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32 votes
Accepted

How can power/electricity prices be negative?

Yes, customers who were exposed to day-ahead wholesale market prices were paid to use electricity. It is a combination of several different factors that make the day-ahead wholesale electricity ...
410 gone's user avatar
  • 8,168
10 votes
Accepted

If Germany is the largest exporter, why do Chinese products pervade the the US market?

Intermediate and capital goods used in the production of other goods are often very expensive and made by Germany. Think fancy manufacturing equipment in chemicals, semiconductors, and metal ...
BKay's user avatar
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8 votes

What's the (economical) advantage for a company by paying an employee severance payment short before retirement

If Bob is actually a valuable employee this probably doesn't make sense. However it is possible that the things Bob is good at just don't have a market any more. So his work could be good but it is ...
quarague's user avatar
  • 882
6 votes

How can power/electricity prices be negative?

As many have stated before me, you can't just throw electricity away if you produce too much—it has to go somewhere. If you put more power into the system than the resistant (or consumption) in the ...
JonT's user avatar
  • 115
6 votes

What's the (economical) advantage for a company by paying an employee severance payment short before retirement

You should also consider that firms often need to use other factors together with employees/labor. Steel manufacturers can't produce steel just by hiring workers without some steel furnace/capital. ...
WilliamT's user avatar
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5 votes

What's the (economical) advantage for a company by paying an employee severance payment short before retirement

If bob is leaving in 3 years, it may be worth it to pay him 3 years salary to retire early. If his skills/area of expertise are far out of date, it might be better to go ahead and get a new, younger ...
Issel's user avatar
  • 151
4 votes

What's the (economical) advantage for a company by paying an employee severance payment short before retirement

tl;dr privatizing gains and socializing costs. The other answers already list a number of costs which are no longer applicable, especially the common costs for having an employee (manager, office, ...)...
Jens's user avatar
  • 41
4 votes

How can power/electricity prices be negative?

This reflects the problem of electricity storage. With most other commodities, there is some way to store it ahead of future need, but in general this option is not so readily available with ...
Graham's user avatar
  • 164
4 votes

How can power/electricity prices be negative?

Basically negative prices reflect that there is produced more electricity than the market asks for. In all other markets, this is not a problem as you can just refuse to sell, but for electricity, ...
Nicky Mattsson's user avatar
4 votes

Who owns German debt?

This Deutsche Bank figure from 2013 has some broad categories for German debt and compares it with other rich countries: A newer chart, using slightly with more granular categories. Note that Germany ...
BKay's user avatar
  • 16.3k
3 votes

Nelson-Siegel-Svensson parameters provided by the Bundesbank

If anyone ever wonders the same, I´ve just tried weighting the monthly parameters and that leads to the correct interest rates :) you take 1 / 12 * ∑ (12 values of the respective parameter for the ...
Amy's user avatar
  • 51
3 votes

Why are German bonds used as the reference for the calculation of Eurozone bond spreads?

German bonds placed as a reference in the eurozone is a form of tacit understanding and i don't think you will find official conventions about this. This practice comes from market Finance pricing ...
keepAlive's user avatar
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2 votes
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Germany's current account surpluses: Negative effect? How to solve them?

As requested in comments: German banks lost a lot of money in the US sub-prime crisis and would have lost a lot more in Greece if the Eurosystem had not saved them. This is what might reasonably be ...
Henry's user avatar
  • 4,765
2 votes
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Why has France been hit so hard by rising petrol prices?

Why has France been hit so hard by rising petrol prices? Because restrictions on Russian oil increase world oil prices as well. As you can clearly see from the data there was sharp increase in US, ...
1muflon1's user avatar
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1 vote
Accepted

Why did Germany not suffer from Great Inflation in the 1970s/80s?

There is actually a paper on this topic by Beyer et al (2009) titled ‘Opting out of the great inflation: German monetary policy after the breakdown of Bretton Woods’ that exactly addresses your ...
1muflon1's user avatar
  • 56.8k
1 vote

How to estimate Italian parking data starting from German parking data?

I'm not entirely sure this would be possible to do using German data, though very happy to be corrected. It seems that the data you have is largely driven by parking search costs, therefore could you ...
Niall Patrick's user avatar
1 vote

German economic growth in the 20th century

Actually the real GDP of Germany did not shrink between 1995 - 2000. In fact between those years it was growing. Below I posted picture of Germany’s real GDP from Fred dataset (which is very good ...
1muflon1's user avatar
  • 56.8k

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