nep-pub New Economics Papers
on Public Finance
Issue of 2019‒04‒01
three papers chosen by
Kwang Soo Cheong
Johns Hopkins University

  1. Corruption in Tax and Taxing the Corruption By Pazhanisamy, R.
  2. Soda Wars: The Effect of a Soda Tax Election on University Beverage Sales By Taylor, Rebecca; Kaplan, Scott; Villas-Boas, Sofia B.; Jung, Kevin
  3. Taxes, frictions and asset shifting: when Swedes disinherited themselves By Escobar, Sebastian; Ohlsson, Henry; Selin, Håkan

  1. By: Pazhanisamy, R.
    Abstract: Most of the countries in the world face corruption and struggling against to it in many aspects. Due to various loopholes and institutional inefficiencies it continues to be pressing issues which affects public in various dimensions. The long existence of corruption around the world made an illusion to the policy makers and public as it is unavoidable and adjustable. This creates an intuition to esquire into what makes the corruption market successful all over the world for many centuries and what Economic theory is operate behind it. In this paper an inquiry is made into how the corruption market works effectively without any intervention. It also explore the possibility of the Ronald Coase theory’s to control the corruption and justifies what intervention is needed to achieve optimal amount of corruption. It concludes that to achieve the optimal amount of corruption in the society all farms of corruptions has to be internalized by introducing a permit and tax for corruption.
    Keywords: Corruption in Tax,taxing the Corruption,Coase theorem and tax,tax evasion,breaking the tax evasion using Coase theorem,internalizing the externalize of corruption
    JEL: B21 B41 D03 G02 G18 G28 H26 I38
    Date: 2019
  2. By: Taylor, Rebecca; Kaplan, Scott; Villas-Boas, Sofia B.; Jung, Kevin
    Abstract: We examine how soda sales changed due to the campaign attention and election out- come of a local excise tax on sugar-sweetened beverages (SSB), most commonly referred to as a soda tax. Using panel data of beverage sales from university retailers in Berkeley, California, we estimate that soda purchases relative to control beverages significantly dropped immediately after the election, months before the tax was implemented in the city of Berkeley or on campus. Supplemental scanner data from off campus drug stores reveal this result is not unique to the university setting. Our findings suggest soda tax media coverage and election outcomes can have larger effects on purchasing behavior than the tax itself.
    Keywords: Public Economics
    Date: 2019–02
  3. By: Escobar, Sebastian (University of Munich); Ohlsson, Henry (Uppsala University); Selin, Håkan (IFAU - Institute for Evaluation of Labour Market and Education Policy)
    Abstract: We study tax-driven intergenerational asset shifting using a salient tax discontinuity and rich data on both donors and recipients. When the Swedish inheritance tax was in place, heirs could lower their inheritance tax bills by passing on part of the inheritance to their children. We present evidence on strong and precise responses to this incentive. We quantify optimization frictions, and we show that they are small in this setting. Both intensive and extensive margin policy responses can be rationalized by a simple model in which agents face small frictions at the extensive margin. Descriptive evidence suggests that the policy response is associated with the abundant supply of cheap legal advice on tax planning.
    Keywords: tax avoidance; tax rate elasticity; inheritance taxation; inter vivos gifts
    JEL: H21 H24 H26
    Date: 2019–03–22

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