Davud Rostam-Afschar

Davud Rostam-Afschar
Universität Mannheim ·  Business School

PhD

About

37
Publications
3,633
Reads
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145
Citations
Introduction
My research interests are in the field of household and public economics. In particular, I analyze the interaction of the tax and transfer systems with labor and consumption/saving decisions. I put an emphasis on reconciling the empirical evidence from both microeconomic and macroeconomic sources with theoretical models.
Additional affiliations
January 2020 - April 2022
Universität Mannheim
Position
  • Professor (Assistant)
February 2018 - September 2018
University of California, Berkeley
Position
  • Visiting scholar
April 2016 - March 2022
University of Hohenheim
Position
  • Professor (Assistant)

Publications

Publications (37)
Article
Full-text available
This paper uses the 2004 amendment to the German Trade and Crafts Code as a natural experiment for assessing the causal effects of this reform on the probabilities of being self-employed and of transition into and out of self-employment. This is achieved by using repeated cross-sections (2002–2009) of German microcensus data. I apply the difference...
Article
This paper tests whether subjects learn to comply with the Ricardian Equivalence proposition in a life cycle consumption laboratory experiment. Our results suggest that Ricardian Equivalence does not hold on average: tax changes have a significant and strong impact on consumption choice. Using individual consumption time series, the behaviour of 56...
Article
Full-text available
We investigate how personal income taxes affect the portfolio share of personal wealth that entrepreneurs invest in their own business. In a portfolio choice model that allows for tax sheltering, we show that lower tax rates may increase investment in entrepreneurial equity at the intensive margin, but decrease it at the extensive margin. Using Ger...
Article
In the past years, work-time in many industries has become more flexible, opening up a new channel for intertemporal substitution: workers might, instead of saving, adjust their work-time to smooth consumption. To study this channel, we set up a two-period consumption/saving model with wage uncertainty. This extends the standard saving model by als...
Preprint
Full-text available
We study how licensing, certification and unionisation affect the wages of natives and migrants and their representation among licensed, certified, and unionized workers. We provide evidence of a dual role of labor market institutions, which both screen workers based on unobservable characteristics and also provide them with wage setting power. Lab...
Article
Full-text available
Zusammenfassung Der Beitrag präsentiert die Ergebnisse einer fortlaufenden Unternehmensbefragung im Rahmen des German Business Panels zu den betriebswirtschaftlichen Auswirkungen des Ukrainekriegs. Die derzeitigen Entwicklungen belasten den Ausblick deutscher Unternehmen und führen zu Zurückhaltung bei Investitionen und Neueinstellungen. Mehr als d...
Article
We study how licensing, certification and unionisation affect the wages of natives and migrants and their representation among licensed, certified, and unionized workers. We provide evidence of a dual role of labor market institutions, which both screen workers based on unobservable characteristics and also provide them with wage setting power. Lab...
Article
Full-text available
Zusammenfassung Die Corona-Krise führt bei vielen Unternehmen zu andauernden Umsatzeinbrüchen, die einen akuten Liquiditätsbedarf verursachen, sofern laufende Kosten nicht reduziert werden. Auf Grundlage neuer Daten des German Business Panels wird ein Klassifizierungsverfahren genutzt, das die Kostenstruktur von Unternehmen und damit die Sensitivit...
Article
Survey evidence shows that the magnitude of the tax liability plays a role in value judgements about which groups deserve tax breaks. We demonstrate that the German tax-transfer system conflicts with a welfarist inequality averse social planner. It is consistent with a planner who is averse to both inequality and high tax liabilities. The tax-trans...
Preprint
Full-text available
We use a unique survey of the EU labor force to investigate the relationship between occupational licensing and the gender wage gap. We find that the gender wage gap is canceled for licensed self-employed workers. However, this closure of the gender wage gap is not mirrored by significant changes in the gender gap in hours worked. Our results are r...
Article
Full-text available
Occupational licensing aims to restrict access for providing products and services to only those who promise a minimal level of quality by imposing time and cost-intensive barriers. This can be reasonable to verify personal experience, but bear substantial costs, which need to be justified with proven quality improvements. A series of studies shows...
Article
Full-text available
