Allocative and Distributive Effects of Tax and Transfer Policies
ZEW conducts evidence-based economic policy research on a range of high-visibility topics, including the digital transformation, European integration, and the energy transition.
These are tackled by ZEW’s research units.
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Pensions & Green FinancePensions and Sustainable Financial Markets
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LabourLabour Markets and Social Insurance
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DigitalisationDigital Economy
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HealthHealth Care Markets and Health Policy
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Innovation & FirmsEconomics of Innovation and Industrial Dynamics
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Market DesignMarket Design
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Society & InequalityInequality and Public Policy
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Taxes & Fiscal AffairsCorporate Taxation and Public Finance
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EnvironmentEnvironmental and Climate Economics
Current projects
Allocative and Distributive Effects of Tax and Transfer Policies
In this project, the existing system of models, PACE, will be further developed. The aim is to analyse the effects of taxation and social security contributions on the level and the structure of unemployment. The focus will be on allocative and distributive effects of the following policies: general tax cuts, tax schedule modifications, ecological tax reform, a cut in social security contributions, wage subsidies, alternative financing of social security systems. The detailed model of the labour market will feature heterogenous skill types of labour and differentiated households.