Download or read book Essays on the Macroeconomic Effects of Taxation written by Tatyana A. Koreshkova and published by . This book was released on 2001 with total page 174 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Essays on the Macroeconomic Effects of Taxation written by Sepideh Raei and published by . This book was released on 2018 with total page 118 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation is a collection of two essays relating to the dynamic effects of taxation. In the first chapter, I focus on a key challenge faced by tax reforms: their short-run welfare consequences. I examine a consumption-based tax reform that, despite the long-run welfare gains it generates, causes the welfare for some groups such as retirees or the working poor to fall during transition between steady states. Using a life-cycle model with heterogeneous households, I show how to devise a transition path from the current U.S. federal tax system to a consumption-based tax system that improves the welfare of current generations as well as those who are born in the long-run steady state. In a nutshell, all households alive at the time of the policy change can choose when they want to switch to the new tax system, or whether they want to switch at all. I find that implementing a tax reform with this feature improves the welfare of 95% of the population in the short run, compared to less than 25% of population in the conventional case with no choice. It takes about 20 years for half of the population to pay their taxes under the new tax code.In the second chapter, I study the aggregate consequences of the differential tax treatments of U.S. businesses focusing on the role of legal forms of organization. I develop an industry equilibrium model in which the organizational form is an endogenous choice.This model incorporates the key trade-off that businesses face when choosing their legal forms: the tax treatment of the business income; the access to external capital, and the potential level and evolution of productivity over time.The model is matched to the firm dynamic features of U.S. businesses and the contributing share of each legal form in total output. Using the model, I study revenue-neutral tax reforms in which legal forms receive the same tax treatments, and I find that the incentives induced by tax structure for organizational form and external finance are both large. Relative to the benchmark economy, unifying the tax code for all legal forms, can lead to 8% increase in the aggregate output.

Download or read book Essays on the Macroeconomic Effects of Taxation written by Tatyana A. Koreshkova and published by . This book was released on 2001 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Essays on the Macroeconomic Effects of Taxation written by Markku Lehmus and published by . This book was released on 2012 with total page 138 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 Macroeconomic Effects of Tax Rate and Base Changes Evidence from Fiscal Consolidations written by Ms.Era Dabla-Norris and published by International Monetary Fund. This book was released on 2018-09-28 with total page 47 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines the macroeconomic effects of tax changes during fiscal consolidations. We build a new narrative dataset of tax changes during fiscal consolidation years, containing detailed information on the expected revenue impact, motivation, and announcement and implementation dates of nearly 2,500 tax measures across 10 OECD countries. We analyze the macroeconomic impact of tax changes, distinguishing between tax rate and tax base changes, and further separating between changes in personal income, corporate income, and value added tax. Our results suggest that base broadening during fiscal consolidations leads to smaller output and employment declines compared to rate hikes, even when distinguishing between tax types.

