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on Public Economics |
| By: | Monika Bütler; Olivia Huguenin; Federica Teppa |
| Abstract: | If individuals are unable or unwilling to borrow, a higher than desired second pillar pension capital may induce people to retire earlier than they would have in the absence of such a scheme. Individuals thus leave the workforce as soon as the retirement income is deemed sufficient and the pension plan avails withdrawal of benefits. We provide evidence using individual data from a selection of Swiss pension funds, allowing us to perfectly control for pension scheme details. Our findings suggest that affordability is a key determinant in the retirement decisions. The higher the accumulated pension capital, the earlier individuals tend to leave the workforce. |
| Keywords: | occupational pension, retirement decision, duration models |
| JEL: | D91 H31 J26 |
| Date: | 2005 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_1458&r=pbe |
| By: | Mikael Priks |
| Abstract: | Beginning in the mid-seventeenth century, England changed its system of raising revenues from tax farming, combined with the granting of monopolies, to direct collection within the government administration. Rents were then transferred from tax farmers and monopolists to the central government such that English public finances improved dramatically compared to both the old system and to its major competitor, France. We offer a theory explaining this development. In our view, a cost of tax farming is the ex-ante inefficiency due to the auction mechanism while a cost of direct collection is the ex-post monitoring cost the government incurs to prevent theft. When the monitoring cost is high the government therefore allows tax farmers to extract large rents to enhance their up-front payments. In addition, because revenues materialize late under direct collection, and since the government faces limited borrowing, a high default risk makes a system of up-front collection attractive. The results of the model are consistent with historical facts from England and France. |
| JEL: | H11 N43 |
| Date: | 2005 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_1464&r=pbe |
| By: | Jukka Pirttilä; Sanna Tenhunen |
| Abstract: | This paper analyses the optimal tax policy and public provision of private goods when individuals differ in two respects: income-earning ability and rationality. Publicly provided goods should be overprovided or subsidised, relative to the decentralised optimum, if society’s marginal valuation of them exceeds the individual valuation and if these goods help relax the self-selection constraints, formulated in a new way. Optimal marginal income tax rates are shown to differ from the standard rules if publicly provided goods and labour supply are related. |
| Keywords: | behavioral economics, optimal taxation, public provision |
| JEL: | H21 H42 |
| Date: | 2005 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_1466&r=pbe |
| By: | Torberg Falch; Marte Rønning |
| Abstract: | Evidence on teacher behavior is essential for the understanding of the performance of school systems. In this paper we utilize rich data to study the teachers’ quit decision in Norway. We distinguish between decisions to move between public schools within school districts, to another school district in the same labor market region, across labor market regions, and whether to leave public schools. The results indicate that the quit propensity to all four destinations is negatively related to student performance. The result is qualitatively independent of whether student performance is measured by exam results or teacher graduation. |
| Keywords: | teacher turnover, student achievement, family status, non-pecuniary factors |
| JEL: | H42 I29 J44 |
| Date: | 2005 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_1469&r=pbe |
| By: | Vesa Kanniainen; Seppo Kari; Jouko Ylä-Liedenpohja |
| Abstract: | Early-stage uncertainty makes the initial cost of capital greater than the expansion-stage one. Tax effects on enterprise formation, entrepreneurial effort and quality, and on capital costs are derived. For an incorporated enterprise (i) the entrepreneur’s ability threshold rises with the tax rate of the corporate form, (ii) the initial cost of capital due to a dividend tax is above the old view double-tax one, (iii) the start-up investment is not affected by undervaluation, but the discouragement engendered by dividend taxation is compensated by realization-based capital gains tax, (iv) with undervaluation, the expansion-stage cost of capital corresponds to the Johansson-Samuelson tax which is lower than the new view suggests, (v) without undervaluation, the dividend tax boosts expansion investment. |
| Keywords: | taxation of start-up enterprises |
| JEL: | H25 |
| Date: | 2005 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_1476&r=pbe |
| By: | Chang Woon Nam; Doina Maria Radulescu |
| Abstract: | Corporate tax reforms carried out in EU countries since 1980 entail lower statutory tax rates and reductions in generous tax depreciation provisions. Several countries including the UK have reduced tax rates for SMEs. This study compares incentive effects of such reforms on the SMEs’ investment decisions adopting simple present value model. Ceteris paribus tax rate and depreciation rule vary in the model simulation, while the application of historical cost accounting method in inflationary phases leads to fictitious increases in nominal net present value. Apart from the construction of international ranking, country- specific patterns of reform effects are also illustrated. |
| Keywords: | SMEs, corporate tax reform, investment decision, inflation, EU countries |
| JEL: | H25 H32 |
| Date: | 2005 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_1478&r=pbe |
| By: | Panos Hatzipanayotou; Sajal Lahiri; Michael S. Michael |
| Abstract: | We construct a two-good general equilibrium model of international trade for two small open economies where pollution from production is transmitted across borders. Governments in both countries impose emission taxes non-cooperatively. Within this framework, we examine the effect of trade liberalization and of changes in the perception of cross-border pollution on Nash emission taxes, emission levels, and welfare. |
| Keywords: | cross-border pollution, emission taxes, terms of trade, globalization, welfare |
| JEL: | H23 Q28 |
| Date: | 2005 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_1479&r=pbe |
| By: | Harrie A. A Verbon; Cees A. Withagen |
| Abstract: | A system of tradable permits in the standard setting is effective in attaining the policy objective with regard to pollution reduction at the least cost. This outcome is challenged in case of a tradable permit system in a federal state with individual states having discretionary power regarding environmental policy and where pollution is transboundary across states. This paper explores the opportunities of the central authority to influence the effectiveness of the system, under different institutional arrangements, through the initial allocation of permits. |
| Keywords: | tradable permits, trade bans, fiscal federalism |
| JEL: | H21 H23 Q00 |
| Date: | 2005 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_1482&r=pbe |
| By: | Ondrej Schneider; Jan Zápal |
| Abstract: | The European Union (EU) accepted ten new member states (NMS) in 2004. These countries, mostly former socialist countries, have had to adjust their economic policies to the EU’s standards. Perhaps most difficult has proven to be fiscal policy whereby NMS must comply with the Stability and Growth Pact (SGP) rules. Indeed, six out of the ten NMS have breached the SGP limits and were put in Excessive Deficit Procedure (EDP). While the SGP is being modified, fiscal policy is set to remain on the agenda for all NMS in years to come. In this paper, we analyze fiscal policy in the NMS, focusing primarily on the time period that immediately preceded their EU accession. We analyse the structure and scale of these countries’ fiscal policy and identify main trends in revenues and expenditures of their public budgets. We then explore dynamics of fiscal policy in the new member states and isolate main factors of the dynamics. Namely, we show how much of the consolidations was due to the fiscal authorities’ effort and how much was caused by external factors. We also show that most NMS governments have run a rather inconsistent fiscal policy and have not consolidated their budgets appropriately by postponing politically difficult consolidation measures. However, we also identify a group of countries characterised by strong reform efforts and responsible fiscal policy-making, supported usually by strong economic growth. In this context, room is given to economic, as well as political economy factors. |
| Keywords: | fiscal policy, new member states, consolidations, Stability and Growth Pact, Excessive Deficit Procedure, growth accounting, probit analysis |
| JEL: | E60 E62 H20 H60 H87 |
| Date: | 2005 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_1486&r=pbe |
| By: | Johannes Becker; Clemens Fuest |
| Abstract: | A widespread objection to the introduction of consumption tax systems claims that this would lead to high tax revenue losses. This paper investigates the revenue effects of a consumption tax reform in Germany. Our results suggest that the revenue losses would be surprisingly low. We find a maximum revenue loss of 1.6 percent of annual GDP. In some years, we even find a tax revenue gain. This implies that the current tax system collects little revenue from taxing the normal return to capital. Based on these results, we calculate a macroeconomic measure of the effective tax rate on capital income. |
| Keywords: | cash flow tax, tax revenue effects, effective taxation of capital income |
| JEL: | H21 H25 |
| Date: | 2005 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_1489&r=pbe |
| By: | Bernd Huber; Marco Runkel |
| Abstract: | Empirical evidence from the U.S. and the European Union suggests that regions which contribute to interregional redistribution face weaker borrowing constraints than regions which benefit from interregional redistribution. This paper presents an argument in favor of such differentiated budgetary institutions. It develops a two-period model of a federation consisting of two types of regions. The federal government redistributes from one type of regions (contributors) to the other type (recipients). It is shown that a fiscal constitution with lax budget rules for contributors and strict budget rules for recipients solves the self-selection problem the federal government faces in the presence of asymmetric information regarding exogenous characteristics of the regions. |
| Keywords: | asymmetric information, interregional redistribution, borrowing rules |
| JEL: | D82 H74 H77 |
| Date: | 2005 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_1491&r=pbe |
| By: | Martín Gonzalez-Eiras; Dirk Niepelt |
| Abstract: | This paper analyzes the sustainability of intergenerational transfers in politico-economic equilibrium. Embedding electoral competition for the votes of old and young households in the standard Diamond (1965) OLG model, we find that intergenerational transfers naturally arise in a Markov perfect equilibrium, even in the absence of altruism, commitment, or trigger strategies. Not internalizing the negative effects of transfers for future generations, the political process partially resolves the distributive conflict between old and young voters by shifting some of the cost of social security to the unborn. As a consequence, transfers in politico-economic equilibrium are higher than what is socially optimal. Standard functional form assumptions yield closed-form solutions for the politico-economic equilibrium as well as the equilibrium supported by the Ramsey policy. The model predicts population ageing to lead to larger social security systems, but eventually lower benefits per retiree. Under realistic parameter values, it predicts a social-security tax rate close to the actual one, but higher than the Ramsey tax rate. Closed-form solutions for the case with endogenous labor supply, tax distortions, and multiple policy instruments prove the results to be robust. |
| Keywords: | social security, intergenerational transfers, probabilistic voting, Markov perfect equilibrium, saving, labor supply |
| JEL: | E62 H55 |
| Date: | 2005 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_1494&r=pbe |
| By: | Alfons Weichenrieder |
| Abstract: | Tax rates on corporate income have considerably come down in the process of tax competition and further pressures are evident. Against this background, the paper discusses possible benefits of corporate income taxation that may be at risk. In particular, the paper surveys the empirical evidence for a backstop function of the corporate income tax that allows preserving individual taxes. |
| Keywords: | tax competition, corporate taxation |
| JEL: | H25 |
| Date: | 2005 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_1495&r=pbe |
| By: | Paolo Panteghini |
| Abstract: | This article studies the characteristics of a S-based tax system under default risk. In particular we show that its neutrality properties depend on whether debt is protected or unprotected. In the former case, this system is neutral. In the latter case, where default timing is optimally chosen by shareholders, the S-based system is neutral with respect to real decisions only if the firm’s and the lender’s tax rate are equal. However, the shareholders’ decision to default is always distorted. |
| Keywords: | capital structure, corporate taxation, neutrality, option pricing |
| JEL: | H25 H32 |
| Date: | 2005 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_1496&r=pbe |
| By: | Panos Hatzipanayotou; Michael S. Michael |
| Abstract: | In this paper we highlight aspects related to the links between international migration, foreign tied aid and the welfare state. We model migration as a costly movement from an aid-recipient developing country with low income, poor infrastructure, and no welfare system, towards a rich donor, developed country with a well-developed welfare system. Within this model we find, among other things, that the best response of the developed donor country is to increase aid as the co-financing rate by the recipient country increases. When the immigration cost decreases, e.g. due to greater economic integration between the two countries, it is beneficial for the donor country to increase aid. |
| Keywords: | migration, tied foreign aid, welfare state |
| JEL: | F22 F35 H23 |
| Date: | 2005 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_1497&r=pbe |
| By: | Petr Hedbávný; Ondrej Schneider; Jan Zápal |
| Abstract: | In this paper, we set out to examine an efficient fiscal-policy framework for a monetary union. We illustrate that fiscal policy’s bias toward budget deficit only temporarily ceased at the end of the 20th century as European countries endeavored to qualify for euro-zone membership, which compelled strict limits on budgetary deficits. We then explore which mechanisms might instill a sense of fiscal disciple in governments. We find that most mechanisms suffer from the incentive-incompatible setup whereby governments restrict their own fiscal-policy freedom. We argue that even multilateral fiscal rules, such as the EU’s Stability and Growth Pact, suffer from the same endogeneity flaw. Consequently, we argue that a fiscal rule must incorporate an external authority that would impartially assess fiscal-policy developments. Using U.S. debt and bond-market data at the state level, we show that financial markets represent a good candidate as, vis-à-vis the American states, they do differentiate state debt according to the level of debt. We thus argue for a fiscal institution––what we call the Fiscal Sustainability Council––that would actively bring financial markets into the fiscal-policy process, and we explain the technique whereby this could be effected. |
