Latest Press Releases

Due to their cost efficiency, environmental taxes are usually an important means to provide incentives for environmentally friendly economic activity. However, the ecological tax reform in Germany does not fulfil this objective. The compensation scheme for the manufacturing industry included in the law considerably restricts the incentive to save energy or to reduce pollution, and further makes environmental protection unnecessarily expensive from a macroeconomic perspective. In the case of “newly-founded” (after 1998) businesses in the manufacturing industry, the ecological tax reform even works against one of its main objectives, namely to encourage companies to create jobs, by facilitating dismissals. These are the findings of a current analysis by the Centre for European Economic Research (ZEW) in Mannheim.

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A current study carried out by the Centre for European Economic Research (ZEW) in Mannheim in collaboration with the Otto Beisheim School of Management (WHU) in Koblenz analyses the reasons for the considerable differences in the number of stadium goers in the German Bundesliga. The findings indicate that decisive factors are the team’s position in the table before a match, the weather, the reputation of the team, its fan base and how the fans are distributed geographically. For example, the current positions in the table have an important influence on the interest in a match. Whether the home team is at the top of the league or bottom placed before the match can mark a difference of up to 8,000 spectators per match under otherwise equal conditions. Furthermore, the weather and the catchment area of the home team are of importance. A temperature difference of 10° C can result in 2,200 stadium goers more/less per match under otherwise equal conditions. Per 100,000 inhabitants within the catchment area, the home team can expect about 800 stadium goers.

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The gross hourly wage of women in the western Länder depends on their working hours. For instance, women working less than 20 hours per week have to accept significant wage cuts. By contrast, in the case of women working between 20 and 38 hours per week no significant wage gaps could be determined. This is the result of a current study carried out by the Centre for European Economic Research in Mannheim (ZEW) within the context of a research project on the flexibilisation of working time partly funded by the Fritz-Thyssen Foundation.

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An analysis of the tax structure of other European countries shows that – mainly due to historical reasons – property taxes are fairly common. For instance, in Denmark, France, the Netherlands, Spain, Switzerland, as well as in Luxembourg taxes are raised on property. In each case the property tax applies to natural persons, while in Switzerland and Luxembourg it additionally applies to legal persons. Despite the abolition of the property tax in 1997, the discussion about the implementation of such a tax apparently has not died down yet in Germany.

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In a current study, the Centre for European Economic Research (ZEW) in Mannheim analysed the costs of an early phase-out of nuclear energy in Germany. The study showed that the amount of costs mainly depends on how the government will set the date for the phase-out. For instance, it would be significantly more cost-saving to determine a set date for an ultimate shutdown than setting an equivalent maximum time limitation for the use of the 19 German active nuclear units. For example, if all nuclear plants were to be closed by 2019 at the latest, the adherence to the maximum time limitation would involve costs of DM 26 billion. By contrast, if 2019 was simply determined as a set date for the phase-out, the costs would merely amount to six billion marks (based on the prices of 2000, respectively) since this option allows for older nuclear reactors to remain in operation until they have come to the end of their economic life.

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The innovation activities in the German manufacturing and mining industries have further increased. In 1997, the share of innovative companies among all businesses in this sector has reached a level of 66 per cent, which makes an increase of 6 per cent as compared to the previous year. Despite a shrinking number of companies in the manufacturing and mining industries, the absolute number of innovative companies has increased and exceeded the 40,000 mark for the first time since 1992. These are the findings of the latest innovation survey carried out by the Centre for European Economic Research (ZEW) in Mannheim. For this representative survey, ZEW interviewed approximately 5,745 enterprises about their innovation activities in 1998 and projected the results for Germany. According to ZEW calculations, innovation expenditures have likewise increased considerably to 108 billion DM, reaching a 5.2 per cent share of the total turnover amount. The decline in innovation activity at the beginning of the 90s, partly as a result of cyclical developments, has thus been overcome.

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Innovation activities in Germany showed a generally stable trend in 1997. However, disparate developments are apparent in the individual sectors. Whereas in the modern services sectors – banks/insurances as well as technical, IT and consultancy services – innovation activities have intensified, the traditional sectors – retail and wholesale as well as transport – show a strong diminishing trend. This is the result of the latest innovation survey by the Centre for European Economic Research (ZEW) in Mannheim. For this representative survey, ZEW interviewed approximately 4,010 enterprises about their innovation activities in 1999 and projected the results for Germany. According to ZEW calculations, the share of innovative companies in the modern services sector in 1997 has reached 66 per cent and therefore lies considerably above previous year’s level (61 per cent). Innovation expenditures have likewise increased by 13 per cent to 26 billion DM.

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Ernst-O. Schulze, Director of Business and Administration at the Centre for European Economic Research (ZEW), Mannheim, celebrates his 60th birthday on Friday, 23 July 1999. As founding director of ZEW, he considerably contributed to the setting up and expansion of the institute to the extent that it has become one of Germany’s leading economic research institutes. Together with the former ZEW Scientific Director, Prof. Dr. Dr. h.c. Heinz König and the current President of ZEW, Prof. Dr. Dr. h.c. mult. Wolfgang Franz, he helped to convert ZEW into an economic research institute which the German Council of Science and Humanities recommended to include on the list of institutes ("Blaue Liste") jointly funded by the Federal Government and the Länder a few days ago. This kind of recognition of ZEW's excellent scientific reputation was probably the most pleasant birthday present for him to receive and a nice acknowledgement of his high level of personal commitment to ZEW throughout the past nine years as Director of Business and Administration.

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On July 19, 1999, the Minister of Finance of the Federal State of Baden-Württemberg Gerhard Stratthaus made an inaugural visit to the Centre for European Economic Research (ZEW) in Mannheim. After an interactive dialogue with the ZEW Board of Directors, Prof. Dr. Wolfgang Franz and Ernst-O. Schulze, the Minister obtained an overview of the key activities of the individual research departments. He was particularly interested in the Research Department "Corporate Taxation and Public Finance". Stratthaus wished ZEW the best success for the tasks that lie ahead since, according to him, the political sector hugely depended on scientific advice.

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At today's meeting in Würzburg, the German Council of Science and Humanities recommended the Centre for European Economic Research (ZEW) to be included on the "Blue List". On this occasion, ZEW President Dr. Wolfgang Franz gave the following statement at a press conference in Mannheim:

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