Determinants of Financial Capital Use: Review of theories and implications for rural businesses. Factor Markets Working Paper No. 19, February 2012

This paper presents a review of financial economics literature and offers a comprehensive discussion and systematisation of determinants of financial capital use. In congruence with modern financial literature, it is acknowledged here that real and financial capital decisions are interdependent. While the fundamental role of the (unconstrained) demand for real capital in the demand for finance is acknowledged, the deliverable focuses on three complementary categories of the determinants of financial capital use: i) capital market imperfections; ii) factors mitigating these imperfections or their impacts; and iii) firm- and sector-related factors, which alter the severity of financial constraints and their effects. To address the question of the optimal choice of financial instruments, theories of firm capital structure are reviewed. The deliverable concludes with theory-derived implications for agricultural and non-agricultural rural business’ finance.

Gibt es eine politische Philosophie der Europäischen Union? = Is there a political philosophy of the European Union?. ZEI Discussion Paper C223, 2014

In a theoretical context, the European Union is generally interpreted through the prism of integration theories, which in turn reflect the ever changing empirical reality of the integration process. ZEI Director Ludger Kühnhardt asks if and to what extent the process of European integration has begun to generate a specific political philosophy which uses the EU - and not the classical notion of the state – as the starting and reference point for its reasoning. Kühnhardt examines examples – such as the European notion of civil rights and the notion of the Union itself, but also critical categories such as euroskepticism – which indicate that the EU itself is beginning to be the starting point and frame of reference for a reflection on the common good. For now, a political philosophy in the context of the European Union exists only in an embryonic stage, but the topic may generate intellectual insights through further and deeper research.