nep-pub New Economics Papers
on Public Finance
Issue of 2016‒03‒29
five papers chosen by
Kwang Soo Cheong
Johns Hopkins University

  1. Corporate taxation and location of intangible assets: Patents vs. trademarks By Dudar, Olena; Voget, Johannes
  2. Tipping versus Cooperating to Supply a Public Good By Scott Barrett; Astrid Dannenberg
  3. Public-Private Partnerships and the 2030 Agenda for Sustainable Development: Fit for purpose? By Jomo Kwame Sundaram; Anis Chowdhury; Krishnan Sharma; Daniel Platz
  4. Can electronic tax invoicing improve tax compliance ? a case study of the Republic of Korea's electronic tax invoicing for value-added tax By Lee,Hyung Chul
  5. Public expenditure in time of crisis: are Italian policymakers choosing the right mix? By Maria Jennifer Grisorio; Francesco Prota

  1. By: Dudar, Olena; Voget, Johannes
    Abstract: Numerous empirical studies have analysed the influence of corporate taxation on the location of intangible assets within a company group. However, the previous literature has rather focused on studying the impact of taxation on patent location choices assuming that these assets represent the rest of intangibles as well. This paper complements previous studies by estimating and comparing the tax elasticities of two different types of intangibles - patents and trademarks. We employ data on European and US patent and trademark applications in the period of 1996-2012 and estimate a multinomial logit model that incorporates various observed and unobserved factors of the intangible's location choice. According to our main findings, trademarks are more sensitive to changes in taxation as compared to patents. This implies that firms use trademarks more eagerly for tax planning purposes than patents.
    Keywords: intangible assets,patent,trademark,tax planning,corporate taxation
    JEL: H25 F23 H26 H3
    Date: 2016
  2. By: Scott Barrett (Columbia University); Astrid Dannenberg (University of Kassel)
    Abstract: In some important multi-player situations, such as efforts to supply a global public good, players can choose the game they want to play. In this paper we conduct an experimental test of the decision to choose between a “tipping” game, in which every player wants to contribute to the public good provided enough other players contribute, and a prisoners’ dilemma, the classic cooperation game. In the prisoners’ dilemma, the first best outcome is attainable, but cannot be sustained as a Nash equilibrium. In the tipping game, only a second best outcome may be attainable, but there exists a Nash equilibrium that is strictly preferred to the one in the prisoners’ dilemma. We show that groups do significantly better when they choose the tipping game, and yet many groups repeatedly choose the prisoners’ dilemma, indicating a mistaken and persistent tendency to prefer a game with potentially higher payoffs to one having a strategic advantage.
    JEL: C72 C92 F53 H41
    Date: 2015
  3. By: Jomo Kwame Sundaram; Anis Chowdhury; Krishnan Sharma; Daniel Platz
    Abstract: In light of a cautious emphasis given to public-private partnerships (PPPs) as a mechanism to finance infrastructure projects and highlighting the need for capacity building and knowledge sharing at the Third International Conference on Financing for Development in Addis Ababa, this paper reviews the extant literature on the subject and identifies areas requiring better understanding and institutional innovation for ensuring value for money, minimizing contingent fiscal risk and improving accountability. An institutional capacity to create, manage and evaluate PPPs is essential to ensure that they become an effective instrument of delivery of important services, such as infrastructure. There is also a need for a common definition of PPPs and internationally accepted guidelines, including uniform accounting and reporting standards.
    Keywords: Public-Private Partnerships, value for money, infrastructure, Addis Ababa Action Agenda, sustainable development
    JEL: H41 H54 L32 L33 O18
    Date: 2016–03
  4. By: Lee,Hyung Chul
    Abstract: This paper reviews the Republic of Korea's experience with electronic tax invoices for its value-added tax regime from the perspectives of tax policy makers and administrators. The paper evaluates Korea's implementation of electronic tax invoicing and analyzes its effect on tax compliance through enhanced transparency of business transactions and taxpayer services. First implemented in 2011, mandatory electronic tax invoicing has been credited with lowering tax compliance costs and raising the transparency of business transactions. Effective policy design and implementation have contributed to the country's success with electronic tax invoicing. Measured in transaction value, the electronic tax invoice adoption rate reached 99.8 percent in the first year and rose to 99.9 percent by 2013, compared with 15 percent before electronic tax invoicing became mandatory. According to a survey of taxpayers and tax practitioners in Korea that was conducted as part of this research study, 69.4 percent of the respondents agreed or strongly agreed that mandatory electronic tax invoicing has contributed to curbing value-added tax evasion by raising transaction transparency, and 72.9 percent agreed or strongly agreed that it has improved taxpayer service by facilitating the convenience of tax filing or automating the issuance of invoices. The review of Korea's experiences gives credence to the contention that well-planned and well-executed compulsory electronic tax invoices can materially enhance tax compliance through significant institutional and perceptual changes in tax administration.
    Keywords: Debt Markets,E-Business,Tax Law,Taxation&Subsidies,Emerging Markets
    Date: 2016–03–07
  5. By: Maria Jennifer Grisorio; Francesco Prota
    Abstract: In the “austerity debate” a crucial issue is the composition of fiscal adjustment. This article provides empirical evidence on the relationship between economic crisis episodes and composition of public expenditure by examining the impact of economic crises on the share of different types of public spending in total public expenditure in the Italian regions. Our results suggest that fiscal consolidation strategies have not had growth-friendly composition.
    Keywords: Economic crisis, composition of government expenditure, panel data.
    JEL: C23 H12 H72
    Date: 2016–03

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