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Abstract The paper analyses the potential of the hydrogen economy in German districts and cities. The paper focuses particularly on regions suffering from strong ongoing structural change. The assessment is based on quantitative indicators for the supply structures (renewable energy, pipeline network), the demand side (industry, transport and heat), and on regional knowledge (research institutions and projects). The results show four regional clusters suffering from structural change that could potentially establish a hydrogen economy. These regions will benefit from investments in hydrogen structures and the associated strengthening of regional value chains.

Abstract Elite higher education institutions are notable for developing a significant number of graduates who assume leadership positions. This highlights the importance of integrating the two fields of elite education and leadership education. This paper seeks to address the central questions of how leaders will be cultivated and what elite higher education institutions will look like in 2030. To explore these inquiries, a case study was conducted at a German graduate school using the future workshop methodology. The process involved four creative workshops and an online survey, employing both top-down and bottom-up approaches. Through this participatory process, an image of the future of an elite graduate school for leadership in 2030 was developed. This image can serve as a starting point for contemporary higher education institutions to prepare themselves for and actively contribute to shaping a promising future.

Abstract The continuous changes in the business environment require transformation processes and innovation in organizational structures to maintain competitiveness. Innovation is required for future orientation and need an appropriate leadership style to be implemented in the company successfully. Various studies in the literature examine the topic of change models and the requirements for effective implementation of changes. Based on the constant change in the labor market, which is due to ongoing digitalization, the need for research of transformation, change-management and radical or disruptive innovation remains topical. A new challenge arises with a transformation in the entire company which affects all essential business processes. Because several levels are simultaneously affected by the transformation process, a more complex concept is required for the implementation than it could be found in the literature. There is a lack of empirical research in general for innovation-driven transformation processes and a missing connection to the implementation of radical or disruptive innovation in company. The aim of this paper is to investigate the need for new research in change theory. The focus is on the importance of innovation leadership for a radical or disruptive innovation change process, what is to be classified under a comprehensive transformation process in the company. In addition, the need for an innovation transformation model is established.

Abstract Innovative start-ups are characterised by a high level of risk for several reasons. Venture capital (VC) enables start-ups to develop their ideas into innovations and lowers the risk of failure. This form of financing is an essential component in the global competition. This paper aims at examining the German VC market with regard to its investments and framework conditions. The framework conditions that influence VC transactions are, on one end of the spectrum, the political and regulatory environment and, on the other, the innovation climate such as societal attitudes towards entrepreneurial and opportunity risk. The paper concludes with some important policy implications.

Abstract The paper criticises interpretations of the interest rate as a price. Prices are exchange ratios for different objects; the interest rate is a parameter characterising an intertemporal exchange ratio but is not itself an exchange ratio. Therefore, negative (real) interest rates can arise naturally without policy interventions. Interpretations of the interest rate as a rental rate for capital are shown to be untenable when there are many goods. The paper also sketches the historical background of the discussion, in particular, the English classical economists and Marx, the neoclassical model of Clarke and Wicksell, and Joan Robinson’s criticism of this model.

Abstract Digitalisation is bringing about far-reaching changes for the economy and society. Against this backdrop, the Federal Ministry for Economic Affairs and Energy published a concept paper for a regulatory action programme to support the digital transformation in December 2020 as part of the Federal Government’s implementation strategy “Shaping Digitalisation”. Its core thesis is that the basic ideas of regulatory policy remain valid in the digital economy. Its principles are still pillars of the social market economy today and can provide clear orientation for economic policy in the future in an increasingly digital economy. One of the paper’s approaches to the implementation of a digital regulatory policy is examined in more detail: the data- and evidence-based further development of economic policy.

Abstract In October 2020, the ECB published the foundational paper on the digital euro. In spring 2021, it surveyed individuals and companies on these proposals, the results of which were published in April 2021. This paper compares the design proposals with the survey results as well as the activities of competitive systems. It shows that important aspects remain unresolved. The survey showed that global payment capability is an urgent desire. Easy-to-use ‘onboarding’ without IBAN is also expected. Another goal should be the independence of European payments from third-party intervention, as was the case in the Iran-U.S. conflict. A reform of the correspondent banking network via SWIFT with a centralisation of balance settlement could possibly deliver results as good as those of the ECB’s digital money.

