|
on Public Economics |
| By: | Paloma Péligry; Xavier Ragot (Sciences Po - Sciences Po) |
| Abstract: | We analyze the convergence or divergence of the diversity of fiscal systems after the financial crisis of 2007. Studying 29 countries, we first document the evolution of the taxation of households, firms, labour, consumption and capital. We identify three types of fiscal systems: liberal, intermediate and high-redistribution, which can be ranked in ascending order of tax rates, confirming known typologies in the diversity of capitalism literature. Only the tax rate on corporate profits shows signs of downward convergence over the period. The other tax rates show rather signs of divergence. Second, a divergence is observed among the liberal and high-redistribution group over the period. The European countries are converging towards the high-redistribution model, with the exception of Great Britain, which is moving towards the liberal model. Thus, the financial crisis seems to contribute not to the convergence, but to the divergence of fiscal systems. |
| Keywords: | tax systems globalization capital taxation JEL classification: H12 H6 P43, tax systems, globalization, capital taxation JEL classification: H12, H6, P43 |
| Date: | 2023–11–08 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04384035&r=pbe |
| By: | van der Geest, Jesse (Tilburg University, School of Economics and Management) |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:tiu:tiutis:aaca33bf-975d-4e21-9b5f-50e9384ce6e9&r=pbe |
| By: | de Boer, Henk-Wim (Independent Researcher); Jongen, Egbert L. W. (Leiden University); Koot, Patrick (Dutch Tax and Customs Administration) |
| Abstract: | Following major tax-benet reforms over the past decades, the Netherlands is the international front-runner in stimulating dual-earner couples via the tax system. In this paper we consider whether or not it has perhaps gone too far, using the inverse-optimal method of optimal taxation to recover the implicit social welfare weights for single- and dual-earner couples over time. Our results indicate that the reforms may have gone too far, leading to social welfare weights that are no longer monotonically declining in household income and even negative for some groups (suggesting Pareto-improving reforms are possible). We also consider optimal tax systems for dierent social preferences. |
| Keywords: | optimal taxation, revealed social preferences, dual earners |
| JEL: | C63 H21 H31 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16702&r=pbe |
| By: | Emilio Congregado (Universidad de Huelva, Spain); Vicente Esteve (Universidad de Valencia and Universidad de Alcalá, Spain); Juan A. María A. Prats (Universidad de Murcia, Spain and European Institute, London School of Economics and Political Science, UK) |
| Abstract: | In this paper, we provide a formal test of Barro’s tax-smoothing model, using Spanish data covering the period 1850-2022. First, we found that the tax-tilting component has been very important for the Spanish government and is a symptom of the existence of a public deficit bias that has existed in Spanish public finances over the sample period. Second, our empirical findings do also support the existence of tax-smoothing in Spanish fiscal policy throughout the sample period. Consequently, there is some evidence that the Spanish economy has engaged in tax-smoothing behavior over the period analyzed, as the Spanish governments responded to expected future changes in government spending by running budget imbalances, rather than altering contemporaneous government revenues. |
| Keywords: | Optimal taxation; Public debt management; Tax-smoothing; Tax-tilting, Spain |
| JEL: | E62 H21 H62 O52 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:eec:wpaper:2401&r=pbe |
| By: | Sebastien Bradley; Federico Carril-Caccia; Yoto V. Yotov |
| Abstract: | We study the relationship between corporate income taxes and mergers and acquisitions (M&As). To this end, we compile and deploy a dataset consisting of all cross-border and domestic M&A deals for 118 source (acquirer) and 122 destination (target) countries and 84 sectors over the period 1995-2019. From a methodological perspective, we implement leading methods from the empirical gravity literature on trade, foreign direct investment, and migration, and we demonstrate their importance for estimating the impact of corporate income taxes on cross-border versus domestic M&A activity. Our main finding is that a one percentage point increase in target country corporate income tax rates decreases the number of cross-border acquisitions by about 0.8 percent relative to domestic M&As. This result is robust to various sensitivity checks and is comparable to previously published estimates. Nevertheless, our stepwise estimation strategy exemplifies the importance of individual empirical refinements. These should serve as the basis for future work investigating the effects of taxation on bilateral flows. |
| Keywords: | corporate income taxes, mergers and acquisitions, gravity methods |
| JEL: | F10 F14 F21 F23 H25 H87 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_10863&r=pbe |
| By: | Friedman, Sam; Gronwald, Victoria; Summers, Andrew; Taylor, Emma |
| JEL: | N0 E6 |
| Date: | 2024–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:121396&r=pbe |
| By: | Karima AFIF (Department of Agri-Food Economics and Consumer Sciences, Faculty of Agriculture and Food Sciences, Université Laval, Canada); Bocar Samba BA (Department of Agri-Food Economics and Consumer Sciences, Faculty of Agriculture and Food Sciences, Université Laval, Canada); Eugénie JOLTREAU (RFF-CMCC European Institute on Economics and the Environment (EIEE), Fondazione Centro Euromediterraneo sui Cambiamenti Climatici (CMCC), Milan, Italy) |
