nep-pbe New Economics Papers
on Public Economics
Issue of 2014‒01‒24
twenty-two papers chosen by
Keunjae Lee
Pusan National University

  1. Tax Enforcement Policy and the Provision of Public Goods with the Presence of Tax Havens By Chu, Hsun
  2. Intellectual property box regimes: Effective tax rates and tax policy considerations By Evers, Lisa; Miller, Helen; Spengel, Christoph
  3. The effect of direct democracy on the level and structure of local taxes By Asatryan, Zareh; Baskaran, Thushyanthan; Heinemann, Friedrich
  4. Lessons Learned from Tax vs. Expenditure Based Fiscal Consolidation in the European Transition Economies By Rajmund Mirdala
  5. The output effects of systematic and non-systematic fiscal policy changes in Greece By Athanasios O. Tagkalakis
  6. Tax and the city: A theory of local tax competition and evidence for Germany By Janeba, Eckhard; Osterloh, Steffen
  7. Machines, Buildings, and Optimal Dynamic Taxes By Hakki Yazici; Ctirad Slavik
  8. Public Goods, Hidden Income, and Tax Evasion: Some Nonstandard Results from the Warm-Glow Model By Daniel M. Hungerman
  9. Tax policy and income inequality in the US, 1979-2007 By Bargain, Olivier; Dolls, Mathias; Immervoll, Herwig; Neumann, Dirk; Peichl, Andreas; Pestel, Nico; Siegloch, Sebastian
  10. Tax Benefits to Housing and Inefficiencies in Location and Consumption By David Albouy; Andrew Hanson
  11. Do Payroll Tax Cuts Raise Youth Employment? By Egebark, Johan; Kaunitz, Niklas
  12. Austerity plans and tax evasion : theory and evidence from Greece By Francesco Pappadà; Yanos Zylberberg
  13. Information Transmission within Federal Fiscal Architectures: Theory and Evidence By Axel Dreher; Kai Gehring; Christos Kotsogiannis; Silvia Marchesi
  14. A Theory of Income Taxation under Multidimensional Skill Heterogeneity By Casey Rothschild; Florian Scheuer
  15. The indirect effects of direct democracy: Local government size and non-budgetary voter initiatives By Asatryan, Zareh
  16. Environmental taxation, health and the life-cycle By Nathalie Mathieu-Bolh; Xavier Pautrel
  17. Fair and efficent taxation under partial control By Ooghe, Erwin; Peichl, Andreas
  18. The effects on energy saving from taxes on motor fuels: The Swedish case By Brännlund, Runar
  19. Fairly Sharing the Social Impact of the Crisis in Greece By Vassiliki Koutsogeorgopoulou; Manos Matsaganis; Chrysa Leventi; Jan-David Schneider
  20. Dividing the Pie in Brazil: Income Distribution, Social Policies and the New Middle Class By Jens Arnold; João Jalles
  21. Decentralization and the Welfare State: What Do Citizens Perceive? By Díaz Serrano, Lluís; Rodríguez Pose, Andrés
  22. Tobin tax and trading volume tightening: a reassessment By Olivier Damette; Stéphane Goutte

  1. By: Chu, Hsun
    Abstract: A tax competition model is presented to investigate the effects of tax havens on the public good provision. We show that when countries facing a rise in tax havens change their tax enforcement strategies in response, the existence of tax havens may result in a higher level of equilibrium public good provision as compared to the case with no tax havens. Accordingly, tax havens could be welfare-enhancing for non-haven countries. This result offers a possible explanation for the recent empirical evidence that the corporate tax revenues in high-tax countries have actually increased with the growth in the flow of FDI to tax havens.
