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on Financial Development and Growth |
| By: | Miyazaki, Takeshi |
| Abstract: | The present study examines the incentiv¬e effects of fiscal equalization transfers on local corporate tax rates from theoretical and empirical perspectives. The study focuses on additional corporate tax on capital, which is exempt from calculations of equalization grants. A theoretical investigation reveals that a rise in equalization rate increases additional capital tax rates. The theoretical prediction is empirically examined using panel data of Japanese municipalities for 1990–2000. It is found that a higher equalization rate in fiscal equalizing transfers gives municipalities an incentive to raise corporate tax rates exempt from the transfer scheme. |
| Keywords: | Intergovernmental fiscal transfers; regression discontinuity design; tax competition; tax effort |
| JEL: | H7 H71 H77 |
| Date: | 2016–10 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:74337&r=fdg |
| By: | Heekyung SON (Statistical Research Institute in Statistics Korea) |
| Abstract: | To keep making economic development continuously these days, there is a newly widespread awareness that it is definitely important to accumulate not only the physical and human capital but also the social capital. Many people have been paying attention to the trust which is one of the most representative factors in the social capital from an economic point of view as there are increasing empirical evidences to demonstrate pretty convincingly that the social capital significantly contributes to the economic growth.In order to analyze how the social capital has an impact on the economic growth and what kind of factors make the level of trust changed, I adopted the Corruption Perception Index(CPI) as the indicator representing the "trust" so as to compare its CPI with those of other countries and analyzed data of the CPI from 34 OECD member countries from 2001 to 2013. As for the analysis of the variable factor for the level of trust, I made use of detailed institutional variables such as the political stability, the level of law and order, whether corruption is controlled or not, economic freedom and so on.As a result, the CPI has a positive correlation with the growth rate of the real GDP per capita in the pooled OLS and random effect panel analysis while it has a negative correlation with them in the fixed effect panel analysis, which means there are a variety of regulations to control corruption and the more members of society put even more efforts to abide by social norms, the more negative the growth rate of the real GDP per capita gets as time goes by. I think that's why almost all of advanced countries already built such enough social norms and standards that they do not play any significant role in economy. |
| Keywords: | Social capital, GDP, Economic growth, Trust, Institution |
| JEL: | O43 C23 |
| URL: | http://d.repec.org/n?u=RePEc:sek:iacpro:4106681&r=fdg |
| By: | Giovanni Caggiano (Department of Economics and Management, University of Padova; and Department of Economics, Monash University); Efrem Castelnuovo (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne; Department of Economics, The University of Melbourne; and Department of Economics and Management, University of Padova); Olivier Damette (UFR DEA Metz and BETA-CNRS, Université de Lorraine) |
| Abstract: | This paper estimates a nonlinear Threshold-VAR to investigate if a Keynesian liquidity trap due to a speculative motive was in place in the U.S. Great Depression and the recent Great Recession. We find clear evidence in favor of a breakdown of the liquidity effect after an unexpected increase in M2 in the 1921-1940 period. This evidence, which is consistent with the Keynesian view on a liquidity trap, is shown to be state contingent. In particular, it emerges only when a speculative regime identified by high realizations of the Dow Jones index is considered. A standard linear framework is shown to be ill-suited to test the hypothesis of a Keynesian liquidity trap. An investigation performed with the same data for the period 1991-2010 confirms the presence of a liquidity trap just in the speculative regime. This last result emerges significantly only when we consider the federal funds rate as the policy instrument and we model the Divisia M2 measure of liquidity. |
| Keywords: | Keynesian liquidity trap, threshold VAR, monetary and financial cliometrics, Great Depression, Great Recession |
| JEL: | B22 C52 E52 N12 N22 |
| Date: | 2016–10 |
| URL: | http://d.repec.org/n?u=RePEc:iae:iaewps:wp2016n32&r=fdg |