nep-pbe New Economics Papers
on All new papers
Issue of 2014‒09‒08
twenty-one papers chosen by
Keunjae Lee
Pusan National University

  1. Ideology and Taxation in Latin America By Ernesto H. Stein; Lorena Caro
  2. Local Public Finances and Municipal Reform in Finland By Christophe André; Clara García
  3. Tax Reforms in Latin America in an Era of Democracy By Diego Focanti; Mark Hallerberg; Carlos Scartascini
  4. Inheritance Taxation in Sweden, 1885–2004: The Role of Ideology, Family Firms and Tax Avoidance By Henrekson, Magnus; Waldenström, Daniel
  5. Taxation and Labour Supply: Evidence from a Representative Population Survey By Bernd Hayo; Matthias Uhl
  6. Tax Compliance and Enforcement in the Pampas: Evidence from a Field Experiment By Lucio Castro; Carlos Scartascini
  7. Measuring the Political Economy of Tax Lawmaking: A Methodology and Evidence from Argentina By Javier Alvaredo; Alejandro Bonvecchi; Ernesto Calvo; Maximiliano Castillo; Juan Carlos Gomez
  8. THE EFFECT OF GREEN TAXATION AND ECONOMIC GROWTH ON ENVIRONMENT HAZARDS: THE CASE OF MALAYSIA By Loganathan, Nanthakumar; Muhammad Shahbaz; Roshaiza Taha
  9. Are Environmental Taxes Affected by Legislatures` Ideological Positions? By Sebastian Miller; Mauricio Vela
  10. Stimulus and Fiscal Consolidation: The Evidence and Implications By Dean Baker; David Rosnick
  11. The Signaling Role of Corporate Social Responsibility By Blumkin, Tomer; Margalioth, Yoram; Sharoni, Adi
  12. The Economic Effects of Constitutions: Do Budget Institutions Make Forms of Government More Alike? By Martin Ardanaz; Carlos Scartascini
  13. Fiscal Contractions in Eurozone in the Years 1995-2013. Can Non-Keynesian Effects Be Helpful in Future Deleverage Process? By Adam P. Balcerzak; Michal Bernard Pietrzak; Elzbieta Rogalska
  14. The 2009 recovery act: stimulus at the extensive and intensive labor margins By Dupor, William D.; Mehkari, M. Saif
  15. Why has Inequality in Germany not Risen Further After 2005? By Miriam Rehm; Kai Daniel Schmid; Dieter Wang
  16. An Exploration of the Determinants of the Subjective Well-being of Americans During the Great Recession By Aida Caldera Sánchez; Caroline Tassot
  17. Decentralization and Accountability: The Curse of Local Underdevelopment By Fabiana Machado
  18. The Debt Brake in the Eyes of the German Population By Bernd Hayo; Florian Neumeier
  19. Income inequality in Latin America: Recent decline and prospects for its further reduction By Giovanni Andrea Cornia
  20. Strengthening Competition in Poland By Balázs Égert; Antoine Goujard
  21. Preschool Education in Brazil: Does Public Supply Crowd Out Private Enrollment? By Paulo Bastos; Odd Rune Straume

  1. By: Ernesto H. Stein; Lorena Caro
    Abstract: This paper examines the impact of ideology on tax revenues in Latin America, using a panel of 17 countries from 1990 to 2010. As a first approach, a fixed- effects model is used to identify the impact of ideology on taxation; left-leaning governments are associated with increases in total tax revenues and income tax revenues of 2. 1 and 1. 3 percent of GDP, respectively. There is no effect on revenues from VAT or social security taxes. To deal with endogeneity problems, an event study and a difference in difference methodology are used to track the behavior of revenues around the time of the shifts to the left. Tax revenues and income tax revenues increase by 1. 5 and 0. 8 percent of GDP when comparing revenues immediately before and after the shift in ideology. The pattern of tax revenues around ideological shifts suggests that the effects are causal.
