Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/64816
Authors: 
Koester, Gerrit B.
Priesmeier, Christoph
Year of Publication: 
2012
Series/Report no.: 
Discussion Paper, Deutsche Bundesbank 23/2012
Abstract: 
We analyse tax revenue elasticities by applying dynamic models to a new disaggregated dataset for Germany, which is adjusted for the effects of tax reforms. We estimate long-run elasticities that are substantially lower than in comparable studies for profit-related taxes and are slightly lower for value-added taxes, whereas the long-run elasticity for wage taxes is close to the consensus estimate in the literature. Additionally, we find that differences between short- and long-run elasticities are particularly important with respect to profit-related taxes. Here we estimate a far lower contemporaneous response to tax base changes than other studies and a dynamic reaction pattern spanning several years, which can be explained, for example, by tax collection lags.
Subjects: 
Dynamic tax revenue elasticities
Disaggregated analysis
Error correction models
JEL: 
H2
H24
H25
E26
ISBN: 
978-3-86558-842-5
Document Type: 
Working Paper

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