Matthias Wrede | Friedrich-Alexander-Universität Erlangen-Nürnberg (original) (raw)

Papers by Matthias Wrede

Research paper thumbnail of CESifo Working Paper No . 729 SMALL STATES , LARGE UNITARY STATES AND FEDERATIONS

Employing a political-economics approach, this paper compares small states and unions when the fo... more Employing a political-economics approach, this paper compares small states and unions when the former fail to internalize cross-border externalities of publicly provided goods. It discusses two types of unions: federations with more than one level of government and unitary states. While unitary states are unable to differentiate public spending according to differing preferences, rents of governments in a federation are higher due to a common-pool problem. The comparison leads to the following results. (1) Citizens prefer small states to large states if spillover effects are weak. (2) They benefit from a multi-level government only if their preferences heavily differ from the median-voter's preferences and if spillovers are strong. Based on this comparison the paper also discusses the creation of unions. Making specific assumption on the distribution of preferences , it analyzes strong Nash equilibria and coalition-proof equilibria at the union formation stage.

Research paper thumbnail of Nachgelagerte Besteuerung der Altersvorsorge und „vorgelagerte“ Besteuerung anderer Ersparnisse: Konsequenzen für die Vorsorge- und Nachlassplanung

Journal of Contextual Economics – Schmollers Jahrbuch

Die "Sachverständigenkommission zur Neuordnung der steuerrechtlichen Behandlung von Altersvorsorg... more Die "Sachverständigenkommission zur Neuordnung der steuerrechtlichen Behandlung von Altersvorsorgeaufwendungen und Altersbezügen" fordert in ihrem Abschlussbericht vom 11. März 2003 einerseits die reine Altersvorsorge vollständig nachgelagert zu besteuern und andererseits Ersparnisse, die auch anderen Zwecken als der Altersvorsorge dienen können, vorgelagert zu besteuern. Dieser Kommentar zeigt auf, dass diese Differenzierung ein Anreiz zur Steuervermeidung darstellt und rationale Steuerpflichtige dazu bringen sollte bzw. wird, die Altersvorsorge zu Lasten der Ersparnis auszudehnen.

Research paper thumbnail of Political alignment and project funding

International Tax and Public Finance, Aug 23, 2022

We analyze the relationship between the party affiliation of politicians at different levels of g... more We analyze the relationship between the party affiliation of politicians at different levels of government and the spatial distribution of funding for research, development and innovation projects. In particular, we are investigating whether more federal grants are being granted in Germany for projects in federal states whose government is led by the same political party as the responsible ministry at federal level. Our dataset contains detailed information on publicly funded projects in Germany in the period 2010-2019. Using a fixed-effects estimation approach, we find a link between grant allocation and party affiliation of funding for research, development and innovation projects, in particular smaller ones. For these projects, political alignment is associated with an average increase in public funding by almost 10,000 euro. Our results suggest that public funds for research, development and innovation projects could be used more efficiently than they are.

Research paper thumbnail of Political alignment and project funding

International Tax and Public Finance

We analyze the relationship between the party affiliation of politicians at different levels of g... more We analyze the relationship between the party affiliation of politicians at different levels of government and the spatial distribution of funding for research, development and innovation projects. In particular, we are investigating whether more federal grants are being granted in Germany for projects in federal states whose government is led by the same political party as the responsible ministry at federal level. Our dataset contains detailed information on publicly funded projects in Germany in the period 2010–2019. Using a fixed-effects estimation approach, we find a link between grant allocation and party affiliation of funding for research, development and innovation projects, in particular smaller ones. For these projects, political alignment is associated with an average increase in public funding by almost 10,000 euro. Our results suggest that public funds for research, development and innovation projects could be used more efficiently than they are.

