This paper analyzes the impact of the COVID-19 crisis on household income in Austria, using detailed administrative labor market data, in combination with micro-simulation techniques that enable ...specific labor market transitions to be modeled. We find that discretionary fiscal policy measures in Austria are key to counteracting the inequality- and poverty-enhancing effect of COVID-19. Additionally, we find that females tend to experience a greater loss in terms of market income. The Austrian tax-benefit system, however, reduces this gender differences. Disposable income has dropped by around 1% for both males and females. By comparison, males profit mainly from short-time work scheme, while females profit especially from other discretionary policy measures, such as the one-off payment for children.
Wir untersuchen die Mittelschicht in Österreich und Deutschland, wobei ein besonderer Fokus auf den Veränderungen der vergangenen 20 Jahre liegt. Es wird gezeigt, dass sich die Mittelschicht in ...Deutschland und Österreich in ihrer Zusammensetzung hinsichtlich Bildung, Familienkonstellationen und Alter verändert hat, aber immer noch in beiden Ländern, in Österreich etwas mehr als in Deutschland, den Großteil der Bevölkerung umfasst. Anschließend analysieren wir die Bedeutung der Mittelschicht für den Sozialstaat beider Länder.
We examine the changes and evolution of the middle class in Austria and Germany over the past 20 years. During that period, the middle class in Germany and Austria has changed in terms of education, family constellations and age. In both countries, however, a large part of the population still belongs to the middle class. In Austria, the percentage of people in the middle class appears to be stable and is slightly higher than in Germany. During the COVID-19 crisis, discretionary policy measures have been effective in limiting welfare losses for the middle class. Finally, we analyse the importance of the middle class for the welfare state of both countries.
SUMMARY
This paper investigates the determinants of public‐sector efficiency, in particular the role of fiscal decentralization and fiscal rules. For 23 European countries over the period from 1995 ...to 2015, we construct a measure of public‐sector performance consisting of nine distinct indices for each area of public policy, such as administration, health education, economic performance, security and infrastructure.
We use several efficiency techniques, e.g., free disposal hull and order‐m, and investigate input‐and output‐oriented efficiency in the public sector. We analyse in depth the impact of fiscal decentralization and fiscal rules on public‐sector efficiency. We conclude that, whereas decentralization fosters efficiency, fiscal rules have no effect. Moreover, fiscal rules, when combined with decentralization, may harm efficiency, which is consistent with the ratchet effect.
•We analyze the effect of rising shares of renewable energy sources in the generation and transmission sector.•We develop a real options model that allows us to study the two sectors ...simultaneously.•We find that increasing penetration through renewables leads to investment postponement in both sectors.•We analyze the risk implications of the additional investments into clean energy sources.
The recent trend toward decarbonization led to crucial challenges for network operators and regulators in terms of network reliability and optimal grid expansion. In order to analyze the effects of rising shares of renewable energy sources on investment decisions in both, the generation and the transmission sector, the following article brings together the two sectors in a single real options framework. This allows us to derive the optimal timing of the production capacity expansion and the optimal transmission price which assures its connection. We find that an increasing penetration through renewables leads to investment postponement in both sectors, which goes along with increased systematic risk. However, we show that the negative effects on the transmission firm can be overcome by choosing an appropriate incentive system.
This paper takes a closer look at the existing early retirement schemes in Austria and analyses whether early retirement imposes a financial burden on the pension system (actuarial neutrality). ...Additionally, we compute incentive-neutral deductions for early retirement. These deductions reflect the view of the individual, who faces option of retiring earlier or working another year. Incentive neutral deductions would imply that an individual is indifferent between both. Our results highlight substantial differences between both measures. While the current deduction rate of 5.1% in the Austrian age corridor is, on average, close to actuarial neutrality, it is lower than the incentive-neutral deductions. This indicates that there are financial incentives for early retirement, which may arise due to the Austrian tax system. Additionally, we show that both actuarial and incentive neutrality differ substantially across socio-economic characteristics, such as gender, wages and (early) retirement age.
The aim of this study is to analyze redistribution within the Austrian tax-benefits system. In this work, we take a comprehensive view and include not only direct taxation and cash benefits but also ...indirect taxes and in-kind transfers. We look at two kinds of redistribution: between households belonging to different income groups, and between generations, taking a life-cycle perspective. Our analysis shows that indirect taxes (as understood in previous literature) have a regressive effect on the tax-benefits system. In contrast, in-kind benefits seem to have a progressive effect. To analyze the impact of both, we extend our income concept to include both indirect taxes and in-kind benefits. If we look at the distributional impact, we find that the inequality-enhancing effect of indirect taxes is more than offset by the inequality-reducing effect of in-kind benefits. The Gini coefficient increases from 0.24 to 0.26 due to indirect taxes, but when adding in-kind benefits, the Gini coefficient is reduced to 0.23. The overall effect of both indirect taxes and in-kind benefits is progressive.
