In 2007 and 2008 Polish governments introduced a series of reforms which led to a substantial reduction in the tax "wedge" (in Polish: "klin") on labour. These consisted of reductions in the disability rate of social security contributions (SSCs) and an introduction of an income tax credit for families with children. We show that the SSCs reforms on their own brought much greater reductions in the ...
This paper empirically investigates distributional and welfare effects of Germany's year 2000 income tax reform. The reform is simulated in an ex-ante behavioral microsimulation approach. Dead weight loss of changes in capital income taxation is estimated in a structural model for household savings and asset demand applied to German survey data. Significant reductions in tax rates result in income ...
This paper empirically investigates the effects of differential income taxation on households' portfolio choice and asset allocation applying a two-stage budgeting model of asset demand to German survey data. The model is structured into the discrete asset choice and the continuous asset choice, and the marginal income tax rate is simulated in a module of income taxation. Households that face relatively ...
In this paper we use a dynamic structural life-cycle model to analyze the employment, fiscal and welfare effects induced by unemployment insurance. The model features a detailed specification of the tax and transfer system, including unemployment insurance benefits which depend on an individual's employment and earnings history. The model also captures the endogenous accumulation of experience which ...
We analyzed the revenue and economic effects of business and income taxation and developed microsimulation models in cooperation with the German Federal Ministry of Finance. The models were used for research projects and evaluation requests on behalf of the ministry. The research cooperation ended in 2011.
The aim of this research project was to empirically analyze the incentive as well as welfare effects of different family policy reforms that have been discussed in the past years. The starting point for this study is a detailed analysis of the current system of family support and its effects on household labor supply and welfare. The challenge in this empirical analysis is the adequate modelling...
We analyzed the economic impact and institutional issues of wealth taxation (recurrent wealth tax, inheritance and gift tax, local taxes on land and buildings, one-time capital levy, real estate appraisal).
Does tax policy affect entrepreneurial choice? We use two tax reforms in Germany as "natural experiments". These reforms reduced the marginal income tax rate for entrepreneurs with income above a certain threshold, with the exception of freelance professionals. The two conditions for belonging to the treatment group allow us to apply a "difference-in-difference-in-difference" identification strategy ...
