Empirical macromodels under test: a comparative simulation study of the employment effects of a revenue neutral cut in social security contributions

Herbert S. Buscher, Hermann Buslei, Klaus Göggelmann, Henrike Koschel, Fred Ramb, Tobias F. N. Schmidt, Viktor Steiner and Peter Winker

No 98-40, ZEW Discussion Papers from ZEW - Leibniz Centre for European Economic Research

Abstract: In the paper we simulate a revenue-neutral cut in the social security contribution rate using five different types of macro- / microeconomic models, namely two models based on time-series data where the labour market is modelled basically demand oriented, two models of the class of computable equilibrium models which are supply oriented and finally a firm specific model for international tax burden comparisons. Our primary interest is in the employment effects the models predict due to the cut in the contribution rate. It turns out that qualitatively all models considered predict an increase in employment three years after the cut. But the employment effects differ considerably in magnitude, which follows immediately from the different behavioral assumptions underlying the different models.

JEL-codes: C50 C53 E17 H55 (search for similar items in EconPapers)
Date: 1998
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/24283/1/dp4098.pdf (application/pdf)

Related works:
Journal Article: Empirical macro models under test. A comparative simulation study of the employment effects of a revenue neutral cut in social security contributions (2001)
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:zbw:zewdip:5211

Access Statistics for this paper

More papers in ZEW Discussion Papers from ZEW - Leibniz Centre for European Economic Research Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().