Benjamin Weigert

Occupational Choice, Aggregate Productivity, and Trade

We propose occupational decisions of heterogeneous individuals as an alternative mechanism of explaining the distribution of firm productivities emphasized by empirical studies. Thus, we integrate the frameworks of Melitz (2003), and of Manasse and Turrini (2001) that establish the theoretical base of trade models with heterogeneous firms. Our model is technically much simpler than the Melitz approach while preserving the main results on firm-selection effects due to international market integration. Our approach paves the way for detailed analysis of institutions in a heterogeneous firm model to better understand the link between institutions and an economy’s productivity distribution.

Energiepolitik: Erfolgreiche Energiewende nur im europäischen Kontext

Abstract The German government’s adoption of the so-called Energy Concept in 2010 and its decision in the summer of 2011 to phase out nuclear energy altogether within the next ten years, has started a process of severe transformation of the German system of energy provision. Specifically, until 2050 renewables will have to become the dominant source of electricity generation. Disconcertingly, up to now the government has not outlined a comprehensive overall strategy how this objective should be achieved in practice. In this paper we discuss the necessary preconditions for a successful transformation in the German energy system. Overall cost of this transition could be held in check, if economic policy were to rely exclusively on a properly designed European Emission Trading System. Yet, instead of attempting to eliminate the remaining deficiencies of this already existing instrument, policy makers in Germany and all across Europe insist on devising additional subsidy schemes for renewables. We argue that the most sensible way to do this is by implementing a renewable support system that is harmonized across Europe. To this end, Germany should switch from current system of feed-in tariffs to a quantity-based system of Green Certificates and, in a second step, combine the German Green Certificate market with that of other European countries.

Globalization, technical change and the skill premium: magnification effects from human – capital investments

This paper shows that endogenous adjustments in the composition of labour supplies magnify the effects of changes in commodity prices on the measured skill premium under quite plausible conditions. These composition effects arise from decisions of individuals with heterogeneous inherent abilities about acquiring human capital. They reinforce the well-known Stolper – Samuelson effect on the measured skill premium in countries with a sufficiently high relative supply of skilled labour, but compensate them otherwise. As a result, the model can account for the observation of a worldwide increase in the skill premium during the last two decades.