Documentation FiFoSiM: Integrated Tax Benefit Microsimulation and CGE Model

ABSTRACT: This paper describes FiFoSiM, the integrated tax benefit microsimulation and computable general equilibrium (CGE) model of the Center of Public Economics at the University of Cologne. FiFoSiM consists of three main parts. The first part is a static tax benefit microsimulation module. The second part adds a behavioural component to the model: an econometrically estimated labour supply model. The third module is a CGE model which allows the user of FiFoSiM to assess the global economic effects of policy measures. Two specific features distinguish FiFoSiM from other tax benefit models: First, the simultaneous use of two databases for the tax benefit module and second, the linkage of the tax benefit model to a CGE model

Measuring Distributional Effects of Fiscal Reforms

The purpose of this paper is to provide an overview of how to analyse the distributional effects of fiscal reforms. Thereby, distributional effects shall be differentiated by four subconcepts, i.e. 1.) the traditional concept of inequality, 2.) the rather novel concept of polarisation, 3.) the concept of progression in taxation, and 4.) the concepts of income poverty and richness. The concept of inequality and the concept of income poverty are the by far most widely applied concepts in empirical analyses, probably since they appear to be the most transparent ones in their structure as well as the most controversial ones in political affairs. However, the concepts of richness, polarisation and progression in taxation shall additionally be subject of this analysis, since they appear to be useful devices on the course of analysing cause and effect of the other two concepts

Drivers of Health Care Expenditure: Does Baumol's Cost Disease Loom Large?

According to Baumol (1993) health care epitomises Baumol's cost disease. Sectors that suffer from Baumol's cost disease are characterised by slow productivity growth due to a high labour coefficient. As a result, unit costs of these sectors rise inexorably if the respective wages increase with productivity growth of the progressive industries such as manufacturing. Thus, according to Baumol (1993) the secular rise in health-care expenditure has been unavoidable. This present paper demonstrates that health care is contracted by Baumol's cost disease, but only to a minor extent. Consequently, policy-makers have more leeway to curbever-increasing health-care expenditure than is suggested by Baumol (1993) and other authors. In addition, we test the implications of Baumol's cost disease for health care by avoiding the well-known flaws in constructing medical price indices. Therefore, the adjusted Baumol variable derived in this paper is also extremely appropriate to test the validity of Baumol's cost diseases of other service industries such as education or the live performing arts. Additionally, our analysis suggests that health care is rather a necessity than a luxury at the national level, which conflicts with macroeconomic evidence provided in the relevant literature

18 Billion at One Blow: Evaluating Germany's Twenty Biggest Tax Expenditures

“Periodically evaluating the size and effectiveness of tax expenditures is a necessary (although not sufficient) requirement for good government.” Leo Burman’s appeal of 2003 is quoted often but followed seldom. The paper reflects on the evaluation of Germany’s twenty biggest tax expenditures commissioned by the Federal Government in 2007 and completed by a team of three European research institutes in 2009. Based on a methodological framework developed for the uniform evaluation of dissimilar tax expenditures the research team worked through tax privileges worth more than 18 billion euro, i.e. 85 per cent of all official German tax subsidies. The analysis covered exemptions from corporate and personal income taxes, value-added tax (VAT) and energy taxes. To our knowledge, this was one of the biggest evaluations of tax expenditures ever concluded in the world. The paper discusses the common methodology applied in the evaluation; and the lessons learned from the research effort. It gives an overview of evaluation results and eventual policy lessons to be learned from them

