Findings from Deutsch Bundesbank Yields New Findings on Economics (Parity Funding of Health Care Contributions In Germany: a Dsge Perspective)

2021 FEB 25 (NewsRx) -- By a News Reporter-Staff News Editor at Insurance Daily News -- New research on Economics is the subject of a report. According to news originating from Frankfurt, Germany, by NewsRx correspondents, research stated, “Germany reintroduced parity funding of the statutory health insurance scheme in January 2019 by lowering the contribution rates for employees and raising those for employers, leaving the total rate constant. This reduces the tax wedge between total labour costs and net wages.”

Our news journalists obtained a quote from the research from Deutsch Bundesbank, “After a small demand impulse on impact, followed by a small downturn in the first two years after implementation, an estimated New Keynesian DSGE model indicates small positive long-run output and employment effects. However, the reduced tax wedge leads to lower public revenues.”

According to the news editors, the research concluded: “Aggregate macroeconomic and welfare effects will depend on how the government compensates for these revenue losses.”

This research has been peer-reviewed.

For more information on this research see: Parity Funding of Health Care Contributions In Germany: a Dsge Perspective. German Economic Review, 2020;21(2):217-233. German Economic Review can be contacted at: Walter De Gruyter Gmbh, Genthiner Strasse 13, D-10785 Berlin, Germany. (Wiley-Blackwell - http://www.wiley.com/; German Economic Review - http://onlinelibrary.wiley.com/journal/10.1111/(ISSN)1468-0475)

The news correspondents report that additional information may be obtained from Nikolai Staehler, Deutsch Bundesbank, Dg Econ, Wilhelm Epstein Str 14, D-60431 Frankfurt, Germany. Additional authors for this research include Almira Enders and Dominik Groll.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1515/ger-108-18. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.

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