{"id":51071,"date":"2023-12-01T17:33:08","date_gmt":"2023-12-01T16:33:08","guid":{"rendered":"https:\/\/www.wifo.ac.at\/publication\/abolishing-the-wealth-tax-a-case-study-for-germany\/"},"modified":"2024-11-07T05:49:14","modified_gmt":"2024-11-07T04:49:14","slug":"abolishing-the-wealth-tax-a-case-study-for-germany","status":"publish","type":"publication","link":"https:\/\/www.wifo.ac.at\/en\/publication\/51071\/","title":{"rendered":"Abolishing the Wealth Tax. A Case Study for Germany"},"content":{"rendered":"","protected":false},"featured_media":0,"template":"","class_list":["post-51071","publication","type-publication","status-publish","hentry"],"acf":{"subtitle":"","text":"Since the 1990ies several countries abolished the wealth tax, but surprisingly few scholars investigated the effects empirically. Motivated by the theoretical literature, this study estimates the effect of the abolition of the net wealth tax in Germany in 1997 on the household saving rate. The use of the Synthetic Control Method allows using variables on aggregate level instead of microeconometric panel data, to estimate the effect of abolishing the net wealth tax. As a result, the analysis shows that the abolition of the net wealth tax had a clear positive effect on the German household saving rate. After three years, the saving rate was found to be about 3 percentage points higher than it would have been without the measure. Robustness checks support the results. These findings suggest that empirically the substitution effect dominated.","onlinedate":"2017-12-05 12:00:00","lang":"English","publication_series":"","publication_date":"20171201","publication_date_year":"","publication_date_full":false,"publication_num_pages":"37","keywords":"[\"Abolition of Wealth Tax\",\"Germany\",\"Synthetic Control Method\",\"Wealth Tax\"]","jelcodes":"[\"E21\",\"H20\",\"H31\"]","related_publications":"[]","pdf":370147,"zip":null,"link":"","monthly_report":true,"monthly_report_main":false,"monthly_report_volume":"","monthly_report_pages":"","monthly_report_pages_sort":"0","issue":"545","journal":"WIFO Working Papers","publisher":"","invisible":false,"external":false,"embargo_date":"2017-12-05 12:00:00","types":[44410],"research_groups":[3500],"collaboration":"","persons":[4701],"persons_data":"[{\"personId\":4701,\"personName\":\"Alena Bachleitner\",\"organisationNames\":[]}]","clients":[],"subclients":[],"partners":[],"topics":[],"host_publication_title":"","host_publication_subtitle":"","place_of_publication":"","host_publication_editors":"[]","type_description":"","output_media":"","chapter":"","article_number":"","citations":"{\"apa\":\"<div class=\\\"rendering rendering_researchoutput  rendering_researchoutput_apa rendering_contributiontoperiodical rendering_apa rendering_contributiontoperiodical_apa\\\"><span>Bachleitner, A.<\\\/span> (2017). <span>Abolishing the Wealth Tax. A Case Study for Germany<\\\/span>. <span><em>WIFO Working Papers<\\\/em><\\\/span>, (545). <a onclick=\\\"window.open(this.href, '_blank','noopener,noreferrer'); return false;\\\" href=\\\"https:\\\/\\\/www.wifo.ac.at\\\/wwa\\\/pubid\\\/60796\\\" class=\\\"link\\\"><span>https:\\\/\\\/www.wifo.ac.at\\\/wwa\\\/pubid\\\/60796<\\\/span><\\\/a><\\\/div>\",\"vancouver\":\"<div class=\\\"rendering rendering_researchoutput  rendering_researchoutput_vancouver rendering_contributiontoperiodical rendering_vancouver rendering_contributiontoperiodical_vancouver\\\"><span>Bachleitner A<\\\/span>. <span class=\\\"title\\\"><span>Abolishing the Wealth Tax. A Case Study for Germany<\\\/span><\\\/span>. <span>WIFO Working Papers<\\\/span>. 