This is a photo of a man calculating expenses.

Research projects

Vertical Tabs

Deutsche Forschungsgemeinschaft / German Research Foundation (DFG)

Deutsche Forschungsgemeinschaft / German Research Foundation (DFG)

European Research Council (ERC)

European Research Council (ERC)

ERC Starting Grant: Behavioral theory and economic applications

Project title:Behavioral theory and economic applications
Funding type: European Research Council (ERC) Starting Grant
Funding period:2012-2017
Research Team:Botond Kőszegi (Principal Investigator), Paul Heidhues (ESMT Berlin)
Cooperating institution:Kozep-Europai Egyetem (CEU), Budapest


The European Research Council (ERC) has bestowed a team of researchers including ESMT Professor and Lufthansa Chair in Competition and Regulation Paul Heidhues a starting grant for five years. The team, led by Professor Botond Köszegi of Central European University and Berkeley, will research “Behavioral theory and economic applications.” In particular, Professor Heidhues will explore the implications for market outcomes, welfare, and policy when consumers misperceive certain aspects of products or contracts. Established by the European Commission, the ERC encourages the highest quality research in Europe through competitive funding and supports frontier research across all fields on the basis of scientific excellence. In this year’s Starting Grant competition, the ERC received 4741 applications, from which only 11.3 percent early-career top researchers have been granted funding for their research projects.

Publications:

Heidhues, P., and B. Kőszegi (Forthcoming). Naivete-based discrimination. Quarterly Journal of Economics.
Heidhues, P., B. Kőszegi, and T. Murooka (2017). Inferior products and profitable deception. Review  of  Economic  Studies 84(1): 323–356.
Heidhues, P., B. Kőszegi and T. Murooka (2016). Exploitative Innovation. American Economic Journal: Microeconomics 8(1): 1-23.
Heidhues, P., and B. Kőszegi (2014). Regular prices and sales. Theoretical Economics 9(1): 217–251.

European Union

European Union

German Academic Exchange Service (DAAD)

German Academic Exchange Service (DAAD)

AIMS - ESMT Industry Immersion Program

Project title:AIMS - ESMT Industry Immersion Program
Funding type:DAAD University-Business-Partnerships between Higher Education Institutions and Business Partners in Germany and in Developing Countries
Funding period:2017-2020
Team at ESMT:Nick Barniville, Wulff Plinke
Cooperating institutions:African Insitute for Mathematical Sciences (AIMS)

ESMT Berlin and the African Institute of Mathematical Sciences (AIMS) have launched the Industry Immersion Program (IIP) to prepare African graduates to transition from an academic environment to an applied industry setting. The six-month IIP includes two academic modules to build business readiness skills as well as a 12-week internship with industry partners across Africa. Professors from ESMT faculty will be teaching pro bono, covering areas such as organizational behavior, corporate strategy, finance, and accounting. The pilot program has received funding support from the German Academic Exchange Service DAAD with funds from the German Federal Ministry for Economic Cooperation and Development (BMZ). The program starts with 30 master’s graduates. The launch of the IIP will coincide with the “G20 Africa Partnership – Investing in a Common Future,” held on June 12-13 in Berlin and hosted by the German Federal Ministry of Finance, the German Federal Ministry for Economic Cooperation and Development, and the Deutsche Bundesbank.

On July 3, the first class of mathematically trained Master of Science graduates from eleven countries across Africa such as Cameroon, Ghana, Kenya, and Senegal, among others, will start the first module in Cape Town, South Africa. On average, the participating students are in their early 20s. Internships will begin in South Africa, Cameroon, Ghana, and Kenya in mid-August.

The initiators of the IIP, ESMT Founding Dean Wulff Plinke and Associate Dean Nick Barniville, will present the program during the G20 Africa Partnership conference. Facilitating high-level dialogues between G20 and African decision makers, the conference is a central project of Germany’s G20 presidency. High-ranking representatives from civil society, the private sector, and both G20 and African states will discuss opportunities and contributions for sustainable investment and employment promotion.

German Federal Ministry for the Environment, Nature Conservation and Nuclear Safety

German Federal Ministry for the Environment, Nature Conservation and Nuclear Safety

Market Model Electric Mobility: Cars and infrastructure (MMEM)

Project title:Market Model Electric Mobility: Cars and infrastructure (MMEM)
Funding type:German federal government’s “National Development Plan for Electric Mobility”
Funding period:2009-2011
Research Team:Michael Holtermann, Jens Weinmann (ESMT Berlin)

ESMT European School of Management and Technology participated in the development of the future market for electric vehicles in Germany. A team of researchers and practitioners supported the German federal government’s “National Development Plan for Electric Mobility” with its research project “Market Model Electric Mobility: Cars and infrastructure” (MMEM).

