As a sub-category of Economics, the study of Finance analyses public
revenue and spending from a macro-economic perspective. In keeping with
the Institute’s focus, this subject considers primarily international
issues. The following problems are of particular interest:
Economic Implications of Taxation
- How is a country’s foreign account for goods and services
influenced by national taxation policies?
- What are the implications of national tax policy for factor
transfer to and from Germany?
- What influence does tax policy have on foreign direct investment
- What is the effect of foreign tax policy on the domestic
- How is German foreign trade influenced by tax policies in
- What consequences do tax policies abroad have on investment,
employment and growth in Germany?
- How can German tax policy react to foreign tax policies?
International Comparison of Financial
and Tax Systems
A comparison of national tax policy with tax systems abroad can provide
extremely useful insights. For this reason the analysis of foreign tax
systems is a core part of the Financial Studies area at the institute.
of Tax Policy in a globalised world economy
- Taxation on goods and services with regard to national and
- Development and current state of European harmonisation of
VAT and other consumer taxes
- Income (factor) taxation with regard to national and international
- Adaptation processes in European Factor Taxation
- Codex preventing unfair tax competition
issues of international fiscal policy
- Competition versus coordination of fiscal policies
- Forms of international cooperation
- The Maastricht Treaty and the European Stability Pact
- Problems of jurisdiction between European and National levels
- The national and European redistribution of funds
- European and national policies on subsidies
- Problems with national and international pension provision
The impact of public taxation and spending
on economies as a whole is determined by the reactions of those companies
and households that are directly affected. For this reason, economic
analyses must take into account the knowledge available on the behaviour
of these parties. The Finance department is therefore reliant upon the
competence in Business and Tax issues invested in the other areas of