Estimating dynamic tax revenue elasticities for Germany
AbstractWe analyse tax revenue elasticities by applying dynamic models to a new disaggregated dataset for Germany, which is adjusted for the effects of tax reforms. We estimate long-run elasticities that are substantially lower than in comparable studies for profit-related taxes and are slightly lower for value-added taxes, whereas the long-run elasticity for wage taxes is close to the consensus estimate in the literature. Additionally, we find that differences between short- and long-run elasticities are particularly important with respect to profit-related taxes. Here we estimate a far lower contemporaneous response to tax base changes than other studies and a dynamic reaction pattern spanning several years, which can be explained, for example, by tax collection lags. --
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 Deutsche Bundesbank, Research Centre in its series Discussion Papers with number 23/2012.
Date of creation: 2012
Date of revision:
Dynamic tax revenue elasticities; Disaggregated analysis; Error correction models;
Find related papers by JEL classification:
- H2 - Public Economics - - Taxation, Subsidies, and Revenue
- H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
- H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
- E26 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Informal Economy; Underground Economy
This paper has been announced in the following NEP Reports:
- NEP-ACC-2012-10-20 (Accounting & Auditing)
- NEP-ALL-2012-10-20 (All new papers)
- NEP-PBE-2012-10-20 (Public Economics)
- NEP-PUB-2012-10-20 (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.:
- Uwe Hassler & Jürgen Wolters, 2006.
"Autoregressive distributed lag models and cointegration,"
AStA Advances in Statistical Analysis,
Springer, vol. 90(1), pages 59-74, March.
- Hassler, Uwe & Wolters, Jürgen, 2005. "Autoregressive distributed lag models and cointegration," Discussion Papers 2005/22, Free University Berlin, School of Business & Economics.
- Mark W. Nichols & Mehmet Serkan Tosun, 2007. "The Income Elasticity of Casino Revenues: Short-Run and Long-Run Estimates," Working Papers 07-015, University of Nevada, Reno, Department of Economics & University of Nevada, Reno , Department of Resource Economics.
- Thiess Büttner & Anita Dehne & Gebhard Flaig & Oliver Hülsewig & Peter Winker, 2006. "Berechnung der BIP-Elastizitäten öffentlicher Ausgaben und Einnahmen zu Prognosezwecken und Diskussion ihrer Volatilität : Studie im Auftrag des Bundesministeriums der Finanzen," ifo Forschungsberichte, Ifo Institute for Economic Research at the University of Munich, number 28, December.
- Christian Breuer, 2012. "Keine strukturelle Verbesserung der Haushaltslage – Zu den Ergebnissen der Steuerschätzung vom November 2012," Ifo Schnelldienst, Ifo Institute for Economic Research at the University of Munich, vol. 65(22), pages 13-18, November.
- Christian Breuer, 2013. "Kassensturz nach der Bundestagswahl: Zu den Ergebnissen der Steuerschätzung vom November 2013," Ifo Schnelldienst, Ifo Institute for Economic Research at the University of Munich, vol. 66(22), pages 64-69, November.
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.