Moral hazard and bail-out in fiscal federations: evidence for the German Länder

We identify investor moral hazard in the German fiscal federation. Our identification strategy is based on a variable, which was used by the German Federal Constitutional Court as an indicator to determine eligibility of two German states (Länder) to a bail-out, the interest payments-to-revenue ratio. While risk premia measured in the German sub-national bond market react significantly to the relative debt level of a state (Land), we also find that a larger interest payments-to-revenue ratio counter-intuitively lowers risk premia significantly. Furthermore, with increasing values the risk premia decrease more strongly. This is evidence of investor moral hazard, because a larger indicator value increases the likelihood of receiving a bail-out payment. Quantitatively, the effects are, however, quite small. Our findings are robust to a variety of sample changes. In addition, we provide a case study of the recent Federal Constitutional Court ruling on the Land Berlin, which had filed for additional federal funds. The negative response of the court did not lead to a change in financial markets' bail-out expectations. In sum, our results indicate significant investor moral hazard in the sub-national German bond market. --moral hazard,bail-out,sovereign bond spreads,fiscal federalism,Germany

Expected budget deficits and interest rate swap spreads - Evidence for France, Germany and Italy

This study analyses whether expected budget deficits have an impact on interest rate swap spreads in France, Germany and Italy. We use monthly deficit forecasts from financial market participants to take the forward-looking behaviour of financial markets into account. Results of a SUR estimation show no significant impact of expected deficits on swap spreads over the whole sample period (1994-2004). However, we find an increase in market discipline for Germany and France since the signing of the Stability and Growth Pact, and for Germany also since the start of European monetary union. --Budget deficits,interest rate swap spreads,EMU,Stability and Growth Pact

Mechanochemical Synthesis of Cu2MgSn3S8 and Ag2MgSn3S8

Two new thiospinels of the type AI2BIICIV3SVI8 were successfully synthesized via a mechanochemical route using binary sulfides and sulfur. Cu2MgSn3S8 and Ag2MgSn3S8 are the first AI2BIICIV3SVI8 compounds with magnesium as divalent cation. The crystal structures of Cu2MgSn3S8 and Ag2MgSn3S8 were refined in the cubic space group Fd3m using X‐ray powder diffraction. According to UV/Vis measurements, a direct optical bandgap of ca. 1.65 eV was determined for both Cu2MgSn3S8 and Ag2MgSn3S8. Temperature‐dependent magnetic susceptibility measurements of the Cu2MgSn3S8 sample indicate diamagnetism. A 119Sn Mössbauer spectrum confirms the tetravalent state of tin, underlining the electron‐precise description.TU Berlin, Open-Access-Mittel - 202

The macroeconomic effects of exogenous fiscal policy shocks in Germany: a disaggregated SVAR analysis

We investigate the short-term effects of fiscal policy shocks on the German economy following the SVAR approach by Blanchard and Perotti (2002). We find that direct government expenditure shocks increase output and private consumption on impact with low statistical significance, while they decrease private investment, though insignificantly. For the sub-category government investment – in contrast to government consumption – a positive output effect is found, which is statistically significant until 12 quarters ahead. Allowing for anticipation effects of fiscal policy does not change the sign of the positive consumption response. Anticipated expenditure shocks have significant effects on output when the shock is realized, but not in the period of anticipation. In sum, effects of expenditure shocks are only short-lived. Government net revenue shocks do not affect output with statistical significance. However, when splitting up this aggregate, direct taxes lower output significantly, while small indirect tax revenue shocks have little effects. Compensation of public employees is equally not effective in stimulating the economy. --Fiscal policy,government spending,net revenue,policy anticipation,structural vector autoregression

Esters of (S)-1,2-propanediol and (R,R)-2,3-butanediol — Chiral Compounds Inducing Cholesteric Phases with a Helix Inversion ·

Mesogenic chiral esters of optically active (S)-1,2-propanediol and (R,R)-2,3-butanediol were synthesized. The compounds, added to a nematic phase induce cholesteric phases exhibiting a helix inversion with temperature variation. This effect is independent of the molecular structure of the nematic solvent. The inversion temperature varies only slightly with concentration but can be influenced by the mesogenic substituent

Smectic A1 — Smectic Ad Transition in Binary Mixtures of Compounds with Strongly Polar Terminal Groups

