Editorial: RWI Has a New Look Privatization Of

News

Editorial: RWI has a New Look Privatization of Hospitals has Many Positive Aspects The Burden of Nonsmokers Is Neoliberalism Finished?

No. 1 /2009 Editorial

RWI has a New Look

But that‘s not all, by any means. Blue and gray, the colors of the logo, are part of the fundamental design and will appear again and again in RWI Essen‘s new look. The colors are embedded in a harmoniously coordinated world of colors that will also be expressed in the various publications. We have also made a slight change to our abbreviation: Instead of calling ourselves „RWI Essen,“ we will be „RWI,“ returning to our former name, which, is more appropriate now that we have a branch in Berlin.

RWI has steadily evolved over the years: The depart- RWI is introducing its new look just in time for mental structures have become more fl exible, areas of spring. The new logo, which will be a strong factor research have been added, and, with the Ruhr Gradu- in the design of publications, is the heart of the new ate School in Economics (RGS Econ) we have taken an look. This issue of „RWI News,“ the fi rst with the new active role in promoting young researchers. The goal style, is a good example. And the new homepage will of our new appearance is to convey this inner vitality follow soon. to the rest of the world. We hope you enjoy meander- ing through this newly designed publication. These innovations are the result of much thought and eff ort. We started with the question: What does RWI stand for, and what does it want to convey with its corporate design? Dynamic, fl exible, decisive, fresh and serious were the attributes revealed by an inhouse survey. The new logo is intended to express these properties and illustrate the communication goals of RWI. Our communication designer Daniela Schwindt presented the best proposal, a logo that familiar ele- ments with new ones: The blue color and cubic as- Old RWI logo pects of the old design are now presented in a more contemporary light. The rigid frame of the previous logo has been broken up and replaced with a more dynamic shape. Lateral thinking, thinking out of the box, searching for a diff erent point of view – these New RWI logo are the associations that the new logo is intended to trigger in the beholder. Ch.M.Schmidt

2 RWI News 1/2009 Research news

all of the places where there are hospitals, the private Hospital Privatization clinics are more economical, because their cost of ma- terialsand personnel make up a signifi cantly smaller Off ers Many Benefi ts percentage of their total revenue. This is not detrimen- tal to patient care – quite the opposite: In privately- While the total number of hospitals in Germany is owned hospitals, more physicians and nursing staff steadily decreasing, the number of privately-owned are available to take care of the individual patients facilities is on the rise. Private hospitals tend to work than in public or non-profi t facilities. The expenses more economically than the others — even though they incurred for medical supplies are also higher. There receive less government funding and pay higher taxes. are no discernable diff erences in the quality of care. In The density of supply and the quality of the medical care fact, on average, the patients in private hospitals are provided have remained at least at the same level and, even older and have more serious illnesses. In terms in some aspects, have noticeably improved. of the number of beds available in the intensive care wards, the quantity of large medical devices and the The number of privately-run hospitals in Germany expenditures for medical supplies, the private facili- increased 41.6% from 1996 to 2007, with a market share ties are just as good. today of 28%. During the same period, the number of public hospitals fell by 31% and the number of non- profi ts by nearly 19%. A signifi cant factor could be that private facilities work more effi ciently on average, while off ering at least the same quality. These are the fi ndings of a study commissioned by the Bundesverband Deutscher Privatklinik- en e.V. (BDPK, federal association of private German clinics) in Berlin and conducted by RWI and the Institut für Gesundheitsökonomik (IfG, Institute Private institutions can obtain funding more easily for Health Economics) in Munich. The study is based and they invest more on fi gures from the Federal German Statistical Offi ce from 1996 to 2006 and on the annual reports of 701 Also, privately-owned hospitals have greater free- hospitals from 2005 and 2006. dom in making investment decisions. Because they have better access to capital markets, these facilities This study indicates that privatizing hospitals en- can obtain fi nancing more easily for investments that sures that patients receive adequate care, particularly would not be possible with only government subsi- in rural areas. The proportion of rural medical centers dies. Higher profi tability also strengthens cash fl ow. is greater among st the private institutions than the The study reveals that privately-owned hospitals not non-profi ts; it continued to rise from 1996 to 2006. In only receive less governmental assistance, they also