2017 Dec;(545).<\\\/div>\",\"bibtex\":\"<div class=\\\"rendering rendering_researchoutput  rendering_researchoutput_bibtex rendering_contributiontoperiodical rendering_bibtex rendering_contributiontoperiodical_bibtex\\\"><div>@misc{3235772968c84469b6c85e8ece605838,<\\\/div><div>  title    = \\\"Abolishing the Wealth Tax. A Case Study for Germany\\\",<\\\/div><div>  abstract = \\\"Since the 1990ies several countries abolished the wealth tax, but surprisingly few scholars investigated the effects empirically. Motivated by the theoretical literature, this study estimates the effect of the abolition of the net wealth tax in Germany in 1997 on the household saving rate. The use of the Synthetic Control Method allows using variables on aggregate level instead of microeconometric panel data, to estimate the effect of abolishing the net wealth tax. As a result, the analysis shows that the abolition of the net wealth tax had a clear positive effect on the German household saving rate. After three years, the saving rate was found to be about 3 percentage points higher than it would have been without the measure. Robustness checks support the results. These findings suggest that empirically the substitution effect dominated.\\\",<\\\/div><div>  keywords = \\\"Abolition of Wealth Tax, Germany, Synthetic Control Method, Wealth Tax, Abolition of Wealth Tax, Germany, Synthetic Control Method, Wealth Tax\\\",<\\\/div><div>  author   = \\\"Alena Bachleitner\\\",<\\\/div><div>  note     = \\\"Abolishing the Wealth Tax\\\",<\\\/div><div>  year     = \\\"2017\\\",<\\\/div><div>  month    = dec,<\\\/div><div>  language = \\\"English\\\",<\\\/div><div>  journal  = \\\"WIFO Working Papers\\\",<\\\/div><p>}<\\\/p><\\\/div>\",\"ris\":\"<div class=\\\"rendering rendering_researchoutput  rendering_researchoutput_ris rendering_contributiontoperiodical rendering_ris rendering_contributiontoperiodical_ris\\\"><p>TY  - GEN<\\\/p><p>T1  - Abolishing the Wealth Tax. A Case Study for Germany<\\\/p><p>AU  - Bachleitner, Alena<\\\/p><p>N1  - Abolishing the Wealth Tax<\\\/p><p>PY  - 2017\\\/12<\\\/p><p>Y1  - 2017\\\/12<\\\/p><p>N2  - Since the 1990ies several countries abolished the wealth tax, but surprisingly few scholars investigated the effects empirically. Motivated by the theoretical literature, this study estimates the effect of the abolition of the net wealth tax in Germany in 1997 on the household saving rate. The use of the Synthetic Control Method allows using variables on aggregate level instead of microeconometric panel data, to estimate the effect of abolishing the net wealth tax. As a result, the analysis shows that the abolition of the net wealth tax had a clear positive effect on the German household saving rate. After three years, the saving rate was found to be about 3 percentage points higher than it would have been without the measure. Robustness checks support the results. These findings suggest that empirically the substitution effect dominated.