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Equilibrium Poaching in Labor Markets CESifo Econ. Stud. (IF 1.231) Pub Date : 2024-02-29 Ori Zax, Yanay Farja
When firms have to employ a high-ability worker at a managerial position, sometimes they have to poach a promoted worker from another firm without observing that worker’s ability. We discuss the implications of this practice for the promotion signaling framework. Our model shows the turnover of workers and the wages paid at such an economy, and how they depend on the worker’s own ability and the ability
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Addressing Longevity Inequality: How Retirement Age Differentiation Can Be Implemented CESifo Econ. Stud. (IF 1.231) Pub Date : 2024-01-25 Svend E Hougaard Jensen, Thorsteinn Sigurdur Sveinsson, Gylfi Zoega
Differences in life expectancy across socioeconomic groups create a serious problem of inequality within the public part of the pension system. This article considers two actuarially sound ways of addressing longevity inequality. The first is to allow low life-expectancy workers to retire earlier and delay the retirement of the high life-expectancy workers so that the two groups receive the same amount
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A Lockdown a Day Keeps the Doctor Away: The Global Effectiveness of Non-Pharmaceutical Interventions in Mitigating the Covid-19 Pandemic CESifo Econ. Stud. (IF 1.231) Pub Date : 2024-01-02 Anthonin Levelu, Alexander Sandkamp
Countries have employed a variety of non-pharmaceutical interventions (NPIs) in order to curtail the Covid-19 pandemic. However, the success of individual measures in reducing the number of infections remains controversial. This article exploits a panel dataset of 181 countries to estimate the effects of 12 NPIs on the spread of the disease in 2020. The employed fixed effects estimation greatly reduces
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Widening Health Gap in the US Labor Force Participation at Older Ages CESifo Econ. Stud. (IF 1.231) Pub Date : 2024-01-02 Tomaz Cajner, Javier Fernández-Blanco, Virginia Sánchez-Marcos
Using microdata from the CPS and the HRS, we document changes in labor force participation at older ages in the USA since the mid-1990s. Our main finding is that the over two-decade increase in participation is solely driven by individuals in good health, and does not differ across either educational or occupational groups. This phenomenon may importantly affect the results of social security reforms
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Interest Rate Pass-Through in Euro Area Mortgage Markets: The Long Shadow of the Great Financial Crisis CESifo Econ. Stud. (IF 1.231) Pub Date : 2023-12-28 Paul Egan, Kieran McQuinn
The tightening of monetary policy in response to the recently observed surge in inflation has focussed attention on the potential impact of changes in policy rates on European mortgage holders. Central to this question is the pass-through of policy rates to the mortgage rate charged in residential markets across the Euro Area as housing costs have contributed significantly to recent inflationary pressures
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The Spatial Economic Impact of Crime: Evidence from the Construction Sector in Italian Municipalities CESifo Econ. Stud. (IF 1.231) Pub Date : 2023-10-24 Leonzio Rizzo, Massimiliano Ferraresi, Riccardo Secomandi
Literature has mainly focused on understanding whether organized crime impacts on economic growth, broadly intended. Yet, at the local level, little is known as to how crime may affect economic activities. Using a unique geo-localized dataset on Italian firms, we exploit the strengthening of policy enforcement against corruption to show that when municipalities where the city council is dissolved because
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The Impact of Political Fragmentation on the Municipal Spending in Peru CESifo Econ. Stud. (IF 1.231) Pub Date : 2023-09-25 Alberto Mendoza, Sergio Hinostroza
This study evaluates the impact of political fragmentation at the municipal level on public expenditure during the period 2007–2018 for the Peruvian case. The results indicate that the effect of political fragmentation within a municipal council on the spending of the provincial municipality could be non-linear. That is, political fragmentation affects negatively the expenditure in a certain tranche
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Do Consumers Really Pay for SDGs? Re-Evaluating Consumer Behaviour Using Surveys in the USA, Germany, and Japan CESifo Econ. Stud. (IF 1.231) Pub Date : 2023-08-05 Eri Nakamura, Kimitaka Nishitani, Fumitoshi Mizutani
This study investigates the relationship between consumers’ evaluation on sustainable development goal (SDG)-related characteristics and the actual payment for these values, while revealing effective governmental policies and business activities to enhance sustainable consumption. Using survey data from the USA, Germany, and Japan, the following results were obtained. First, the relative importance
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Use of Digital Technologies for HR Management in Germany: Survey Evidence CESifo Econ. Stud. (IF 1.231) Pub Date : 2023-07-03 Marina Chugunova, Anastasia Danilov
Using a survey with 57 German firms, we evaluate the level of digitalization of the human resource management (HRM) function and document perceived benefits and barriers of technology adoption from organizational and individual users’ perspectives. The results give reason for optimism. Most of the companies report that the core HR processes are digitized. We do not observe adverse effects of the digital
