Margit Kraus

European Schemes of Social Assistance: An Empirical Analysis of Set-Ups and Distributive Impacts

This paper analyses the distributive impacts of various regulatory and institutional settings of European schemes of social assistance. For this purpose, two sets of classifications of European schemes of social assistance are introduced that classify the systems according to regulatory arrangements and degree of centralisation, respectively. Subsequently, the distributive impacts of five selected EU systems are calculated on the basis of LIS data and their relationship to class assignment is investigated.

Economic Effects of Vat Reform in Germany

In the tax policy debate, differentiation of value-added taxes (VAT) is often justified by distributional concerns. Our quantitative analysis for Germany indicates that such concerns are misplaced. We find that the abolition of VAT differentiation has only negligible redistributive effects. Instead, reduced VAT rates are found to act as industry-specific subsidies. Whereas the overall welfare effects of pure VAT reforms are very small, a revenue-neutral introduction of a harmonized VAT combined with reductions in the marginal income tax rates or social security contributions turns out to yield substantial welfare gains for all households.

Social Security Strategies and Redistributive Effects in European Social Transfer Systems

This paper evaluates the linkage between social security strategies and redistributive effects in EU social transfer systems. It is argued that the various European systems produce different patterns of redistribution that may be explained by the adoption of different mixes of social security strategies. In support of this argument, several idealtypical strategies are characterized and a classification of European social transfer systems is introduced. Subsequently, the redistributive effects of the systems are assessed and the relationship to their class assignment is investigated. We conclude that the redistributive effects differ markedly between systems of different classes, indicating that redistributive patterns are heavily influenced by the adopted strategy mix.

Savings, Expectations and Technological Unemployment A Generalization of Assumptions for the Hicksian Fixwage Traverse

This paper examines the role of alternative assumptions on savings and expectations for the fixwage traverse with strong forward biased technological change. After briefly outlining the model, some peculiarities of the adjustment path under the Hicksian Q-Assumption are investigated. Subsequently, the consequences of several savings functions consistent with the assumption of static expectations are explored. With all but one of these assumptions the possibility of permanent technological unemployment emerges. Additionally, the assumption of adaptive expectations is introduced, in which case technological unemployment throughout the early phase prevails. Furthermore, oscillating growth rates emerge, indicating the possibility of technologically caused business cycles.