| Keywords: | fiscal policy, European Union, sustainability |
| JEL: | E60 H60 H87 |
| Date: | 2005 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_1499&r=pbe |
| By: | Heikki Oksanen |
| Abstract: | In welfare states, collective saving has declined to a persistently negative level, while reduced fertility and increasing longevity are leading to increasing pension liabilities. Actuarial neutrality across generations is presented as a benchmark for designing pension reforms to meet the challenges of population ageing. It is shown that this condition can be respected by a wide range of pension reforms, with very different consequences for public finance target setting. The rules for public pensions in national accounting are also discussed. Finally, the combined effects of population ageing and public pension rules on national saving are discussed. |
| Keywords: | pensions, actuarial neutrality, public debt, national accounts |
| JEL: | H10 H50 H60 |
| Date: | 2005 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_1501&r=pbe |
| By: | Rainer Niemann; Corinna Treisch |
| Abstract: | In 2005, Austria modified its group taxation regime and now provides an option for cross-border loss-offset. We analyse the combined impact of Austria's new group taxation and loss-offset limitations on cross-border investment decisions of domestic corporations. Monte Carlo simulations in an inter-temporal setting reveal that the impact on foreign real investment induced by the new group taxation is ambiguous. Whereas marginal investment projects with decreasing cash flows tend to benefit from group taxation, innovative projects with initial losses and increasing cash flows may be discriminated against. Investors should consider domestic income and repatriation policy simultaneously before opting for group taxation. |
| Keywords: | group taxation, investment decisions, Monte Carlo simulations, international taxation, loss-offset rules |
| JEL: | G31 H25 |
| Date: | 2005 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_1506&r=pbe |
| By: | Jean Hindriks; Benjamin Lockwood |
| Abstract: | This paper studies the relationship between fiscal decentralization and electoral accountability, by analyzing how decentralization impacts upon incentive and selection effects, and thus on voter welfare. The model abstracts from features such as public good spillovers or economies of scale, so that absent elections, voters are indifferent about the fiscal regime. The effect of fiscal centralization on voter welfare works through two channels: (i) via its effect on the probability of pooling by the bad incumbent; (ii) conditional on the probability of pooling, the extent to which, with centralization, the incumbent can divert rents in some regions without this being detected by voters in other regions (selective rent diversion). Both these effects depend on the information structure: whether voters only observe fiscal policy in their own region, in all regions, or an intermediate case with a uniform tax across all regions. More voter information does not necessarily raise voter welfare, and under some conditions, voters would choose uniform over differentiated taxes ex ante to constrain selective rent diversion. |
| JEL: | D72 D73 H41 |
| Date: | 2005 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_1509&r=pbe |
| By: | Christian Keuschnigg; Martin D. Dietz |
| Abstract: | This paper proposes a growth-oriented dual-income tax by combining an allowance for corporate equity with a broadly defined flat tax on personal capital income. Revenue losses are compensated by an increase in the value added tax. The paper demonstrates the neutrality properties of the reform with respect to investment, firm financial decisions and organizational choice. Tax rates are chosen to prevent income shifting from labor to capital income. The reform decisively strengthens investment of domestically owned firms as well as home and foreign based multinationals and boosts savings. Simulations with a calibrated growth model for Switzerland indicate that the reform could add between 2 to 3 percent of GDP in the long run, depending on the specific scenario. Given the slow nature of capital accumulation, it also imposes considerable costs in the short run. We also consider a tax smoothing scenario to offset the intergenerationally redistributive effects. |
| Keywords: | tax reform, investment, financial structure, growth |
| JEL: | D58 D92 E62 G32 H25 |
| Date: | 2005 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_1513&r=pbe |
| By: | Machiel van Dijk; Richard Nahuis; Daniël Waagmeester |
| Abstract: | The media landscape is subject to substantial technological change. In this Discussion Paper, we analyse how technological trends affect the economic rationale for PSB. After identifying the aims and nature of PSB, we derive eight possible market failures from the specific economic characteristics of information. The changing relevance of these market failures is subsequently discussed in the light of the technological changes. Based on this analysis, we argue that public service broadcasting (PSB) for the digital age should be light in the sense that it has a much smaller mandate. The main reason for this conclusion is that, due to technological developments, many market failures in the broadcasting industry are no longer relevant. The broadcasting market thus functions more and more like a normal market. This implies that the allocation tends to the efficient outcome, as long as consumer valuation is properly accounted for. This is not the case when there are externalities and possibly not when it comes to valuing quality. In the presence of these market failures, an efficient allocation is not warranted in the broadcasting industry. It is these remaining market failures that give a future PSB a right to exist. |
| Keywords: | Media; media policy; public service broadcasting; market failure |
| JEL: | L3 H4 |
| URL: | http://d.repec.org/n?u=RePEc:cpb:discus:43&r=pbe |
| By: | Gerard Verweij; Willemien Kets |
| Abstract: | Under the Kyoto Protocol, a group of countries commit themselves to reduce the emissions of greenhouse gases to some 5% below the 1990 level. Countries can decide to spread their reduction commitment over several gases to lower compliance costs. Employing a multi-gas strategy can offer considerable efficiency gains because of the widely diverging marginal abatement cost for the different emission sources. In this Discussion Paper, the analysis of climate policy for the most important greenhouse gas, carbon dioxide, is extended with two other important greenhouse gases, methane and nitrous oxide. The multi-region and multi-sector Applied General Equilibrium model WorldScan has been used as an instrument for addressing this issue. The approach presented is consistent with the bottom-up information on reduction possibilities for those non-CO2 greenhouse gases while it allows for general equilibrium effects and intergas interactions. Including non-CO2 greenhouse gases into the analysis has important sectoral impacts while the regional effects are limited. A considerable part of the burden on gas, coal and oil products will be shifted to the agricultural sectors. Reductions of non-CO2 gases could be especially important for countries like China and India. |
| Keywords: | Climate policy; non-CO2 gases; Applied General Equilibrium Model |
| JEL: | Q56 H23 F18 |
| URL: | http://d.repec.org/n?u=RePEc:cpb:discus:44&r=pbe |
| By: | Annemiek van VUren; Daniël van Vuuren |
| Abstract: | In this paper, we assess the impact of financial incentives on the inflow in the public Disability Insurance (DI) scheme in the Netherlands. For this matter, the variation in replacement rates over different sectors is exploited to estimate the probability of DI enrolment over a sample of employees from the Dutch Income Panel (1996-2000). On the basis of these administrative data, we find a point estimate of the elasticity of DI enrolment with respect to the DI wealth rate of 2.5. |
| Keywords: | Disability Insurance; financial incentives; moral hazard |
| JEL: | C25 C81 H3 J6 |
| URL: | http://d.repec.org/n?u=RePEc:cpb:discus:45&r=pbe |
| By: | Vlachos, Jonas |
| Abstract: | It has been argued that the public sector is an insurance against otherwise uninsurable risks. If that is the case, it is reasonable to expect the public sector to be larger in regions where the private labour-market is risky. Using data from Swedish municipalities, this paper reports that labour-market risk has a substantial impact on public employment. The results for aggregate spending and taxation are, however, much weaker and labor-market risk thus affects the labour intensity of the municipal public sector. |
| Keywords: | labour market risk; panel data; public employment; public sector size |
| JEL: | C23 H11 H40 J45 |
| Date: | 2005–06 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:5091&r=pbe |
| By: | Casella, Alessandra; Gelman, Andrew |
| Abstract: | This paper proposes a simple scheme designed to elicit and reward intensity of preferences in referenda: voters faced with a number of binary proposals are given one regular vote for each proposal plus an additional number of bonus votes to cast as desired. Decisions are taken according to the majority of votes cast. In our base case, where there is no systematic difference between proposals’ supporters and opponents, there is always a positive number of bonus votes such that ex ante utility is increased by the scheme, relative to simple majority voting. When the distributions of valuations of supporters and opponents differ, the improvement in efficiency is guaranteed only if the distributions can be ranked according to first order stochastic dominance. If they are, however, the existence of welfare gains is independent of the exact number of bonus votes. |
| Keywords: | majority voting; referenda; voting mechanisms |
| JEL: | D70 H10 K19 |
| Date: | 2005–06 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:5093&r=pbe |
| By: | Haimanko, Ori; Le Breton, Michel; Weber, Shlomo |
| Abstract: | In this paper we introduce the notion of stability threshold that quantifies the minimal returns to size sufficient to prevent credible secession threats by regions of the country. Severity of internal tension has been linked to degree of polarization of citizens' preferences and characteristics. We show that the increasing degree of polarization does not, in general, raise the stability threshold, even though this hypothesis holds in some asymptotic sense. Thus, somewhat counter-intuitively, the relation between polarization and the stability threshold is ambiguous. We also examine the question of the number of smaller countries to be created if the unity of the large country is not sustainable, and investigate the link between this number and the degree of the country polarization. We find that the stable number of countries also behaves non-monotonically with respect to polarization indices. However, monotonicity does emerge when the stable number is large, and the stable number decreases when polarization rises. |
| Keywords: | clusters; polarization; secession; stability threshold |
| JEL: | D70 D73 H20 |
| Date: | 2005–06 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:5098&r=pbe |
| By: | Favero, Carlo A |
| Abstract: | Consumption is striking back. Some recent evidence indicates that the well-known asset pricing puzzles generated by the difficulties of matching fluctuations in asset prices with high frequency fluctuations in consumption might be solved by considering consumption in the long-run. A first strand of the literature concentrates on multiperiod differences in log consumption, a second concentrates on the cointegrating relation for consumption. Interestingly, only the (multiperiod) Euler Equation for the consumer optimization problem is considered by the first strand of the literature, while the cointegration-based literature concentrates exclusively on the (linearized) intertemporal budget constraint. In this paper, we show that using the first order condition in the linearized budget constraint to derive an explicit long-run consumption function delivers an even more striking strike back. |
| Keywords: | cointegrating consumption function; elasticity of intertemporal substitution; long-run stock market returns |
| JEL: | E20 E44 G12 |
| Date: | 2005–06 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:5110&r=pbe |
| By: | Desmet, Klaus; Ortuño-Ortín, Ignacio; Weber, Shlomo |
| Abstract: | This paper investigates the effect of ethnolinguistic conflict on redistribution. The analysis focuses on the conflict arising between ‘peripheral’ minority groups and a dominant ‘centre’. We propose an index of linguistic conflict that (i) encompasses both diversity and polarization, and (ii) accounts for the distance between languages. Our results suggest that linguistic diversity is a better predictor of redistribution than linguistic polarization. We also find that incorporating linguistic distances improves the predictive power of our conclusions. |
| Keywords: | linguistic diversity; polarization; redistribution |
| JEL: | D60 D74 H50 Z10 |
| Date: | 2005–06 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:5112&r=pbe |
| By: | Manacorda, Marco; Moretti, Enrico |
| Abstract: | More than 80% of Italian men aged 18-30 live with their parents. We argue that one contributing factor to this remarkably high rate of cohabitation is parents’ tastes for co-residence. In order to investigate the role of parental preferences, we estimate the effect of exogenous changes in parental income on rates of cohabitation in Italy using SHIW micro-data from 1989 to 2000. The key econometric issue is the potential endogeneity of parental income. In order to identify a source of exogenous variation in parental income, we use changes in fathers’ retirement age induced by the 1992 reform of the Italian Social Security system as an instrumental variable for parental income. By raising retirement age, this reform forced some fathers to remain in the labour market longer than they would have otherwise, therefore raising their disposable income. We use a two-sample instrumental variable (TSIV) strategy. Our TSIV estimates indicate that a rise in parents’ income significantly raises the children’s propensity to live at home: a 10% increase in annual parental income results in approximately a 10% rise in the proportion of boys living with their parents. Although we cannot definitely rule out alternative interpretations, these results are consistent with our hypothesis that cohabitation is a normal good for Italian parents. |
| Keywords: | family structure; living arrangements; two-sample IV |
| JEL: | H55 J12 J61 |
| Date: | 2005–06 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:5116&r=pbe |
