The EU Taxonomy is the first standardised and comprehensive classification system for sustainable economic activities. It covers activities responsible for up to 80% of EU greenhouse gas emissions and may play an important role in channelling investments into low-carbon technologies by helping investors to make informed decisions. However, especially in transition sectors much depends on the stringency ...
We compute participation tax rates across the EU and find that work disincentives inherent in tax–benefit systems largely depend on household composition and the individual’s earner role within the household. We then estimate participation elasticities using an IV group estimator that enables us to investigate the responsiveness of individuals to work incentives. We contribute to the literature on ...
We develop a comprehensive life-cycle model of elder parent care and work to evaluate options that address pressing conflicts between pension and long-term care (LTC) policies. Many OECD countries react to challenges of demographic change by increasing LTC by family members (informal care) and raising retirement ages. This intensifies conflicts between paid employment and informal care provision....
The Corona pandemic has had a decisive impact on the year 2020 and an unprecedented (negative) impact on society and the economy. At the core of this simulation study is therefore the question of how the Corona pandemic has affected income levels and social inequality in Germany, and to what extent automatic stabilizers of the social security system and additional financial...
For the design of pension reform it is crucial to disentangle the employment effects related to the substitution and the income effect. In this paper we provide causal evidence about the importance of the income effect which in general has been assumed to be small or non-existent. We exploit a pension reform in Germany that raised pension benefits related to children. For...
Wealth is very unequally distributed in Germany. To effect a long-term reduction, the new Federal Government could focus on more effectively promoting home ownership, supplementary retirement provision, and other precautionary savings. However, a universal capital endowment could decrease wealth inequality much more rapidly and successfully. In this report, a universal capital endowment of up to 20,000 ...
The system of capital taxation consists of two instruments, namely a tax on profits and a depreciation allowance on investment. We will show in this paper that by acting on both instruments simultaneously it is possible to achieve both a growth and a fiscal net revenue target even in cases when a trade off prevails when each instrument is used individually. This is an application of the Tinbergen rule ...
Theory suggests that large firms are more likely to engage in lobbying behaviour and are geographically more mobile compared with smaller entities. Conditional on jurisdiction size, policy choices are thus predicted to depend on the shape of a jurisdiction's firm size distribution, with more business-oriented policies being enacted if jurisdictions host large firms. The paper empirically tests this ...
We compute participation tax rates across the EU and find that work disincentives inherent in tax-benefit systems largely depend on household composition and the individual's earner role within the household. We then estimate participation elasticities using an IV group estimator that enables us to investigate the responsiveness of individuals to work incentives. We contribute to the literature on ...
Real estate is taxed at comparatively low rates in Germany, with primarily the affluent benefiting from numerous existing tax privileges. This Weekly Report describes the current state of real estate taxation in Germany and outlines reform proposals that could increase tax revenue, improve the efficiency of the tax system, and reduce wealth and income inequality. In the case of property tax, value-based ...