In this paper, I challenge the notion that women prefer larger governments than men which is why extending the franchise to women has led to an increase in government spending in many industrialized countries. I estimate the average treatment effect of being female on support for government...

Whether democracy or capitalism should have normative priority depends on the philosophical point of view but also how both are defined. The more relevant perspective is, however, the positive one. Formally, politics dominate, but the economy often dominates de facto because political decisions...

This paper examines how trade liberalization affects investments in R&D at the firm level. We provide a model with entrepreneurs differing in their wealth endowment, causing them to rely differently on external funds. In the presence of capital market imperfections, this implies heterogeneous...

A (conservative) test is constructed to investigate the optimal lag structure for forecasting realized volatility dynamics. The testing procedure relies on the recent theoretical results that show the ability of the adaptive least absolute shrinkage and selection operator (adaptive lasso) to...

Using data from the German Socio-Economic Panel, this paper analyses the effects of spending part of adolescents’ leisure time on playing music or doing sports, or both. We find that while playing music fosters educational outcomes compared to doing sports, particularly so for girls and...

This paper presents a dynamic North-South general-equilibrium model where households have non-homothetic preferences. Innovation takes place in a rich North while firms in a poor South imitate products manufactured in North. Introducing non-homothetic preferences delivers a complete...

In response to recent negative publicity within and outside the economics profession, the Verein für Socialpolitik instituted a Code of Ethics for its members in 2012. The Code is based on central three principles of transparency, objectivity, and fairness. This essay presents a rationalization...

This paper discusses identification based on difference-in-differences (DiD) approaches with multiple treatments. It shows that an appropriate adaptation of the common trend assumption underlying the DiD strategy for the comparison of two treatments restricts the possibility of effect...

Rapach et al. (2013) have recently shown that U.S. equity market returns carry valuable information to improve return forecasts in a large cross-section of international equity markets. In this study, we extend the work of Rapach et al. (2013) and examine if U.S. based equity market information...

In this note, we show that the OLS and fixed-effects (FE) estimators of the popular differ-ence-in-differences model may deviate when there is time varying panel non-response. If such non-response does not affect the common-trend assumption, then OLS and FE are consistent, but OLS is more...