How do Germans react to the commuting allowance?
AbstractI research the consequences of changes in the deductibility of commuting costs in Germany from 2001 to 2006. Official figures provided by the Federal Statistical Office highlight the fact that German taxpayers claimed deductions for commuting allowances to the tune of 23-29 billion e over the years 2001-2004. Granting or not granting these deductions thus has wide ranging fiscal implications, a point made more poignant by the fact that Anglo-Saxon countries have never allowed them. To determine whether Germans do react to the commuting allowance, I exploit the variation in the amount per kilometer granted between fiscal years 2003 and 2004 by looking at taxpayers featuring sufficient labor earnings and longish commuting distances whose deductions unambiguously exceed the basic allowance in the German Income Tax Code. I try to find evidence of changes along several behavioral margins in response to variations in the deduction granted. Labor supply behavior turns out to be unresponsive while the commuting distances do show a palpable reaction. --
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 arqus - Arbeitskreis Quantitative Steuerlehre in its series arqus Discussion Papers in Quantitative Tax Research with number 88.
Date of creation: 2009
Date of revision:
Contact details of provider:
Web page: http://www.arqus.info/
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.:
- van Ommeren, Jos & Fosgerau, Mogens, 2008.
"Workers' marginal costs of commuting,"
12010, University Library of Munich, Germany.
- van Ommeren, Jos N. & van der Straaten, J. Willemijn, 2008. "The effect of search imperfections on commuting behaviour: Evidence from employed and self-employed workers," Regional Science and Urban Economics, Elsevier, vol. 38(2), pages 127-147, March.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (ZBW - German National Library of Economics).
If references are entirely missing, you can add them using this form.