Research paper thumbnail of Spatial Economics

This article provides a general overview of spatial economics, which covers location theory, spat... more This article provides a general overview of spatial economics, which covers location theory, spatial competition, and regional and urban economics. After a brief review of the main theoretical traditions, the fundamental role of non-convexities and imperfect competition is highlighted. The main challenges faced by theoretical and empirical research are also discussed, followed by a broader discussion of the relationship between this field of research and other subfields of economics and other disciplines. What is spatial economics? In a nutshell, spatial economics is concerned with the allocation of (scarce) resources over space and the location of economic activity. Depending on how this definition is read, the realm of spatial economics may be either extremely broad or rather narrow. On the one hand, economic activity has to take place somewhere so that spatial economics may be concerned with anything that economics is concerned about. On the other hand, location analysis focuses mostly on one economic question, namely, location choice. This is only one decision among a large number of economic decisions. Which boundaries for spatial economics? In practice, we can distinguish three sets of questions for which the importance of the spatial dimension is very different. Consider first the core questions of spatial economics. For example, why are there cities? Why do some regions prosper while others do not? Why do we observe residential segregation? Why do firms from the same industry cluster? These are intrinsically 'spatial' questions, that is, questions in which the spatial dimension plays a dominant

Research paper thumbnail of Public Acceptance of Regional Redistribution in Germany: A Survey Experiment on the Perceived Deservingness of Regions

Journal of Social Policy

Many policies target the economic and social consequences of regional inequality. This study expe... more Many policies target the economic and social consequences of regional inequality. This study experimentally investigates factors explaining the public degree of consent to financial transfers to disadvantaged regions. The main hypothesis of this study is that most people use the deservingness-heuristic not only to judge individuals but also to judge regions. We argue that people advocate interregional transfers based on perceived deservingness determined by recipient region’s need, lack of responsibility for the need, likelihood of reciprocity, and by a shared identity. To support this hypothesis, we conducted a factorial survey in Germany asking respondents to rate transfers to needy regions under different hypothetical conditions. We demonstrate, as predicted by the deservingness hypothesis, that consent to transfers to other regions is positively influenced by the extent of need and, in particular, past effort of the recipient region as well as by a shared identity. The results s...

Research paper thumbnail of Breaking the norms: When is evading inheritance taxes socially acceptable?

European Journal of Political Economy, 2017

Using the example of inheritance tax, we examine the relationship between the structure of the ta... more Using the example of inheritance tax, we examine the relationship between the structure of the tax and the strength of the social tax compliance norm. Based on the assumption that deviation from a legal norm is the more accepted the less its underlying principles are jeopardized, we argue that violating the tax compliance norm is socially justifiable if revenue requirements as well as equity and efficiency tax principles are not infringed upon by the evasion. Building on the literature on tax evasion, optimal inheritance taxation, and family economics, we hypothesize that a large non-declared amount of transfer and a high liquidity of the transferred asset decrease the acceptability of inheritance tax evasion and that both a high degree of kinship and young age of the heir increase the acceptance of evasion. Utilizing an experimental design embedded in a survey on the acceptance of inheritance tax evasion conducted in Germany in 2012, we confirm these hypotheses empirically.

Research paper thumbnail of Rational choice of itemized deductions

This paper analyzes the effect of standard deductions on itemized deductions. Using German income... more This paper analyzes the effect of standard deductions on itemized deductions. Using German income tax data, it shows that the distribution of itemized deductions above the level of the standard deduction is positively skewed, with the mode lying somewhat above the standard deduction. This pattern of claimed tax allowable expenses could be easily explained by the rational minimization of tax payments in excess of the costs of reporting these deductions. An alternative explanation, namely tax aversion, is unable to replicate this pattern, as tax aversion would predict bunching of taxpayers directly above the lump-sum deduction.

Research paper thumbnail of Collusive tax evasion and social norms

International Tax and Public Finance, 2016

Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch ge... more Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in EconStor may be saved and copied for your personal and scholarly purposes. You are not to copy documents for public or commercial purposes, to exhibit the documents publicly, to make them publicly available on the internet, or to distribute or otherwise use the documents in public. If the documents have been made available under an Open Content Licence (especially Creative Commons Licences), you may exercise further usage rights as specified in the indicated licence.