    Keywords: tax havens; enforcement policy; tax competition
    JEL: F23 H26 H41
    Date: 2013–04
  2. By: Evers, Lisa; Miller, Helen; Spengel, Christoph
    Abstract: 11 European countries now operate IP Box regimes that provide substantially reduced rates of corporate tax for income derived from important forms of intellectual property. We incorporate these policies into forward-looking measures of the cost of capital, effective marginal tax rates and effective average tax rates. We show that the treatment of expenses relating to IP income is particularly important in determining the effective tax burden. A key finding is that regimes that allow expenses to be deducted at the ordinary corporate income tax rate, as opposed to the IP Box tax rate, may result in negative effective average tax rates and can thereby provide a subsidy to unprofitable projects. We assess the specific design features of different regimes against the possible policy aim of improving the incentives to undertake R&D investment in a country. While some countries have tried to tie the policy to real activities, others have designed a policy targeted at the income streams associated with intellectual property. A key concern is the role that IP Boxes may play in increased, and possibly harmful, tax competition between European countries. --
    Keywords: corporate taxation,effective tax rate,tax incentive,patent box,innovation box,preferential tax rate
    JEL: H25 H32 H87 K34 O38
    Date: 2013
  3. By: Asatryan, Zareh; Baskaran, Thushyanthan; Heinemann, Friedrich
    Abstract: We study the effect of direct democracy on local taxation. Our setting is the German federal state of Bavaria, where in 1995 a state-wide referendum introduced the possibility to initiate direct democratic legislation into the local government code. Relying on a sample of all Bavarian municipalities over the period 1980-2011, we hypothesize that complementing a representative form of government with direct democratic elements leads to (i) higher local tax rates and (ii) a shift of the local tax mix from taxes with broader (property taxes) to taxes with narrower bases (business taxes). For identification, we implement selection on observables and difference-in-discontinuity designs. Our results show that both actual direct democratic activity measured by the number of initiatives and the ease with which direct democratic legislation can be implemented measured by signature and quorum requirements increase local tax rates and shift the tax mix toward taxes with narrower bases. --
    Keywords: direct democracy,taxation,regression discontinuity,Bavaria
    JEL: D72 D78 H71
    Date: 2014
  4. By: Rajmund Mirdala
    Abstract: European Union member countries are currently exposed to negative implications of the economic and debt crisis. Questions associated with disputable implications of fiscal incentives seem to be contrary to the crucial need of the effective fiscal consolidation that is necessary to reduce excessive fiscal deficits and high sovereign debts. While challenges addressed to the fiscal policy and its anti-cyclical potential rose steadily but not desperately since the beginning of the economic crisis, the call for fiscal consolidation became urgent almost immediately and this need significantly strengthen after the debt crisis contagion flooded Europe. In the paper we provide an overview of main trends in public budgets and sovereign debts in ten European transition economies during last two decades. We identify episodes of successful and unsuccessful (cold showers versus gradual) fiscal (expenditure versus revenue based) consolidations by analyzing effects of improvements in cyclically adjusted primary balance on the sovereign debt ratio reduction. We also estimate VAR model to analyze effects of fiscal shocks (based on one standard deviation in total expenditure, direct and indirect taxes) to real output. It is expected that responses of real output to different types of (consolidating) fiscal shocks may vary and thus provide more precise ideas about a feasibility (i.e. side effects on the macroeconomic performance) of expenditure versus revenue based fiscal consolidation episodes. Economic effects of fiscal consolidating adjustments are evaluated for two periods (pre-crisis and extended) to reveal crisis effects on fiscal consolidation efforts.
    Keywords: fiscal policy adjustments, fiscal consolidation, cyclically adjusted primary balance, government expenditures, tax revenues, unrestricted VAR, Cholesky decomposition, SVAR, structural shocks, impulse-response function
    JEL: C32 E62 H20 H50 H60
    Date: 2013–09–15
  5. By: Athanasios O. Tagkalakis (Bank of Greece)
    Abstract: This paper investigates the effects of systematic (or rules-based) and non-systematic (exogenous) fiscal policy changes on output growth in Greece, focusing also on the composition of fiscal policy. Exogenous fiscal policy changes are associated with Keynesian responses (with the exception of net transfers and VAT). Although systematic government spending cuts aiming at improving fiscal performance tend to have a Keynesian effect on output growth in the short term, they ultimately result in a non-Keynesian response, raising output growth. Systematic direct tax hikes, aiming at correcting fiscal imbalances, can have positive medium to long term growth effects.