<\\\/p><p>AB  - Since the 1990ies several countries abolished the wealth tax, but surprisingly few scholars investigated the effects empirically. Motivated by the theoretical literature, this study estimates the effect of the abolition of the net wealth tax in Germany in 1997 on the household saving rate. The use of the Synthetic Control Method allows using variables on aggregate level instead of microeconometric panel data, to estimate the effect of abolishing the net wealth tax. As a result, the analysis shows that the abolition of the net wealth tax had a clear positive effect on the German household saving rate. After three years, the saving rate was found to be about 3 percentage points higher than it would have been without the measure. Robustness checks support the results. These findings suggest that empirically the substitution effect dominated.<\\\/p><p>KW  - Abolition of Wealth Tax<\\\/p><p>KW  - Germany<\\\/p><p>KW  - Synthetic Control Method<\\\/p><p>KW  - Wealth Tax<\\\/p><p>KW  - Abolition of Wealth Tax<\\\/p><p>KW  - Germany<\\\/p><p>KW  - Synthetic Control Method<\\\/p><p>KW  - Wealth Tax<\\\/p><p>M3  - WIFO series<\\\/p><p>JO  - WIFO Working Papers<\\\/p><p>JF  - WIFO Working Papers<\\\/p><p>ER  - <\\\/p><\\\/div>\"}","scientific_assistance":"[]","scientific_review":"[]","version":"","release_date":null,"expiration_date":null,"surveyor":"","research_assistance":"","edv":"","additional_info_de":"","additional_info_en":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.0 (Yoast SEO v28.0) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Abolishing the Wealth Tax. A Case Study for Germany - WIFO<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.wifo.ac.at\/en\/publication\/51071\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Abolishing the Wealth Tax. A Case Study for Germany\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.wifo.ac.at\/en\/publication\/51071\/\" \/>\n<meta property=\"og:site_name\" content=\"WIFO\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/WIFOat\/\" \/>\n<meta property=\"article:modified_time\" content=\"2024-11-07T04:49:14+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.wifo.ac.at\/wp-content\/uploads\/2024\/05\/WIFO-Gebaeude-FotoAlexanderMueller-www.alexandermueller.at-IMG_6326-Bearbeitet-1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1920\" \/>\n\t<meta property=\"og:image:height\" content=\"1280\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:site\" content=\"@WIFOat\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.wifo.ac.at\\\/en\\\/publication\\\/51071\\\/\",\"url\":\"https:\\\/\\\/www.wifo.ac.at\\\/en\\\/publication\\\/51071\\\/\",\"name\":\"Abolishing the Wealth Tax. A Case Study for Germany - WIFO\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.wifo.ac.at\\\/en\\\/#website\"},\"datePublished\":\"2023-12-01T16:33:08+00:00\",\"dateModified\":\"2024-11-07T04:49:14+00:00\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/www.wifo.ac.at\\\/en\\\/publication\\\/51071\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/www.wifo.ac.at\\\/en\\\/publication\\\/51071\\\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/www.wifo.ac.at\\\/en\\\/publication\\\/51071\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Startseite\",\"item\":\"https:\\\/\\\/www.wifo.ac.at\\\/en\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Abolishing the Wealth Tax. A Case Study for Germany\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/www.wifo.ac.at\\\/en\\\/#website\",\"url\":\"https:\\\/\\\/www.wifo.ac.at\\\/en\\\/\",\"name\":\"\u00d6sterreichisches Institut f\u00fcr Wirtschaftsforschung\",\"description\":\"\",\"publisher\":{\"@id\":\"https:\\\/\\\/www.wifo.ac.at\\\/en\\\/#organization\"},\"alternateName\":\"WIFO\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/www.wifo.ac.at\\\/en\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\\\/\\\/www.wifo.ac.at\\\/en\\\/#organization\",\"name\":\"\u00d6sterreichisches