Wintersemester 16/17

02.11.2016 Christoph Engel, Max-Planck-Institut Bonn
The Price of Moral Rights: A Field Experiment
 U.S. copyright law is firmly rooted in utilitarian principles. This approach has not been universally adopted. Copyright authors in Europe do not only enjoy legal protection of their economic interests in exploiting the works they have created, but they are also protected in their non-pecuniary interests. Authors have the right to be named as author of their work, to control alterations of their work, and to retract their work in case their artistic beliefs have changed. Apart from the special case of visual arts, these moral rights receive much less protection under U.S. copyright law. We address this debate empirically and present the first incentive-compatible field experiment on moral rights. We elicit the preferences of over 200 authors from 24 countries worldwide and compare the valuation of moral rights by U.S. and European authors. We find that a majority of authors are not willing to trade moral rights in the first place, that they demand significant prices in case they decide to trade and that U.S. authors do not behave very differently from their European counterparts. The study does not only have important implications for the design of copyright law on both sides of the Atlantic. It also calls into question whether a purely incentive-based theory of copyright law is sufficient to capture the complex relationship between human behavior and creativity. It proposes a clean identification approach which may also be used in other areas of intellectual property research. 
09.11.2016 Tobias Berg, Frankfurt School of Finance & Management

 “Brexit” and Financial Sector Development – Evidence from the Global Syndicated Loan Market 
In this paper, we analyze the effect of the Brexit vote on the UK syndicated loan market. The UK is one of the leading financial centers worldwide and the loan market is one of the major sources of funding for firms, particularly in Europe. It is therefore important to understand the implications of the prospect of leaving the EU for both UK and international firms and banks. Using a difference-in-differences analysis we find the following results: issuances in the UK syndicated loan market dropped by 25% after the Brexit vote relative to a set of comparable syndicated loan markets. This decline is concentrated in lending to domestic firms and by domestic banks. We only observe a small and insignificant decline in lending by international firms and from international banks in the UK syndicated loan market. These results suggests that the Brexit vote primarily affected UK banks and borrowers with – so far – limited consequences for international activities in the UK syndicated loan market.

16.11.2016 Martin Karlsson, Universität Duisburg-Essen
The Sooner the Better? Compulsory Schooling Reforms in Sweden
 
This paper evaluates the impact of two parallel educational reforms increasing instructional time in the Swedish primary school on earnings and further socio-economic later-life outcomes. The reforms extended the compulsory years of schooling from 6 to 7 years and the annual term length from 34.5/36.5 to 39 weeks per year. Gradually introduced over the 1930-1950 period in more than 2,500 Swedish school districts, the extensions generated large exogenous variation in educational attainment at different points in primary school while at the same time the overall school system and curricula remained unchanged. Thus, the reforms constitute an ideal quasi- experimental setting for analysing the long-run causal impact of compulsory education keeping other school characteristics fixed. Affecting large shares of the population, the reforms had large impacts on educational attainment, but only up to the new compulsory level. Using a purpose built data-set on reform status combined with high-quality administrative data on individual level for a number of later-life outcomes we show that the compulsory schooling reform had moderate average returns on earnings and further non-monetary outcomes. Our results thus confirm the most recent findings on returns to education in and outside the United States based on compulsory schooling law changes. In contrast, the extensions of term length tend to be more eff ective in raising earnings.
23.11.2016 Claudius Steinhardt, BW Universität München
Differentiated Time Slot Pricing under Routing Considerations in Attended Home Delivery
In this paper, we study an e-grocer’s tactical problem of differentiated time slot pricing in attended home delivery. The purpose of differentiating delivery prices is to influence customers’ choice behavior concerning the offered time slots, such that cost-effective delivery schedules on an operational level can be expected and overall profit is maximized. We present a mixed-integer linear programming formulation of the problem, in which delivery costs are anticipated by explicitly incorporating routing constraints, and we model customer behavior by a general non-parametric rank-based choice model. Concerning cost anticipation, we also propose a model-based approximation that enables application to real-world problem sizes. In a setup inspired by an industry partner operating in urban areas, we then perform a comprehensive computational study that reveals the value of the model-based approximation as a supporting instrument for an e-grocer’s pricing decisions in practice. In particular, we demonstrate the superiority of the model-based approximation for real-world problem sizes to a benchmark approach, which is adapted to our setting from the differentiated slotting literature (Agatz et al. 2011). Also, all approaches discussed in this paper clearly outperform a unit price approach and other standard pricing heuristics that are regularly applied in practice.
30.11.2016 Rainald Borck, Universität Potsdam
Pollution and city size: Can cities be too small?

