Research
Real estate | Real Estate Services | Residential real estate | Real property tax | Real estate market
Municipalities in Germany in which most residents live in rented accommodation often impose higher property taxes.

The local multipliers for the German property tax B, which is levied on residential real estate property by the municipalities, can vary greatly from region to region. Under otherwise comparable conditions, property in municipalities where most residents are home-owners is taxed at a lower rate than in municipalities where most residents live in rented accommodation. These are the findings of a joint study carried out by the Centre for European Economic Research (ZEW) in Mannheim and the University of St. Gallen.

Dates and News
Student competition | Start-Up | Innovation | ZEW | YES! - Young Economic Summit

Daniel Günther, Minister President of Schleswig-Holstein, announced the winners of the German economics competition YES! – Young Economic Summit 2017: The student team from BBS Wirtschaft 1 Ludwigshafen won the vote for the best solution and brought home the 2017 YES! Award.

Comment
European Union | Reform | Germany | France | European Integration | Eurozone

French President Emmanuel Macron has laid out his vision for reform of the European Union and the Eurozone. In his speech, he called for Europe to strengthen its efforts in the fields of defence policy, common border management and development aid. Furthermore, Macron emphasised the need to harmonise tax and social policies and to shift competencies to the EU in these fields. As expected, he proposed once again to introduce a common budget for the Eurozone and a European finance minister. Professor Friedrich Heinemann, head of the Research Department “Corporate Taxation and Public Finance” at the Centre for European Economic Research (ZEW) in Mannheim, comments on Macron's speech.

China Economic Panel
China | Cyclical indicator | Short-term forecast | Greater China | Business survey | China Economic Panel
In September, the CEP Indicator continued its rise and stands currently at 8.3 points.

According to the most recent survey for September (6–20 September 2017), the economic outlook for China has improved again, rising by 8.3 points. The CEP Indicator, which reflects the expectations of international financial market experts regarding China’s macroeconomic development over the coming twelve months, currently stands at 8.3 points (August 2017: 0.0 points), coming in once again slightly above the long-term average of 5.1 points.

Comment
Competition authority | Competition | Merger control
The supervisory board of the now insolvent airline Air Berlin agrees to the divestment process.

The supervisory board of Air Berlin, which recently declared insolvency, today decided to continue negotiations with Lufthansa and budget airline Easyjet regarding the sale of the airline. The negotiations are expected to last until 12 October. Partial sales of the airline are a possible outcome. Professor Achim Wambach, PhD, president of ZEW and chairman of the Monopolies Commission, offers his view on the negotiations.

Comment
Federal Reserve Bank | Interest Rate | Interest rate policy | United States | Monetary Policy | Monetary policy decisions

The US Federal Reserve decided to keep its benchmark rate in a range between 1.0 and 1.25 per cent in September 2017. At the same time, the Fed announced that it will start shrinking its $4.5 trillion balance sheet in October. With the interest rate outlook remaining unchanged, another rate hike is likely to happen this year. Professor Friedrich Heinemann, head of the “Corporate Taxation and Public Finance” Research Department at the Centre for European Economic Research (ZEW) in Mannheim, comments on the Fed's latest decision.

ZEW Indicator of Economic Sentiment
ZEW Indicator of Economic Sentiment | Business survey | Germany | Business Cycle | Short-term forecast | Cyclical indicator | Business cycle research | ZEW Financial Market Survey
ZEW Indicator of Economic Sentiment for Germany, September 2017

The ZEW Indicator of Economic Sentiment for Germany improved in September 2017. Climbing 7.0 points compared to the previous month, the indicator now stands at 17.0 points. The indicator, however, still remains below the long-term average of 23.8 points.“The solid growth figures in the second quarter of 2017 in combination with a steep rise in bank lending and increasing investment activities by both the government and private firms are likely reasons for the financial market experts’ significantly more positive outlook compared to that of last month. Their expectations are further corroborated by stable global economic development. The German federal elections do not seem to have been a source of uncertainty. The worries about the recent strengthening of the euro has, for now, also faded into the background,” comments ZEW President Professor Achim Wambach.

Comment
European Union | Eurozone | European Integration and EU Policy | EU Commission

In his address, President of the European Commission Jean-Claude Juncker has called for the introduction of the euro in all EU Member States. Professor Friedrich Heinemann, head of the "Corporate Taxation and Public Finance" Research Department at the Centre for European Economic Research (ZEW) in Mannheim, comments on Juncker's proposal for non-eurozone countries to join the EU's common currency.

Comment
Monetary policy decisions | Interest Rate | Interest rate policy | Monetary Policy | ECB
In August 2017, the ECB decided to leave its base rates unchanged, with the headline deposit rate remaining at minus 0.4 per cent and the marginal lending rate at 0.25 per cent.

As expected, the European Central Bank (ECB) announced today that, once again, it would not be adjusting its base rates, nor would it be making any changes to its outlook on interest rate policy. The outlook on the bond purchase programme remains equally unchanged from July’s communiqué, as the ECB confirmed the programme’s continuation. Professor Friedrich Heinemann, head of the Research Department “Corporate Taxation and Public Finance” at the Centre for European Economic Research (ZEW) in Mannheim, offers his view on the ECB’s decision:

Research
Consumer goods industry | Film industry | Competitive strategy
The decision to reschedule a release date tends to increase overall sales in the United States – this is, however, no guarantee for a star on the Hollywood Walk of Fame.

The release date of a movie in the United States is likely to be changed when competition is particularly high due to a number of other high-quality movies that are set to hit screens in the same week. In this context, competition from movies by the same director or within the same genre have the greatest influence on box office revenue. If competition is high, the decision to reschedule the release of a movie tends to increase its overall sales by up to six million dollars compared to the sales the movie would have generated with its original release date. These are the results of a study by the Centre for European Economic Research (ZEW), Mannheim, on competitive effects in product niches regarding the timing of product releases of so-called experience goods.

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