Abstract Even on the 30th anniversary of German unity, there is still a lot of talk about East-West differences. Typically, these differences are attributed to different political systems, which have created different impressions. As a result of the division of Germany in 1949 into the GDR and the Federal Republic as well as the reunification in 1990, a lively interest in the social sciences has developed as they offer a unique framework for analysing the effects of communism. Never before has such an unexpected introduction and abolition of a communist regime occured on the territory of a previously and subsequently united country. This paper looks into the history of East-West differences and argues that the division and reunification of Germany are nonetheless not a simple “experiment” from which one can directly deduce the effects of communism. The paper finds that the populations of East and West Germany already differed before the division, that the GDR and FRG were unequally affected by the Second World War, and that selective East-West migration took place during the division. Nevertheless, the remaining East-West differences are not necessarily permanent.

Abstract Facing increasing interregional and international competition, the need for innovating economic and socio-institutional structures is virulent. One possibility is establishing clusters to promote the idea that developing a network of companies with a mix of cooperative and competitive practices leads to competitive advantages for the respective area. Organizing clusters means developing a cluster culture, a communication strategy and a selection criterion for creating the desired mix of companies. We base our opinion paper on an extensive literature review of scientific sources about clusters, cluster policy and Place Leadership. We reveal that the prevailing cluster policy often does not lead to sustainably successful clusters. We conclude that we need a shared vision among cluster members to develop resilient clusters. Shared visions create a sense of belonging, social identity, and internalization of values and attitudes. This way, it is possible that a sustainable and trust-oriented network structure can develop, and knowledge spillovers within the cluster, necessary for resilient clusters, can occur. True Place Leadership is crucial to deal with the needed diversity of actors and stakeholders, some of whom are in competition, inspiring, motivating, and guiding shared, cooperative, and collaborative ways of working. Employing Place Leadership can outperform current policy measures in other regional, industrial and structural areas and might even make them redundant.

Abstract While populism remains rife in Europe, the continent is facing a new refugee dynamic. In the aftermath of the 2015–16 crisis, the EU is grappling with how to better address the challenges posed by Ukrainian immigration. Geopolitical changes and rising global inequality will further increase immigration in the future. It is often argued that immigration promotes populism and support for far-right parties, which can lead to political instability and disunity. This paper examines the relationship between regional differences in the 2015–16 refugee crisis and the success of the AfD in the 2017 federal election.

Abstract Based on a recent empirical study, validated with other data sources, this paper shows that users’ experiences with the 9-Euro-Ticket were positive overall. The ticket has led to a significant shift in demand from cars to buses and trains and to an activation of non-customers. The effects of the successor ticket (2023) are expected to be lower.

Abstract At first glance, risk management appears to be a topic original to business economics. However, global crises such as the international financial and economic crisis, the COVID-19 pandemic or the Russian war of aggression on Ukraine as well as the resulting energy policy issues show that governmental risk management needs to be systematically integrated into the political decision-making process. This paper aims to sensitise decision-makers in politics and society to the need for state risk management and to identify instruments and institutions that, taken together, could be capable of reducing the current “risk blindness” in order to further develop the Federal Republic of Germany into a “robust state” from a risk management perspective.

Abstract So far, it is unclear who will get how much gas at what price in a gas shortage situation in Germany when the regulator has to ration. This threatens to dilute incentives in and in advance of a shortage. This paper looks at the potentially helpful role of a market for gas usage certificates for allocation and pricing in a shortage situation.

Abstract The European fiscal rules are to be reactivated in 2023 or 2024. In their current form, they pose a significant threat to economic recovery and the investment urgently required to achieve climate neutrality. This paper makes proposals to create more economically sound fiscal rules. In the long term, the Maastricht criteria should be replaced by a more comprehensive set of indicators. Right now, the existing investment clause should be broadened to the extent that the deficit rule becomes a (green-)golden rule. Furthermore, the structural deficit rule should be replaced by an expenditure rule. Estimations of the structural deficit are prone to huge revisions and the current set of fiscal rules led to harmful pro-cyclicality during the euro crisis.

