Download or read book Essays on Optimal Taxation in Financial Markets written by Kai B. Brückerhoff and published by . This book was released on 2019 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Essays on Insurance and Taxation written by Florian Scheuer and published by . This book was released on 2010 with total page 144 pages. Available in PDF, EPUB and Kindle. Book excerpt: .
Download or read book Essays on Optimal Fiscal Policy in a Small Open Economy microform written by Constantine Angyridis and published by Library and Archives Canada = Bibliothèque et Archives Canada. This book was released on 2005 with total page 240 pages. Available in PDF, EPUB and Kindle. Book excerpt: In the final essay, I utilize the model developed in the previous one, in order to further investigate the effect of lending and borrowing constraints on the government's implemented fiscal policy. It is demonstrated that the transition from a balanced-budget policy regime to one in which the government is allowed to borrow and lend in order to smooth taxes across time generates significant welfare gains. However, these gains diminish as the persistence of the stochastic process for government expenditures increases. Under a particular assumption regarding the determination of asset prices in the model, it is shown that compared to the two previous policy regimes, overall welfare can be improved upon further if the government is allowed to issue state-contingent debt. This thesis consists of three essays on the conduct of optimal fiscal policy in the context of a stochastic small open economy. In all cases, the model employed to conduct the analysis is characterized by an asymmetry between the government and the representative household with respect to their accessibility to financial markets. In particular, the government is allowed to borrow and lend at a risk-free interest rate, while the household is assumed to have access to complete financial markets. The first essay discusses the restrictions that need to be placed in the presence of shocks to technology on the specification of the production and utility functions, in order for the optimal tax rate on capital income to be zero in all periods (except the initial one). The second essay considers an environment similar to that in Aiyagari et al. (2002) for a closed economy, with no capital and stochastic government expenditures. Using the same parameterization as these authors, it is shown that assuming away market completeness with respect to the public sector of the economy only, is sufficient to yield equilibrium outcomes that are consistent with Barro's (1979) "tax smoothing" result.
Download or read book Essays on the Taxation and Regulation of Financial Markets written by Daniel Bergstresser and published by . This book was released on 2002 with total page 147 pages. Available in PDF, EPUB and Kindle. Book excerpt: (Cont.) Previous studies have documented that funds with high pretax returns attract greater inflows. This chapter presents evidence, based on a large sample of retail equity mutual funds over the period 1993 to 1999, that after-tax returns have more explanatory power than pretax returns in explaining inflows. In addition, funds with large overhangs of unrealized capital gains experience smaller inflows, all else equal, than funds without such unrealized gains.
Download or read book Modern Fiscal Issues Essays in Honor of Carl S Shoup written by Carl Sumner Shoup and published by Toronto: University of Toronto Press. This book was released on 1972 with total page 372 pages. Available in PDF, EPUB and Kindle. Book excerpt: Collection of essays on public finance by various leading economists covers theoretical as well as practical fiscal issues such as "Value added tax in Ecuador" by Hamilton Gillim, M. and "Customs unions, tax unions, development unions" by Dosser, D.; "Technical assistance in taxation in developing countries" by Oldman, O. and Surrey, S.S.
