German Private Research Articles

The New Approach to the New Approach: The Juridification of Harmonized Standards in EU Law

In July 2012, the Court of Justice rendered the judgment in Fra.bo, a case about the liability of a German private standards body under the free movement of goods. In October 2012, the European Parliament and Council adopted Regulation 1025/2012 on European Standardization, the long awaited formal legal framework for the cooperation between the Commission and the European Standards Organizations. It is very unlikely that either the Court or the Union legislators were planning in these instances to affect a radical overhaul of the New Approach to technical harmonization. And yet, that is exactly what they did. The result of Fra.bo and the new Regulation is to subject European harmonized standards to judicial challenge by any disgruntled manufacturer of products excluded or adversely affected by the contents of such a standard. To have each and every manufacturer or importer complain in each and every court of the Union about each and every harmonized standard that adversely affects its position on the market, however, is much more likely to lead to wholesale paralysis than it is to increase the procedural integrity of European standardization.

Projections of global warming-induced impacts on winter storm losses in the German private household sector

We present projections of winter storm-induced insured losses in the German residential building sector for the 21st century. With this aim, two structurally most independent downscaling methods and one hybrid downscaling method are applied to a 3-member ensemble of ECHAM5/MPI-OM1 A1B scenario simulations. One method uses dynamical downscaling of intense winter storm events in the global model, and a transfer function to relate regional wind speeds to losses. The second method is based on a reshuffling of present day weather situations and sequences taking into account the change of their frequencies according to the linear temperature trends of the global runs. The third method uses statistical-dynamical downscaling, considering frequency changes of the occurrence of storm-prone weather patterns, and translation into loss by using empirical statistical distributions. The A1B scenario ensemble was downscaled by all three methods until 2070, and by the (statistical-) dynamical methods until 2100. Furthermore, all methods assume a constant statistical relationship between meteorology and insured losses and no developments other than climate change, such as in constructions or claims management. The study utilizes data provided by the German Insurance Association encompassing 24 years and with district-scale resolution. Compared to 1971–2000, the downscaling methods indicate an increase of 10-year return values (i.e. loss ratios per return period) of 6–35 % for 2011–2040, of 20–30 % for 2041–2070, and of 40–55 % for 2071–2100, respectively. Convolving various sources of uncertainty in one confidence statement (data-, loss model-, storm realization-, and Pareto fit-uncertainty), the return-level confidence interval for a return period of 15 years expands by more than a factor of two. Finally, we suggest how practitioners can deal with alternative scenarios or possible natural excursions of observed losses.

From Tarporley to Dolon: The Reattribution of the Early South Italian “New York Goose Vase”

From Tarporley to Dolon: The Reattribution of the Early South Italian “New York Goose Vase”

Business as a Means of Foreign Policy or Politics as a Means of Production? The German Government and the Creation of Friedrich Flick’s Upper Silesian Industrial Empire (1921–1935)

In the 1920s, the German government secretly supported private business activities across the German-Polish border due to revisionist political aims. Based on these aims, the (in-) famous industrialist Friedrich Flick was able to attract financial support for otherwise uneconomical activities in Upper Silesia to which the government provided “insurance.” Not even considering the possibility of moral hazard and holdup, the German government was captured in its secret cooperation with Flick, who could effectively exploit this “insurance.” Until 1931, Flick was able to gain high subsidies and to use them efficiently building up an industrial empire that comprehended the German, Polish, and Austrian iron and steel industry. The interplay of German foreign policy and private business activities in the inter-war years is analyzed as an agency problem in a specific “public-private partnership” that allowed for blackmailing the Government.

Non nested model selection for spatial count regression models with application to health insurance

In this paper we consider spatial regression models for count data. We examine not only the Poisson distribution but also the generalized Poisson capable of modeling over-dispersion, the negative Binomial as well as the zero-inflated Poisson distribution which allows for excess zeros as possible response distribution. We add random spatial effects for modeling spatial dependency and develop and implement MCMC algorithms in $$R$$ for Bayesian estimation. The corresponding R library ‘spatcounts’ is available on CRAN. In an application the presented models are used to analyze the number of benefits received per patient in a German private health insurance company. Since the deviance information criterion is only appropriate for exponential family models, we use in addition the Vuong and Clarke test with a Schwarz correction to compare possibly non nested models. We illustrate how they can be used in a Bayesian context.

