, 2022: 23rd Göttingen Workshop "International Economic Relations" at the University of Göttingen
Quantitative Trade, Heterogenous Firms and Welfare.
Dr. Oliver Krebs [ETH Zurich/IAW]
German Firms in International Trade: Evidence from Recent Transaction-level Data.
Matthias Fauth [IAW]
September 26-29, 2021: „Climate Economics“ Annual Conference of the Verein für Socialpolitik, University of Regensburg - online
The Economic Consequences of the US Tariff War: A Quantitative Perspective
Matthias Fauth [IAW], Benjamin Jung [University of Hohenheim] and Oliver Krebs [University of Tübingen]
The Minimum Wage: An Effective Means to Regain the Electorate’s Confidence?
Dr. Natalie Laub [IAW]
Improving Methods for Policy Analysis of Foreign Trade and Investment
It is of crucial importance that economic policies related to trade and investment are based on a solid understanding of the mechanisms through which enhanced internationalization of German firms affect the domestic economy.
Against this backdrop, this projectpursues four goals. First, it aims at taking stock of the relevant micro-data that are provided and maintained by the statistical offices on both the federal and the state level (DESTATIS) and by the central bank (Deutsche Bundesbank) and examining whether these data may – after suitable adjustment (merging, linking) – be used for model-based quantitative policy analysis in the areas of trade and foreign investment. Secondly, taking the new quantitative trade theory as a point of departure, it aims at developing and empirically implementing simulation models for trade and investment that allow for firm heterogeneity and dynamic adjustment. Thirdly, such models will be used to address, by means of numerical simulations, various policy scenarios regarding international trade and investment. These simulations will focus on heterogeneous effects among German firms. And finally, the project involves econometric estimation, using novel micro-panel-data, aimed at shedding light on topical issues related to trade and investment.
IAW is particularly concerned with the first and second project objectives.
Fauth, M., B. Jung and W. Kohler, German Firms in International Trade: Evidence from Recent Transaction-level Data, accepted for presentation at the European Trade Study Group (ETSG) 2021 Ghent.
September 9-11, 2021: 22nd Annual Conference of the European Trade Study Group (ETSG), Ghent
German Firms in International Trade: Evidence from Recent Transaction-level Data
Matthias Fauth [IAW], Prof. Dr. Benjamin Jung [Universität Hohenheim], Prof. Dr. Wilhelm Kohler [IAW]