Download or read book Essays in Macroeconomics written by Syed Muhammad Hussain and published by . This book was released on 2012 with total page 176 pages. Available in PDF, EPUB and Kindle. Book excerpt: "This dissertation considers two distinct issues in macroeconomics. The first and second chapters look at the effects of changes in tax policy on productivity of an economy from an empirical and theoretical stand point. The third chapter concerns the implications of cross-national migration for long-run growth and welfare. In the first chapter, I analyze the effects of tax policy changes on US total factor productivity (TFP). A substantial fraction of the income differences between countries can be explained by differences in TFP. Thus it is important to know the effects of policy changes on TFP. This is the first study that looks at the effect of changes in tax policy on TFP. Data on tax shocks comes from the sources used by Romer and Romer (2009). Empirical estimates show that a 1 percent permanent exogenous rise in total taxes lowers TFP by up to 1.75 percent in the long run. The drop in output associated with the increase in taxes is between 2 and 3 percent. Thus the change in TFP explains most of the movement in output that follows a tax change. Individual income taxes have a strong and significant effect on TFP whereas corporate income taxes do not significantly affect TFP or most other macroeconomic variables. The analysis also shows that the effects of tax changes on output and on observable inputs have become smaller over time while the effects on TFP and on wages have become larger over time. In the second chapter, I build a dynamic stochastic general equilibrium model to explain the dynamic macroeconomic effects of tax changes. The model has two key features: learning-by-doing at the worker level and endogenous TFP evolution whereby TFP growth depends on investment and human capital. When I calibrate the learning-by-doing and TFP evolution processes using micro evidence on the effect of human capital accumulation on productivity, the effect of taxes on TFP in the model is substantially less elastic than in the data. When I instead select parameters to match key aggregate moments, the estimated model is successful in accounting for the qualitative and quantitative nature of the empirical results. However, this requires stronger learning-by-doing than seems reasonable given the microeconomic evidence. I argue that the gap between the model and data may arise because some of the tax changes labeled as exogenous by Romer and Romer (2009) are in fact endogenous in which case the empirical results would overstate the true effects of tax changes on TFP. The difference between model and data may also arise because of the model not being rich enough. The model drives its components from both the business cycle and endogenous growth literature, thus the gap between model and data perhaps shows that the literature is not adequate in explaining observed patterns in the data. The third chapter characterizes the effect of the much-discussed 'brain drain' - the migration of relatively skilled workers from less to more advanced economies - on long-run development in the workers' home nation. A summary of the model is as follows: I employ a life cycle model with two countries, one poor and one rich, with endogenous migration and return migration decisions from and to the poor country. Workers working in the poor country receive wage offers from the rich country and decide to migrate to the rich country if the wage offer and subsequent wage growth gives them a higher lifetime utility than from staying in the poor country. The workers who migrate to the rich country have higher wage and skill growth rates than the workers in poor. The central question of this chapter is to evaluate the costs and benefits of a policy where the government of the poor country incentivizes the expatriates to return from the rich country to the poor country to take advantage of their superior skills that they accumulate while working in the rich country. The direct benefit from calling back workers from the rich country is the increase in output of the poor country because of the higher skills of return migrants relative to domestic workers. The indirect benefit to the poor country is the increase in skill level of domestic workers because of the positive externalities from the returning workers. However, every worker that is called back to work in the poor country must also be given high enough compensation so that he is indifferent between working in the two countries. This is the cost of bringing a worker back. These costs and benefits determine 1) whether it is beneficial to call expatriates back or not, and 2) which workers benefit the country the most. Results show that the economy can gain the most by calling back workers with skill levels that are 1.28 standard deviations above the mean skill level of domestic workers. In the model, since skill is a combination of education and experience, this skill level in real life can either correspond to highly skilled young professionals or highly experienced professional or a combination of both. Calling back workers of lower skill levels will lower the gain since their experience in the rich country would not be high and hence the superior skill accumulation would be lower. Calling back workers of higher skill levels will lower the gain since the cost of calling them back would be too high"--Page v-vii.

Download or read book Taxation and the Promotion of Human Happiness written by George Warde Norman and published by Edward Elgar Publishing. This book was released on 2009 with total page 264 pages. Available in PDF, EPUB and Kindle. Book excerpt: This edition of a hitherto unknown work demonstrates the importance of utilitarianism to liberal thinking on taxation. As such, this unique book will appeal to specialists in the history of economic thought and to historians, especially those with an interest in the history of public finance, an area in which G.W. Norman's contribution has been almost entirely overlooked.