The project’s main objective was to increase the transparency surrounding various energy and transport alternatives, in particular subsidy schemes for electric vehicles and choices for the development of the infrastructure needed to implement electric mobility. The team developed an econometric model for a comprehensive survey of costs and benefits of different infrastructure scenarios in Germany up to the year 2050.

Results (in German only) are available under www.mmem.eu.

International Growth Centre

International Growth Centre

Gender differences in health investment: Evidence from health care providers in India

Project title:Gender differences in health investment: Evidence from health care providers in India
Funding type:IGC India Central Country Programme
Funding period:2012-2013
Research Team:Rajshri Jayaraman (ESMT Berlin)
Cooperating institutions:New York University; Wharton School

In many parts of the developing world, notably in India and China, the ratio of women to men is suspiciously low. In developed countries, males outnumber females at birth, but that imbalance begins to redress itself soon after (Coale 1991; Coale, Demeny and Vaughan 1983). The combined effect is (or should be) a roughly equal proportion of men and women in the population as a whole. That is not the case in large parts of Asia: in India and China, the overall ratio of males to females is around 1.06. Much attention has been placed on a skewed sex ratio at birth, which could indicate sex‐selective abortion (Junhong 1991; Sudha and Rajan, 1999; Jha et al 2006; 2007 and Lin 2007). For instance, Zeng et al. (1993) and Das Gupta (2005) observe that sex ratios for higher‐order births in China (conditioning on earlier births being female) are significantly skewed towards males, a clear warning sign of sexselection through abortion or infanticide. A second area of focus is early childhood and the possibility that young girls are systematically less cared for (Deaton 1989; Subramanian and Deaton 1991; Garg and Morduch 1998; Jensen 2003; Oster 2008; Pande 2003 and Rosenblum 2008). It is fair to say that the literature on missing females has emphasized these pre‐natal and infant/early childhood stages. For instance, Das Gupta (2005) summarizes the literature by stating that "the evidence indicates that parental preferences overwhelmingly shape the female deficit in South and East Asia".

In contrast, recent research by Anderson and Ray (2010) implies that missing women are spread far more widely over age and disease. While the authors do not dispute the existence of severe gender bias at young ages, they introduce a methodological procedure to "decompose" the overall number of missing women into various age‐disease categories. They come to several striking conclusions, among which two are of interest for the present proposal: (1) The majority of missing women in India and sub‐ Saharan Africa and a significant proportion of those in China are of adult age; and (2) Almost all the missing women stem from disease‐by‐disease comparisons and not from the changing composition of disease, as described by the epidemiological transition. Yet Anderson and Ray stress that their approach is only suggestive of different pathways of gender bias: "Much more work is needed to identify the underlying mechanisms." For instance, there are large numbers of missing women in India under the category of cardiovascular disease, but the Anderson‐Ray methodology is silent on why this is the case. Perhaps women are relatively prone to illness: poor diet, inattention to personal health, or stress. Or perhaps women seek medical care less often, conditional on being ill. Or perhaps they receive poorer care, conditional on seeking care. There is a literature that measures differences in household investments in the health and nutrition of boys and girls (Pande 2003), which may be interpreted as an examination of the proneness pathway. This literature argues that households may be systematically responding to gender differences in the returns to investments (Garg and Morduch 1998; Oster 2008). A complementary thread argues that differences in outcomes may result from gender‐based rules for fertility that lead to girls residing in larger families than boys on average. In this case, even in the absence of differential treatment within households, there will be gender differences in outcomes because girls will have more siblings with which they compete for resources (Jensen 2003, Rosenblum 2008). In contrast, our proposed research emphasizes the seeking of care. We will document gender differences in health care. Because different aspects of eye disease, such as myopia, cataract or glaucoma, are measurable, we’ve chosen to work with data from eye care. Using various measures of disease intensity, we will evaluate the extent to which eye health deteriorates before men and women seek care. That is, we begin by studying waiting times to first treatment. Second, we propose to document gender differences in the probability of follow‐up visits conditional on similar levels of health at the first stage of evaluation. Third, we seek to understand the underlying reasons for the observed health differences across gender. It is obvious that a plethora of factors must come into play. Without underestimating the importance of any of these, we emphasize the economics of gender differentials in care. Specifically, we propose a careful economic analysis of how the costs faced by households affect the decisions of men and women to seek care. Our current proposal analyzes these issues at the level of a health care provider rather than through a general household survey. If the results appear promising, we will plan to augment and enrich these results with a household survey, hopefully with the support of the IGC.