Survival of Spinoffs and Other Startups: First Evidence for the Private Sector in Germany, 1976-2008

Using a 50 percent sample of all establishments in the German private sector, we report that spinoffs are larger and initially employ more skilled and more experienced workers than other startups. Controlling for these and other differences, we find that spinoffs are less likely to exit than other startups. We show that in West and East Germany and in all sectors investigated pulled spinoffs (where the parent company continues after they are founded) generally have the lowest exit hazards, followed by pushed spinoffs (where the parent company stops operations). The difference between both types of spinoffs is particularly pronounced in the first three years. Contrary to expectations, intra-industry spinoffs are not found to have lower exit hazards in our sample.

Target-Salden und die deutsche Kapitalbilanz im Zeichen der europäischen Zahlungsbilanzkrise

Summary/Zusammenfassung Target-Salden und die deutsche Kapitalbilanz im Zeichen der europaischen Zahlungsbilanzkrise Die Europaische Wahrungsunion steckt in einer tiefen Zahlungsbilanzkrise. Privates Kapital fliest im grosen Stil von den Peripherielandern in die Kernlander. Um den Fortbestand des Euro zu gewahrleisten treten offentliche, intergouvernementale Kredite und Target-Kredite der Nationalen Zentralbanken an seine Stelle. Der vorliegende Beitrag identifiziert die Komponenten der deutschen Kapitalbilanz, die durch den offentlichen Kapitalfluss ersetzt wurden. Die drei wichtigsten Ergebnisse konnen wie folgt zusammengefasst werden. Erstens: Ohne die Rettungsmasnahmen des offentlichen Sektors (Staat und Bundesbank) ist Deutschland seit 2010 ein Nettokapitalimporteur. Zweitens: Insbesondere die deutschen Geschaftsbanken bauten per Saldo Forderungen gegenuber dem Ausland ab und repatriierten Kapital uber diesen Weg. Drittens: Der Zufluss an auslandischem Fluchtkapital nach Deutschland ist gering. Nur s...

Auswirkungen der demografischen Entwicklung auf die Arzneimittelkosten in der privaten Krankenversicherung - eine Szenariobetrachtung

Health Insurance costs in Germany have grown constantly over the last years. This increase of costs is not only observable in the total consideration but also in all single items. An outstanding growth rate exists in the field of pharmaceutical expenses. Detailed analyses of distribution and development of these costs, separated by age and indication groups, are currently only sporadically available and mostly focusing on the Statutory Health Insurance system in Germany. This research article is based on an initial data analysis and focuses on the question how pharmaceutical expenses in a German private health insurance company will develop until the year 2050, if the observed trend of the past years continues in the same way. This analysis focuses on different age groups. The objective is the demonstration of several scenarios, which illustrate the level of influence of different parameters (demographic changes, developments of prices for pharmaceuticals). Based on the cognition of certain effects measures for handling the growing challenge of financing the health system can be deduced. As a result, both demographic changes and price effects have an significant impact on the future development of per capita pharmaceutical expenses. Whereas older age groups will still cause the highest costs, the middle-aged people will show the highest growth rates. This strong cost increase is not sustainable for the German health insurance system. In addition to previous measures of a regulatory health policy (especially improved cost-benefit-assessments) the article shows new approaches for an intensified prevention and health promotion.

Analyse der Arzneimittelkostenentwicklung in der privaten Krankenversicherung

Health Insurance costs in Germany have grown by 3 % p. a. over the last ten years and amount to approx. 280 bn EUR in 2009. While costs for stationary treatment as the largest cost category have been intensely analyzed over the past years, pharmaceutical expenses have been analyzed in less detail, mostly focusing on the Statutory Health Insurance side, even though pharmaceutical expenses have grown almost twice as much as costs for ambulant treatments. This research article therefore focuses on the question how pharmaceutical expenses in a large German private health insurance company are allocated with respect to age and indication groups, and how those have developed during the past four years. Therefore, the data of a private health insurance company with more than 600.000 customers was split into price and volume effects per age group to understand if price or volume drives the cost development. Additionally, the two largest indication groups are analyzed in detail. As a result, both price and volume effects drive an overall cost increase of 7,3 %. These effects are even stronger in older age groups. This strong cost increase is not sustainable for the German health insurance system over a longer period of time and will even further increase due to the ageing of the German population.