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The Effects of Dual-Enrollment Programs on Students’ Post-Secondary Academic Performance CESifo Econ. Stud. (IF 1.231) Pub Date : 2023-05-19 Cody Kirby, Kaustav Misra, Arundhati Bagchi Misra, Sharon P Cox
Early college programs allow high school students to go beyond the advanced courses that the high school offers. Much of the literature on this topic focuses on small sample sizes, theories, or qualitative evidence; quantitative evidence of such a relationship is lacking. This study will examine the relationship between early college programs and academic performance, as well as graduation and retention
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Production in Urban Environments CESifo Econ. Stud. (IF 1.231) Pub Date : 2023-04-18 Oded Hochman, Ori Zax
We analyze an urban economy with free entry of firms in which prices differ across locations. We show that in a competitive equilibrium, land rent is determined such that firms produce at constant returns to scale point—at minimum average costs. (JEL codes: R32 and R38)
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Financial Education in Secondary Education: A Cross-Country Analysis CESifo Econ. Stud. (IF 1.231) Pub Date : 2023-04-07 Luis Alejandro Lopez-Agudo, Oscar David Marcenaro-Gutierrez
We live in a society in which knowing how to manage money is a necessity, since it is required in our everyday life. In this context, financial literacy is a competence which people should develop in order to improve their money-related decisions. In order to analyse the contribution of financial education to this competence, we go beyond the previous literature in respect to correlation by using student
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What Makes Discretionary Counter-Cyclical Fiscal Policy so Difficult? An Analysis of 32 OECD Countries CESifo Econ. Stud. (IF 1.231) Pub Date : 2023-04-03 Jakob de Haan, Bram Gootjes
We examine the stance of fiscal policy for 32 OECD countries from 1986 to 2023 by comparing for each country-year observation the signs of the output gap and the change in the cyclically adjusted budget balance. We find that fiscal policies are often pro-cyclical. We test possible explanations using comparative statistics for country-year observations with pro- and counter-cyclical policies. Our evidence
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Is a State Bank A Useful Economic Development Tool in the USA? CESifo Econ. Stud. (IF 1.231) Pub Date : 2022-12-12 Robert S Chirinko
The possibility of creating a state bank has received much recent attention in the USA. In 2021, six states introduced legislation to create a state bank; in 2019, similar legislation was enacted in California for municipal banks. This article develops a framework to evaluate state banking, reviews prior experiences with state banking and related alternatives to traditional private banking, and identifies
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Border Region Attachment: An Empirical Study on Regional Social Capital in the French–German Border Area CESifo Econ. Stud. (IF 1.231) Pub Date : 2022-11-28 Marcus Wiens, Miriam Klein, Frank Schultmann
In today’s globalized and interconnected world, international relationships are becoming ever more important. This applies not only to political relations but also to transnational attachment, a positive and solidary mutual attitude between the citizens of two countries, which is mainly based on social capital and trust. In particular border areas can benefit enormously when people have a bond with
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Gallup Democracy in Exercising the NATO Membership Option: The Cases of Finland and Sweden CESifo Econ. Stud. (IF 1.231) Pub Date : 2022-08-18 Vesa Kanniainen
The article asks whether the exercising of the NATO membership option is justified for Finland and Sweden in the light of their geopolitical state after Russia’s attack on Ukraine. It was the Gallup democracy, which launched the political moves toward the membership. In both countries, the majority of people turned to favor the membership within 2–3 months. Finland activated first. Sweden was fast
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Effects of Refugee Inflow on the Voting Behavior of Natives: Application of Mobile Phone Data CESifo Econ. Stud. (IF 1.231) Pub Date : 2022-07-25 Emine Kübra Usta
This paper investigates the effects of refugee inflow on the voting behavior of natives. I employ a difference in differences strategy to identify the voter reaction against the sudden inflow of Syrian refugees to Turkey and use unique data provided by Turk Telecom to proxy natives’ refugee exposure. Data coming from mobile phone usage track the mobility of refugees throughout the year and enables
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The Impact of Internship Experience on Schooling and Labour Market Outcomes CESifo Econ. Stud. (IF 1.231) Pub Date : 2022-01-24 Brecht Neyt, Dieter Verhaest, Lorenzo Navarini, Stijn Baert
We examine the impact of internship experience during secondary education on students’ schooling and early labour market outcomes by analysing unique, longitudinal data from Belgium. To control for unobservable differences between students with and students without internship experience, we estimate a dynamic discrete choice model. In line with literature on vocational education, we find that internship
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The Length of Schooling and the Timing of Family Formation CESifo Econ. Stud. (IF 1.231) Pub Date : 2022-01-21 Koebe J, Marcus J.