    JEL: H20 P16
    Date: 2013–05
    URL: http://d.repec.org/n?u=RePEc:idb:wpaper:idb-wp-407&r=pbe
  2. By: Christophe André; Clara García
    Abstract: Finnish municipalities enjoy ample fiscal autonomy and provide or arrange the provision of a large share of public services. In recent years, their spending and debt has been increasing steadily, especially because of population ageing and increases in the cost of health care and social services. Furthermore, small municipalities are often struggling to align service provision with national standards. The government has launched a reform to create more efficient municipalities through voluntary mergers. Both international experience and costs per capita across Finnish municipalities suggest an optimal size for municipalities of over 20 000 inhabitants, at least outside remote areas. As mergers are to be voluntary, the outcome of the reform remains uncertain. If merger plans prove insufficient to achieve efficient public service provision, the government could impose mergers on smaller municipalities, especially around the main urban areas. Responsibilities of smaller municipalities could be scaled back in all functions where economies of scale and scope can be achieved. Policies also need to be flexible enough to allow restructuring of services after mergers. Partnerships between public or private entities to provide services could be developed further in some areas. Finally, the tax structure and fiscal rules should be enhanced to ensure long-term fiscal sustainability. This Working Paper relates to the 2014 OECD Economic Survey of Finland (www.oecd.org/eco/surveys/economicsurvey- finland.htm). Les finances publiques locales et la réforme des communes en Finlande Les communes finlandaises jouissent d’une grande autonomie budgétaire et fournissent elles-mêmes, ou font fournir, une large part des services publics. Ces dernières années, leurs dépenses et leur endettement ont augmenté de manière sensible, en particulier à cause du vieillissement de la population et de la hausse des soins de santé et des services sociaux qui en découle. En outre, les petites communes ont souvent du mal à fournir des services à la hauteur des normes nationales. Le gouvernement a lancé une réforme destiné à créer des communes plus efficientes grâce à des fusions volontaires. Si l’on se fonde sur l’expérience internationale comme sur les coûts par habitant dans les communes finlandaises, il apparaît que pour une commune, la taille optimale correspondrait à une population supérieure à 20 000 habitants, au moins en dehors des zones isolées. Comme les fusions vont être volontaires, l’issue de la réforme reste incertaine. Si les projets de réformes ne suffisent pas à déboucher sur une prestation efficiente de services publics, le gouvernement pourrait imposer des fusions aux communes les plus petites, en particulier autour des grandes zones urbaines. Les responsabilités des communes les plus petites pourraient être réduites dans tous les domaines où il est possible d’obtenir des économies d’échelle et de portée. L’action publique doit par ailleurs être suffisamment souple pour permettre une restructuration des services après les fusions. Des partenariats entre entités publiques et privées pour la fourniture de services pourraient être développés dans certains domaines. Enfin, la structure fiscale et les règles budgétaires devraient être améliorées pour garantir la viabilité budgétaire à long terme. Ce Document de travail se rapporte à l’Étude économique de l’OCDE de la Finlande, 2014 (www.oecd.org/fr/eco/etudes/etude-econom ique-finlande.htm).
    Keywords: fiscal equalisation, fiscal federalism, fiscal rules, efficiency, decentralisation, local taxation, municipal mergers, local government, public services, fiscalité locale, péréquation, règles budgétaires, fusions municipales, gouvernement local, fédéralisme budgétaire, Finlande, décentralisation, efficacité, services publics
    JEL: H11 H21 H41 H42 H71 H72 H74 H75 H77
    Date: 2014–06–03
    URL: http://d.repec.org/n?u=RePEc:oec:ecoaaa:1121-en&r=pbe
  3. By: Diego Focanti; Mark Hallerberg; Carlos Scartascini
    Abstract: The literature on taxes and public finance generally focuses on revenues, an easily observable and generally available variable, as the observable measure of tax policy. Still, revenues depend on many determinants other than the political will and policy objectives of the government. It is therefore important, when studying the politics of taxation, to evaluate specific changes to the tax code such as rates, bases and exemptions. With the underlying goal of exploring the political process and the determinants of tax policy, this paper compiles a novel and highly comprehensive database of tax reforms for Latin America between 1990 and 2004. The paper present a description of the database as well as the stylized facts of tax reforms in Latin America. Examples of the database’s uses are discussed, as is motivation for future research.
