nep-hpe New Economics Papers
on History and Philosophy of Economics
Issue of 2022‒11‒28
five papers chosen by
Erik Thomson
University of Manitoba

  1. Survey of Non-Walrasian Disequilibrium Economic Theory By Ogawa, Shogo
  2. Jacques Rueff, Friedrich Hayek, and the Emergence of Economic Order: the Case of the European Coal and Steel Community By Vincent Carret
  3. Is the Word of a Gentleman as Good as His Tweet? Policy Communications of the Bank of England By Lamla, Michael; Vinogradov, Dmitri
  4. A Prolonged Divorce between Economists and Politicians By POP, NAPOLEON; IOAN-FRANC, VALERIU
  5. Theoretischer Beitrag zu konzerninternen Transaktionen: Postulat der Steuerplanung durch Verrechnungspreise By Marouane Bakhir; El Houssain Attak

  1. By: Ogawa, Shogo
    Abstract: In this study, we present a survey of (non-Walrasian) disequilibrium economics in which the gap between expressed demand and supply and between desired and realized transaction are allowed. We see a brief history of the disequilibrium theory and characteristics of it such as temoprary equilibria with quantity adjustment and the discontinuity of dynamics due to regime switching. We redefine the disequilibrium economics by comparing with equilibrium economics, and find that the core of it is inconsistency of transaction that is emphasized as ``dual-decision'' by Robert Clower.
    Keywords: Non-Walrasian; Disequilibrium economics; Survey; Macroeconomics; Economic Theory
    JEL: B00 C0 D5 E12
    Date: 2022
  2. By: Vincent Carret (Duke University [Durham], TRIANGLE - Triangle : action, discours, pensée politique et économique - ENS Lyon - École normale supérieure - Lyon - UL2 - Université Lumière - Lyon 2 - IEP Lyon - Sciences Po Lyon - Institut d'études politiques de Lyon - Université de Lyon - UJM - Université Jean Monnet [Saint-Étienne] - CNRS - Centre National de la Recherche Scientifique)
    Abstract: The argument of this paper is that Jacques Rueff and F.A. Hayek can be made to have a constructive dialogue that informs our understanding of how both authors approached such issues as the role of government in society and the meaning of spontaneous order. Through an analysis of their uses of the price mechanism as an ordering principle, and an examination of how they both moved towards a legal-institutional approach to understand the world, the common elements in their systems are brought out and fitted in a longer liberal tradition concerned not only with the meaning of competition, but with the conditions fostering the emergence of social order in the midst of individual chaos. Rueff's involvement in the construction of the European Coal and Steel Community gives an interesting application of their systems to a concrete experiment in creating a rational economic order in postwar Europe. The examination of the case law of the Court of Justice of the Community demonstrates how much the principle of competition was subordinate to a political ideal of peace relying on limiting governments to prevent wars, a mechanism at the center of both Hayek's and Rueff's systems.
    Keywords: Hayek,Rueff,European Coal and Steel Community,competition law,limited government
    Date: 2022–10–21
  3. By: Lamla, Michael; Vinogradov, Dmitri
    JEL: E52 E70
    Date: 2022
  4. By: POP, NAPOLEON (National Institute for Economic Research - Romanian Academy); IOAN-FRANC, VALERIU (National Institute for Economic Research - Romanian Academy)
    Abstract: The academic world says that the divorce between economists and politicians became visible during the financial crisis that began in 2008, when the economists were criticised for failing to preview the crisis, on the one hand, and, on the other hand, for the slowness in accompanying the solutions to remedy the crisis which should have been suggested by the politicians in an emergency situation, of financial collapse. The divorce itself has been lasting for a long time with the relationship deteriorating for many other reasons. In the background there is (1) an elite of Nobel prize winning economists with permanent training and inclination towards research and results worthy of consideration, and (2) a political class in a quasi-constant professional decline. It is a worrying fact, also publicly acknowledged. The 21st century, which marks the greatest technological advance of the fourth industrial revolution, started with avatars coming seemingly from nowhere. Yet, this century which began with so much hope, brings us in the face of yet another break between science and practice. The phenomenon we refer to in the current study is just a small part of what it should have been the collaboration between politicians and science in general, but the specifics of the divorce we approach in this essay is the fact that it deepens.
    Keywords: general economics, information and uncertainty, economic policies, politics and sociological system, national government policies, public policy
    JEL: A1 A11 B20 B52 H5 J18
    Date: 2022–11
  5. By: Marouane Bakhir (Laboratoire d’innovation, responsabilité et développement durable-INREED); El Houssain Attak (Laboratoire d’innovation, responsabilité et développement durable-INREED)