RWI News 1/2009 3 Research news pay taxes on earnings; for example, 150 million EUR in nonsmokers a weaker bargaining position than smok- 2006. Non-profi t and public medical centers generally ers. If smoking is socially acceptable, the nonsmokers do not have to pay taxes. usually have to ask the smokers to refrain from smoking. However, to avoid confl ict, some people hesitate The two institutes that conducted the study anticipate to complain. This gives smokers an unfair advantage in higher cost and competitive pressure on medical care bargaining power, so that it may be advisable to ban providers over the next few years, which will reinforce smoking. This is the conclusion reached by a study con- the trend towards privatization. Greater competition ducted by RWI and the University of Helsinki, Finland, promotes more effi cient patient care. A decreasing which reconstructed the social interaction between a number of hospitals and beds will presumably be ac- smoker and a nonsmoker in a so-called „sequential companied by greater demand for hospital services. game“ in which the two parties made their “moves” To increase competition, it could be made easier for one aft er the other. The article appeared in the re- new suppliers to enter the market. Also, hospitals nowned „Journal of Health Economics.“ could make available to the public comprehensive information on the results of their treatment, so the Ban on smoking helps counteract the market’s failure patient would be in a better position to fi nd the most to take action suitable hospital. Based on these fi ndings, laws prohibiting smoking in Issue 52 of the RWI Materialien („Bedeutung der closed spaces are benefi cial particularly in countries in Krankenhäuser in privater Trägerschaft “ (Signifi cance which smoking is a socially accepted norm. For smok- of privately-owned hospitals) can be downloaded as a ers, the ban just means that they have to take a break .pdf fi le under www.rwi-essen.de/mat. and go outside to smoke. But it aff ords nonsmokers protection from the health risks of second-hand smoke For more information: [email protected], caused by the market’s failure to take action. Thus a [email protected] ban on smoking creates a situation that is not always ideal but is defi nitely desirable to society in general. Studies have shown that many smokers are in favor of smoking bans, because they help them to keep their Nonsmokers Oft en Accept cigarette consumption under control. Smoke to Keep the Peace Providing smoking and nonsmoking areas is not very eff ective. As long as smoking is socially acceptable, nonsmokers will most likely follow the smokers Social norms and learned behavior patterns oft en into the smoking area to keep the peace. determine how people treat one another. If society The article „Smoking and Social Interaction,“ by P. tolerates smoking, nonsmokers are generally all too Poutvaara and L. Siemers, was published in the „Jour- willing to accept inhalation of second-hand smoke. In nal of Health Economics“ 27 (6): 1503–1515. such situations, laws prohibiting smoking are a way to protect nonsmokers from the health hazards associated For more information: [email protected], with smoke. [email protected]

If smoking is socially acceptable within a society, nonsmokers tend to put up with second-hand smoke, xxxxxxxxxxxxxxxxxxxxxxxxxxx even if they are bothered by the smoke. This can be attributed primarily to the fact that social norms grant

4 RWI News 1/2009 Research news

Procurement of Research Contracts

The Implications of Federal Child Beneﬁ ts and Parental Evaluation of the Payments to Promote Employment Leave. Project for the Federal Ministry for Family, Senior pursuant to § 16a para. 10 SGB II. Project for the Federal Citizens, Women and Juveniles. Contact person: Dr. Jochen Ministry of Labor and Social Aﬀ airs. Contact: Dr. Michael Kluve, Dr. Marcus Tamm. Duration: 6 months Fertig. Duration: 3 years

Investments in Transportation Systems. Project for Study on Various Aspects of Labor Market Performance. the Federal Ministry of Finance. Contact person: Dr. Lars Project for the EU Commission (Employment, Social aﬀ airs Siemers. Duration: 18 months and Equal Opportunities DG). Contact: Dr. Jochen Kluve, Dr. Ronald Bachmann. Duration: 10 months