•We analyze effect of direct taxation, cash and in-kind benefits, and indirect taxes.•Indirect taxes have a regressive effect; in-kind benefits have a progressive effect.•Effect of indirect taxes is more than off-set by the effect of in-kind benefits.
Die kalte Progression in Österreich Kucsera, Dénes; Lorenz, Hanno; Reitschuler, Gerhard
Wirtschaftsdienst (Hamburg),
07/2023, Letnik:
103, Številka:
7
Journal Article
Recenzirano
Odprti dostop
Die Inflationsraten in Europa verzeichneten in den vergangenen Monaten die höchstenZuwächse der zurückliegenden Jahrzehnte. Österreich hatte für das Gesamtjahr 2022 eineRate von 8,6 %, Deutschland ...8,7 %. Ein Profiteur der steigenden Preise ist der Staat, dessenSteuereinnahmen starken Zuwachs erleben. Verantwortlich dafür ist die "kalte Progression",also eine verdeckte Steuererhöhung, die alle Einkommensteuerzahler:innen trifft. InÖsterreich wurde die kalte Progression üblicherweise bislang indirekt, im Rahmen periodischdurchgeführter Steuerreformen zurückgegeben - allerdings nur zum Teil und nicht explizit alsKompensation der kalten Progression.
In Austria, bracket creep has so far only been partially returned to the taxpayer within periodic tax reforms. As of 2022, thefederal government has decided to fully compensate for the bracket creep, albeit not automatically for every taxpayer, but within theframework of compensation differentiated by income tax brackets with a discretionary component accounting for around one-third ofthe annual bracket creep burden. A full adjustment along the lines of the Swiss model would have been desirable. If lower income taxbrackets continue to be adjusted stronger like upper income tax brackets in upcoming years, full-time employment will be further dis-couraged.
Die kalte Progression in Österreich Kucsera, Dénes; Lorenz, Hanno; Reitschuler, Gerhard
Wirtschaftsdienst,
07/2023, Letnik:
103, Številka:
7
Journal Article
Recenzirano
Odprti dostop
In Austria, bracket creep has so far only been partially returned to the taxpayer within periodic tax reforms. As of 2022, the federal government has decided to fully compensate for the bracket ...creep, albeit not automatically for every taxpayer, but within the framework of compensation differentiated by income tax brackets with a discretionary component accounting for around one-third of the annual bracket creep burden. A full adjustment along the lines of the Swiss model would have been desirable. If lower income tax brackets continue to be adjusted stronger like upper income tax brackets in upcoming years, full-time employment will be further discouraged.
Abstract We examine the changes and evolution of the middle class in Austria and Germany over the past 20 years. During that period, the middle class in Germany and Austria has changed in terms of ...education, family constellations and age. In both countries, however, a large part of the population still belongs to the middle class. In Austria, the percentage of people in the middle class appears to be stable and is slightly higher than in Germany. During the COVID-19 crisis, discretionary policy measures have been effective in limiting welfare losses for the middle class. Finally, we analyse the importance of the middle class for the welfare state of both countries.
With the liberalization of energy markets integrated energy companies have separated into entities that specialize in production and/or transmission of energy. Transmission of energy requires ...balancing the grid to guarantee system security, which is performed by the (independent) system operator (SO). When the SO faces stochastic demand, grid balancing has sizeable consequences on current and future profits, and hence, on firm value and firm risk. We explore these value and risk consequences with and without an investment option to expand transmission capacity. We show that firm value consists of the value of the transmission capacity in place plus the value of a short put and a short call option that are the result of the SO's balancing actions. Firm risk without investment option is non-linear and determined by the short option positions. It is decreasing with increasing energy demand. The existence of an option to expand transmission capacity increases firm value and firm risk.
► Grid balancing under stochastic demand affect current and future revenues, and firm value and firm risk. ► Balancing firm value consists of the value of the transmission capacity plus the value of a short strangle. ► Firm risk without investment option is determined by the short strangle and decreasing with increasing energy demand. ► The existence of an expansion option implies that transmission capacity increases firm value and firm risk.
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