    Keywords: Fiscal rules; output growth; exogenous; systematic policy responses
    JEL: E6 H6 H3
    Date: 2013–11
  6. By: Janeba, Eckhard; Osterloh, Steffen
    Abstract: Despite the well-developed empirical literature on local tax competition, little is known about the actual spatial structure of inter-municipal competition. Assuming that competition takes place only among neighbours (as in the empirical literature) is at odds with the theoretical approaches where all jurisdictions compete simultaneously. In this paper we use a survey conducted among mayors in the German state of Baden-Württemberg to show that the perceived intensity of competition for firms varies considerably between jurisdictions and can mainly be explained by the size and location of the jurisdiction. Based on these findings, we develop a sequential tax competition model in which urban centres compete with other urban centres and rural jurisdictions in their own neighbourhood. This model predicts that larger jurisdictions do not necessarily rely more on capital taxes; in case they face strong competition with more distant competitors, larger cities even have lower capital taxes. In addition, we discuss how the model compares to a standard simultaneous approach and show that results from our sequential model are in line with trends in local taxation in Baden-Württemberg. --
    Keywords: local tax competition,survey,intensity of competition,asymmetric tax competition
    JEL: H71 H73 H77
    Date: 2013
  7. By: Hakki Yazici (Sabanci University); Ctirad Slavik (Goethe University in Frankfurt)
    Abstract: In this paper, we take a step in this direction. Our theory confirms the optimality of differential capital asset taxation, but with an important caveat. Capital assets can be divided into two groups based on the tax treatment they receive in the U.S. tax code: structures and equipment. As documented by Gravelle (2011), in the current U.S. tax code the effective tax rate on equipment capital is on average 6% below the effective tax rate on structure capital. In contrast, our theory suggests that capital equipment should be taxed at a higher rate than capital structures. We conduct a quantitative exercise to assess the quantitative importance of optimal differential capital taxation. In our baseline calibration we find that the tax rate on capital equipments should be at least 19% higher than the tax rate on structure capital.
    Date: 2013
  8. By: Daniel M. Hungerman
    Abstract: A large literature explores crowd out in situations where public goods are jointly provided; work in this area typically depicts a tax system where individuals take taxes as given. But in some settings, such as those in developing economies, efforts to evade or avoid taxes may be widespread. Using the canonical warm-glow model, this paper considers joint pubic-good provision in a setting where individuals can evade taxes by hiding their income. The model's implications change significantly in this setting: with hidden income, stronger warm glow will lead to greater crowd out, not less. Using research on crowd out and inter-family transfers, I present suggestive evidence that the model's results may help to reconcile divergent estimates of crowd out in the literature.
    JEL: H26 H41 O17
    Date: 2014–01
  9. By: Bargain, Olivier; Dolls, Mathias; Immervoll, Herwig; Neumann, Dirk; Peichl, Andreas; Pestel, Nico; Siegloch, Sebastian
    Abstract: We assess the effects of U.S. tax policy reforms on inequality by applying a new decomposition method allowing us to disentangle the policy effect from changing market incomes. Over the period 1979-2007, the cumulative policy effect aggravated inequality by increasing the income share of the top 20% in contrast to the middle class' share. The tax policy effect accounts for up to 29% of the total change in inequality; its contribution increases up to 41% if we take into account behavioral responses. While Republican policymakers increased inequality especially at the top, Democrats increased the income share of the bottom 80%. --
    Keywords: Tax policy,Inequality,Redistribution,Partisan Politics,Political Economy
    JEL: H23 H31 H53 P16
    Date: 2014
  10. By: David Albouy; Andrew Hanson
    Abstract: Tax benefits to owner-occupied housing provide incentives for housing consumption, offsetting weaker disincentives of the property tax. These benefits also help counter the penalty federal taxes impose on households who work in productive high-wage areas, but reinforce incentives to consume local amenities. We simulate the effects of these benefits in a parameterized model, and determine the consequences of various tax reforms. Reductions in housing tax benefits generally reduce inefficiency in consumption, but increase inefficiency in location decisions, unless they are accompanied by tax-rate reductions. The most efficient policy would eliminate most tax benefits to housing and index taxes to local wage levels.
    JEL: H24 H77 R13 R21 R31
    Date: 2014–01
  11. By: Egebark, Johan (Research Institute of Industrial Economics (IFN)); Kaunitz, Niklas (Department of Economics, Stockholm University)
    Abstract: In 2007, the Swedish employer-paid payroll tax was cut on a large scale for young workers, substantially reducing labor costs for this group. Using Difference-in-Differences paired with exact matching, we estimate a small impact, both on employment and on wages, implying a labor demand elasticity for young workers at around –0.31. Since the tax reduction applied also to existing employments, the cost of the reform was sizable, and the estimated cost per created job is at more than four times that of directly hiring workers at the average wage. Hence, we conclude that payroll tax cuts are an inefficient way to boost employment for young individuals.
