This study examines how inheritance and gift tax systems in combination with gendered parental transfer behavior strengthen gender wealth inequalities. Gender differences in transfers can be reproduced if men benefit differently than women from tax exemptions. This might happen when men and women receive different types of assets where only some are tax exempted. To investigate gendered parental...
This project serves to further develop the open source software GETTSIM. GETTSIM is a simulation model written in the programming language Python, which can depict the German tax and transfer system. The software offers a multitude of applications in research and teaching. It is developed in cooperation with the IZA (Institute of Labor Economics) as well as other German research institutes and...
Policymakers widely use tax-based incentives to spur investment and stimulate economic growth. Tax policy has been at the center of emergency measures during the Covid-19 pandemic, and it is now as countries face a significant deterioration in public finances. Yet, empirical tax research is still in disagreement on how taxes affect business investment. We investigate the effect of local business...
In this project, a top-corrected wealth distribution is estimated on the basis of the inheritance tax statistics and the SOEP. We analyze the concentration of wealth, the portfolios of the wealthy, the importance of inherited wealth, the gender inheritance gap and the gender wealth gap as well as reactions to inheritance taxation.
We decompose earnings risk into contributions from hours and wage shocks. To distinguish between hours shocks, modeled as innovations to the marginal disutility of work, and labor supply reactions to wage shocks, we formulate a life-cycle model of consumption and labor supply. For estimation, we use data on married American men from the Panel Study of Income Dynamics. Permanent wage shocks explain ...
We analyse the impact of the temporary tax reduction on diesel and gasoline prices from June to the end of August 2022 in Germany. By implementing a synthetic difference-in-differences approach with different baskets of European countries, we find a significant reduction in prices by 33.8–34.4 cents per litre for gasoline and 12.2–14.6 cents per litre for diesel. These results are robust to variations ...
According to theory, "sin taxes" are welfare improving if consumers with low self-control respond at least as much to the tax as consumers with high self-control. We investigate empirically if demand response to soft drink and fat tax variations in Denmark depends on consumers' self-control. We use a unique home-scan panel that includes a survey measure of self-control. When taxes increase, consumers ...
This paper provides a comprehensive evaluation of the world’s largest environmental tax reform. We compare carbon and air pollutant emissions of the German transport sector and synthetic counterfactuals following the 1999 eco-tax reform, and find average re- ductions in external damages of around 80 billion Euros. We further show that the eco-tax induced low-carbon innovation and document much stronger ...