Stochastic foundations of dynamic trade and labor market models

This dissertation consists of three self-contained papers that are related to two main topics. In particular, the first and third studies focus on labor market modeling, whereas the second essay presents a dynamic international trade setup.rnrnIn Chapter "Expenses on Labor Market Reforms during Transitional Dynamics", we investigate the arising costs of a potential labor market reform from a government point of view. To analyze various effects of unemployment benefits system changes, this chapter develops a dynamic model with heterogeneous employed and unemployed workers.rn rnIn Chapter "Endogenous Markup Distributions", we study how markup distributions adjust when a closed economy opens up. In order to perform this analysis, we first present a closed-economy general-equilibrium industry dynamics model, where firms enter and exit markets, and then extend our analysis to the open-economy case.rn rnIn Chapter "Unemployment in the OECD - Pure Chance or Institutions?", we examine effects of aggregate shocks on the distribution of the unemployment rates in OECD member countries.rn rnIn all three chapters we model systems that behave randomly and operate on stochastic processes. We therefore exploit stochastic calculus that establishes clear methodological links between the chapters.

Transatlantic negotiations on "hell"?: W. E. B. Du Bois's visit to fascist Germany and Theodor W. Adorno's exile in the land of the culture industry

In 1936, the African-American intellectual W.E.B. Du Bois visited Nazi Germany for a period of five months. Two years later, the eleven-year-long American exile of the German philosopher Theodor W. Adorno began. From the latter’s perspective, the United States was the “home” of the Culture Industry. One intuitively assumes that these sojourns abroad must have amounted to “hell on earth” for both the civil rights activist W.E.B. Du Bois and the subtle intellectual Adorno. But was this really the case? Or did they perhaps arrive at totally different conclusions? This thesis deals with these questions and attempts to make sense of the experiences of both men. By way of a systematic and comparative analysis of published texts, hitherto unpublished documents and secondary literature, this dissertation first contextualizes Du Bois’s and Adorno’s transatlantic negotiations and then depicts them. The panoply of topics with which both men concerned themselves was diverse. In Du Bois’s case it encompassed Europe, science and technology, Wagner operas, the Olympics, industrial education, race relations, National Socialism and the German Africanist Diedrich Westermann. The opinion pieces which Du Bois wrote for the newspaper “Pittsburgh Courier” during his stay in Germany serve as a major source for this thesis. In his writings on America, Adorno concentrated on what he regarded as the universally victorious Enlightenment and the predominance of mass culture. This investigation also sheds light on the correspondences between the philosopher and Max Horkheimer, Thomas Mann, Walter Benjamin, Siegfried Kracauer and Oskar and Maria Wiesengrund. In these autobiographical texts, Adorno’s thoughts revolve around such diverse topics as the American landscape, his fears as German, Jew and Left-Hegelian as well as the loneliness of the refugee. This dissertation has to refute the intuitive assumption that Du Bois’s and Adorno’s experiences abroad were horrible events for them. Both men judged the foreign countries in which they were staying in an extremely differentiated and subtle manner. Du Bois, for example, was not racially discriminated against in Germany. He was also delighted by the country’s rich cultural offerings. Adorno, for his part, praised the U.S.’s humanity of everyday life and democratic spirit. In short: Although both men partly did have to deal with utterly negative experiences, the metaphor of “hell on earth” is simply untenable as an overall conclusion.