Distributional and Fiscal Effects of the German Tax Reform 2000: A Behavioral Microsimulation Analysis
AbstractIn the year 2000, the German government passed the most ambitious tax reform in postwar German history aiming at a significant tax relief for households. Drawing on data of the GSOEP, we analyze the distributional and fiscal effects of the tax reform. Our analysis employs microsimulation techniques. Furthermore, we estimate behavioral effects of the tax reform using a discrete choice labor supply model. We find that the tax reform leads to a significant increase of net household income. The relative gains increase with taxable income, thus income inequality is rising. We also find that behavioral effects reduce the revenue loss.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by DIW Berlin, German Institute for Economic Research in its series Discussion Papers of DIW Berlin with number 419.
Length: 28 p.
Date of creation: 2004
Date of revision:
Tax reform; Behavioral effects; Distribution and fiscal effects;
Find related papers by JEL classification:
- H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
- H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
- J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-05-02 (All new papers)
- NEP-CMP-2004-05-02 (Computational Economics)
- NEP-PUB-2004-05-02 (Public Finance)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Victor R. Fuchs & Alan B. Krueger & James M. Poterba, 1998. "Economists' Views about Parameters, Values, and Policies: Survey Results in Labor and Public Economics," Journal of Economic Literature, American Economic Association, vol. 36(3), pages 1387-1425, September.
- Austan Goolsbee, 1998. "It's Not About the Money: Why Natural Experiments Don't Work on the Rich," NBER Working Papers 6395, National Bureau of Economic Research, Inc.
- John Creedy & Alan Duncan, 2001.
"Aggregating Labour Supply and Feedback Effects in Microsimulation,"
Melbourne Institute Working Paper Series
wp2001n15, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
- John Creedy & Alan Duncan, 2005. "Aggregating Labour Supply and Feedback Effects in Microsimulation," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 8(3), pages 277-290, September.
- John Creedy & Alan Duncan, 2001. "Aggregating labour supply and feedback effects in microsimulation," IFS Working Papers W01/24, Institute for Fiscal Studies.
- John Creedy & Alan Duncan, 2001. "Aggregating Labour Supply And Feedback Effects In Microsimulation," Department of Economics - Working Papers Series 823, The University of Melbourne.
- Richard Blundell & Alan Duncan & Julian McCrae & Costas Meghir, 2000. "The labour market impact of the working families’ tax credit," Fiscal Studies, Institute for Fiscal Studies, vol. 21(1), pages 75-103, March.
- Stefan Homburg, 2000. "German Tax Reform 2000. Description and Appraisal," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 57(4), pages 504-513, August.
- Gerhard Wagenhals, 2000.
"Incentive and Redistribution Effects of the German Tax Reform 2000,"
FinanzArchiv: Public Finance Analysis,
Mohr Siebeck, Tübingen, vol. 57(3), pages 316-, May.
- Gerhard Wagenhals, 2000. "Incentive and Redistribution Effects of the German Tax Reform 2000," Diskussionspapiere aus dem Institut fÃ¼r Volkswirtschaftslehre der UniversitÃ¤t Hohenheim 188/2000, Department of Economics, University of Hohenheim, Germany.
- Robert A. Moffitt & Mark Wilhelm, 1998.
"Taxation and the Labor Supply: Decisions of the Affluent,"
NBER Working Papers
6621, National Bureau of Economic Research, Inc.
- Robert A Moffitt & Mark Wilhelm, 2000. "Taxation and the Labor Supply - Decisions of the Affluent," Economics Working Paper Archive 414, The Johns Hopkins University,Department of Economics.
- Richard Blundell & Thomas MaCurdy, 1998.
"Labour supply: a review of alternative approaches,"
IFS Working Papers
W98/18, Institute for Fiscal Studies.
- Viktor Steiner & Katharina Wrohlich, 2004. "Household Taxation, Income Splitting and Labor Supply Incentives: A Microsimulation Study for Germany," Discussion Papers of DIW Berlin 421, DIW Berlin, German Institute for Economic Research.
- Peter Haan, 2004. "Discrete Choice Labor Supply: Conditional Logit vs. Random Coefficient Models," Discussion Papers of DIW Berlin 394, DIW Berlin, German Institute for Economic Research.
- Gerhard Wagenhals, 2000. "Arbeitsangebotseffekte des Steuer- und Transfersystems in der Bundesrepublik Deutschland," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), Justus-Liebig University Giessen, Department of Statistics and Economics, vol. 220(2), pages 191-213.
- Olivier Bargain & Kristian Orsini, 2004.
"In-work policies in Europe: killing two birds with one stone?,"
DELTA Working Papers
2004-13, DELTA (Ecole normale supérieure).
- Bargain, Olivier & Orsini, Kristian, 2006. "In-work policies in Europe: Killing two birds with one stone?," Labour Economics, Elsevier, vol. 13(6), pages 667-697, December.
- Bargain, Olivier & Orsini, Kristian, 2004. "In-Work Policies in Europe: Killing Two Birds with One Stone?," IZA Discussion Papers 1445, Institute for the Study of Labor (IZA).
- Alfred Boss & Achim Boss & Thomas Boss, 2008. "Der deutsche Einkommensteuertarif: Wieder eine Wachstumsbremse?," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 9(1), pages 102-124, 02.
- repec:ese:emodwp:em10-08 is not listed on IDEAS
- Amedeo Spadaro & Lucia Mangiavacchi & Luca Piccoli, 2012.
"Optimal taxation, social contract, and the four worlds of welfare capitalism,"
DEA Working Papers
51, Universitat de les Illes Balears, Departament d'Economía Aplicada.
- Amadéo Spadaro, 2008. "Optimal taxation, social contract and the four worlds of welfare capitalism," PSE Working Papers halshs-00586290, HAL.
- Amedeo Spadaro, 2008. "Optimal taxation, social contract and the four worlds of welfare capitalism," Working Papers 98, ECINEQ, Society for the Study of Economic Inequality.
- Olivier Bargain & Amedeo Spadaro, 2008. "Optimal Taxation, Social Contract and the Four Worlds of Welfare Capitalism," Working Papers 200816, School Of Economics, University College Dublin.
- Ondřej Schneider & Tomáš Jelínek, 2005. "Distributive Impact of Czech Social Security and Tax Systems: Dynamics in Early 2000s," Prague Economic Papers, University of Economics, Prague, vol. 2005(3), pages 221-237.
- Stefan Bach & Peter Haan & Ralf Maiterth & Caren Sureth, 2004. "Modelle für die Vermögensbesteuerung von natürlichen Personen und Kapitalgesellschaften: Konzepte, Aufkommen, wirtschaftliche Wirkungen ; Endbericht ; Forschungsprojekt im Auftrag der Bundestagsfra," DIW Berlin: Politikberatung kompakt, DIW Berlin, German Institute for Economic Research, volume 1, number pbk1.
- repec:ese:emodwp:em4-04 is not listed on IDEAS
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Bibliothek).
If references are entirely missing, you can add them using this form.