Download or read book Essays in Business and Macroeconomics written by Cody Frederick Kallen and published by . This book was released on 2023 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: My research has broadly focused on firm heterogeneity and its macroeconomic implications. Firm heterogeneity can generate important macroeconomic effects and interact with policies in ways that cannot be achieved by models of representative firms. This theme characterizes the research in this dissertation. In the first chapter, I show that profit shifting increases investment in both high-tax and low-tax countries by reducing the distortive effects of corporate income taxes. This interaction increases business cycle correlations between high-tax and low-tax countries and decreases them between high-tax and other high-tax countries. I find direct supportive evidence for the interaction between profit shifting and investment, and I provide causal evidence supporting the business cycle effects using an event study. In equilibrium, eliminating profit shifting would increase U.S. corporate tax revenue but decrease it in tax havens and the rest of the world; the investment response to this would decrease investment in the U.S. and in tax havens. The second chapter explores how multinational production, profit shifting and offshoring change optimal corporate tax designs, which consist of the tax rate, the treatment of the normal return on capital, and the tax system for multinationals. The model produces four "beggar-thy-neighbor" policy externalities. Profit shifting and offshoring lead to lower tax rates relative to socially optimal, while redistribution from foreign shareholders and partially internalized gains from cross-border activities lead to higher tax rates. Tax competition may not reduce corporate tax rates, as governments can respond by switching between tax systems. Because of these policy externalities, tax competition could increase or decrease welfare. In theory, markets clear in equilibrium; in practice, they don't. Goods-producing firms can stock out of goods to sell, leaving some customers empty-handed. These mismatches between supply and demand became particularly salient during the Covid pandemic. In this chapter, I develop a model of demand and supply mismatches based on imperfect forecasting of idiosyncratic demand shocks. Shortages create unpriced welfare losses for consumers, and inefficient overproduction and overpricing by firms. The estimated model matches external data on stockout rates historically and during the pandemic, it and explains why consumer sentiment remained depressed in 2021.

Download or read book Growth Effects of Income and Consumption Taxes written by Gian Maria Milesi-Ferretti and published by . This book was released on 1998 with total page 48 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Three Essays on the Macroeconomic Effects of Financial Structure written by William Osterberg and published by . This book was released on 1986 with total page 426 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Essays on the Macroeconomic Effects of the Underground Sector written by Catalina Granda-Carvajal and published by . This book was released on 2011 with total page 306 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Essays in Fiscal and Monetary Policy written by Geeta Garg and published by . This book was released on 2021 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation consists of three essays concerning the macroeconomic effects of uncertainty about future path of fiscal and monetary policy.The first chapter provides a quantitative assessment of the impact of anticipated tax changes in Japan using a Vector Autoregressive (VAR) framework. For this paper, I utilize a new dataset that documents all the legislated federal and local government taxes in Japan which have been classified as exogenous based on the narrative evidence. The time period between the announcement and the implementation dates allows me to capture the anticipation effects of tax changes. The constructed series of (exogenous) tax shocks is incorporated directly in a VAR. I find that the anticipation effects of tax policy are important and have effects that are different from the unanticipated changes in tax policy. An unanticipated tax cut is expansionary and leads to an increase in output, investment and consumption. An anticipated tax cut however generates a slowdown in the quarters before its implementation and leads to a decline in all three variables. Once the anticipated tax cut is implemented, consumption recovers but investment and output continue to stay below their long-run trend. Lastly, I show that tax shocks are an important driver of certain business cycle episodes in Japan.The second paper studies the effects of fiscal uncertainty in Japan that arises due to the repeated failure of fiscal authorities in achieving the announced promises of fiscal consolidation in the future. In a New-Keynesian DSGE model with rational expectations, I examine the extent to which the uncertainty due to these repeated promises explain the slowdown experienced by the Japanese economy. I assume Markov-switching tax rules such that the response of taxes to debt vary with the fiscal stance of the government. I document that these promises generate time-variation in both the expected value and volatility of tax rates. Even in the regime in which taxes do not stabilize debt, the rising level of debt create expectations of higher future taxes causing economic contraction in the current period. These expectations lead to a decline in consumption, investment, labor hours, output and an increase in the level of debt which is also evident in the Japanese data since the 1990s.The third chapter examines the effects of uncertainty about the future path of monetary policy which is embedded in the news about who will be the future chairman of the Federal Reserve. To the extent the appointments of the Federal Reserve chairmen convey new information about future monetary policy, the financial markets respond to them as a result of revision in their expectations of the future path of interest rates or inflation. For this purpose, I construct a new dataset based on the daily counts of news articles that discuss these appointments. The underlying assumption is that the number of such news articles published on any day roughly measures the \ew information" about the direction of monetary policy. I find that the financial markets reacted adversely (Yen appreciated against USD, bond yields increased and stock returns slightly declined) in response to Volcker's departure or Greenspan's (first) appointment. However there was a muted response of financial markets to the appointments/departures that occurred afterwards.

