1. 15.11.2021 · ZEW (fbr/deg)
    Research
    Financial Markets | Money and Financial Markets | Inflation | Inflation rate
    It is not only consumers who are currently worried about rising inflation. Financial market experts also expect a higher inflation rate.

    The currently very high consumer price inflation rates in the euro area are expected to gradually decline over the next two years, but are projected to remain well above the ECB’s target of two per cent over this period. Disruptions in international supply chains, raw material shortages and high energy prices are expected to become less important drivers of inflation by 2023. On the other hand, the relevance of wage growth in the euro area for the experts’ inflation expectations has increased significantly compared to previous surveys, especially for the year 2022.

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  2. 11.11.2021 · ZEW (fhe/deg)
    Comment
    Inflation | Tax revenue estimation
    Picture of Professor Dr. Friedrich Heinemann.

    The German Federal Ministry of Finance’s Working Party on Tax Revenue Estimates presented the results of its new analysis today. According to the announced results, tax revenues will recover much faster from the pandemic in the coming years than previously assumed.

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  3. 11.11.2021 · ZEW (msf/deg)
    Research
    Digital Economy | Sovereignty | Competitiveness
    Diagram on the survey of the information economy and the manufacturing sector.

    Germany and Europe are lacking digital sovereignty. This jeopardises the ability of the German economy and its European partners to respond effectively to future challenges, to innovate and to remain competitive. This is the result of a study by ZEW Mannheim, which is based on a comprehensive evaluation of the existing literature and a representative company survey. On behalf of the Federal Ministry for Economic Affairs and Energy, ZEW researchers surveyed more than 1,200 companies from the information economy and manufacturing industry.

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  4. 11.11.2021 · ZEW (csp/deg)
    Research
    Tax avoidance | Tax planning | Tax fairness | Corporate taxation
    Coins standing in a glass on a wooden shelf.

    European companies will be obliged to disclose their country-related profits and income taxes in the form of so-called country-by-country reporting in the future. A corresponding draft directive was approved today by the Parliament of the European Union. The aim of the directive is to detect and curb tax avoidance practices. The announcement of a preliminary political agreement on 1 June 2021 to introduce such a directive had already led to noticeable reactions on the capital market: A current study by ZEW Mannheim, in cooperation with the University of Mannheim, identified cumulative average abnormal returns between ‑0.499 and ‑0.699 per cent for up to two days after the announcement. This corresponds to a cumulative loss in firm value of 48 to 65 billion euros.

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  5. 10.11.2021 · ZEW (pbo/bpe/deg)
    Research
    Research and Development | China
    Red Traditional Chinese building in front of blue sky.

    With the 14th Five-Year Plan, the Chinese government has set itself the ambitious goal of creating a more innovation-based economy and becoming the world’s leading nation in science and technology by 2050. To this end, gross expenditures on research and development (R&D) are targeted to grow by at least seven per cent annually between 2021 and 2025. There are plans to stimulate more R&D in companies through extensive subsidies and other policy incentives. However, this is not the end of the story. As a recent study by ZEW Mannheim shows, misappropriation of subsidies has been widespread in China in the past and has long stood in the way of efficient use of state funding. Therefore, as early as 2006, a seminal change in China’s innovation and industrial policy took place and numerous measures were introduced to improve funding instruments and curb their misuse. “Should such measures become even more effective in the future, China will turn into an increasingly innovative competitor on the world market and at the same time become more attractive as an R&D location for foreign companies,” says Dr. Philipp Boeing, China expert at ZEW, commenting on the results of the study.

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  6. 09.11.2021 · ZEW (awh/msc/fbr/deg)
    ZEW Indicator of Economic Sentiment
    ZEW Indicator of Economic Sentiment | ZEW Financial Market Survey | Business survey | Short-term forecast | Cyclical indicator | Business cycle research | Germany | Europe
    ZEW Index November 2011 stands at 31.7 points

    The ZEW Indicator of Economic Sentiment for Germany increased in the current November 2021 survey, climbing 9.4 points to a new reading of 31.7 points. This is the first time since May that the indicator has recorded a rise. The assessment of the economic situation in Germany has worsened again in the current survey, falling by 9.1 points to a level of 12.5 points.

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  7. 08.11.2021 · ZEW (awh/tko/rha)
     ZEW logo on the occasion of the 30th anniversary of the institution.

    The ZEW – Leibniz Centre for European Economic Research celebrated its 30th anniversary on Monday, 8 November 2021. Since its foundation in 1991, the institute has become one of the most important voices in economic research and policy advice. “Specialising in empirical microeconomics has been ZEW’s trademark from the very beginning. This means that we have always focused on people, firms and markets in our research and that we have also kept an eye on feasibility when providing advice,” says ZEW President Professor Achim Wambach. “All research departments have developed their own unique competencies and are internationally respected. At the same time, ZEW has recently expanded its research in the area of market design. Here, we address questions on how markets can be organised intelligently to ensure a competitive and sustainable economy in the long run.”

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  8. 05.11.2021 · ZEW (ibe/deg)
    Comment
    Digitisation | Coalition government | Digital Economy
    ZEW-Economist Irene Bertschek

    According to a report in the Handelsblatt, the so-called traffic light coalition partners SPD, FDP and the Greens, named after the traditional colours of the parties, have agreed not to create a digital ministry. Professor Irene Bertschek, head of the ZEW Research Department “Digital Economy”, has commented on that matter:

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  9. 04.11.2021 · ZEW (cgd/bch/deg)
    Research
    Energy efficiency | Building | Facility management | Climate protection | Tax Incentive
     Blue symbol for energy efficiency in buildings

    French policies to support households in refurbishing their homes for energy savings purposes differ considerably in terms of their cost-effectiveness. This is shown by a recent analysis by ZEW Mannheim. “The result is that the white certificates scheme (energy efficiency certificates involving energy suppliers) is the most cost effective,” explains ZEW researcher Dr. Claire Gavard, one of the authors of the study.

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  10. 03.11.2021 · ZEW (ssi/rha)
    Research
    Business tax | Innovation | Research and Development

    An increase in local business taxes has a negative impact on innovation in companies and economic growth in Germany. Higher taxes cause companies to reallocate their research and development (R&D) activities or abandon them altogether. As a result, the number of newly registered patents decreases, and with it the competitiveness in the market. This is the conclusion of an international team of researchers who examined how changes in local business tax rates slowed innovation over a 30-year period. “Higher taxation on companies leads them to reduce their investment in research and development, regardless of the company’s size. It is worthwhile for policymakers to take a closer look at this matter. So far, tax incentives for R&D have often been closely linked to the size of a company,” says Professor Sebastian Siegloch, head of the ZEW Research Department “Social Policy and Redistribution”. Under the Research Allowance Act implemented in Germany in 2019, all businesses conducting R&D have access to research allowances, which is a reasonable approach.

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