Ahead of German federal elections in September 1998 it became obvious that tax reform would remain on the political agenda. In this context broadening of the tax base plays a crucial role. In any case, the reduction of subsidies is an economic policy topic of persistent concern. The Federal...

We study the political economy of commuting subsidies in a model of a monocentric city with two income classes. Depending on housing demand and transport costs, either the rich or the poor live in the central city and the other group in the suburbs. Commuting subsidies increase the net income of...

This paper explores the relationship between two well-established concepts of measuring individual well-being: the concept of happiness, i.e. self-reported level of satisfaction with income and life, and relative deprivation/satisfaction, i.e. the gaps between the individual's income and the...