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on European Economics |
| By: | Leon Bettendorf; Joeri Gorter; Albert van der Horst |
| Abstract: | Statutory tax rates have declined in the European Union in the recent decades. An applied general equilibrium model on corporate taxation sheds light on the economic and welfare implications of tax rate reforms. Domestic distortions proof highly relevant as even unilateral reductions of the corporate income tax rate might reduce welfare if the labour tax rate has to be increased. Profit shifting induces countries to underbid each others tax rates, but this effect is sizable only if two countries are closely linked. The harmful external effects of CIT rate reductions are limited, which reduces the need for European coordination of CIT rates. |
| Keywords: | corporate income taxation; tax competition; applied general equilibrium model |
| JEL: | C68 E62 F23 H25 |
| Date: | 2006–08 |
| URL: | http://d.repec.org/n?u=RePEc:cpb:docmnt:125&r=eec |
| By: | Michael J. Artis, Luca Onorante |
| Abstract: | The present paper provides an assessment of the effect of the recent revision of the Stability and Growth Pact (SGP) on the European economies. A set of structural VARs, one for each eurozone country, is estimated. The estimated models are then used to assess the possible effect of alternative sets of fiscal rules, with particular attention to the Stability and Growth Pact in its old and reformed versions. The investigation suggests that fiscal policy has had in the past a limited smoothing effect on the cycle, and therefore the cost of the old rules in the corrective arm of the Pact was also limited. As for the reform of the Pact, the analysis is overall supportive of the new country-specific Medium Term Objectives. The modified rules of the Excessive deficit procedure are likely to give the governments only a limited extra leeway to reduce the variability of the cycle. |
| Keywords: | European Monetary Union, Stability and Growth Pact, fiscal-monetary interactions |
| JEL: | E61 E62 E62 |
| Date: | 2006 |
| URL: | http://d.repec.org/n?u=RePEc:eui:euiwps:eco2006/14&r=eec |
| By: | Katja Rietzler |
| Date: | 2005 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwddc:dd4&r=eec |
| By: | Camille Logeay; Julia Schwenkenberg; Sabine Stephan; Christian Proano-Acosta with the Collaboration of Serhiy Yahnych |
| Date: | 2005 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwddc:dd2&r=eec |
| By: | Adam S. Posen (Institute for International Economics); Daniel Popov Gould (Institute for International Economics) |
| Abstract: | This working paper investigates the European Monetary Unification’s (EMU) effect on wage restraint—the degree to which wage increases do or do not exceed productivity growth. We find in cross-sectional investigations that wage restraint either is unchanged or has increased following EMU in the vast majority of countries. This finding contradicts the predictions of a widely cited family of models of coordination of labor market bargaining. In particular, one would have expected Germany to display the greatest decline in wage restraint post-EMU under these models, but in our time-series analysis we find no indication of such a decline. The overall shift toward greater wage restraint is consistent with the models that emphasize the gains from monetary credibility. The time-series evidence on Italy, which shows a significant increase in wage restraint after eurozone entry, also supports this view. That said, the increase in wage restraint in the eurozone is matched by that associated with the increase in credibility seen in the United Kingdom and Sweden after their adoption of inflation targeting post-1992. |
| Keywords: | EMU, wage bargaining, monetary credibility, productivity |
| JEL: | E58 E25 J58 |
| Date: | 2006–08 |
| URL: | http://d.repec.org/n?u=RePEc:iie:wpaper:wp06-6&r=eec |
| By: | Manh Ha Duong; Camille Logeay; Sabine Stephan; Rudolf Zwiener with the Collaboration of Serhiy Yahnych |
| Date: | 2005 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwddc:dd5&r=eec |
| By: | Camille Logeay; Christian Proano-Acosta; Sabine Stephan; Rudolf Zwiener with the Collaboration of Serhiy Yahnych |
| Date: | 2005 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwddc:dd3&r=eec |
| By: | Alan Hughes |
| Abstract: | This paper assesses the current nature of university-industry links in the UK and US using the recent unique IPC-CBR innovation benchmarking survey of the UK and the US. It argues for a more diverse approach to the complex nature of university-industry links than is currently the case. The paper in addition provides a brief overview of SET policy in the UK locating university-industry links within the overall UK policy framework. It argues for a greater degree of coordination of existing policy levers rather than new initiatives and for an effective use of public procurement in relation to SET policy. |
| Keywords: | Science and Technology Policy, University Industry Links, UK-US comparisons |
| Date: | 2006–06 |
| URL: | http://d.repec.org/n?u=RePEc:cbr:cbrwps:wp326&r=eec |