Klaus Wälde - Ongoing work and publications

Under submission and work in progress

  • (with Andrey Launov) Thumbscrews for Agencies or for Individuals? How to Reduce Unemployment
    • Matlab code for numerical solutions (zip file). See _Read_Me.txt in zip file for how to use the code
    • Slides
  • (with Andrey Launov and Olaf Posch) On the estimation of the volatility-growth link
  • (with Christian Bayer) The Dynamics of Distributions in Continuous-Time Stochastic Models
  • Stress and Coping: An Economic Approach (slides)
  • (with Alejandro Donado) How Bad is Globalization for Labour Standards in the North?
    • Matlab code for numerical solution (zip file)
    • Data used for calibration


Labour markets 

  • (with Andrey Launov) Estimating Incentive and Welfare Effects of Non-Stationary Unemployment Benefits International Economic Review 54 (2013): 1159-1198
  • Referee and web appendix
  • Matlab code for estimation and numerical solution (zip file). See ReadMe.txt in zip file for how to use the code
  • Numerical Solution of Volterra Equations resulting from Semi-Markov setup (ch. 4 of Irene Schumm's dissertation)
  • Slides
  • Media coverage (selection): Neues Deutschland, MBO Verlag (Aktuelle Nachrichten), Berliner Zeitung, Frankfurter Rundschau, Kölner Stadtanzeiger, e! Science News
  • (with Alejandro Donado) How Trade Unions Increase Welfare Economic Journal 122 No. 563 (2012): 990 - 1009
  • Trade union data and figures (1880 to 2008, selected OECD countries)
  • Press and blog coverage (selection): LSE blog, Hans Böckler Stiftung - Böckler Impuls, DGB - Gegenblende
  • (with Jörg Lingens) Pareto-Improving Unemployment Policies. FinanzArchiv 65 (2009): 220 - 245.
  • Egalitarian and Elitist Education Systems as the Basis for International Differences in Wage Inequality. European Journal of Political Economy 16, 3 (2000): 445-468 (earlier discussion paper version (pdf))

Macro and theory 

  • (with Olaf Posch) On the Link between Volatility and Growth. Journal of Economic Growth 16 (2011): 285 - 308.
  • Production Technologies in Stochastic Continuous Time Models. Journal of Economic Dynamics and Control 35 (2011): 616 - 622. The appendix is here
  • Corrigendum to “Optimal saving under Poisson uncertainty”. Journal of Economic Theory 140 (2008): e360 - e364. A corrected version of "Optimal Saving under Poisson Uncertainty" taking into account the findings of this Corrigendum is available in chapter 10.1 of the text book "Applied intertemporal optimization". It can be downloaded freely from www.waelde.com/aio
  • (with Ken Sennewald) “Ito’s Lemma” and the Bellman Equation for Poisson Processes: An Applied View . Journal of Economics 89 (2006): 1 - 36. The appendix is here
  • Endogenous Growth Cycles. International Economic Review 46 (2005): 867 - 894. The appendix is here
  • (with Ulrich Woitek) R&D Expenditure in G7 Countries and the Implications for Endogenous Fluctuations and Growth. Economics Letters 82 (2004): 91-97. Table appendix is here
  • The Economic Determinants of Technology Shocks in a Real Business Cycle Model. Journal of Economic Dynamics and Control 27 (2002): 1 - 28.
  • Optimal Saving under Poisson Uncertainty. Journal of Economic Theory 87, (1999): 194-217
  • A Model of Creative Destruction with Undiversifiable Risk and Optimising Households. Economic Journal 109 No. 454 (1999): C156 - C171. The appendix is here

