Papers by Kyle Fitzgerald
In Deutschland ist eine intensive Debatte uber eine Kurskorrektur in der Klimapolitik und die Mog... more In Deutschland ist eine intensive Debatte uber eine Kurskorrektur in der Klimapolitik und die Moglichkeiten und Grenzen entsprechender Reformoptionen entbrannt. Ausgelost wurde diese Debatte nicht zuletzt von mittlerweile in vielen Landern vorgebrachten Protesten von Teilen der Bevolkerung uber unzureichende Fortschritte beim Klimaschutz. Sie wird zudem von der zunehmenden Einsicht getragen, dass es hierzulande sehr schwer wird, die aufgrund internationaler Vereinbarungen verbindlichen europaischen Zielvorgaben zur Reduktion von Treibhausgasemissionen zu erreichen. Gleichzeitig kam es in Frankreich zu Protesten unter anderem gegen die Erhohung von Umweltsteuern. Vor diesem Hintergrund hat die Bundesregierung den Sachverstandigenrat gebeten, in einem Sondergutachten Reformoptionen in der Klimapolitik zu diskutieren...
The euro area continues to suffer from critical weaknesses that are the result of a poorly design... more The euro area continues to suffer from critical weaknesses that are the result of a poorly designed fiscal and financial architecture, but its members are divided on how to address the problems. This paper proposes six reforms which, if delivered as a package, would improve the euro area?s financial stability, political cohesion, and potential for delivering prosperity to its citizens, all while addressing the priorities and concerns of participating countries.
1. Gemas § 6 Absatz 1 des Gesetzes uber die Bildung eines Sachverstandigenrates zur Begutachtung ... more 1. Gemas § 6 Absatz 1 des Gesetzes uber die Bildung eines Sachverstandigenrates zur Begutachtung der gesamtwirtschaftlichen Entwicklung legt der Sachverstandigenrat sein 54. Jahresgutachten vor. Das Jahresgutachten 2017/18 tragt den Titel: Fur eine zukunftsorientierte Wirtschaftspolitik. 2. Die derzeit sehr gute konjunkturelle Lage bietet beste Bedingungen fur eine Neujustierung der Wirtschaftspolitik. Gerade jetzt sollte die Zukunftsorientierung im Mittelpunkt stehen und nicht, wie in den vergangenen Jahren, der Verteilungsdiskurs. Protektionistische Bestrebungen, die fortschreitende Digitalisierung und Globalisierung der Wirtschaft sowie die Weiterentwicklung des Euro-Raums und der Europaischen Union sind grose Herausforderungen unserer Zeit. Im vorliegenden Jahresgutachten zeigt der Sachverstandigenrat Moglichkeiten auf, wie die neue Bundesregierung diesen begegnen kann. [...]
Economics Letters, 2018
We propose a new identification strategy to assess the efficacy of macroprudential measures. We p... more We propose a new identification strategy to assess the efficacy of macroprudential measures. We propose a novel instrumental variable that is based on the idea that a politically sensitive macroprudential measure is more likely to be implemented if a politically independent institution, such as a central bank, is in charge. Our results show that borrower-based macroprudential measures have had a strong and statistically significant dampening effect on credit growth in the European Union.
SSRN Electronic Journal, 2013
Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch ge... more Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in EconStor may be saved and copied for your personal and scholarly purposes. You are not to copy documents for public or commercial purposes, to exhibit the documents publicly, to make them publicly available on the internet, or to distribute or otherwise use the documents in public. If the documents have been made available under an Open Content Licence (especially Creative Commons Licences), you may exercise further usage rights as specified in the indicated licence.
SSRN Electronic Journal, 2015
If the documents have been made available under an Open Content Licence (especially Creative Comm... more If the documents have been made available under an Open Content Licence (especially Creative Commons Licences), you may exercise further usage rights as specified in the indicated licence.
In diesem Aufsatz gehen wir der Frage nach, welche Rolle regionale Banken in einer globalisierten... more In diesem Aufsatz gehen wir der Frage nach, welche Rolle regionale Banken in einer globalisierten Welt spielen konnen. Wir argumentieren, dass regionale Banken aufgrund einer starkeren Kundenbindung und flacher Hierarchien Wettbewerbsvorteile realisieren konnen. Kostennachteile aufgrund der geringen Grose lassen sich moglicherweise durch das Outsourcing von Aktivitaten, z. B. innerhalb eines Bankenverbunds, ausgleichen. Am Beispiel Deutschlands wird gezeigt, dass Regionalbanken auch in Zeiten globalen Wettbewerbs profitabel sein konnen. Eine Verdrangung regionaler Banken ist daher nicht zu erwarten.
