Discussion Paper No. 360
December 27, 2022
Sufficient Statistics for Nonlinear Tax Systems with General Across-income Heterogeneity
Authors:
Antoine Ferey (LMU Munich)Benjamin Lockwood (Wharton)
Dmitry Taubinsky (UC Berkeley)
Abstract:
JEL-Classification:
D61; H21; H24Download:
Open PDF fileDiscussion Paper No. 352
December 22, 2022
The Indirect Fiscal Benefits of Low-Skilled Immigration
Authors:
Mark Colas (University of Oregon)Dominik Sachs (University of St. Gallen)
Abstract:
Keywords:
immigration; fiscal impact; general equilibriumJEL-Classification:
H20; J31; J61Download:
Open PDF fileDiscussion Paper No. 345
November 1, 2022
Redistribution and Unemployment Insurance
Authors:
Ferey, Antoine (LMU Munich)Abstract:
Download:
Open PDF fileDiscussion Paper No. 321
March 2, 2022
Inequality and Income Dynamics in Germany
Authors:
Drechsel-Grau, Moritz (University of Zurich)Peichl, Andreas (ifo Institute and LMU Munich)
Schmieder, Johannes (Boston University)
Schmid, Kai D. (Heilbronn University of Applied Sciences)
Walz, Hannes (FAU and IAB)
Wolter, Stefanie (IAB)
Abstract:
Keywords:
inequality; income dynamics; mobility; non-labor incomeJEL-Classification:
D31; E24; E31; J31Download:
Open PDF fileDiscussion Paper No. 299
November 15, 2021
Expectation Management of Policy Leaders: Evidence from COVID-19
Authors:
Haan, Peter (FU Berlin and DIW Berlin)Peichl, Andreas (LMU Munich and ifo Institute)
Schrenker, Annekatrin (FU Berlin and DIW Berlin)
Weizsäcker, Georg (HU Berlin)
Winter, Joachim (LMU Munich)
Abstract:
Keywords:
expectations; belief updating; covid-19; shutdownJEL-Classification:
D12; D84; H12Download:
Open PDF fileDiscussion Paper No. 298
November 15, 2021
Social Mobility in Germany
Authors:
Dodin, Majed (University of Mannheim)Findeisen, Sebastian (University of Konstanz)
Henkel, Lukas (European Central Bank)
Sachs, Dominik (LMU Munich)
Schüle, Paul (LMU Munich and ifo Institute)
Abstract:
Keywords:
intergenerational mobility; educational attainment; local labor marketsJEL-Classification:
I24; J62; R23Download:
Open PDF fileDiscussion Paper No. 281
February 26, 2021
The Indirect Fiscal Benefits of Low-Skilled Immigration
Authors:
Colas, Mark (University of Oregon)Sachs, Dominik (LMU Munich)
Abstract:
Low-skilled immigrants indirectly affect public finances through their effect on native wages & labor supply. We operationalize this indirect fiscal effect in various models of immigration and the labor market. We derive closed-form expressions for this effect in terms of estimable statistics. Empirical quantifications for the U.S. reveal that the indirect fiscal benefit of one low-skilled immigrant lies between $770 and $2,100 annually. The indirect fiscal benefit may outweigh the negative direct fiscal effect that has previously been documented. This challenges the perception of low-skilled immigration as a fiscal burden.
Keywords:
immigration; fiscal impact; general equilibriumJEL-Classification:
H20; J31; J62; J68Download:
Open PDF fileDiscussion Paper No. 239
April 29, 2020
Starke Erwartungsreaktionen auf Angela Merkels Covid-Erklärungen
Author:
Haan, Peter (DIW Berlin)
Peichl, Andreas (LMU Munich & ifo Institute)
Schrenker, Annekatrin (DIW Berlin)
Weizsäcker, Georg (HU Berlin)
Winter, Joachim (LMU Munich)
Abstract:
Wir führen hochfrequente Befragungen der in Deutschland lebenden Personen durch und erheben die Erwartungen zur Dauer der Covid-bedingten Beschränkungen des öffentlichen Lebens. In einer ersten Analyse der Daten finden wir Hinweise, dass zwei in den Erhebungszeitraum fallenden öffentlichen Auftritte von Bundeskanzlerin Angela Merkel die Erwartungen stark beeinflussen. Insbesondere messen wir nach Merkels Pressekonferenz vom 15.4.2020 eine deutlich pessimistische Bewegung der Erwartungen und die beabsichtigten Konsumausgaben der Haushalte sinken zeitgleich. Die Ergebnisse legen nahe, dass die deutsche Politik über die Möglichkeit eines sehr wirksamen Erwartungsmanagements verfügt.
Keywords:
ökonomische Erwartungen; Covid-Shutdown
JEL-Classification:
D12; D84
Download:
Discussion Paper No. 236
April 15, 2020
Politically Feasible Reforms of Non-Linear Tax Systems
Author:
Bierbrauer, Felix J. (University of Cologne)
Boyer, Pierre C. (École Polytechnique)
Peichl, Andreas (LMU Munich & ifo Institute)
Abstract:
We study reforms of non-linear income tax systems from a political economy perspective. We present a median voter theorem for monotonic tax reforms, reforms so that the change in the tax burden is a monotonic function of income. We also provide an empirical analysis of tax reforms, with a focus on the US. We show that past reforms have, by and large, been monotonic. We also show that support by the median voter was aligned with majority support in the population. Finally, we develop sufficient statistics that enable to test whether a given tax system admits a politically feasible reform.
Keywords:
non-linear income taxation; tax reforms; political economy; optimal taxation
JEL-Classification:
C72; D72; D82; H21
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Discussion Paper No. 232
March 9, 2020
Measuring Unfair Inequality: Reconciling Equality of Opportunity and Freedom from Poverty
Author:
Hufe, Paul (LMU Munich & ifo Institute)
Kanbur, Ravi (Cornell University)
Peichl, Andreas (LMU Munich & ifo Institute)
Abstract:
Empirical evidence on distributional preferences shows that people do not judge inequality as problematic per se but that they take the underlying sources of income differences into account. In contrast to this evidence, current measures of inequality do not adequately reflect these normative preferences. In this paper we address this shortcoming by developing a new measure of unfair inequality that reconciles two widely-held fairness principles: equality of opportunity and freedom from poverty. We provide two empirical applications of our measure. First, we analyze the development of inequality in the US from 1969 to 2014 from a normative perspective. Second, we conduct a corresponding international comparison between the US and 31 European countries in 2010. Our results document increasing unfairness in the US over time. This trend is driven by a strong decrease in social mobility that puts the “land of opportunity” among the most unfair countries in 2010.
Keywords:
inequality; equality of opportunity; poverty; fairness; measurement
JEL-Classification:
D31; D63; I32