Research paper thumbnail of The Influence of State Politics on Solar Energy Auction Results

Energy Policy, 2022

In this paper, we analyze the impact of policy-induced opportunity costs and restrictions on the ... more In this paper, we analyze the impact of policy-induced opportunity costs and restrictions on the outcomes of auctions to subsidize ground-mounted photovoltaic (PV) systems in Germany since 2015. First, we examine the incidence of opportunity cost reductions for some suppliers in a simple theoretical auction model. Second, we descriptively study the volumes and prices in PV auctions in Germany. Finally, we analyze a quasi-experiment: the opening of auctions for farmland in disadvantaged areas in some German states from 2017. We show that policy-induced opportunity cost reductions lead to greater success in PV auctions only in the state of Bavaria, which has more generous quantity restrictions and is generally expected to be more supportive of solar power suppliers after 2017. As a result, there is an interregional redistribution in favor of a single state that enables and administratively effectively implements support for disadvantaged areas.

Research paper thumbnail of Fair inheritance taxation in the presence of tax planning

Journal of Behavioral and Experimental Economics, 2014

Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch ge... more Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in EconStor may be saved and copied for your personal and scholarly purposes. You are not to copy documents for public or commercial purposes, to exhibit the documents publicly, to make them publicly available on the internet, or to distribute or otherwise use the documents in public. If the documents have been made available under an Open Content Licence (especially Creative Commons Licences), you may exercise further usage rights as specified in the indicated licence.

Research paper thumbnail of How Short-term Rentals are Changing the Neighborhood

International Regional Science Review, 2022

This paper examines how short-term rentals are changing living conditions and the composition of ... more This paper examines how short-term rentals are changing living conditions and the composition of the population in affected parts of a town. First, to analyze the relation between quality, distance, and rents, we develop a spatial monocentric city model with varying housing quality levels. Second, for 200 m grids in the city of Berlin (Germany) in 2019, we show that the proportion of low and medium quality residential units correlates positively near the city center with the probability of Airbnb listings and the number of these listings, but negatively in the suburbs. Third, applying fixed effect and IV strategies, we investigate the impact of Airbnb listings on living conditions and the composition of the population in the almost 450 planning areas of Berlin in the years 2016–2019. We show that Airbnb offers increase the number of residents with long periods of residence and reduce the number of residents in low-quality residential environments, but we do not find above-average effects on socially weak groups.

Research paper thumbnail of Multinational Capital Structure and Tax Competition

FEN: Differences in Taxation & Corporate Finance (Topic), 2009

This paper analyzes tax competition when welfare maximizing jurisdictions levy source-based corpo... more This paper analyzes tax competition when welfare maximizing jurisdictions levy source-based corporate taxes and multinational enterprises choose tax-efficient capital-to-debt ratios. Under separate accounting, multinationals shift debt from low-tax to high-tax countries. The Nash equilibrium of the tax competition game is characterized by underprovision of publicly provided goods. Under formula apportionment, the country-specific capital-to-debt ratio of a multinational’s affiliate is independent of the jurisdiction’s tax rate. Public good provision is either too large or too small. If the debt externality is not negative, there is clearly underprovision under formula apportionment.

Research paper thumbnail of Continuous Logit Polycentric City Model

This paper analyzes a closed, essentially linear polycentric city with homogenous households who ... more This paper analyzes a closed, essentially linear polycentric city with homogenous households who probabilistically select their workplace and residence locations. The study utilizes a continuous logit model to describe household location choices. In contrast to the classic urban model with deterministic location choices, the continuous logit model predicts noticeable direct effects of more than one workplace on land rents, asymmetry of the land rent schedule around secondary business districts, incomplete segregation of citizens who work in different business centers and, therefore, cross commuting, and incomplete segregation of workers and farmers.