    Keywords: Youth unemployment; Payroll tax; Tax subsidy; Labor costs; Exact matching
    JEL: H25 H32 J23 J38 J68
    Date: 2014–01–03
  12. By: Francesco Pappadà; Yanos Zylberberg
    Abstract: The austerity plans implemented in Greece in 2010 have yielded lower than expected increases in tax receipts. We argue that this has been the result of the arbitrage that firms face when choosing to declare their activity. A tax hike has a direct effect on the degree of tax evasion, and an indirect one through credit markets. A tax increase tightens the credit constraints of firms and depresses even further their incentives to be transparent. Using a dataset of about 30'000 Greek firms per year over the period 2002-2011, we provide evidence that firms adjust their declared profitability, and this adjustment depends on the tax burden and their need for credit. We then calibrate our model and show that leakages due to tax evasion are quite high : a 21% increase in tax rates only delivers a 7% increase in tax receipts. The response of transparency generates an additional investment slack which is the result of a contracting demand for credit by small and medium size firms induced by tax evasion.
    Keywords: tax evasion; austerity plans; credit frictions
    JEL: E44 O17 H26
    Date: 2014–01
  13. By: Axel Dreher (Heidelberg University); Kai Gehring (University of Göttingen); Christos Kotsogiannis (University of Exeter); Silvia Marchesi (University of Milan Bicocca and Centro Studi Luca d’Agliano)
    Abstract: This paper explores the role of information transmission and misaligned interests across levels of government in explaining variation in the degree of decentralization across countries. Within a two-sided incomplete information principal-agent framework, it analyzes two alternative policy-decision schemes –‘decentralization’ and ‘centralization’– when ‘knowledge’ consists of unverifiable information and the quality of communication depends on the conflict of interests between the government levels. It is shown that, depending on which level of policy decision-making controls the degree of decentralization, the extent of misaligned interests and the relative importance of local and central government knowledge affects the optimal choice of policy-decision schemes. The empirical analysis shows that countries’ choices depend on the relative importance of their private information and the results differ significantly between unitary and federal countries.
    Keywords: delegation, centralization, communication, fiscal decentralization, state and local government
    JEL: H7 H77 D82 D83 C23
    Date: 2013–10–31
  14. By: Casey Rothschild; Florian Scheuer
    Abstract: We develop a unifying framework for optimal income taxation in multi-sector economies with general patterns of externalities. Agents in this model are characterized by an N-dimensional skill vector corresponding to intrinsic abilities in N potentially externality-causing activities. The private return to each activity depends on individual skill and an aggregate activity-specific return, which is a fully general function of the economy-wide distribution of activity-specific efforts. We show that the N-dimensional heterogeneity can be collapsed to a one-dimensional, endogenous statistic sufficient for screening. The optimal tax schedule features a multiplicative income-specific correction to an otherwise standard tax formula. Because externalities change the relative returns to different activities, corrective taxes induce changes in the across-activity allocation of effort. These relative return effects cause the optimal correction to diverge, in general, from the Pigouvian tax that would align private and social returns. We characterize this divergence and its implications for the shape of the tax schedule both generally and in a number of applications, including externality-free economies, increasing and decreasing returns to scale, zero-sum activities such as bargaining or rent extraction, and positive or negative spillovers.
