Cost of (no) basic child allowance: long-term costs of child poverty

One in five German households with children lives below the at-risk-of-poverty threshold. Germany’s current coalition agreement aims to strengthen families and lift children out of poverty. Against this background, the basic child allowance is currently under discussion. In the public debate, however, the long-term societal costs of child poverty are hardly ever compared with the costs of measures against child poverty. Yet, the costs are significant and occur in the areas such as health, education and social participation. Scenario analyses confirm that policy measures can be effective in reducing child poverty. Investing in children can therefore lead to substantial fiscal savings in the long run.

Private school funding and energy price crisis

On behalf of the Association of German Private School Associations (VDP e.V.), DIW Econ has investigated whether and how stable the financing system of independent schools in Germany is with regard to extreme increases in energy costs.

How reliable are the profitability analyses for the fixed link across the Fehmarnbelt?

Financing model and cost-benefit analysis put to the test

Scandlines ApS commissioned DIW Econ to prepare an analysis of the fixed link across the Fehmarnbelt.

Current studies on the fixed link across the Fehmarnbelt paint an optimistic picture when they conclude that the tunnel is worthwhile both from an economic and a macroeconomic perspective. The available analyses cannot confirm these assessments. On the contrary, they show that the economic viability of the fixed link is at risk.

Statement on the current cost-benefit analysis for a fixed link across the Fehmarnbelt

On behalf of Scandlines, DIW Econ has examined the current cost-benefit analysis of the planned fixed link across the Fehmarn Belt from 2015.

The result shows that despite a consistently optimistic choice of parameters and methodological shortcomings, the net benefit of the project is relatively low. The assessment of possible project risks in the sensitivity analysis is insufficient.