INSIDE RESEARCH, 01. Juli 2025

Ever watched the Making Of of your favourite movie? On Tuesday, July 1st, we had another great Inside Research event where we were provided with valuable insights into recent economic research.

Lennard Schlattmann presented a chapter from his PhD thesis on the spatial redistribution effects of carbon taxes. His research shows that rural households in Germany have significantly higher direct CO₂ emissions – mainly from heating and gasoline – while indirect emissions are similar across regions. Using a quantitative model, he analyzed how different ways of recycling carbon tax revenues (lump-sum transfers, place-based transfers, or housing subsidies) affect redistribution between rural and urban areas and political support for climate policies. His results highlight that place-based transfers can be crucial to build majority support for ambitious carbon pricing.

Georg Schneider presented a project (joint with Valentin Kecht) on how bankers’ labor market outside options affect financial risk-taking. They find that when bankers have better job opportunities at other banks, they take on riskier loans, increasing not only bank-level but also systemic risk. Outside options act as implicit insurance, weakening job-loss threats as a disciplining device, with implications for compensation structures and macroprudential policy.

What made the session particularly insightful was that both speakers shared not only their results but also their research process: from identifying the initial idea and research question, to collecting suitable data, and to making key modelling assumptions. This behind-the-scenes perspective is always inspiring for anyone working on their own projects.

Many thanks to Leon Sieverding for moderating the session so smoothly and to both speakers for sharing their PhD research journeys with us.

Inside Research is a successful event jointly organised by the Alumni and Support Association and the Student Council.