    JEL: D5 D6 D8 E2 H2 J3
    Date: 2014–01
  15. By: Asatryan, Zareh
    Abstract: Recently a wide and empirically-backed consensus has emerged arguing that direct democratic control over government's spending decisions through initiatives and referenda constrains government size. But what happens if budgetary matters are excluded from the voters' right of the initiative? I study this question by extending the analysis to German direct democracy reforms of the mid-1990s, which granted voters wide opportunities to initiate referenda on local issues, but neither the right, nor the responsibility of voting on the implied costs of these initiatives. By exploiting a novel dataset containing detailed information on close to 2,300 voter initiatives in the population of around 13,000 German municipalities from 2002 to 2009, I show that in this sample and in contrast to the Swiss and US evidence direct democracy causes an expansion of local government size by up to 8% in annual per capita expenditure and revenue per observed initiative (on economic projects). The main empirical challenge is the endogeneity of voters' unobserved preferences which simultaneously determine both their propensity towards exploiting their direct democracy rights and their preferences for local public policies. To address this issue I use state- and municipality-varying legislative thresholds on the minimum number of signatures required to initiate referenda and the time to collect these signatures as strong and exogenous instruments for observed initiatives. --
    Keywords: direct democracy,local public finances,Germany
    JEL: D72 D78 H70
    Date: 2014
  16. By: Nathalie Mathieu-Bolh (University of Vermont - University of Vermont); Xavier Pautrel (LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - Université de Nantes : EA4272)
    Abstract: We build a model that takes into consideration the evolution of health over the life cycle and its consequences on individual optimal choices. In this framework, the effect of environmental taxation are not limited to the traditional negative crowding-out and positive productivity effects. We show that environmental taxation generates new general equilibrium effects ignored by previous contributions. Indeed, as the environmental tax improves the health profile over the life-cycle, it influences saving, labor supply, retirement and investment in health. We also show that whether those general equilibrium effects are positive or negative for the economy crucially depends on the degree of substitutability between young and old labor. We complete our theoretical analysis with numerical examples. Within the range of our parameters, it appears that ignoring those general equilibrium effects results in significantly understating the negative of environmental tax- ation on output per capita and welfare.
    Keywords: Health; environmental policy; economic growth
    Date: 2014–01–14
  17. By: Ooghe, Erwin; Peichl, Andreas
    Abstract: We study fair and efficient tax-benefit schemes based on income and non-income factors under partial control. Partial control means that each factor is a specific mixture of unobserved ability (randomly drawn by nature) and effort (chosen by individuals who differ in tastes). Factors differ in the degree of control, ranging from no control (if only ability matters) to full control (if only effort matters). Fairness requires to compensate individuals for differences in well-being caused by differences in abilities, while at the same time preserving well-being differences caused by taste differences. We discuss first the general properties of fair and efficient tax-benefit schemes. Next, we study two special cases income taxation and tagging in detail. Finally, we derive testable conditions for the general case and discuss the empirical implementation. --
    Keywords: fairness,redistribution,taxation,tagging,equality of opportunity
    JEL: D6 H2 I3
    Date: 2014
  18. By: Brännlund, Runar (CERE, Umeå University)
    Abstract: The objective with this study is to analyze the role of energy taxes for energy efficiency in the Swedish transport sector. In particular we analyze how large share the Swedish energy tax will contribute to the overall Swedish target for energy efficiency set by the EU directive for energy efficiency. To obtain the objective a dynamic demand model for gasoline and diesel is estimated, based on Swedish time series data from 1976 to 2012. The results from the demand model shows that a higher tax on gasoline results in lower gasoline demand, but leads to an increase in diesel consumption, and vice versa. A removal of the energy and CO2 tax, lowering both the gasoline and diesel consumer price, leads to an overall increase in energy use, but also to an increase in the share for diesel in fuel use. Concerning energy savings the simulation results show that the current Swedish energy and CO2 taxes are sufficient for achieving the EU stipulated target, and hence no additional measures has to be taken.