We study the optimal and equilibrium size of cities in a monocentric city model with environmental pollution. Pollution is related to city size through the effect of population on production, commuting, and housing consumption. If pollution is local, we find that equilibrium cities are too large, mirroring standard results in the theory of city systems. When pollution is global and per capita pollution declines with city size, however, equilibrium cities may be too small.
11.01.2017Philip Jung, TU Dortmund
What hides behind the German labor market miracle? A macroeconomic analysis

The Hartz reforms in the early 2000s have reshaped the German labor market and have led to what many observers call the German labor market miracle. This paper closes a gap in the evaluation of the reforms by providing a macroeconomic analysis of the effects of the reform on worker flows. We use SIAB micro data to construct worker flow series between employment and unemployment for the period from 1980 to 2010. To disentangle cyclical from long-run effects, we construct a new data seriesusing unemployment benefit claims to extend worker flow series until 2014. Using this new data, we show that 40 % of the decrease in unemployment is accounted for by cyclical movements in the separation rate. The remaining 60% are accounted for by the reversed secular decline in Germany’s job finding rate. We complete our analysis by a structural analysis based on a search and matching model of the German labor market. We estimate the effects of each of the four reform steps (Hartz I - IV) to provide an answer to the question which part of the reform has been most im portant in generating Germany´s labor  market miracle.
 
18.01.2017Andreas Fuchs, Universität Heidelberg
Aid on Demand: African Leaders and the Geography of China’s Foreign Assistance

We investigate whether the political leaders of aid-receiving countries use foreign aid inflows to further their own political or personal interests. Aid allocation biased by leaders’ selfish interests arguably reduces the effectiveness of aid, negatively affecting development outcomes. We examine whether more Chinese aid is allocated to the political leaders’ birth regions and regions populated by the ethnic group to which the leader belongs, controlling for objective indicators of need. We have collected data on 117 African leaders’ birthplaces and ethnic groups and geocoded 1,955 Chinese development finance projects across 3,553 physical locations in Africa over the 2000-2012 period. The results from various fixed-effects regressions show that current political leaders’ birth regions receive substantially larger financial flows than other regions. We do not find evidence that leaders shift aid to regions populated by groups who share their ethnicity.
25.01.2017Fabian Paetzel, Helmut Schmidt Universität Hamburg
 Entitlements and Loyalty in Groups: An Experimental Study

We study loyalty in groups that are exogenously assigned on the basis of members' performance in a task. We observe that the in-group bias is strong and significant among subjects who score high in performance, and that it is weak and insignificant among those who score low. This asymmetric pattern is mirrored in the punishment of disloyal subjects within groups. The results are consistent with an explanation according to which fairness judgments depend on entitlement considerations and provide a new perspective to the theory and empirical research showing that group loyalty increases with the status of the group.
01.02.2017Cédric Wasser, Universität Bonn
Optimal Structure and Dissolution of Partnerships

We study a partnership model with non-identical type distributions and interdependent values. For any convex combination of revenue and social surplus in the objective function, we derive the optimal dissolution mechanism for arbitrary initial ownership. This mechanism involves ironing around worst-off types, which are endogenously determined and typically interior. Given the optimal mechanism, we then determine the optimal initial ownership structures. Equal ownership is always optimal with identical distributions. With non-identical distributions, optimal ownership is typically asymmetric and the identity of the agents with large shares may change with the weight on revenue in the objective. Even fully concentrated ownership is optimal under natural conditions.
08.02.2017Andriy Zapechelynuk, University Glasgow
Robust Sequential Search

We consider the problem of sequential search with free recall and discounting. Performance of a search rule for a given prior is measured as the fraction of the maximal payo under this prior. A search rule is robust if it has a high performance under every prior. Bayesian search rules are not robust as, while being optimal under one prior, they can perform very poorly under a di erent prior. We present a search rule that performs well after any search history under any prior with a given support. In each round the rule stops searching with a probability that is linear in the best previous o er.