| Abstract: | This paper seeks to theoretically understand the impact of a tax-subsidy system (as implemented in Extended Producer Responsibility) on packaging source reduction, waste generation, and recycling in the presence of economies of scale and quality concerns in the recycling industry. We use a static equilibrium and a non-homothetic technology function to study asymmetric substitution between the virgin and the recycled material. The model displays a trade-off between recycled content and material productivity, and between waste generation and the recycling industry's profitability. A tax-subsidy scheme in the form of an excise charge and a dual subsidy restores the social optimum, providing that the recycler reaches a positive profit. We find that the excise tax favors virgin material and packaging refinement, all else equal. At the same time, it decreases the use of recycled material, sales, and total waste generation. The subsidy granted to the producer has the opposite effect. The subsidy granted to the recycler increases its profit and the recycling rate. |
| Keywords: | Waste, Recycling, Substitutability, Plastics, Tax-subsidy |
| JEL: | H23 Q53 |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:fae:wpaper:2024.02&r=pbe |
| By: | Manwaring, Priya; Regan, Tanner Weldon Dean |
| Abstract: | Public disclosure policies have potential to raise tax compliance where alternative enforcement capacity is limited. We study the effects of reporting delinquents and recognizing compliers and provide evidence on the social determinants of tax compliance. Our results are consistent with a model in which being publicly known as tax-eligible is costly but social sanctions for delinquency are limited. Further, disseminating information on tax behavior reduces the compliance of recipients by causing their beliefs to be updated down toward the true compliance rate. Overall, these policies are limited at raising revenue and less effective than simple enforcement reminder nudges. |
| Keywords: | property tax; tax morale; public disclosure; shaming |
| JEL: | O18 H30 H26 |
| Date: | 2023–07–21 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:121298&r=pbe |
| By: | Paczos, Wojtek (Cardiff Business School); Shakhnov, (†University of Surrey) |
| Abstract: | Sovereigns issue debt on both domestic and foreign markets and the two debts are uncorrelated in the data. Sovereigns default mostly selectively. We propose a theory to rationalize these observations. A government chooses the optimal combination of two debts to smooth consumption, which is subject to output shock and volatile tax distortions. In equilibrium, it mostly relies on domestic debt to smooth the tax wedge and on foreign debt to smooth the output shock. Issuing either debt is less costly than raising taxes, but it is subject to default risk due to the government’s limited commitment. A quantitative, calibrated model with two shocks and two debts replicates well debt-to-GDP ratios, default frequencies, cyclical properties of emerging economies and behavior of aggregates around default episodes. |
| Keywords: | sovereign debt, selective default, debt composition |
| JEL: | F34 G15 H63 |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:cdf:wpaper:2024/6&r=pbe |
| By: | Cummins, Neil |
| Abstract: | Using individual-level records of all wealth-at-death in England from 1892 to 1992, together with new estimates of the wealth-specific rate of return on wealth, this study estimates a plausible minimum level of the amount of inherited wealth that is hidden. Elites conceal around 35 per cent of their inheritance. Among dynasties, this hidden wealth, independent of declared wealth, predicts appearance in the Offshore Leaks Database of 2013–16 and is correlated with postcode house-value in 1999 and Oxbridge attendance in 1990–2016. Accounting for hidden wealth eliminates about 28 per cent, at minimum, of the observed decline of the top 1 per cent wealth-share, at the dynastic level, over the past century. Findings show 9 077 dynasties that are hiding £8.9 billion. |
| Keywords: | hidden wealth; inequality; economic history; big data; tax evasion |
| JEL: | N00 N33 N34 D31 H26 |
| Date: | 2022–08–01 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:113490&r=pbe |
| By: | Ropponen, Olli; Koski, Heli; Kässi, Otto; Valmari, Nelli; Ylhäinen, Ilkka; Hirvonen, Johannes |
| Abstract: | Abstract This study examines the allocation of business subsidies introduced due to the COVID-19 pandemic to different types of companies. The results show that most of the supported companies would not have needed the subsidy, as they would have remained profitable also in the absence of it. Furthermore, companies incurring losses before the pandemic (zombie companies) received COVID-19 subsidies more often than other companies. The subsidies also directed more often to companies with productivity lower than the median productivity. The targeting of subsidies to low-productivity companies slows down future productivity development and economic growth, as labor and capital are more likely to remain in less productive businesses. The study also includes a literature review of the economic literature related to business subsidies during the COVID-19 pandemic. |
| Keywords: | Corporate subsidies, Covid-19 pandemic, Subsidy allocation, Covid-subsidy literature |
| JEL: | H22 H25 H32 |
| Date: | 2024–02–05 |
| URL: | http://d.repec.org/n?u=RePEc:rif:report:145&r=pbe |