ifo Center for Public Finance and Political Economy

Fiscal Federalism and Local Public Finances

The research focus on fiscal federalism and local public finances analyses fiscal policy decisions at different levels of government in a decentralised system. Fundamental issues concern the role of horizontal and vertical interactions in taxation and fiscal competition and the provision of local public services. In this field, ÖF cooperates with Thiess Büttner from the University of Erlangen-Nuremberg. For example, the effects of allocation systems such as fiscal equalisation are analysed in the context of tax and budget autonomy. Furthermore, a research project on the budget composition in the German Länder and municipalities is planned. The main objective of this research project is to produce panel data sets on the expenditure structure of the German federal states and municipalities. The data sets are intended to illustrate the discretionary decision-making scope of the state governments and local councils with regard to state expenditure and to show for which expenditure the state governments and local councils themselves have been responsible through their own decisions. On the basis of the data sets compiled in this research project, the extent to which the party-political composition of the state governments and local councils as well as the re-election motives of politicians influence the budget composition will be investigated.

Evaluation of Fiscal and Fiscal Policy

Another focus of this research area is the regular review of fiscal policy. This concerns in particular the relations within and between the various levels of government in the context of fiscal equalization and the generation and distribution of tax revenue. Important areas of application are fiscal relations in Europe and the allocation of funds from EU Structural Funds. The analysis of the design of fiscal systems in Germany and Europe focuses in particular on the efficiency of the mobility of production factors, the balancing of public budgets and political-economic considerations.

Public Debt in Germany and Europe

Public Finance and Political Economy also deals with national debt in Germany and Europe. This also happens in regard to the background of demographic developments. The focus is on analyzing the causes of the high public debt and its effects, as well as working out possible ways out of the debt crisis. Budget developments are examined at the federal, state and local levels in the short and long term. The short-term analysis is a complement to economic research and the long-term analysis is a complement to the intergenerational distribution issue and the relationship between growth and social cohesion, which is also examined primarily in the research area of labor market research and family economics. These issues will be examined at both national and European Union level.

Political Economy

Political issues are analyzed from both a financial and a political economics perspective. In addition, ongoing research projects in the field of political economics will focus on the effects of government ideology and re-election motives of politicians on individual economic policies and on the effect of institutions of electoral systems (e.g. opening hours of polling stations and compulsory voting) on voter turnout and the proportion of votes of individual parties.

Economic Experts Survey (EES)

The Economic Experts Survey (EES) is a quarterly survey of economic experts worldwide.The EES captures their assessment of the current economic policy and political performance as well as of special questions in their countries. The survey is jointly conducted by the ifo Institute and the Institute for Swiss Economic Policy.

Economic Experts Survey (EES)

ifo and Frankfurter Allgemeine Zeitung Economists Panel

Every two months the ifo Institute and the Frankfurter Allgemeine Zeitung (FAZ) Economists Panel surveys a representative group of economics professors at German universities on current economic policy issues. The panel aims to offer the public a differentiated perspective on how economists see the key challenges facing Germany in the present and the future. The survey results are regularly published in the Frankfurter Allgemeine Zeitung.

Overview of all previous Economists Panels

KOF Globalisation Index

The KOF Globalisation Index measures the economic, social and political dimensions of globalisation. Globalisation in the economic, social and political fields has been on the rise since the 1970s, receiving a particular boost after the end of the Cold War. The original index was introduced by Dreher in 2006. The revised version of the KOF Globalisation Index was introduced by Savina Gygli, Florian Haelg, Niklas Potrafke, and Jan-Egbert Sturm.

KOF Globalisation Index

Prof. Dr. Thiess Büttner, Friedrich-Alexander Universität Erlangen-Nürnberg

Prof. Dr. Klaus Gründler, Universität Kassel

Prof. Dr. Andreas Haufler, Ludwig-Maximilians-Universität München

Dr. Raphael Franck, Hebrew University of Jerusalem

Prof. Kaspar Wüthrich, Ph.D., University of California, San Diego

CESifo Area on Public Economics