The key assumption of normally distributed error terms is usually not tested in empirical practice when using ordered probit models. Therefore, an artificial regression version of the LM test against the class of Pearson distributions is derived that can be implemented more easily than the...

We empirically document deviations of residential real estate prices from fundamental values at the micro level and investigate their relationship with local bank lending growth during a period of unconventional monetary policy. Our findings indicate a positive relationship between credit growth...

A modified dynamic model averaging framework, which allows for inferences regarding the shifting relevance and significance of explanatory variables, is employed to evaluate the in-sample performance of exchange rate models. This analysis is based on a set of 16,384 model specifications derived...

While significant attention has been dedicated to sanctions episodes among major economies which usually rely on a diverse set of trade partners, little is known about the impact of sanctions imposed by senders on economies highly dependent on them. Using Ukrainian export data for 2009-2019 at...

Geographic neighbors of sanctioned countries (targets) may suffer from indirect effects of sanctions or benefit by helping targets circumvent restrictions. I study the effects of sanctions on trade among neighbors and targets using data from BACI for 2002-2022 and separately accounting for...

We empirically document that the effectiveness of the German rent control introduced in 2015 in achieving rental housing affordability is limited. Exploring the reasons for this limited effectiveness we focus on the impact of the rent control on the yield on rental housing investments proxied by...

While illicit capital flight is a major concern of policy makers in developing countries, there is only little research on the possible link between capital flight and development aid. In this paper, we address the issue for Nepal, a stereotypical financially-closed developing economy that is...

The former EU president Jean-Claude Junker has proposed that all countries of the European Union should also adopt the euro as their currency and recent research has shown that countries currently pursuing this goal indeed fulfill the classical Optimal Currency Area (OCA) criterion of positively...

Overcoming long-term unemployment is a challenging task in which trust of the long-term unemployed in their caseworkers is a key issue. However, research about drivers of this trust is a white spot in the literature. The paper closes this gap. Embedded in a theoretical model at the...

We provide an early assessment of the Juncker Commission's contributions to the ongoing reform of the euro area. In doing so, we present a chronological summary of the reform process up to 2014. At the time, the euro area architecture had undergone many changes. These were mainly focused on risk...