nep-pbe New Economics Papers
on Public Economics
Issue of 2013‒09‒13
23 papers chosen by
Keunjae Lee
Pusan National University

  1. Tax Policy and Tax Reform in the People's Republic of China By Bert Brys; Stephen Matthews; Richard Herd; Xiao Wang
  2. Assessing future sustainability of french public finances By Jérôme Creel; Paul Hubert; Francesco Saraceno,
  3. Distortive Effects of Dividend Taxation By Lindhe, Tobias; Södersten, Jan
  4. Japan's Challenging Debt Dynamics By Yvan Guillemette; Jan Strasky
  5. Explaining Rising Income Inequality in Germany, 1991-2010 By Kai Daniel Schmid; Ulrike Stein
  6. The Tax Policy Landscape Five Years after the Crisis By Pierre LeBlanc; Stephen Matthews; Kirsti Mellbye
  7. Is There Convergence of Russia’s Regions? Exploring the Empirical Evidence: 1995 – 2010 By H. Lehmann; M. G. Silvagni
  8. Patents in the University: Priming the Pump and Crowding Out By Scotchmer, Suzanne
  9. Inequality and poverty in the United States: the aftermath of the Great Recession By Jeffrey P. Thompson; Timothy M. Smeeding
  10. Military Expenditure, Economic Growth and Heterogeneity By J Paul Dunne; Nan Tian
  11. Prospect theory and tax evasion: a reconsideration of the Yitzhaki Puzzle By Amadeo Piolatto; Matthew Rablen
  12. Fiscal delegation in a monetary union with decentralized public spending By Henrique S. Basso; James Costain
  13. Size of the Government, Quality of Institutions and Growth in SAARC Countries By anwar, saba; munir, kashif
  14. The Path to Universal Health Coverage– Experiences and Lessons from Japan for policy Actions – By Shimazaki, Kenji
  15. The Power of Money: Wealth Effects in Contests. By Schroyen, Fred; Treich, Nicolas
  16. Procyclical Debt as Automatic Stabilizer. By Wesselbaum, D.
  17. Designing Efficient Resource Sharing For Impatient Players Using Limited Monitoring By Mihaela van der Schaar; Yuanzhang Xiao; William Zame
  18. Voluntary Pooled Public Knowledge Goods and Coalition Formation By Tom DEDEURWAERDERE; Paolo MELINDI GHIDI
  19. What drives the relevance and reputation of economics journals? An update from a survey among economists By Haucap, Justus; Muck, Johannes
  20. The Determinants of R&D Investment: An Empirical Survey By Bettina Becker
  21. Elected vs appointed public law enforcers By Eric Langlais; Marie Obidzinski
  22. The contribution of intangible assets to sectoral productivity growth in the EU By Niebel, Thomas; O'Mahony, Mary; Saam, Marianne
  23. Regional and Sectoral Evidence of the Macroeconomic Effects of Labor Reallocation: A Panel Data Analysis By D. Bakas; T. Panagiotidis; G. Pelloni

  1. By: Bert Brys; Stephen Matthews; Richard Herd; Xiao Wang
    Abstract: This paper compares the tax system in China with the tax system in OECD countries and the tax reforms China and OECD countries have implemented in the past. The analysis focuses on those taxes and tax issues which are currently on China’s reform agenda, including the consumption taxes (especially the integration of the “business tax” into the VAT), environmentally-related taxes, the personal income tax, fiscal relations between the central and sub-central levels of government and property taxes. The paper provides a (preliminary) analysis of the tax-to-GDP ratio and the tax mix in China as well as the average and marginal tax wedge on labour income, by applying the OECD’s Revenue Statistics and Taxing Wages methodology. Although a country’s culture, traditions and legal system play an important part in shaping its tax regime and how it can be reformed, the paper also reviews the general design issues on how to make the tax system in China more growth-friendly, simple and transparent, less distortive and fairer. The paper contains a detailed discussion and evaluation of each tax and considers possible directions for future tax reform in China.