Halle Institute for Economic Research

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The Halle Institute for Economic Research (IWH) is a non-profit economic research institute in Halle (Saale), Germany. It is a member of the Leibniz Association and is funded equally by the federal government and the German states. Founded on January 1, 1992, IWH conducts research aimed at the public interest and also works on projects for third parties.

Key people and basics:
- President and executive board member: Reint E. Gropp
- Other board members: Oliver Holtemöller, Michael Koetter, Tankred Schuhmann
- Staff: about 105
- Budget: about 10.5 million euros (2022)
- Address: Kleine Maerkerstrasse 8, 06108 Halle (Saale), Germany
- Website: iwh-halle.de/en/

Mission and focus:
IWH conducts evidence-based economic research and provides policy advice by combining theory and data. It originally studied the economic transition in East Germany and Central and Eastern Europe. Now, the institute focuses on economic convergence, the role of the financial system in reallocating production factors, and the impact on productivity and innovation.

Organization:
IWH uses a matrix structure with research clusters and four departments. Three topic-oriented research clusters exist, alongside four departments that cover different research areas:
- Department of Financial Markets and Institutions: studies institutional changes in Europe’s financial markets, bank expansion, market structure, financial stability, contagion effects, and the link between the financial system and the real economy.
- Department of Macroeconomics: analyzes short- and medium-term economic fluctuations (GDP, employment, interest rates), the impact of economic policy, and long-term growth; it also provides policy advice.
- Department of Structural Change and Productivity: examines dynamics of structural change driven by globalization and technological progress; uses microeconometric methods to assess effects on regions, industries, and firms.
- A fourth department focuses on the regulation of financial and labor markets and their connection to real sector development, aiming to bridge traditional gaps between financial/labor regulation and the real economy.

Output and activities:
IWH publishes a major biannual report, the Gemeinschaftsdiagnose (Joint Economic Forecast), on the state of the German economy. It has been contributing to this forecast since spring 1993. Research at IWH emphasizes collaboration across departments and the use of both theoretical and empirical methods.