Applying the theory of yardstick competition to the schooling system, we show that it is optimal to have central tests of student achievement and to engage in benchmarking because it raises the quality of teaching. This is true even if teachers? pay (defined in monetary terms) is not performance...

A widespread objection to the introduction of consumption tax systems claims that this would lead to high tax revenue losses. This paper investigates the revenue effects of a consumption tax reform in Germany. Our results suggest that the revenue losses would be surprisingly low. We find a...

During the next decades the populations of most developed countries will grow older as a result of the low level of birth rates since the 1970s and/or the continuously increasing life expectancy. We show within a Generational Accounting framework how unsustainable the public finances of France,...

At the age of ten German pupils are given a secondary school track recommendation which largely determines the actual track choice. Track choice has major effects on the life course, mainly through labor market outcomes. Using data from the German PISA extension study, we analyze the effect of...

This paper analyses the effectiveness of the corporate income tax as an automatic stabilizer. It employs a unique firm-level dataset of German manufacturers combining financial statements with firm-specific information about credit market restrictions. The results show that approximately 20 per...

In this paper, we use data from the German PISA 2003 sample to study the effects of central exit examinations on student performance, student attitudes, and teacher behavior. Unlike earlier studies we use (i) a value-added measure to pin down the effect of central exit exams on learning in the...

The German Income Tax Reform 2000, which announced a reduction in income tax rates to be implemented in a series of three stages, was welcomed by the public as a step towards unleashing lurking growth potentials. Nonetheless, in the course of the year 2001 a dispute arose, centering around the...

In der ökonomischen Literatur wird oft argumentiert, dass Kombilohnmodelle und Grundeinkommenskonzepte im Prinzip nur Varianten einer negativen Einkommenssteuer seien. Dabei wird oft übersehen, dass diese Konzepte sehr unterschiedliche Gruppen der Bevölkerung einbeziehen. Dieser Beitrag...