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DIW Applied Micro Seminar
Abstract: I derive an optimal benefit-based corporate tax rate formula as a function of the public input elasticity of profits and the (net of) tax elasticity of profits. I argue that the existence of the corporate income tax should be justified by the benefit-based view of taxation: firms should pay tax according to the benefits they receive from the use of the public input. I argue that...
28.02.2020| Simon Naitram, University of the West Indies, Cave Hill
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DIW Weekly Report 43/44/45 / 2020
The high international capital positions of offshore financial centers (OFCs) have led to increasing research in the area. However, many unanswered questions remain, as OFC activities are secretive by nature and data is sparse. It is, for example, not even clear whether the financial industry actually physically operates on OFCs or if it artificially books services from other countries. Using a new ...
2020| Jakob Miethe
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DIW Weekly Report 41/42 / 2020
Two traditional options for reforming Ehegattensplitting, the joint taxation of married couples with full income splitting, are de facto income splitting (Realsplitting) or individual taxation with a transferable personal allowance. However, these proposals do not significantly reduce the marginal tax burden on the secondary earner’s income and therefore only minimally encourage married women to participate ...
2020| Stefan Bach, Björn Fischer, Peter Haan, Katharina Wrohlich
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DIW Weekly Report 35 / 2020
Following the global financial crisis of 2008/2009, many European countries introduced bank levies to enable financial institutions to share in the costs of future banking crises via resolution and restructuring funds. Simultaneously, bank levies can set an incentive for banks to reduce their leverage, thereby achieving a more stable capital structure. Using information from banks’ balance sheets, ...
2020| Franziska Bremus, Lena Tonzer
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Externe Monographien
To finance resolution funds, the regulatory toolkit has been expanded in many countries by bank levies. In addition, these levies are often designed to reduce incentives for banks to rely excessively on wholesale funding resulting in high leverage ratios. At the same time, corporate income taxation biases banks’ capital structure towards debt financing in light of the deductibility of interest on debt. ...
Vienna:
SUERF,
2020,
6 S.
(SUERF Policy Briefs ; 21/2020)
| Franziska Bremus, Kirsten Schmidt, Lena Tonzer
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Externe referierte Aufsätze
We examine the effect of local business taxation and local public good and service (PIGS) provision on the number and spatial distribution of new firms. Testing ground is Germany and we rely on the universe of firm foundations between 1998 and 2006. Methodologically, we estimate fixed effects poisson models coupled with a control function approach. The results suggest that a 1%-decrease in the business ...
In:
Regional Science & Urban Economics
83 (2020), 103525, 21 S.
| Nadine Riedel, Martin Simmler, Christian Wittrock
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Diskussionspapiere 1881 / 2020
“Sin taxes” are high on the political agenda in the global fight against obesity. Ac- cording to theory, they are welfare improving if consumers with low self-control are at least as price responsive as consumers with high self-control, even in the absence of ex- ternalities. In this paper, we investigate if consumers with low and high self-control react differently to sin tax variation. For identification, ...
2020| Renke Schmacker, Sinne Smed
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Externe referierte Aufsätze
While in January 2012, Denmark increased the long-standing tax on sugary soft drinks, the tax was cut byhalf in July 2013 and then completely repealed in January 2014. In this study, we examine whetherincreases and cuts of the soft drink tax lead to similar over- or under-shifting to prices and to similardemand responses. We use longitudinal scanner data of 1,282 Danish households to estimate within-product ...
In:
Economics and Human Biology
37 (2020), 100864, 10 S.
| Renke Schmacker, Sinne Smed
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Externe referierte Aufsätze
Regulatory bank levies set incentives for banks to reduce leverage. At the same time, corporate income taxation makes funding through debt more attractive. In this paper, we explore how regulatory levies affect bank capital structure, depending on corporate income taxation. Based on bank balance sheet data from 2006 to 2014 for a panel of EU-banks, our analysis yields three main results: The introduction ...
In:
Journal of Banking & Finance
118 (2020), 105874
| Franziska Bremus, Kirsten Schmidt, Lena Tonzer
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Diskussionspapiere 1845 / 2020
We decompose permanent 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. Both permanent wage and hours shocks are important to explain earnings risk, but wage shocks have greater relevance. ...
2020| Robin Jessen, Johannes König