Institut f\u00fcr Wirtschaftsforschung\",\"alternateName\":\"WIFO\",\"url\":\"https:\\\/\\\/www.wifo.ac.at\\\/en\\\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/www.wifo.ac.at\\\/en\\\/#\\\/schema\\\/logo\\\/image\\\/\",\"url\":\"https:\\\/\\\/www.wifo.ac.at\\\/wp-content\\\/uploads\\\/2024\\\/05\\\/WIFO_kurz_rechts-2-1920x412.jpg\",\"contentUrl\":\"https:\\\/\\\/www.wifo.ac.at\\\/wp-content\\\/uploads\\\/2024\\\/05\\\/WIFO_kurz_rechts-2-1920x412.jpg\",\"width\":2000,\"height\":429,\"caption\":\"\u00d6sterreichisches Institut f\u00fcr Wirtschaftsforschung\"},\"image\":{\"@id\":\"https:\\\/\\\/www.wifo.ac.at\\\/en\\\/#\\\/schema\\\/logo\\\/image\\\/\"},\"sameAs\":[\"https:\\\/\\\/www.facebook.com\\\/WIFOat\\\/\",\"https:\\\/\\\/x.com\\\/WIFOat\",\"https:\\\/\\\/linkedin.com\\\/company\\\/wifoat\\\/\",\"https:\\\/\\\/www.youtube.com\\\/@WIFO_at\"],\"description\":\"Das WIFO, 1927 von Friedrich August von Hayek und Ludwig von Mises zur Konjunkturanalyse gegr\u00fcndet, ist heute das f\u00fchrende Institut f\u00fcr angewandte empirische Wirtschaftsforschung in \u00d6sterreich mit starkem Engagement auf europ\u00e4ischer Ebene.\",\"email\":\"office@wifo.ac.at\",\"telephone\":\"+43 1 798 26 01 \u2013 0\",\"legalName\":\"\u00d6sterreichisches Institut f\u00fcr Wirtschaftsforschung\",\"foundingDate\":\"1927-01-02\",\"numberOfEmployees\":{\"@type\":\"QuantitativeValue\",\"minValue\":\"51\",\"maxValue\":\"200\"},\"publishingPrinciples\":\"https:\\\/\\\/www.wifo.ac.at\\\/institut\\\/mission-und-strategie\\\/\",\"ownershipFundingInfo\":\"https:\\\/\\\/www.wifo.ac.at\\\/institut\\\/organisation\\\/\",\"actionableFeedbackPolicy\":\"https:\\\/\\\/www.wifo.ac.at\\\/aktuelles\\\/presse\\\/\",\"correctionsPolicy\":\"https:\\\/\\\/www.wifo.ac.at\\\/institut\\\/kontakt\\\/\",\"ethicsPolicy\":\"https:\\\/\\\/www.wifo.ac.at\\\/institut\\\/evidenzbasierung-transparenz-und-unabhaengigkeit\\\/\",\"diversityPolicy\":\"https:\\\/\\\/www.wifo.ac.at\\\/institut\\\/gleichstellung\\\/\",\"diversityStaffingReport\":\"https:\\\/\\\/www.wifo.ac.at\\\/institut\\\/gleichstellung\\\/\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Abolishing the Wealth Tax. A Case Study for Germany - WIFO","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.wifo.ac.at\/en\/publication\/51071\/","og_locale":"en_US","og_type":"article","og_title":"Abolishing the Wealth Tax. A Case Study for Germany","og_url":"https:\/\/www.wifo.ac.at\/en\/publication\/51071\/","og_site_name":"WIFO","article_publisher":"https:\/\/www.facebook.com\/WIFOat\/","article_modified_time":"2024-11-07T04:49:14+00:00","og_image":[{"width":1920,"height":1280,"url":"https:\/\/www.wifo.ac.at\/wp-content\/uploads\/2024\/05\/WIFO-Gebaeude-FotoAlexanderMueller-www.alexandermueller.at-IMG_6326-Bearbeitet-1.jpg","type":"image\/jpeg"}],"twitter_card":"summary_large_image","twitter_site":"@WIFOat","schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.wifo.ac.at\/en\/publication\/51071\/","url":"https:\/\/www.wifo.ac.at\/en\/publication\/51071\/","name":"Abolishing the Wealth Tax. A Case Study for Germany - WIFO","isPartOf":{"@id":"https:\/\/www.wifo.ac.at\/en\/#website"},"datePublished":"2023-12-01T16:33:08+00:00","dateModified":"2024-11-07T04:49:14+00:00","breadcrumb":{"@id":"https:\/\/www.wifo.ac.at\/en\/publication\/51071\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.wifo.ac.at\/en\/publication\/51071\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/www.wifo.ac.at\/en\/publication\/51071\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Startseite","item":"https:\/\/www.wifo.ac.at\/en\/"},{"@type":"ListItem","position":2,"name":"Abolishing