    Abstract: Steuerplanung durch Verrechnungspreise ist eine Folge des Phänomens der Unternehmenskonzentration. Die Transaktionen zwischen Mutter- und Tochtergesellschaften haben zu Gewinnverlagerungen in Länder geführt, in denen die Besteuerung vorteilhafter ist. Das Bestreben der multinationalen Unternehmen, die Steuerlast zu senken, ist in unserer Zeit unvermeidlich geworden. In diesem Artikel werden die verschiedenen Aspekte im Zusammenhang mit der Verwendung von Verrechnungspreisen als Mittel der Steuerplanung anhand einer Überprüfung der theoretischen Literatur analysiert. Mehrere Autoren haben sich mit dem Steuerverhalten multinationaler Unternehmen befasst. Im Jahr 1883 stellte Henry Sidgwick eine Hypothese auf, die Verrechnungspreise definiert, ohne ihnen einen Namen zu geben, indem er davon ausging, dass bestimmte Güter während des Produktionsprozesses innerhalb des Unternehmens verbraucht werden. In der Folgezeit haben die multinationalen Unternehmen den Preis dieser Güter quantifiziert, um ihre konzerninternen Transaktionen zu bewerten und sie zu einem Instrument der Steuerplanung zu machen. 1961 definierte Hoffman die Steuerplanung erstmals als die Fähigkeit eines Steuerpflichtigen, seine Aktivitäten so zu gestalten und zu organisieren, dass seine Steuerlast minimiert wird. Die Ergebnisse dieser Überprüfung der theoretischen Literatur bestätigen, dass die Verwendung von Verrechnungspreisen zu Steuerplanungszwecken eine Realität ist, die vermieden werden könnte, indem multinationale Unternehmen zur Einhaltung des Fremdvergleichsgrundsatzes angehalten werden und die Staaten zur Harmonisierung der internationalen Steuersysteme angehalten werden.
    Abstract: Tax planning through transfer pricing is a consequence of the phenomenon of corporate concentration. Indeed, transactions between parent companies and their subsidiaries havegiven rise to profit shifting to countries where taxation is more advantageous. The quest by multinationals to reduce tax burdens has become an inevitability in our era.The purpose of this article is to analyze the various aspects related to the use of transfer pricing as a means of tax planning through a review of the theoretical literature. Several authors have focused on tax behavior of multinational companies. In 1883, Henry Sidgwick put forward a hypothesis defining transfer pricing without giving ita name, assuming that certain goods are consumed during the production process within the company. Subsequently, multinationals have quantified the price of these goods in order to value their intragroup transactions and make it a tax-planning tool. In 1961, Hoffman first defined tax planning as the ability of a taxpayer to arrange and organize his activities in such a way as to minimize his tax burden. The post-Hoffman era has seen the rise of the deliberate attempt by multinational corporations to minimize their tax liability through legal, illegal or immoral means.The results of this review of the theoretical literature confirm that the use of transfer pricing for tax planning purposes is a reality that could be avoided by encouraging multinationals to respect the arm's length principle and encouraging States to harmonize international tax systems.
    Abstract: Contribution théorique aux transactions intragroupe : Postulat de la planification fiscale par le biais du prix de transfert Résumé La planification fiscale par le biais des prix de transfert est une conséquence du phénomène de concentration d'entreprises. En effet, les transactions opérées entre les sociétés mères et leurs filiales ont donné naissance à des transferts de bénéfices vers des pays où la fiscalité est plus avantageuse. La quête de minoration des charges fiscales par les multinationales est devenue à notre ère une fatalité. L'objet de cet article est d'analyser les différents aspects liés à l'usage des prix de transfert comme moyen de planification fiscale par une revue de littérature théorique. Plusieurs auteurs se sont intéressés au comportement des multinationales à l'égard de l'impôt. En 1883, Henry Sidgwick émet une hypothèse définissant les prix de transfert sans leur donner de nom, il suppose que certains biens sont consommés lors du processus de production au sein de l'entreprise. Par la suite, les multinationales ont chiffré le prix desdits biens pour valoriser leurs transactions intra-groupes et en faire un moyen de planification fiscale par excellence. En 1961, Hoffman donne une première définition à la planification fiscale comme étant la capacité du contribuable à arranger et organiser ses activités de manière à minorer sa charge d'impôt. L'ère post-Hoffman a connu l'essor de la volonté délibérée des multinationales à minorer leur charge d'impôt par l'usage de moyens légaux, illégaux ou immoraux. Les aboutissements de la présente revue de littérature théorique confirment que l'usage des prix de transfert à des fins de planification fiscale est une réalité qui pourrait être accostée par l'incitation des multinationales au respect du principe de pleine concurrence et l'incitation des États à l'harmonisation des systèmes fiscaux internationaux.
    Keywords: international tax planning,intragroup transactions,Transfer pricing,planification fiscale internationale,transactions intragroupes,transfert de bénéfices
    Date: 2022–09–30

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