nep-acc New Economics Papers
on Accounting and Auditing
Issue of 2009‒08‒22
nine papers chosen by
Alexander Harin
Modern University for the Humanities

  1. Legitimacy to develop fair value measurement standards: The Case of the IVSC Discussion Paper – Determination of fair value of intangible assets for IFRS reporting purposes By Deaconu, Adela; Nistor, Cristina Silvia; Filip , Crina
  2. "From Unpaid to Paid Care Work--The Macroeconomic Implications of HIV and AIDS on Women's Time-tax Burdens" By Rania Antonopoulos; Taun N. Toay
  3. Endogenous income taxes in OLG economies: A clarification By Chen, Yan; Zhang, Yan
  4. Audit des capacités de gestion des crises Cadrage, Evaluation, Initiatives By Patrick Lagadec
  5. Estimated State and Local Fiscal Effects of the Nurse Family Partnership Program By Timothy J. Bartik
  6. Taxes and Trading versus Intensity Standards: Second-Best Environmental Policies with Incomplete Regulation (Leakage) or Market Power By Stephen P. Holland
  7. The Role of Corporate Taxation in a Large Welfare State By Christian Keuschnigg
  9. Corporate Taxes and Union Wages in the United States By R. Alison Felix; James R. Hines, Jr.

  1. By: Deaconu, Adela; Nistor, Cristina Silvia; Filip , Crina
    Abstract: This research studies, through a content analysis of the comment letters to the IVSC project on fair value determination of intangible assets, the legitimacy of this professional body, or of the accounting associations, to develop measurement standards specific to this accounting concept. At present, with the exception of FAS 157, no professional standard offers clear technical solutions for fair value determination for financial reporting purposes. We have come to the conclusion that, among respondents, accountants are more reserved than valuators in what regards the IVSC regulating of the fair value measurement. The Anglo-Saxon respondents are more open to accept the IVSC DP as compared to respondents from other countries, hence the IVSC legitimacy to develop fair value measurement standards. Generally, we consider that accounting bodies, rather than valuation bodies, should have legitimacy to develop fair value measurement standards.
    Keywords: fair value; professional standards; valuation techniques; guidance; project acceptation; value hierarchy
    JEL: M00 G12 M41 G34 M40 M21
    Date: 2009
  2. By: Rania Antonopoulos; Taun N. Toay
    Abstract: This paper considers public employment guarantee programs in the context of South Africa as a means to address the nexus of poverty, unemployment, and unpaid work burdens--all factors exacerbated by HIV/AIDS. It further discusses the need for genderinformed public job creation in areas that mitigate the "time-tax" burdens of women, and examines a South African initiative to address social sector service delivery deficits within the government's Expanded Public Works Programme. The authors highlight the need for well-designed employment guarantee programs--specifically, programs centered on community and home-based care--as a potential way to help offset the destabilizing effects of HIV/AIDS and endemic poverty. The paper concludes with results from macroeconomic simulations of such a program, using a social accounting matrix framework, and sets out implications for both participants and policymakers.
    Date: 2009–08
  3. By: Chen, Yan; Zhang, Yan
    Abstract: This paper introduces endogenous capital income tax rates as in Schmitt-Grohe and Uribe (1997), into the overlapping generations model with endogenous labor and consumption in both periods of life (e.g., Cazzavillan and Pintus, 2004). In contrast with the previous result that the existence of endogenous labor income taxes raises the possibility of local indeterminacy (Chen and Zhang 2009), it shows that increasing the size of capital income taxes can make shrink the range of values of the consumption--to--wage ratio associated with local indeterminacy, because of two conflicting effects on savings that operate through wage and interest rate.
    Keywords: Indeterminacy; Endogenous capital income tax rate.
    JEL: E32 C62
    Date: 2009–08–16
  4. By: Patrick Lagadec (Department of Economics, Ecole Polytechnique - CNRS : UMR7176 - Polytechnique - X)
    Abstract: Les bouleversements enregistrés sur le front des crises majeures appellent un réexamen rapide de nos capacités de « gestion de crise » et à des progrès décisifs en matière de pilotage. Cette contribution vise à : 1°) Renseigner le contexte multiforme et instable dans lequel penser et développer les audits et les initiatives nécessaires : les catastrophes, les événements-crises, les crises systémiques, la dislocation de nos univers et socles de référence. 2°) Proposer quelques pistes pour ces démarches d'évaluation et d'invention à engager sans délais.
    Keywords: Audit des capacités de gestion de crise, Initiatives
    Date: 2009–06–03
  5. By: Timothy J. Bartik (W.E. Upjohn Institute for Employment Research)
    Abstract: This short paper estimates the state and local fiscal benefits of the Nurse Family Partnership (NFP) program. NFP provides nurse home visiting services to low-income first-time mothers. In addition to social benefits, NFP provides state and local fiscal benefits by reducing costs of social services, welfare, and crime, and increasing tax receipts due to increased earnings of mothers and former child participants when they grow up. Based on previous studies, this paper estimates that the present value, in 2007 dollars, of these state and local fiscal benefits is a little over $15,000 per NFP case.
    Keywords: Nurse Family Partnership Program, state and local effects
    JEL: H75 H71 I18 J48
    Date: 2009–06
