We consider the problem of testing for a structural break in the spatial lag parameter in a panel model (spatial autoregressive). We propose a likelihood ratio test of the null hypothesis of no break against the alternative hypothesis of a single break. The limiting distribution of the test is...

This paper exploits a natural experiment in Hesse where a reform of the electoral rule from mayor appointment by the local council towards direct mayor elections was introduced during a phase-in period from 1993 to 1998. The end of the term of the last appointed mayor varies across...

Empirical work on the causal effect of government fragmentation finds diversified results. This might be explained by the fact that studies typically are settled in different institutional environments. To assess in how far the political system might shape the effects of fragmentation, this...

Creative accounting allows governments and, more particularly, finance ministers to somehow manage financial reports to achieve specific and possibly self-interested goals. It is usually used to hide deficits. It sometimes also helps to present financial performance as being more worrisome than...

Die Umsetzung von EU-Recht in die innerstaatliche Rechtsordnung kann die Haushalte von Bund und Ländern erheblich belasten. Um derartige finanzielle Auswirkungen zu ermitteln, werden die in Gesetzentwürfen veranschlagten Staatsausgaben für Rechtsakte der EU über einen Zeitraum von 30 Jahren...

We investigate the geographical concentration of representatives and the distribution of fiscal transfers both theoretically and empirically. We develop a model which predicts that funds to an area are positively correlated with the number of representatives residing in that area. Our empirical...

The positive association between trade openness and income has been debated over years due to serious estimation flaws prevailing in the cross-country empirical trade literature. The present paper contributes to this debate by re-examining the long-run relationship between trade openness and...

Die geplante Stärkung der Eigenverantwortlichkeit der Länder im Zuge der Föderalismusreformen wird zu einem erhöhten Bedarf an Konjunkturprognosen für Bundesländer führen. Während in Deutschland für die Konjunkturbeobachtung auf gesamtstaatlicher Ebene Quartalsdaten zur Verfügung...

Der Immobilienmarkt in Deutschland ist, auch im Vergleich zu anderen entwickelten Volkswirtschaften, nach wie vor in einer stabilen Verfassung. Beispielsweise ist die Zinsbindung bei Immobilienkrediten im Durchschnitt recht lang, so dass eine abrupt auftretende Überschuldung vieler Haushalte...