Firing the Furnace? - An Econometric Analysis of Utilities' Fuel Choice

This paper attempts to predict the potential effects of CO2 emissions trading on fuel choice in the German electric power industry. By analyzing panel data (1968-1998) of major utilities, we show that the fuel mix of electric utilities is price inelastic. As a consequence, the implementation of a CO2 trading scheme will, if anything, only slightly induce interfuel substitution. Accordingly, low-carbon fuels will hardly replace lignite and hard coal through CO2 emissions trading, as long as abatement targets are not extremely ambitious. However,one cannot rule out that fuel prices may become more important for the utilities' fuel mix as a result of deregulation in the German power sector

West-East Convergence in the Prevalence of Illicit Drugs: Socioeconomics or Culture?

In contrast to West-Germany, illicit drugs were virtually absent in the East-Germany until 1990. Yet, after the collapse of the former GDR, East-Germany was expected to encounter a sharp increase in the prevalence of substance abuse. By analyzing individual data, we find that East-Germany largely caught up with West-Germany?s ever-growing prevalence of illicit drugs within a single decade. We decompose the west-east difference in prevalence rates into an explained and an unexplained part using a modified Blinder-Oaxaca procedure. This decomposition suggests that the observed convergence is just weakly related to socioeconomic characteristics and therefore remains mainly unexplained. That is, West- and East-Germans seem to have become more alike per se. We conclude that both parts of the country have converged in terms of the culture of drug consumption

Price Elasticities and Social Health Insurance Choice in Germany: A Dynamic Panel Data Approach

In 1996 free choice of health insurers has been introduced in the German social health insurance scheme. Competition between insurers was supposed to increase efficiency. A crucial precondition for effective competition among health insurers is that consumers search for lower-priced health insurers.We test this hypothesis by estimating the price elasticities of insurers? market shares. We use unique panel data and specify a dynamic panel model to explain changes in market shares. Estimation results suggest that short-run price elasticities are smaller than previously found by other studies. In the long-run, however, estimation results suggest substantial price effects

Small Cash Rewards for Big Losers Experimental Insights into the Fight Against the Obesity Epidemic

We complement the empirical evidence on the sustainability of weight loss achieved through cash rewards and, for the first time, rigorously examine the potential of cash rewards to prevent weight cycling. In a three period randomized controlled trial, about 700 obese persons were first assigned to two treatment groups, which were promised cash contingent on the achievement of an individually assigned target weight, and to a control group. Successful participants were subsequently allocated to two treatment groups offered cash rewards for confirming the previously achieved target weight and to a control group. This is the first experiment of this kind that finds effects of weight loss rewards up to 18 months after they were removed. Additional rewards only significantly improve the sustainability of weight loss while they are in place.Die empirische Analyse untersucht zum einen die Nachhaltigkeit einer Gewichtsreduktion, die mittels Geldanreizen erzielt wurde, und zum anderen die Wirksamkeit von Geldanreizen zur Verhinderung des Jo-Jo-Effekts nach einer erfolgreichen Gewichtsreduktion. In einem drei-phasigen Feldexperiment wurden ca. 700 fettleibige Teilnehmer zunächst zufällig auf zwei Anreizgruppen und einer Kontrollgruppe verteilt. Unabhängig von der Gruppenzugehörigkeit sollten ein individuelles Gewichtsreduktionziel erreicht werden, wobei nur Mitglieder der Anreizgruppen eine Geldprämie für das Erreichen des Zieles erhalten konnten. Erfolgreiche Teilnehmer wurden danach erneut zufällig einer Kontrollgruppe und zwei Anreizgruppen zugewiesen, wobei das Halten des Zielgewichts nur für letztere durch eine Geldprämie inzentiviert wurde. Anders als in früheren Experimenten, können Effekt der Abnehmprämie selbst 18 Monate nach ihrem Auslaufen nachgewiesen werden. Monetäre Anreize zur Verhinderung des Jo-Jo-Effekt wirken hingegen nicht über ihr Auslaufen hinaus

The Causal Impact of Fear of Unemployment on Psychological Health

We analyze the effect of job insecurity on psychological health. We extend the group of people being affected to employees who have insecure jobs to account for a broader measure of the mental health consequences of potential unemployment. Using panel data with staff reductions in the company as an exogenous source of job insecurity, we find that an increase in fear of unemployment substantially decreases the mental health status of employees. Quantile regression results yield particularly strong effects for individuals of already poor mental health.Das vorliegende Papier untersucht den Effekt von Arbeitsplatzunsicherheit auf die psychische Gesundheit. Im Gegensatz zu früheren Untersuchungen wird dabei nicht nur tatsächlicher Arbeitsplatzverlust betrachtet, sondern der Effekt subjektiver Arbeitsplatzunsicherheit ins Zentrum der Analyse gerückt. Damit wird ein breiteres Spektrum möglicher Effekte von Arbeitsplatzunsicherheit auf die mentale Gesundheit beleuchtet. Die empirische Analyse von Paneldaten aus Deutschland, die unternehmensspezifischen Arbeitsplatzabbau als exogene Determinante subjektiver Arbeitsplatzunsicherheit nutzt, zeigt dass vermehrte Furcht vor Arbeitsplatz eine deutlich verschlechterte psychischen Gesundheit nach sich zieht. Die Ergebnisse von Quantilsregressionen deuten zudem darauf hin, dass sich Jobangst in besonderem Maße negativ auf Arbeitnehmer auswirkt, deren mentaler Gesundheitszustand bereits angegriffen ist