    Keywords: energy efficiency; gasoline; diesel; cointegration
    JEL: Q41
    Date: 2013–10–30
  19. By: Vassiliki Koutsogeorgopoulou; Manos Matsaganis; Chrysa Leventi; Jan-David Schneider
    Abstract: Poverty and income inequality have worsened since the onset of the crisis. While the design of fiscal measures has mitigated the burden sharing of fiscal adjustment, as the recession has deepened unemployment has risen, earnings have declined and social tensions have increased. Getting people back to work and supporting the most vulnerable remain priorities for inclusive growth and distributing the costs of adjustment equitably. Within the limited fiscal space this calls for continued reforms in targeting social support, especially housing benefits, extending unemployment insurance and introducing a means-tested minimum income. Sustaining universal access to good health care is also essential. Well-designed activation policies are important to bring the unemployed, especially the young, to work. At the same time, it is important to strengthen the effectiveness of the labour inspection to ensure full enforcement of the labour code. Decisive steps to contain tax evasion are also critical to social fairness. Reforms by the government in many of these areas are welcome and need to continue. Partager équitablement les incidences sociales de la crise en Grèce La pauvreté et les inégalités de revenus se sont aggravées depuis le déclenchement de la crise. Certes, certaines mesures budgétaires ont permis d’alléger le fardeau de l’ajustement, mais à mesure que la récession s’amplifiait, le chômage a augmenté, les revenus ont diminué et les tensions sociales se sont avivées. Les mesures de retour à l’emploi et l’aide aux plus vulnérables restent des priorités pour assurer une croissance inclusive et répartir équitablement les coûts de l’ajustement. Compte tenu de l’étroitesse de la marge de manoeuvre budgétaire, cela suppose de poursuivre les réformes pour mieux cibler l’aide sociale, notamment les prestations au logement, étendre l’assurance-chômage et introduire un revenu minimum sous conditions de ressources. Il est également essentiel d’asseoir durablement un accès universel à des soins de santé de qualité. Par ailleurs, il est important d’engager des politiques actives du marché du travail bien conçues pour insérer les chômeurs, en particulier les jeunes, sur le marché du travail. Parallèlement, il faut renforcer l’efficacité le mécanisme d’inspection du travail pour garantir une application intégrale du code du travail. Enfin, des mesures décisives de lutte contre la fraude fiscale sont aussi indispensables à l’équité sociale. Les réformes adoptées par les pouvoirs publics dans nombre de ces domaines sont les bienvenues et doivent être poursuivies.
    Keywords: Greece, health care, benefits, poverty, welfare, activation policies, labour market, inequality, distributional impact, labour inspection, pensions, tax evasion, targeting, ciblage, santé, effet de redistribution, inspection du travail, marché du travail, évasion fiscale, inégalité, politique d'activation, allocations, pauvreté, pensions, Grèce
    JEL: D31 D63 I1 I3 J26 J6
    Date: 2014–01–09
  20. By: Jens Arnold; João Jalles
    Abstract: Brazil has made remarkable progress in reducing poverty and inequality. This reduction is explained by strong growth but also by effective social policies. Besides growth, public services and cash transfers have played the biggest role, the latter notably through the successful “Bolsa Familia” programme. Among public services, improved access to education has played a major role, allowing more Brazilians to move into better-paid jobs. However, shortages in physical school infrastructure are limiting the hours of instruction that students receive. The high drop-out rate needs to be reduced through early interventions such as expanding early-childhood education, by reducing grade-repetition and through more tailored support for those at risk. The quality of teaching could also be raised through more in-service teacher training and stronger performance incentives for teachers. Performance of public services devoted to health and transports has been mixed. Public health services are widely available but suffer from underfunding and training places for medical staff need to be expanded. The public urban transport system suffers from a shortage of investment which is urgently needed to upgrade capacity. Regarding cash transfers, the success of “Bolsa Familia” and new programmes put in place under the umbrella of the “Brasil sem Miseria” programme is remarkable but transfer payments remain too heavily focused on pension benefits. Giving more priority to “Bolsa Familia” and “Brasil sem Miseria” while limiting the real growth of pension expenditures in the future would improve the effectiveness of social expenditures for reducing poverty and inequality. This Working Paper relates to the 2013 OECD Economic Survey of Brazil ( Partager la richesse nationale au Brésil : la distribution des revenus, les politiques sociales et la nouvelle classe moyenne Le Brésil a accompli des progrès remarquables en termes de réduction de la pauvreté et des inégalités. Cela tient au dynamisme de la croissance mais aussi à l'efficacité des politiques sociales. En dehors de la croissance, ce sont les services publics et les transferts monétaires qui ont été les facteurs les plus importants, notamment les seconds dans le cadre du programme Bolsa Familia, qui a été couronné de succès. S'agissant des services publics, l'amélioration de l'accès à l'éducation a