Economic and Fiscal Policy

Economic & Fiscal Policy

Foremost on industry bosses’ mind and the general public attention alike, economic policy is one of the key areas of EconPol analysis. Fiscal policy, in turn, as a major enabler of economic policy, is another pillar of exploration. Devising the right policies to boost economic growth, assure price stability, and safeguard sustainable public finances is an art in itself, and different for every country and economy. This EconPol section examines policies that impact taxation, government spending, budgetary allocations, and public debt management. Additionally, it investigates the challenges and trade-offs faced by policymakers in balancing competing goals and responding to economic shocks and crises.

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Forum Icon ECONOMIC POLICY AND ITS IMPACT

The Closure of Police Stations Leads to an Increase in Theft Crime

ECONOMIC POLICY AND ITS IMPACT

Sebastian Blesse and André Diegmann

The recent literature on law enforcement activities and police presence shows that the intensity of crime can be influenced by police availability and visibility. This study is one of the first to analyze the effects of police infrastructure on crime occurrence. Attempts to cut back on police infrastructures in the area in favor of supposed efficiency gains can therefore be accompanied by considerable side effects – in the form of an increase in reported property crimes. Thus, the present results can inform policymakers and practitioners about possible unintended side effects of efficiency-oriented restructuring of administrative infrastructures. These should be considered for future plans of an efficient and future-proof reorganization of police structures.

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Europe Flags

Europe’s Industrial Policy and the Response to IRA

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Expert Opinion
Europe is seeing a renaissance in industrial policy. Industrial policy usually involves influencing an economy’s sectoral development by means of subsidies, partial state ownership of companies, or regulations. It can also include promoting mergers of companies to form national champions – large companies which are supposed to conquer the world’s markets with their governments’ support. It’s also common to bar foreign investors from taking over domestic companies that are deemed strategically important.
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Skilled Workers

Higher Wages May Help Overcome the Shortage of Skilled Workers!

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Expert Opinion
There is currently intense debate in many countries about a shortage of skilled workers. For instance in Germany, despite record employment figures, according to surveys by the ifo Institute, close to 50 percent of companies say they are constrained by a shortage of skilled workers – also an all-time high. From an economic perspective, there is a simple answer to shortages: higher prices.
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Cover of EconPol Policy Brief 49

Has the Time Come for Excess Profit Taxes?

Shafik Hebous

Excess profit taxes (EPTs) emerge as an option to contribute to the extra needed revenues, avoiding a general increase in corporate tax rates, while having the prospect to serve as a gateway to converge toward a permanent efficient rent tax instaed of the corporate income tax. General unilateral (temporary or permanent) EPTs would face the same international pressures from profit shifting and tax competition as the existing corporate income tax, calling for international coordination. A coordinated EPT on multinational enterprises can take the form of a formulary apportionment approach that allocates the EPT base using sales by destination.

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