The Reform of Local Public Services of General Interest in Europe
Peter Haug, Martin T. W. Rosenfeld
Applied Economics Quarterly (Supplement),
2004
Abstract
The benefits of a reduced supply of local public services may more than outweigh the supposed welfare losses. This was suggested by various theoretical and empirical investigations in many fields of economics during the last decades. Nevertheless, local and national politicians, trade unionists, charities, and other lobbyists have succeeded in preventing further liberalisation of “services of general interest” in Europe. This article examines why these preserve agents have been and are still successful. The analysis is based on an institutional economic approach. Several policy measures and institutional changes are suggested to either reduce influence of preserve agents or to compensate them for their losses.
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Local Taxes and Capital Structure Choice
Reint E. Gropp
International Tax and Public Finance,
No. 1,
2002
Abstract
This paper investigates the question of taxation and capital structure choice in Germany. Germany represents an excellent case study for investigating the question of whether and to what extent taxes influence the debt-equity decision of firms, because the relative tax burdens on debt and equity vary greatly across communities. German communities levy local taxes on profits and long-term debt payments in addition to personal and corporate taxes on the federal level. A stylized model is presented incorporating these taxes. The model shows that local taxes create substantial incentives for firms to use debt financing. Furthermore, the paper empirically investigates the effect of local business taxes on the share of debt used to finance incremental investments by German firms. I find that local taxes significantly influence the capital structure choice of firms, controlling for a large number of other factors. In an extensive sensitivity analysis the tax effect are found to be robust across several different specifications.
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Reform of joint tasks: How far can the federal and state governments disengage? A contribution to the discussion about the new establishment of the German system of public finance
Martin T. W. Rosenfeld
IWH Discussion Papers,
No. 91,
1999
Abstract
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Components of a municipal finance reform: Trade tax and public assistance – Expert report for the Bundestag group Bündnis 90 / Die Grünen
Thomas Notheis, Martin Junkernheinrich
IWH-Sonderhefte,
No. 1,
1996
Abstract
Die Reform des Gemeindesteuersystems steht bereits seit Jahren auf der politischen Tagesordnung. Mittlerweile haben sich die kontroversen Positionen zwischen Bundesgesetzgeber, Wirtschaft und Kommunen deutlich angenähert. Die weit fortgeschrittene Aushöhlung der Gewerbesteuer und die zunehmende Delegation von ausgabenintensiven Aufgaben auf die lokale Ebene haben die Verhandlungsposition der Städte und Gemeinden geschwächt. Für viele Kämmerer dominiert das fiskalische Deckungsziel, so daß man auch Reformmodelle zu akzeptieren bereit ist, die man lange und mit Gründen abgelehnt hat.
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