32 research outputs found
Household Savings Decision and Income Uncertainty
This paper empirically investigates the effects of changes in the interest rate as well as transitory income uncertainty on households' consumption-savings decision. Applying a structural demand model to German survey data, we estimate the uncompensated interest rate elasticity for savings, in line with the literature, to around zero. Accordingly, any policy-induced variation of net returns to savings is expected to have no significant effects on the level of savings. Moreover, we find significant effects of precautionary savings on the consumption-savings decision. As a result of a doubling of transitory income uncertainty, an average household increases savings by 4:4%. These effects vary by household composition and social status.Consumption-savings decision, interest rate elasticity of savings, income uncertainty
A Microdata Approach for Germany
This paper investigates empirically the consumer demand of environmentally
relevant goods for Germany, as well as their relationship to the demand for
leisure. Higher prices for energy goods like gas, electricity or fuel oil due
to higher indirect taxation amongst others may have serious welfare and
distributional effects for households. Also, there is very little evidence of
the labor market implications of environmental taxation, as there is e.g. no
quantification of labor supply effects, respectively leisure demand effects
for Germany. Using a demand system to estimate the price, cross-price and
income effects of the goods mobility, electricity, heating and leisure from
microdata, there will also be accounted for the extensive demand for leisure,
which is the not negligible labor market participation. Additionally, the
extensive and intensive leisure demand is combined to total leisure demand
elasticities, which can then be used for welfare and behavior analyses
Evidence from Demand System Estimation for Germany
Whether couples pool their resources and behave like a unit or spend their income individually is crucial for social and tax policy. In this paper, I provide a test of the income pooling hypothesis using administrative cross-sectional survey data on expenditures and individual incomes of couple households in Germany. The test is performed within the Quadratic Almost Ideal Demand System (QUAIDS) framework, which allows for an endogenous expenditure budget and endogenous individual income contribution shares in an instrumental variables approach. Although the hypothesis is broadly rejected, there are significant differences regarding the marital status, the presence of at least one child in the household and whether the household is located in a former West or East German federal state. Married couples and couples with children are closer to the acceptance of the hypothesis than unmarried couples without children
A Wealth Tax on the Rich to Bring down Public Debt?: Revenue and Distributional Effects of a Capital Levy
The idea of higher wealth taxes to finance the mounting public debt in the wake of the financial crises is gaining ground in several OECD countries. We evaluate the revenue and distributional effects of a one-time capital levy on personal net wealth that is currently on the German political agenda. We use survey data from the German Socio-Economic Panel (SOEP) and estimate the net wealth distribution at the very top, based on publicly available information about very rich Germans. Since net wealth is strongly concentrated, the capital levy could raise substantial revenue, even if relatively high personal allowances are granted. We also analyze the compliance and administrative costs of the capital levy.Capital levy, wealth distribution, microsimulation
A Wealth Tax on the Rich to Bring down Public Debt?: Revenue and Distributional Effects of a Capital Levy
The idea of higher wealth taxes to finance the mounting public debt in the wake of the financial crises is gaining ground in several OECD countries. We evaluate the revenue and distributional effects of a one-time capital levy on personal net wealth that is currently on the German political agenda. We use survey data from the German Socio-Economic Panel (SOEP) and estimate the net wealth distribution at the very top, based on publicly available information about very rich Germans. Since net wealth is strongly concentrated, the capital levy could raise substantial revenue, even if relatively high personal allowances are granted. We also analyze the compliance and administrative costs of the capital levy.Capital levy, wealth distribution, microsimulation
A wealth tax on the rich to bring down public debt? Revenue and distributional effects of a capital levy
The idea of higher wealth taxes to finance the mounting public debt in the wake of the financial crises is gaining ground in several OECD countries. We evaluate the revenue and distributional effects of a one-time capital levy on personal net wealth that is currently on the German political agenda. We use survey data from the German Socio-Economic Panel (SOEP) and estimate the net wealth distribution at the very top, based on publicly available information about very rich Germans. Since net wealth is strongly concentrated, the capital levy could raise substantial revenue, even if relatively high personal allowances are granted. We also analyze the compliance and administrative costs of the capital levy. --Capital levy,wealth distribution,microsimulation
Evidence from repeated cross-section data for Germany
The life-cycle hypothesis implies that consumption would not decline at
retirement. However, several studies found relevant declines in food
consumption after retirement for the United States. Others concluded that this
contradiction of the life-cycle hypothesis is solved by allowing for broader
measures of consumption than food. Using repeated crosssection data for
Germany, this paper analyzes the retirement consumption puzzle for the German
case. For our broadest consumption measure, which includes the flow of
durables’ consumption, we find, on average, no significant consumption decline
at retirement. This also holds if the potential endogeneity of indidual
retirement is controlled for in instrumental variable regressions. We also
find heterogeneity in retirement effects among birth cohorts, the level of
household wealth, and the level of consumption, but these effects do not
support the hypothesis that retirement is associated with a strong reduction
of consumption among poorer households
Demographic change and income tax revenue in Germany: a microsimulation approach
As a result of high net migration, both Germany’s overall population and its workforce potential are currently growing. However, within a few years this demographic trend will be reversed, leading to a decline in population as a whole and especially in the number of those gainfully employed. In this paper, we use a population projection to apply a static ageing approach to German micro data. Then, we simulate income tax revenue with a microsimulation model for the future population. In 20 years’ time the annual price-adjusted income tax loss is estimated to be equal to € 18 billion or almost 7 per cent. This fall in income tax revenue resulting from a shrinking and ageing society will place a huge strain on public finances in Germany, an effect further enhanced by the shift of the tax burden from pension contributions to pension benefits
Sparer reagieren kaum auf Zinsänderungen
Wie reagieren private Haushalte auf eine Veränderung der Verbraucherpreise oder des Zinsniveaus? Reduzieren sie gegenwärtigen Konsum und sparen stattdessen für die Zukunft, wenn Preise oder Zinssätze steigen? Oder lassen sie ihren einmal gewählten Konsumpfad unverändert? Nur wer die Antworten auf diese Fragen kennt, kann steuer- und sozialpolitische Reformen wie die Einführung einer Abgeltungsteuer, verbesserte steuerliche Abzugsmöglichkeiten von Altersvorsorgeleistungen oder Änderungen der Mehrwertsteuersätze richtig planen und ihre Wirkung prognostizieren. Die vorliegende Untersuchung analysiert das Sparverhalten privater Haushalte in Deutschland und zeigt, dass diese ihr Konsum-Spar- Verhalten zumindest kurzfristig kaum verändern, selbst wenn Schwankungen im Preis- oder Zinsniveau dafür monetäre Anreize bieten.Consumption-savings decision, interest rate elasticity of savings, savings function, intertemporal QUAIDS
Revenue and distributional effects of a capital levy
The idea of higher wealth taxes to finance the mounting public debt in the
wake of the financial crises is gaining ground in several OECD countries. We
evaluate the revenue and distributional effects of a one-time capital levy on
personal net wealth that is currently on the German political agenda. We use
survey data from the German Socio-Economic Panel (SOEP) and estimate the net
wealth distribution at the very top, based on publicly available information
about very rich Germans. Since net wealth is strongly concentrated, the
capital levy could raise substantial revenue, even if relatively high personal
allowances are granted. We also analyze the compliance and administrative
costs of the capital levy