Kiel Institute for the World Economy

About: Kiel Institute for the World Economy is a facility organization based out in Kiel, Germany. It is known for research contribution in the topics: Foreign direct investment & Productivity. The organization has 318 authors who have published 1909 publications receiving 42832 citations. The organization is also known as: Institut für Weltwirtschaft an der Universität Kiel.

Subsistence, Substitutability and Sustainability in Consumption

Abstract: We propose a representation of individual preferences with a subsistence requirement in consumption, and examine its implications for substitutability and sustainability. Specifically, we generalize the standard constant-elasticity-of-substitution (CES) utility specification for manufactured goods and environmental services, by adding a subsistence requirement for environmental services. We find that the Hicksian elasticity of substitution strictly monotonically increases with the consumption of environmental services above the subsistence requirement, and approaches the standard CES value as consumption becomes very large. Whether the two goods are market substitutes depends on the level of income. We further show that the subsistence requirement may jeopardize the existence of an intertemporally optimal and sustainable consumption path. Our results have important implications for growth, development and environmental policy.

Economic impact of ocean acidification on shellfish production in Europe

Abstract: Ocean acidification (OA) is increasingly recognized as a major global problem. Despite the scientific evidence, economic assessments of its effects are few. This analysis is an attempt to perform a national and sub-national assessment of the economic impact of OA on mollusc production in Europe. We focus on mollusc production because the scientific evidence on the biological impact on calcifying organisms is ample relative to other types of marine organisms. In addition, Europe and its regions are significant producers of marine molluscs. By performing a partial-equilibrium analysis, we show that the highest levels of overall impact are found in the countries with the largest current production, such as France, Italy and Spain. For Europe as a whole, the annual impact will be over 1 billion USD in 2100. Due to the different production foci of the individual countries and their regions, the distribution of the impact is extremely uneven across countries and their respective regions, with the most affected sub-national regions being those on the Atlantic coast of France, which is an important region for oyster production.

More than just numbers: Suicide rates and the economic cycle in Portugal (1910-2013).

Abstract: Suicides are a major concern for public health first and foremost because they are an avoidable cause of death. Moreover, they can be an indicator of self-reported emotional satisfaction and a good marker of overall well-being. In this study we examine how different economic and social aspects affected Portuguese suicide rates for more than one hundred years (1910-2013). We place this exercise in the specific historical context of the XX and early XXI century in Portugal, emphasizing the role of economic recessions and expansions. Controlling for aspects like wars, health care availability, political instability, and demographic changes, we find a strong association between a decline in the growth rate of real output and an increase in suicide rates for the whole population. In this regard, while male suicide rates are non-negligibly influenced by economic downturns, female suicide rates are in general more responsive to a more open political and economic environment. Our results are robust if we consider the mid-term cyclical relationship. Our findings advocate that, during recessions, public health responses should be seen as a crucial component of suicide prevention.

Prospective NATO or EU Membership and Institutional Change in Transition Countries

Abstract: This paper quantifies the impact of incentives related to potential membership on institutional change as measured by the World Bank Governance Indicators (WBGI). Based on a panel of 25 transition countries for the period from 1996 to 2008 we show that pre-accession incentives provided by EU and NATO clearly matter for institutional development. In addition, path-dependency determined by cultural norms may be overcome by economic liberalization while foreign aid seems to hamper institutional development. JEL-Codes: F15, F20, F50, P20, P30, O19