<P>Politique et réformes fiscales en République Populaire de Chine<BR>Ce document compare le système fiscal en Chine avec celui des pays de l’OCDE en tenant compte des réformes que ces pays ont mis en oeuvre par le passé. L’analyse se concentre sur les impôts et les questions fiscales pour lesquels la Chine envisage une réforme, y compris les impôts sur la consommation (notamment l’intégration de « la taxe d’affaires » dans la TVA), les taxes liées à l’environnement, l’impôt sur le revenu des personnes physiques, les relations budgétaires entre l’administration centrale et les administrations infranationales, ainsi que les impôts fonciers. Ce document présente une analyse (préliminaire) du ratio impôts/PIB et de la structure fiscale en Chine, ainsi que du coin fiscal moyen et marginal sur les revenus du travail, en appliquant la méthodologie utilisée dans les publications de l’OCDE Statistiques des recettes publiques et Les impôts sur les salaires. Bien que la culture, les traditions et le système juridique d’un pays jouent un rôle important pour façonner son régime fiscal et influent sur les possibilités de réforme, ce document aborde également des questions générales de conception en vue de déterminer comment faire en sorte que le système fiscal en Chine soit plus favorable à la croissance, simple, transparent et équitable, et induise moins de distorsions. Ce document examine et évalue chaque impôt en détail et réfléchit aux orientations possibles de la future réforme fiscale en Chine.
    Keywords: tax reform, tax policy, China, réforme fiscale, politique fiscale, Chine
    JEL: H2 H7
    Date: 2013–09–04
  2. By: Jérôme Creel (Ofce sciences-po,Escp Europe); Paul Hubert (Ofce sciences-po); Francesco Saraceno, (Ofce sciences-po,Luiss school of european political economy Italy)
    Abstract: This paper contributes to the debate on the French public finances'consolidation by investigating the long-term sustainability of France’s fiscal position. We trace the historical trends of government’s tax receipts and expenditures. We find that while the level of public expenditure in France is larger than in the rest of the Euro Area (mostly because of public wages and social benefits), its trend is comparable to its neighbours. Net lending is also under control, thanks to the high levels of taxation, so that we see no real risk of future unsustainability. However, the French tax system is unfair, is not sufficiently progressive, and is too complex. The paper then proceeds to assess the future of France’s public finances on the basis of the current debate on the Euro Area fiscal rules. We report two analyses theoretical and empirical that project the inflation rate and output gap paths for the next twenty years. We finally assess fiscal rules on this ground. The ‘fiscal compact’ fares rather poorly compared to the alternative rules that we assess.
    Keywords: deficits,debts,debt management,fiscal rules,fiscale compact,golden rule
    JEL: E62 E63 H61 H68
    Date: 2013–07
  3. By: Lindhe, Tobias (Uppsala Center for Fiscal Studies); Södersten, Jan (Uppsala Center for Fiscal Studies)
    Abstract: This paper examines how the distortions caused by dividend taxation depend on whether or not shareholders can recover their original equity injections without being subject to the dividend tax. We point out the alternative assumptions in the literature on this, and we compare two different tax regimes, one where it is impossible for the firm to pay cash to its shareholders that is not taxed as dividends, the other where the shareholders are allowed a tax-free return of the original capital contributed through new issues. Our analysis shows that the regimes imply a substantial difference to our perceptions of the distortive effects of dividend taxation.
