We use data on 180,000 households in the Swiss Canton of Bern and the years 2008-2013 to analyse whether one instrument (the income tax) vs. two instruments (income tax and public utility pricing) are adequate for income redistribution. The results of our structural estimation show that under...

Carbon pricing is the efficient instrument to reduce emissions. However, the geographical and sectoral coverage of substantial carbon pricing is low, often due to concerns that pricing may increase economic inequality. Regulatory standards such as fuel economy standards are more popular. But do...

We estimate the labor force participation (LFP) response to the introduction of means-tested minimum pensions in the UK through the Old-Age Pension Act (OAP) of 1908. The OAP was a major social policy intervention and the first one to universally target older workers in a time of very limited...

Profit taxes are widely acknowledged to influence the location of firms' headquarters. This paper sheds light on the role of aspects of labor taxation for the international location of headquarters. We construct a unique data set of effective labor taxes in 120 countries and use data on the...

The traditional concept of a strict minimum of nontaxable income equal for all taxpayers embedded in most current income-tax systems is the result of a paradox of fiscal egalitarianism. The paper shows that substituting the traditional notion of a strict minimum of nontaxable income for a scheme...

This paper analyzes the effect of the introduction of a final withholding tax on capital income on the progression of the German income tax. As previous literature shows, even with synthetic income taxation, tax progression was strongest in the middle of the income distribution, and decreased...

This paper documents the magnitude, pattern, and evolution of lifetime earnings inequality in Germany. Based on a large sample of earning biographies from social security records, we show that the intra-generational distribution of lifetime earnings of male workers has a Gini coefficient around...

We look at the effect of domestic redistribution policy on offshoring in an asymmetric two country model of monopolistic competition, heterogeneous firms and occupational choice. The redistribution scheme is modeled by a combination of a progressive income tax and a lump-sum transfer. We find...

Based on data from a computer-based survey among more than 500 German respondents, this paper empirically examines the effect of actual equivalent income and estimated income position as well as behavioral factors on absolute and relative donations. Donations were measured in an incentivized...

We examine the determinants of inter vivos transfers of ownership in German family firms between 2000 and 2013. Survey evidence indicates that owners of larger firms, and firms with strong current business conditions, transfer ownership at higher rates than others. When a firm’s self-described...