Research paper thumbnail of Mobility and Reliefs for Traveling Expenses to Work by

This paper proposes the question whether or not traveling expenses to work should be deductible f... more This paper proposes the question whether or not traveling expenses to work should be deductible from the income tax base. In order to answer this question, a simple model of (im-) perfect household and worker mobility is employed. The focus of the analysis is on the efficient use of land and the efficient allocation of people and labor in a multi-region framework. The paper shows that deductibility is inefficient only if households are per-fectly mobile and if households cannot choose their place of work. If the region of work is not exogenously fixed, traveling expenses to work should be deductible at more than one hundred percent, even if households choose simultaneously the place of work and the region of residence, and even if tax rates are not standardized within the federation.

Research paper thumbnail of Lending by credit cooperatives, savings banks and other banks during the Covid-19 pandemic in Germany

Zeitschrift für das gesamte Genossenschaftswesen

We examine long-term lending in the course of the Covid-19 pandemic in Germany. We show that the ... more We examine long-term lending in the course of the Covid-19 pandemic in Germany. We show that the pandemic is associated with increased lending by credit cooperatives and savings banks. The restrictions imposed by governments on social and economic life and the economic impact thereof, measured in terms of planned short-time work, show a significant correlation with the level of lending by all banks.

Research paper thumbnail of Voting on urban land development

Journal of Regional Science

In this paper, we analyze several local referendums on land development and land-use regulation i... more In this paper, we analyze several local referendums on land development and land-use regulation in the City of Erlangen (Germany) between 2011 and 2018. To identify the positive influence of the travel distance on approval for land development, we control for distance to the city center and density, employ a two-way fixed-effect model, and use spatial instruments. We also analyze the heterogeneity of city dwellers' preferences for the development of residential and commercial areas. In particular, we examine the differences between homeowners and tenants in this regard.

Research paper thumbnail of Schützt finanzielle Bildung vor der Unsicherheitsfalle?

Vierteljahrshefte zur Wirtschaftsforschung

Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch ge... more Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in EconStor may be saved and copied for your personal and scholarly purposes. You are not to copy documents for public or commercial purposes, to exhibit the documents publicly, to make them publicly available on the internet, or to distribute or otherwise use the documents in public. If the documents have been made available under an Open Content Licence (especially Creative Commons Licences), you may exercise further usage rights as specified in the indicated licence.

Research paper thumbnail of Attraktivität hat ihren Preis: hohe reale Wohnkosten, weites Pendeln oder lange Warteschlangen

Zeitschrift für Immobilienökonomie

Zusammenfassung Höhere Mieten bzw. Immobilienpreise und/oder niedrige Löhne werden auf funktionie... more Zusammenfassung Höhere Mieten bzw. Immobilienpreise und/oder niedrige Löhne werden auf funktionierenden Märkten die höhere natürliche Standortattraktivität einer Region bzw. ein attraktiveres Angebot öffentlicher Güter ausgleichen, wenn die Menschen Wohn- und Arbeitsort frei wählen können. Wenn Lohn- und Mietenunterschiede zwischen lokalen Wohnungs- und Arbeitsmärkten durch staatliche Preisregulierung verhindert bzw. reduziert werden, dann führt das in einigen Regionen zu Nachfrage- und in anderen Regionen zu Angebotsüberschüssen. Wanderungsbewegungen, die Versorgungsengpässe verstärken können, werden ausgelöst. Auf Märkten mit Friktionen allerdings haben neben Preisen auch Mengen eine kompensatorische Funktion. Längere Suchzeiten auf lokalen Wohnungs- und Arbeitsmärkten wirken ebenfalls den Anziehungskräften attraktiver Standorte entgegen. Dieser Aufsatz stellt die grundlegenden Mechanismen dar und erläutert diese anhand stilisierter Fakten.

Research paper thumbnail of Spatial and social mobility

Journal of Regional Science

Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch ge... more Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in EconStor may be saved and copied for your personal and scholarly purposes. You are not to copy documents for public or commercial purposes, to exhibit the documents publicly, to make them publicly available on the internet, or to distribute or otherwise use the documents in public. If the documents have been made available under an Open Content Licence (especially Creative Commons Licences), you may exercise further usage rights as specified in the indicated licence.