    Keywords: dividend taxation; share repurchases; equity trap; cost of capital; nucleus theory; growth path
    JEL: H24 H25 H32
    Date: 2013–09–02
  4. By: Yvan Guillemette; Jan Strasky
    Abstract: This working paper presents the background and the details of the simulations behind Box 1.4 of the May 2013 OECD Economic Outlook. A small simulation model is used to evaluate the contribution that the three pillars of the government’s strategy – fiscal consolidation, growth-boosting structural reforms and higher inflation – could make to reversing the rise in Japan’s public debt ratio, currently about 230% of GDP. The findings indicate that fiscal consolidation amounting to around 10 percentage points of GDP is necessary by 2020 to eliminate the primary deficit, as targeted in the current medium-term fiscal strategy. With moderately higher growth coming from increased female labour force participation and higher productivity growth, as well as inflation gradually rising to 2% thanks to unconventional monetary policy measures, the debt ratio would likely be put on a resolute downward trajectory by the end of this decade, although it is likely to remain around 200% of GDP in 2035.<P>L'inquiétante évolution de la dette publique au Japon<BR>Ce document de travail présente la toile de fond et les détails des simulations derrière l’encadré 1.4 du numéro de Mai 2013 des Perspectives économiques de l’OCDE. Un modèle de simulation de petite taille est utilisé pour évaluer dans quelle mesure les trois piliers de la stratégie gouvernementale – consolidation budgétaire, réformes structurelles pour doper la croissance et inflation plus élevée – pourraient contribuer à renverser l’évolution du ratio d’endettement publique au Japon, actuellement autour de 230% du PIB. Les résultats indiquent qu’environ 10 points de PIB de consolidation budgétaire sont nécessaires d’ici 2020 pour éliminer le déficit primaire, tel que prévue par la stratégie fiscale à moyen terme. Avec une croissance accrue due à une augmentation de la participation des femmes au marché du travail, et à une inflation plus élevée due aux mesures de politique monétaire non conventionnelles, le ratio d’endettement serait vraisemblablement sur une pente résolument descendante d’ici la fin de la décennie, bien qu’il demeurerait quand même autour de 200% en 2035.
    Keywords: growth, Japan, simulation, inflation, deficit, debt, consolidation, fiscal, reform, arrow, budget, projection, croissance, budget, Japon, simulation, inflation, déficit, projections, dette, consolidation, fiscal, réforme, flèche
    JEL: E63 H68
    Date: 2013–08–14
  5. By: Kai Daniel Schmid; Ulrike Stein
    Abstract: In Germany, inequality of net equivalized income increased noticeably in the first half of the new millennium. We aim to identify the main drivers of this rise in income inequality since the early 1990s. We provide a broad overview of the circumstances under which inequality evolved, i.e. which changes in the German economy are most likely to provide an explanation for changes in income concentration. To explain the development of the distribution of net equivalized income we analyze changes in the distribution of market income as well as shifts in the effectiveness of public redistribution mechanisms. We find that cyclical and structural changes in the labor market, the increasing relevance of capital income as well as the decreasing effectiveness of the public mechanisms of income redistribution are the main explanatory factors for the development of income inequality. In addition to this, we discuss several issues that are of high relevance for the distribution of economic resources but are not directly covered in the analysis of net equivalized income. Most significantly, the design of the tax and social security contributions burden as well as the rising relevance of value-added taxes have exhibited negative redistributive effects for low income households.
    Keywords: Income Inequality, Redistribution, SOEP
    JEL: D12 I30 J30
    Date: 2013
  6. By: Pierre LeBlanc; Stephen Matthews; Kirsti Mellbye
    Abstract: The height of the economic and financial crisis is now well past, but its aftermath remains wide-ranging, with many OECD countries still some way from restoring strong and sustainable economic growth. Even before the Great Recession OECD economies faced a range of challenges, most notably from globalisation, but also other challenges such as climates change, growing inequality and population ageing. Against this background, this paper discusses how tax policies have responded to fiscal and macroeconomic developments over the past five years and these longer-term structural economic developments.<P>Le paysage des politiques fiscales, cinq ans après la crise<BR>Le paroxysme de la crise économique et financière est loin derrière nous, mais les séquelles restent multiples, et de nombreux pays de l’OCDE ont encore du chemin à parcourir avant de retrouver une croissance économique forte et durable. Avant même la Grande récession, les économies de l’OCDE se heurtaient déjà à un éventail de problématiques telles que, notamment, les incidences de la mondialisation, mais aussi à des défis comme le changement climatique, le creusement des inégalités et le vieillissement de la population. Dans ce contexte, ce rapport explique comment les politiques fiscales se sont adaptées face aux évolutions budgétaires et macroéconomiques de ces cinq dernières années et face à ces bouleversements économiques structurels de plus long terme.
