nep-pub New Economics Papers
on Public Finance
Issue of 2019‒11‒04
eight papers chosen by
Kwang Soo Cheong
Johns Hopkins University

  1. Profit Taxation and Bank Risk Taking By Kogler, Michael
  2. Preferences over Taxation of High Income Individuals: Evidence from a Survey Experiment By Engelmann, Dirk; Janeba, Eckhard; Mechtenberg, Lydia; Wehrhöfer, Nils
  3. Corporate Tax Reforms With Policy Uncertainty By Brendler, Pavel; Abraham, Arpad; Carceles, Eva
  4. Unilateral Tax Policy in the Open Economy By Kohl, Miriam; Richter, Philipp
  5. The EITC and the Extensive Margin: A Reappraisal By Henrik Kleven
  6. Sin Taxes, Insurance and the Correction of Internalities By Kalamov, Zarko; Runkel, Marco
  7. The Effect of Tax Price on Donations: Evidence from Canada By Ross Hickey; Brad Minaker; A. Abigail Payne; Joanne Roberts; Justin Smith
  8. On income tax avoidance - the case of Germany revisited By Fauser, Hannes

  1. By: Kogler, Michael
    JEL: G21 G28 H25
    Date: 2019
  2. By: Engelmann, Dirk; Janeba, Eckhard; Mechtenberg, Lydia; Wehrhöfer, Nils
    JEL: H21
    Date: 2019
  3. By: Brendler, Pavel; Abraham, Arpad; Carceles, Eva
    JEL: E20 E44 H24 H31
    Date: 2019
  4. By: Kohl, Miriam; Richter, Philipp
    JEL: F12
    Date: 2019
  5. By: Henrik Kleven
    Abstract: This paper reconsiders the impact of the Earned Income Tax Credit (EITC) on labor supply at the extensive margin. I investigate every EITC reform at the state and federal level since the inception of the policy in 1975. Based on event studies comparing single women with and without children, or comparing single mothers with different numbers of children, I show that the only EITC reform associated with clear employment increases is the expansion enacted in 1993. The employment increases in the mid-late nineties are very large, but they are influenced by the confounding effects of welfare reform and a booming macroeconomy. Based on different approaches that exploit variation in these confounders across household type, space and time, I show that the employment effects align closely with exposure to welfare reform and the business cycle. Single mothers who were unaffected by welfare reform (but eligible for the EITC) did not respond. Overall and contrary to consensus, the case for sizable extensive margin effects of the EITC is fragile. I highlight the presence of informational frictions, widely documented in the literature, as a natural explanation for the absence of extensive margin responses.
    JEL: H20 H24 H31 J20 J21 J22
    Date: 2019–10
  6. By: Kalamov, Zarko; Runkel, Marco
    JEL: D11 H21 H31 I12 I13 I18
    Date: 2019
  7. By: Ross Hickey (Melbourne Institute: Applied Economic & Social Research, The University of Melbourne); Brad Minaker (University of Guelph); A. Abigail Payne (Melbourne Institute: Applied Economic & Social Research, The University of Melbourne); Joanne Roberts (Yale-NUS College); Justin Smith (Wilfrid Laurier University)
    Abstract: Estimating the responsiveness of charitable donations to changes in tax incentives is more than estimating a single number. Giving to charity is unlike normal consumption – it involves supporting the delivery of privately-provided public goods. Age and income may influence how tax incentives to give affect both the decision to give as well as how much to give. Using a large administrative dataset from Canada to estimate the tax price elasticity of donations, we estimate that the tax price elasticity of charitable donations is -1 when it is restricted to be the same for all individuals. Across the income distribution, however, we observe an inverse U-shaped distribution in the elasticity that ranges from -1.4 to -0.18. We also find differences in the elasticity across age groupings, and that for the population the elasticity is driven more through the intensive than extensive margin.
    Keywords: Donations, charity, tax price elasticity
    JEL: H31 H24 H40
    Date: 2019–09
  8. By: Fauser, Hannes
    JEL: D12 D31 D63 H26
    Date: 2019

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