Abstract According to the judgement of the highest constitutional court in Germany in 2018, German states were committed to develop new property tax models in conformity with the constitution. Five states passed new laws last year, which choose the technical size of the plot fort he tax base instead of the value of the property, including buildings. The paper presents the models followed by an evaluation. The final statement refers to an alternative: the substitution of the traditional property tax with a share of the federal income tax and the sales tax for the communities. This alternative offers a simple and quick solution.

Abstract In its coalition agreement, the German government proposes a reorganisation of the rules of earned income to be considered as a means test of basic income. In doing so, it takes up a frequently voiced criticism of the design of the basic income support for job-seekers under Book II of the Social Code. In recent years, researchers have called for a strengthening of (monetary) incentives to work, especially to take up employment with higher weekly working hours. In this paper, we summarise potential effects of such a reform on labour supply, the income distribution and the government budget in the context of a complex welfare system characterised by a high level of benefit non-take-up.

Abstract This paper presents a new facet of the regional forecasts of the Institute for Employment Research (IAB). For the development in 2022, we report results at the level of administrative district types of the Federal Institute for Research on Building, Urban Affairs and Spatial Development (BBSR). Overall, the forecasts for 2022 suggest a return to the regional disparities that already existed before the pandemic with regard to the development of unemployment and employment. While there are no major differences between the administrative district types in the unemployment forecast, the expected growth in employment increases in cities and urban areas compared to the previous year, but stagnates in the case of the two rural structural types.

Abstract This paper sheds light on the wage structure of foreign and German employees who are subject to social security contributions in fulltime employment and focuses on the experience structure. Existing evidence suggests that additional labour market experience is rewarded less for migrants than for their German counterparts. We identify and discuss reasons and explanations for migrants’ flat experience curves, which is particularly important in the light of the debate on inequality between both groups. These explanations include: the recognition of vocational training degrees, the successful passing of vocational training in Germany, German citizenship by naturalisation, and the labour market experience. After ten to 15 years in the German labour market, we identify convergence in the returns to labour market experience.

Abstract In this paper, we use a macroeconomic model to evaluate two reform proposals that, first, abolish the exemption from social security contributions for marginal employment (“mini jobs”) and, second, reduce social security contributions for low-income earners. Specifically, the first reform proposal lowers social security contributions for individuals with a gross income of less than 1,300 euro per month. The second reform proposal extends the relief to individuals who earn less than 1,800 euro per month. The main findings show that the second reform proposal leads to substantial relief for low income individuals and incentivises unemployed, marginal employed and parttime employed households to increase their labour supply. While there are already positive shortterm effects on employment, the second reform proposal increases longterm employment by 68,900 full-time equivalent units and the ensuing positive effect on employment and productivity is beneficial for the economy, the society, and for fiscal balances.

Abstract The European Union’s top climate policy objective is to fully decarbonise its member states’ economies by 2050, i. e. to achieve climate neutrality in all sectors that currently still depend on fossil fuels. This is fully reflected in the EU Commission’s political agenda under the heading “European Green Deal”. In order to achieve climate neutrality by 2050, the EU’s previous intermediate CO2 reduction target was recently tightened from a 40 % to a 55 % reduction by 2030. In its “Fit for 55 Program”, which was announced on 14 July 2021, the Commission proposed comprehensive reforms of the EU’s emissions trading system, the Renewable Energies Directive and the Energy Tax Directive to fully implement the European Green Deal. This paper provides a critical assessment of the proposed measures.

Abstract The economic consequences of the war in Ukraine are taking a toll on goods prices in Germany and elsewhere. Prices on energy inputs to production, heating and mobility have risen sharply as well as food prices. As a possible policy response to these rising prices, the reduction of the VAT to zero on basic food is being discussed. In the debate many counter-arguments like the pass-through rate, the distributional effects and the financing have come up. In this paper, I argue that these points of critique hardly stand up to closer scrutiny. Both theoretical and practical arguments suggest that reducing the VAT to zero is an appropriate measure to mitigate inflation and provide relief.

