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Supply-Side Economics of Germany’s Year 2000 Tax Reform: A Quantitative Assessment

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  • Strulik Holger

    (University of Hamburg,Hamburg, Germany)

Abstract

The paper provides an assessment of supply-side economics following Germany’s year 2000 tax reform. Investigated are a corporate tax cut, deteriorating depreciation allowances and imputation rules, and a private income tax cut. For this purpose, a neoclassical growth model is augmented by various fiscal policy parameters and endogenous corporate finance and calibrated with German data. The model is used to evaluate consequences of Germany’s tax reform on production, firm finance and leverage, investment, consumption and welfare of a representative household.

Suggested Citation

  • Strulik Holger, 2003. "Supply-Side Economics of Germany’s Year 2000 Tax Reform: A Quantitative Assessment," German Economic Review, De Gruyter, vol. 4(2), pages 183-202, May.
    • Handle: RePEc:bpj:germec:v:4:y:2003:i:2:p:183-202
    DOI: 10.1111/1468-0475.00078
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    Cited by:

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    2. Doina Radulescu & Michael Stimmelmayr, 2010. "The welfare loss from differential taxation of sectors in Germany," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 17(2), pages 193-215, April.

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