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on Accounting and Auditing |
| By: | Richard Ochmann |
| Abstract: | This paper empirically investigates the effects of differential income taxation on households' portfolio choice and asset allocation applying a two-stage budgeting model of asset demand to German survey data. The model is structured into the discrete asset choice and the continuous asset choice, and the marginal income tax rate is simulated in a module of income taxation. Households that face relatively higher tax rates are found to have relatively greater demand for tax-privileged assets than households in the lower tax brackets. The higher the marginal tax rate the greater demand is for non-owner-occupied housing, for mortgage repayments, for building society deposits, for stocks, for insurances, and for consumer credits, whereas demand is lower for owner-occupied housing, bank deposits, and bonds. |
| Keywords: | Household asset allocation, portfolio choice, two-stage budgeting, capital income taxation |
| JEL: | C35 G11 H31 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwwpp:dp1058&r=acc |
| By: | Martin Besfamille; Pablo Olmos |
| Abstract: | Most of the contributions to the optimal tax-enforcement literature assume that audits are perfect and always discover evaders. However, evasion often remains undetected. To reduce the probability of such a failure, governments invest resources to improve their tax administrations’ detection technology. We incorporate these kind of investments into a model that studies optimal fiscal policies under uncertain detection of evaders. We characterize their level and we show numerically how they interact with the other dimensions of an optimal fiscal policy. Finally, we highlight the differences between our results and those obtained in a model without investment in audit technology. |
| Keywords: | Tax evasion - Tax rates - Enforcement - Imperfect audits - Investments in tax administration |
| JEL: | D82 H26 H83 |
| Date: | 2010–08 |
| URL: | http://d.repec.org/n?u=RePEc:udt:wpecon:2010-09&r=acc |
| By: | Christoph Braun |
| Abstract: | This paper studies a Ramsey optimal taxation model with human capital in an infi nite-horizon setting. Contrary to Jones, Manuelli, and Rossi (1997), the human capital production function does not include the current stock of human capital as a production factor. As a result, the return to human capital, namely labor income, does not vanish in equilibrium. In a stationary state, the household underinvests in human capital relative to the fi rst best, i.e., education is distorted. Human capital is eff ectively taxed. The optimal tax scheme prescribes making the cost of education not fully tax-deductible. |
| Keywords: | Optimal taxation; human capital; Ramsey approach |
| JEL: | H21 I28 J24 |
| Date: | 2010–09 |
| URL: | http://d.repec.org/n?u=RePEc:rwi:repape:0202&r=acc |
| By: | Vincent Delbecque; Laurence Nayman |
| Abstract: | Following Corrado, Hulten and Sichel (2005) this paper investigates French spending in intangible capital. In this work, we tackle two issues. First, working on national accounting data we sharply investigate the data sources, using detailed supply & use tables taken from the French national accounts. Second, referring to different fields in the economic literature, we deepen the analysis and the measurement methods that have been used recently in the empirical literature. We are then able to assess more accurately the items of interest. We estimate that French intangible GFCF could be valued for the whole economy between 8% and 9% of GDP in 2004 and between 6% and 7% for the business sector. |
| Keywords: | Intangible capital investment; national accounts; methodology; productivity; growth |
| JEL: | E22 B40 C82 O47 |
| Date: | 2010–09 |
| URL: | http://d.repec.org/n?u=RePEc:cii:cepidt:2010-19&r=acc |
| By: | Christian EBEKE; Hélène EHRHART (Centre d'Etudes et de Recherches sur le Développement International) |
| Abstract: | This paper focuses on the sources and consequences of the instability of tax revenue in Sub-Saharan African countries. We take advantage of a unique and extraordinarily rich dataset on the composition of tax revenues for a large number of countries. Using panel data for 39 countries observed over the period 1980-2005, our results are threefold. Firstly, the instability of government tax revenue leads to an instability of both the public investment and government consumption, and finally, reduces the level of public investment. Secondly, foreign aid inflows appear to be an effective insurance mechanism against the instability of tax revenue by lowering the sensitivity of public investment with respect to tax revenue shocks. Finally, the reliance on domestic indirect taxation-based systems seems more stabilizing than the dependency on trade tax revenue. |
| Keywords: | Tax Instability, Tax Composition, public spending, foreign aid, Sub-Saharan Africa |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:cdi:wpaper:1192&r=acc |