| By: | Hindricks, Jean; Lockwood, Ben |
| Abstract: | This paper studies the relationship between fiscal decentralization and electoral accountability, by analysing how decentralization impacts upon incentive and selection effects, and thus on voter welfare. The model abstracts from features such as public good spillovers or economies of scale, so that absent elections, voters are indifferent about the fiscal regime. The effect of fiscal centralization on voter welfare works through two channels: (i) via its effect on the probability of pooling by the bad incumbent; (ii) conditional on the probability of pooling, the extent to which, with centralization, the incumbent can divert rents in some regions without this being detected by voters in other regions (selective rent diversion). Both these effects depend on the information structure; whether voters only observe fiscal policy in their own region, in all regions, or an intermediate case with a uniform tax across all regions. More voter information does not necessarily raise voter welfare, and under some conditions, voter would choose uniform over differentiated taxes ex ante to constrain selective rent diversion. |
| Keywords: | accountability; Elections; fiscal decentralization |
| JEL: | D72 D73 H41 |
| Date: | 2005–07 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:5125&r=pbe |
| By: | Besley, Timothy; Persson, Torsten; Sturm, Daniel |
| Abstract: | One of the most cherished propositions in economics is that market competition by and large raises consumer welfare. But whether political competition has similarly virtuous consequences is far less discussed. This paper formulates a model to explain why political competition may enhance economic performance and uses the United States as a testing ground for the model's implications. It finds statistically robust evidence that political competition has quantitatively important effects on state income growth, state policies, and the quality of Governors. |
| Keywords: | economic growth; political competition; US south; voting restrictions |
| JEL: | D72 H11 H70 N12 O11 |
| Date: | 2005–07 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:5138&r=pbe |
| By: | Cerny, Ales; Miles, David K; Schmidt, Lubomir |
| Abstract: | Using a calibrated OLG model with several sources of uncertainty we find that the impact of ageing and of reform of social security upon the demand for housing and the level of owner occupation is substantial. The overall structure of household asset holdings – in particular the split between real and financial assets – is sensitive to demographics and to the generosity of state run, pay-as-you-go pensions. The interaction between social security reform and housing market conditions is significant and suggests that any changes in pension rules will have substantial knock on effects on the housing market. |
| Keywords: | housing; OLG model; pension reform; portfolio allocation |
| JEL: | C61 G11 H31 H55 |
| Date: | 2005–07 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:5143&r=pbe |
| By: | Francois, Patrick |
| Abstract: | Despite the potential for free-riding, workers motivated by ‘making a difference’ to the mission or output of an establishment may donate labour to it. When the establishment uses performance related compensation (PRC), these labour donations closely resemble a standard private provision of public goods problem, and are not rational in large labour pools. Without PRC, however, the problem differs significantly from a standard private provision of public goods situation. Specifically, in equilibrium: there need not be free-riding, decisions are non-monotonic in valuations, and contribution incentives are significant even in large populations. When PRC is not used, the establishment tends to favour setting low wages which help to select a labour force driven by concern for the firm’s output. Expected output can actually fall with the wage in this situation. For sufficiently high levels of risk aversion, performance related pay can yield less expected output than when compensation is output independent. |
| Keywords: | incentive schemes; privately provided public goods; public sector employment; voluntarism |
| JEL: | H11 H41 H83 J45 |
| Date: | 2005–07 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:5158&r=pbe |
| By: | Luca, SPINESI |
| Abstract: | Some empirical works from the nineties have shown the existence of a negative relationship between inequality and growth. In this paper I show that the inefficiency of the Public Sector due to agency problems can be a new element that must e considered to explain the negative empirical relationship between inequality and growth. Considering a neo-Schumpeterian endogenous growth model, I envisage the relationship between rent-seeking bureaucracies and both the private market and political authority. I show that the inefficiency of the Public Sector can contribute to widening income inequality and reducing the per-capita output growth rate because of the skills waste in oversight of rent-seeking bureaucracies. Therefore bureaucratic quality can contribute to explaining the long-run negative relationship between inequality and growth. I show that these effects operates mostly in developed countries, where human capital accumulation and technological progress are fundamental engines for growth. Moreover, I show that more costly oversight reduces the consume of each existing product. |
| Keywords: | technological progress; inequality and growth; asymmetric information; rent-seeking bureaucracies |
| JEL: | D31 D82 H42 O30 |
| Date: | 2005–02–15 |
| URL: | http://d.repec.org/n?u=RePEc:ctl:louvec:2005027&r=pbe |
| By: | Daniel Brou; Michele Ruta |
| Abstract: | Models of international unions suggest that large and rich countries reap little economic benefits from political integration with smaller and poorer countries. This paper challenges this view by presenting a formal study of economic influence by special interest groups in an international union. We first show that countries where more groups are organized to lobby gain from political integration on economic grounds. The reason is that a more organized country, under a political union, can affect policies in the other country to its advantage, something that a less organized country can do to a lesser extent. We then argue that richer countries will tend to have more organized interest groups before political integration and show that this will continue to be the case afterward. Hence, the model implies that there are costs and benefits of EU Enlargement to Eastern Europe in addition to those suggested by the existing literature. |
| Keywords: | Lobbying, Public Goods, International Unions, European Enlargement |
| JEL: | D72 F02 H41 |
| Date: | 2004 |
| URL: | http://d.repec.org/n?u=RePEc:eui:euiwps:eco2004/30&r=pbe |
| By: | Pascal Courty; Gerald Marschke |
| Abstract: | An important lesson from the incentive literature is that explicit incentives may elicit dysfunctional and unintended responses, also known as gaming responses. The existence of these responses, however, is difficult to demonstrate in practice because this behavior is typically hidden from the researcher. We present a simple model showing that one can identify gaming by estimating the correlation between a performance measure and the true goal of the organization before and after the measure has been activated. Our hypothesis is that gaming takes place if this correlation decreases with activation. Using data from a public sector organization, we find evidence consistent with our hypothesis. We draw implications for the selection of performance measures. |
| Keywords: | Performance Incentive, Performance Measurement, Gaming, Multitasking, Government Organization |
| JEL: | H72 J33 L14 |
| Date: | 2004 |
| URL: | http://d.repec.org/n?u=RePEc:eui:euiwps:eco2004/33&r=pbe |
| By: | Philippe Thalmann |
| Abstract: | Equity and neutrality are distinct concepts in housing taxation and weak and strong tenure neutrality should be distinguished. When a tax system is tested for those criteria, the taxes paid by landlords must be included, as they affect the rents renters pay. This paper defines appropriate tests, applies them to a stylised tax system and simulates tax changes designed to restore equity and/or neutrality. It shows how the homeowner's implicit income should be computed for taxes to be fundamentally tenure neutral or equitable or both. And it shows the key role played by the differential in producing housing services under owner-occupation and renting. |
| Keywords: | Housing taxation; tenure choice; tax equity; tax neutrality |
| JEL: | R21 R31 H21 |
| Date: | 2005–06 |
| URL: | http://d.repec.org/n?u=RePEc:fam:rpseri:rp147&r=pbe |
| By: | Valentina Bosetti (Fondazione Eni Enrico Mattei); Laurent Gilotte (CIRED) |
| Abstract: | One of the main issues in the climate policy agenda, the timing of abatement efforts, hinges on the uncertainties of climate change risks and technological evolution. We use a stochastic optimization framework and jointly explore these two features. First, we embed in the model future potential large-scale availability of Carbon Capture and Storage (CCS) technologies. While non-CCS mitigation that reduces fossil energy use is modelled as exerting inertia on the economic system, mainly due to the durability of the capital in energy systems and to technology lock-in and lock-out phenomena, the implementation of CCS technologies is modelled as implying less resilience of the system to changes in policy directions. Second, climate uncertainty is related in the model to the atmospheric temperature response to an increase in GHGs concentration. Performing different simulation experiments, we find that the environmental target, derived from a cost-benefit analysis, should be more ambitious when CCS is included in the picture. Moreover, the possible future availability of CCS is not a reason to significantly reduce near-term optimal abatement efforts. Finally, the availability of better information on the climate cycle is in general more valuable than better information on the CCS technological option. |
| Keywords: | Climate change, Uncertainty, Sequestration, Cost-benefit analysis |
| JEL: | D62 D63 H23 Q29 |
| Date: | 2005–06 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2005.86&r=pbe |
| By: | Vincent M. Otto (Wageningen University); Andreas Löschel (Centre for European Economic Research (ZEW)); Rob Dellink (Wageningen University) |
| Abstract: | This paper studies energy bias in technical change. For this purpose, we develop a computable general equilibrium model that builds on endogenous growth models. The model explicitly captures links between energy, the rate and direction of technical change, and the economy. We derive the equilibrium determinants of biased technical change and show the importance of feedback in technical change, substitution possibilities between final goods, and general-equilibrium effects for the equilibrium bias. If the feedback effect is strong, or the substitution elasticity large, or both, our model tends to a corner solution in which only technologies are developed that are appropriate for production of non-energy intensive goods. |
| Keywords: | Computable general-equilibrium models, Endogenous technical change, Energy, Environment |
| JEL: | O32 O33 O38 H23 D58 |
| Date: | 2005–06 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2005.90&r=pbe |
| By: | Richard Blundell (Institute for Fiscal Studies and University College London); Mike Brewer (Institute for Fiscal Studies); Marco Francesconi (Institute for Fiscal Studies and ISER, Essex University) |
| Abstract: | This study uses the first twelve waves of the British Household Panel Survey covering the period 1991-2002 to investigate the extent of constraints on desired hours of work within jobs and the degree of flexibility of the labour market for a sample of women. Our main findings are as follows. First, the largest movements in hours worked are observed for workers who change their jobs. Second, about 40 percent of the women in the sample are not putting in the hours they would like. Most of them (mainly full-timers) would like to work fewer hours at the prevailing hourly wage. Again, women who change job experience the greatest hours changes, especially if they are over- or under-employed. Third, there is evidence of hours constraints. The hours movements among quitters are up to 5 hours greater than the movements among stayers. Fourth, we do not detect systematic time trends in the relationship between hours changes and job changes. But there is some evidence that overemployed women find it increasingly more difficult to move towards their desired hours even after changing job. Fifth, the evidence on a flexible labour market is mixed. We find only partial support for the hypothesis that overemployed or underemployed quitters receive compensating wage differentials if the new job does not satisfy their hours preferences, as well as for the hypothesis that quitters get a wage premium when they end up moving to jobs that constraint their desired hours. |
| Keywords: | Job mobility; Hours constraints; Labour supply preferences; Hours-wage trade-off; Part-time employment. |
| JEL: | C23 H31 I38 J12 J13 J22 |
| Date: | 2005–07 |
| URL: | http://d.repec.org/n?u=RePEc:ifs:ifsewp:05/12&r=pbe |
| By: | Stuart Adam (Institute for Fiscal Studies) |
| Abstract: | This paper estimates the marginal efficiency cost of redistribution (MECR) associated with a demogrant and an in-work benefit for the UK since 1979, taking account of extensive as well as intensive labour supply responses. The principal methodological advance in the paper is its greater allowance for heterogeneity in the population than previous work. The rate of tax on consumption expenditure is allowed to vary across households and overall tax rates are allowed to vary across all individuals in all years, using a microsimulation methodology for the calculations. This disaggregation makes a substantial difference to the results. The central finding of the paper is that the MECR is much lower for the in-work benefit policy than the demogrant. The efficiency loss associated with a marginal in-work benefit has consistently been low (and occasionally negative): even at its current 25-year high, the policy would cost losers only £1.30 per pound that the gainers gained. By contrast, losers from a demogrant would currently lose £4.30 per pound that gainers received, higher than at other times over the last 15 years but still well short of the peak of £8.02 seen in 1981. Although precise estimates are highly sensitive to the overall levels of tax rates and elasticities, and also to the composition of the overall labour supply elasticity, the principal finding of a stark contrast between the two policies is robust. The paper also examines the effect of redistribution within family types. The inwork benefit policy looks even more favourable if paid to (and financed by) only singles; it looks less favourable if implemented only for childless couples. Increasing in-work benefits and/or cutting tax rates for lone parents have provided opportunities for Pareto-improving reforms to the tax and benefit system for most of the period since 1979. |
| Keywords: | Redistribution, efficiency, optimal taxation, labour supply, extensive margin, tax rates |
| JEL: | H21 H23 D61 D63 H31 |
| Date: | 2005–07 |
| URL: | http://d.repec.org/n?u=RePEc:ifs:ifsewp:05/14&r=pbe |
| By: | Vineetha Menon (Centre for Development Studies); Antonyto Paul (Centre for Development Studies); K.N. Nair (Centre for Development Studies) |
| Abstract: | Based on field work in a village panchayat in Kerala, analyzing the complex issues concerning the development and working of irrigation institutions, the present study reveals that successful management of irrigation is contingent upon the level of participation of the water users in the management. By comparing irrigation institutions under different property rights, the study identifies the significant factors that contribute to the success and sustainability of irrigation institutions. It is found that albeit the physical characteristics of irrigation systems and the heterogeneities of the members of the user groups do impact the outcome, it is the institutional environment as reflected in the presence of clear as well as flexible systems of rules and regulations, enforcement mechanisms, nesting and networking of such institutions etc. that have become the most crucial determinants. For this, presence of able and fair leadership and the manoeuvring of various sources of power are found to be essential. |
| Keywords: | irrigation, institutions, water management, irrigation organisations, sustainability |
| JEL: | D7 H4 Q15 Q25 |
| Date: | 2005–02 |
| URL: | http://d.repec.org/n?u=RePEc:ind:cdswpp:367&r=pbe |
| By: | Indrani Roy Chowdhury (National Institute of Public Finance and Policy) |
| Abstract: | We examine the impact of abatement taxes on the pollution level in a duopoly framework with endogenous market structure. We demonstrate that an increase in abatement taxes could trigger a regime-switch from joint ventures to Cournot competition, causing the pollution level to increase. Moreover, abatement taxes can implement the first best outcome if and only if the industry is not too polluting. In case it is, the second best level of taxes may or may not equal the optimal tax under either joint venture, or Cournot competition. |
| Keywords: | Joint ventures, pollution, abatement tax, endogenous market structure |
| JEL: | H23 L13 |
| Date: | 2005–05 |
| URL: | http://d.repec.org/n?u=RePEc:ind:nipfwp:31&r=pbe |
| By: | Hans Gersbach (University of Heidelberg, CEPR and IZA Bonn); Lars Siemers (University of Heidelberg) |
| Abstract: | We examine whether democratic societies can escape poverty traps. Unrestricted agenda setting with simple majority rules fail to educate a society, because education-enhancing redistribution will not occur. We show that a combination of suitable constitutional rules overcomes this impossibility result: rotating agenda setting and agenda repetition in combination with flexible majority rules or with a tax protection rule. |
| Keywords: | constitutional design, claims on deductions, flexible majority rules, agenda repetition, poverty traps, child labor |
| JEL: | D72 H20 H52 I20 O10 O40 |
| Date: | 2005–07 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp1693&r=pbe |
| By: | Roland Bénabou (Princeton University, CEPR, NBER and IZA Bonn); Jean Tirole (Institut d’Economie Industrielle (IDEI), GREMAQ, CERAS and MIT) |
| Abstract: | We develop a theory of prosocial behavior that combines heterogeneity in individual altruism and greed with concerns for social reputation or self-respect. Rewards or punishments (whether material or image-related) create doubt about the true motive for which good deeds are performed and this "overjustification effect" can induce a partial or even net crowding out of prosocial behavior by extrinsic incentives. We also identify settings that are conducive to multiple social norms and those where disclosing one’s generosity may backfire. Finally, we analyze the choice by public and private sponsors of incentive levels, their degree of confidentiality and the publicity given to agents’ behavior. Sponsor competition is shown to potentially reduce social welfare. |
| Keywords: | altruism, rewards, motivation, esteem, crowding out, overjustification effect, identity, social norms, morals, greed, psychology |
| JEL: | D64 D82 H41 Z13 |
| Date: | 2005–07 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp1695&r=pbe |
| By: | Jeffrey Carpenter (Middlebury College and IZA Bonn); Erika Seki (University of Aberdeen) |
| Abstract: | We provide a reason for the wider economics profession to take social preferences, a concern for the outcomes achieved by other reference agents, seriously. Although we show that student measures of social preference elicited in an experiment have little external validity when compared to measures obtained from a field experiment with a population of participants who face a social dilemma in their daily lives (i.e., team production), we do find strong links between the social preferences of our field participants and their productivity at work. We also find that the stock of social preferences evolves endogeously with respect to how widely team production is utilized. |
| Keywords: | field experiment, social preference, income pooling, productivity |
| JEL: | C93 D21 D24 H41 J24 M52 M54 Z13 |
| Date: | 2005–07 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp1697&r=pbe |
| By: | Thomas Barnebeck Andersen (Department of Economics, University of Copenhagen); John Rand (Department of Economics, University of Copenhagen) |
| Abstract: | This paper explores the empirical association between internet use, e-government and corruption in a large panel of countries covering the 1998-2003 period. We show that higher numbers of internet users and higher levels of e-government are associated with significantly lower levels of corruption. Controlling for most variables used in previous work on corruption and addressing the endogeneity issue, results are shown to be robust and to carry economic significance. This leads us to conclude that well-designed ICT policies are likely to bring substantial benefits in the fight against corruption. |
| Keywords: | corruption; ICT; internet; e-government |
| JEL: | D73 H11 O1 O57 |
| Date: | 2005–07 |
| URL: | http://d.repec.org/n?u=RePEc:kud:kuiedp:0510&r=pbe |
| By: | Sanjit Dhami; Ali al-Nowaihi |
| Abstract: | We focus on an “equilibrium analysis” of coordination problems in giving that lead to multiple equilibria; the notion of strategic complements and substitutes turns out to be useful in this regard. Some societies can get stuck at a low level of giving while others might, by accident or policy, be able to coordinate on a higher level of giving. Ceteris-paribus, this furnishes one plausible reason for heterogeneity in philanthropy. We give conditions under which tax exemptions to private giving can have perverse effects by reducing equilibrium private giving. Direct government grants to charity, possibly temporary, can enable an economy stuck at an equilibrium with a low level of giving to attain an equilibrium with a high level of giving. Therefore, direct government grants can crowd-in private giving to charity. The paper contributes to the economics of philanthropy as well as to an understanding of the role of public policy in the face of private coordination failures. |
| Keywords: | multiple equilibria; crowding-in; strategic substitutes and complements; tax deductibility of charitable contributions; direct grants; charitable redistribution; voluntary contributions to public goods |
| JEL: | D6 H2 H4 |
| Date: | 2005–08 |
| URL: | http://d.repec.org/n?u=RePEc:lec:leecon:05/21&r=pbe |
| By: | Sanjit Dhami; Ali al-Nowaihi |
| Abstract: | Given actual probabilities of audit and penalty rates observed in the real world, tax evasion should be an extremely attractive gamble to an expected utility maximizer. However, in practice, one observes too much compliance relative to the predictions of expected utility. This paper considers an alternative theoretical model that is based on Kahneman and Tversky’s cumulative prospect theory. The model predicts empirically plausible magnitudes of tax evasion despite low audit probabilities and penalty rates. An increase in the tax rate leads to an increase in the amount evaded- a result, which is in broad agreement with the evidence, but is contrary to the prediction made by expected utility theory. Furthermore, we show that the optimal tax rates predicted by prospect theory, in the presence of tax evasion behaviour, are consistent with actual tax rates. |
| Keywords: | Reference Dependence; Loss Aversion; Decision Weights; Prospect Theory; Expected Utility Theory; Tax Evasion; Optimal taxation |
| JEL: | D81 H26 K42 |
| Date: | 2005–08 |
| URL: | http://d.repec.org/n?u=RePEc:lec:leecon:05/23&r=pbe |
| By: | Sanjit Dhami |
| Abstract: | In a federation with n >= 2 regions the relative optimality of six regimes- autarky, centralization, unregulated devolution, regulated devolution, direct democracy, and revenue maximising leviathan, is examined. Public policy consists of redistribution and regional public good provision. Regional incomes are uncertain and correlated while estimates of the usefulness of regional public goods are uncertain; the federal government’s estimates are noisier relative to those of regional governments. The optimality of each regime is influenced by four margins- regional insurance, coarseness of federal information, internalisation of spillovers and ‘raiding the commons’. Regulated devolution is the only regime that is capable of producing the constrained first best level of public goods. Federal insurance under the two regimes of direct democracy and a federal leviathan, can be inadequate relative to that under a utilitarian federal government. An increase in the number of regions has important implications for insurance and raiding the commons. The median region’s choice of redistribution under direct democracy is influenced in important ways by the distribution of regional uncertainties. The paper synthesises a significant proportion of the existing literature in a single model and also provides several new results. |
| Keywords: | Insurance; Spillovers; Information; Raiding the commons; Uncertainty |
| JEL: | H77 D78 H41 |
| Date: | 2005–08 |
| URL: | http://d.repec.org/n?u=RePEc:lec:leecon:05/24&r=pbe |
| By: | Sanjit Dhami; Ali al-Nowaihi |
| Abstract: | The neglect of administrative issues is a serious limitation of optimal tax theory, with implications for its practical applicability. Under uncertainty, the problems for optimal tax theory are compounded when the full set of tax instruments is neglected. These twin issues are addressed in this paper, by focussing on a fundamental implication of administrative problems, namely, that the tax bases are measured with some error. Consumption taxes can perform the ‘social insurance role of taxation’; a role previously ascribed only to income taxes. A combination of income and consumption taxes can hedge income and measurement-error risks better, relative to the imposition of these taxes alone. The optimal taxes are decreasing in the imprecision with which the corresponding tax base is measured. The taxpayer engages in precautionary savings, in response to uncertainty arising on account of income and measurement problems. Differential commodity taxes, tailored to the measurability characteristics of the different tax bases, dominate uniform commodity taxes. Furthermore, the paper provides a simple, tractable framework for optimal tax theorists interested in diverse kinds of uncertain situations. |
| Keywords: | Social Insurance; Measurability of tax bases; Yardstick Competition; Differentiated taxes |
| JEL: | H21 D82 |
| Date: | 2005–08 |
| URL: | http://d.repec.org/n?u=RePEc:lec:leecon:05/25&r=pbe |
| By: | Edward L. Maydew; Douglas A. Shackelford |
| Abstract: | This paper examines changes in the role that auditors play in corporate tax planning following recent events, including the well-known accounting scandals, passage of the Sarbanes-Oxley Act, and regulatory actions by the SEC and PCAOB. On the whole, these events have increased the sensitivity to and scrutiny of auditor independence. We examine the effects of these events on the market for tax planning, in particular the longstanding link between audit and tax services. While the effects are recent, they are already being seen in the data. Specifically, there has already been a dramatic shift in the market for tax planning away from obtaining tax planning services from one's auditor. We estimate that the ratio of tax fees to audit fees paid to the auditors of firms in the S&P 500 decline from approximately one in 2001 to one-fourth in 2004. At the same time, we find no evidence of a general decline in spending for tax services. In sum, the evidence indicates a decoupling of the longstanding link between audit and tax services, such that firms are shifting their purchase of tax services away from their auditor and towards other providers. |
| JEL: | H2 M4 L1 L5 |
| Date: | 2005–08 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:11504&r=pbe |
| By: | Patrick Bayer; Hanming Fang; Robert McMillan |
| Abstract: | In contrast to conventional wisdom, this paper identifies a powerful mechanism which can lead to persistent and even increasing residential segregation when racial differences in education and other sociodemographics narrow. We document that middle-class black neighborhoods are in short supply in many U.S. metropolitan areas, forcing highly educated blacks either to live in white neighborhoods with high amenity levels or in more black neighborhoods with lower amenity levels. A simple model then shows that increases in the proportion of highly educated blacks in a metropolitan area may lead to the emergence of new middle-class black neighborhoods, relieving the prior neighborhood supply constraint and causing increases in residential segregation. Cross- MSA evidence from the 2000 Census indicates that this mechanism does in fact operate: as the proportion of highly educated blacks in an MSA increases, so the segregation of educated blacks and blacks more generally goes up. Our empirical findings are robust and have important implications for the evolution of residential segregation. |
| JEL: | H0 J7 R0 R2 |
| Date: | 2005–08 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:11507&r=pbe |
| By: | B. Douglas Bernheim; Antonio Rangel |
| Abstract: | This paper has two goals. First, we discuss several emerging approaches to applied welfare analysis under non-standard ("behavioral") assumptions concerning consumer choice. This provides a foundation for Behavioral Public Economics. Second, we illustrate applications of these approaches by surveying behavioral studies of policy problems involving saving, addiction, and public goods. We argue that the literature on behavioral public economics, though in its infancy, has already fundamentally changed our understanding of public policy in each of these domains. |
| JEL: | D0 D1 D6 D9 H0 H1 H4 |
| Date: | 2005–08 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:11518&r=pbe |
| By: | Alberto Alesina; Guido Tabellini |
| Abstract: | Opportunistic politicians maximize the probability of reelection and rents from office holding. Can it be optimal from their point of view to delegate policy choices to independent bureaucracies? The answer is yes: politicians will delegate some policy tasks, though in general not those that would be socially optimal to delegate. In particular, politicians tend not to delegate coalition forming redistributive policies and policies that create large rents or effective campaign contributions. Instead they prefer to delegate risky policies to shift risk (and blame) on bureaucracies. |
