scholarly journals How Socialization Attenuates Tax Competition

2014 ◽  
Vol 46 (1) ◽  
pp. 45-65 ◽  
Author(s):  
Fabrizio Gilardi ◽  
Fabio Wasserfallen
Keyword(s):  
Tax Competition ◽  
Competitive Dynamics ◽  
General Idea ◽  
Intergovernmental Organizations ◽  
Tax Rates ◽  
Strongly Correlated ◽  
Spatial Econometric ◽  
Policy Makers ◽  
Fine Grained ◽  
Tax Changes

Tax competition is the quintessential example of policy interdependence. The general idea is that tax changes in one jurisdiction lead to similar changes in others. However, research has shown that institutional and political constraints limit competition. This article develops another argument: that socialization among policy makers attenuates competitive dynamics by setting limits to the extent of competition that is considered acceptable. Using fine-grained Swiss data and spatial econometric techniques, it shows that personal income tax rates are more strongly correlated among competitors that do not participate in the same intergovernmental organizations. This finding implies that, to some extent, the detrimental consequences of competition can be mitigated by fostering institutionalized forms of interaction among policy makers.

scholarly journals Asymmetric competition in the setting of diesel excise taxes in EU countries

2013 ◽  
Vol 63 (4) ◽  
pp. 423-450 ◽  
Author(s):  
László Paizs
Keyword(s):  
Tax Competition ◽  
Western Europe ◽  
Strategic Interaction ◽  
Competition Model ◽  
Tax Rates ◽  
Elastic Demand ◽  
Country Size ◽  
Eu Countries ◽  
Excise Taxes ◽  
Tax Changes

This paper tests new implications of the asymmetric tax competition model on diesel excise taxes. We extend the standard tax competition model by replacing the unit demand assumption with iso-elastic demand. As a result, not only the level of the equilibrium tax, but also the slope of the tax reaction function depends positively on the size of the country. The new implication is tested on panel data in first differences for 16 countries of Western Europe. The results provide strong evidence for strategic interaction in the setting of diesel excises and confirm the effect of country size on the response to tax changes in neighbouring countries. Strategic interaction between EU countries intensified in the mid-1990s and drove small European countries to set lower diesel tax rates. These results explain why the EU’s minimum tax policy has failed to harmonise diesel tax rates.

When an Industry Peer Is Accused of Financial Misconduct: Stigma versus Competition Effects on Non-accused Firms

2021 ◽  
pp. 000183922110206
Author(s):  
Ivana Naumovska ◽  
Dovev Lavie
Keyword(s):  
Competitive Dynamics ◽  
Negative Consequences ◽  
Competition Effect ◽  
Market Returns ◽  
Stock Market Returns ◽  
Fine Grained ◽  
Competition Effects ◽  
Financial Misconduct ◽  
Industry Peers ◽  
The U.S

Research on misconduct suggests that accusations against industry peers generate negative consequences for non-accused firms (a “stigma effect”). Yet, building on research on competitive dynamics, we infer that such accusations can benefit non-accused firms that compete with these peers (a “competition effect”). To reconcile these opposing perspectives, we posit that the negative stigma effect will increase with greater product market overlap between the non-accused firm and its accused peer, up to a point, beyond which the positive competition effect will counterbalance it. We further conjecture that the competition effect will be relatively more pronounced when the market classification used by investors for assessing the market overlap is more fine-grained. Accordingly, we suggest that more sophisticated investors, who rely on more fine-grained market classifications, increase their shareholdings in non-accused firms to a greater extent than less sophisticated investors as the market overlap between the non-accused firm and the accused peer increases. Using elaborate data on products and investments, we analyze investors’ shareholdings and stock market returns of non-accused firms in the U.S. software industry following accusations of financial misconduct by their industry peers, and we find support for our predictions. Our study elucidates the interplay between stigma and competition following misconduct by industry peers.

scholarly journals Combining disparate data sources for improved poverty prediction and mapping

2017 ◽  
Vol 114 (46) ◽  
pp. E9783-E9792 ◽  
Author(s):  
Neeti Pokhriyal ◽  
Damien Christophe Jacques
Keyword(s):  
Bayesian Learning ◽  
Pearson Correlation ◽  
Gaussian Process Regression ◽  
Multidimensional Poverty ◽  
Environmental Data ◽  
Policy Makers ◽  
Multidimensional Poverty Index ◽  
Fine Grained ◽  
Disparate Data ◽  
Single Data

