For his paper “Energy Tax Exemptions and Industrial Production”, Dr. Andreas Gerster, Acting Chair of Quantitative Economics at the University of Mannheim, was awarded first place in the Deutscher Wirtschaftspreis, category “Best Contributions by Young Academics”. The prize is awarded every two years by the Joachim Herz Foundation and is endowed with 25,000 euros.
Together with co-author Stefan Lamp, postdoctoral researcher at the Universidad Carlos III de Madrid, Andreas Gerster is investigating the effects of exempting electricity-intensive companies in the manufacturing sector from the EEG surcharge (EEG-Umlage). They focus on two main aspects: the companies' electricity consumption and their competitiveness. With regard to electricity consumption, the researchers observe a detrimental effect, as the companies exempted from the energy tax significantly increase their consumption. Moreover, Gerster and Lamp compare two designs of the scheme: when companies are offered incentives to reach a threshold that entitles them to exemption, they deliberately consume more electricity than when no such incentives are offered. Competitiveness was measured in terms of employment, sales, and exports, where Gerster and Lamp show no significant effects. Since improving competitiveness is the goal of the energy tax exemption, the researchers question its necessity in its current form.
The Joachim Herz Foundation recognizes the project as an important contribution to making the exemption from the EEG levy environmentally compatible. Every two years, it honors outstanding interdisciplinary research contributions in economics with the Deutscher Wirtschaftspreis. It is awarded in the categories “Best research work by an established scientist” and “Best contributions by young scientists” and is the most highly endowed prize for economics in Germany. “This is great recognition for our work. It encourages us to continue with research, even if it was sometimes exhausting,” says Andreas Gerster, delighted with the award.
Further information is available at: https://www.joachim-herz-stiftung.de/was-wir-tun/wirtschaft-verstehen-gestalten/wirtschaftswissenschaften-querdenken/wirtschaftspreis/
Dr. Andreas Gerster
Acting Chair of Quantitative Economics
Department of Economics
University of Mannheim
Phone: +49 621 181 1791
After World War II, millions of refugees were displaced to West Germany. At that time, Germany was divided into four Allied occupation zones. As the French occupation zone restricted the access of refugees, most ended up settling in the UK, US, and Soviet occupation zones.
The consequences can be seen clearly in comparing towns right at the former border between the French and the US occupation zones in what became the state of Baden-Württemberg. In 1950, towns on the former US side of the border had many more refugees and a 20 percent greater population density. Before the arrival of refugees, in contrast, there had never been any differences in population density. Nor did towns on opposite side of the border differ in other socio-economic characteristics.
What were the economic consequences of the refugee arrival in the long term? A new study compares the economic development of towns on opposite sides of the former border in the 75 years since the refugees arrived.
The economists Antonio Ciccone (Mannheim University) and Jan Nimczik (ESMT Berlin) focus on the effects of the historical refugee intake on today’s productivity, wages, income, rents, and population density. They document that, as of 2020, population density is still greater in towns on the former US side. And, at the same time, towns on the former US side have higher income per capita, productivity, and wages today alongside higher rents.
The arrival of refugees on the US side of the former border raised income per capita and productivity by around 13 percent and wages by around 10 percent. However, it took several decades for the economic advantage of towns on the US side of former border to emerge.
Prof Nimczik says, “Today, wars, civil conflicts, economic collapse, and climate change continue to cause massive refugee movements. Naturally, humanitarian considerations must be the main motivation of the measures taken in support of refugees. However, economic costs and benefits always have played a role also. The public debate in potential receiving countries generally focuses on the short- and medium-term. The case of WWII refugees in Germany shows that also the longer term, economic benefits can be considerable.”
Prof Ciccone adds, “WWII refugees in West Germany were not universally welcomed or treated as equals. It took decades for them to become generally accepted and integrated. Today’s economic advantages of towns admitting WWII refugees only set in gradually. They would not have been evident at the time the refugees were admitted or during the first few decades after their arrival. But, ultimately, the economic effects appear to be substantial. The data necessary for our study only became available recently thanks to the German open data efforts. Hopefully, the data to evaluate the longer-run consequences of other recent refugee movements will also be made available in the future.”