| Date: | 2005–08 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:11531&r=pbe |
| By: | Martin Jorgensen; Deborah Roseveare |
| Abstract: | <P>Immigration could offer one way for Denmark to expand its labour supply, thereby lowering the dependency ratio, at least for some time, and easing the task of ensuring fiscal sustainability. However, these beneficial effects are obtained only if immigrants are in work. Yet a significant proportion of immigrants have found it quite difficult to get work in Denmark, while the country has been relatively unattractive to high-skilled foreigners. Furthermore, the structure of the economy not only makes it difficult for low-skilled foreigners to gain a foothold in the labour market, but also provides generous social benefits that have caught many of the least skilled immigrants in a benefit trap. A heightened appreciation of these problems, including a tighter focus on the economic situation of the immigrants already present, have underpinned the main changes in policies on immigration in recent years ...</P> <P>L’immigration pourrait être, pour le Danemark, un moyen d’accroître son offre de main-d’œuvre. Cela ferait baisser le taux de dépendance, pour quelque temps du moins, et serait propice à la viabilité budgétaire. Toutefois, ces effets bénéfiques ne se font sentir que si les immigrants sont pourvus d’un emploi. Or, un pourcentage non négligeable de cette population a eu de graves difficultés à trouver du travail dans ce pays qui, par ailleurs, n’attire que relativement peu de travailleurs hautement qualifiés. De surcroît, non seulement la structure de l’économie danoise permet difficilement aux étrangers faiblement qualifiés de s’insérer sur le marché du travail, mais le pays est généreux en matière d’octroi de prestations sociales, ce qui fait que beaucoup d’immigrants les moins qualifiés se sont trouvés pris au piège de l’assistance. Ces dernières années, les principaux changements apportés aux mesures concernant l’immigration ont été inspirés par une perception plus aigue de ces ...</P> |
| Keywords: | Denmark, Danemark, fiscal sustainability, immigration patterns, demographic projections, participation rates, integration policies, language skills, wage compression, benefit traps, tendances des flux d’immigration, perspectives demographiques, taux de participation, politiques d’intégration, compétences linguistiques, compression des salaries, piège des prestations socials, viabilité budgétaire |
| JEL: | H53 H6 I38 J11 J15 J21 J61 |
| Date: | 2004–04–30 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:368-en&r=pbe |
| By: | Isabelle Joumard; Per Mathis Kongsrud; Young-Sook Nam; Robert Price |
| Abstract: | <P>In most OECD countries, public spending rose steadily as a share of GDP over the past decades to the mid-1990s, but this trend has since abated. The spending pressures stemming from the continued expansion of social programmes have been partly compensated by transient or one-off factors. Pressures on public spending, however, appear likely to intensify, in particular as a consequence of ageing populations. Since most OECD economies have very little scope for raising taxation or debt to finance higher spending, reforms to curb the growth in public spending while raising its cost effectiveness are now required. This paper presents a reform strategy for progress in this direction, based on detailed country reviews for over twothirds of OECD countries. Three main areas for action are identified: the budget process; management practices and the use of market mechanisms in the delivery of public services ...</P> <P>Améliorer le rapport coûts-résultats des dépenses publiques : expériences dans les pays de l’OCDE <P>La part des dépenses publiques dans le revenu national a augmenté au cours des dernières décennies dans la plupart des pays de l’OCDE. Depuis le milieu des années 90, les chiffres font apparaître une rupture de tendance. L’expansion continue des programmes sociaux, qui a favorisé la hausse des dépenses publiques, a été en partie compensée par un certain nombre de facteurs temporaires ou ponctuels. Les pressions sur les dépenses publiques risquent néanmoins de ressurgir, en particulier en raison du vieillissement des populations. Au vu des faibles marges de manoeuvre pour financer ces dépenses par une augmentation des impôts ou de la dette publique dans la plupart des pays de l’OCDE, des réformes visant à contenir la croissance des dépenses tout en améliorant leur efficacité sont désormais nécessaires. Sur la base d’études approfondies menées sur plus des deux tiers des pays de l’OCDE, ce document de travail identifie trios principaux axes de réforme : le processus budgétaire, les ...</P> |
| Keywords: | budget, Efficacité du secteur public, systèmes budgétaires, Government expenditure, dépenses publiques, Structure and scope of government, structure et taille du secteur public, public sector efficiencysystems. |
| JEL: | E62 H4 H5 H6 |
| Date: | 2004–02–12 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:380-en&r=pbe |
| By: | Rauf Gönenç; Peter Walkenhorst |
| Abstract: | <P>Over the past decade, public expenditure in Slovakia was characterised by substantial social transfers and high public sector wage expenses. This paper analyses the main features of Slovakia’s public expenditure system, reviews expenditure trends, and discusses recent reform initiatives. The latter have concerned the introduction of medium-term budget projections, the switch towards performance-based budgeting, the limitation of extra-budgetary funds, the devolution of spending power to sub-central administrative units, changes to the public employment regime, and reforms of the social security system. These initiatives are critically assessed and a number of recommendations concerning implementation and further reform steps are developed ...</P> <P>Rationaliser les dépenses publiques en République Slovaque <P>Durant la dernière décennie, les dépenses publiques en Slovaquie ont été caractérisées par des transferts sociaux considérables et des substantielles dépenses salariales dans le secteur public. Ce document examine les spécificités du système de dépenses publiques, passe en revue l’évolution des dépenses et discute les initiatives de réforme récentes. Ces dernières ont concerné la gestion des finances publiques dans un cadre de dépenses à moyen terme, le changement vers un système basé sur les objectifs budgétaires, la limitation des fonds extra-budgetaires, la dévolution des responsabilités budgétaires vers les administrations locales et régionales, les changements dans le système d’emploi public, et des réformes dans le système de sécurité sociale. Ces initiatives sont évaluées de façon critique et un nombre de recommandations sont développées concernant la mise en œuvre des changements et des étapes de réforme supplémentaires ...</P> |
| Keywords: | Public sector efficiency, budget systems, Government expenditure, Intergovernmental Relations, Relations intergouvernementales, new public management, système budgétaire, l'efficience du secteur public, système de dépenses publiques, nouveau système de gestion publique, Slovakia, La Slovaquie, dépenses gouvernementales |
| JEL: | E62 H1 H4 H5 H7 |
| Date: | 2004–03–16 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:384-en&r=pbe |
| By: | Lennart Goranson; Martin Jørgensen; Deborah Roseveare |
| Abstract: | <P>Vigorous product market competition plays a central role in bolstering productivity growth. Sweden has strengthened competition legislation and deregulated a number of sectors, including electricity, telecommunications and parts of transport, over the past 10 to 15 years. This paper examines the current state of product market competition and proposes further measures. A stronger institutional framework would facilitate identification and elimination of anti-competitive behaviour, such as hard-core cartels. Efforts to inject effective competition into a range of network industries have been broadly successful, but specific measures could increase competition in several sectors, such as retail and construction. There is also room to boost competition in Sweden’s large and decentralised public sector and in its interactions with the private sector, so that competitive neutrality applies to all public sector activities ...</P> <P>La vigueur de la concurrence sur les marchés de produits joue un rôle central dans la stimulation des gains de productivité. La Suède a renforcé la législation concernant la concurrence et déréglementé un certain nombre de secteurs, dont l’électricité, les télécommunications et certains segments des transports. Cette étude examine l’état actuel de la concurrence en Suède et propose des mesures supplémentaires. Un cadre institutionnel renforcé faciliterait la détection et l’élimination des comportements anticoncurrentiels, don’t les ententes injustifiables. Des efforts ont été accomplis pour introduire un peu plus de concurrence active dans un éventail d’industries de réseau et ils ont globalement été couronnés de succès, mais quelques mesures concrètes seront nécessaires pour améliorer la concurrences dans plusieurs autres secteurs, dont la distribution et la construction. Il y a lieu également d’intensifier les efforts pour stimuler la concurrence dans le vaste secteur public ...</P> |
| Keywords: | Sweden, Regulation, network industries, Réglementation, industries de réseau, competition, concurrence, public procurement, marchés publics, product markets, retail distribution, construction, public sector, competitive neutrality, La Suède, marchés de produits, grande distribution, construction, neutralité de concurrence |
| JEL: | H4 K21 L1 L32 L33 L41 L43 L44 L8 L9 O52 |
| Date: | 2004–05–12 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:388-en&r=pbe |
| By: | Nathalie Girouard; Robert Price |
| Abstract: | <P>This paper analyses two factors which may cause cyclically-adjusted budget balances to give a misleading picture of underlying fiscal trends. It first explores the implications of recent large asset-market related fluctuations in government revenues for the measurement of structural budget balances. And second, it reviews the impact of the increased recourse to stopgap “one-off” measures to control deficits. The results confirm that since the late 1990s revenues have been more buoyant than would have been warranted by the registered rate of nominal output growth and the impact of tax measures. The study suggests that from 1995 to 2000 the average contribution of “unwarranted” revenues to year-to-year changes in cyclically-adjusted budget positions ranged from negligible to around ½ per cent of GDP, the main countries affected being the United States, the United Kingdom, France and some Nordic countries. Conversely, the subsequent decline in tax receipts has been sharper than could ...</P> <P>Cette étude analyse deux facteurs qui peuvent contribuer à brouiller la lisibilité des positions budgétaires sous-jacentes évaluées par la mesure traditionnelle du solde budgétaire corrigé des variations cycliques. Dans un premier temps, elle étudie les implications des récentes fluctuations des recettes fiscals associées aux marchés boursiers sur la mesure du solde structurel. Dans un deuxième temps, cette etude discute des effets du recours accru aux facteurs non-récurrents sur la maîtrise des déficits. Les resultants confirment que depuis la fin des années 1990, les recettes fiscales ont été plus dynamiques que ne le laissaient suggérer le taux de croissance nominal de l’activité et les effets des mesures fiscales. Entre 1995 et 2000, la contribution moyenne des recettes non-expliquées au changement annuel du solde budgétaire corrigée pour les variations cycliques oscillerait entre zéro et ½ pour cent du PIB, les principaux pays concernés étant les États-Unis, le Royaume-Uni, la ...</P> |
| Keywords: | Fiscal balances, structural balances, asset prices, Solde budgétaire, solde budgétaire corrigé des variations cycliques, prix des actifs |
| JEL: | E32 E65 H24 H25 H6 |
| Date: | 2004–06–07 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:391-en&r=pbe |
| By: | Pablo Antolin; Christine de la Maisonneuve; Alain De Serres |
| Abstract: | <P>This paper provides estimates of the implicit fiscal assets as well as of the evolution over time of fiscal costs and revenues related to tax-favoured retirement saving regimes in 17 OECD countries, taking into account current and future contributions, asset accumulation and withdrawals, all of which will be strongly influenced by future demographic developments. The main results show that in the case where tax incentives are assumed to lead essentially to saving diversion rather than creation, the net budgetary cost of tax-favoured schemes would remain large, despite the sharp rise in revenues collected from withdrawals as population ages. The paper shows that this cost would significantly be reduced if tax-favoured schemes succeed in promoting additional private savings. It then explores a number of policy options to maximize the amount of additional saving ...</P> <P>Lmplications budgétaires à long terme des plans d’épargne retraite à traitement fiscal favorable <P>Cette étude présente, pour 17 pays de l’OCDE, les résultats d’estimation des avoirs nets budgétaires ainsi que de l’évolution sur le temps des coûts et revenus fiscaux liés aux plans privés d’épargne retraite à traitement fiscal favorable. Les estimations prennent en compte les contributions, l’accumulation d’actifs et les prestations présentes et futures qui seront influencées par les changements démographiques à venir. Les principaux résultats suggèrent que dans l’hypothèse où les incitatifs fiscaux ont peu d’effet sur la creation nette d’épargne et conduisent plutôt à une réallocation de l’épargne existante, le coût budgétaire net des plans d’épargne retraite à traitement fiscal favorable demeurera élevé et ce, en dépit de la forte croissance des recettes fiscales anticipée, liée à l’augmentation importante du nombre de retraités par rapport au nombre de contributeurs. L’étude montre en outre que le coût budgétaire est sensiblement réduit dans l’hypothèse où ces plans ...</P> |
| Keywords: | ageing, vieillissement, tax-favoured, tax-deferred, private pensions, retirement savings, fiscal revenues, public deficits, fiscalité favorable, pensions privées, épargne pour la retraite, déficit public |
| JEL: | E62 H20 H50 H60 J18 |
| Date: | 2004–06–24 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:393-en&r=pbe |
| By: | Christine de la Maisonneuve; Claude Giorno; Peter Hoeller |