Download or read book Three Essays on the Effect of Taxes on Economic Behavior written by Anil Kumar and published by . This book was released on 2004 with total page 172 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Three Essays on U S Tax and Transfer Programs written by Amanda Ryan Eng and published by . This book was released on 2021 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation is comprised of three essays that explore the impacts of tax and transfer programs for low-income households. In the first chapter, coauthored with Kevin Rinz, we study how income affects the take up of means-tested programs. Pro-work policies usually decrease household participation in traditional safety-net programs like the Supplemental Nutrition Assistance Program (SNAP) and the Temporary Assistance for Needy Families (TANF) program. This negative relationship could be driven by newly working households becoming more self-sufficient or by decreased eligibility and higher costs to participate in the programs. Understanding which of these factors drives the negative relationship between income and program participation is important for understanding the mechanisms driving take-up decisions and for designing effective policies. However, the designs of SNAP and TANF make it difficult to distinguish these factors. In this paper, we estimate how demand for SNAP and TANF changes with income, holding eligibility and take-up costs constant. We use a discontinuity in child tax benefits, which do not affect program eligibility, to isolate the effect of income on program participation. We additionally show evidence that take-up costs are the same for households on either side of the discontinuity. We find that although eligibility for tax credits decreases households' tax liability by \$2,219 on average, the additional income results in no measurable difference in program participation. These findings suggest that the negative correlation between income and program take-up is driven by households losing eligibility or facing greater participation costs and that there could be significant benefits to expanding eligibility for these programs to more working households. In the second chapter, coauthored with Jordan Matsudaira, we study how Pell Grants affect students' success in higher education. The Pell Grant program is the largest federal program aimed at lowering the cost of higher education for low-income students. Most prior work has found that Pell grants have little or no effect on students' success, but recently Denning et al. (2019) estimate that Pell grants significantly increased completion rates and post-college earnings for four-year college students in Texas. These conflicting findings may be driven by the fact that previous studies are limited to specific states or school systems. In our paper, we estimate the average effect of Pell on student outcomes across a much broader swath of higher education than has been examined in the literature to date. We use administrative data covering the universe of federal aid recipients. Our research design makes use of discontinuities and kinks in the Pell grant schedule to estimate how additional grant aid affects students' outcomes. We find that the effect of Pell on completion rates and post-college earnings are much weaker than the estimates of Denning et al. (2019). We argue that this difference may be partly the result of interactions between Pell grants and a particularly generous state aid program in Texas. Our findings underscore the importance of understanding how aid programs like Pell grants interact with the larger financial aid system. In the final chapter, I investigate the macroeconomic effects of the Earned Income Tax Credit (EITC). The EITC has been shown to significantly increase labor force participation and much of the credit is spent instead of saved. These two effects could result in medium to long run growth of the economy. Additionally, because the EITC is distributed when households file their taxes around February and March, it particularly increases consumption around these months and could shift the timing of economic activity within a year. I use simulated instruments and a variety of estimation methods to explore how the EITC affects state-level economic indicators. I find that the EITC has large effects on both employment and state GDP in the medium run, with only weak evidence that it impacts the timing of economic activity during the year. From these analyses, I conclude that the main way the EITC affects the broader economy is by promoting growth.

Download or read book A Firm Lower Bound Characteristics and Impact of Corporate Minimum Taxation written by Aqib Aslam and published by International Monetary Fund. This book was released on 2021-06-08 with total page 50 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines the role of minimum taxes and attempts to quantify their impact on economic activity. Minimum taxes can be effective at shoring up the corporate tax base and enhancing the perceived equity of the tax system, potentially motivating broader taxpayer compliance. Where political and administrative constraints prevent reforms to the standard corporate income tax, a minimum tax can help mitigate base erosion from excessive tax incentives and avoidance. Using a new panel dataset that catalogues changes in minimum tax regimes over time around the world, firm-level analysis suggests that the introduction or reform of a minimum tax is associated with an increase in the average effective tax rate of just over 1.5 percentage points with respect to turnover and of around 10 percent with respect to operating income. Minimum taxes based on modified corporate income lead to the largest increases in effective tax rates, followed by those based on assets and turnover.

Download or read book Economics of Public Finance written by and published by Atlantic Publishers & Distri. This book was released on 1984 with total page 182 pages. Available in PDF, EPUB and Kindle. Book excerpt: