The paper analyses the impact of demographic developments on the German pension system until the year 2060. The projections are simulated for a range of assumptions on the latest demographic trends and on the labour market and comprise the latest pension legislation. As a central innovation we...

I define a new tax instrument, the 'deductibility rate,' which specifies the proportion of eligible expenses a taxpayer may deduct when preparing her taxes. If the utilities of gross income and deductions are separable, then the deduction elasticity reflects the revenue leakage caused by greater...

Affine Term Structure model that unifies two views in yield curve modeling: Principal Components as state variables in Affine world of models providing indispensable econometric knowledge of market observed yields and Stochastic Market Price of Risk which decouples the hard deterministic...

This paper looks at the links between inequality of opportunity and views about the underlying processes that support economic success or failure. Unlike income inequality, inequality of opportunity isolates the extent to which inequality in circumstances beyond an individual's control...

Most prior work on sexual orientation and labour market earnings has relied either on individual-level surveys with small samples of sexual minorities or has used large samples of same-sex couples. We use a large individual-level dataset that allows us to measure both constructs. We replicate...

Tax-benefit policies affect household incomes through two main channels: discretionary policy changes and automatic stabilisers. Although a large body of literature has studied the impact of tax-benefit policy changes on incomes, little is known about the link between automatic stabilisers and...

The purpose of the paper is to introduce the framework for decomposing the forecast of headline inflation, obtained by macroeconomic model of NBRM for monetary policy analysis and medium term projections (MAKPAM), into its components: food, energy and core inflation. The model for inflation...