Innovation Growth Lab (IGL) / Nesta

Innovation Growth Lab (IGL) / Nesta

A randomized control trial of endogenous team formation and topic choice among potential entrepreneurs

Project title:A randomized control trial of endogenous team formation and topic choice among potential entrepreneurs
Funding type:IGL Grant Program
Funding period:2016-2017
Research Team:Linus Dahlander (ESMT Berlin), Rajshri Jayaraman (ESMT Berlin)
Cooperating institutions:Technische Universität Hamburg

We investigate what makes teams effective in early-stage entrepreneurship—their composition, or the topics they explore. We implement a large-scale field experiment in a German university, whose students are required to take an introductory entrepreneurship class. At the end of this class, equal- sized teams of students must submit a business plan. The first treatment dimension in our two-by- two experimental design pertains to team composition: students are randomly assigned to either endogenous choice of or exogenous assignment to team members. The second treatment dimension applies to topic selection: students will either be allowed to select a topic of their choice or be pre- assigned to a topic. The outcome of interest will be performance on this business plan exercise and changes in entrepreneurial self-efficacy. Randomization will permit us to causally identify if successful team performance rests on choosing ideas versus team members.

Blog entry:

Linus Dahlander, Christoph Ihl, Rajshri Jayaraman & Viktoria Boss, Thursday, 2 March 2017
Good People or Good Ideas? Which makes for a Good Startup?

Japan Society for the Promotion of Science (JSPS)

Japan Society for the Promotion of Science (JSPS)

A network-based approach to the analysis of the structure of technological innovations

Project title:A network-based approach to the analysis of the structure of technological innovations
Funding type:Invitation Programme – Research stays of German researchers in Japan
Funding period:2014
Researcher:Stefan Wagner (ESMT Berlin)
Cooperating institution:Hitotsubashi University

 

Le Fonds National de la Recherche / National Research Fund (FNR)

Le Fonds National de la Recherche / National Research Fund (FNR)

Outreach and the Financing of Microfinance Institutions - MICFI

Project title:Outreach and the Financing of Microfinance Institutions - MICFI
Funding type:CORE: Innovation in Services (IS)
Funding period:2009-2011
Research Team:Guillermo Baquero (ESMT Berlin), Hamedi Malika
Cooperating institutions:Université du Luxembourg, Appui au Développement Autonome

Microfinance institutions (MFIs) provide very small loans and deposit services to clients that are predominantly poor and excluded from the formal banking sector. The Microfinance sector has grown dramatically over the last ten years, currently serving over 100 million households globally, compared to 10 million households in 1997. This level of outreach has been possible thanks to a remarkable mobilization of funds – nearly $20 billion dollars- towards microfinance start-ups, by governments, development agencies, non governmental organizations and charitable foundations. In the long run, however, donors and governments are likely to reduce funding, which raises the question of whether or not subsidy-free programs and financial sustainability would be desirable. In fact, in recent years, microfinance institutions have experienced easier access to capital markets thanks to an increasing institutionalization of the sector, with a tendency towards more transparency, availability of quality data, public reporting, standardization of financial ratios, ratings, and meeting of regulatory requirements. As a result, a major development has been the rise of microfinance investment funds (MFIFs), which are pools of suppliers of funds who collectively invest in a diversified range of MFIs. These new financial intermediaries have been instrumental in attracting a wider scope of providers of financial resources for MFIs, including private and institutional investors. However, the requirements of these new providers of funds are likely to encourage MFIs to evolve into true commercial entities. Therefore, a main concern is whether or not financial sustainability and the recent changes in the financing structure of microfinance institutions come at the expense of undermining their social objectives. The present research project speaks to this question. We propose an empirical investigation of the causal impact that a broader access of microfinance institutions to different sources of capital has on the lending properties of these institutions. Currently we are working on data collection and analysis to address the questions we raise in this project.

Publication:
Baquero, G., G. Aquero, M. Hamadi, and A. Heinen (2011), LSF Research Working Paper Series, No. 11-17
Competition, Loan Rates and Information Dispersion in Microcredit Markets
 

Leibniz Association

Leibniz Association

Peter Curtius-Stiftung

Peter Curtius-Stiftung

The Peter Curtius-Stiftung (Peter Curtius Foundation) has a long-standing cooperation with ESMT Berlin to grant funding for various projects. The Foundation was created in 1989 by Wolfgang and Marie-Luise Curtius in memory of their son Peter. The focus of the Foundation is to sponsor research and education mainly in the area of organizational behavior and leadership.

Since 2005, the Peter Curtius Foundation has generously supported more than 19 projects with a total funding volume of roughly €400,000.