Abstract Regulatory efforts to introduce effective intramodal competition to the rail sector, in particular to the long-distance intercity market segment, have so far achieved only very limited success in most countries. Germany is a case in point. Even 25 years after the fundamental 1994 ‘rail structure reform’, which eliminated the legal network monopoly of the former Deutsche Bundesbahn (DB), the combined market share of all competitors for long-distance passenger services remains stuck at “significantly below one per cent” (Bundesnetzagentur 2018, 22). This figure stands in stark contrast to the competitors’ market shares of some 26% for short-distance (regional) services — where a competition for the market regime has been established — and around 50% of the rail cargo segment — which is governed by an open access regime. In this paper, we make the case for an alternative regulatory regime to substantially increase effective intramodal competition in the intercity rail passenger market. Our proposal addresses, and helps to overcome, the two major entry barriers faced by competitors: the massive investment needs in rolling stock on the one hand and reliable infrastructure access on the other.

Abstract This paper compares the economic programmes of 23 OECD countries with that of Germany. It focuses on monetary and fiscal policies, income support and stimulus, labour market policies and other government programmes in areas such as infrastructure, health, education and climate protection. In comparison, Germany looks well placed in protecting employment and income, albeit without a clear anti-poverty focus. However, it lacks a clear vision of the kind of post-Corona economy it wants to achieve.

Abstract This paper examines new options regarding interdisciplinary perspectives on the history of economic reconstructions in post socialist Eastern Germany after 1990, mostly connected to the muchdebated Treuhandanstalt (Trusteeship Agency). By discussing different narratives, a brief, abstract framework is presented by highlighting longterm structural changes, shortterm disruptions, midterm dynamics as well as framing cultural reflections on an individual or collective level. These patterns could help to build heuristic bridges between different disciplines (like social sciences, economics, or history) in this re-emerging scientific area and to embed this research in broader themes on a European or even global scale.

Abstract A total of 3.2 million people in Germany have been fully immunised so far. However, in order to achieve herd immunity, which is likely to require an immunisation rate of around 80 % due to the highly infectious mutants, approximately 65 million people need to be vaccinated. The current “imbalance” in the vaccination campaign is largely due to the limited supply of vaccines. Since J&J’s vaccine has recently been approved by the EU and additional production facilities are available, it is foreseeable that the capacities of the vaccination centres will no longer be sufficient. Moreover, at some point the existing unwillingness to vaccinate could become the final bottleneck in reaching herd immunity. This paper provides some calculations for these relationships. Against this background, it is questionable how well-prepared the present system is to cope with these foreseeable problems.

Abstract The paper at hand presents the development of offshore wind energy with a focus on the North Sea Region (NSR) and its dominant countries. The article analyses not only the shift to Asia in terms of offshore energy but also a structural shift inside the NSR that is disadvantageous to Germany. As an example of longterm planning within the market, the article quantitately examines the new challenge of decommissioning offshore wind installations embedded in two major cycles arising in the next decade. Moreover, the level of preparation in the respective countries is critically discussed. Open questions about adapting to the challenges arising from decommissioning are highlighted and potential answers are presented.

Abstract Europe is said to be in a trust crisis. The finance crisis and the euro crisis caused a wide-ranging and sustained loss of trust and the media suspected this to be the culmination of a long-term trend. This may be true for the United States but not for Europe. Trust in Europe recovered within a decade, but with significant regional differences. While trust in democracy is not at all endangered in the EU’s northern and central countries, it could be at risk in the southern and the eastern ones. The paper shows that the problems in the East are exaggerated and may turn out as transitory, while the political instability in the South is more risky. Due to the fact that almost all member countries manifest a relatively high trust in the EU and a strong resolve to remain, these problems are unlikely to put European democracy at risk.

Abstract The paper discusses the real returns of German and Austrian households of different financial wealth groups in times of ultra-low interest rates. While returns decreased across all groups, the decline is rarely claimed, at least so far. Moreover, it is shown that — contrary to popular belief — rich households are particularly affected, although their returns today are still higher than those of the poor. While the general developments are similar, the yield level in Austria is consistently lower than in Germany. Overall, the asset structure is key for the results. Economic policy should therefore aim at a higher diversification of assets, especially for the poor, by effectively improving financial education.

Abstract How do we define what technology is for humans? One perspective suggests that it is a tool enabling the use of valuable resources such as time, food, health and mobility. One could say that in its cultural history, humanity has developed a wide range of artefacts which enable the effective utilisation of these resources for the fulfilment of physiological, but also psychological, needs. This paper explores how this perspective may be used as an orientation for future technological innovation. Hence, the goal is to provide an accessible discussion of such a psychological perspective on technology development that could pave the way towards a truly human-centred digital transformation.