    JEL: D72 H2 K34
    Date: 2013–12
    URL: http://d.repec.org/n?u=RePEc:idb:wpaper:idb-wp-457&r=pbe
  4. By: Henrekson, Magnus (Research Institute of Industrial Economics); Waldenström, Daniel (Uppsala Center for Fiscal Studies)
    Abstract: This paper studies the evolution of the modern Swedish inheritance taxation from its introduction in 1885 to its abolishment in 2004. Our contribution is twofold. First, we compute annual effective inheritance tax rates for differently sized bequests and different types of inherited assets (non-firm wealth and family firm equity), ac-counting for all relevant exemptions, deductions and valuation discounts. Second, we try to account for the changes in inheritance taxation. Ideology rather than mass mobili-zation or revenue maximization appears to drive the sharp tax increases of the 1930s through the 1960s. We document increased opportunities for tax planning for the wealthy, in particular a series of drastic tax cuts on inherited family firms from the 1970s onwards. This rise of avoidance opportunities for the rich, while more and more middle-class heirs paid notable inheritance taxes, contributed to a loss of legitimacy for the tax and its ultimate repeal in 2004
    Keywords: Gift tax; Inheritance tax; Estate tax; Tax avoidance; Excess burden; Entre-preneurship; Ownership transfers of family firms
    JEL: D31 H20 K34
    Date: 2014–07–06
    URL: http://d.repec.org/n?u=RePEc:hhs:uufswp:2014_009&r=pbe
  5. By: Bernd Hayo (University of Marburg); Matthias Uhl (University of Marburg)
    Abstract: We study the influence of taxation on labour supply using a specifically designed representative survey of the German population. First, we investigate whether taxes generally matter for the labour supply decisions of our respondents. Around 41 per cent report taking taxes into consideration, which implies that the majority of the German population appears unresponsive to taxation. Second, we look at self-reported labour supply adjustments following a recently enacted payroll tax change. Only around 12 per cent of all respondents report an actual labour supply response, but we find evidence of an income, as well as a substitution, effect of the tax change. Our conclusion is that effects of taxes on labour supply in Germany are likely small. We analyse the correlation with economic and socio-demographic variables, and find that the self-employed are relatively more sensitive to taxation and that low interest rates reduce incentives for an expansion of the labour supply.
    Keywords: Taxation, Labour supply, Representative population survey Germany
    JEL: E62 H30 J22
    Date: 2014
    URL: http://d.repec.org/n?u=RePEc:mar:magkse:201438&r=pbe
  6. By: Lucio Castro; Carlos Scartascini
    Abstract: Tax evasion is a pervasive problem in many countries. In particular, some developing countries do not collect even half of what they would if taxpayers complied with the written letter of the law. The academic literature has not been oblivious to the need to explain why people pay (or do not pay) taxes. However, the empirical literature has not yet reached consensus. This paper reports the results of a large field experiment that tried to affect compliance by influencing property tax taxpayers’ beliefs regarding the levels of enforcement, equity, and fairness of the tax system in a municipality in Argentina. Results indicate that the most effective message was one that stated the actual fines and potential legal consequences taxpayers may face in the case of noncompliance (tax compliance increased by more than 4 percentage points). No average effects are found for the treatments designed to affect beliefs about the equity and fairness of the system. However, the evidence also points out that not every taxpayer updates his or her beliefs in the same direction, as relevant heterogeneous effects are found across the population. The evidence in this paper advances the state of knowledge and may help to reconcile some of the different results in the literature.
