The study looked at how people in Germany change their taxable income in response to tax reforms. By using a new dynamic income model, the researchers found that the elasticity of taxable income in Germany is 0.36, which means people adjust their income by 0.36% in response to tax changes. Married taxpayers have a higher elasticity of 0.44 compared to single taxpayers at 0.17. These findings differ from results in the US, showing that Germans are less responsive to tax changes than Americans.