nep-pub New Economics Papers
on Public Finance
Issue of 2023‒05‒29
six papers chosen by
Kwang Soo Cheong
Johns Hopkins University

  1. Robot tax and endogenous fertility in an Overlapping Generations Model By Minoru Watanabe
  2. Can Deficits Finance Themselves? By George-Marios Angeletos; Chen Lian; Christian K. Wolf
  3. Government Spending and Tax Revenue Decentralization and Public Sector Efficiency: Do Natural Disasters matter? By António Afonso; João Tovar Jalles; Ana Venâncio
  4. Fiscal Consequences of Corporate Tax Avoidance By Katarzyna Bilicka; Evgeniya Dubinina; Petr Jansky
  5. The Gender (Tax) Gap in Parental Transfers. Evidence from Administrative Inheritance and Gift Tax Data By Tisch, Daria; Schechtl, Manuel
  6. The new fiscal sociology: a study of universal self-Assessment taxpayers in Bangladesh By Kazi Abdul, Mannan; Khandaker Mursheda, Farhana

  1. By: Minoru Watanabe (Hokusei Gakuen University)
    Abstract: This brief study constructs a simple Overlapping Generations Model incorporating endogenous fertility and automation capital, which can be used as a replacement for labor inputs Further more, this study introduces a robot tax on automation capital.In the long run, robot tax promote s not only fertility but also per capita income.
    Keywords: Automation capital, Robot tax, Endogenous fertility, Income growth
    JEL: E10 H50 J11
    Date: 2023–04
  2. By: George-Marios Angeletos; Chen Lian; Christian K. Wolf
    Abstract: We study how fiscal deficits are financed in environments with two key features: (i) nominal rigidity and (ii) a violation of Ricardian equivalence due to finite lives or liquidity constraints. In such environments, deficits contribute to their own financing via two channels: a boom in real economic activity, which expands the tax base, and a surge in inflation, which erodes the real value of nominal government debt. Our main theoretical result relates the potency of such self-financing to the timing of fiscal adjustment. Pushing the fiscal adjustment further into the future helps generate a larger and more persistent boom, leading to more self-financing. Full self-financing is possible in the limit as fiscal adjustment is delayed more and more: the government can run a deficit today, refrain from tax hikes or spending cuts in the future, and nevertheless see its debt converge back to its initial level. We conclude by arguing that a large degree of self-financing is not only theoretically possible but also quantitatively relevant.
    JEL: E6
    Date: 2023–04
  3. By: António Afonso; João Tovar Jalles; Ana Venâncio
    Abstract: We assess notably how do extreme events affect the public sector efficiency of decentralized governance. Hence, we empirically link the public sector efficiency scores, to tax revenue and spending decentralization. First, we compute government spending efficiency scores via data envelopment analysis. Second, relying on panel data and impulse response approaches, we estimate the effect of decentralization on public sector efficiency and how extreme natural disasters mediate this relationship. The sample covers 36 OECD countries between 2006 and 2019. Our results show that tax revenue decentralization decreases public sector efficiency, while spending decentralization and a regional authority index are positively related to public sector efficiency, both for local projections and panel analysis. For instance, efficiency rises by 10 percent following a spending decentralization shock (reaching over 20 percent after 4 years). Nevertheless, in cases of natural disasters, spending decentralization reduces public sector efficiency. Specifically, in the presence of most extreme natural disasters, the improvement in public sector efficiency after a spending decentralization shock is smaller than in their absence. Moreover, extreme natural disasters also deteriorate the negative effect of tax revenue decentralization on public sector efficiency. These results suggest that sub-national discretionary spending and tax revenue responses might be less fruitful when such extreme events occur.
    Keywords: public sector efficiency; data envelopment analysis; local projections; revenue decentralization; spending decentralization; natural disasters; OECD
    JEL: C14 C23 E62 H11 H50
    Date: 2023–05
  4. By: Katarzyna Bilicka (Utah State University, NBER, CEPR & Oxford Centre for Business Taxation; Jon M Huntsman School of Business, UT.); Evgeniya Dubinina (Institute of Economic Studies, Faculty of Social Sciences, Charles University, Prague, Czechia); Petr Jansky (Institute of Economic Studies, Faculty of Social Sciences, Charles University, Prague, Czechia)
    Abstract: We study the consequences of multinational tax avoidance on the structure of government tax revenues. To motivate our analysis, we show that countries with high revenue losses due to profit shifting have lower corporate tax revenues and rates and higher indirect tax revenues and rates. To establish causality, we use German municipal data and analyse how changes in municipal trade tax rates levied on corporate profits affect local tax revenue structure. Following a trade tax rate increase, we find that municipalities with high exposure to aggressive multinationals experience a significant decline in trade tax revenue levels and shares.
    Keywords: Corporate Tax Avoidance, Profit Shifting, Multinational Corporations, Government Tax Revenue Structure
    JEL: E62 H26 H71
    Date: 2023–05
  5. By: Tisch, Daria (Humboldt-Universität zu Berlin); Schechtl, Manuel
    Abstract: This study examines how inheritance and gift tax systems in combination with gendered parental transfer behavior strengthen gender wealth inequalities. Gender differences in transfers can be reproduced if men benefit differently than women from tax exemptions. This might happen when men and women receive different types of assets where only some are tax-exempted. To investigate gendered parental transfer behavior and gender differences in tax rates, we draw on German administrative inheritance and gift tax data. Women were less likely than men to receive tax-relevant parental transfers, the value of the transfers were lower, and women and men differed in the asset types they received. Moreover, we identify a gender tax gap of 2% for inheritances and 22% for gifts. Our analyses suggest that men benefit more from tax exemptions on business assets. This study adds the tax system as yet another factor implicated in the reproduction of gender wealth inequalities. (Stone Center on Socio-Economic Inequality Working Paper)
    Date: 2023–04–25
  6. By: Kazi Abdul, Mannan; Khandaker Mursheda, Farhana
    Abstract: Economists and sociologists recognize taxation as an important element of the life of individuals. As the tax system and policies of each country reflect the characteristics of the country's social, political, cultural and economic structure, tax systems differ according to the characteristics of the structure of the society. The study is aimed to investigate the ethical, moral, religious, gender, educational and cultural background considerations on individual voluntary tax compliance whose main income is from business, salaries and other sources. This is a cross-sectional quantitative study. The survey was conducted on 385 respondents’ individual taxpayers within the capital city of Dhaka in 2020. Necessary statistical tests including multiple regression analysis were used in this study. Findings show that ethicality and educational background have a direct significant effect on the individual tax compliance among the taxpayers whose main income is from business, salaries and other sources. However, gender, religious, morality and cultural background do not have significant effect in this relationship. It is believed this study will significantly contribute to the body of knowledge in the areas of voluntary tax compliance.
    Keywords: Taxation, Self-assessment, Compliance, Ethics, Moral, Religion, Education, Culture
    JEL: E6 E60 E62 E63 E69
    Date: 2023

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