Framework contract with the Federal Ministry for Economic Affairs (BMWi)

Economic assessment of different options to reform the German tax and transfer system

Client: Federal Ministry for Economic Affairs and Energy (BMWi)

Project partners: ZEW Mannheim; Prognos AG, Basel/Berlin

Duration: 01.06.2017 – 31.05.2019

In order to predict the economic, fiscal and socio-political consequences of reform proposals concerning taxes, contributions, and benefits, the Federal Ministry of Economic Affairs and Energy (BMWi) urgently needs scientifically sound simulations. To this end, the ministry has signed a research framework agreement on a series of short studies that analyze possible revenue and distribution effects of changes in the German tax and transfer system. The studies use microsimulation models, which are based on representative household data and show reform-induced behavioral changes in labor supply.