| Abstract: | <P>In recent years the euro area has shown less resilience to the negative and largely OECD-wide common shocks than the English-speaking countries, but most of the smaller euro area countries have fared better than the large ones. This paper reviews policy issues that are important in fostering a speedy adjustment to shocks. We argue that the small countries are well placed to adjust swiftly to asymmetric shocks, because they are well integrated with the rest of the area. An activist fiscal policy is not needed and also not powerful enough to smooth the cycle. However, asset bubbles are a cause of concern as their limited weight means that the common monetary policy is more likely to be out of line with their cyclical position. Large countries are less well placed to cope with shocks and sluggish adjustment can be expected. Reforms should focus on raising trade linkages via the completion of the single market, on improving wage and price flexibility and on making their housing markets ...</P> <P>Même monnaie, même cycle ? Rendre plus souple le fonctionnement de l'union monétaire <P>Au cours des dernières années, la zone euro a fait preuve d'une moindre résistance que les pays nglo-saxons aux chocs négatifs qui ont affecté dans une large mesure l'OCDE dans son ensemble; mais la lupart des plus petits pays de la zone ont mieux tirer leur épingle du jeux que les grands. Cet article passe n revue les questions de politique économique qui sont importantes afin de favoriser un ajustement rapide ux chocs. Nous défendons l'idée que les petits pays sont mieux armés pour s'ajuster promptement à des hocs asymétriques du fait de leur bonne intégration avec le reste de la zone. Une politique budgétaire ctiviste n'est pas nécessaire ni suffisamment puissante pour amortir le cycle. Néanmoins, l'apparition de ulles spéculatives est une source de préoccupation dans leur cas en raison de leur poids limité, lequel mplique que la politique monétaire commune est susceptible d'être plus fréquemment incohérente avec eur position cyclique. Les grands pays sont moins bien armés pour ...</P> |
| Keywords: | taxation, fiscalité, fiscal policy, politique budgétaire, Business cycles, cycles économiques, Economic and Monetary Union, Union Économique et Monétaire |
| JEL: | E3 E6 H2 H6 |
| Date: | 2004–09–16 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:401-en&r=pbe |
| By: | Alain De Serres; Kwang-Yeol Yoo |
| Abstract: | <P>This paper provides, for all OECD countries, an estimate of the net tax cost per currency unit of contribution to a tax-favoured retirement savings plan, using a present-value methodology. The latter takes into account the future flows of revenues foregone on accrued income and of revenues collected on benefit withdrawals corresponding to a unit contribution made in a given year. The net tax cost is first calculated for nine (five-year) age groups, which have different relative income levels and investment time horizons, and is then averaged across age groups. In order to take into consideration the relevant country-specific features of savings taxation, the paper also provides an overview of the tax treatment of private pension arrangements and alternative savings vehicles. The results indicate that the size of tax subsidy varies significantly across countries, ranging from nearly 40 cents per unit of contribution (Czech Republic) to around zero (Mexico, New Zealand). Over half of ...</P> <P>Traitement fiscal des pensions privées dans les pays de l’OCDE et le coût fiscal net par unité de contribution à un plan d’épargne retraite <P>Cette étude présente pour l’ensemble des pays de l’OCDE, une estimation du coût fiscal net (<I>e.g.</I> dollar ou euro) de contribution à un plan d’épargne retraite à traitement fiscal favorable, à partir d’une méthode de valeur présente. Cette dernière prend en compte les pertes futures de recettes fiscales découlant de la nontaxation des revenus d’intérêt ainsi que des recettes encaissées au moment de la perception des bénéfices par les détenteurs du plan de retraite. Le coût fiscal net est calculé pour neuf groupe d’âge (de cinq ans chacun), disposant de niveaux de revenus et d’horizons d’investissement différents. Le coût par groupe d’âge est ensuite aggrégé pour obtenir un coût moyen pour l’ensemble de la population. Les résultats indiquent que la valeur de l’incitatif fiscal varie de façon significative à travers les pays, passant de 40 cents par unité de contribution (République Tchèque) à près de zéro (Mexique, Nouvelle-Zélande). Plus de la moitié de pays de l’OCDE encourt ...</P> |
| Keywords: | comprehensive income tax, expenditure tax, private pension, net tax cost, revenue foregone method, Impôt sur le revenue, dépense fiscale, pension privée, coût fiscal net |
| JEL: | E21 G23 H21 H24 H31 |
| Date: | 2004–10–14 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:406-en&r=pbe |
| By: | Andrés Fuentes; Margaret Morgan; Eckhard Wurzel |
| Abstract: | <P>Key indicators show Germany belonging to the countries in the OECD with strong innovation activity even though some weakening in Germany’s position relative to other OECD countries has occurred recently. While the redirection of resources towards unification-related spending as well as low economic growth have contributed to this development, more fundamental structural issues have also played a role. Germany has benefited less than other high-performing countries from the surge in new technologies, such as ICT and biotechnology, as innovation activities continue to focus on sectors, such as machinery and automobiles, in which Germany has a long record of strong export performance. Some features of the regulation of capital, product and labour markets are hampering the supply of risk capital, the creation of new firms and the reallocation of labour. In addition, firms are finding it increasingly difficult to recruit highly qualified labour. Measures to improve the framework ...</P> <P>Selon les principaux indicateurs, l’Allemagne est l’un des pays de l’OCDE où l’activité d’innovation est soutenue, même si sa position relative s’est quelque peu dégradée ces derniers temps. Si ce phénomène peut s’expliquer en partie par un détournement des crédits vers les dépenses liées à l’unification et par la lenteur de la croissance économique, des facteurs structurels plus fondamentaux sont également intervenus. L’Allemagne a bénéficié moins que autres pays de l’explosion des nouvelles technologies, telles que les TIC et la biotechnologie, l’activité d’innovation restant axée sur les secteurs dans lesquels l’Allemagne obtient depuis longtemps de très bons résultats à l’exportation. Certaines caractéristiques de la réglementation des marchés des capitaux, des produits et du travail freinent l’offre de capital-risque, la création de nouvelles entreprises et la redistribution de la main-d’œuvre. De plus, les entreprises ont de plus en plus de mal à recruter des travailleurs ...</P> |
| Keywords: | productivity, productivité, innovation, innovation, competition, concurrence, subsidies, research and development, technological change, potential growth, business taxes, tertiary education, intellectual property rights, firm entry, recherche-développement, changement technologique, croissance potentielle, impôts aux entreprises, subsides, éducation tertiaire, droits de propriété intellectuelle, entrée des entreprises |
| JEL: | H25 I28 O30 O31 O33 O38 O52 |
| Date: | 2004–10–22 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:407-en&r=pbe |
| By: | Andrew Burns; Alessandro Goglio |
| Abstract: | <P>Since the early 1990s, when France's general government deficit reached a disturbing 6 per cent of GDP, the country's public finances have progressed substantially, even though significantly further improvement is required. This paper examines the tools available to policy-makers to meet this challenge. The clearest message is that, given the relatively small size of the State Budget in total spending, the challenge cannot be met by the State sector alone. Social security, as the principal source of spending pressure, must play a role, but so too must sub-national government -- especially if current plans to transfer additional responsibilities to the local level go through. If policy-makers are to succeed in directing public expenditure so as to create this room, they will have to clarify governance structures so that those who administer programmes face appropriate incentives to control costs and maximise programme efficiency ...</P> |
| Keywords: | Public expenditure, general government, budgetary transparency, multi-year budgeting, program evaluation |
| JEL: | H0 H1 H4 H5 H6 H7 |
| Date: | 2004–10–29 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:409-en&r=pbe |
| By: | Andrew Burns; Alessandro Goglio |
| Abstract: | <P>Depuis le début des années 90, lorsque le déficit des administrations publiques de la France avait atteint le niveau inquiétant de 6 pour cent du PIB, les finances publiques du pays se sont nettement redressées, même si de nouvelles améliorations substantielles sont nécessaires. Ce document examine les outils dont disposent les décideurs publics pour relever ce défi. Il en ressort clairement que, étant donné la part relativement réduite du budget de l’État dans les dépenses totales, le secteur de l’État ne peut à lui seul résoudre le problème. Le système de sécurité sociale, principale source de la poussée des dépenses, a un rôle à jouer, mais il en va de même des administrations infranationales – surtout si le transfert prévu de nouvelles compétences à l’échelon local se réalise. Pour pouvoir orienter la dépense publique de manière à créer des marges de manœuvre, les décideurs publics devront clarifier les structures de gouvernance de façon que les responsables de l’administration ...</P> |
| Keywords: | transparence budgétaire, dépenses publiques, administrations publiques, évaluation des programmes, budgétisation pluriannuelle |
| JEL: | H0 H1 H4 H5 H6 H7 |
| Date: | 2004–10–29 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:409-fr&r=pbe |
| By: | Andrew Burns; Przemyslaw Kowalski |
| Abstract: | <P>With almost 50 per cent of the working age population not working, improving labour market performance represents an essential and daunting challenge for Poland. While some of today’s joblessness is cyclical in nature, most of it appears to be structural. This paper argues that to increase employment levels policy will need to focus on reducing significantly the inactivity traps inherent in the Polish personal transfer system, while improving the efficiency and targeting of social transfers to ensure resources flow to those truly in need. Simultaneously, efforts must be extended to increase firms' propensity to hire the outof-work, by lowering the costs of low-skill labour, reducing associated administrative and regulatory costs and in the longer term by providing graduates with more relevant skills. This paper outlines reforms in each of these areas which, if implemented, would serve to reverse the recent decline in employment and improve the fairness of income ...</P> <P>Le défi de l’emploi en pologne : politiques en faveur de l’emploi <P>Alors que près de 50 pour cent de la population d’âge actif est sans emploi, améliorer les performances du marché du travail représente pour la Pologne un formidable défi. Une partie du nonemploi est certes conjoncturelle mais, pour l’essentiel, c’est un phénomène structurel. L’idée développée dans cette étude est que, pour élever le niveau de l’emploi, il faudra s’attacher à réduire notablement les pièges à l’inactivité liés au système des transferts sociaux en Pologne, tout en améliorant l’efficience et le ciblage des transferts de façon que les flux de ressources aillent vers ceux qui en ont véritablement besoin. Parallèlement, il faudra redoubler d’efforts pour inciter davantage les entreprises à embaucher les personnes sans emploi, en abaissant le coût de la main-d’œuvre peu qualifiée, en réduisant les coûts administratifs et réglementaires connexes et, à plus long terme, en orientant les étudiants vers des qualifications plus pertinentes. Cette étude présente des réformes dans ...</P> |
| Keywords: | Poland, Pologne, education, marché du travail, labour market policies, personal transfer system, labour costs, active labour market policies, flexibility of working rules, transfers sociaux, coûts salariaux, politiques actives concernant le marché du travail, enseignement |
| JEL: | E24 H52 J20 J21 J22 J23 J24 J26 J31 J32 J65 O52 O57 |
| Date: | 2004–12–23 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:414-en&r=pbe |
| By: | Isabelle Joumard; Tadashi Yokoyama |
| Abstract: | <P>Revamping fiscal relations across levels of government is of paramount importance in supporting fiscal consolidation and public sector effectiveness. This paper analyses a number of problems, including regulations that limit local governments’ ability to innovate and respond to local citizens’ preferences, the inefficient system of intergovernmental grants, the complex structure of local taxes and fiscal rules which are too lenient to secure fiscal discipline. The paper concludes that the grant system should be reformed to promote local governments’ incentives to introduce innovations so as to better respond to needs at lower cost. Barriers to the effective use of sub-national governments’ taxing powers should be removed while efforts should be made to keep the tax system as simple and neutral as possible. Existing fiscal rules and market instruments should be hardened. This would require that the central government state clearly that it will not intervene as a lender of last ...</P> <P>Optimiser l’impact de la décentralisation au Japon <P>La réforme des relations financières entre l’État et les collectivités territoriales est essentielle pour soutenir le processus d’assainissement budgétaire et l’efficacité du secteur public. Ce document met en lumière un certain nombre de problèmes, notamment les réglementations qui limitent la capacité des collectivités territoriales à innover et à répondre aux préférences des citoyens, un système inefficace de transferts intergouvernementaux, une fiscalité locale excessivement complexe et des règles budgétaires trop laxistes. Ce document conclut qu’une réforme du système des transferts est nécessaire pour inciter les collectivités territoriales à innover afin de répondre mieux et à moindre coût aux besoins des citoyens. Les dispositions institutionnelles qui limitent l’utilisation effective des pouvoirs des collectivités territoriales en matière d’impôts doivent être éliminées tout en s’assurant que le système fiscal soit le plus simple et le plus neutre possible. Les règles ...</P> |
| Keywords: | Japan, Japon, local government, fiscal discipline, discipline budgétaire, fiscal federalism, intergovernmental grants, fédéralisme financier, collectivités territoriales, transferts intergouvernementaux |
| JEL: | H1 H2 H7 R58 |
| Date: | 2005–01–27 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:416-en&r=pbe |
| By: | Vincent Koen; Paul Van den Noord |
| Abstract: | <P>Accounting conventions usually leave some room for judgment, which governments may be tempted to take advantage of, especially when fiscal rules bite or threaten to do so. The European experience over the past decade -- documented here in great detail -- illustrates that fiscal gimmicks come in many different guises, but also that some are less mischievous than others. Logit regression analysis confirms that when deficit rules or, to a lesser extent, debt thresholds tend to become more binding, recourse to gimmicks is more likely. It also suggests that more centralised budget systems are less prone to such gimmickry. The policy implications are clear as regards the virtues of transparent and consistent accounting practices, but more ambiguous regarding the merits or otherwise of one-off measures ...</P> <P>Astuces budgétaires en Europe : mesures non récurrentes et créativité comptable <P>En général, les conventions comptables sont sujettes à interprétation, et les gouvernements peuvent être tentés d’en profiter, notamment lorsqu’ils sont contraints, ou en voie de l’être, par des règles budgétaires. L’expérience européenne au cours de la décennie écoulée -- décrite ici avec force détails -- montre que les astuces budgétaires sont protéiformes, mais aussi que certaines posent moins de problèmes que d’autres. Des régressions logit confirment que lorsque les règles sur les déficits ou, dans une moindre mesure, les seuils d’endettement deviennent plus contraignants, la probabilité d’un recours à des astuces augmente. Elles corroborent également l’idée que les astuces tendent à être moins employées dans des systèmes budgétaires plus centralisés. Les implications de politique économique sont claires s’agissant des vertus de la transparence et de la cohérence des comptes, mais plus ambiguës concernant les mérites ou inconvénients des mesures non récurrentes ...</P> |
