Homeownership and Wealth in Switzerland and Germany

Property wealth represents the most important wealth component in nearly all OECD countries. Homeownership is linked to wealth accumulation in several ways: Wealthier households are more likely to buy a house or apartment, home owners tend to save more and rising house values typically yield higher returns than money in a bank account. Moreover, owners can borrow on a mortgage to finance, e.g., the formation of an enterprise or other economic activities. At the aggregate level, these relations can explain why countries with low rates of homeownership tend to have a high wealth inequality. This paper looks at wealth and homeownership in Germany and Switzerland. These countries show the lowest proportion of owner-occupiers in Europe and a high wealth inequality. We analyse to what extent this high inequality can be explained by homeownership status. In the first part of this contribution, we review explanations for the low share of owner-occupiers in the two countries. In the second part, we analyse wealth and homeownership empirically using data of the SHP and the German Socio-Economic Panel (SOEP) from 2012. We make use of decomposition methods to analyse how renter and owner households differ in wealth levels and wealth inequality

Emancipation under the great recession in Spain.

ABSTRACT: In this paper we document the behavior of emancipation over one of the biggest boom–bust cycles experienced by the Spanish economy. In principle, the economic difficulties faced by the Spanish youth during the last recession would have hampered a normal emancipation pace. However, we find that the proportion living away from parents among those aged 18–40 has not decreased but increased from 44 % during the boom (2005–2008) to 46 % during the bust (2009–2013). A simple decomposition reveals that this is mainly driven by the substantial rise in the emancipation rate among the full-time employed workers during the bust. To explain this change we discuss several factors such as macroeconomic conditions, rental subsidy policy, higher labor mobility, selection bias, reverse causation, timelag in adjustment and secular trend.MEC(IP: María Paz Espinosa Alejos, UPV

Sources of pro-cyclicality in east Asian financial systems

Procyclicality is a normal feature of economic systems, but financial sector weaknesses can exacerbate it sufficiently to pose a threat to macroeconomic and financial stability. These include shortcomings in bank risk management and governance, in supervision and in terms of dependence on volatile sources of funds. The paper tests econometrically for the importance of such features leading to pro-cyclicality in the financial systems of 11 East Asian countries. This analysis makes it possible to identify specific policy measures for East Asian countries that could limit the extent to which financial systems exacerbate pro-cyclicality

Overview on the phenomenon of two-qubit entanglement revivals in classical environments

The occurrence of revivals of quantum entanglement between separated open quantum systems has been shown not only for dissipative non-Markovian quantum environments but also for classical environments in absence of back-action. While the phenomenon is well understood in the first case, the possibility to retrieve entanglement when the composite quantum system is subject to local classical noise has generated a debate regarding its interpretation. This dynamical property of open quantum systems assumes an important role in quantum information theory from both fundamental and practical perspectives. Hybrid quantum-classical systems are in fact promising candidates to investigate the interplay among quantum and classical features and to look for possible control strategies of a quantum system by means of a classical device. Here we present an overview on this topic, reporting the most recent theoretical and experimental results about the revivals of entanglement between two qubits locally interacting with classical environments. We also review and discuss the interpretations provided so far to explain this phenomenon, suggesting that they can be cast under a unified viewpoint.Comment: 16 pages, 9 figures. Chapter written for the upcoming book "Lectures on general quantum correlations and their applications