    Date: 2013–09–04
  7. By: H. Lehmann; M. G. Silvagni
    Abstract: This paper analyzes convergence in per capita gross regional product of Russia’s regions during the period 1995-2010, when regional data are available. Using a panel regression framework we find no evidence for beta-convergence. Instead we find divergence, which is, however, attenuated over time. Robustness checks that use regional real income instead of gross regional product confirm this outcome as do non-parametric estimates of convergence, namely estimates using Markov transition probability matrices and stochastic kernel plots of regional relative income. Decompositions of regional income and gross regional product also find no sigma-convergence of Russian regions. These decompositions point to the geographical concentration of extractive activities in the Urals and of business services and of the public administration in the Moscow area as the main culprit for this lack of convergence. They also establish that despite reforms to equalize provisions of public goods across Russia, the social services sector of the public administration, education and health still do not have the expected equalizing impact on regional income.
    JEL: O47 P25 R11 R12
    Date: 2013–09
  8. By: Scotchmer, Suzanne
    Abstract: The Bayh-Dole Act allows universities to exploit patents on their federally sponsored re- search. University laboratories therefore have two sources of funds: direct grants from sponsors and income from licensing. Tax credits for private R&D also contribute, because they increase the profitability of licensing. Because Bayh-Dole profits are a source of funds, the question arises how subsidies and Bayh-Dole profits fit together. I show that subsidies to the university can either "prime the pump" for spending out of Bayh-Dole funds, or can crowd it out. Because of crowding out, if the sponsor wants to increase university spending beyond the university's own target, it will end up funding the entire research bill, just as if there were no profit opportunities under the Bayh-Dole Act. A subsidy system that requires university matching can mitigate this problem.
    Keywords: research subsidy, tax credits, Bayh-Dole Act, matching grants, crowding out
    Date: 2013–05
  9. By: Jeffrey P. Thompson; Timothy M. Smeeding
    Abstract: This paper explores trends in inequality and poverty using both market and after-tax and transfer income in the period during and after the Great Recession (through 2011). Using market income (or wages), inequality and poverty rose sharply between 2008 and 2010. The primary exception is measures for the top of the distribution; annual wage and income shares of the top one percent dipped in 2008 and 2009. Including taxes and transfers, broad-based inequality measures also fell, and the poverty increase was muted. Tax and transfer policies lowered inequality and poverty, but those policies were not equal across the population. Poverty declined among the elderly, changed little among children, and rose sharply among the working-age. Inequality fell across the total population, but was unchanged among working-age households. Since 2009, as the economy has grown slowly, inequality has risen for all groups, and poverty remains high for the working-age.
    Date: 2013
  10. By: J Paul Dunne (SALDRU, School of Economics, University of Cape Town); Nan Tian (DPRU, School of Economics, University of Cape Town)
    Abstract: This paper examines the impact of military expenditure on economic growth on a large balanced panel, using an exogenous growth model and dynamic panel data methods for 106 countries over the period 1988-2010. A major focus of the paper is to consider the possibility group heterogeneity and non-linearity. Having estimated the model for all of the countries in the panel and finding that military burden has a negative effect on growth in the short and long run, the panel is broken down into various groupings based upon a range of potentially relevant factors and the robustness of the results is evaluated. The factors considered are different levels of income, conflict experience, natural resources abundance, openness and aid. The estimates for the different groups are remarkably consistent with those for the whole panel, providing strong support for the argument that military spending has adverse effects on growth. There are, however, some intriguing results that suggest that for certain types of countries military spending has no significant effect on growth.