| Keywords: | Public debt, Dette publique, règles budgétaires, Economic and Monetary Union, Union Économique et Monétaire, Stability and Growth Pact, Pacte de stabilité et de croissance, Budgets, fiscal deficit, fiscal rules, fiscal gimmicks, national accounts, political economy, Budgets, déficit budgétaire, astuces budgétaires, comptes nationaux, économie politique |
| JEL: | D78 E61 H27 H6 H74 H81 H82 H87 |
| Date: | 2005–02–10 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:417-en&r=pbe |
| By: | Rauf Gönenç; Willi Leibfritz; Erdal Yilmaz |
| Abstract: | <P>Fiscal imbalances were a main cause for chronic high inflation and macroeconomic instability before the 2000/2001 crisis. Fiscal consolidation is the cornerstone of post-crisis stabilization. It has been quite successful over the past three years as sizeable primary surpluses have been sustained and the fall in interest rates has reduced the interest cost of public debt. Fiscal targets have been achieved chiefly by raising revenues which has increased the tax burden; greater emphasis should now be placed on the control of public expenditure. At the same time, core public services such as education, justice, infrastructure and rural development will need to be upgraded. Social security costs may also rise with the planned shift to universal health insurance, and the ambitious administrative decentralization project could cause upward pressure on local spending. Far-reaching rationalization of public expenditures is therefore required to meet the quantitative fiscal targets while ...</P> <P>Réformer la gestion des dépenses budgétaires en Turquie <P>Les déséquilibres fiscaux ont été une cause majeure de l’inflation forte et de l’instabilité macroéconomique avant la crise de 2000/2001. La consolidation budgétaire a été au cœur de la stabilisation après la crise. Elle a été mise en œuvre depuis trois ans avec des excédents primaires larges, et la baisse des taux d’intérêt a réduit le coût du service de la dette publique. Les objectifs budgétaires ont été atteints principalement par une hausse des revenus, augmentant la pression fiscale, et plus d’attention devra être accordée à l’avenir au contrôle des dépenses. En même temps des services publics majeurs comme l’éducation, la justice, les infrastructures et le développement rural devront être améliorés. Les dépenses de sécurité sociale pourraient aussi augmenter avec le passage annoncé à la couverture médicale universelle, et l’ambitieux projet de décentralisation administrative pourrait accroître les dépenses locales. Une forte rationalisation des dépenses devient donc ...</P> |
| Keywords: | Public sector efficiency, budget systems, Government expenditure, Intergovernmental Relations, Relations intergouvernementales, new public management, système budgétaire, système de dépenses publiques, nouveau système de gestion publique, dépenses gouvernementales, Turkey, La Turquie, l’efficience du secteur public |
| JEL: | E62 H1 H4 H5 H7 |
| Date: | 2005–02–10 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:418-en&r=pbe |
| By: | Claude Giorno; Isabelle Joumard |
| Abstract: | In about two decades, Spain was transformed from one of the most centralised countries to one of the most decentralised. Spending functions were devolved rapidly. The regions have exercised their discretionary powers quite extensively and innovative policies have been implemented. But devolution was also accompanied by a hike in public employment and pressures on public spending, reflecting duplication in resources and poor co-ordination across and between government levels. The recent devolution of taxing powers could raise the accountability of the regions and, thus, cost-consciousness, although their effective use has been limited. Securing fiscal discipline would require better information on sub-national governments’ policies and outcomes so as to allow citizens to press for improved performance. The financing system of the regions also needs to be reformed to ensure sustainability in the face of changing demographics, while the fiscal rules need to be upgraded to avoid recourse to off-budget operations. This Working Paper relates to the 2005 OECD Economic Survey of Spain (www.oecd.org/eco/surveys/spain). <P>Optimiser l’impact de la décentralisation en Espagne En l’espace de deux décennies, l’Espagne, qui était l’un des pays les plus centralisés, est devenue l’un des plus décentralisés. Les compétences en matière de dépenses ont été transférées rapidement. Les régions ont souvent été innovantes, adaptant leur offre de services publiques aux préférences locales. Toutefois, ces transferts se sont aussi accompagnés d’une hausse de l’emploi public et de pressions sur les dépenses publiques, ce qui reflète une duplication des ressources et un manque de coordination à chaque niveau d’administration et entre les différents niveaux. Le récent transfert de pouvoirs fiscaux aux régions pourrait renforcer leur responsabilité, et donc leur souci de maîtriser les coûts, bien qu’elles n’aient que peu utilisé ces pouvoirs. Assurer la discipline budgétaire nécessiterait une information plus complète sur les politiques et les résultats des administrations territoriales afin que les citoyens puissent réclamer une amélioration des performances. Il faut aussi réformer le système de financement des régions pour en assurer la viabilité face aux changements démographiques, tandis que les règles budgétaires devraient être ajustées de façon à éviter le recours aux opérations extrabudgétaires. Ce Document de travail se rapporte à l'Etude économique de l'OCDE de l’Espagne, 2005 (www.oecd.org/eco/etudes/espagne). |
| Keywords: | fiscal discipline, discipline budgétaire, fiscal federalism, fiscal rules, intergovernmental grants, règles budgétaires, fédéralisme financier, collectivités territoriales, transferts intergouvernementaux |
| JEL: | H1 H2 H4 H5 H7 |
| Date: | 2005–07–21 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:436-en&r=pbe |
| By: | Annabelle Mourougane; Michael Wise |
| Abstract: | The paper examines the current state of competition in a number of sectors that are important for the economy. Because of the country’s small size and isolation, the analysis focuses on barriers to entry, investment and external trade, rather than some standard indicators of competition stance. The competition law and institutions are generally well-conceived, although high-profile litigation about mergers and market-power problems hasstretched their capacities and until recently, diverted attention from enforcement against price fixing. Overall, markets appear to function well in New Zealand, but progress towards liberalisation seems recently to have lost momentum. In particular, improvement could be made in three main areas: in the energy sector, lifting current barriers to investment and developing forward markets are necessary to ensure the economy will be able to cope with long-term challenges; in telecommunications markets, concerns have been mounting regarding high prices and slow deployment of broadband; and in the public sector, there is scope for further use of private delivery for public services and reducing state ownership, especially in potentially competitive markets. Some adjustments to the regulatory framework and policies in a number of other sectors would also be beneficial. This Working Paper relates to the 2005 OECD Economic Survey of New Zealand (www.oecd.org/eco/surveys/nz). <P>Concurrence sur les marchés de produits et performance économique en Nouvelle-Zélande Cet article examine l’état actuel de la concurrence dans un certain nombre de secteurs importants pour l’économie. L’analyse est axée sur les obstacles à l’entrée, à l’investissement et au commerce extérieur, plutôt que sur des indicateurs types de l’intensité de la concurrence en raison de la faible superficie et l’isolement du pays. Le droit de la concurrence et les organismes connexes sont généralement bien conçus, même si des contentieux notoires en matière de fusions et des problèmes de pouvoir de marché ont fortement sollicité leurs capacités et, jusqu’à une date récente, détourné l’attention de la lutte contre les ententes sur les prix. Au total, les marchés semblent bien fonctionner en Nouvelle-Zélande, mais le processus de libéralisation a apparemment marqué le pas ces derniers temps. En particulier, des améliorations sont possibles sur trois grands fronts : dans le secteur de l’énergie, il faut supprimer les obstacles actuels à l’investissement et développer les marchés à terme pour permettre à l’économie de relever les défis de long terme ; sur les marchés des télécommunications, le niveau élevé des prix et la lenteur du déploiement du réseau à large bande suscitent des préoccupations grandissantes ; enfin, dans le secteur public, on pourrait recourir davantage à la prestation privée de services publics et réduire les participations de l’État, surtout sur les marchés potentiellement concurrentiels. Des ajustements du cadre et de la politique de la concurrence seraient également bénéfiques dans plusieurs autres secteurs. Ce Document de travail se rapporte à l'Étude économique de l'OCDE de la Nouvelle-Zélande, 2005 (www.oecd.org/eco/etudes/nz). |
| Keywords: | telecommunications, télécommunications, competition policy, politique de la concurrence, transport aérien, retail trade, commerce de détail, Trade, privatisation, banking, privatisation, agriculture, agriculture, electricity, électricité, natural gas |
| JEL: | H4 K20 K21 L50 L9 Q1 Q4 |
| Date: | 2005–07–26 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:437-en&r=pbe |
| By: | Geert Steurs; Ludo Struyven |
| Abstract: | <P><OL><LI>OECD countries are increasingly interested in structuring government organisation and the financing of job brokerage and employment reintegration services to use market forces. In the Netherlands, the introduction of market mechanisms has been part of a search for a more coherent benefits and activation system. The former Public Employment Service has been split up into a basic employment service provider (Centre for Work and Income) which remains public, and a privatised reintegration services company, which competes with other commercial entities for contracts to promote return to work. Since a large number of municipalities are looking to buy employment services for their social assistance clients in the Netherlands, a quasi-market for reintegration services has emerged, with many purchasers and providers. However, the purchasers use a variety of tendering methods and parts of the market suffer from a lack of transparency.</LI> <LI>Following the outcome of a tender round held in 2000, in 2001 ...</LI></OL></P> <P><OL><LI>Les pays de l’OCDE s’intéressent de plus en plus à des structures d’organisation gouvernementale et de financement des services de placement et de réintégration faisant appel à des mécanismes concurrentiels. Aux Pays-Bas, l’introduction de mécanismes de marché a fait partie de la recherche d’un système plus cohérent de prestations et d’activation. L’ancien Service public de l’emploi s’est scindé en deux parties constituées d’une part d’un fournisseur de services d’emploi de base (Centre pour le travail et le revenu) qui reste public et d’autre part d’une société privée de services de réintégration, en concurrence avec d’autres organismes commerciaux pour des contrats d’aide au retour à l’emploi. Étant donné qu’un grand nombre de municipalités au Pays-Bas cherchent à acheter des services pour leur bénéficiaires d’aide sociale, un <I>quasi-marché</I> de services de réintégration s’est développé, avec de nombreux acheteurs et fournisseurs. Toutefois, les acheteurs utilisent une large gamme ...</LI></OL></P> |
| JEL: | H5 I3 J58 |
| Date: | 2003–09–12 |
| URL: | http://d.repec.org/n?u=RePEc:oec:elsaab:13-en&r=pbe |
| By: | Giuseppe Carone; Herwig Immervoll; Dominique Paturot; Aino Salomäki |
| Abstract: | <P><OL><LI>This paper presents results from an on-going joint European Commission / OECD project, aimed at monitoring the direct influence of tax and benefit instruments on household incomes. The project uses and extends OECD tax-benefit models to compute a range of work incentive indicators such as marginal effective tax rates on earned income. This paper provides a methodological background describing these extensions. It also discusses the usefulness of a range of indicators such as net replacement rates and marginal effective tax rates and to what extent they can be used to quantify possible work disincentives. The approaches are illustrated using detailed tax-benefit calculations for 2001 and comparing relevant indicators across 15 EU and 8 non-EU countries.</LI> <LI>The results presented in this paper permit the identification of family circumstances where (1) financial incentives to increase work are either small or missing altogether; or (2) resources provided by social transfers may be ...</LI></OL></P> <P><OL><LI>Cette étude présente les résultats d’un projet commun Commission européenne/OCDE qui vise à faire apparaître l’impact direct des mécanismes fiscaux et de prestations sur le revenu des ménages. Le projet utilise, en les élargissant, les modèles fiscalité-prestations de l’OCDE pour calculer divers indicateurs de l’incitation à l’activité tels que le taux marginal effectif d’imposition des revenus du travail. Cette étude donne, par ailleurs, des indications méthodologiques sur la façon dont il a été procédé. On examine aussi la pertinence de différents indicateurs tels que le taux de remplacement net et le taux marginal effectif d’imposition, et on cherche à voir dans quelle mesure ils peuvent permettre de mesurer d’éventuels effets décincitatifs vis-à-vis de l’activité. A des fins d’illustration, on présente des calculs détaillés impôts-prestations pour 2001 et on procède à des comparaisons d’indicateurs pertinents dans les 15 pays de l’UE et 8 pays non membres de ...</LI></OL></P> |
| JEL: | C80 H31 H55 J65 |
| Date: | 2004–03–15 |
| URL: | http://d.repec.org/n?u=RePEc:oec:elsaab:18-en&r=pbe |
| By: | Herwig Immervoll |