Download or read book Essays in Optimal Taxation written by Pulin Behari Nayak and published by . This book was released on 1976 with total page 139 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Essays on Macroeconomic Effects of Taxation and Health Policies written by Soojin Kim and published by . This book was released on 2013 with total page 166 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Essays on Public Finance and Information Economics written by André Medeiros Sztutman and published by . This book was released on 2023 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This thesis comprises three chapters on public finance and information economics. The first focuses on the interaction of imperfect information in labor markets and the tradeoffs the government faces when setting on-linear taxes. The second focuses on the role of heterogeneity in elasticities in affecting those tradeoffs. The third focuses on the imperfect information in financial markets and on how to design disclosure rules to increase the size of gains from trade in lending markets when these markets are adversely selected. The first chapter asks how optimal taxes are affected by reputation building and imperfect information in labor markets. To answer that question, I build a model of labor markets with incomplete and asymmetric information where job histories play a crucial role in transmitting information about workers' productivity, which allows us to better understand the efficiency and distributive consequences of imperfect monitoring and screening in labor markets, and the tradeoffs the government faces when setting taxes. Optimal taxes are described by generalized versions of standard redistributive and corrective taxation formulas, which depend crucially on labor wedges: the marginal contribution to output relative to the increases in lifetime earnings that result from supplying one extra unit of labor at each period. Using data from the Health and Retirement Study, I find that the corrective component of taxes is likely to be large, especially at the top of the income distribution. The second chapter (joint with John Sturm) asks how income taxes should account for heterogeneity in elasticities of taxable income. We address this question with a test that passes if and only if there exists a weighted utilitarian planner for whom taxes are locally optimal. Our test incorporates standard sufficient statistics and a novel ingredient: the variance of elasticities conditional on income. Theoretically, we show that the test fails when these variances are sufficiently high. Empirically, we find they are indeed large in a panel of US tax returns. We thereby conclude, without taking a stance on redistributive preferences, that there are welfare-improving tax reforms. The increasing availability of data in credit markets may appear to make adverse selection concerns less relevant. However, when there is adverse selection, more information does not necessarily increase welfare. The third chapter (joint with Robert M. Townsend and Nicole Immorlica) provides tools for making better use of the data that is collected from potential borrowers, formulating and solving the optimal disclosure problem of an intermediary with commitment that seeks to maximize the probability of successful transactions, weighted by the size of the gains of these transactions. We show that any optimal disclosure policy needs to satisfy some simple conditions in terms of local sufficient statistics. These conditions relate prices to the price elasticities of the expected value of the loans for the investors. Empirically, we apply our method to data from the Townsend Thai Project -- a long panel dataset with rich information on credit histories, balance sheets, and income statements -- to evaluate whether it can help develop rural credit markets in Thailand, finding economically meaningful gains from adopting limited information disclosure policies. JELClassification: H2,D8,J2,I3,G2.
Download or read book Essays In Optimal Taxation written by Pulin B. Nayak and published by . This book was released on 1990-01-01 with total page 139 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Taxes Public Goods and Urban Economics written by Peter M. Mieszkowski and published by Edward Elgar Publishing. This book was released on 1999 with total page 584 pages. Available in PDF, EPUB and Kindle. Book excerpt: The 27 articles reprinted in this volume are among Peter Mieszkowski's most important contributions to public, urban and regional economics. Several of these pieces concern income distribution theory and policies for promoting equality in wages, housing and education. The first part of this book includes studies of labour markets, tax incidence and the distributive effects of trade unions and wage subsidies. Two important conclusions presented in these papers concern the local property tax: it is a tax on capital and it results in under-provision of local public goods. The second and third parts of the book address, respectively, the decentralization of cities and and tax reform. Issues discussed include: racial discrimination in housing markets, the design of land use regulation, the negative income tax, consumption taxes, and tax reform in transition countries, particularly Eastern European countries. These outstanding essays bring together, in an accessible form, the work of one of the most important scholars in the field of public finance and urban economics.
Download or read book Essays on Taxes Financial Markets and the Corporate Sector written by Orhan Erem Atesagaoglu and published by . This book was released on 2008 with total page 140 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Essays on Optimal Taxation and the Life Cycle written by Seamus John Smyth and published by . This book was released on 2006 with total page 290 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Essays in Optimal Taxation written by Benjamin B. Lockwood and published by . This book was released on 2016 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Policy often differs from the recommendations of theoretical optimal tax models in substantial and enduring ways. Such differences are sometimes surely because policy is suboptimal; however they may also be driven by alternative objectives which shape policy in practice, but which do not appear in the benchmark theoretical model. This dissertation considers three cases of such alternative objectives. The first chapter supposes that work subsidies like the Earned Income Tax Credit may be justified by corrective considerations, rather than the usual redistributive rationale for income taxation, if people are present biased and some benefits from work are delayed. The second chapter explores the role of income taxes in directing talented individuals into professions which are beneficial for the rest of society, such as teaching or medical research, and away from professions with negative externalities. The third paper considers the common concern that "sin taxes" on harmful goods--such as cigarettes or soda--are regressive, by incorporating redistributive concerns into a model of optimal corrective commodity taxation.
