This paper discusses the consequences of population aging and a fundamental pension reform - that is, a shift towards more pre-funding - for capital markets in Germany. We use a stylized closed-economy, overlapping-generations model to compare the effects of the recent German pension reform with...

This paper estimates the effects of family background, resources and institutions on mathematics and science performance using an international database of more than 260,000 students from 39 countries which includes extensive background information at the student, teacher, school and system...

While the old systems competition took place with closed borders, globalisation has brought about a new type of systems competition that is driven by the mobility of factors of production. The new systems competition will likely imply the erosion of the European welfare state, induce a race to...

The paper compares the two standard forms of international investment in developing countries, debt and foreign direct investment (FDI), from a finance perspective. The sovereign risks associated with debt finance are shown to be generally less severe than the ones that come with FDI. FDI is...

The eastern enlargement of the EU resembles German unification in its momentousness. Whereas the latter led to a 26\% increase in the population of the Federal Republic, the former will increase the population of the EU by 28\% if all ten entry aspirants are accepted. A special problem will be...

The virtual economy argument for Russia suggests that barter allows the parties to pretend that the manufacturing sector is producing value added by enabling this sector to sell its output at a higher price than its market value. We confront this prediction with the actual pricing behaviour of...