AbstractIndividuals typically traverse several life phases before forming a family. We analyze whether changing the duration of one of these phases, the education phase, affects the timing of marriage and childbearing. For this purpose, we exploit the introduction of short school years (SSYs) in Germany in 1966–1967, which compressed the education phase without affecting the curriculum. Based on d
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Evolution of Monetary Policy in Peru: An Empirical Application Using a Mixture Innovation TVP-VAR-SV Model* CESifo Econ. Stud. (IF 1.231) Pub Date : 2022-01-11 Portilla J, Rodríguez G, Castillo B. P.
AbstractThis article discusses the evolution of monetary policy (MP) in Peru in 1996Q1–2019Q4 using a mixture innovation time-varying parameter vector autoregressive (VAR) model with stochastic volatility (TVP-VAR-SV) as proposed by Koop, Leon-Gonzales and Strachan. The main empirical results are: (i) the VAR coefficients and volatilities change more gradually than the contemporaneous coefficients
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One Market to Rule Them All: How Financial Integration Influenced Inequality in the European Union CESifo Econ. Stud. (IF 1.231) Pub Date : 2021-12-20 Burghof H, Gehrung M.
AbstractFinancial integration is seen as a major driver of economic growth and wealth. Its effects on income inequality have been analyzed for the bank branch deregulation in the USA and foreign bank entry in India. Another prominent example of financial integration and liberalization, so far, has been ignored: the introduction and progression of the European Single Market. By using a difference-in-difference
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An Ex-Ante Assessment of the AGI: Firm-Level Evidence from Belgian Tax Return Data CESifo Econ. Stud. (IF 1.231) Pub Date : 2021-08-21 Buyl P, Roggeman A, Verleyen I.
AbstractUsing confidential tax return data, we provide a unique research setting in which the Belgian notional interest deduction (NID) is replaced by the Allowance for Growth and Investment (AGI) as it is proposed by the European Commission. Our results show that the AGI would be a more viable option from a budgetary view. From a company view, however, introducing an AGI system would increase the
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Alcohol Availability and Alcohol-Attributable Mortality: Economic Implications following a Change in Sales Policy CESifo Econ. Stud. (IF 1.231) Pub Date : 2021-08-01 Relika Stoppel
It is commonly known that irresponsible alcohol use can have adverse effects. For some people, it results in health problems, for others in productivity loss, and some experience the worst possible outcome of alcohol misuse – death. This paper estimates the effect of reduced alcohol sales hours on alcohol-attributable mortality (AAM) in Estonia. Using novel mortality data from 1997 to 2015, this paper
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Masters and Slaves: A Matching Model of Forced Labor with Heterogeneous Workers CESifo Econ. Stud. (IF 1.231) Pub Date : 2021-07-16 Bianca Willert
At present, most countries have officially ratified the ILO Convention concerning forced or compulsory labor; however, serfdom is still present in the 21st century. This article addresses how oppressors recruit their victims and how certain mechanisms affect the extent of modern slavery. We use a matching model to analyze this recruitment process, incorporating involuntariness, which is the distinctive
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Opening-Up Trajectories and Economic Recovery: Lessons after the First Wave of the COVID-19 Pandemic CESifo Econ. Stud. (IF 1.231) Pub Date : 2021-07-14 Asli Demirgüç-Kunt, Michael Lokshin, Iván Torre
This article analyses the reopening process of countries in Europe and Central Asia after the first wave of the COVID-19 pandemic and provides evidence on the effects of different reopening trajectories and their timing and speed on economic recovery. The analysis indicates that countries that adopted a gradual, staged reopening experienced stronger economic recovery compared with the countries that
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Populism and Social Polarization in European Democracies CESifo Econ. Stud. (IF 1.231) Pub Date : 2021-05-13 Victor Ginsburgh, Sergio Perelman, Pierre Pestieau
The objective of this article is to explain populist attitudes that are prevailing in a number of European democracies. Populist attitudes usually lead to social protests and populist votes. We capture the populist wave by relying on values that are traditionally viewed as populist—such as distrust of institutions and neighbors, rejection of migrations, and strong preferences for law and order—rather