    JEL: C93 D03 H26 H41
    Date: 2013–12
    URL: http://d.repec.org/n?u=RePEc:idb:wpaper:idb-wp-472&r=pbe
  7. By: Javier Alvaredo; Alejandro Bonvecchi; Ernesto Calvo; Maximiliano Castillo; Juan Carlos Gomez
    Abstract: Although recent research has shed new light on the political determinants and economic consequences of tax lawmaking, existing analyses rely on coarse data measuring political aggregates. Consequently, little is known about the political processes determining how tax legislation is written or their effect on the nature of tax reforms. This paper therefore develops a methodology to examine how Congress edits the content of tax legislation by measuring the ways Deputies, Senators, Presidents, and Ministers propose and amend such legislation. The Legislative Substance Scale proposed here measures the distance between a bill’s original position and the actual outcome of the legislative process by comparing the differences in content according to coding of the main tax policy dimensions. The scale is used to build the first systematic database of tax lawmaking in Argentina, and to describe its general patterns of authorship, approval and substantive content across presidencies in the current democratic period.
    JEL: D78 H20 H77
    Date: 2013–12
    URL: http://d.repec.org/n?u=RePEc:idb:wpaper:idb-wp-433&r=pbe
  8. By: Loganathan, Nanthakumar; Muhammad Shahbaz; Roshaiza Taha
    Abstract: This paper explores how carbon taxation and economic growth affect environment hazards in Malaysia using time series data over the period of 1974-2010. We applied cointegration and causality approaches to determine long term and the direction of causal relationship between these variables. Based on the results, we found the cointegration relationship between the variables. Furthermore, we noted that Kuznets’ theory i.e. inverted-U shaped curve between economic growth and CO2 emissions is valid for Malaysia but the carbon taxation policy is ineffective to control CO2 emissions. The causality analysis revealed that there is bidirectional relationship is found between carbon tax and CO2 emissions. Economic growth Granger causes CO2 emissions and carbon tax is Granger cause of economic growth. To enhance the awareness on pollution issues governments should rely on alternative instruments, which may give benefit not only to taxpayers but also to reduce pollution, which is the pivotal issue to be tackle globally.
    Keywords: economic growth, environment hazards
    Date: 2014–08–29
    URL: http://d.repec.org/n?u=RePEc:ipg:wpaper:2014-494&r=pbe
  9. By: Sebastian Miller; Mauricio Vela
    Abstract: Environmental taxes have been discussed as one of the main mechanisms to deal with environmental problems. Nonetheless, instruments of this type have rarely been implemented, and the adoption of new or higher environmental taxes has faced resistance in some countries. The purpose of this work is to identify one possible political answer to why adoption of environmental taxes varies. One explanation is that legislatures’ ideological position affects the degree of usage of taxes generally and environmental taxes in particular. For example, right-wing parties tend to be less associated with environmental concerns and more associated with lower government intervention. This paper presents evidence that reflects this relationship, showing the positive association of more left-wing legislatures with higher levels of environmental taxation. A panel of data for 37 developed and developing countries over 16 years is used considering the percentage of total revenue from environmentally related taxes, the ratio of this revenue to total energy use and tax levels in industry and household sectors. The results show that most of these impacts involve environmentally related taxes in the industry sector. Proportional representation electoral systems and high seat concentration by few parties appear to be necessary conditions for the negative relation of right-wing ideology with environmental taxes.
    JEL: H23 P16 Q58
    Date: 2013–09
    URL: http://d.repec.org/n?u=RePEc:idb:wpaper:idb-wp-443&r=pbe
  10. By: Dean Baker; David Rosnick
    Abstract: This paper examines the evidence on the impact of stimulus and fiscal consolidation in the context of a severe economic slump like the Great Recession. The first part reviews some of the major works on this topic in the last decade. It notes that the research clearly points in the direction of stimulus increasing growth during a prolonged slump. The second part examines the impact of changes in government consumption and investment on growth, using data from advanced countries since 1980. Consistent with most prior literature it finds that increases in government spending during downturns lead to increases in growth. It then constructs simulations for the period since the Great Recession showing multipliers in the neighborhood of 1.5. The third part notes new evidence suggesting that potential GDP appears to have fallensharply as a result of the downturn. A full model of the impact of stimulus would have to incorporate this effect which is likely to be large relative to the size of the stimulus.