More than 330 million people are still living in extreme poverty in Africa. Timely, accurate, and spatially fine-grained baseline data are essential to determining policy in favor of reducing poverty. The potential of “Big Data” to estimate socioeconomic factors in Africa has been proven. However, most current studies are limited to using a single data source. We propose a computational framework to accurately predict the Global Multidimensional Poverty Index (MPI) at a finest spatial granularity and coverage of 552 communes in Senegal using environmental data (related to food security, economic activity, and accessibility to facilities) and call data records (capturing individualistic, spatial, and temporal aspects of people). Our framework is based on Gaussian Process regression, a Bayesian learning technique, providing uncertainty associated with predictions. We perform model selection using elastic net regularization to prevent overfitting. Our results empirically prove the superior accuracy when using disparate data (Pearson correlation of 0.91). Our approach is used to accurately predict important dimensions of poverty: health, education, and standard of living (Pearson correlation of 0.84–0.86). All predictions are validated using deprivations calculated from census. Our approach can be used to generate poverty maps frequently, and its diagnostic nature is, likely, to assist policy makers in designing better interventions for poverty eradication.

scholarly journals Inferring object properties from human interaction and transferring them to new motions

2021 ◽  
Author(s):  
Qian Zheng ◽  
Weikai Wu ◽  
Hanting Pan ◽  
Niloy Mitra ◽  
Daniel Cohen-Or ◽  
...  
Keyword(s):  
Human Interaction ◽  
Strongly Correlated ◽  
Recognition Method ◽  
Fine Grained ◽  
Object Property ◽  
Correlated Motions ◽  
Object Properties ◽  
New Synthesis ◽  
Related Object ◽  
Highly Correlated

AbstractHumans regularly interact with their surrounding objects. Such interactions often result in strongly correlated motions between humans and the interacting objects. We thus ask: “Is it possible to infer object properties from skeletal motion alone, even without seeing the interacting object itself?” In this paper, we present a fine-grained action recognition method that learns to infer such latent object properties from human interaction motion alone. This inference allows us to disentangle the motion from the object property and transfer object properties to a given motion. We collected a large number of videos and 3D skeletal motions of performing actors using an inertial motion capture device. We analyzed similar actions and learned subtle differences between them to reveal latent properties of the interacting objects. In particular, we learned to identify the interacting object, by estimating its weight, or its spillability. Our results clearly demonstrate that motions and interacting objects are highly correlated and that related object latent properties can be inferred from 3D skeleton sequences alone, leading to new synthesis possibilities for motions involving human interaction. Our dataset is available at http://vcc.szu.edu.cn/research/2020/IT.html.

scholarly journals Dynamic tax competition between symmetric countries with multiple strategic investors

2021 ◽  
Author(s):  
Kaushal Kishore
Keyword(s):  
Tax Competition ◽  
Initial Period ◽  
Strategic Interaction ◽  
Tax Rates ◽  
Mixed Strategies ◽  
Full Characterization ◽  
Tax Holidays

Abstract Two symmetric countries compete over two-period under a non-preferential taxation regime to attract multiple investors where investors are strategic and investments are sunk once invested. Contrary to the existing results, we find that tax holidays do not arise during the initial period. Equilibria in mixed strategies arise in both periods where competing countries set strictly positive tax rates during the initial period. Strategic interaction between large investors reduces competition and increases tax rates during the initial period. We provide full characterization and uniqueness of equilibria in mixed strategies.JEL classification: F21, H21, H25, H87

scholarly journals What are effects of tax changes on market risk? - a case in listed Viet Nam investment and financial service companies

2021 ◽  
Vol 7 (Extra-E) ◽  
pp. 497-504
Author(s):  
Phan Anh ◽  
Nguyen Dinh Trung ◽  
Dinh Tran Ngoc Huy
Keyword(s):  
Service Industry ◽  
Stock Exchange ◽  
Market Risk ◽  
Financial Service ◽  
Viet Nam ◽  
Tax Rates ◽  
Tax Rate ◽  
Financial Service Industry ◽  
Global Stock Markets ◽  
Tax Changes