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Impact of Trade on Inequality: New Evidence of What, When, and Where CESifo Econ. Stud. (IF 1.231) Pub Date : 2021-03-31 Abu Bakkar Siddique
The relationship between trade and inequality is complex, and the existing literature concludes that the impacts of trade on inequality are ambiguous. This article addresses this ambiguity and presents robust evidence that the effects of trade on inequality depend on economic development, when it occurred in recent decades, and their various measures. It proposes a novel identification strategy to
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A Quantitative Assessment of the Net Wealth Tax: The Spanish Experience CESifo Econ. Stud. (IF 1.231) Pub Date : 2021-03-26 José M Durán-Cabré, Alejandro Esteller Moré
There is growing debate, both social and academic, about the possibility of levying an annual net wealth tax. Until a few years ago, such a proposal appeared difficult to both implement and control, but recent technological innovations, which could greatly facilitate the periodic valuation of wealth, combined with improvements in international tax information sharing could make a “modern wealth tax”
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Did Lockdown Work? An Economist’s Cross-Country Comparison CESifo Econ. Stud. (IF 1.231) Pub Date : 2021-03-02 Christian Bjørnskov
I explore the association between the severity of lockdown policies in the first half of 2020 and mortality rates. Using two indices from the Blavatnik Centre’s COVID-19 policy measures and comparing weekly mortality rates from 24 European countries in the first halves of 2017–2020, addressing policy endogeneity in two different ways, and taking timing into account, I find no clear association between
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Wage Growth across Fields of Study among Young College Graduates: Is There a Gender Gap? CESifo Econ. Stud. (IF 1.231) Pub Date : 2021-02-26 Sánchez-Mangas R, Sánchez-Marcos V.
AbstractWe use the Flexible Professional in the Knowledge Society data set to learn about gender gaps during the early career of college graduates in Europe. We document substantial heterogeneity across fields of education in the gender wage gap at the entrance to the labour market. We find that the gap evolves against women over the five years after graduation in Social Science and in Economics, Business
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COVID-19: guaranteed Loans and Zombie Firms CESifo Econ. Stud. (IF 1.231) Pub Date : 2020-12-06 Zoller-Rydzek B, Keller F.
AbstractBased on a survey (7–13 April 2020) we evaluate the reaction of Swiss firms towards the COVID-19 crisis. Firms show little pro-active reactions towards the crisis, but decrease their business activities. The firms in the survey report that the decline in foreign demand is the single most important reason for their deteriorating business situation. Firms that faced a more difficult business
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Furor over the Fed: A President’s Tweets and Central Bank Independence CESifo Econ. Stud. (IF 1.231) Pub Date : 2021-01-30 Antoine Camous, Dmitry Matveev
We illustrate how financial market data are informative about the interactions between monetary and fiscal policy. Federal funds futures are private contracts that reflect investor’s expectations about future monetary policy decisions. By relating price movements of these contracts with President Trump’s tweets on monetary policy, we explore how financial market participants have perceived attempts
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Debt Managers’ Reaction to Sovereign Risk in the Euro Area: Evidence and Policy Implications CESifo Econ. Stud. (IF 1.231) Pub Date : 2021-01-28 Ivo J M Arnold
When sovereign spreads increase, debt managers in the euro area face a funding dilemma. They can either issue more short-term debt, thereby increasing roll-over risk, or issue long-term debt at higher borrowing costs. The latter choice may threaten debt sustainability. Using a sample of monthly data for 10 countries in the euro area, we measure how the share of short-term debt issuance reacts to bond
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Are Technology Shocks More Expansionary at the ZLB? CESifo Econ. Stud. (IF 1.231) Pub Date : 2021-01-27 Yangyang Ji
Garín et al.’s (2019) empirical study shows that a positive technology shock is more expansionary when the ZLB binds than when it does not. This cannot be explained by a basic new-Keynesian model with sticky prices. In this paper, I resolve this puzzle by extending the model to include wage stickiness. (JEL codes: E32, E52, E62, N12)
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Gender Equality and Public Policy during COVID-19 CESifo Econ. Stud. (IF 1.231) Pub Date : 2020-12-06 Profeta P.