Research paper thumbnail of CESifo Working Paper No . 729 SMALL STATES , LARGE UNITARY STATES AND FEDERATIONS

Employing a political-economics approach, this paper compares small states and unions when the fo... more Employing a political-economics approach, this paper compares small states and unions when the former fail to internalize cross-border externalities of publicly provided goods. It discusses two types of unions: federations with more than one level of government and unitary states. While unitary states are unable to differentiate public spending according to differing preferences, rents of governments in a federation are higher due to a common-pool problem. The comparison leads to the following results. (1) Citizens prefer small states to large states if spillover effects are weak. (2) They benefit from a multi-level government only if their preferences heavily differ from the median-voter's preferences and if spillovers are strong. Based on this comparison the paper also discusses the creation of unions. Making specific assumption on the distribution of preferences , it analyzes strong Nash equilibria and coalition-proof equilibria at the union formation stage.

Research paper thumbnail of Nachgelagerte Besteuerung der Altersvorsorge und „vorgelagerte“ Besteuerung anderer Ersparnisse: Konsequenzen für die Vorsorge- und Nachlassplanung

Journal of Contextual Economics – Schmollers Jahrbuch

Die "Sachverständigenkommission zur Neuordnung der steuerrechtlichen Behandlung von Altersvorsorg... more Die "Sachverständigenkommission zur Neuordnung der steuerrechtlichen Behandlung von Altersvorsorgeaufwendungen und Altersbezügen" fordert in ihrem Abschlussbericht vom 11. März 2003 einerseits die reine Altersvorsorge vollständig nachgelagert zu besteuern und andererseits Ersparnisse, die auch anderen Zwecken als der Altersvorsorge dienen können, vorgelagert zu besteuern. Dieser Kommentar zeigt auf, dass diese Differenzierung ein Anreiz zur Steuervermeidung darstellt und rationale Steuerpflichtige dazu bringen sollte bzw. wird, die Altersvorsorge zu Lasten der Ersparnis auszudehnen.

Research paper thumbnail of Political alignment and project funding

International Tax and Public Finance, Aug 23, 2022

We analyze the relationship between the party affiliation of politicians at different levels of g... more We analyze the relationship between the party affiliation of politicians at different levels of government and the spatial distribution of funding for research, development and innovation projects. In particular, we are investigating whether more federal grants are being granted in Germany for projects in federal states whose government is led by the same political party as the responsible ministry at federal level. Our dataset contains detailed information on publicly funded projects in Germany in the period 2010-2019. Using a fixed-effects estimation approach, we find a link between grant allocation and party affiliation of funding for research, development and innovation projects, in particular smaller ones. For these projects, political alignment is associated with an average increase in public funding by almost 10,000 euro. Our results suggest that public funds for research, development and innovation projects could be used more efficiently than they are.

Research paper thumbnail of Political alignment and project funding

International Tax and Public Finance

We analyze the relationship between the party affiliation of politicians at different levels of g... more We analyze the relationship between the party affiliation of politicians at different levels of government and the spatial distribution of funding for research, development and innovation projects. In particular, we are investigating whether more federal grants are being granted in Germany for projects in federal states whose government is led by the same political party as the responsible ministry at federal level. Our dataset contains detailed information on publicly funded projects in Germany in the period 2010–2019. Using a fixed-effects estimation approach, we find a link between grant allocation and party affiliation of funding for research, development and innovation projects, in particular smaller ones. For these projects, political alignment is associated with an average increase in public funding by almost 10,000 euro. Our results suggest that public funds for research, development and innovation projects could be used more efficiently than they are.