    Date: 2014
    URL: http://d.repec.org/n?u=RePEc:imk:wpaper:135-2014&r=pbe
  11. By: Blumkin, Tomer (Department of Economics, Ben-Gurion University); Margalioth, Yoram (The Buchmann Faculty of Law, Tel-Aviv University); Sharoni, Adi (Department of Economics, Ben-Gurion University)
    Abstract: We examine the role of CSR as a mechanism for private provision of public goods. We argue that corporations are using CSR to signal high product quality and demonstrate that signaling gives rise to an excessive level of contributions that offsets the positive externality, which causes the under-provision of public goods. We analyze the tax policy implications of such assertion. Accounting for this offset would call for a decrease in (and potentially elimination of) the subsidy offered to corporations engaged in CSR activities.
    Keywords: Signaling; Corporate Social Responsibility; Public Goods; Pigouvian Taxation *
    JEL: H20 H40 K30
    Date: 2014–07–30
    URL: http://d.repec.org/n?u=RePEc:hhs:uufswp:2014_010&r=pbe
  12. By: Martin Ardanaz; Carlos Scartascini
    Abstract: According to an influential theoretical argument, presidential systems tend to present smaller governments because the separation between those who decide the size of the fiscal purse and those who allocate it creates incentives for lower public expenditures. In practice, forms of government vary greatly, and budget institutions -the rules according to which budgets are drafted, approved, and implemented- are one (of many) drivers of such variation. This paper argues that under more hierarchical budget rules, presidential and parliamentary systems generate a similar incentive structure for the executive branch in shaping the size of government. This hypothesis is tested on a broad cross-section of countries, presidentialism is found to have a negative impact on government size only when executive discretion in the budget process is low (that is, in a context of separation of powers). However, the negative effect of presidentialism on expenditures vanishes or is even reversed when the executive`s discretion over the budget process is higher. Hence, budget institutions that impose restrictions on the legislature`s ability to amend budget proposals can make political regimes look more alike in terms of fiscal outcomes.
    JEL: D72 D78 H61
    Date: 2013–08
    URL: http://d.repec.org/n?u=RePEc:idb:wpaper:idb-wp-427&r=pbe
  13. By: Adam P. Balcerzak (Nicolaus Copernicus University, Poland); Michal Bernard Pietrzak (Nicolaus Copernicus University, Poland); Elzbieta Rogalska (University of Warmia and Mazury, Poland)
    Abstract: Last global financial crisis has led to massive fiscal stimulation actions in most of developed countries which resulted in significant increase of their public debt. For many economists current level of debt in case of many highly developed countries is coming up to unsustainable level or at least level that has negative consequences on the long term growth. This can be also said about Eurozone or wider EU economies. This factors in near future will force many EU countries to adopt much stricter middle and long term fiscal policy that will be necessary for deleveraging process. In this context the aim of the research is to check whether can one find non-Keynesian effects of fiscal consolidations in Eurozone countries in last decade. If the answer is positive, then could these non-Keynesian effects be significant developing factor in case of Eurozone countries. The third scientific question concentrates on the ways the fiscal consolidations were implemented and the potential influence of consolidations strategies on short term growth. The research is based on European Commission and Eurostat fiscal and macroeconomic data for Eurozone countries for the years 1995-2013. In the research the econometric dynamic panel model based on the concept of conditional convergence was applied. As a complementary method qualitative analysis of cases of significant contractions was made with the concentration on the differences between expansionary thus non-Keynesian cases and conventional Keynesian cases of fiscal contractions. The research results give some arguments for existence of fiscal transitions channels leading to non-Keynesian effects of fiscal policy, which in the same time can be a factor of conditional convergence. Thus in case of proper construction of fiscal consolidations polices these factors can be helpful in future deleverage process.