AbstractThe outbreak of COVID-19 has affected men and women worldwide. The gender dimension of COVID-19 has attracted the attention of researchers and policymakers: while women seem to be less severely hit by the virus and are more compliant with the restricting rules imposed to reduce the spread of the contagion, they risk to suffer more the economic consequences of the pandemic, because they are
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Electricity Use as a Real-Time Indicator of the Economic Burden of the COVID-19-Related Lockdown: Evidence from Switzerland CESifo Econ. Stud. (IF 1.231) Pub Date : 2020-11-04 Janzen B, Radulescu D.
AbstractWe employ hourly electricity load data for Switzerland as a real-time indicator of the economic effects of the lockdown following the spread of SARS-CoV-2. Our findings reveal that following the drastic lockdown, overall electricity use decreased by 4.6%, with a reduction of even 14.3% in the Canton of Ticino where the number of confirmed cases per capita was one of the highest in Switzerland
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Kindergarten for Free?! Empirical Evidence on the Utilization of Income Tax Deductions for Child Care Expenses CESifo Econ. Stud. (IF 1.231) Pub Date : 2020-12-12 Lena Calahorrano,Sven Stöwhase
Abstract In most developed countries there exist ample possibilities for individuals to minimize their personal income tax burden by means of tax deductions. The associated revenue losses for the government have been estimated for a variety of tax deductions. However, relatively little is known about the share of eligible taxpayers who actually use these deductions, and, more specifically, about what
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The Central Bank Governor and Interest Rate Setting by Committee CESifo Econ. Stud. (IF 1.231) Pub Date : 2020-12-06 Emile van Ommeren,Giulia Piccillo
Abstract This article studies the role of central bank governors in monetary policy decisions taken by a committee. To carry out this analysis, we constructed a novel dataset of committee voting behaviour for six OECD countries for up to three decades. Using a range of Taylor rule specifications, we show that a change in governor significantly affects interest rate setting. We also observe systematic
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Evergreening in the Euro Area: Evidence from Survey Data and a Conceptual Framework CESifo Econ. Stud. (IF 1.231) Pub Date : 2020-11-27 Sven Steinkamp, Aaron Tornell, Frank Westermann
Since the beginning of the financial crisis in 2007/2008, new lending in the euro area has slowed sharply and the old loans experienced ‘evergreening’, that is, bad loans have been rolled over rather than being liquidated. Even though ameliorating evergreening is key to promote lending for new investment projects and growth, no systematic evergreening measures exist. In this paper, we propose a new
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The 2008 Financial Crisis and the Lack of Retaliatory Trade Intervention CESifo Econ. Stud. (IF 1.231) Pub Date : 2020-10-30 Chunding Li, John Whalley, Chuantian He, Chuangwei Lin
The 2008 financial crisis did not precipitate global retaliatory trade intervention, in seeming contrast to the Great Depression in 1930s. This article discusses the influence of model structure in optimal tariff (OT) calculations in explaining this puzzle. We emphasize how earlier literature reports high OTs in numerical calculation (of a hundred percent) but only uses simple trade models. We use
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The Effect of New Deal Policies Revisited CESifo Econ. Stud. (IF 1.231) Pub Date : 2020-09-30 Yangyang Ji
Abstract Eggertsson (2012, American Economic Review, 102, 524–55) finds that when the nominal interest rate hits the zero lower bound, the aggregate demand (AD) curve becomes upward-sloping and supply-side policies that reduce the natural rate of output, such as the New Deal implemented in the 1930s, are expansionary. His analysis is restricted to a conventional equilibrium where the AD curve is steeper
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Introduction to the Special Issue ‘New Perspectives on Tax Administration Research’1 CESifo Econ. Stud. (IF 1.231) Pub Date : 2020-09-01 Christos Kotsogiannis
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Party Ideology and Vocational Education Spending: Empirical Evidence from Germany CESifo Econ. Stud. (IF 1.231) Pub Date : 2020-08-21 Ivo Bischoff, Julia Hauschildt
We provide—to the best of our knowledge—the first empirical study on the political economy of public spending on vocational education. Vocational schools raise human capital among non-academics and give the latter a stronger bargaining position in wage negotiation—thereby supporting the clientele of leftwing parties. At the same time, they provide publicly funded inputs that raise firm productivity—an