SSRN Electronic Journal, 2003
In the 1960s, substantial reforms took place in the German educational system. The reforms aimed ... more In the 1960s, substantial reforms took place in the German educational system. The reforms aimed at equalizing the educational opportunities across social classes and gender. Important reforms were the abolition of tuition fees in schools and universities, the introduction of a means-tested income support (BAFöG), the building of new secondary schools and colleges. These measures reduced the individual costs of higher education considerably and led to an increase in educational participation during the 1970s and 1980s. The rise in the educational participation of women was particularly strong. However, the relative participation of children from poorer social backgrounds in higher education remained low, since the participation of the middle class also expanded. Thus, the link between family background and participation in higher education is still close. This raises the question as to how family background determines wages and returns to education in Germany. We try to answer this question by examining the impact of family background on wages and on returns to education. In estimating the earnings function, we (i) introduce family background variables as control variables, (ii) allow for heterogeneous returns to education, and (iii) construct a siblings sample from the German SocioEconomic Panel (GSOEP). Our approach allows to control for unobserved family-specific heterogeneity and to eliminate the bias due to family effects. We use a fixed-effects estimator and, as an alternative, a correlated random-effects estimator. Our main result is that family background still matters despite the attempts-or political claims-to equalize educational opportunities. Family characteristics constitute an important part of the variation in wages and in marginal returns to education, which confirms the important role of family background. Persons with well-educated parents tend to have lower returns to education and earn higher wages than persons with less-educated parents. Based on our theoretical model, we argue that this must be due to lower marginal costs of education in well-educated families. In addition, we find that gender matters for returns to education. While women, on average, earn lower wages than men, they have higher marginal returns to education. This may be explained by a self-selection of the more productive women into paid work-as opposed to household production. As a by-product of our analysis, the same interplay of wage levels and marginal returns was found for the effect of cohort membership on wages and marginal returns. The reduction in private marginal costs of education in the 1970s and 1980s has increased participation in schooling and thereby has reduced private returns. At the same time, macroeconomic growth has lead to an increase in the wage level of younger cohorts. The reforms of the education system benefited above all the middle class. If public policy intends to increase the participation of children from poorer families, it will be necessary to lower their private marginal costs. Financial grants or loans may be one way to achieve that goal. The trend of restricting financial assistance to students is counterproductive as it leads to increased social selection and to an under-utilization of human resources.
Journal of the European Economic Association, 2004
The financial crisis that swept across northern Europe in 1763 bears a strong resemblance to more... more The financial crisis that swept across northern Europe in 1763 bears a strong resemblance to more recent episodes of financial distress. The combination of the specific contractual arrangements at the time, interlocking credit relationships, and the high leverage of market participants triggered distress sales of assets, leading to a severe liquidity crisis. Hence, the crisis is an early instance of contagion on the asset side of the balance sheet. We highlight the salient features of the 1763 crisis and propose a stylized model of the events. While the financial institutions have changed fundamentally in the intervening 200 or so years, the underlying problems appear to be universal.
Journal of Money, Credit and Banking, 2014
This paper shows that bonus contracts may arise endogenously as a response to agency problems wit... more This paper shows that bonus contracts may arise endogenously as a response to agency problems within banks, and analyzes how compensation schemes change in reaction to anticipated bail-outs. If there is a risk-shifting problem, bail-out expectations lead to steeper bonus schemes and even more risk-taking. If there is an effort problem, the compensation scheme becomes flatter and effort decreases. If both types of agency problems are present, a sufficiently large increase in bailout perceptions makes it optimal for a welfare-maximizing regulator to impose caps on bank bonuses. In contrast, raising managers' liability can be counterproductive.
Journal of Institutional and Theoretical Economics, 2010
This paper yields a rationale for why subsidized public banks may increase regional welfare in a ... more This paper yields a rationale for why subsidized public banks may increase regional welfare in a financially integrated economy. We present a model with credit rationing and heterogeneous regions in which public banks prevent a capital drain from poorer to richer regions by subsidizing local depositors, for example, through public guarantees. Under some conditions, cooperative banks can perform the same function without any subsidies; however, they may be crowded out by public banks. We also discuss the influence of the political structure on the emergence of public banks in simple political-economy settings and the role of interregional mobility.
Journal of Financial Stability, 2010
The explicit or implicit protection of banks through government bail-out policies is a universal ... more The explicit or implicit protection of banks through government bail-out policies is a universal phenomenon. We analyze the competitive effects of such policies in two models with different degrees of transparency in the banking sector. Our main result is that the bail-out policy unambiguously leads to higher risk-taking at those banks that do not enjoy a bail-out guarantee. The reason is that the prospect of a bail-out induces the protected bank to expand, thereby intensifying competition in the deposit market and depressing other banks' margins. In contrast, the effects on the protected bank's risk taking and on welfare depend on the transparency of the banking sector.
Journal of Banking & Finance, 2011
Wirtschaftsdienst, 2015
Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch ge... more Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in EconStor may be saved and copied for your personal and scholarly purposes. You are not to copy documents for public or commercial purposes, to exhibit the documents publicly, to make them publicly available on the internet, or to distribute or otherwise use the documents in public. If the documents have been made available under an Open Content Licence (especially Creative Commons Licences), you may exercise further usage rights as specified in the indicated licence. www.econstor.eu ZBW-Leibniz-Informationszentrum Wirtschaft 583 Zeitgespräch Europäische Union-Vertiefung möglich und nötig? Mitten in der Griechenland-Krise haben die Präsidenten der fünf wichtigsten europäischen Institutionen Vorschläge für eine weitere Integration der Europäischen Währungsunion unterbreitet. Sie beziehen sich dabei auf die Wirtschafts-, Finanzmarkt-und Bankenunion und gehen sogar so weit, eine Fiskalunion zu skizzieren. Die Autoren diskutieren das "Juncker-Papier" vor dem Hintergrund der Gefahren einer stärkeren Zentralisierung, der Aufgabe nationaler Souveränität, der demokratischen Legitimation und natürlich der schwierigen Durchsetzbarkeit.
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Papers by Kyle Fitzgerald