Policy Article

Wie produktiv sind die Bundesausgaben?

Authors

  • Claus-Friedrich Laaser
  • Astrid Rosenschon
Publication Date

In the context of the federal budget, the importance of financial aid, social spending and legacy burdens stands out. In most cases, subsidies do not serve to internalize external effects and even Pigouvian subsidies are economically problematic because the state lacks the knowledge about the right dosage. Redistribution activities dominate, while expenditures on original public tasks in the form of the production of public goods recede into the background, although this is precisely where the state's legitimacy lies.

Info

JEL Classification
H50

Key Words

  • fiscal policy and budget
  • Germany
  • tax policy
  • subsidies
  • federal spending