nep-acc New Economics Papers
on Accounting and Auditing
Issue of 2014‒05‒17
five papers chosen by
Alexander Harin
Modern University for the Humanities

  1. Exploring Policy Options to include Petroleum, Natural Gas and Electricity under the Proposed Goods and Services Tax (GST)Regime in India. By Mukherjee, Sacchidananda; Rao, R. Kavita
  2. Sulla composizione dell'accisa sui tabacchi: un'ipotesi di modifica del sistema di tassazione in Italia By Liberati, Paolo; Paradiso, Massimo
  3. Tax Enforcement, Technology, and the Informal Sector By Ceyhun Elgin; Mario Solis-Garcia
  4. Mansion Tax: The Effect of Transfer Taxes on the Residential Real Estate Market By Wojciech Kopczuk; David J. Munroe
  5. The process of financial integration of EU economies By Marco Veronese Passarella

  1. By: Mukherjee, Sacchidananda (National Institute of Public Finance and Policy); Rao, R. Kavita (National Institute of Public Finance and Policy)
    Abstract: The study analyses the impact of keeping crude petroleum, natural gas, motor spirit (gasoline/ petrol), high speed diesel (diesel), aviation turbine fuel (ATF) and electricity out of the Value Added Tax (VAT) scheme. Specifically, the study finds that keeping these items out of the input tax credit mechanism (either partially or fully) would result in cascading. Through an input-output framework, this study proposes some alternatives to the proposed design of GST and assesses the implications for cascading and prices. It captures the degree of cascading across 48 sectors under different scenarios and explores alternative policy options to phase out under-recoveries of oil market companies on account of sales of diesel and petrol under the administered pricing mechanism.
    Keywords: Goods and services tax, Value added tax, Tax cascading, Tax incidence analysis, Ad valorem tax, Input-output analysis, Revenue neutral rates, Taxation of petroleum products, India
    Date: 2014–05
  2. By: Liberati, Paolo; Paradiso, Massimo
    Abstract: An appropriate structure of tobacco taxation should balance only apparently contrasting health, industrial and fiscal aims. In this paper, it will be discussed the main critical issues of the present system of tobacco taxation in Italy and some hypotheses of reform. In particular, it will be proposed to link the structure of tobacco taxation to the weighted average price and to change the mix of the excise taxes towards specific taxation. The simulation of the impact of these proposals will show that the common opinion that an increase of the excise tax will reduce tax revenue, with respect to the present system, is not grounded in the data. The main reason lies in the possibility that a reduction of the ad valorem part of taxation will give stronger incentive to increase consumption prices.
    Keywords: Taxation, Excise taxes, Tobacco
    JEL: H22 H23 H31 H32
    Date: 2014–05
  3. By: Ceyhun Elgin; Mario Solis-Garcia
    Date: 2014–05
  4. By: Wojciech Kopczuk; David J. Munroe
    Abstract: Houses and apartments sold in New York and New Jersey at prices above $1 million are subject to the so-called 1% "mansion tax" imposed on the full value of the transaction. This policy generates a discontinuity (a "notch") in the overall tax liability. We rely on this and other discontinuities to analyze implications of transfer taxes in the real estate market. Using administrative records of property sales, we find robust evidence of substantial bunching and show that the incidence of this tax for transactions local to the discontinuity falls on sellers, may exceed the value of the tax, and is not explained by tax evasion (although supply-side quality adjustments may play a role). Above the notch, the volume of missing transactions exceeds those bunching below the notch. Interpreting our results in the context of an equilibrium bargaining model, we conclude that the market unravels in the neighborhood of the notch: its presence provides strong incentive for buyers and sellers in the proximity of the threshold not to transact. This effect, the identification and recognition of which is novel to this paper, is above and beyond the standard extensive margin response. When present, unraveling affects interpretation and estimation of bunching estimates. Finally, we show that the presence of the tax affects how the market operates away from the threshold---taxation increases price reductions during the search process and in the bargaining stage and weakens the relationship between listing and sale prices. We interpret these results as demonstrating that taxation affects the ultimate allocation in this search market.
    JEL: H2 H7 R3
    Date: 2014–05
  5. By: Marco Veronese Passarella (University of Leeds)
    Abstract: The aim of this document is to complement the analysis of ‘variegated financialisation’ provided (in an associated paper) by Passarella Veronese (2013) with a preliminary examination of the process of financial integration of EU countries, and especially of Euro Area’s member-States. In this regard, figures show that a process of increasing financial interconnectedness between different country-based economic units has been actually operating since the early 1990s within the Euro Area. As pointed out by ECB’s staff and other economics studies, convergences in lending rates and sovereign bond yields have been recorded, coupled with growing cross-border flows of capitals and cross-border interbank market integration (until the outbreak of the recent European crisis at least). However, especially after the launch of the single currency in 2002, this dynamics has gone along with growing current account imbalances (and, symmetrically, financial imbalances) within the Euro Area, due to differences in national growth rates, ‘inefficiencies’ in economies of peripheral countries, and the successful deflationary policies adopted by core countries. As a result, the permanent current account deficits of Euro Area’s peripheral economies have reflected in an increasing amount of financial liabilities placed by their government sectors in international markets (until the outbreak of the crisis at least). Thus, ‘real-world’ financial integration has not led to the development of a net of horizontal links between economic units operating within a uniform supranational economic space. What figures show, is rather a process of concentration and centralisation of capitals within the Euro Area, reinforcing structural imbalances between the core and the periphery. In the absence of radical changes in European institutions, this asymmetric integration is further endangering, instead of improving, the financial soundness of EU.
    Keywords: Financial Crises, Govern Policy and Regulation of Financial Markets, Financial Institutions, Varieties of Financialisation.
    JEL: G01 G18 G21 N20
    Date: 2014–04–03

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