Arbeitspapier

Taxation and consumption: Evidence from a representative survey of the German population

Using a representative survey of the German population, this paper studies individual consumption responses to a recent payroll tax reduction. Our results show that 55% of the respondents spend the extra money, indicating considerable potential for tax changes to affect consumption and economic activity. Our analysis of the socio-demographic and economic determinants of consumption responses suggests that temporary and permanent tax changes have a similar impact, that interest rates are an important determinant of consumption responses to tax changes, and that households with higher income have a higher propensity to consume.

Sprache
Englisch

Erschienen in
Series: MAGKS Joint Discussion Paper Series in Economics ; No. 20-2014

Klassifikation
Wirtschaft
Macroeconomics: Consumption; Saving; Wealth
Fiscal Policy
Fiscal Policies and Behavior of Economic Agents: General
Thema
Taxation
Consumption
Representative population survey
Germany

Ereignis
Geistige Schöpfung
(wer)
Hayo, Bernd
Uhl, Matthias
Ereignis
Veröffentlichung
(wer)
Philipps-University Marburg, Faculty of Business Administration and Economics
(wo)
Marburg
(wann)
2014

Handle
Letzte Aktualisierung
10.03.2025, 11:42 MEZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Hayo, Bernd
  • Uhl, Matthias
  • Philipps-University Marburg, Faculty of Business Administration and Economics

Entstanden

  • 2014

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