25 DIW Economic Bulletin 11.2014 Aside from current income, the parameter of net worth represents a key resource in the economic activity of households. In addition, net worth has a specific function going far beyond the sheer fact of earning (for example, in the form of interest and dividends). It contributes significantly to stabilizing consumption in periods of income loss, while tangible as...

We investigate how redistribution of income is affected by the fact that income is privately observed and agents may not be truthful in their reports to the tax authorities. In response, the government establishes an audit mechanism with penalties. Adhering to a signaling equilibrium concept, we prove that agents resort to mixed strategies, which makes it difficult for tax authorities to identi...

The objective of this paper is to empirically analyze the relationship between job flows and regional income stabilization provided by the national tax and transfer systems. The analysis is based on an administrative panel data set containing all sectors in 20 Swedish regions for the time period 1989-2000. Controlling for unobserved regional effects we find that a high net tax-income ratio tend...

Flexibility of process support is a key requirement for current and future business applications. A technology which is designed to flexibly support various kinds of processes are workflow management systems. In this paper we present INCOME/WF a prototype of a workflow management system based on high-level Petri nets as workflow modelling and execution language. Important requirements for INCOM...

This article presents the results of a survey carried out in spring 2012 to determine the level of housing costs incurred by Austrian households. The housing cost survey shows that the share of housing costs borne by homeowners (loan repayment plus operating expenses and energy costs) accounts for 25% (median: 19%) of their net household income and is thus far lower than that borne by tenants (...

Previous work on the effect of taxes on foreign direct investment (FDI) focused primarily on capital income taxes. We investigate the proposition that other forms of taxation may also deter FDI. We use tax ratios, i.e., average effective tax rates, on consumption, labor and capital income for a panel of 25 OECD countries from 1975-2006. We find that increases in relative tax rates on capital in...

This paper proposes a model aiming at decomposing the Net Final Value of project under certainty. It makes use systemic outlook: investor's net worth is regarded as dynamic system whose structure changes over time. On this basis, profitability index presented, here named Systemic Added (SVA), which lends itself to periodic decomposition: shares formally translate economic concept residual incom...