Dates

Hot Topic: The two scientists had a lively, controversial discussion on the causes and eff ects of the fi nancial crisis. Is Neoliberalism Finished? Leggewie expressed the opinion that the current situation is comparable to the global economic crisis of the System crisis or just a temporary low point – The KWI 1920‘s and is a crisis of capitalism itself. The economic Director Claus Leggewie and RWI President Christoph sciences failed to identify the potential for crisis suffi - M. Schmidt volleyed opposing opinions at the debate ciently in advance. He stated that they should concen- organized by the WAZ newspaper. Despite the many trate more on economic history, sociology and ethics. points of disagreement, the two scientists agreed on Also, he fi nds that economists tend to act arrogantly some issues, such as the car-scrap bonus. towards anyone who is not an economist.

„Is Neoliberalism Finished? The Crisis and the Con- Schmidt disagreed with many of Leggewie‘s statements. sequences for Intellect and Economy“ – This was the „There is no indication whatsoever of a breakdown of topic of the debate between Claus Leggewie, Director the system. If the economic performance falls by two of the Kulturwissenschaft liches Institut Essen (institute percent, we will return to the level of prosperity that for cultural studies) and RWI President Christoph M. we had a short time ago,“ asserted Schmidt. The time Schmidt on January 12, 2009 at the Central Library in and extent of the economic crisis could not have been Essen. The event was part of a series called „Reitz- predicted more precisely. Predictions would continue Thema“ (a play on words, meaning controversial topic) to help to make the future more controllable. Schmidt moderated by WAZ editor-in-chief Ulrich Reitz. also emphasized the breadth of economics research.

RWI News 1/2009 5 Dates

The econometric models are no longer based solely Leggewie and Schmidt criticize the car-scrap bonus on mathematics, and econometrics now examines human behavior. He declared that economic history and The two debaters agreed on other points. For exam- ethics did not receive adequate attention. ple, they both oppose the car-scrap bonus. As Schmidt sees it, „There is no justifi cation for favoring the automobile industry in that way.“ Leggewie also expressed Ruhr Economic Papers can be downloaded at skepticism. The employees are the ones who suff ered the consequences of poor management in the automobile industry. Only these employees can justify government intervention. Despite their diff erent perspectives on the causes and eff ects of the economic crisis, the two speakers agreed on the source of the crisis in the automobile industry: It is not a result of the fi nancial crisis but was merely exacerbated by it.

Claus Leggewie (left ) and Christoph M. Schmidt have a lively discussion on the ﬁ nancial crisis, moderated by Ulrich Reitz

Publications

Ruhr Economic Papers gas prices to rise. Combined with the intent to aban- don nuclear energy in Germany, this could have grave consequences for the security of energy supplies and www.rwi-essen.de/rep the cost eff ectiveness of power supplies, which would have a negative impact on the ability of the domestic (81) Manuel Frondel, Christoph M. Schmidt and Colin market to compete. Vance, Emissions Trading: Impact on Electricity Prices and Energy-Intensive Industries (82) Christian Schwarz and Uwe Stroinski, Is there a Walrasian Equilibrium in Exchange Markets with The EU-wide Emission Trading Scheme (ETS) for Endowment Eff ect? carbon dioxide (CO2), established in 2005, is a key pillar of Europe‘s strategy to attain compliance with This paper introduces an axiomatic framework for ex- the Kyoto Protocol. This paper discusses the eff ects of change markets with an endowment eff ect. The market auctioning CO2 allowances on electricity prices and indicates a representation with two real parameters, on the ability of the European industry to compete in- identifi ed as endowment and WTA-WTP (willingness- ternationally. Substantial changes in electricity prices to-accept and willingness-to-pay) discrepancy. If the are not anticipated in the short term, but long-term WTA-WTP discrepancy is not zero, price and demand eff ects should be expected because stronger incentives are not simultaneously sharply measurable. In this to change to carbon and thus low-emission power case, a Walrasian equilibrium does not exist. generation technologies will result. This will most likely lead to a higher demand for natural gas, causing

