Structural reform in Germany /

Structural reform in Germany /

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Bibliographic Details
Author / Creator:Krebs, Tom, author.
Imprint:[Washington, D.C.] : International Monetary Fund, [2016]
©2016
Description:1 online resource (59 pages) : color illustrations.
Language:English
Series:IMF working paper, 1018-5941 ; WP/16/96
IMF working paper ; WP/16/96.
Subject:
Structural adjustment (Economic policy) -- Germany -- Econometric models.
Fiscal policy -- Germany -- Econometric models.
Fiscal policy -- Econometric models.
Structural adjustment (Economic policy) -- Econometric models.
Germany.
Format: E-Resource Book
URL for this record:http://pi.lib.uchicago.edu/1001/cat/bib/12505091
Hidden Bibliographic Details
Other authors / contributors:Scheffel, Martin, author.
International Monetary Fund. Research Department, publisher.
ISBN:1484339681
9781484339688
ISSN:1018-5941
Notes:"April 2016."
At head of title: "Research Department."
Includes bibliographical references (pages 39-42).
Online resource; title from pdf title page (IMF.org Web site, viewed May 23, 2016).
Summary:This paper provides a quantitative evaluation of the macroeconomic, distributional, and fiscal effects of three reform proposals for Germany: i) a reduction in the social security tax in the low-wage sector, ii) a publicly financed expansion of full-day child care and full-day schooling, and iii) the further deregulation of the professional services sector. The analysis is based on a macroeconomic model with physical capital, human capital, job search, and household heterogeneity. All three reforms have positive short-run and long-run effects on employment, wages, and output. The quantitative effects of the deregulation reform are relatively small due to the small size of professional services in Germany. Policy reforms i) and ii) have substantial macroeconomic effects and positive distributional consequences. Ten years after implementation, reforms i) and ii) taken together increase employment by 1.6 percent, potential output by 1.5 percent, real hourly pre-tax wages in the low-wage sector by 3 percent, and real hourly pre-tax wages of women with children by 2.7 percent. The two reforms create fiscal deficits in the short run, but they also generate substantial fiscal surpluses in the long-run. They are fiscally efficient in the sense that the present value of short-term fiscal deficits and long-term surpluses is positive for any interest (discount) rate less than 9 percent--Abstract.
Standard no.:10.5089/9781484339688.001
Table of Contents:
  • Cover; Contents; 1. Introduction; 2. Model; 2.1 Goods Production; 2.2 Households; 2.3 Equilibrium; 2.4 Characterization of Household Problem; 2.5 Equilibrium Characterization; 3. Calibrating the Model; 3.1 Search Technology and Transition Rates Across Employment States; 3.2 Search Preferences; 3.3 Wage Risk; 3.4 Government Policy Parameters; 3.5 Production Technology; 3.6 Implied Wage Differentials; 4. Reform of Social Security Taxes for Low-Wage Jobs; 4.1 Current Situation; 4.2 Reform Description; 4.3 Results; 5. Public Expansion of Full-Day School Programs; 5.1 Current Situation.
  • 5.2 Reform Description5.3 Results; 6. Deregulation of the Professional Services; 6.1 Current Situation; 6.2 Reform Description; 6.3 Results; 7. A Reform Package; References; Tables; 1. Reform of Social Security Taxes for Low-Wage Jobs; 2. Social Security Taxes Reform; 3. Public Full-Day School Program; 4. Deregulation of Professional Services; 5. Reform Package (Social Security Tax and Public Full-Day School Program); Figures; 1. Social Security Tax Reform; 2. Unemployment Rate (Social Security Tax Reform); 3. Employment: Full Time Equivalent Jobs (Social Security Tax Reform).
  • 4. Hourly Pre-Tax Wage (Social Security Tax Reform)5. Output (Social Security Tax Reform); 6. Fiscal Effects (Social Security Tax Reform); 7. Unemployment Rate (Public Full-Day School Program); 8. Employment: Full-Time Equivalent Jobs (Public Full-Day School Program); 9. Hourly Pre-Tax Wage (Public Full-Day School Program); 10. Output (Public Full-Day School Program); 11. Fiscal Effects (Public Full-Day School Program; 12. Unemployment Rate (Deregulation of Professional Services); 13. Employment: Full-Time Equivalent Jobs (Deregulation of Professional Services).
  • 14. Hourly Pre-Tax Wage (Deregulation of Professional Services15. Output (Deregulation of Professional Services; 16. Fiscal Effects (Deregulation of Professional Services).

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