Research paper thumbnail of Spatial Economics

This article provides a general overview of spatial economics, which covers location theory, spat... more This article provides a general overview of spatial economics, which covers location theory, spatial competition, and regional and urban economics. After a brief review of the main theoretical traditions, the fundamental role of non-convexities and imperfect competition is highlighted. The main challenges faced by theoretical and empirical research are also discussed, followed by a broader discussion of the relationship between this field of research and other subfields of economics and other disciplines. What is spatial economics? In a nutshell, spatial economics is concerned with the allocation of (scarce) resources over space and the location of economic activity. Depending on how this definition is read, the realm of spatial economics may be either extremely broad or rather narrow. On the one hand, economic activity has to take place somewhere so that spatial economics may be concerned with anything that economics is concerned about. On the other hand, location analysis focuses mostly on one economic question, namely, location choice. This is only one decision among a large number of economic decisions. Which boundaries for spatial economics? In practice, we can distinguish three sets of questions for which the importance of the spatial dimension is very different. Consider first the core questions of spatial economics. For example, why are there cities? Why do some regions prosper while others do not? Why do we observe residential segregation? Why do firms from the same industry cluster? These are intrinsically 'spatial' questions, that is, questions in which the spatial dimension plays a dominant

Research paper thumbnail of Public Acceptance of Regional Redistribution in Germany: A Survey Experiment on the Perceived Deservingness of Regions

Journal of Social Policy

Many policies target the economic and social consequences of regional inequality. This study expe... more Many policies target the economic and social consequences of regional inequality. This study experimentally investigates factors explaining the public degree of consent to financial transfers to disadvantaged regions. The main hypothesis of this study is that most people use the deservingness-heuristic not only to judge individuals but also to judge regions. We argue that people advocate interregional transfers based on perceived deservingness determined by recipient region’s need, lack of responsibility for the need, likelihood of reciprocity, and by a shared identity. To support this hypothesis, we conducted a factorial survey in Germany asking respondents to rate transfers to needy regions under different hypothetical conditions. We demonstrate, as predicted by the deservingness hypothesis, that consent to transfers to other regions is positively influenced by the extent of need and, in particular, past effort of the recipient region as well as by a shared identity. The results s...

Research paper thumbnail of Breaking the norms: When is evading inheritance taxes socially acceptable?

European Journal of Political Economy, 2017

Using the example of inheritance tax, we examine the relationship between the structure of the ta... more Using the example of inheritance tax, we examine the relationship between the structure of the tax and the strength of the social tax compliance norm. Based on the assumption that deviation from a legal norm is the more accepted the less its underlying principles are jeopardized, we argue that violating the tax compliance norm is socially justifiable if revenue requirements as well as equity and efficiency tax principles are not infringed upon by the evasion. Building on the literature on tax evasion, optimal inheritance taxation, and family economics, we hypothesize that a large non-declared amount of transfer and a high liquidity of the transferred asset decrease the acceptability of inheritance tax evasion and that both a high degree of kinship and young age of the heir increase the acceptance of evasion. Utilizing an experimental design embedded in a survey on the acceptance of inheritance tax evasion conducted in Germany in 2012, we confirm these hypotheses empirically.

Research paper thumbnail of Rational choice of itemized deductions

This paper analyzes the effect of standard deductions on itemized deductions. Using German income... more This paper analyzes the effect of standard deductions on itemized deductions. Using German income tax data, it shows that the distribution of itemized deductions above the level of the standard deduction is positively skewed, with the mode lying somewhat above the standard deduction. This pattern of claimed tax allowable expenses could be easily explained by the rational minimization of tax payments in excess of the costs of reporting these deductions. An alternative explanation, namely tax aversion, is unable to replicate this pattern, as tax aversion would predict bunching of taxpayers directly above the lump-sum deduction.

Research paper thumbnail of Collusive tax evasion and social norms

International Tax and Public Finance, 2016

Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch ge... more Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in EconStor may be saved and copied for your personal and scholarly purposes. You are not to copy documents for public or commercial purposes, to exhibit the documents publicly, to make them publicly available on the internet, or to distribute or otherwise use the documents in public. If the documents have been made available under an Open Content Licence (especially Creative Commons Licences), you may exercise further usage rights as specified in the indicated licence.