6 RWI News 1/2009 Publications

(83) Timo Mitze, Endogeneity in Panel Data Models an interdependence between the ECB and the Fed, but with Time-Varying and Time-Fixed Regressors: To IV only the general VECM testifi es to a leader-follower or not IV? pattern between the two central banks. According to this pattern, the ECB does not follow the Fed in de- Using Monte Carlo simulations, the problem of pa- termining its monetary policies. rameter inconsistency in regression models for panel data is analyzed. The inconsistency is caused by a (86) David Card, Jochen Kluve, and Andrea Weber, Active correlation of descriptive regressors to the combined Labor Market Policy Evaluations — A Meta-analysis error term of the model. A common solution is to apply an instrumental variable (IV) estimation. Potential In this meta-analysis of recent micro-econometric shortcomings of this approach have given rise to the evaluations of active labor market policies, 97 stud- development of alternative estimators. A comparison ies occurring between 1995 and 2007 are evaluated. shows that the non-IV approaches tend to be more Comparing program types, subsidized public sector robust and effi cient, even when the selection of the employment programs have the least impact. Job „right“ instruments in the case of the Hausmann-Taylor search assistance programs have relatively favorable model is implied. short-term impacts, whereas classroom and on-the- job training programs tend to show better outcomes (84) Timo Mitze, Björn Alecke, and Gerhard Untiedt, in the medium-run than the short-run. Controlling for Trade-FDI Linkages in a System of Gravity Equations the outcome measure and the type of program and for German Regional Data participants, we fi nd that experimental and non-experimental studies have similar fractions of signifi cant This paper analyzes the interaction between trade negative and signifi cant positive impact estimates. This fl ows and direct investment for German states in an suggests that the research designs used in recent non- empirical foreign trade model for the EU27. The grav- experimental evaluations are unbiased. ity setup serves as the theoretical framework for the specifi cation of alternative internationalization strat- (87) Katja Goerlitz, The Development of Employers‘ egies. The empirical results fundamentally confi rm Training Investments Over Time — A Decomposition the validity of the gravity setup with a special role for Analysis Using German Establishment Data transportation costs. A regional diff erentiation of the data base off ers information on the incongruency be- Using establishment data covering the time period tween trade and direct investments in West Germany 1997 to 2007, this paper investigates trends of employ- and East Germany. The results suggest that such analy- er-sponsored further training in Germany. There is a ses should always consider regional factors. positive trend in both East Germany and West Germany. Applying Oaxaca-Blinder decomposition techniques (85) Ansgar Belke and Yuhua Cui, US-Euro Area Monetary shows that this increase in unrelated to compositional Policy Interdependence — New Evidence from Taylor changes of average establishment characteristics. As Rule Based VECMs the characteristics considered represent the most com- monly used variables, this raises questions for future This paper deals with the oft en assumed but seldom research. econometrically examined interdependence between the monetary policies of the European Central Bank (ECB) and the American Federal Reserve (Fed) between 1999 and 2006. Two models are specifi ed: A general Vector Error Correction Model (VECM) and a partial VECM. The empirical results of both models indicate

RWI News 1/2009 7 Publications

(88) Ansgar Belke, Fiscal Stimulus Packages and Uncertainty in Times of Crisis — The Option of Waiting RWI Materialien Can Be Valuable, Though! Download under www.rwi-essen.de/mat