International trade 

  • (with Pia Weiß) International Competition, Downsizing and Wage Inequality. Journal of International Economics 73 (2007): 396 - 406. Complete discussion paper version with appendix
  • (with Jens Eisenschmidt) International Trade, Hedging, and the Demand for Forward Contracts. Review of International Economics 15 (2007): 414-429.
  • (with Pia Weiß) Relative Price Changes, Wages and Unemployment in a Specific Factors Model with Search Frictions. Review of Development Economics 10 (2006): 398–408
  • (with Christina Wood) The Empirics of Trade and Growth - Where are the Policy Recommendations? International Economics and Economic Policy 1 (2004): 275 - 292
  • (with Sabine Hansen) Warum ist Deutschland Exportweltmeister? Der Einfluss laufender internationaler Transfers . Jahrbuch für Wirtschaftswissenschaften 54 (2003): 101-113
  • (with Paul Tang) International competition, growth and welfare. European Economic Review 45 (2001): 1439-1459. The appendix is here
  • Proof of Global Stability, Transitional Dynamics, and International Capital Flows in a Two-Country Model of Innovation and Growth. Journal of Economics Zeitschrift für Nationalökonomie 64, 1 (1996): 53 - 84
  • Unequal Factor Prices and Incomplete Specialization in a Heckscher-Ohlin Model of Endogenous Growth. Journal of Economics Zeitschrift für Nationalökonomie 59, 3 (1994): 311 - 323
  • On an Additional Condition for Factor-Price Equalisation in Intertemporal Heckscher-Ohlin Models. Economics Letters 44, 4 (1994): 411 - 414

Public finance 

  • (with Martin Bossmann and Christian Kleiber) Bequests, Taxation and the Distribution of Wealth in a General Equilibrium Model. Journal of Public Economics 91 (2007): 1247-1271. Final version with appendix
  • (with Cecilia García-Peñalosa) Efficiency and Equity Effects of Subsidies to Higher Education. Oxford Economic Papers 52, 4 (2000): 702-722. Reprinted in: Belfield C. R. and Levin H. M. (eds.), The Economics of Higher Education. Elgar Reference Collection. International Library of Critical Writings in Economics, vol. 165. Elgar (2003): 545-565


  • (with Michael Graber and Andrey Launov) Publish or Perish? The Increasing Importance of Publications for Prospective Economics Professors in Austria, Germany and Switzerland. German Economic Review 9 (2008): 457 - 472. See also www.HowToGetTenured.de

Invited contributions

  • (with Andrey Launov) Folgen der Hartz-Reformen für die Beschäftigung. Wirtschaftsdienst 94 (2014): 112-117
  • (with Alejandro Donado) Sind niedrige Arbeitsstandards ein globaler Wettbewerbsvorteil des Südens? Low labour standards as a global competitive advantage of the South? KfW Meinungsforum Entwicklungspolitik 6 (2013). German version, English version
  • (with Jörg Lingens) Mehr Arbeit bei gleichem Nettolohn. WiSt 34, Oktober 2005
  • Invited review of Aghion and Howitt’s 1998 textbook "Endogenous Growth Theory". Journal of Economics Zeitschrift für Nationalökonomie 69, 2 (1999): 190 - 195

Books and contributions to books

  • Applied intertemporal optimization, 2012, Know Thyself Academic Publishers. Available for download and in print version with solutions to problem sets
  • Reale Außenwirtschaft, Monetäre Außenwirtschaft, Wachstum (3 chapters of approx. 15 pages each). In Blum et al. (eds.), 2003, Grundlagen der Volkswirtschaftslehre. 2nd edition, Springer, Berlin
  • Kritische Würdigung einer Generationenbilanzierung für die Bundesrepublik Deutschland; Korreferat zum Referat B.Raffelhüschen und J. Walliser. In Gahlen, B., Hesse, H. und Ramser, H. J. (Hrsg.), 1998, Verteilungsprobleme der Gegenwart - Diagnose und Therapie. Wirtschaftswissenschaftliches Seminar Ottobeuren. Mohr Siebeck, Tübingen: 325 - 330
  • Convergence, Divergence and Changing Trade Patterns - Theoretical Inquiries into the Role of Preferences, Factor Accumulation, Technological Change and Government Intervention. Physica Verlag,Heidelberg, 1995

Other papers

  • (with Christian Bayer) Describing the Dynamics of Distributions in Search and Matching Models by Fokker-Planck Equations, 2011
  • (with Tobias Nagel) An example for a closed-form solution for a system of linear partial differential equations, 2011
  • The twin-problem in numerical solutions of continuous-time Bellman equations, 2010
  • (with Christian Bayer) Matching and Saving in Continuous Time: Theory (long version), 2009
  • (with Beate Schirwitz) Synchronization of Business Cycles in G7 and EU14 countries
  • Old and New Growth Theory: The Impact of Taxation


  • Poisson - Ramsey Economies. On the Endogeneity of Cycles in Economic Growth