    Keywords: Military expenditure; economic growth; conflict; development
    JEL: O11 H56
    Date: 2013
  11. By: Amadeo Piolatto; Matthew Rablen
    Abstract: The standard expected utility model of tax evasion predicts that evasion is decreasing in the marginal tax rate (the Yitzhaki Puzzle). The existing literature disagrees on whether prospect theory overturns the puzzle. We disentangle four distinct elements of prospect theory and find loss aversion and probability weighting to be redundant in endogenous specification of the reference level. These classes include, as special cases, the most common specifications in the literature. New specifications of the reference level are needed, we conclude.
    Keywords: prospect theory, tax evasion, Yitzhaki puzzle, stigma, diminishing sensitivity, reference dependence, endogenous audit probability, endogenous reference level
    JEL: H26 D81 K42
    Date: 2013–08
  12. By: Henrique S. Basso (Banco de España); James Costain (Banco de España)
    Abstract: This paper studies the effects of delegating control of sovereign debt issuance to an independent authority in a monetary union where public spending decisions are decentralized. The model assumes that no policy makers are capable of commitment to a rule. However, consistent with Rogoff (1985) and with the recent history of central banking, it assumes that an institution may be designed to have a strong preference for achieving some clear, simple, quantitative policy goal. Following Beetsma and Bovenberg (1999), we show that in a monetary union where a single central bank interacts with many member governments, debt is excessive relative to a social planner’s solution. We extend their analysis by considering the establishment of an independent fiscal authority (IFA) mandated to maintain long-run budget balance. We show that delegating sovereign debt issuance to an IFA in each member state shifts down the time path of debt, because this eliminates aspects of deficit bias inherent in democratic politics. Delegating to a single IFA at the union level lowers debt further, because common pool problems across regions’ deficit choices are internalized. The establishment of a federal government with fiscal powers over the whole monetary union would be less likely to avoid excessive deficits, because only the second mechanism mentioned above would apply. Moreover, the effective level of public services would be lower, if centralized spending decisions are less informationally efficient
    Keywords: fi scal authority, delegation, decentralization, monetary union, sovereign debt
    JEL: E61 E62 F41 H63
    Date: 2013–09
  13. By: anwar, saba; munir, kashif
    Abstract: One elusive question still attracts the attention of the researchers and policy makers whether government has a positive or negative role in the growth of a country. Washington consensus depressed the role of the government as an anchor of growth, while the post Washington consensus again focuses on the role of the government as the major player to revive growth. Theoretically, the linkages have been well established between the government spending and growth. However, the extensive use of cross country growth regressions in 1980s and 1990s highlighted the controversies in the empirical testing of these schools of thought using data for different countries and different techniques to prove their hypothesis. Most of these studies concentrated on the developed countries, while few try to explore the structure in developing countries. The question still remains, whether public sector promotes or retards growth.
    Keywords: Size of the Government, Quality of Institutions, Growth, SAARC Countries
    JEL: H50
    Date: 2013–08–30
  14. By: Shimazaki, Kenji
    Keywords: universal insurance coverage , policy impact , social insurance-based model , tax-based model , company-based health insurance
    Date: 2013–07–26
  15. By: Schroyen, Fred (Dept. of Economics, Norwegian School of Economics and Business Administration); Treich, Nicolas (Toulouse School of Economics)
    Abstract: Two wealth effects typically arise in any contest: i) wealth decreases the marginal cost of effort, but also ii) decreases the marginal benefit of winning the contest. In this paper, we introduce three types of strategic contest models depending on whether the first, second, or both wealth effects play a role: namely, a privilege contest, an ability contest, and a rent-seeking contest. Our theoretical analysis reveals that the effects of wealth and wealth inequality are strongly “contestdependent” and are complex in the sense that they depend on the decisiveness of the contest and on the higher-order derivatives of the utility functions of wealth. Our analysis thus does not support general claims that the rich should lobby more or that low economic growth and wealth inequality should lead to additional conflicts.
    Keywords: Conflict; contest; rent-seeking; wealth; risk aversion; lobbying; power; redistribution.