the Wealth Tax. A Case Study for Germany"}]},{"@type":"WebSite","@id":"https:\/\/www.wifo.ac.at\/en\/#website","url":"https:\/\/www.wifo.ac.at\/en\/","name":"\u00d6sterreichisches Institut f\u00fcr Wirtschaftsforschung","description":"","publisher":{"@id":"https:\/\/www.wifo.ac.at\/en\/#organization"},"alternateName":"WIFO","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.wifo.ac.at\/en\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/www.wifo.ac.at\/en\/#organization","name":"\u00d6sterreichisches Institut f\u00fcr Wirtschaftsforschung","alternateName":"WIFO","url":"https:\/\/www.wifo.ac.at\/en\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.wifo.ac.at\/en\/#\/schema\/logo\/image\/","url":"https:\/\/www.wifo.ac.at\/wp-content\/uploads\/2024\/05\/WIFO_kurz_rechts-2-1920x412.jpg","contentUrl":"https:\/\/www.wifo.ac.at\/wp-content\/uploads\/2024\/05\/WIFO_kurz_rechts-2-1920x412.jpg","width":2000,"height":429,"caption":"\u00d6sterreichisches Institut f\u00fcr Wirtschaftsforschung"},"image":{"@id":"https:\/\/www.wifo.ac.at\/en\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/WIFOat\/","https:\/\/x.com\/WIFOat","https:\/\/linkedin.com\/company\/wifoat\/","https:\/\/www.youtube.com\/@WIFO_at"],"description":"Das WIFO, 1927 von Friedrich August von Hayek und Ludwig von Mises zur Konjunkturanalyse gegr\u00fcndet, ist heute das f\u00fchrende Institut f\u00fcr angewandte empirische Wirtschaftsforschung in \u00d6sterreich mit starkem Engagement auf europ\u00e4ischer Ebene.","email":"office@wifo.ac.at","telephone":"+43 1 798 26 01 \u2013 0","legalName":"\u00d6sterreichisches Institut f\u00fcr Wirtschaftsforschung","foundingDate":"1927-01-02","numberOfEmployees":{"@type":"QuantitativeValue","minValue":"51","maxValue":"200"},"publishingPrinciples":"https:\/\/www.wifo.ac.at\/institut\/mission-und-strategie\/","ownershipFundingInfo":"https:\/\/www.wifo.ac.at\/institut\/organisation\/","actionableFeedbackPolicy":"https:\/\/www.wifo.ac.at\/aktuelles\/presse\/","correctionsPolicy":"https:\/\/www.wifo.ac.at\/institut\/kontakt\/","ethicsPolicy":"https:\/\/www.wifo.ac.at\/institut\/evidenzbasierung-transparenz-und-unabhaengigkeit\/","diversityPolicy":"https:\/\/www.wifo.ac.at\/institut\/gleichstellung\/","diversityStaffingReport":"https:\/\/www.wifo.ac.at\/institut\/gleichstellung\/"}]}},"_links":{"self":[{"href":"https:\/\/www.wifo.ac.at\/en\/wp-json\/wp\/v2\/publication\/51071","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.wifo.ac.at\/en\/wp-json\/wp\/v2\/publication"}],"about":[{"href":"https:\/\/www.wifo.ac.at\/en\/wp-json\/wp\/v2\/types\/publication"}],"version-history":[{"count":1,"href":"https:\/\/www.wifo.ac.at\/en\/wp-json\/wp\/v2\/publication\/51071\/revisions"}],"predecessor-version":[{"id":370135,"href":"https:\/\/www.wifo.ac.at\/en\/wp-json\/wp\/v2\/publication\/51071\/revisions\/370135"}],"acf:post":[{"embeddable":true,"href":"https:\/\/www.wifo.ac.at\/en\/wp-json\/wp\/v2\/person\/4701"},{"embeddable":true,"href":"https:\/\/www.wifo.ac.at\/en\/wp-json\/wp\/v2\/research_group\/3500"},{"embeddable":true,"href":"https:\/\/www.wifo.ac.at\/en\/wp-json\/wp\/v2\/publication_type\/44410"}],"wp:attachment":[{"href":"https:\/\/www.wifo.ac.at\/en\/wp-json\/wp\/v2\/media?parent=51071"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}