Policymakers in EU member states are currently shap- ing rescue packages to prevent the fi nancial crisis from (48) Michael Rothgang, Bernhard Lageman, Christoph hitting their economies with unmitigated force. Given M. Schmidt, Werner Friedrich, Jochen Dehio, Wolfgang the global nature of the crisis, would a coordinated Dürig, Verena Eckl, Markus Körbel, Matthias Peistrup and eff ort at the European level not be a better approach? Stefan Seidel, The Program to Promote Joint Industrial Was the German government – much criticized for Research – Interim Results of Performance Review its initial reluctance to adopt massive fi scal stimulus measures – right aft er all to wait and see in this time This paper details the interim state of the results of of high uncertainty? The answer to the second ques- the expanded performance review of the program to tion is a qualifi ed „Yes.“ However, the answer to the fi rst question is more complex and pivotally depends promote joint industrial research. This evaluation was on whether the impact of the economic crisis can be conducted by RWI and the Wirtschaft s- und Sozialfor- modeled as an exogenous demand shock. schung Kerpen (WSF, economic and social research facility Kerpen) on behalf of the Federal Ministry of Economics and Technology from June 2005 to July 2007. The report focuses on the central issue of con- veying results and points out approaches to improve the procedures and structures of the IGF. It also pro- vides an outlook of the work planned for 2008 and 2009, discusses ways to determine the eff ectiveness and economic effi ciency, and off ers suggestions for further developing the program.

8 RWI News 1/2009 Publications

(49) Boris Augurzky, Harald Tauchmann, Andreas gross domestic product in this state probably rose by Werblow and Stefan Felder, Effi ciency Reserves in the only 1.5% in 2008, compared to 2.6% in 2007, and Health Care Sector the growth in 2008 occurred only during the fi rst few months. We anticipate a sharp decline in the state‘s economic performance. The demand for consumer Compared to other countries, Germany has a high goods is a stabilizing factor, because real income will level of medical care. The goal of this study it to fi nd initially rise due to declining infl ation rates. But by the potential sources of savings in the health care system. second half of 2009, income will also fall as a result of The study does not compare Germany to other coun- the deteriorating labor market situation. The unem- ployment rate will most likely rise from 8.5% (2008) tries but instead examines the diff erences between the to 8.9% (2009), and the number of unemployed will health care systems of the various states. Data was taken probably increase to 140,000. from the county level. The health care expenses were corrected to compensate for the diff erent population (52) Boris Augurzky, Andreas Beivers, Günter Neubauer structures to be able to properly compare the states‘ and Christoph Schwierz, Significance of Privately- health care systems. This was then the foundation for owned Hospitals assessing the potential savings for in-patient and out- patient care as well as for pharmaceuticals. These three The new emphasis on economic aspects in the fi elds are the main areas in which compulsory health health care system and thus the hospital market has insurance companies can potentially save money. been apparent in the evolving ownership of hospitals since the early 1990‘s. The proportion of patients turn- (50) Boris Augurzky, Sebastian Krolop, Michaela Lemm, ing to private hospitals instead of public or non-profi t Hartmut Schmidt, Hendrik Schmitz and Christoph Schwierz, clinics is continuing to rise. The goal of this paper is Reha Rating Report 2009 — Deceptive Recovery? to provide a well-grounded evaluation of hospital privatization in the form of a fact book. It is intended to This second report for German rehab facilities is provide detailed indicators of the urgent care hospital intended to make more transparent the rehabilitation market – particularly diff erentiated by ownership – and and preventive medicine market by structurally prepar- to substantiate the debate on privatization (Refer to p. ing data and off ering analyses on essential issues. The 3ff .). fi ndings indicate that the state of German rehab clinics will temporarily improve in 2007 and 2008 due to higher utilization of capacity. However, higher-paying labor agreements will have an eff ect and, in conjunc- tion with the fi nancial crisis, will cause the situation to deteriorate by 2010. This will result in a multitude of clinic closings over the next ten years.

(51) Roland Döhrn, Tobias Kitlinski and Simeon Vosen, Recession Hits Nordrhein-Westfalen, too — Economic Report 2009 for Nordrhein-Westfalen

The international economic situation suﬀ ered un- expected and dramatic deterioration in the second half of 2008. Nordrhein-Westfallen‘s economy was not able to elude the damage. The average actual

RWI News 1/2009 9 In-house

Chancellor Angela Merkel was on hand for the event. RWI President Schmidt „It is a great honor and a tremendous challenge to be a member of this body,“ said Schmidt. His appoint- Newest Member of Expert ment was also praise for the work of RWI.