On the basis of high pressure studies we present here the evidence for the existence of a smectic A, — smectic Aj transition at high pressure in a binary liquid crystal mixture consisting of terminally polar compounds. A feature of this observation is that both the constituent compounds are three phenyl ring systems wherein the bridging dipoles are disposed additive with respect to the polar end group

Friction Drag on a Particle Moving in a Nematic Liquid Crystal

The flow of a liquid crystal around a particle does not only depend on its shape and the viscosity coefficients but also on the direction of the molecules. We studied the resulting drag force on a sphere moving in a nematic liquid crystal (MBBA) in a low Reynold's number approach for a fixed director field (low Ericksen number regime) using the computational artificial compressibility method. Taking the necessary disclination loop around the sphere into account, the value of the drag force anisotropy (F_\perp/F_\parallel=1.50) for an exactly computed field is in good agreement with experiments (~1.5) done by conductivity diffusion measurements. We also present data for weak anchoring of the molecules on the particle surface and of trial fields, which show to be sufficiently good for most applications. Furthermore, the behaviour of the friction close to the transition point nematic isotropic and for a rod-like and a disc-like liquid crystal will be given.Comment: 23 pages RevTeX, including 3 PS figures, 1 PS table and 1 PS-LaTeX figure; Accepted for publication in Phys. Rev.

Re-entrant Nematic Phase Established for Several Homologous Biaromatic Liquid Crystals by Investigation of Binary Mixed Systems

Several homologous series of biaromatic liquid crystals with structure type CnH2n+1O • C6H4 • M•C6H4-CN are investigated. By studying the phase transition temperatures in binary mixed systems a "re-entrant" nematic phase N(re) is established for all compounds exhibiting smectic A phases. The virtual transition temperatures N(re) - SA are found to decrease with increasing chain length of the alkyloxy group. The influence of the middle group M on the re-entrant behaviour can be attributed mainly to its dipole moment. The temperature range of the smectic A phase decreases when the middle group dipole moment is additive to that of the nitrile group. To summarize it can be said that the "re-entrant" behaviour of biaromatic liquid crystals is found to be very similar to that of triaromatic systems reported recently

And yet it moves: a high-temperature neutron diffraction study of ion diffusion in the inverse perovskites BaLiX3 (X = F, H, D)

Despite the interest in (anti‐)perovskites and diverse hydrides as hydride conductors and all‐solid‐state battery materials, little experimental evidence on anion diffusion in these compounds is available. Herein, we use neutron diffraction at high temperatures to discover pathways and estimate activation barriers of anion migration in mechanosynthesized powders of BaLiF3, BaLiH3, and BaLiD3. We critically assess the limitations of both current methods for deriving effective one‐particle potentials (i.e., via modelling of the probability‐density function and via maximum‐entropy reconstruction of the scatterer density). The suggested migration pathways run roughly along the edges of the LiX6 octahedra with activation energies of 0.45(3), ca. 0.41, and less than 1.44(3) eV in BaLiD3, BaLiH3, and BaLiF3, respectively. Not only is this the first determination of diffusion barriers in these hydrides but also the second study providing any comparative data on the two methods of derivation

Stannites – a new promising class of durable electrocatalysts for efficient water oxidation

The oxygen evolution reaction (OER) through water oxidation is a key process for multiple energy storage technologies required for a sustainable energy economy such as the formation of the fuel hydrogen from water and electricity, or metal‐air batteries. Herein, we investigate the suitability of Cu2FeSnS4 for the OER and demonstrate its superiority over iron sulfide, iron (oxy)hydroxides and benchmark noble‐metal catalysts in alkaline media. Electrodeposited Cu2FeSnS4 yields the current densities of 10 and 1000 mA/cm2 at overpotentials of merely 228 and 330 mV, respectively. State‐of‐the‐art analytical methods are applied before and after electrocatalysis to uncover the fate of the Cu2FeSnS4 precatalyst under OER conditions and to deduce structure‐activity relationships. Cu2FeSnS4 is the first compound reported for OER among the broad class of stannite structure type materials containing multiple members with highly active earth‐abundant transition‐metals for OER.DFG, 390540038, EXC 2008: Cluster of Excellence UniSysCatTU Berlin, Open-Access-Mittel - 201