Die aktuellen Reformen der Sozialleistungen

Mit den im Zuge der Umsetzung der Agenda 2010 initiierten Reformen ist das Ziel verbunden, der Kostenexplosion einer sich über die Jahre zunehmend fehl entwickelnden und zum Teil falsch verstandenen Sozialstaatlichkeit Einhalt zu gebieten und damit einen Kollaps der Sozialsysteme zu verhindern. Welche Veränderungen stehen bei den Sozialleistungen zum 1. Januar 2005 konkret an? Wie sind diese volkswirtschaftlich zu beurteilen, und welche Beschäftigungseffekte sind zu erwarten

Hartz IV: The German ?Word of the Year 2004? and the Country?s Hope to overcome its Problem of Unemployment

When the centre-left government came into power in Germany in 1998, a core promise of the new Chancellor, Schroeder, was to reduce the lack of jobs and to increase welfare. Facing persistently increasing unemployment rates from then on, the government finally launched ?Hartz IV? in 2004; the largest social reform project in the history of the Federal Republic. This reform, that took effect at the beginning of 2005, aims to increase employment in Europe?s biggest but slowest growing economy, whilst avoiding the financial collapse of its social systems. Its main aim is to strengthen individual responsibility whilst lowering transfers for those unemployed individuals that are capable of work. Therefore, it is also the most disputed reform of the German social welfare system. By characterising effects and defects of the German welfare system, we identify some of the most important obstacles facing higher employment. We provide an outline of the government?s endeavours to handle the problem of unemployment and of the main changes in the country?s laws of social contributions. Particular focus is given to the newly established unemployment benefit II and to the ?reasonableness? of work, which reflects a new social valuation of labour. To conclude, potential welfare and employment effects under the new sys-tem are discussed

Die aktuellen Reformen der Sozialleistungen

Mit den im Zuge der Umsetzung der Agenda 2010 initiierten Reformen ist das Ziel verbunden, der Kostenexplosion einer sich über die Jahre zunehmend fehl entwickelnden und zum Teil falsch verstandenen Sozialstaatlichkeit Einhalt zu gebieten und damit einen Kollaps der Sozialsysteme zu verhindern. Welche Veränderungen stehen bei den Sozialleistungen zum 1. Januar 2005 konkret an? Wie sind diese volkswirtschaftlich zu beurteilen, und welche Beschäftigungseffekte sind zu erwarten? --

Customs compliance and the power of imagination

This paper studies the role of beliefs about own performance or appearance for compliance at the customs. In an experiment in which underreporting has a higher expected payoff than truthful reporting we find: a large share, about 15-20 percent of the subjects, is more compliant if they have reason to imagine that their performance influences their subjective audit probability. In contrast, we do not find evidence for individuals who believe that by their personal performance they can reduce the subjective probability for an audit. Our results suggest that the power of imagination, i.e. the role of second-order beliefs in the process of customs declarations is important and may potentially be used to improve customs and tax compliance. --Customs,tax compliance,audit probability,second-order beliefs

Customs Compliance and the Power of Imagination

This paper studies the role of beliefs about own performance or appearance for compliance at the customs. In an experiment in which underreporting has a higher expected payoff than truthful reporting we find: a large share, about 15-20 percent of the subjects, is more compliant if they have reason to imagine that their performance influences their subjective audit probability. In contrast, we do not find evidence for individuals who believe that by their personal performance they can reduce the subjective probability for an audit. Our results suggest that the power of imagination, i.e. the role of second-order beliefs in the process of customs declarations is important and may potentially be used to improve customs and tax compliance.customs, tax compliance, audit probability, second-order beliefs

Self-Insurance and Self-Protection as Public Goods

Many public goods like lighthouses and fire departments do not provide direct utility but act as insurance devices against shipwreck and destruction. They either diminish the size and/or the probability of the loss. We extend the public good model with this insurance aspect and generalize Samuelson?s efficient allocation rule when self-insurance and self-protection expenditures are pure public goods. Some comparative static results with respect to changes in income and risk behavior are derived. We analyze the interaction of private market insurance with the public good level, both for efficient provision and for private provision equilibria. The privately provided levels of self- insurance and self-protection decrease when market insurance is available, which suggests that the state should invest more in preventing not insurable risks like wars. Additionally, the state should focus on self-protection expenditures if those are better observable than private self-protection effort. --Self-insurance,self-protection,efficient provision of public goods,private provision of public goods,market insurance

Investments in the human capital of the socially disadvantaged children: Effects on redistribution

Recently, early investments in the human capital of children from socially disadvantaged environments have attracted a great deal of attention. Programs of such early intervention, aiming at children's health and well-being, are spreading considerably in the U.S. and are currently tested in several European countries. In a discrete version of the Mirrlees model with a parents' and a children's generation we show the intra-generational and the inter-generational redistributional consequences of such intervention programs. It turns out that the parents' generation always loses when such intervention programs are implemented. Among the children's generation it is the rich who always benefit. Despite the expectation that early intervention puts the poor descendants in a better position, our analysis reveals that the poor among the children's generation may even be worse off if the effect of early intervention on their productivity is not large enough. --Early Intervention,welfare,redistribution,taxation

Do Individuals Put Effort into Lying? Evidence From a Compliance Experiment

We study whether individuals in a face-to-face situation can successfully exert some lying effort to delude others. We exploit data from a laboratory experiment in which participants were asked to assess videotaped statements as being rather truthful or untruthful. The statements are face-to-face tax declarations which were recorded in an incentivised tax compliance experiment. The video clips to be assessed feature each subject twice making the same declaration. But one time the subject is reporting truthfully, the other time willingly untruthfully. This allows us to investigate within-subject differences in trustworthiness. Drawing on more than 18,000 assessments, we find that a subject is perceived as more trustworthy if she deceives than if she reports truthfully. It is particularily individuals with dishonest appearance who manage to increase their perceived trustworthiness by up to 15 percent. This is evidence of individuals successfully exerting lying effort

Do Individuals Put Effort into Lying? Evidence from a Compliance Experiment

We study whether individuals in a face-to-face situation can successfully exert some lying effort to delude others. We exploit data from a laboratory experiment in which participants were asked to assess videotaped statements as being rather truthful or untruthful. The statements are face-to-face tax declarations. The video clips feature each subject twice making the same declaration. But one time the subject is reporting truthfully, the other time willingly untruthfully. This allows us to investigate within-subject differences in trustworthiness. We find that a subject is perceived as more trustworthy if she deceives than if she reports truthfully. It is particularly individuals with dishonest appearance who manage to increase their perceived trustworthiness by up to 15 percent. This is evidence of individuals successfully exerting lying effort

Optimal Tax-Transfer-Schemes under Partial Information

According to a widely held belief, ?all who are able to work, should work?. We consider this statement within a framework of non-linear taxation. The crucial difference between our model and the standard model is that the government can distinguish between productive persons and the disabled. A general proposition regarding the design of tax-transfer-schemes under such partial information is derived. Moreover, it is shown that unemployment on the side of the productive poor may still be optimal