Advisory Board The advisory board‘s government commission is to compile and publish an annual assessment in mid November of every year and, when problematic situ- A great honor and a challenge: RWI President Prof. ations dictate or when ordered by the government, to Dr. Christoph M. Schmidt has been appointed to the produce special assessments. Besides Prof. Schmidt, Expert Advisory Board. He received his certiﬁ - the current members of the board are the cate of appointment on March 4 from Dr. economists Prof. Dr. Peter Boﬁ nger, Prof. Karl-Theodor Freiherr zu Guttenberg, Dr. Dr. h.c. mult. Wolfgang Franz, Prof. the Federal Minister of Economics. Wir sind Dr. Beatrice Weder di Mauro and Prof. Chancellor Angela Merkel was on Wirtschafts- Dr. Wolfgang Wiegard. hand for the event. RWI‘s employees weiser! their boss by wearing buttons that said The employees of RWI received „We are economic leaders!“ the newly appointed council member in style the next day. They did not have RWI President Prof. Dr. Christoph M. enough time to hang the banner („We‘re Schmidt has been appointed to the esteemed hoarse from cheering, our boss is an economic „Expert Advisory Board to Assess Overall Economic De- leader!“) on the outside of the building. But they all velopment“ by the Federal Germany President Horst welcomed their president with „We are economic lead- Köhler. Prof. Schmidt succeeds Prof. Dr. Bernd Rürup, ers!“ buttons. who resigned early on February 28, 2009. The federal For more information: [email protected]

Christoph M. Schmidt New Co-publisher of „GER“

RWI President Prof. Dr. Christoph M. Schmidt is the new co-publisher of the „German Economic Re- Prof. Dr. Christoph M. Schmidt receives his certifi cate of ap- view.“ He deals primarily with reports on the labor pointment from Karl-Theodor Freiherr zu Guttenberg, with market and on labor market policy. The magazine Chancellor Angela Merkel standing by (photo: BPA) is an English-language publication of the „Verein for Socialpolitik“ (association for social policy) and government submitted the nomination. The President appears four times per year. The journal is open to of RWI was handed his certifi cate of appointment on authors from the most varied economic fi elds, includ- March 4 by Dr. Karl-Theodor Freiherr zu Guttenberg, ing macroeconomics and microeconomics, fi nance the Federal Minister of Economics and Technology. and business. The chief publisher is Prof. Dr. Walter

10 RWI News 1/2009 In-house

Krämer (TU Dortmund). Other publishers are Prof. Dr. Helmuth Cremer (Toulouse School of Economics), Prof. Dr. Joseph F. Francois (Johannes Kepler Univer- sity Linz), Prof. Dr. Ben J. Heijdra (University Gronin- gen) and Prof. Dr. Wolfgang Leininger (TU Dortmund).

„Health“ is Now its Own Area of Competence

RWI not only has a new logo (see the editorial on page 2), it has also restructured two of its areas of competence. The departments „Labor Markets, Popu- lation and Health“ (headed by Dr. Boris Augurzky and Dr. Jochen Kluve) and „Migration, Integration and Edu- cation“ (headed by Dr. John P. Haisken-DeNew) have been replaced by the areas of competence „Health“ (headed by Dr. Boris Augurzky) and „Labor Markets, Education and Population“ (headed by Dr. Marcus He has been working for RWI since 2003. While at the Tamm). Dr. Jochen Kluve will now concentrate fully on university next door, he will continue his association running the oﬃ ce in Berlin. Board member Prof. Dr. with our institute as a cooperation partner. Thomas K. Bauer is the new head of the „Data“ area of competence. The former area of competence „Empiri- cal Industrial Organization“ (headed by Dr. Bernhard „Academic Writing“ Lageman) has been renamed „Enterprise and Innova- tion“ and will retain its leadership. Workshop for RGS For more information: [email protected] Scholarship Recipients