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Corrigendum to: Gender, Social Value Orientation, and Tax CESifo Econ. Stud. (IF 1.231) Pub Date : 2020-08-18 John W D’Attoma,Clara Volintiru,Antoine Malézieux
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Should Contact Bans Have Been Lifted More in Germany? CESifo Econ. Stud. (IF 1.231) Pub Date : 2020-06-01 Jean Roch Donsimoni, René Glawion, Bodo Plachter, Klaus Wälde, Constantin Weiser
Abstract Many countries consider the lifting of restrictions of social contacts (RSC). We quantify the effects of RSC for Germany. We initially employ a purely statistical approach to predicting prevalence of Covid-19 if RSC had been upheld after 20 April. We employ these findings and feed them into our theoretical model. We find that the peak of the number of sick individuals would have been reached
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Traceable Payments and VAT Design: Effects on VAT Performance CESifo Econ. Stud. (IF 1.231) Pub Date : 2020-04-24 Boryana Madzharova
This paper studies the role of cashless payments in third-party reporting for the purposes of Value Added Tax compliance management. In economies with well-developed financial institutions, the traceability of digital payments could serve as a deterrent to sales suppression even in the absence of explicit policies utilizing electronic payments for tax enforcement. Using country-level data for the European
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Inflation and Output Volatility: Evidence from International Historical Data CESifo Econ. Stud. (IF 1.231) Pub Date : 2020-03-10 Bruno Ćorić
Abstract This study adopts a historical perspective to investigate variations in output volatility within and across world economies. The analysis uses annual data for 37 OECD and non-OECD countries covering the last two centuries. We focus on the relationship between inflation and output volatility. The results of a panel analysis show a positive effect of inflation on output volatility. This finding
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The Effects of Permanent Income Tax Cuts on Emigration from Israel CESifo Econ. Stud. (IF 1.231) Pub Date : 2020-03-01 Tomer Blumkin, Yoram Margalioth, Michel Strawczynski
In this paper we introduce an analytical framework for analyzing the effect of permanent income tax reductions on emigration and conduct an empirical analysis of their impact, based on the Israeli tax reductions during 2004-2010. We find that permanent tax reductions reduce the emigration flows from Israel. According to our findings, this effect is stronger for workers in the low-tech sector than for
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Training Participation and the Role of Reciprocal Attitudes CESifo Econ. Stud. (IF 1.231) Pub Date : 2020-01-27 Arjan Non
Using data from the German Socio-Economic Panel (SOEP), I examine the relation between workers’ reciprocal attitudes, as measured in 2005 and 2010, and participation in work-related training courses in 2007 and 2013, respectively. Theory predicts that employers find it more profitable to invest in human capital of workers who have positively reciprocal attitudes, because they are more likely to return
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Gender, Social Value Orientation, and Tax Compliance CESifo Econ. Stud. (IF 1.231) Pub Date : 2020-01-25 John W D’Attoma, Clara Volintiru, Antoine Malézieux
This paper brings an important empirical contribution to the academic literature by examining whether gender differences in tax compliance are due to higher prosociality among women. We conducted a large cross-national tax compliance experiment carried out in Italy, U.K., U.S., Sweden, and Romania, and assessed tax compliance as reported income as a percentage of total earned income in the experiment
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Are Tax Amnesties Good for Us All? Understanding Influence of Tax Amnesties on Benefiters and Non-Benefiters CESifo Econ. Stud. (IF 1.231) Pub Date : 2020-01-17 Recep Yücedoğru,İdris Sarisoy
Abstract This article aims to investigate the effect of tax amnesties on tax compliance decisions of taxpayers. In particular, we focused on Turkish taxpayers’ fairness perceptions and their voluntary tax compliance after the recent legislation of 6736, which is claimed to be the biggest tax amnesty (for example, tax debt restructuring legislation) in the last decade. This article also investigates
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Flying under the Radar: Ghosts and the Income Tax CESifo Econ. Stud. (IF 1.231) Pub Date : 2020-01-13 Brian Erard, Patrick Langetieg, Mark Payne, Alan Plumley
The tax compliance literature is primarily focused on taxpayers who fail to accurately report their taxes when they file their returns. In this paper, our focus is on “ghosts” – individuals who do not even file a tax return. To learn more about this relatively understudied population, we examine a combination of US administrative data and matched Census survey data. Our results indicate that 10-12