Download or read book Essays on Taxation and Competition Under Firm Heterogeneity and Financial Frictions written by Daniel S. Wills and published by . This book was released on 2017 with total page 176 pages. Available in PDF, EPUB and Kindle. Book excerpt: In this dissertation, I study the implications of taxation--and other regulations--in environments with financial frictions and firm entry. The first chapter asks if there is a role for the regulation of the market of funds for firms that lack collateral and have a large uncertainty about their ability to generate profits. To answer the question, it characterizes optimal financial contracts in a competitive environment with risk, adverse selection, and limited liability. In this environment, competition among financial intermediaries always forces them to fund projects with negative expected returns both from a private and from a social perspective. Intermediaries use steep payoff schedules to screen entrepreneurs, but limited liability implies this can only be done by giving more to all entrepreneurs. In equilibrium, competition for the profitable entrepreneurs forces intermediaries to offer better terms to all customers. There is cross-subsidization among entrepreneurs and intermediation profits are zero. The three main features of the framework (competition, adverse selection, and limited liability) are necessary in order to get the inefficient laissez-faire outcome and a role for financial regulation. The result remains robust when firms can collateralize some portion of the credit as long as there is an unsecured fraction. These results provide a motive for regulating the market for unsecured financing to business start-ups. The second chapter quantifies the effect of replacing the corporate income tax by a tax on business owners. This is done by constructing a model with heterogeneous firms, borrowing constraints, costly equity issuance and endogenous entry and exit. Calibrating the model to the U.S. economy, the chapter documents that replacing the corporate income tax with a revenue-neutral common tax on shareholders, the steady-state output would increase by 6.8% and total factor productivity (TFP) by 1.7%. Due to financial frictions, taxes levied at the corporate income level and at the shareholder level are not perfect substitutes because they distort different margins. In the model, firms are hit by productivity shocks and aim to adjust their capital stock in pursuit of optimal size. Optimal firm behavior often dictates reliance on retained earnings for growth. The corporate income tax reduces retained earnings available for investment, thereby delaying capital accumulation. As the retained earnings are not paid back to shareholders, the friction described does not occur when taxes are levied at the dividend level. The mechanism is amplified by endogenous entry and exit and by general equilibrium feedback.
Download or read book Essays in Microeconomic Theory written by Mr. Antoine Yves Marie Lallour and published by . This book was released on 2012 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation consists of two chapters in two different areas of microeconomic theory: the informativeness of prices and optimal taxation. In both of these chapters, I develop a model that lends itself to game-theoretic analysis. Chapter 1 is a theoretical study on the informativeness of prices in financial markets. I study a class of mechanisms that represent a financial market for a security. These mechanisms quote a price, which solely depends on the total number of shares outstanding. Traders can sequentially buy or sell shares of the security, and get to trade many times. Among the class of such mechanisms, I determine which ones lead to immediate revelation of information by the traders, in the sense that traders immediately bring the price to their posterior belief about the value of the security in the first period where they are given an opportunity to trade. I find that while it is possible to find mechanisms that achieve this property for all information structures with conditionally independent signals, it is impossible to find a mechanism that achieves it for every information structure. Chapter 2 develops a model of optimal redistributive taxation for social insurance purposes when agents are able to share risks with a group of relatives and friends, achieving a Pareto optimal allocation within the group. It describes how the sizes of these groups (syndicates) affect the optimal tax rate. When syndicates are exogenously given, the optimal linear tax decreases as the sizes of syndicates increase. A model of joint syndicate formation and optimal policy choice is then proposed. Syndicates are formed by agents for risk-sharing purposes, at a cost which decreases with geographical, social and blood proximity between agents. In setting the income tax rate, the government takes into account the impact of its policy on the efforts made by agents to form syndicates. This may considerably alter the government's problem, to the extent that it may become locally convex and, as proximity decreases (e.g. because related agents are more geographically mobile), the government's optimal policy may jump from a zero tax rate to a substantial positive rate. This could partially explain why social insurance schemes emerged late in the development of countries such as the United Kingdom, France, and the United States.