Wissenschaftliche Unterstuetzung bei der Erarbeitung eines Abfallabgabengesetzes

Taking initial proposals of the German federal government into account, this report develops guidelines for the design of an economically efficient charge on waste generation and disposal. The actual costs of landfill and incineration are stated. For selected wastes the report also containes detailed information about recycling options and their costs. Apart from that several special issues concerning the envisaged new law have been dealt with; e.g. the expected revenue of the charge or its compliance with EEC-law. (orig.)Auf der Grundlage erster Referentenentwuerfe fuer ein Bundes-Abfallabgabengesetz werden Ueberlegungen zur Tarifkonstruktion der Abgabe im Hinblick auf ihre Lenkungswirkung angestellt. Dazu werden u.a. die aktuellen Abfalldeponierungs- und -verbrennungspreise in der Bundesrepublik Deutschland ermittelt. Fuer einzelne Branchen und Abfallarten erfolgt eine Quantifizierung von spezifischen Vermeidungs- und Verwertungskosten. Verschiedene gutachterliche Stellungnahmen zu Einzelfragen prognostizieren u.a. das kuenftige Mittelaufkommen aus der Abfallabgabe u. ueberpruefen die EG-rechtliche Konformitaet des Gesetzesentwurfes. (orig.)SIGLEAvailable from TIB Hannover: RN 8908(93-144) / FIZ - Fachinformationszzentrum Karlsruhe / TIB - Technische InformationsbibliothekBundesministerium fuer Umwelt, Naturschutz und Reaktorsicherheit, Bonn (Germany)DEGerman

Die europaeische Beihilfenaufsicht im Umweltschutz - Darstellung und Kritik des neuen Gemeinschaftsrahmens

On 3 February 2001 the European Commission adopted the new Community guidelines on state aid for environmental protection. These guidelines outline the methods and criteria used by the Commission when controlling environmental state aid according to Art. 87 and 88 of the EC-Treaty. The study analyses the development of the new guidelines and their potential effects on environmental protection and environmental policy in the Member States of the European Union. In essence, the guidelines display three harmful tendencies: - they hamper progressive and innovative environmental policy that improves on 'least common denominator'-Community standards; - they do not respect the limits of the Commissions's authority, and interfere with the Member States' exclusive authority to decide on strategies and instruments of their respective environmental policies, and they especially affect Member States' choices between different energy sources and the general structure of its energy supply; - finally, they do not improve the protection of air competition on the common market. Based on these findings, the report delineates perspectives for an aid control policy that protects fair competition, and that gives incentives for voluntary national and regional environmental protection, allows for the equal treatment of clean techniques, and provides a consistent framework for exemptions from ecological taxes and environmental levies at the same time. (orig.)Die Europaeische Kommission hat mit Wirkung vom 3. Februar 2001 einen neuen Gemeinschaftsrahmen fuer staatliche Umweltschutzbeihilfen erlassen. Dieser skizziert die Verfahren und Kriterien, welche die Kommission in ihrer Ueberpruefung staatlicher Umweltschutzbeihilfen auf Vereinbarkeit mit dem gemeinsamen Markt nach Art. 87 u. 88 EGV nutzen will. Die vorliegende Untersuchung schildert die Entstehung des Beihilferahmens und analysiert dessen potenzielle Wirkungen auf den Umweltschutz und die Umweltpolitik in den Mitgliedstaaten der Europaeischen Union. Im Ergebnis weist der Umweltbeihilferahmen drei negative Haupttendenzen auf: - Er behindert fortschrittlichen, ueber die Gemeinschaftsnormen hinausgehenden innovativen, integrierten und praeventiven Umweltschutz in den Mitgliedstaaten und gefaehrdet dadurch die auch im gemeinschaftlichen Interesse liegenden weiteren Verbesserungen der Umweltqualitaet; - Er macht nicht an den Kompetenzgrenzen der Kommission halt und greift in die eigenverantwortlich von den Mitgliedstaaten zu regelnde Strategie, Instrumentierung und Durchfuehrung der Umweltpolitik und insbesondere in die freie instrumentelle Wahl der Mitgliedstaaten zur Steuerung ihrer Energietraeger- und Energieversorgungsstruktur ein; - Er traegt bei alledem keineswegs zu einer Verstaerkung des Wettbewerbsschutzes bei. Als Eckpunkte fuer eine verbesserte Beihilfekontrolle werden Gestaltungsoptionen zur Unterstuetzung freiwilliger nationaler und regionaler Umweltschutzanstrengungen, zur Forcierung definitiver Umweltentlastung und zur Gleichbehandlung integrierter Anlagen und zur systematischen Behandlung von Beguenstigungsregelungen im Rahmen von Oekosteuern und Umweltabgaben formuliert. (orig.)SIGLEAvailable from TIB Hannover: RN 8422(2002,1) / FIZ - Fachinformationszzentrum Karlsruhe / TIB - Technische InformationsbibliothekBundesministerium fuer Umwelt, Naturschutz und Reaktorsicherheit, Berlin (Germany)DEGerman