Book review of “Germany in Transit: Nation and Migration, 1955-2005”. 588 pages, University of California Press, 2007, by Deniz Göktürk, David Gramling and Anton Kaes (eds.)

Though migration is an age-old feature of human activity, driven by various circumstances, its current place in the midst of global dynamics and the phenomenon of globalization is becoming increasingly critical. International immigration and its regulation have been largely shaped by the policies in the receiving countries, often determining preferences for nationality cohorts and work skills to satisfy their labor and human capital requirements. When immigration has been necessitated by political strife, host countries have displayed immense magnanimity as well. However, the growing realization of resource limitations and the strange quirks of cultural pluralism are in turn creating waves of dissonance. Literature and the media are now replete with an in depth look into the immigration debate in various nations of the world in trying to seek new directions and satisfactory solutions.

Walter Friedländer (1891-1984) – Between Social Democracy and Social Darwinism

If the profession of social work is to have a future we must know where it came from, and the series of portraits of our pioneers is one of the paths into the origins of that profession. I feel grateful to the publishers for this online-journal and also honoured to be asked to continue the series on pioneers in social work. I gladly comply because, in connection with my research on Alice Salomon and other social workers who were expelled from Germany and other Nazi-occupied territories (Wieler1989 and 1995) I had the pleasure and privilege of meeting and interviewing Walter Friedländer shortly before he passed away. It is years ago that I visited him in his home among stacks of books and piles of papers. My memories are vivid. I still see his sparkling eyes and hear his soft voice with a very heavy German accent. I was most impressed by his memory of historical events and people which, it seemed, only a large hard-drive could retain these days. Now, I wish I had asked more questions but instead, we will have to rely largely on primary and secondary literature and box upon box of archival materials. I draw heavily on the comprehensive German and Jewish Intellectual Emigré Collection (http://library.albany.edu/speccoll/findaids/ger003.htm) which consists of nearly 50 cubic feet and another collection of the German Central Institute („Deutsches Zentralinstitut für Soziale Fragen-DZI“) in Berlin (www.dzi.de). Some of the more current archival materials were lost in a flood, and much of Friedländer’s early memorabilia up to 1933 was lost in Germany. There are also internet resources with widely differing information. I hope that I will not have overlooked too much in order to do justice to this remarkable pioneer and colleague. In order to appreciate and pay tribute to Walter Friedländer and his contributions we will have to reconsider the historical and international context of more than the 93 years of his life span: the German Monarchy, the Weimar Republic, Nazi-Fascism, Swiss, French and American exile and numerous visits to other countries.

Tax-Optimal Step-Up and Imperfect Loss Offset

In the field of mergers and acquisitions, German and international tax law allow for several opportunities to step up a firm's assets, i.e., to revaluate the assets at fair market values. When a step-up is performed the taxpayer recognizes a taxable gain, but also obtains tax benefits in the form of higher future depreciation allowances associated with stepping up the tax base of the assets. This tax-planning problem is well known in taxation literature and can also be applied to firm valuation in the presence of taxation. However, the known models usually assume a perfect loss offset. If this assumption is abandoned, the depreciation allowances may lose value as they become tax effective at a later point in time, or even never if there are not enough cash flows to be offset against. This aspect is especiallyrelevant if future cash flows are assumed to be uncertain. This paper shows that a step-up may be disadvantageous or a firm overvalued if these aspects are not integrated into the basic calculus. Compared to the standard approach, assets should be stepped up only in a few cases and - under specific conditions - at a later point in time. Firm values may be considerably lower under imperfect loss offset.