    Keywords: fiscal policy, fiscal consolidations, non-Keynesian effects, conditional convergence
    JEL: H3
    Date: 2014–08
    URL: http://d.repec.org/n?u=RePEc:pes:wpaper:2014:no13&r=pbe
  14. By: Dupor, William D. (Federal Reserve Bank of St. Louis); Mehkari, M. Saif (University of Richmond)
    Abstract: This paper (i) estimates the local effects of government stimulus spending on labor market outcomes and (ii) shows how these effects can be obtained from a firm's optimal policy in the presence of costs to hiring workers. We analyze the American Recovery and Reinvestment Act of 2009 (Recovery Act) using instrumental variables at the county-level. We find that $1 million of government spending increased employment locally by 5.5 persons and also increased wage payments to existing workers by $178,000. Next, we build a model in which a firm meets new government demand with a combination of new hiring and increasing the number of hours for existing workers. Faced with hiring costs and an overtime premium, the firm responds by increasing hours along both margins. Our analysis also provides insight into how government spending policy should be structured to lower the cost of generating new jobs. Finally, we catalog survey evidence from Recovery Act fund recipients that reinforces the importance of the intensive labor margin.
    Keywords: fiscal policy; intensive and extensive labor margins; the 2009 Recovery Act.
    JEL: D21 D24 E52 E62
    Date: 2014–08–11
    URL: http://d.repec.org/n?u=RePEc:fip:fedlwp:2014-023&r=pbe
  15. By: Miriam Rehm; Kai Daniel Schmid; Dieter Wang
    Abstract: In this paper we explore the reasons for the trend reversal in the development of household market income inequality in Germany in the second half of the 2000s. We analyse to what extent the increasing relevance of capital income as well as the rising share of atypically employed persons have affected the development of income inequality over the last two decades. We use household data from the German Socio-Economic Panel from 1991-2011 and decompose market income into three income sources: (1) household labour income from full-time work, (2) household labour income from atypical work, and (3) household capital income. We apply the factor decomposition method suggested by Shorrocks (1982) to analyse the contribution of these income forms to overall inequality. Our results suggest that changes in the distribution of capital income were a key factor both in the strong increase of inequality in the first half of the 2000s and in the subsequent trend reversal. This finding contrasts with the reasoning that labour market developments were the main cause behind changes in inequality.
    Keywords: Market Income Inequality, Inequality Decomposition, SOEP
    JEL: D31 D33
    Date: 2014
    URL: http://d.repec.org/n?u=RePEc:imk:wpaper:137-2014&r=pbe
  16. By: Aida Caldera Sánchez; Caroline Tassot
    Abstract: This paper uses data from the American Life Panel to understand the determinants of well-being in the United States during the Great Recession. It investigates how various dimensions of subjective wellbeing reflected in the OECD Better Life Framework impact subjective well-being. The results show that income is an important determinant of subjective well-being. The unemployed and the disabled are significantly less satisfied with their lives than the working population, while the retired and the homemakers are more satisfied. The paper expands the existing evidence by showing that homeowners, registered voters and those with access to health insurance have higher levels of subjective well-being. Time spent walking or exercising is positively correlated with happiness, while working more than 50 hours per week or spending time on health-related activities is negatively correlated with subjective well-being, and higher levels of anxiety. This Working Paper relates to the 2014 OECD Economic Survey of United States (www.oecd.org/eco/surveys/economic-survey-united-states.htm) Examen des déterminants du bien-être subjectif des Américains pendant la récession Le présent document utilise les données de l’enquête American Life Panel afin de comprendre les déterminants du bien-être aux États-Unis pendant la récession, l’objectif étant de déterminer comment les diverses dimensions du bien-être subjectif définies dans le cadre de mesure de l’initiative « Vivre mieux » de l’OCDE influent sur le sentiment subjectif de bien-être. Les résultats montrent que le revenu constitue un facteur important de bien-être subjectif. Les chômeurs et les personnes handicapées sont nettement moins satisfaits