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Do Audits Deter or Provoke Future Tax Noncompliance? Evidence on Self-Employed Taxpayers CESifo Econ. Stud. (IF 1.231) Pub Date : 2020-01-09 Sebastian Beer, Matthias Kasper, Erich Kirchler, Brian Erard
This paper employs unique tax administrative data and operational audit information from a sample of approximately 7,500 self-employed U.S. taxpayers to investigate the effects of operational tax audits on future reporting behavior. Our estimates indicate that audits can have substantial deterrent or counter-deterrent effects. Among those taxpayers who receive an additional tax assessment, reported
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Frontloaded Income Taxation of Old-Age Pensions: For Efficiency and Fairness in a World of International Labor Mobility CESifo Econ. Stud. (IF 1.231) Pub Date : 2020-01-09 Bernd Genser, Robert Holzmann
A comparative inspection of the rules of cross-border pension taxation across member countries of the Organization of Economic Cooperation and Development (OECD) shows that the existing pattern is extremely diverse and inconsistent and generates unfair outcomes for individuals and for countries. This article argues that this double fairness dilemma cannot be solved within the current network of double
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Penetration of Digital Payments in Greece after Capital Controls: Determinants and Impact on VAT Revenues CESifo Econ. Stud. (IF 1.231) Pub Date : 2020-01-03 Svetoslav Danchev,Georgios Gatopoulos,Nikolaos Vettas
Abstract The use of payment cards in Greece more than tripled in value between 2014 and 2017. Their penetration lifted off with the imposition of capital controls in 2015 and then remained on an uptrend, aided further by the measures of law 4446/2016. According to the findings of the study: (i) the law had a statistically significant, positive impact on card usage, especially in the second half of
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Perspectives on Public Sector Outsourcing: Quasi-markets and Prices CESifo Econ. Stud. (IF 1.231) Pub Date : 2019-12-01 Henrik Jordahl
Public sector outsourcing, in the form of private production of tax-financed services, is on the increase with economic and social consequences for consumers, taxpayers, and employees. The development has given rise to so-called quasi-markets with choice and competition between public, for-profit, and non-profit providers. By introducing the main characteristics of quasi-markets with a focus on prices
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Effectiveness of Private and Public High Schools: Evidence from Finland CESifo Econ. Stud. (IF 1.231) Pub Date : 2019-11-18 Mika Kortelainen, Kalle Manninen
A number of papers have compared the effectiveness of private and public schools in different institutional settings. However, most of these studies are observational and do not utilize experimental or quasi-experimental design to evaluate the value-added or the effectiveness of private schools in comparison to public schools. This study focuses on private and public high schools in Helsinki, the capital
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Tradeoff between Default Risk and Efficiency Loss CESifo Econ. Stud. (IF 1.231) Pub Date : 2019-11-14 Jin Hyung Lee
Abstract The study characterizes an equilibrium bid function with three bidders in an average bid auction (ABA), where a winning bid is the one closest to an average of all submitted bids, when a cost overrun can occur, and an insolvent winner is penalized. First of all, every bidder bids an identical amount in the absence of the penalty. Meanwhile, when the penalty is charged high enough to prevent
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What Do We Really Know about the Transatlantic Current Account? CESifo Econ. Stud. (IF 1.231) Pub Date : 2019-09-01 Martin T Braml, Gabriel J Felbermayr
Do the U.S. have a current account surplus or a deficit with the EU? Since 2009, official sources disagree: The U.S. Department of Commerce claims a consistent U.S. surplus while Eurostat reports the opposite. International transactions are notoriously difficult to measure accurately, but the size of the transatlantic discrepancy is extremely substantial: over the last ten years, it has grown to accumulated
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How Do Labor Representatives Affect Incentive Orientation of Executive Compensation? CESifo Econ. Stud. (IF 1.231) Pub Date : 2019-08-13 Katharina Dyballa, Kornelius Kraft
Contrary to previous literature we hypothesize that labor's interest may well – like that of shareholders – aim at securing the long-run survival of the firm. Consequently, employee representatives on the supervisory board could well have an interest in increasing incentive-based compensation to avoid management's excessive risk taking and short-run oriented decisions. We compile unique panel data