    JEL: C72 D72 D74 D81
    Date: 2013–07–09
  16. By: Wesselbaum, D.
    Abstract: This paper shows that government debt creates a so far neglected wealth effect that has sizable effects on business cycle fluctuations. We present a new channel through which governments can influence cyclical fluctuations generated by any type of shock and contribute to macroeconomic stability. We provide evidence for the United States that debt moves procyclical with output. Then, we build a Real Business Cycle model with Non-Ricardian agents and use rules to describe fiscal policy. We show that procyclical debt generates smaller fluctuations compared to countercyclical debt. The striking consequence is that classical Keynesian fiscal policy destabilizes the business cycle in our framework.
    Keywords: Debt, Fiscal Rules, Non-Ricardian Agents, SVAR.
    JEL: E32 E62 H3
    Date: 2013
  17. By: Mihaela van der Schaar (Electrictal Engineering, UCLA); Yuanzhang Xiao (Electrictal Engineering, UCLA); William Zame (Economics, UCLA)
    Abstract: The problem of efficient sharing of a resource is nearly ubiquitous. Except for pure public goods, each agent's use creates a negative externality; often the negative externality is so strong that efficient sharing is impossible in the short run. We show that, paradoxically, the impossibility of efficient sharing in the short run enhances the possibility of efficient sharing in the long run, even if outcomes depend stochastically on actions, monitoring is limited and users are not patient. We base our analysis on the familiar framework of repeated games with imperfect public monitoring, but we extend the framework to view the monitoring structure as chosen by a designer who balances the benefits and costs of more accurate observations and reports. Our conclusions are much stronger than in the usual folk theorems: we do not require a rich signal structure or patient users and provide an explicit online construction of equilibrium strategies.
    Date: 2013
    Abstract: In this paper we develop a theoretical model of the mechanisms behind the voluntary provision of public knowledge goods in coalitions in presence of social preferences. The model builds on the large empirical literature on voluntary production of pooled public knowledge goods, such as source code in communities of software developers or data voluntarily provided to open access data repositories. This literature shows that the provision of public goods is strongly dependent on the presence of social preferences such as group identity and social approval of individual pro-social attitudes. To integrate these effects in standard public good theory this paper builds a private-collective model of public good provision, where contribution to public knowledge goods generates both public and exclusive private benefits for the members of the coalition only. The analysis shows that, when the private benefit is important, the effect of the social preferences on the coalition formation is ambiguous. In particular, in the latter case, in presence of strong individual reputational effects, the public knowledge goods will be more difficult to produce. The comparison of the predictions of the theoretical model with the stylized facts of large scale surveys of Free/Libre/Open-Source (FLOSS) software developers confirms the results of the model.
    Keywords: coalition formation, private-collective model, social group identity, pro-social reputation, public knowledge goods, social dilemma
    JEL: H42 D71
    Date: 2013–09–03
  19. By: Haucap, Justus; Muck, Johannes
    Abstract: This is paper analyses the interrelationship between perceived journal relevance and reputation. Based on a survey of 705 members of the German Economic Association, we find a strong interrelationship between journal reputation and relevance where a journal's perceived relevance has a stronger effect on the journal's reputation than vice versa. Moreover, past journal ratings conducted by the Handelsblatt and the German Economic Association (GEA) directly affect journals' reputation among German economists and indirectly also their perceived relevance, but the effect on reputation is more than twice as large as the effect on perceived relevance. In general, citations have a non-linear impact on perceived journal reputation and relevance. While the number of landmark articles published in a journal increases reputation, an increase in the so-called H-index even tends to decrease a journal's perceived relevance, as long as this is not simultaneously reflected in a higher Handelsblatt- and/or GEA-rating. We also identify significant differences in the views on journal relevance and reputation between different age groups. --
    Keywords: Economic Journals,Academic Journals,Reputation,Relevance,Rigor,Economists,Fractional Response Models
    JEL: A11 A14 I23 L82
    Date: 2013
  20. By: Bettina Becker (School of Business and Economics, Loughborough University, UK)
    Abstract: This paper offers an extensive survey and a critical discussion of the empirical literature on the driving factors of R&D. These factors are subsumed under five broad types. The paper first summarises the key predictions from theory regarding each type's R&D effect. It then examines for which factors differences in the theoretical predictions can also be found in empirical studies, and for which factors the empirical evidence is more unanimous. As the focus is on the empirical literature, methodological issues are also highlighted. The major factor types identified in the literature are, individual firm or industry characteristics, particularly internal finance and sales; competition in product markets; R&D tax credits and subsidies; location and resource related factors, such as spillovers from university research within close geographic proximity, membership of a research joint venture and cooperation with research centres, and the human capital embodied in knowledge workers; and spillovers from foreign R&D. Although on balance there is a consensus regarding the R&D effects of most factors, there is also variation in results. Recent work suggests that accounting for nonlinearities is one area of research that may explain and encompass contradictory findings.
