This paper explores whether more generous social spending polices in fact lead to less income inequality, or if redistributive outcomes are offset by behavioral disincentive effects. To account for the inherent endogeneity of social policies with regard to inequality levels, I apply the System...

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...