joué un rôle majeur, en permettant à davantage de Brésiliens d'obtenir des emplois mieux payés. Néanmoins, les problèmes de pénurie d'infrastructures scolaires limitent le nombre d'heures d'enseignement dont bénéficient les élèves. Il faut abaisser les taux élevés d'abandon des études par le biais d'interventions précoces consistant par exemple à développer l'éducation préscolaire, ainsi qu'en réduisant les taux de redoublement et en apportant un soutien plus individualisé aux élèves à risque. On pourrait également rehausser la qualité de l'enseignement en développant la formation en cours d'emploi des enseignants et en renforçant les mesures d'incitation qui récompensent leurs bons résultats. Le bilan des services publics est mitigé dans les domaines de la santé et des transports. Les services de santé publique sont largement accessibles mais ils pâtissent d'un financement insuffisant, et le nombre de places offertes pour la formation du personnel médical doit être accru. Le système public de transports urbains souffre d'un manque d'investissements, alors qu'il est urgent de consacrer des ressources à la modernisation des capacités. S'agissant des transferts monétaires, la réussite de Bolsa Familia et des nouveaux dispositifs mis en place dans le cadre global du programme Brasil sem Miseria est remarquable, mais les prestations de retraite représentent toujours une proportion excessive des transferts sociaux. En accordant une plus grande importance au programme Brasil sem Miseria en général et à Bolsa Familia en particulier, tout en limitant la croissance réelle des dépenses de retraite à l'avenir, les autorités renforceraient l'efficacité des dépenses sociales en termes de réduction de la pauvreté et des inégalités. Ce Document de travail se rapporte à l’Étude économique de l’OCDE du Brésil, 2013 (
    Keywords: health, education, tax, pensions, wages, distribution, transfers, santé, transferts, impôt, éducation, pensions, salaires, distribution des revenus
    JEL: D3 H2 H4 I1 I2 I3 J3
    Date: 2014–01–09
  21. By: Díaz Serrano, Lluís; Rodríguez Pose, Andrés
    Abstract: Trust in public institutions and public policies are generally perceived as a precondition for economic recovery in times of recession. Recent empirical evidence tends to find a positive link between decentralization and trust. But our knowledge about whether decentralization – through increased trust – improves the perception of the delivery and effectiveness of public policies is still limited. In this paper we estimate the impact of fiscal and political decentralization on the perception of the state of the education system and of health services, by using the 2002, 2004, 2006 and 2008 waves of the European social survey. The analysis of the views of 160,000 individuals in 31 European countries indicates that while the effect of fiscal decentralization on the perception of the state of the health and education system is limited, political decentralization clearly affects citizen’s satisfaction with education and health delivery. The influence of political decentralization, however, is highly contingent on whether we consider the capacity of the local or regional government to exercise authority over its citizens (self-rule) or to influence policy at the national level (shared-rule). Keywords: Education, health, satisfaction, fiscal and political decentralization, Europe. JEL codes: H11, H77
    Keywords: Descentralització administrativa, Finances autonòmiques, Ensenyament públic, Salut pública, Satisfacció, Relacions intergovernamentals, 338 - Situació econòmica. Política econòmica. Gestió, control i planificació de l'economia. Producció. Serveis. Turisme. Preus,
    Date: 2013
  22. By: Olivier Damette (BETA - Bureau d'économie théorique et appliquée - CNRS : UMR7522 - Université de Strasbourg - Université Nancy II); Stéphane Goutte (LED - Laboratoire d'Economie Dionysien - Université Paris VIII - Vincennes Saint-Denis : EA3391)
    Abstract: This article extends the previous literature on the Tobin tax and financial transaction tax. We investigate the linkages between trading volumes and transaction costs using both a linear and a nonlinear methodology. In stark contrast with previous studies, we consider the possibility that our model may exhibit threshold effects or regime dependency by estimating a Markov Switching (MS) model. This paper is the first contribution to specify the trading volume of the Forex through different (low and high volatility) regimes. Our empirical investigation looks at the EUR/USD currency market. Our results show evidence of nonlinear patterns for trading volumes and transaction costs on the Forex. The Tobin tax would not have a monotonic impact on trading activity across market conditions. However, the change in elasticity between low and high volatility regimes is slight (-0.17 versus -0.21). We may suggest that the low-variance regime might be the fundamentalist regime and the high- variance regime (lower Tobin tax elasticity) might be the chartist regime. This study is a first step towards understanding which categories of agents dominate the market under the various market regimes and how they would react to the introduction of a tax. This means our results are consistent with Tobin's underlying thinking (1974, 1978, 1996). Since a tax would penalize chartists more than fundamentalists, it could reduce exchange rate volatility.
    Keywords: Tobin tax, trading volume, Forex, transaction costs, global financial crisis, Markov switching.
    Date: 2014–01–09

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