    Keywords: R&D; R&D policy; innovation policy; financial constraints; competition; public funding; knowledge spillovers.
    JEL: G20 G28 M15
    Date: 2013–08
  21. By: Eric Langlais (EconomiX, UMR CNRS 7235 and University of Paris Ouest-Nanterre-La Défense); Marie Obidzinski (CRESE, Université de Franche-Comté)
    Abstract: This paper revisits the issue of law enforcement and the design of monetary sanctions when the public law enforcer's incentives depart from those of a benevolent authority, which is the most frequent assumption made in the literature on crime deterrence. We first consider the case an elected enforcer. We find that when the harm generated by offenses is quite small relative to the average private benefits, equilibrium with weak enforcement/low sanction prevails. Instead, when the harm generated by offenses is high relative to the average private benefits, it is the equilibrium with strong enforcement/high sanctions that prevails. Therefore, we provide an explanation for the empirical puzzle highlighted by Lin(2007): elected enforcers punish major (minor) crimes more (less) severely than the benevolent social planer. The case of an appointed enforcer prone to rent seeking is also considered. The monetary sanction under rent seeking is closer to the utilitarian level, as compared with the one under election.
    Keywords: law enforcement, deterrence, monetary sanctions, punishment, electoral competition, democracy, rent seeking, dictature.
    JEL: D72 D73 H1 K14 K23 K4
    Date: 2013–09
  22. By: Niebel, Thomas; O'Mahony, Mary; Saam, Marianne
    Abstract: In this paper we report on new data on intangible investment at the level of 1-digit NACE industries of 10 EU countries. The data are constructed as a sectoral breakdown of the INTANInvest database, which contains measures of intangible investment at the level of the aggregate business sector. With the sectoral data we assess the contribution of intangibles to productivity growth based on growth accounting and econometric estimation of production functions. The growth accounting contribution of intangibles to labor productivity growth is generally highest in manufacturing and finance. The estimated output elasticity of intangibles lies between 0.1 and 0.2, considerably below values found in previous research using aggregate data. --
    Keywords: Intangible Assets,Labor Productivity,Growth Accounting,Panel Regressions
    JEL: E22 J24 O47
    Date: 2013
  23. By: D. Bakas; T. Panagiotidis; G. Pelloni
    Abstract: This paper re-examines Lilien’s sectoral shifts hypothesis for U.S. unemployment. We employ a monthly panel that spans from 1990:01 to 2011:12 for 48 U.S. states. Panel unit root tests that allow for crosssectional dependence reveal the stationarity of unemployment. Within a framework that takes into account dynamics, parameter heterogeneity and cross-sectional dependence in the panel, we show that sectoral reallocation is significant not only at the aggregate level but also at the state level. The magnitude and the statistical significance of the latter as measured by Lilien’s index increases when both heterogeneity and cross-sectional dependence are taken into account.
    JEL: C33 E24 E32 J21 R23
    Date: 2013–09

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