Welfare Effects of Dynamic Tax Reforms

by Hans Fehr

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Extent: 268 pages

Publisher: Mohr Siebeck

Subjects: Business & Economics

Series: Beiträge zur Finanzwissenschaft

Series volume number: 5

Language: English

Hardback (Published)

(June 1999)

ISBN: 9783161470165

Price: $71.00

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Various fiscal reform packages are presently on the political agenda in Germany. In his work, Hans Fehr develops a consistent framework for examining the consequences of these for distribution and efficiency. More specifically, he analyzes reform proposals for personal income and corporate taxes and for the German pension system as well as the deficit policy. This quantitative analysis is based on a dynamic simulation model of the Auerbach-Kollikoff type which features a number of innovations: complex progressive income taxes and pension contributions, intragenerational heterogeneity and the disaggregation of the effects on welfare into individual redistribution and efficiency components. The numerical simulations indicate that the existing excess burdens of the tax system are quite high in Germany and that especially progressive consumption taxation and minimum pensions financed by contributions might be some interesting reform options for the future.

  • By (author) Hans Fehr