For scientists, the hardest part of their job is putting John Haisken-DeNew their own research fi ndings into writing. In late De- cember RGS Econ off ered its scholarship recipients Enticed by Position at an addition to their normal classes: the „Academic Writing“ workshop. Over the course of two days, the RUB participants covered the entire writing process, from choosing a topic to fi nal corrections to a paper. The Dr. John P. Haisken-DeNew, head of the areas of com- instructor, Dr. Vera Zegers-Leberecht (Golin Science petence „Migration, Integration and Education“ and Management, Hamburg), presented diff erent meth- „Data“ at RWI, left our institute to accept a new posi- ods to structure data and off ered suggestions on time tion on March 1, 2009 at the Ruhr University Bochum management for scientifi c work. The students also (RUB), where he will chair the department „Economic learned techniques that can be used daily to visualize Policy — Particularly Competition Theory and Policies.“ ideas and correlations, such as mind mapping or ex-

RWI News 1/2009 11 In-house ercises to counter writer‘s block. The young RGS Econ researchers practiced adapting texts and wording to various target audiences, for example to readers of a school newspaper. Since most scientiﬁ c papers are

Promoting team spirit: Hiking in the mountains with torches

childcare benefi ts might have on the participation of mothers and fathers in the labor market. In addition to bouncing around scientifi c ideas, the seminar also Learning early to put thoughts on paper in the scientifi c gave the participants the opportunity to get to know community one another better. A highlight of the event was a hike in the dark with torches through the snowy woods of written in English, the group also learned some of the the Odenthal. subtleties of the English language. The participants particularly relished the teamwork exercises and the lively discussions. BSG-RWI/RGS Econ Reaches RWI Cup 2008 Young RWI Employees Final Enjoy „Therapeutic Aft er its greatest success ever with its victory at the Seminar Hike“ „Come-Together-Cup Ruhr“ in August 2008, the RWI company soccer team struck again at the RWI Cup on Young RWI scientists got together January 12 and 13, November 2, 2008. RWI formed a team with last year‘s 2009 for the fourth semi-annual „Therapeutic Semi- champion RGS Econ – the RWI post graduate group. nar Hike,“ an addition to the in-house seminar series. Even though the team had to do without some of its The seclusion of the Haus Altenberg in the Odenthal regular players, it managed to remain undefeated region was ideal for the 21 postgraduates and post- all the way to the fi nal, where it ceded victory to the docs to present their latest research, to discuss it and GAGFAH Essen team. The two fi nalists had beaten WDR to „treat“ – or improve – it. The topics of the presen- Essen and Siemens Essen in the semifi nals. The teams tations ranged from the impact of corporate taxation from PKF Fasselt Duisburg, ETL Tax Consultants Essen, on wages to the evaluation of a program to provide the Wiso department of the University Essen and TFH electricity in Rwanda and the eff ects that government Bochum did not quite make it to the semifi nals.

12 RWI News 1/2009 In-house

The RWI/RGS team hopes to keep winning in 2009. The next opportunity will be the anniversary tourna- ment of BSG RWI this summer; the event will celebrate 30 years of the soccer division.

All the way to the ﬁ nal: The BSG-RWI/RGS Econ team

„What is the latest on ...“

Over the last few years, many young scientists have left ... Mathias Sinning RWI to pursue new challenges – at universities and research facilities or in the corporate world. We were 1.) What did your work at RWI Essen teach you that wondering what they are up to now and what they you can apply in your job now? remember about RWI. Almost everything. My work at the university is not much diﬀ erent from what I did at RWI Essen.

2.) What do you remember best about your time at RWI Essen? My co-workers‘ colorful T-shirts, my oﬃ ce and the painting in the big conference room.

3.) What is diﬀ erent now from your work at the institute? I sit in the sun more oft en and drink coﬀ ee now.

4.) In your opinion, what is the greatest challenge that German research facilities will be faced with in the future? The same one as before: To produce relevant research ﬁ ndings.

