The Role of Fiscal Policy Measures in Mitigating the Effects of the Covid-19 Crisis in Germany

Michael Christl, Silvia De Poli, Tine Hufkens, Andreas Peichl and Mattia Ricci

EconPol Forum, 2023, vol. 24, issue 05, 36-40

Abstract: We use a novel methodology for modeling the socio-economic impacts of economic crisis in Germany, and apply it to estimate the impact of the Covid-19 pandemic We estimate that German households lost more than 3 percent of their market income in 2020 due to the Covid-19 pandemic, with the effect being strongly regressive However, the fall in market income was largely offset by the tax-benefit system, which softened the reduction in disposable income to a more modest 0.5 percent Our study highlights the importance of shorttime work and discretionary policy measures (the Covid-19 one-off child benefit and the increase in the tax allowance for single parents) in cushioning the impact of the Covid-19 crisis The strong income-stabilizing property of shorttime work and discretionary policy measures for low-income earners has also helped overcome a strong reduction in household demand

Date: 2023
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.cesifo.org/DocDL/econpol-forum-2023-5- ... -policy-measures.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ces:epofor:v:24:y:2023:i:05:p:36-40

Access Statistics for this article

EconPol Forum is currently edited by Chang Woon Nam

More articles in EconPol Forum from CESifo Contact information at EDIRC.
Bibliographic data for series maintained by Klaus Wohlrabe ().