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on Accounting and Auditing |
| By: | Marko Köthenbürger (KOF Swiss Economic Institute, ETH Zurich, Switzerland); Florian Chatagny (KOF Swiss Economic Institute, ETH Zurich, Switzerland); Michael Stimmelmayr (KOF Swiss Economic Institute, ETH Zurich, Switzerland) |
| Abstract: | In response to the increasing international pressure on Switzerland to reform the ring-fenced elements in its tax system, the Swiss Government has put forward a comprehensive tax reform package. The proposal comprises, among other things, the introduction of a licence box, a substantial reduction in the cantonal profit tax rates and an allowance for excess corporate equity. We apply a computable general equilibrium model to quantify the economic effects of this reform. Our results reveal that the licence box, combined with the reduction in the cantonal profit tax, limits the outflow of the tax base of those companies that benefit from the current preferential tax treatment. The reduction in the cantonal profit tax and the fact that regularly taxed companies also benefit from the licence box render the reform package costly, such that the tax revenues will decline after the reform. |
| Keywords: | Tax Competition, Licence Box, Corporate Tax Reform, General Equilibrium Model |
| JEL: | H25 H32 C68 |
| Date: | 2015–07 |
| URL: | http://d.repec.org/n?u=RePEc:kof:wpskof:15-390&r=acc |
| By: | Musa, Mayanja Lwanga; Joseph, Mawejje |
| Abstract: | This paper investigates the relationship between budget deficits and selected macroeconomic variables for the period 1999 to 2011 using Vector Error Correction Model (VECM), pairwise granger causality test and variance decomposition techniques. Results indicate that the variables under study are cointegrated and thus have a long run relationship. Results based on the VECM reveal unidirectional causal relationships running from budget deficits (BD) to current account balance (CAB), inflation to BD and BD to lending interest rates. But the results show no causal relationship between gross domestic product (GDP) and budget deficits in Uganda. The Pairwise Granger Causality test results reveal unidirectional causal relationships running from budget deficit to current account, BD to GDP, inflation to BD, and a bi-directional causal relationship between the current account balance and GDP. Variance decomposition results show that, variances in the current account balance and GDP are mostly explained by the budget deficit followed by lending interests while variance in lending interest rates is mostly explained by inflation followed by GDP, variance in the Inflation is mostly explained by variance in lending interest rates followed by the current account balance. The results from the study clearly show that budget deficits in Uganda are responsible for widening current account deficit and raising interest rates. Fiscal and monetary policy actions are therefore needed to contain and reduce the deficit in order to minimize its effect on the current account and lending interest rates. Such actions should aim at increasing Uganda’s tax revenue collection by adopting efficient and effective methods of tax collection. Such policies should see a reduction in the informal sector which has proved difficult to tax and a reduction in ineffective tax exemptions. Government should improve and heighten its efforts in combating tax evasion and corruption which undermine its tax collection efforts |
| Keywords: | Budget Deficits, macroeconomic performance, VAR, Uganda JEL Classification: C5, E6, H5, Agricultural Finance, Financial Economics, |
| Date: | 2014–06 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eprcrs:206135&r=acc |
| By: | Bar, Talia; Zheng, Yuqing |
| Abstract: | Standards play a vital role in promoting food safety. Certification helps buyers identify suppliers who meet certain expectations defined by various standards. Producers choose a certification body to audit their manufacturing site and determine if they can be issued a certification for a given standard. Using data the from the British Retail Consortium global standards program, we examine producers’ choice of certification bodies. Two important considerations in producers’ choice of certification bodies are the geographic proximity between the certification body office and the audited site, and the perceived audit leniency of the certification body. |
| Keywords: | British Retail Consortium, BRC, certification body, distance, food safety, grade, leniency, Agribusiness, Food Consumption/Nutrition/Food Safety, Industrial Organization, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea15:205570&r=acc |
| By: | Musa Mayanja, Lwanga; Joseph, Mawejje |
| Abstract: | This paper investigates the relationship between budget deficits and selected macroeco¬nomic variables for the period 1999 to 2011 using Vector Error Correction Model (VECM), pairwise granger causality test and variance decomposition techniques. Results indicate that the variables under study are cointegrated and thus have a long run relationship. Results based on the VECM reveal unidirectional causal relationships running from budget deficits (BD) to current account balance (CAB), inflation to BD and BD to lending interest rates. But the results show no causal relationship between gross domestic product (GDP) and budget deficits in Uganda. The Pairwise Granger Causality test results reveal unidirectional causal relationships running from budget deficit to current account, BD to GDP, inflation to BD, and a bi-directional causal relationship between the current account balance and GDP. Variance decomposition results show that, variances in the current account balance and GDP are mostly explained by the budget deficit followed by lending interests while variance in lend¬ing interest rates is mostly explained by inflation followed by GDP, variance in the Inflation is mostly explained by variance in lending interest rates followed by the current account bal¬ance. The results from the study clearly show that budget deficits in Uganda are responsible for widening current account deficit and raising interest rates. Fiscal and monetary policy actions are therefore needed to contain and reduce the deficit in order to minimize its ef¬fect on the current account and lending interest rates. Such actions should aim at increasing Uganda’s tax revenue collection by adopting efficient and effective methods of tax collec¬tion. Such policies should see a reduction in the informal sector which has proved difficult to tax and a reduction in ineffective tax exemptions. Government should improve and heighten its efforts in combating tax evasion and corruption which undermine its tax collection ef¬forts. |
| Keywords: | Budget Deficits, macroeconomic performance, VAR, Uganda, Consumer/Household Economics, Demand and Price Analysis, Financial Economics, Public Economics, Risk and Uncertainty, C5, E6, H5, |
| Date: | 2014–06 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eprcrs:184172&r=acc |
| By: | Gregory Phelan (Williams College); Alexis Akira Toda (University of California-San Diego) |
| Abstract: | We study the effect of collateralized lending and securitization on international capital flows, growth, and welfare in a two country general equilibrium model. We find that capital flows from the high- to low-margin country, leading to high investment levels and economic growth in the latter. Despite low growth, the high-margin country substantially gains in terms of welfare through better risk sharing opportunities. The ability to tranche asset-backed securities in one country leads to offsetting portfolio flows, creating gross financial flows. Exogenous fluctuations in collateral requirements and the introduction of tranching have important implications for both net and gross international flows. |
| Keywords: | Asset-backed securities, current account deficit, global imbalances, gross international asset positions, idiosyncratic risk |
| JEL: | D52 F32 F34 F36 G15 |
| Date: | 2015–07 |
| URL: | http://d.repec.org/n?u=RePEc:wil:wileco:2015-14&r=acc |