5.) Which question would you like to answer? An easy one. In October 2008 the ﬁ ft h class will begin their studies

RWI News 1/2009 13 News from RGS Econ at Ruhr Graduate School in Economics (RGS Econ). This did an internship at the KfW Entwicklungsbank (re- is a brief (alphabetical) introduction of the next four construction loan corporation) and at a medium-sized scholarship recipients; the fi rst four were introduced in supplier to the automotive industry. Aft er completing the RWI News 4/2008. his formal education, he worked for two years as a research analyst at the international consulting fi rm Klemens Keldenich McKinsey & Company. Majored in Economics Fields of interest: Income, with a concentration in Consumption and Savings Social Sciences at the Uni- in Private Households, So- versity of Cologne, spent a cial Policy, Applied Econo- semester at Indiana Uni- metrics versity in Bloomington (USA), where he took MBA courses at the Kelley School of Business. Before com- ing to RGS, he worked as a Maarten van Kampen research assistant for Prof. Majored in Econometrics Sliwka at the University of at Vrije Universiteit (VU) in Cologne. For his thesis, Klemens Keldenich conducted Amsterdam, graduating in an economic experiment at the Kölner Laboratorium 2006. In his fi nal thesis he für Wirtschaft sforschung (Cologne economic research examined the application laboratory) to examine the behavior of small groups of various „unobserved in an ultimatum game. The analysis concentrated component“ models to the particularly on leadership skills and communication analysis of intraday data within the group. Klemens Keldenich did an internship concerning the demand for in Human Resources at the AXA insurance company, he electricity. As one of Professor was a student trainee in Research at Sal. Oppenheim, Koopman’s teaching assist- and he worked as a tutor for microeconomics under ants, he worked on developing the computer program Professor Dr. Axel Ockenfels. „Structural Time Series Analyzer Modeler and Predictor“ Fields of interest: Experimental Economic Research, (STAMP). At the „Economic and Social Institute“ of the Game Theory, Behavioral Economics VU, he also worked on forecasting electricity demand with „State Space“ methods. Aft er completing his studies, he worked for two years in „Economic Capital Marcus Klemm Modeling“ at the Rabobank (Netherlands). Majored in Economics with a concentration in Social Fields of interest: Econometrics, Time Series Ana- Policy, Monetary Economics and International Trade lysis, Economic Cycle Analysis Relations at the Otto-Friedrich-Universität in Bamberg. During his studies, he spent two semesters at the Uni- versity Jean Moulin in Lyon, France. His thesis is an empirical study of the Precautionary Saving theory. Us- ing data from the socio-economic panel, he examined whether German households saved diff erently when labor market uncertainty was greater. Marcus Klemm

14 RWI News 1/2009 News from RGS Econ

Angela Young Completed her undergraduate studies in Economics at Dalhousie University (Canada) on 2004 and received a Masters of Arts from the University of Rochester (USA) in 2007. Then she served as a doctoral candidate at the University of Rochester (USA), where she successfully completed the Ph.D. courses in Applied Theory of Games (Industrial Organization, Poli- tical Economy) and Foreign Economics (International Trade, International Macro- economics and Finance). She also taught Economics to undergraduates at the University of Rochester and worked during the summer as an economist at the „UNDP Multi Country Oﬃ ce Samoa“ of the United Nations Development Program (UNDP). Fields of interest: Econometrics, Time Series Ana- lysis, Economic Cycle Analysis

RWI News 1/2009 15 RWI News No. 1/2009 (February)

Publisher: Rheinisch-Westfälisches Institut für Wirtschaft sforschung Hohenzollernstraße 1 – 3 45128 Essen Phone: +49-201–8149-0, Fax: +49-201–8149-200 [email protected] www.rwi-essen.de All Rights Reserved Editor: Prof. Dr. Christoph M. Schmidt Editorial oﬃ ce: Sabine Weiler (Phone -213), Joachim Schmidt Layout: Daniela Schwindt Photos: Bundespresseamt, WAZ, RGS Econ, RWI ISSN 1612-3581