  6. By: Stephen P. Holland
    Abstract: This paper investigates whether an emissions tax (equivalent to an emissions cap) maximizes social welfare (defined as the sum of consumer and producer surplus) in the presence of incomplete regulation (leakage) or market power by analyzing an intensity standard regulating emissions per unit of output. With no other market failures, an intensity standard indeed yields lower welfare, although combining it with a consumption tax eliminates this discrepancy. For incomplete regulation, I show that under certain conditions an intensity standard can yield higher welfare than any emissions tax (including the optimal emissions tax). This result persists even with the addition of a consumption tax, which ameliorates output distortions and can sometimes help the intensity standard attain the first best (when an emissions tax/consumption tax combination cannot). Comparing intensity standards to output-based updating shows that the latter yields higher welfare because of its additional flexibility. Finally, I show that with market power an intensity standard can yield higher welfare than the optimal emissions tax. The intuition of these results is relatively straightforward. The weakness of an intensity standard is that it relies more on substitution effects than output effects to reduce emissions. With incomplete regulation or market power, this disadvantage may be helpful since leakage may offset gains from reducing output and since market power already inefficiently reduces output.
    JEL: H23 Q40 Q50
    Date: 2009–08
  7. By: Christian Keuschnigg
    Abstract: In comparing the impact of corporate taxation and social insurance on foreign direct investment (FDI) and unemployment, the paper derives four main results: (i) the optimal size of the welfare state depends on the degree of risk-aversion, the unemployment rate and the excess burden of labor taxes. Unemployment partly reflects the country's exposure to globalization; (ii) corporate taxation and social insurance can have equivalent effects on unemployment and outbound FDI; (iii) while an increase in the corporate tax raises corporate tax revenue, it is likely to worsen total fiscal stance; (iv) a corporate tax should be used to contribute to welfare state financing only in exceptional cases.
    Keywords: Corporate tax, foreign direct investment, unemployment, welfare state
    JEL: F21 H21 H53 J64 J65
    Date: 2009–08
  8. By: Reyno Seymore (Department of Economics, University of Pretoria); Margaret Mabugu (Department of Economics, University of Pretoria); Jan van Heerden (Department of Economics, University of Pretoria)
    Abstract: The South African Government announced, in the 2008 Budget Review, the intention to tax the generation of electricity from non-renewable sources with 2c/kWh. This tax is to be collected by the producers/generators of electricity at the source. The intention of the tax is to serve a dual purpose of managing the potential electricity shortages in South Africa and to protect the environment. The primary objective of this paper is to evaluate the impact of an electricity generation tax on the international competitiveness of South Africa. Specifically, different scenarios are assessed to establish whether the loss of competitiveness can be negated through an international, multilateral electricity generation tax. The paper firstly considers the beneficial impact of environmental taxation on the competitiveness of a country. We subsequently apply the Global Trade Analysis Project (GTAP) model to evaluate the impact of an electricity generation tax on the competitiveness of South Africa, given multilateral taxes on SACU, SADC and European Union economies. We simulate the proposed tax as a 10 percent increase in the output price of electricity. We assume a closure rule that allows unskilled labour to migrate between sectors and a limited skilled workforce. As expected, a unilateral electricity generation tax in South Africa will adversely affect the competitiveness of the South African economy and slightly improve the competitiveness of the other SACU and SADC economies. However, if a multilateral tax is imposed throughout the SACU and SADC countries, South Africa will experience a marginally greater loss of competitiveness compared to a unilateral tax. At the same time the rest of the SACU and SADC countries will experience a loss of competitiveness. The benefit of emission reduction in South Africa will also be lower under these multilateral tax scenarios. The competitiveness effect on the South African economy as well as emission reduction will be more moderate under a multilateral South Africa/EU electricity generation tax than under a unilateral South African tax.
    Date: 2009–08
  9. By: R. Alison Felix; James R. Hines, Jr.
    Abstract: This paper evaluates the effect of U.S. state corporate income taxes on union wages. American workers who belong to unions are paid more than their non-union counterparts, and this difference is greater in low-tax locations, reflecting that unions and employers share tax savings associated with low tax rates. In 2000 the difference between average union and non-union hourly wages was $1.88 greater in states with corporate tax rates below four percent than in states with tax rates of nine percent and above. Controlling for observable worker characteristics, a one percent lower state tax rate is associated with a 0.36 percent higher union wage premium, suggesting that workers in a fully unionized firm capture roughly 54 percent of the benefits of low tax rates.
    JEL: H22 H25 J31 J51
    Date: 2009–08

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