CRC TR 224 EPoS–Economic Perspectives on Societal Challenges

"Aligning Competition Policy and Industrial Policy in the EU" is now available: www.crctr224.de/research/dis...

How industrial policy and competition policy can become friends. New paper by Tomaso Duso and Martin Peitz.

"The Equilibrium Effects of Mortality Risk" is now available: www.crctr224.de/research/dis...

Mortality risk influences asset prices by reducing households' incentives to save and invest, thereby lowering risky asset values and raising the risk-free rate.
Endogenous price effects explain one third of welfare losses following mortality shocks.

"Income and Wealth Inequality in the United States: An Update Including the 2022 Wave" is now available : www.crctr224.de/research/dis...

Update on U.S. inequality! Wealth inequality remains high: top 1% hold 35% of wealth down from peak of 39% in 2016. Housing boom listed the middle class, but the gap across generations keeps widening—young Americans own far less than their parents did.

"The Enduring Legacy of Educational Institutions: Evidence from Hyanggyo in Pre-Modern Korea" is now available: www.crctr224.de/research/dis...

Centuries after their decline, Korea’s early state schools (Hyanggyo) still shape education today. Using new data, we show that historical exposure to Hyanggyo predicts higher modern schooling, pro-education attitudes, and lower fertility rates.

"Regulatory Capacity in a Game of Asymmetric
Regulation" is now available: www.crctr224.de/research/dis...

Jacopo Gambato, Bernhard Ganglmair and Julia Krämer demonstrate how expanding a regulator's
resources can backfire and harm compliance when the success of detecƟng firms'
noncompliance varies for different regulatory targets. #econtwiƩer #regulaƟon

"Policy Concerns in an Era of Low Fertility: The Role of Social Comparisons and Intensive Parenting" is now available: www.crctr224.de/research/dis...

The global fertility rate has reached a record low, with nearly half of all countries now below replacement level.

"Entry Deterrence with Public Signals: Revisiting the Chain-Store Paradox" is now available: www.crctr224.de/research/dis...

Revisit the classic chain-store paradox by introducing a novel element.

"Sequential Equilibria in Mixed Strategies" is now available: www.crctr224.de/research/dis...

A Nash equilibrium of a game in extensive form is a sequential equilibrium in mixed strategies if it can be approximated through equilibria of close-by games with slightly perturbed payoffs and small-probability behavioral types.

"Fully Self-Justifiable Outcomes" is now available: www.crctr224.de/research/dis...

An equilibrium outcome of a game in extensive form is fully self-justifiable if it is supported by justifiable equilibria (McLennan, 1985) regardless of the order in which actions implausible under the given outcome are excluded.

"One-Stop-Shopping hinders Specialization" is now available: www.crctr224.de/research/dis...

One-stop-shopping prevents specialization as a source of market power.

"Designing Vertical Differentiation with Information" is now available: www.crctr224.de/research/dis...

When markets are vertically differentiated by quality, consumers don't desire public disclosure of ranking information.

"Empirical Monetary-Fiscal Equivalence" is now available: www.crctr224.de/research/dis...

How much fiscal stimulus is needed to mimic a monetary policy rate cut? We estimate that fiscal stimulus payments totalling 1.3% of GDP over five years are required to replicate the economic boost of a one‐percentage‐point cut in interest rates.

"Moderating Content-Hosting Platforms" is now available: www.crctr224.de/research/dis...

Can content moderation foster truthful communication online? Moderation deters lies, making it easier for creators to persuade users. This results in more creator participation but lower effort content. A tradeoff for optimal moderation policy.

"Model Uncertainty" is now available: www.crctr224.de/research/dis...

When decision-making is complex, people often ignore model uncertainty—acting as if one model is definitely right. This simplification boosts confidence, even if beliefs still reflect uncertainty. Complexity creates the illusion of certainty.

"The Alignment Effect of Auditing" is now available: www.crctr224.de/research/dis...

Information provision can improve welfare without changing average behavior. A new paper by Andreas Gerster, Johannes Gessner and Michael Kramm shows that aligning willingness to pay for energy efficiency at home with cost savings yields welfare gains.