|Baretti, Christian; Huber, Bernd; Lichtblau, Karl (2002): A Tax on Tax Revenue: The Incentive Effects of Equalizing Transfers: Evidence from Germany. In: International Tax and Public Finance, Vol. 9, No. 6: pp. 631-649|
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Several recent studies suggest that equalizing transfers in a federal system may distort the tax policy decisions of states. We study this issue for the German federal fiscal system. In a simple theoretical model, we first identify a substitution effect and an income effect of equalizing transfers. Our main hypothesis is that both effects should tend to reduce tax revenue of German states. We perform various empirical tests which confirm this hypothesis.
Economics > Chairs > Chair in Public Finance
|Subjects:||300 Social sciences > 330 Economics|
|Deposited On:||15. Apr 2014 08:56|
|Last Modified:||29. Apr 2016 09:17|
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A Tax on Tax Revenue. The Incentive Effects of Equalizing Transfers: Evidence from Germany. (deposited 15. Apr 2014 08:56)
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