The taking along effect marks two political and/or economic phenomena.

Taking along effect with subsidies

The taking along effect marks the demand subsidies or other financial incentives than reward for a behavior, which would have taken place also without the additional incentive. Thus steering element effect is limited in particular national incentive schemes. Since the respective extent empirically accurately do not determine themselves taking along effect, but to only assume, is disputed the evaluation of the effect leaves.

Example:

• The scientific adviser at the Federal Ministry for economics and work assumes Wolfgang Clement in a letter from 25 October 2002 to the responsible Federal Minister that enterprises, which would like to adjust anyway new coworkers make this preferential over a public personnel service agency, since the wages are subsidized here. The additional job-creating effect expected by the creation of the agencies precipitates therefore smaller, than lets the numbers of the unemployed persons placed by the agencies assume. '' Letter of the scientific adviser with the Federal Ministry for economics and work on the occasion of feared taking along effects with personnel service agencies ''. Press release of the Federal Ministry for economics and technology, 12 November 2002. This discussion revived at the beginning of of 2006 in the debate around so-called combination wages again and among other things by the Prime Minister of Lower Saxony Christian Wulff as political key word in the play was brought, in order to prevent a introduction.

  '' Debate around combination wages. Wulff warns forwards "taking along effects "''. tagesschau.de, 15 January 2006
  

  . Job market experts stressed again the danger that new employment planned anyway becomes only cheaper, but no additional places to be created.

  '' Saxonia wants to test combination wages. Full-scale test planned. Expert sceptically ''. Lausitzer round-look on-line ones, 4 January 2006. 
  

• In connection with the promotion of private housebuilding by the home of one's own extra pay it is assumed that the real estate prices are more expensive around exactly the height of the home of one's own extra pay, than it is justified after market prices, since the salesmen know that the buyer can get this sum nationally promoted.

Taking along effect when short term changes long-term trends

With a taking along effect one explains changes of an indicator or a characteristic, which run against the current trend.

Example:

• Despite a longer and stable upward trend with the share quotations, the stock exchange indicator (e.g. the DAX) exhibits break-downs. This is explained with the fact that investors realize profit-takings and sell therefore against the trend their security stocks.

Literature

Taking along effect. In: Gablers restaurant economics. Bd. 2 L-Z, Wiesbaden 1988. ISBN 3-409-30948-9

Sources

Articles in category "Taking along effect"

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