Business Cycle Volatility in Germany

Stylized facts suggest that output volatility in OECD countries has declined in recent years. However, the causes and the nature of this decline have so far been analyzed mainly for the United States. In this paper, we analyze whether structural breaks in the dynamics and the volatility of the real output process in Germany can be detected. We report evidence that output volatility has declined in Germany. Yet, this decline in output volatility is not as clear-cut as it is in the case of the United States. In consequence, it is difficult to answer the question whether the decline in output volatility in Germany reflects good economic and monetary policy or merely ‘good luck’.Business Cycle; Volatility; Germany

Measuring plume-related exhumation of the British Isles in Early Cenozoic times

Mantle plumes have been proposed to exert a first-order control on the morphology of Earth's surface. However, there is little consensus on the lifespan of the convectively supported topography. Here, we focus on the Cenozoic uplift and exhumation history of the British Isles. While uplift in the absence of major regional tectonic activity has long been documented, the causative mechanism is highly controversial, and direct exhumation estimates are hindered by the near-complete absence of onshore post-Cretaceous sediments (outside Northern Ireland) and the truncated stratigraphic record of many offshore basins. Two main hypotheses have been developed by previous studies: epeirogenic exhumation driven by the proto-Iceland plume, or multiple phases of Cenozoic compression driven by far-field stresses. Here, we present a new thermochronological dataset comprising 43 apatite fission track (AFT) and 102 (U–Th–Sm)/He (AHe) dates from the onshore British Isles. Inverse modelling of vertical sample profiles allows us to define well-constrained regional cooling histories. Crucially, during the Paleocene, the thermal history models show that a rapid exhumation pulse (1–2.5 km) occurred, focused on the Irish Sea. Exhumation is greatest in the north of the Irish Sea region, and decreases in intensity to the south and west. The spatial pattern of Paleocene exhumation is in agreement with the extent of magmatic underplating inferred from geophysical studies, and the timing of uplift and exhumation is synchronous with emplacement of the plume-related British and Irish Paleogene Igneous Province (BIPIP). Prior to the Paleocene exhumation pulse, the Mesozoic onshore exhumation pulse is mainly linked to the uplift and erosion of the hinterland during the complex and long-lived rifting history of the neighbouring offshore basins. The extent of Neogene exhumation is difficult to constrain due to the poor sensitivity of the AHe and AFT systems at low temperatures. We conclude that the Cenozoic topographic evolution of the British Isles is the result of plume-driven uplift and exhumation, with inversion under compressive stress playing a secondary role

Consumer preferences and the reliability of Euler equation tests of capital mobility: some simulation-based evidence

The globalization of international financial markets has renewed interest in the measurement of capital mobility. Consumption-based tests such as the Euler equation test are commonly used. These tests, however, are derived under restrictive assumptions on consumer behavior. In this paper, we ask how the Euler equation test of capital mobility performs if these restrictive assumptions are relaxed. We simulate a dynamic general equilibrium two-country model under alternative assumptions regarding consumer preferences and use the simulated time series to test for the degree of capital mobility. We find that the Euler equation test discriminates fairly well between high and low capital mobility regimes even if the restrictive assumptions on consumer behavior used to derive the test are not satisfied

Business Cycle Volatility in Germany

Stylized facts suggest that output volatility in OECD countries has declined in recent years. However, the causes and the nature of this decline have so far been analyzed mainly for the United States. In this paper, we analyze whether structural breaks in the dynamics and the volatility of the real output process in Germany can be detected. We report evidence that output volatility has declined in Germany. Yet, this decline in output volatility is not as clear-cut as it is in the case of the United States. In consequence, it is difficult to answer the question whether the decline in output volatility in Germany reflects good economic and monetary policy or merely ?good luck?

An Evaluation of Lake Trout Suppression in Yellowstone Lake, Yellowstone National Park

Introduced lake trout (Salvelinus namaycush) threaten to extirpate native Yellowstone cutthroat trout (Oncorhynchus clarkii bouvieri) from Yellowstone Lake, Yellowstone National Park. A National Park Service gill netting program has removed nearly 400,000 lake trout from Yellowstone Lake since 1995. Lake trout population size has not been estimated; therefore, it is difficult to determine the proportion that has been removed. Our objectives were to (1) examine catch as a function of effort to determine if the suppression program has caused lake trout abundance to decline, (2) determine if certain population metrics have changed over time as a function of harvest, and (3) develop age-structured models to determine the level of mortality required to cause population growth rate to decline below 1.0 (replacement). Catch has continued to increase as a function of effort, indicating lake trout abundance is increasing. Population metrics were not clearly indicative of a response to harvest, but were comparable to North American lake trout populations where harvest has occurred. Results from an age-structured matrix model determined the rate of population growth was 1.1 given the current rate of fishing mortality and that population growth rate would be 1.3 in the absence of fishing mortality. The current rate of population growth is positive; however, it is slower than it would be in the absence of lake trout suppression. Fishing mortality needs to increase by at least 10 percent to reduce population growth rate below 1.0 in the future

The Farm, the city, and the emergence of social security

We study the social, demographic and economic origins of social security. The data for the U.S. and for a cross section of countries suggest that urbanization and industrialization are associated with the rise of social insurance. We describe an OLG model in which demographics, technology, and social security are linked together in a political economy equilibrium. In the model economy, there are two locations (sectors), the farm (agricultural) and the city (industrial) and the decision to migrate from rural to urban locations is endogenous and linked to productivity differences between the two locations and survival probabilities. Farmers rely on land inheritance for their old age and do not support a pay-as-you-go social security system. With structural change, people migrate to the city, the land loses its importance and support for social security arises. We show that a calibrated version of this economy, where social security taxes are determined by majority voting, is consistent with the historical transformation in the United States

The Effect of Gender Equality on International Soccer Performance

In this paper, we propose a new estimation strategy that uses the variation in success between the male and the female national soccer team within a country to identify the causal impact of gender equality on women's soccer performance. In particular, we analyze whether within-country variations in labor force participation rates and life expectancies between the genders, which serve as measures for the country's gender equality, are able to explain differences in the international success of male and female national soccer teams. Our results reveal that differences in male and female labor force participation rates and life expectancies are able to explain the international soccer performance of female teams, but not that of male teams, suggesting that gender equality is an important driver of female sport success