Implementing a Dual Income Tax in Germany – Effects on Labor Supply and Income Distribution

2009 ◽  
Vol 229 (1) ◽  
Author(s):  
Gerhard Wagenhals ◽  
Jürgen Buck
Keyword(s):  
Labor Supply ◽  
Computable General Equilibrium ◽  
Income Tax ◽  
German Economy ◽  
Computable General Equilibrium Models ◽  
Dual Income Tax ◽  
Positive Effects ◽  
Dual Income ◽  
Microeconometric Evaluation ◽  
The Impact

SummaryExisting quantitative studies on the impact of a dual income tax on the German economy usually are based on computable general equilibrium models. They assume one representative household. Their results are sensitive to one behavioral parameter, the labor supply elasticity, which is assumed to be given exogenously. This paper presents a microeconometric evaluation of the labor supply and distribution effects of a dual income tax in Germany based on a representative sample of the German population.We observe small positive effects on labor supply and a small increase in economic inequality.

scholarly journals Tuition Fees and the Dual Income Tax: The Optimality of the Nordic Income Tax System Reconsidered

2011 ◽  
Vol 12 (1) ◽  
pp. 59-84 ◽  
Author(s):  
Dirk Schindler
Keyword(s):  
Labor Supply ◽  
Educational Policy ◽  
Income Tax ◽  
Skilled Labor ◽  
Educational Investment ◽  
Unskilled Labor ◽  
Tax System ◽  
Dual Income Tax ◽  
Optimal Tax ◽  
Dual Income

Abstract We examine the optimal tax and education policy in the case of a dual income tax. Incorporating an educational sector and endogenous capital taxation, we show that the results in Nielsen and Sørensen’s study are vulnerable with respect to assumptions on the elasticity of unskilled labor supply. Tax progressivity results residually, whereas educational policy guarantees an optimal tax wedge on, but not necessarily efficiency in, educational investment. The less elastic are the unobservable educational investment and skilled labor (the latter relative to unskilled labor supply), and the more educational policy cares about the skilled labor supply, the more progressive the tax system will be. Education will be subsidized on a net basis if the complementarity effect on the skilled labor supply is strong and important; however, there is also an offsetting substitutability effect of the unskilled labor supply at play.

Structural progression measures for dual income tax systems

2014 ◽  
Vol 13 (1) ◽  
pp. 1-15
Author(s):  
Arnaldur Sölvi Kristjánsson ◽  
Peter J. Lambert
Keyword(s):  
Income Tax ◽  
Dual Income Tax ◽  
Structural Progression ◽  
Tax Systems ◽  
Dual Income

Measuring the Impact of Tourism on Economic Growth

2007 ◽  
Vol 13 (3) ◽  
pp. 379-388 ◽  
Author(s):  
Stanislav Ivanov ◽  
Craig Webster
Keyword(s):  
Economic Growth ◽  
General Equilibrium ◽  
Computable General Equilibrium ◽  
Gdp Per Capita ◽  
Equilibrium Models ◽  
Computable General Equilibrium Models ◽  
Real Gdp ◽  
Real Gdp Per Capita ◽  
Per Capita ◽  
The Impact

This paper presents a methodology for measuring the contribution of tourism to an economy's growth, which is tested with data for Cyprus, Greece and Spain. The authors use the growth of real GDP per capita as a measure of economic growth and disaggregate it into economic growth generated by tourism and economic growth generated by other industries. The methodology is compared with other existing methodologies; namely, Tourism Satellite Account, Computable General Equilibrium models and econometric modelling of economic growth.

scholarly journals Digitalization, Multinationals and Employment: An Empirical Analysis of Their Causal Relationships

2019 ◽  
Vol 239 (3) ◽  
pp. 399-439 ◽  
Author(s):  
Antonio G. Gómez-Plana ◽  
María C. Latorre
Keyword(s):  
Information And Communication Technologies ◽  
Computable General Equilibrium ◽  
Full Employment ◽  
Communication Technologies ◽  
Real Wages ◽  
Computable General Equilibrium Models ◽  
Positive Effects ◽  
High Unemployment Rate ◽  
Information And Communication

Abstract This study measures the effects of digitalization related to Information and Communication Technologies (ICT) investment on employment and other economic variables according to firms‘ ownership. We present two computable general equilibrium models (with full employment and with unemployment) which differentiate two types of firms: National and foreign multinationals (MNEs). Both types of firms allow for the substitution between labour and ICT capital. We conclude that ICT investments significantly create jobs and raise real wages, GDP and welfare. The aggregate positive effects are stronger for ICT investment in national firms than in foreign MNEs although the sign of some sectoral effects can be negative. We also analyze the role of wage flexibility in this context, with the most favorable results related to scenarios where wages are more rigid for both cases, when investors are national firms or foreign MNEs. The model is applied to the case of Spain, a country with a high unemployment rate where ICT investment has been large since the mid 1990s.

scholarly journals International spillover effects of U.S. tax reforms: evidence from Germany

2020 ◽  
Author(s):  
Désirée I Christofzik ◽  
Steffen Elstner
Keyword(s):  
German Economy ◽  
Spillover Effects ◽  
Vector Autoregressions ◽  
Negative Effects ◽  
Tax Reforms ◽  
Positive Effects ◽  
Tax Legislation ◽  
Tax Shocks ◽  
The Impact ◽  
Structural Vector

Abstract This paper explores the international transmission of U.S. tax shocks. Using structural vector autoregressions, we study the impact on the German economy and on German tax legislation. Our results suggest that, after a U.S. tax cut, German GDP increases only moderately. Positive effects via the income channel outweigh negative effects stemming from price developments. Significant changes in the transmission channels arise by distinguishing between the types of the U.S. tax shock. German tax policy either reacts with diametric measures, or remains passive when considering the whole sample period. For a sample starting in 1980, we find that, in particular, after U.S. corporate income tax cuts, tax reductions are also implemented in Germany.

scholarly journals A growth oriented dual income tax

2007 ◽  
Vol 14 (2) ◽  
pp. 191-221 ◽  
Author(s):  
Christian Keuschnigg ◽  
Martin D. Dietz
Keyword(s):  
Income Tax ◽  
Dual Income Tax ◽  
Dual Income

scholarly journals Income Shifting in the Spanish Dual Income Tax*

2017 ◽  
Vol 39 (1) ◽  
pp. 95-120 ◽  
Author(s):  
Julio López-Laborda ◽  
Jaime Vallés-Giménez ◽  
Anabel Zárate-Marco
Keyword(s):  
Income Tax ◽  
Income Shifting ◽  
Dual Income Tax ◽  
Dual Income
Sign in / Sign up

Export Citation Format

Share Document