Research paper thumbnail of The Influence of State Politics on Solar Energy Auction Results

Energy Policy, 2022

In this paper, we analyze the impact of policy-induced opportunity costs and restrictions on the ... more In this paper, we analyze the impact of policy-induced opportunity costs and restrictions on the outcomes of auctions to subsidize ground-mounted photovoltaic (PV) systems in Germany since 2015. First, we examine the incidence of opportunity cost reductions for some suppliers in a simple theoretical auction model. Second, we descriptively study the volumes and prices in PV auctions in Germany. Finally, we analyze a quasi-experiment: the opening of auctions for farmland in disadvantaged areas in some German states from 2017. We show that policy-induced opportunity cost reductions lead to greater success in PV auctions only in the state of Bavaria, which has more generous quantity restrictions and is generally expected to be more supportive of solar power suppliers after 2017. As a result, there is an interregional redistribution in favor of a single state that enables and administratively effectively implements support for disadvantaged areas.

Research paper thumbnail of Fair inheritance taxation in the presence of tax planning

Journal of Behavioral and Experimental Economics, 2014

Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch ge... more Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in EconStor may be saved and copied for your personal and scholarly purposes. You are not to copy documents for public or commercial purposes, to exhibit the documents publicly, to make them publicly available on the internet, or to distribute or otherwise use the documents in public. If the documents have been made available under an Open Content Licence (especially Creative Commons Licences), you may exercise further usage rights as specified in the indicated licence.

Research paper thumbnail of How Short-term Rentals are Changing the Neighborhood

International Regional Science Review, 2022

This paper examines how short-term rentals are changing living conditions and the composition of ... more This paper examines how short-term rentals are changing living conditions and the composition of the population in affected parts of a town. First, to analyze the relation between quality, distance, and rents, we develop a spatial monocentric city model with varying housing quality levels. Second, for 200 m grids in the city of Berlin (Germany) in 2019, we show that the proportion of low and medium quality residential units correlates positively near the city center with the probability of Airbnb listings and the number of these listings, but negatively in the suburbs. Third, applying fixed effect and IV strategies, we investigate the impact of Airbnb listings on living conditions and the composition of the population in the almost 450 planning areas of Berlin in the years 2016–2019. We show that Airbnb offers increase the number of residents with long periods of residence and reduce the number of residents in low-quality residential environments, but we do not find above-average effects on socially weak groups.

Research paper thumbnail of Multinational Capital Structure and Tax Competition

FEN: Differences in Taxation & Corporate Finance (Topic), 2009

This paper analyzes tax competition when welfare maximizing jurisdictions levy source-based corpo... more This paper analyzes tax competition when welfare maximizing jurisdictions levy source-based corporate taxes and multinational enterprises choose tax-efficient capital-to-debt ratios. Under separate accounting, multinationals shift debt from low-tax to high-tax countries. The Nash equilibrium of the tax competition game is characterized by underprovision of publicly provided goods. Under formula apportionment, the country-specific capital-to-debt ratio of a multinational’s affiliate is independent of the jurisdiction’s tax rate. Public good provision is either too large or too small. If the debt externality is not negative, there is clearly underprovision under formula apportionment.

Research paper thumbnail of Continuous Logit Polycentric City Model

This paper analyzes a closed, essentially linear polycentric city with homogenous households who ... more This paper analyzes a closed, essentially linear polycentric city with homogenous households who probabilistically select their workplace and residence locations. The study utilizes a continuous logit model to describe household location choices. In contrast to the classic urban model with deterministic location choices, the continuous logit model predicts noticeable direct effects of more than one workplace on land rents, asymmetry of the land rent schedule around secondary business districts, incomplete segregation of citizens who work in different business centers and, therefore, cross commuting, and incomplete segregation of workers and farmers.