de leur vie que les actifs occupés, alors que les retraités et les femmes au foyer affichent des niveaux de satisfaction plus élevés. Les données existantes sont élargies et montrent que les propriétaires, les électeurs inscrits et les personnes pouvant bénéficier d’une assurance-maladie présentent des niveaux plus élevés de bien-être subjectif. Le temps consacré à la marche ou à l’exercice physique est associé à une hausse du niveau de bonheur, tandis que le fait de travailler plus de 50 heures par semaine ou de consacrer du temps à sa santé est associé à une baisse du niveau de bien-être subjectif et à des niveaux plus élevés d’anxiété. Ce Document de travail se rapporte à l’Étude économique de l’OCDE des États-Unis (www.oecd.org/fr/eco/etudes/etats-unis.h tm)
    Keywords: wage level and structure, quality of life, provision and effects of welfare programmes, job satisfaction, education, time allocation and labour supply, provision et effets des programmes sociaux, éducation, qualité de vie, satisfaction au travail, allocation du temps, niveau et structure des salaires, offre de travail
    JEL: I24 I30 I38 J22 J28 J31
    Date: 2014–08–26
    URL: http://d.repec.org/n?u=RePEc:oec:ecoaaa:1158-en&r=pbe
  17. By: Fabiana Machado
    Abstract: Decentralization of provision of public services has been an important item in the agenda of developing countries. While some scholars and practitioners argue that decentralization is associated with improvements in provision due to higher accountability, others note its potential pitfalls. In particular, decentralization to local communities characterized by poverty, low levels of education, and inequality may lead to low accountability and higher susceptibility to political capture. This paper explores these dynamics empirically, taking advantage of the fact that in Brazilian municipalities primary education is provided by schools under municipal as well as under state management. The performance of these two types of school in the same municipalities is compared in terms of their levels of inputs and the efficiency of service delivery using non-parametric data envelopment analysis (DEA). The results suggest that there are indeed drawbacks to decentralization in municipalities where inequality is higher and education and political participation are lower.
    JEL: H41 H75
    Date: 2013–06
    URL: http://d.repec.org/n?u=RePEc:idb:wpaper:idb-wp-397&r=pbe
  18. By: Bernd Hayo (University of Marburg); Florian Neumeier (University of Marburg)
    Abstract: In response to the recent sovereign debt crisis, the member states of the European Union agreed to enact balanced budget rules in their national legislation. However, little is known about the public’s opinion of balanced budget rules. To fill this gap, we conducted a survey among 2,000 representatively chosen German citizens. Our findings suggest that 61% of the German population supports the debt brake, whereas only 8% oppose it. However, approval rates differ notably among various subgroups of the population. The debt brake enjoys greater support among high-income earners and among those well-informed about the future costs of deficit spending. People who do not trust politicians would like to see the government’s hands tied even more tightly. Opinions about the debt brake also differ markedly across the supporters of different political parties.
    Keywords: Debt brake; balanced budget rule; European Fiscal Compact; survey; Germany
    JEL: E02 E62 H62 H63
    Date: 2014
    URL: http://d.repec.org/n?u=RePEc:mar:magkse:201441&r=pbe
  19. By: Giovanni Andrea Cornia (Dipartimento di Scienze per l'Economia e l'Impresa)
    Abstract: The paper reviews the extent of the income inequality decline which has taken place in Latin America over 2002-10 which reduced the regional Gini index to the level of the early 1980s. The paper then focuses on the factors which may explain such decline. These include a drop in the skill premium following an expansion of secondary education, the adoption of a new development model by a growing number of progressive goverments which adopted prudent but more equitable macroeconomic, tax, social assistance and labour policies. For the region as a whole, gains in terms of trade, remittances, FDI and world growth played an important but not determinant role though their impact was perceptible in countries where such shocks were sizeable. Finally, the paper reviews the changes in inequality during the difficult years 2009-12 and discusses whether and how the recent decline can be sustained over the next decade in the context of sluggish world growth.