Betting on a Long Life – the Role of Subjective Life Expectancy in the Demand for Private Pension Insurance of German Households

With a view to investigating the presence of adverse selection in the private pension insurance market, we analyze determinants of private pension insurance uptake of German households. Using the SAVE 2005 survey data on savings and old-age provision, we estimate a probit model of insurance holdings. We find that subjective life expectancy is positively related with the probability of having supplementary private pension insurance. This indicates that the German private pension insurance market is in fact characterized by adverse selection. As expected, pre-existing entitlements to benefits from the public pension system tend to be a substitute to private insurance. Furthermore, financial literacy enhances the uptake of private pension insurance. We also find evidence for a bequest motive in old-age provision, but see no indication for pooling longevity risk within couples.

Rezension zu Heiderhoff/Żmij: Interpretation in Polish, German and European Private Law

Rezension zu Heiderhoff/Żmij: Interpretation in Polish, German and European Private Law

Otto von Gierke (1841-1921) life and work of the great German lawyer

This contribution recalls the life and works of Otto Friedrich von Gierke, who was born in 1841 in Stettin (Prussia) and deceased in 1921 in Berlin and who is unreservedly acknowledged as one of the leading representatives of the Germanistic school of historical jurisprudence, as opposed to the Romanist theoreticians of 19th century juridical scholarship in the wake of F. C. von Savigny. In his career as a legal scholar and a law professor, von Gierke moved from Breslau (1871-1884) to Heidelberg (1884-1887) and finally to Berlin (1887-1921). His remarkable importance rests on his outstanding achievements in his jurisprudential research and thought in a manifold variety of subject matters as well as on the sheer multitude of publications. The present article resumes von Gierke's biographical data and facts. Afterwards, it aims at an introduction and explanation of von Gierke's probably most admirable achievement and success, namely his 'organic theory', according to which the ideal and desirable state organization should consist of a network of co-operating associations and of subordinate groups. In his extensive writings von Gierke put special emphasis on the voluntary nature of constituting an association. His preference for the establishment of societal and economic life and order based on groups of individuals contributed to the theoretical foundations of decentralized political-administrative systems. The following chapters are devoted to summarising descriptions of others of his major works, for instance his contributions to the German Lawyers' Association on question of legal education. Famous are his writings on the first draft of the German Civil Code, promulgated in 1888. Indeed, von Gierke was one of the sharpest critics of the 'individualistic' and 'Roman' first draft of the code. His observations and annotations initiated a considerable degree of improvements in the following legislative procedures, before the final version was set into force in 1900. Particular attention has been paid to von Gierke's most noteworthy treatise on Johannes Althusius, a German philosopher of law of the outgoing 16th and the commencing 17th century who was a protagonist of the natural law theory and can also be regarded as an intellectual father of modern federalism. The major works on the Law of Associations (Genossenschaftsrecht) and of German Private Law (Deutsches Privatrecht) were widely acclaimed and gained enormous influence in and beyond Germany. The scholarly output of von Gierke appears truly brilliant and monumental. Many of his works can be studied today with the same fascination as it was the case in his days about a century ago. Until today von Gierke belongs to the most influential Germanists and socio-economists of Germany. It was him who drew the attention of his time and of his successors to the social impacts of the law and to the social responsibility of the lawyers. And it was him who prepared the awareness for a fundamental value system as inevitable basis for a country's legal system. This article invites to read the enlightening works of von Gierke.

Patterns, ideologies and strategies of non‐statutory employee representation in German private sector companies

ABSTRACTNon‐statutory firm level employee representation (NSR), which in contrast to legally based works councils is composed of voluntary patterns, is by now only rarely recognised in German labour relations debate and research. Based on case studies, the article analyses the establishment, modes of operation and participation outcome of NSRs in German private sector companies. While previous NSR research in countries such as Britain and the United States mainly focused on employer‐initiated representation plans, the array of NSRs in German companies appears to be broader: Four types of NSRs are introduced, and a theoretical account is developed, which emphasises cultural–institutional arguments and actors strategies. Hence, it is argued that while NSRs appear to be instruments of management seeking to effectively organise company interest regulation, they strongly reflect cultural conditions and ideologies of non‐statutory employee representation.

