nep-acc New Economics Papers
on Accounting and Auditing
Issue of 2008‒05‒10
three papers chosen by
Alexander Harin
Modern University for the Humanities

  1. Forensic Accounting: Hidden Balance of Payments of the Philippines By Edsel L. Beja
  2. There is no such thing as an audit society By Maltby, Josephine
  3. Interaction between vertical and horizontal tax competition: evidence and some theory. By Rizzo, Leonzio

  1. By: Edsel L. Beja
    Abstract: <p>An examination of the available data between 1990 and 2005 reveals that the balance of payments of the Philippines does not record large amounts of international transactions. Unrecorded international transactions for this period amount to US $192 billion (in 1995 U.S. dollars). The results suggest a serious problem in the government’s macroeconomic management of the Philippines, and expose a weak or weakening capacity in the governance of international transactions.</p><p>Edsel Beja, Jr. is a PERI Research Scholar. He is Deputy Director of the Ateneo Center for Economics Research and Development, and Assistant Professor at Ateneo de Manila University in the Philippines.</p>
    Keywords: balance of payments, unrecorded transactions, Philippines
    JEL: B40 B50 C82 F40 O53
    Date: 2007
  2. By: Maltby, Josephine
    Abstract: Tny discussion of Power’s Audit Society paper of 1994 has to start by acknowledging that it has enjoyed an extraordinary degree of success for an academic paper, let alone for an academic paper about audit. His terms audit society and audit explosion have gained very wide currency within the social sciences and on the wider stages of quality journalism and serious-minded websites. Some of this is, admittedly, due to Power’s own copious output on the topic (Power, 1994a,1994b, 1997, 2000a, 2000b, 2000c, 2000d, 2002, 2003a, 2003b, 2005a, 2005b), some to exegeses of it (see for instance Bowerman et al 2000, Humphrey and Owen 2000 and Courville, Parker, and Watchirs 2003)) but a great deal to admirers from all sorts of disciplines.
    Date: 2007
  3. By: Rizzo, Leonzio
    Abstract: The aim of this paper is to determine to what extent and how federal taxes affect local tax decisions. Testing the impact of an increase in the federal tax on horizontal tax competition with Canada-US data for 1984--1994, we find evidence that an increase in federal tax affects horizontal tax competition. The novelty of our approach is that it indirectly tests the effect of an increase in federal tax on provincial tax, by testing whether provincial reaction to an increase in neighboring tax changes according to the federal tax level. The test allows for control of yearly macroeconomic shocks by inserting dummies for each year. These are not used in the empirical literature on vertical tax competition because they would cause perfect collinearity with the federal tax.
    Keywords: horizontal externality; vertical externality; tax competition; tax rate
    JEL: H77 H7 H72 H71 H73
    Date: 2007

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