One of the key institutional elements for reducing inequality is the tax and transfer system. However, economists and policy makers usually view high taxes as detrimental to economic growth. We isolate one important mechanism by which higher taxes reduce inequality and raise per capita GDP at the same time. This mechanism operates in the presence o...
Preprint
Full-text available
In the past years, work time in many industries has become increasingly flexible opening up a new channel for intertemporal substitution. To study this, we set up a two-period model with wage uncertainty. This extends the standard saving model by allowing a worker to allocate a fixed time budget between two work-shifts or to save. To test the exist...
Preprint
Full-text available
We exploit an exogenous price increase by about 10% for architectural services to answer the question how price regulation affects income inequality and service quality. Using individual-level data from the German microcensus for the years 2006 to 2012, we find a significant reform effect of 8% on personal net income for self-employed architects an...
Article
Full-text available
We quantify the importance of precautionary labour supply defined as the difference between hours supplied in the presence of risk and hours under perfect foresight. Using the German Socio-Economic Panel from 2001 to 2012, we estimate the effect of wage risk on labour supply and test for constrained adjustment of labour supply. We find that married...
Technical Report
Full-text available
A common assumption in the optimal taxation literature is that the social planner maximizes a welfarist social welfare function with weights decreasing with income. However, high transfer withdrawal rates in many countries imply very low weights for the working poor in practice. We reconcile this puzzle by generalizing the optimal taxation framewor...
Technical Report
Full-text available
We investigate how personal income taxes affect the portfolio share of personal wealth that entrepreneurs invest in their own business. In a reformulation of the standard portfolio choice model that allows for underreporting of private business income to tax authorities, we show that a fall in the tax rate may increase investment in risky entrepren...
Article
Full-text available
We study three budget-neutral reforms of the German tax and transfer system designed to improve work incentives for people with low incomes: a feasible flat tax reform that provides a basic income equal to the current level of the means-tested unemployment benefit, and two alternative reforms that involve employment subsidies to stimulate participa...
Technical Report
We quantify the importance of precautionary labor supply using data from the German Socio- Economic Panel (SOEP) for 2001-2012. We estimate dynamic labor supply equations augmented with a measure of wage risk. Our results show that married men choose about 2.5% of their hours of work or one week per year on average to shield against unpredictable w...
Technical Report
Full-text available
We quantify the importance of precautionary labor supply using data from the German Socio- Economic Panel (SOEP) for 2001-2012. We estimate dynamic labor supply equations augmented with a measure of wage risk. Our results show that married men choose about 2.5% of their hours of work or one week per year on average to shield against unpredictable w...
Technical Report
We study three budget-neutral reforms of the German tax and transfer system designed to improve work incentives for people with low incomes: a feasible flat tax reform that provides a basic income which is equal to the current level of the means tested unemployment benefit, and two alternative reforms that involve employment subsidies to stimulate...
Book
This paper tests whether the Ricardian Equivalence proposition holds in a life cycle consumption laboratory experiment. This proposition is a fundamental assumption underlying numerous studies on intertemporal choice and has important implications for tax policy. Using nonparametric and panel data methods, we find that the Ricardian Equivalence pro...
Code
See http://davud.rostam-afschar.de/graph3d/graph3d.htm for examples. Graph3d draws a three dimensional plot given a dataset of three variables. Moving, scaling, and 360 degree rotating over all axes is fully supported. Parallel projections can be generated, however, the perspective option allows the user to produce a perspective projection of the d...
Technical Report
This paper tests whether the Ricardian Equivalence proposition holds in a life cycle consumption laboratory experiment. This proposition is a fundamental assumption underlying numerous studies on intertemporal choice and has important implications for tax policy. Using nonparametric and panel data methods, we find that the Ricardian Equivalence pro...
Article
Various studies interpret the positive correlation between income risk and wealth as evidence of significant precautionary savings. However, these high estimates emerge from pooling non-entrepreneurs and entrepreneurs, without controlling for heterogeneity. This article provides evidence for Germany based on representative panel data that includes...

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