The financial crisis has been affected many global stock markets, as well as the Viet Nam stock exchange. This study analyzes the impacts of tax policy on market risk for the listed firms in the non-banking financial service and investment industry, so-called financial service industry, as it becomes necessary. First, by using quantitative and analytical methods to estimate asset and equity beta of total 10 listed companies in Viet Nam financial service industry with a proper traditional model, we found out that the beta values, in general, for many companies are acceptable. Second, under 3 different scenarios of changing tax rates (20%, 25% and 28%), we recognized that there is not large disperse in equity beta values, estimated at 1,048, 1,050 and 1,052.These values are just little higher than those of the listed VN construction firms but much higher than those of listed banking firms. Third, by changing tax rates in 3 scenarios (25%, 20% and 28%), we recognized equity /asset beta are most the same (0,23 and 0,16) if tax rate increases from 20% to 25%, then goes up from 25% to 28%.

scholarly journals THE IMPACT OF TAX POLICY ON ECONOMIC GROWTH, INCOME DISTRIBUTION, AND ALLOCATION OF TAXES

2006 ◽  
Vol 23 (2) ◽  
pp. 28-52 ◽  
Author(s):  
James D. Gwartney ◽  
Robert A. Lawson
Keyword(s):  
Economic Growth ◽  
Income Distribution ◽  
Income Tax ◽  
Tax Rates ◽  
Personal Income Tax ◽  
Income Groups ◽  
Marginal Tax Rates ◽  
Tax Changes ◽  
The Impact ◽  
Distribution Of Income

Using a sample of seventy-seven countries, this paper focuses on marginal tax rates and the income thresholds at which they apply to examine how the tax changes of the 1980s and 1990s have influenced economic growth, the distribution of income, and the share of taxes paid by various income groups. Many countries substantially reduced their highest marginal rates during the 1985-1995 period. The findings indicate that countries that reduced their highest marginal rates grew more rapidly than those that maintained high marginal rates. At the same time, the income distribution in several of the tax cutting countries became more unequal while there was little change or even a reduction in income inequality in most countries that maintained high marginal rates. Finally, the evidence suggests that there was a shift in the payment of the personal income tax away from those with low and middle incomes and toward those with the highest incomes.

scholarly journals An evaluation of the revenue side as a source of fiscal consolidation in high debt economies

2014 ◽  
Vol 41 (6) ◽  
pp. 771-788
Author(s):  
Ritwik Banerjee
Keyword(s):  
General Equilibrium ◽  
Tax Rates ◽  
Consumption Tax ◽  
Policy Makers ◽  
Revenue Generation ◽  
Content Type ◽  
Tax Rate ◽  
Labor Tax ◽  
Capital Tax ◽  
European Economies

Purpose – Unsustainable levels of debt in some European economies are causing enormous strain in the Euro area. Successful debt consolidation in high-debt economies is the single most important objective for the European policy makers. The paper aims to discuss these issues. Design/methodology/approach – The author uses a dynamic general equilibrium closed economy model to compute the dynamic Laffer curves for Portugal, Ireland, Greece and Spain for different class of taxes. The general equilibrium effects of the interaction of labor tax, consumption tax and capital tax is demonstrated. Findings – Location of each economy on its Laffer curve suggests that there exists a scope for considerable revenue generation by raising consumption and labor tax rates but no such possibilities exist for capital tax rate. Thus revenue generation with certain tax rates as instruments, holds key to successful and sustained debt reduction. Originality/value – This to the best of knowledge is one of the first papers which looks closely at the tax revenue – tax rate panel for the major deeply indebted European economies.

An Investigation of the Firm Size—Effective Tax Rate Relation in the 1980s

1993 ◽  
Vol 8 (2) ◽  
pp. 167-182 ◽  
Author(s):  
Thomas C. Omer ◽  
Karen H. Molloy ◽  
David A. Ziebart
Keyword(s):  
Firm Size ◽  
Tax Burden ◽  
Tax Rates ◽  
Corporate Tax ◽  
Effective Tax Rate ◽  
Effective Tax Rates ◽  
Policy Makers ◽  
Tax Rate ◽  
Sample Composition ◽  
Rate Relation

Given the recent emphasis on effective tax rates by policy makers and accounting researchers, this study investigates the relation between firm size and corporate tax burdens on a yearly and an industry basis. The analysis is conducted using five effective tax measures employed in previous studies in order to determine the degree to which inferences between size and tax burden are robust across these different effective tax measures. The results indicate that the relation is fairly robust across measures and, in instances in which the relation is not upheld by our analysis, sample composition explains differences in the observed relation between firm size and corporate tax burden.

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