| Abstract: | <P><OL><LI>Macro-based effective tax rate (ETR) measures do not provide information on the level or distribution of marginal effective tax rates thought to influence household behaviour. They also do not capture differences in average ETRs facing different population sub-groups. I use EUROMOD, an EUwide tax-benefit model, to derive distributions of average and marginal ETR measures for fourteen countries. Results for each country show how many and which types of individuals face different ETR levels. I consider effective tax burdens on labour income as well as the marginal tax rates faced by working men and women. Results are broken down to isolate the influence of income taxes, social contributions and various types of social benefits ...</LI></OL></P> <P><OL><LI>Les taux d’imposition effectifs basés sur des données macros ne fournissent pas d’information sur le niveau ou sur la distribution des taux d’imposition effectifs marginaux jugés pour influencer le comportement des ménages. Ils ne permettent pas non plus de saisir les différences dans les taux d’imposition effectifs moyens, confrontés à différents sous-groupes de population. J’utilise EUROMOD, un modèle de fiscalité et de régimes de prestations à l’échelle européenne pour calculer les distributions des mesures des taux d’imposition effectifs et moyens pour quatorze pays. Les résultats pour chaque pays montrent le nombre et la catégorie d’individus selon les différents niveaux de taux d’imposition effectifs. Je prends en compte aussi bien les charges fiscales effectives sur le revenu du travail que les taux d’imposition marginaux que se voient appliquer les travailleurs, hommes et femmes confondus. Les résultats sont décomposés afin de mettre en évidence l’influence des impôts sur ...</LI></OL></P> |
| JEL: | C81 D31 H22 |
| Date: | 2004–12–02 |
| URL: | http://d.repec.org/n?u=RePEc:oec:elsaab:19-en&r=pbe |
| By: | Herwig Immervoll; Pascal Marianna; Marco Mira D’Ercole |
| Abstract: | <P><OL><LI>The OECD regularly produces estimates of tax burdens and benefit entitlements for a range of “typical household” situations. The results of these calculations (published in the <I>Benefits and Wages</I> and <I>Taxing Wages</I> series) are frequently used to compare countries’ tax-benefit systems and to assess progress towards specific policy objectives. This paper presents information on particular aspects of the structure of household populations across countries in order to help in the interpretation of results based on such “typical” family situations. A range of internationally comparable data sources are used to assess how relevant household circumstances such as family structure, labour market attachment and benefit coverage vary across countries. The results are used as a basis for clarifying the scope of tax-benefit indicators based on synthetically constructed household typologies.</LI></OL></P><P><OL><LI>“Typical household” calculations cannot be used to address essential distributional issues such as how ...</LI></OL></P> <P><OL><LI>L’OCDE publie régulièrement des évaluations des charges fiscales et des droits aux prestations en se servant d’un large échantillon de situations de ménages types. Les résultats de ces calculs (publiés dans les séries <I>Prestations et salaires</I> et <I>Les impôts sur les salaires</I>) sont souvent utilisés pour comparer le régime fiscal et le régime de prestations en vigueur dans les pays ainsi que pour évaluer le progrès à faire pour atteindre des objectifs de politique spécifiques. Ce document présente une information sur des aspects précis de la structure des ménages d’un pays à l’autre afin d’aider à l’interprétation des résultats basés sur des situations types de famille. Une gamme de sources de données, comparables à l’échelle internationale, est utilisée pour évaluer comment les différentes situations des ménages telles que la structure de la famille, les liens avec le marché du travail ou encore la couverture sociale varient d’un pays à l’autre. Ces résultats sont utilisés comme base ...</LI></OL></P> |
| JEL: | D3 H31 J0 |
| Date: | 2004–12–17 |
| URL: | http://d.repec.org/n?u=RePEc:oec:elsaab:20-en&r=pbe |
| By: | Ludo Struyven |
| Abstract: | <P><OL><LI>Most Western countries have a long tradition of employment service provision by public bodies and non-profit organisations, but not by for-profit organisations. The creation of a quasi-market arrangement is not a simple choice for government. This paper underscores the difficulties and discusses design options. It calls for a complex balancing act between regulation and the creation of room for market competition, between old and new instruments and procedures, and between efficiency and equity. It identifies as two key issues the need to actively create sufficient room for market competition, and the need for "positive creaming" which encourages providers to concentrate their efforts on the most disadvantaged target groups.</LI></OL></P><P><OL><LI>The paper starts by stating the principles and preconditions for market competition, with a focus on possible quasi-market arrangements for strengthening service provision for the long-term unemployed in Flanders. It sets out four models for contracting with ...</LI></OL></P> <P><OL><LI>La plupart des pays de l'OCDE ont une longue tradition de services de l'emploi fournis par des organismes publics et à but non lucratif, à l'exclusion des organismes à but lucratif. La création d'un <I>quasimarché</I> n'est pas un choix facile pour le gouvernement. Ce document souligne les difficultés et examine les choix possibles dans la conception d'un système quasi-marchand. Il appelle à un jeu d'équilibre entre la régulation et la création de la place pour la concurrence, entre les instruments et les procédures anciens et nouveaux et entre l'efficacité et l'équité. Il identifie comme deux questions clés le besoin de créer activement assez de place pour la concurrence et le besoin d'un "écrémage positif" qui encourage les prestataires à concentrer leurs services sur les groupes les plus difficiles à placer.</LI></OL></P><P><OL><LI>Le document commence en constatant les principes et les conditions préalables à la concurrence de marché, dans la perspective des éventuels dispositifs quasi-marchands pour ...</LI></OL></P> |
| JEL: | H53 I38 J68 |
| Date: | 2004–12–09 |
| URL: | http://d.repec.org/n?u=RePEc:oec:elsaab:21-en&r=pbe |
| By: | John P. Martin; Mark Pearson |
| Abstract: | <P><OL><LI>Some people make great claims about the advantages to be gained from greater reliance on the private sector for the provision of social protection. Many of the claims for great macroeconomic advantages do not stand up to scrutiny. However, there is some reason to hope that private provision might promote microeconomic efficiency and services which are more responsive to consumer preferences than those provided by a single monopoly public sector provider. Drawing on examples from recent OECD country experiences with private health insurance, care for children and the elderly, and private pension provision, three main conclusions can be drawn. First, opening provision to a diversity of providers has often promoted more choice and innovation. Second, however, efficiency gains have often been limited. This is due to a number of inter-related reasons: (a) Individualisation of packages of services is expensive. (b) In order to ensure adequate coverage of the ...</LI></OL></P> <P><OL><LI>Certains font grand cas de l’intérêt qu’il y aurait au plan macroéconomique à faire davantage appel au secteur privé pour assurer la protection sociale. Les arguments présentés dans ce sens ne tiennent souvent pas la route ; cependant, on peut penser que le recours au secteur privé permettrait peut-être une meilleure efficience microéconomique et une réponse plus adaptée aux choix des consommateurs que ce que peut offrir un prestataire public en situation de monopole. A partir de quelques expériences récentes de pays de l’OCDE en matière d’offre privée pour l’assurance maladie, la garde des enfants, les soins aux personnes âgées et la retraite, trois conclusions se dégagent. Premièrement, la diversification des prestataires a souvent permis un plus grand choix et plus d’innovation. Deuxièmement, cependant, les gains d’efficience ont souvent été limités, et ceci pour un certain nombre de raisons difficiles à dissocier : (a) l’individualisation du panier de prestations est ...</LI></OL></P> |
| JEL: | H11 H42 H51 H53 L33 |
| Date: | 2005–03–21 |
| URL: | http://d.repec.org/n?u=RePEc:oec:elsaab:23-en&r=pbe |
| By: | David Morgan; Eva Orosz |
| Abstract: | <H2 align="left">The purpose of the System of Health Accounts</H2><P><OL><LI>Changes in health systems and concomitant health policy questions have been challenging the traditional system of health expenditure statistics over the last couple of decades. What are the major factors accounting for health expenditure growth? What factors explain the differences between countries in expenditure growth? How to ensure sustainable financing? What are the major factors accounting for the differences in the structure of health spending? How are the changes in health spending structure and the performance of health systems related? In order to answer such questions, reliable, comparable and appropriately detailed health expenditure data are required. The <I>System of Health Accounts</I> intends to provide the foundation for health statistics that are able to meet these challenges.</LI></OL></P><H2 align="center">Box 1</H2><H3 align="center">What is the System of Health Accounts?</H3><P><I>The System of Health Accounts</I> (SHA) proposes an integrated system of comprehensive and internationally ...</P> |
| JEL: | H51 I10 |
| Date: | 2004–08–06 |
| URL: | http://d.repec.org/n?u=RePEc:oec:elsaad:16-en&r=pbe |
| By: | Reto Nyffeler |
| Abstract: | In recent applications of discrete choice models of labour supply considerable attention has been devoted to strategies to increase the flexibility of models for a better fit to the data. These include the introduction of random parameters, fixed cost of work or flexible functional forms of preferences. Based on estimates of models of recent studies this paper compares these different modeling strategies. Results for Swiss data show that the traditional way to interpret fixed cost of work is ad hoc. Furthermore our results indicate that care should be taken when using very general function forms of preferences |
| Keywords: | multinomial logit; household labour supply; taxation; microsimulation |
| JEL: | C25 C52 H31 J22 |
| Date: | 2005–07 |
| URL: | http://d.repec.org/n?u=RePEc:ube:dpvwib:dp0508&r=pbe |
| By: | Christopher J. O'Leary (W.E. Upjohn Institute); Stephen A. Wandner (U.S. Department of Labor) |
| Abstract: | This paper summarizes state unemployment insurance job search policies based on a recent survey of states by the National Association of State Workforce Agencies. It then reviews research results on the effects of reemployment services on durations of insured unemployment. The paper documents how state administrative practices have changed and questions whether these changes may have affected monitoring of claimant compliance with work search requirements. Since state policies on job search and service referral can affect insured durations of unemployment, these policies can also affect the measured total unemployment rate. This paper reflects the opinions of the authors and does not necessarily reflect the positions or viewpoints of the W.E. Upjohn Institute for Employment Research or the U.S. Department of Labor. |
| Keywords: | unemployment insurance, work test, job search assistance, reemployment, public employment service |
| JEL: | I18 J68 H43 |
| Date: | 2005–05 |
| URL: | http://d.repec.org/n?u=RePEc:upj:weupjo:05-112&r=pbe |
| By: | Rupert Sausgruber (University of Innsbruck) |
| Abstract: | It is often suggested that team spirit counteracts free-riding. Testing for team spirit with field data is difficult, however, due to an inherent identification problem. In this paper test for team spirit experimentally. In a team work task we vary subjects' information about relative team performance while we leave unchanged the structure of explicit incentives. We find that subjects contribute more to their team's project when teams observe each others' performance. We attribute this result to the enhancement of team spirit caused by asymmetric peer effects between observing teams. |
| Keywords: | team spirit, peer effects, organization of work, public goods experiments |
| JEL: | C92 H41 J2 |
| Date: | 2005–08–02 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpex:0508001&r=pbe |
| By: | Ferda HALICIOGLU (The University of Greenwich) |
| Abstract: | This study aims at predicting the most likely winners of international football tournaments. To this end, this paper employs a relatively simple statistical method, which is based on the seasonal coefficients of variation (CVs) of the end-of-season points from domestic football leagues to measure the degree of competitive balance and to use it as a comparative indicator between the contesting countries in international football tournaments. The seasonal CV values computed from over ten seasons of the top division final standings of participating countries of Euro 2000 and 2004 football tournaments were utilized to predict the outcome of these football tournaments. The results based on the short, mid and long-term seasonal CV values suggest that this forecasting approach provides significantly reliable results in the case of Euro 2000 but not in the case of Euro 2004. |
| Keywords: | Competitive balance, Football, Ranking, UEFA, Sports forecasts. |
| JEL: | L80 H50 |
| Date: | 2005–08–01 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpio:0508001&r=pbe |
| By: | Maurizio Bovi (Institute for Studies & Economic Analyses ISAE) |
| Abstract: | Using the Hodrick-Prescott filter, this paper examines the cyclical properties of the Italian labour market. Its main contribution is the empirical analysis of three different labour inputs - regular employees, regular self-employed and underground workers. Results from VAR models support the widespread view that the shadow employment functions as an improper tool for increasing the flexibility of the labour market. While the contemporaneous correlation between shadow labour and output is significant, as time passes their association looses momentum. The opposite is found for regular employees, which show significant positive correlations only with lagged output gaps. Somewhat puzzling, self- employment seems to be the less sensitive to the course of business cycles. The skewness of input distributions suggests that hiring employees is easier than firing them, while this can not be said for the other two labour gaps. Disaggregate data tell different stories. For instance, in the manufacturing sector the hidden employment is not correlated with the output, while in the trade sector the acyclical input turns out to be the recorded employees. In the transport industry, where no labour input follow the cycle, regular employees are more fired than hired. |
| Keywords: | Underground economy; VAR models; Labour Flexibility, Business Cycle. |
| JEL: | C32 C53 H26 J30 |
| Date: | 2005–07–28 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpla:0507011&r=pbe |
| By: | Ferda HALICIOGLU (The University of Greenwich) |
| Abstract: | This study is primarily concerned with the degree of professional football competition in the Turkish first division football since its establishment. Moreover, this article aims to find the optimal number of football teams in a league as well as presenting the effects of the changes in point system on the degree of football competition. Finally, the Turkish first division's football competition level is compared to the selected European leagues. |
| Keywords: | Football competition, optimal league, Turkish football, European Football |
| JEL: | L50 H80 |
| Date: | 2005–08–01 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpot:0508003&r=pbe |