    Date: 2014
    URL: http://d.repec.org/n?u=RePEc:frz:wpaper:wp2014_14.rdf&r=pbe
  20. By: Balázs Égert; Antoine Goujard
    Abstract: Poland’s productivity has grown strongly over the past decade, and efforts to reduce the regulatory burden have been significant. Despite impressive progress, product market regulation remains more burdensome than in most OECD countries, partly due to the importance of red tape and the level of state involvement in the economy. Further reduction in red tape and pursuing privatisation in competitive markets would increase competitive pressures and ensure neutrality, notably in public procurement processes. Economic rents in many sectors seem high, as stringent entry regulations, regulatory barriers and inefficient bankruptcy procedures induce significant resource misallocation. A welcome deregulation of professional services is ongoing, and the government plans to further ease firm registrations and reform bankruptcy procedures. The independence of the sector regulators in network industries and the powers of the Competition Authority can still be enhanced, as the reform efforts in these sectors remain patchy. The dominant positions of the incumbents and the failure of network sector regulators to introduce a level playing field in order to secure third-party access to the sectoral infrastructure and allow new entry in the competitive segments are another main issue. The advantages of being considered a farmer are also slowing the consolidation process in the agricultural sector. This Working Paper relates to the 2014 OECD Economic Survey of Poland (www.oecd.org/eco/surveys/economic-survey-poland.htm). Renforcer la concurrence en Pologne La productivité de la Pologne a fortement augmenté au cours des dix dernières années et les efforts déployés pour réduire le poids de la réglementation ont été significatifs. Malgré des progrès impressionnants, la réglementation des marchés de produits demeure plus pesante que dans la plupart des autres pays de l'OCDE, ce qui tient en partie à l'importance des formalités administratives et à l'ampleur de l'intervention de l'État dans l'économie. De nouvelles mesures de réduction des formalités administratives et de privatisation sur les marchés concurrentiels accentueraient les pressions de la concurrence et assureraient la neutralité concurrentielle, notamment dans le cadre de la passation des marchés publics. De nombreux secteurs semblent se caractériser par des rentes économiques élevées, dans la mesure où des règles d'entrée rigoureuses, des obstacles réglementaires et des procédures de faillite inefficaces faussent sensiblement l'affectation des ressources. Une déréglementation bienvenue des services professionnels est en cours, et le gouvernement projette d'assouplir encore les procédures d'immatriculation des entreprises ainsi que de réformer les procédures de faillite. L'indépendance des autorités de régulation sectorielles dans les industries de réseau et les prérogatives de l'Autorité de la concurrence peuvent être encore renforcées, étant donné que les efforts de réforme déployés à cet égard demeurent fragmentaires. Un autre problème essentiel tient aux positions dominantes occupées par les opérateurs historiques et au fait que les autorités de régulation sectorielles n'aient pas instauré des règles du jeu équitables, garantissant l'accès des tiers aux infrastructures sectorielles et permettant l'entrée de nouveaux acteurs sur les segments concurrentiels. Les avantages associés au statut d'agriculteur ralentissent par ailleurs le processus de regroupement des exploitations dans le secteur agricole. Ce Document de travail se rapporte à l’Étude économique de l’OCDE de la Pologne 2014 (www.oecd.org/fr/eco/etudes/etude-econom ique-pologne.htm).
    Keywords: Poland, productivity, growth, competition, regulation, réglementation, croissance, Pologne, productivité, concurrence
    JEL: F43 L1 L3 L4 L5 O3 O43
    Date: 2014–06–04
    URL: http://d.repec.org/n?u=RePEc:oec:ecoaaa:1125-en&r=pbe
  21. By: Paulo Bastos; Odd Rune Straume
    Abstract: This paper examines whether an expansion in the supply of public preschool crowds out private enrollment, using rich data for municipalities in Brazil from 2000-2006, where federal transfers to local governments change discontinuously with given population thresholds. Results from a regression-discontinuity design reveal that larger federal transfers lead to a significant expansion of local public preschool services, but show no effects on the quantity or quality of private provision. These findings are consistent with a theory in which households differ in willingness to pay for preschool services, and private suppliers optimally adjust prices in response to an expansion of lower-quality, free-of-charge public supply.
    JEL: D12 I21 I28 L21 O15
    Date: 2013–11
    URL: http://d.repec.org/n?u=RePEc:idb:wpaper:idb-wp-463&r=pbe

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