Mortality-Indexed Annuities Managing Longevity Risk Via Product Design

Longevity risk has become a major challenge for governments, individuals, and annuity providers in most countries. In its aggregate form, the systematic risk of changes to general mortality patterns, it has the potential for causing large cumulative losses for insurers. Since obvious risk management tools, such as (re)insurance or hedging, are less suited for managing an annuity provider’s exposure to this risk, we propose a type of life annuity with benefits contingent on actual mortality experience. Similar adaptations to conventional product design exist with investment-linked annuities, and a role model for long-term contracts contingent on actual cost experience can be found in German private health insurance. By effectively sharing systematic longevity risk with policyholders, insurers may avoid cumulative losses. Policyholders also gain in comparison with a comparable conventional annuity product: Using a Monte Carlo simulation, we identify a significant upside potential for policyholders while downside risk is limited.

English common law versus German <em>Systemdenken?</em><br>Internal versus external approaches

This article compares the 'systematic method' of continental German private law with the common law method. It starts out by discussing the characteristics of a systematic approach, its application to European private law as well as its methodological tools. The author submits that the systematic approach is not inherently different but, on the contrary, is rather similar to the common law approach, irrespective of a difference in the (major) sources of law (statutes vs case law). What both approaches have in common is, in particular, that they take an internal perspective on the law rather than the external perspective that characterises the 'law and ...' approaches. The latter can inform the interpretation and application of the law only to a limited extent.

Ideas in a Time of Crisis: How German and American Elites Understood the Financial Crisis Differently

The international financial crisis that began in 2006/2007 continues to threaten economic stability in many parts of the world including the United States and Europe. The paper explores how the financial crisis conforms to or challenges two models of capitalism by comparing efforts by Germany and the United States to address the financial crisis in 2008. The German Financial Market Stabilization Act passed by the German legislature and the Emergency Economic Stabilization Act of 2008 passed by the American legislature were enacted in the tumultuous days of October 2008. Both laws were passed with conservative executives in power, national elections on the horizon, and economies struggling with high unemployment and low growth. The stabilization acts present an opportunity to understand the current state of each country’s model of capitalism through lens of crisis. The paper examines how, in the lead-up to the legislation, policy makers defined the causes of the financial crisis. In earlier work I showed how models of capitalism influenced German and United States privatization of public assets. This paper considers a similar theme: how each country’s model of capitalism influenced government’s capacity to resolve the financial crisis.

New Regulation on Torts in German Private International Law

New Regulation on Torts in German Private International Law

Motivationsstrukturen von Studierenden der Physiotherapie – Vergleich berufsbegleitender und ausbildungsintegrierender Studiengänge auf der Basis der Selbstbestimmungstheorie

Hintergrund: Ausgehend von einer zunehmenden Akademisierung der Physiotherapie in Deutschland ist es für die Anbieter und Lehrenden entsprechender Studienangebote von Bedeutung zu wissen, welche Motivationsstrukturen bereits ausgebildete und berufstätige bzw. in der Ausbildung befindliche Physiotherapeuten bewegen, ein Studium zu beginnen.

Restricting Freedom of Contract through Non-Discrimination Provisions? A Comparison of the Draft Common Frame of Reference (DCFR) and the German “General Equality Law”

In recent years hardly any field of private law has given rise to the amount of debate that was provoked by the non-discrimination legislation adopted at the European level and, subsequently, by various Member States. In particular, the run-up and the adoption of the GermanAllgemeines Gleichbehandlungsgesetz(German General Equality Law, hereafter “AGG”) were subject to extensive deliberation. Numerous German private lawyers objected to the perceived dilution of freedom of contract that they felt would result from the comprehensive private law protection against discrimination.

German Employers’ Inputs to Employee Skills Development

Using organizational level survey data, this article analyzes larger German private employers’ inputs to employee skills development, to test the theory that unions and employers’ associations raise employer incentives for training. Large German employers maintained their overall contribution between 1995 and 1999. Indicative data for 2004 suggest that this has continued, yet neither membership of employers’ associations nor high union densities influenced it.