Download or read book Essays in Public Debt and Taxation written by Neelanjan Datta and published by . This book was released on 2023 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Public debt and taxation are central concerns of economic policy, with important implications for growth, equity, and stability. This dissertation consists of three essays that examine different aspects of these issues, using a combination of theoretical and empirical methods.The first chapter asks the question - can fiscal rules act as private investment stimulus policy? Such rules impose constraints on fiscal policy through mandated limits on government borrowings. Using annual balance sheet data from the universe of Indian firms that publicly release their annual balance sheet statements, and by exploiting the staggered adoption of the Fiscal Responsibility and Budget Management (FRBM) Act by the Indian states, I find that a state's fiscal rule adoption leads an average firm located in the state to increase its stock of fixed capital at the end of the next financial year by USD1.59 million (the pre-treatment sample average is USD10.2 million). To understand the mechanism, I introduce fiscal rules into the framework of Chari, Dovis, and Kehoe (2020). Analytically characterizing the equilibrium dynamics of public debt, private investment, and bank deposits in a dynamic model of optimal taxation with fiscal rules and endogenous financial repression, I show that borrowing constraints on the government will stimulate private investment if the government is unable to commit to repay its existing debt. In this case, banks are forced to hold government bonds, and a fiscal rule causes ”crowding-in” of investment and a commensurate decline in government borrowings from such financially repressed banks. Empirical evidence from state-level banking and public finance data provides support for this mechanism. Fiscal rules can be welfare-improving if the welfare loss from less tax-smoothing is dominated by the welfare gains from less crowding-out of valuable private investment.This provides a welfare-based rationale for the adoption of the FRBM Act by the federal and state governments in India, and contributes to the broader policy debate on fiscal restraints.The second chapter focuses on intergovernmental transfers in the form of loans and grants between a central government and state governments in a federal economy, and how political distortions can affect these transfers. I consider a multi-period political agency model where, in each period, a coalition government at the center has complete discretion over the amount of loans and grants it may give to different states, taking state elections that happen between periods into consideration. State incumbents tax their electorate, and exert effort to produce a local public good. The key feature of the model is that retrospective voters can perceive their tax burden, but can not observe center-state fiscal transfers. The main theoretical result is that the interaction between the extent of alignment of a state with the center, and how swing the state is in elections, affects the fraction of total transfers it receives in the form of loans, with this ratio being a decreasing function of the interactive term. Predictions from the model are tested using novel data from the Indian states over the period 1991-2019, and estimates suggest that an aligned state which is one standard deviation below the average aligned state in terms of the extent of alignment (as measured by the fraction of central cabinet portfolios held by the leading party in the state), and has the same degree of swing-ness (as measured by the fraction of seats assigned to the state in the national legislature that is controlled by the leading party at the center) as the average aligned state, has a 5.44% larger loans to total transfers ratio.Finally, in the third chapter (coauthored with Parimal Bag and Peng Wang), we examine how neighborhood information alters equilibrium auditing policy in tax enforcement. There is increasing reliance on data-driven auditing of businesses and proprietorship. However, the tax returns have garbled signals that are further confounded due to underreporting. We consider a model where entrepreneurs' profits depend on their individual types and a common market shock. A low ability, high profit earner underreports only when she observes her neighbor to have earned low profits: neighborhood information about the performance of other entrepreneurs in the same business prompts such strategic reporting, making the volume statistic of 'high submissions' a meaningful indicator of the market shock. In response auditors scrutinize all low profit returns only if the proportion of high submissions exceeds a threshold cutoff. Because this cutoff is endogenous and depends on the stochastic types and market shock, tax returns cannot systematically avoid audit scrutiny as in exogenous cutoff tax returns models. Auditing is enriched to combat the high 'tax gap', a well-known problem in tax enforcement.
Download or read book Essays on Taxation and Capital Markets written by John Hancock and published by . This book was released on 2001 with total page 97 pages. Available in PDF, EPUB and Kindle. Book excerpt:
