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Refereed essays Web of Science
In:
Empirical Economics
(2025), im Ersch. [online first: 2024-09-04]
| Cristina Checherita-Westphal, Nadine Leiner-Killinger, Teresa Schildmann
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DIW Weekly Report 25/26 / 2025
The new German federal government coalition is planning a significant tax break for workers of retirement age: the active pension (Aktivrente). With the active pension, workers who have reached the statutory retirement age may earn up to 2,000 euros a month tax-free, a move that the government is hoping will motivate more pensioners to work longer to counteract the skilled worker shortage. Microsimulation ...
2025| Stefan Bach, Hermann Buslei, Johannes Geyer, Peter Haan, Joris Pieper
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Diskussionspapiere 2117 / 2025
This paper documents the rise of corporate tax-base narrowing measures in the EU using a novel dataset covering both tax rate and tax base reforms implemented between 2014 and 2022. Our findings indicate a shift away from the ’cut rate – broaden base’ approach, as governments increasingly align corporate taxation with industrial policy objectives. We show that EU tax competition exerts downward pressure ...
2025| Jules Ducept, Sarah Godar
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Refereed essays Web of Science
The EU Taxonomy is a classification system for sustainable economic activities and a framework for various regulatory initiatives. Its primary objectives are to enhance transparency, to reduce greenwashing and ultimately to redirect capital toward more sustainable activities. However, since its introduction, market participants have raised concerns about whether the benefits justify the costs. This ...
In:
The Economists' Voice
(2025), im Ersch. [online first: 2025-05-02]
| Franziska Schütze, Benedikte Sandbaek
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DIW focus 11 / 2025
US trade policy has taken a sharp turn away from multilateralism, with sweeping new tariffs posing a serious threat to global supply chains. As the US remains the EU’s largest export market for goods, these measures carry significant repercussions for the bloc. Exports to the US are heavily reliant on a small number of companies and high-value business relationships—making the EU particularly vulnerable ...
2025| Sonali Chowdhry
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Infographic
23.10.2024
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Diskussionspapiere 2105 / 2024
German history over the past 125 years has been turbulent. Marked by two world wars, revolutions and major regime changes, as well as a hyperinflation and three currency reforms, expropriations and territorial divisions, it comprises extreme shocks to study the role of historical events, taxation, asset price changes, portfolio heterogeneity in affecting the wealth distribution in the long run. Combining ...
2024| Thilo N. H. Albers, Charlotte Bartels, Moritz Schularick
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Refereed essays Web of Science
We quantify the unintended effects of a low-wage payroll tax reduction using an equilibrium search model featuring bargaining, worker and firm productivity heterogeneity, labor taxes, and a minimum wage. The decentralized economy is inefficient due to search externalities and labor market policies. We estimate the model using French data and find that a significant reduction in low-wage payroll taxes ...
In:
Labour Economics
91 (2024), 102646, 27 S.
| Thomas Breda, Luke Haywood, Haomin Wang
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Diskussionspapiere 2102 / 2024
This paper analyzes the distribution and composition of pre-tax national income in Germany since 1992, combining personal income tax returns, household survey data, and national accounts. Inequality rose from the 1990s to the late 2000s due to falling labor incomes among the bottom 50% and rising incomes in the top 10%. This trend reversed after 2007 as labor incomes across the bottom 90% increased. ...
2024| Stefan Bach, Charlotte Bartels, Theresa Neef
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DIW Weekly Report 43/44 / 2024
With the transition from the German national emissions trading system to the European Emissions Trading System (EU ETS2) from 2027, final consumer prices for fossil motor and heating fuels are likely to rise significantly. This increase will affect low-income households more noticeably, as they spend a larger share of their income on energy than high-income households. Existing relief measures, such ...
2024| Stefan Bach, Mark Hamburg, Simon Meemken, Marlene Merker, Joris Pieper