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| Author: | Richter, H. Rose, M. |
| Title: | Steuerfinanzierung eines Solidarprogramms Ost. Verteilungsmaessige und Oekonomische Konsequenzen = Tax-based financing of the East Germany solidarity program. Distribution of income and the economy. |
| Journal: | Wirtschaftsdienst
1993 : JAN, VOL. 73:1, p. 22-30 |
| Index terms: | ECONOMIC RECOVERY ECONOMIC GROWTH GERMANY ECONOMIC POLICY TAXATION FINANCING |
| Language: | ger |
| Abstract: | The most important characteristics of the new solidarity program accepted by the Federal Convention for 1993 as a part of the Federal budget are described and analyzed. An empirical model for the economy of FRG is developed and used in simulations of the effects of tax changes on different economic indicators. It is shown how the tax-based financing of the solidarity program will affect the people's welfare (measured at household level) in the short term and in the long run through changes in the distribution of income. A number of other economic effects are identified (growth rate of national product, capital stock, investments etc.). Some alternatives to increasing taxes are considered. |
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