German Institute for Economic Research

The German Institute for Economic Research is one of the leading research institutes in Germany. It is an independent, non-profit-making academic institute which is involved in basic research and policy advice.

The DIW Berlin was originally founded in 1925 as the Institute for Business Cycle Research and was later renamed in German Institute for Economic Research.

The DIW Berlin is divided into seven research departments (as shown in the organisational chart) which are:

• Macroanalysis and Forecasting
  
• International Economics
  
• Public Economics
  
• Information Society and Competition
  
• Innovation, Manufacturing, Service
  
• Energy, Transportation and Environment
  
• Longitudinal Data and Micro Analysis

Each research department is chaired by a department head who actively contributes to the institute´s research operations and the scientific co-ordination of research work.

The DIW Berlin aims to link its research work with university research by awarding professorships to the department heads. In addition the research groups social risk management and business cycle policy also serve this purpose.

The DIW Berlin also includes a general support division which includes administration services, data processing, information and organisation and the library.

The DIW Berlin has about 204 staff members, 112 of whom are researchers. The departmental work is also supported by external research directors, research professors and research affiliates. They support for a limited period of time cross-sectional research assignments and give a fresh impetus to the institute´s research agenda. The DIW Berlin is chaired by a president who is supported by a vice-president and a managing director. Professor Klaus F. Zimmermann is the seventh president of the DIW Berlin, having taken up the position at the beginning of 2000.

The legal status of the DIW Berlin is that of a registered association. The association´s bodies are the members, the board of trustees, the executive board and the advisory board. Since 1951 the institute´s research activities have been supported by the Association of the Society of Friends of the DIW Berlin (VdF). The VdF is a group of sponsors comprising national and international companies which enable the DIW Berlin to promote and maintain a dialogue with the private sector.

Aims and Tasks

The main task of the DIW Berlin is to investigate economic processes in Germany and abroad and to support decision-making in politics, the public sector and the economy. Since its inception, the institute has focussed on business cycle analysis and forecasts. Particular emphasis is given to empirical research based on theoretical explanatory approaches. The variety of research ranges from the short-term analysis of economic trends and the analysis of current economic and fiscal affairs, to the long-term projection and assessment of developments in the global economy and in individual sectors alike. An objective of DIW Berlin research work is to further the development of the German economy.

Questions of international economic relations, which are the result of the integration of the Federal Republic of Germany into the European Union and on the strongly international orientation of the German economy, are also dealt with.
The analysis of the transformation processes in East Germany and Eastern Europe has became a new research interest since the reunification of Germany. The economy of Greater Berlin is regularly monitored.

Analyses and scenarios of regional development furthermore examine the effects of structural changes, for example, in Berlin and Brandenburg.
Traditional focal points of the institute´s research work include economic questions on environmental protection, energy and resource economy as well as on traffic and transportation.

New orientation

The new orientation of several research departments offers the possibility to effectively examine the developments in the "new economy". The analysis of the dynamics of the service economy and in particular the information and communication economy is a new research area.

The DIW Berlin aims to strengthen its co-operation with national and international research networks and research institutes in order to use these connections for joint research programmes and advisory activities.

More than half of the institute´s budget is derived from public grants, which the DIW Berlin receives as research funding from the state of Berlin and the Federal Government in equal parts. This sum is supplemented by income from projects, research contracts with third parties, trustee memberships and donations. The total budget for the year 2002 amounted to 19.2 million Euro.

The DIW Berlin is a member of the Leibniz Association (WGL).

German Institute for Economic Research
Königin-Luise-Str. 5
14195 Berlin
Tel: +49 (0)30 / 8 97 89 - 0
Fax: +49 (0)30 / 8 97 89 - 200
E-Mail: postmaster@diw.de

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Further Information: www.diw.de