Research paper thumbnail of Mobility and Reliefs for Traveling Expenses to Work by

This paper proposes the question whether or not traveling expenses to work should be deductible f... more This paper proposes the question whether or not traveling expenses to work should be deductible from the income tax base. In order to answer this question, a simple model of (im-) perfect household and worker mobility is employed. The focus of the analysis is on the efficient use of land and the efficient allocation of people and labor in a multi-region framework. The paper shows that deductibility is inefficient only if households are per-fectly mobile and if households cannot choose their place of work. If the region of work is not exogenously fixed, traveling expenses to work should be deductible at more than one hundred percent, even if households choose simultaneously the place of work and the region of residence, and even if tax rates are not standardized within the federation.

Research paper thumbnail of Lending by credit cooperatives, savings banks and other banks during the Covid-19 pandemic in Germany

Zeitschrift für das gesamte Genossenschaftswesen

We examine long-term lending in the course of the Covid-19 pandemic in Germany. We show that the ... more We examine long-term lending in the course of the Covid-19 pandemic in Germany. We show that the pandemic is associated with increased lending by credit cooperatives and savings banks. The restrictions imposed by governments on social and economic life and the economic impact thereof, measured in terms of planned short-time work, show a significant correlation with the level of lending by all banks.

Research paper thumbnail of Voting on urban land development

Journal of Regional Science

In this paper, we analyze several local referendums on land development and land-use regulation i... more In this paper, we analyze several local referendums on land development and land-use regulation in the City of Erlangen (Germany) between 2011 and 2018. To identify the positive influence of the travel distance on approval for land development, we control for distance to the city center and density, employ a two-way fixed-effect model, and use spatial instruments. We also analyze the heterogeneity of city dwellers' preferences for the development of residential and commercial areas. In particular, we examine the differences between homeowners and tenants in this regard.

Research paper thumbnail of Schützt finanzielle Bildung vor der Unsicherheitsfalle?

Vierteljahrshefte zur Wirtschaftsforschung

Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch ge... more Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in EconStor may be saved and copied for your personal and scholarly purposes. You are not to copy documents for public or commercial purposes, to exhibit the documents publicly, to make them publicly available on the internet, or to distribute or otherwise use the documents in public. If the documents have been made available under an Open Content Licence (especially Creative Commons Licences), you may exercise further usage rights as specified in the indicated licence.

Research paper thumbnail of Attraktivität hat ihren Preis: hohe reale Wohnkosten, weites Pendeln oder lange Warteschlangen

Zeitschrift für Immobilienökonomie

Zusammenfassung Höhere Mieten bzw. Immobilienpreise und/oder niedrige Löhne werden auf funktionie... more Zusammenfassung Höhere Mieten bzw. Immobilienpreise und/oder niedrige Löhne werden auf funktionierenden Märkten die höhere natürliche Standortattraktivität einer Region bzw. ein attraktiveres Angebot öffentlicher Güter ausgleichen, wenn die Menschen Wohn- und Arbeitsort frei wählen können. Wenn Lohn- und Mietenunterschiede zwischen lokalen Wohnungs- und Arbeitsmärkten durch staatliche Preisregulierung verhindert bzw. reduziert werden, dann führt das in einigen Regionen zu Nachfrage- und in anderen Regionen zu Angebotsüberschüssen. Wanderungsbewegungen, die Versorgungsengpässe verstärken können, werden ausgelöst. Auf Märkten mit Friktionen allerdings haben neben Preisen auch Mengen eine kompensatorische Funktion. Längere Suchzeiten auf lokalen Wohnungs- und Arbeitsmärkten wirken ebenfalls den Anziehungskräften attraktiver Standorte entgegen. Dieser Aufsatz stellt die grundlegenden Mechanismen dar und erläutert diese anhand stilisierter Fakten.

Research paper thumbnail of Spatial and social mobility

Journal of Regional Science

Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch ge... more Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in EconStor may be saved and copied for your personal and scholarly purposes. You are not to copy documents for public or commercial purposes, to exhibit the documents publicly, to make them publicly available on the internet, or to distribute or otherwise use the documents in public. If the documents have been made available under an Open Content Licence (especially Creative Commons Licences), you may exercise further usage rights as specified in the indicated licence.