Universität zu Köln

Wysietzki, Marco (2024). Essays on Public Economics. PhD thesis, Universität zu Köln.

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Abstract

This dissertation comprises three chapters on various topics related to taxation. Chapter one explores financial crises and their relationship to belief heterogeneity. A model with a collateral constraint dependent on an asset’s price is developed. Agents differ in their beliefs about the asset’s future payoff. It is shown that the probability and the extent of financial distress increase with the heterogeneity of agents' beliefs. Furthermore, this framework allows for the measurement of type-dependent contributions to financial distress and the calculation of optimal corrective taxation. Chapter two examines Prussian income tax reforms and the evolution towards modern comprehensive income taxation. In the early nineteenth century, Prussia introduced a tax based on social classes. From a modern tax theory perspective, this tax can achieve distributive objectives without sacrificing first-best efficiency. However, Prussia gradually abolished class-based taxation through a series of reforms. Using a Mirrleesian income tax model, it is shown that these reforms increased potential tax revenue in a politically feasible way. Historical data confirm the theoretical results. Chapter three addresses the issue of fiscal decentralization. The literature provides evidence that a decentralized system decreases justification of evading taxes. This so-called tax morale is correlated with actual tax evasion and therefore a variable of interest. Other studies suggest that national identity also impacts tax morale. An empirical cross-country analysis reveals a positive effect of decentralization and local, regional, and national identity on tax morale. A calibrated model suggests that a decentralized system is preferable for Germany.

Item Type:	Thesis (PhD thesis)
Creators:	Creators Email ORCID ORCID Put Code Wysietzki, Marco marco.wysietzki@gmx.de UNSPECIFIED UNSPECIFIED
URN:	urn:nbn:de:hbz:38-727786
Date:	2024
Language:	English
Faculty:	Faculty of Management, Economy and Social Sciences
Divisions:	Exzellenzcluster ECONtribute
Subjects:	Economics
Uncontrolled Keywords:	Keywords Language Public Finance UNSPECIFIED Financial Crises UNSPECIFIED Corrective Taxation UNSPECIFIED Prussia UNSPECIFIED Decentralization UNSPECIFIED
Date of oral exam:	17 May 2024
Referee:	Name Academic Title Bierbrauer, Felix Prof. Schabert, Andreas Prof.
Refereed:	Yes
URI:	http://kups.ub.uni-koeln.de/id/eprint/72778