Prof. Dr. Antonio Ciccone
University of Mannheim
Department of Economics
Wednesday, 15 March, marks the start of the 2022 spring semester lecture series organized by the Student Committtee of the Economics Department. This semester's theme is “Economics, Politics, and the Media.” The lectures will take place on site or via Zoom. Students of all faculties as well as external guests are cordially invited to all events.
On 1 February 2022 Prof. Ulrich Wagner, Ph.D. took over from his predecessor Prof. Dr. Markus Frölich the position of Deputy Head of Department as well as the position of Dean for Student Affairs for the Bachelor's program and the Master's program in Economics and Competition and Regulation Economics. In addition, he is the new Chairman of the Examination Committee for the Master's program, and he assumes the function of the International Officer as well as the office of the Vice Dean (Dean of Studies) at the school level, joint with the Department of Law.
Whether as managers, entrepreneurs or consultants – once a year the Boston Consulting Group and Manager Magazin honor the 100 most influential women who have rendered outstanding services to the German economy in the previous year. In 2021, the Mannheim-based economist Prof. Michèle Tertilt, Ph.D. is among them.
“The professor at the University of Mannheim and recipient of the highest scientific honors researches the effects of gender roles and family structures on economic growth, investment in human capital and economic development as astutely as she perseveres. She wants to abolish marital splitting, but remains skeptical about quotas for women,”1 explains the jury.
Since 2015, Manager Magazin has presented the top 100 women in its first annual issue. The female candidates from different industries are not selected on the basis of formal offices, but on the basis of their real influence. In addition to female entrepreneurs, the list includes female managers, supervisory board members, expatriates (German managers abroad) and influencers.
In her research, Michèle Tertilt focuses on macroeconomics and development economics as well as family economics and topics in finance. She has been a professor of economics at the University of Mannheim since 2010. In 2019, she was awarded the prestigious Gottfried Wilhelm Leibniz Prize for her outstanding contributions to research.
1 Original quotation:
“Die Professorin an der Universität Mannheim und Trägerin höchster wissenschaftlicher Auszeichnungen erforscht so klug wie beharrlich die Auswirkungen von Geschlechterrollen und Familienstrukturen auf Wirtschaftswachstum, Investitionen in Humankapital und wirtschaftliche Entwicklung. Das Ehegattensplitting will sie abschaffen, bei Frauenquoten bleibt sie skeptisch.”
Prof. Michèle Tertilt, Ph.D.
E-Mail: tertilt uni-mannheim.de
The economics postdoc from Mannheim has successfully applied for the DAAD's prestigious “Postdoctoral Researchers International Mobility Experience” (PRIME) program.
In his research, Schneider, who is collaborating with Prof. Dr. Wladislaw Mill, focuses on issues of optimal taxation and public finance, in particular using methods from experimental and behavioral economics. Schneider is receiving DAAD funding for his current research project, in which he is investigating the potential positive effects of tax evasion opportunities.
Currently, Schneider is completing the mandatory study abroad period for the PRIME program at the Norwegian Centre for Taxation (NoCeT) at the Norwegian School of Economics (NHH), an ENGAGE.EU partner university of the University of Mannheim.
Schneider is one of 11 fellows funded by the DAAD in the category of social sciences and humanities. A list of all current grantees can be found at https://www.daad.de/de/studieren-und-forschen-in-deutschland/stipendien-finden/prime/prime-fellows-202021/.
About the PRIME program:
Since 2014, the DAAD has been supporting international mobility in the postdoctoral phase through the Postdoctoral Researchers International Mobility Experience (PRIME) funding program by offering temporary positions at German universities instead of traditional fellowships. The funding comprises a 12-month phase abroad and a six-month integration phase at a German university, where the grantees are employed as postdoctoral researchers for the entire funding period. PRIME is funded by the German Federal Ministry of Education and Research (BMBF) and the European Union (FP7/Marie Curie Actions/