Germany's Fiscal Policy Stance
AbstractThis paper analyzes Germany’s fiscal policy position. Half of GDP passes through the hands of government, a high debt to GDP ratio limits the maneuvering, and the revenue sharing mechanism prevents a competitive federalism. Most importantly for the future, the federal finance minister has to pick up the deficits that the social security systems leave behind. Transfers from the public budget to the social security systems are large, and since 1998 the elasticity of transfers to nominal GDP is 4. This trend will intensify in an aging society. All these factors weaken the prospects for reform that Germany must undertake in its taxation and expenditure system in view of the changed international conditions.
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Bibliographic InfoPaper provided by Kiel Institute for the World Economy in its series Kiel Working Papers with number 1196.
Length: 48 pages
Date of creation: Jan 2004
Date of revision:
Fiscal Policy; Subsidies; German Unification; Debt; Revenue Sharing; Social Policy;
Find related papers by JEL classification:
- E12 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Keynes; Keynesian; Post-Keynesian
- E13 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Neoclassical
- H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
- I00 - Health, Education, and Welfare - - General - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-04-11 (All new papers)
- NEP-MAC-2004-04-11 (Macroeconomics)
- NEP-PBE-2004-04-11 (Public Economics)
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.:
- Siebert, Horst, 2000. "Zum Paradigma des Standortwettbewerbs," Beiträge zur Ordnungstheorie und Ordnungspolitik, Mohr Siebeck, Tübingen & Walter Eucken Institut, Freiburg, Germany, edition 1, number urn:isbn:9783161473845, October.
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