scholarly journals Measuring the efficiency of VAT reforms: a demand system simulation approach

2020 ◽  
Author(s):  
Peter Tóth ◽  
Andrej Cupák ◽  
Marian Rizov
Keyword(s):  
Value Added ◽  
Policy Implications ◽  
Demand System ◽  
Simulation Approach ◽  
Demand Model ◽  
Welfare Gain ◽  
Tax Reforms ◽  
Household Level ◽  
Fiscal Revenue ◽  
New Evidence

Abstract Using an estimated demand model, we simulate household-level demand responses to the recent Slovak value added tax (VAT) reform and its hypothetical alternatives. We use simulation results, instead of the standard approximate measures, for constructing an improved efficiency indicator of tax reforms as a ratio of welfare and fiscal revenue effects and call it marginal welfare gain (MWG). We also contribute to the literature on optimal structure of indirect taxes and on marginal tax reforms with new evidence of actual and hypothetical reforms that could increase the welfare of households at zero fiscal costs. Regarding the general policy implications of our results, we conclude that using a demand model to rank commodities according to their MWGs can be helpful for designing both efficient and equitable VAT reforms.

scholarly journals Empirical evidence on the impact of recent Korean tax reforms

2018 ◽  
Vol 15 (4) ◽  
pp. 35-47
Author(s):  
Namryoung Lee ◽  
Charles Swenson
Keyword(s):  
Research And Development ◽  
Empirical Evidence ◽  
Natural Experiment ◽  
Value Added ◽  
Income Taxes ◽  
Policy Implications ◽  
Value Added Tax ◽  
Tax Reforms ◽  
Cost Cutting ◽  
The Impact

In 2011, Korea required all firms to report all value added tax (VAT) invoices electronically to tax authorities. This unique law provided a natural experiment to examine the effects of this disclosure on income taxes and firms’ related responses. The authors find that this additional required disclosure caused firms to become less aggressive on their income taxes, and that they were unable to pass increased tax burdens forward to consumers or backward to suppliers and labor. To maintain, profitability firms cut research and development (R&D) costs, and this cost cutting was larger for tax aggressive firms. Policy implications of this unintended result are discussed.

The Impact of the Business Environment on the Formalization of Informal Firms. The Case of Kosovo

Südosteuropa ◽  
2020 ◽  
Vol 68 (4) ◽  
pp. 505-529
Author(s):  
Kujtim Zylfijaj ◽  
Dimitar Nikoloski ◽  
Nadine Tournois
Keyword(s):  
Negative Impact ◽  
Positive Impact ◽  
Business Environment ◽  
Positive Influence ◽  
Policy Implications ◽  
Tax Reforms ◽  
Firm Level ◽  
Characteristics Analysis ◽  
Significant Negative Impact ◽  
The Impact

AbstractThe research presented here investigates the impact of the business environment on the formalization of informal firms, using firm-level data for 243 informal firms in Kosovo. The findings indicate that business-environment variables such as limited access to financing, the cost of financing, the unavailability of subsidies, tax rates, and corruption have a significant negative impact on the formalization of informal firms. In addition, firm-level characteristics analysis suggests that the age of the firm also exercises a significant negative impact, whereas sales volume exerts a significant positive impact on the formalization of informal firms. These findings have important policy implications and suggest that the abolition of barriers preventing access to financing, as well as tax reforms and a consistent struggle against corruption may have a positive influence on the formalization of informal firms. On the other hand, firm owners should consider formalization to be a means to help them have greater opportunities for survival and growth.

scholarly journals ANALISIS POLA KONSUMSI DAN MODEL PERMINTAAN IKAN MENURUT KARAKTERISTIK RUMAH TANGGA DI INDONESIA

2018 ◽  
Vol 13 (1) ◽  
pp. 73 ◽  
Author(s):  
Freshty Yulia Arthatiani ◽  
Nunung Kusnadi ◽  
Harianto Harianto
Keyword(s):  
Fish Consumption ◽  
Income Elasticity ◽  
Fish Distribution ◽  
Consumption Patterns ◽  
Demand System ◽  
Coefficient Of Determination ◽  
Almost Ideal Demand System ◽  
Demand Model ◽  
Demand Models ◽  
The Government

ABSTRAKTujuan penelitian ini adalah untuk mendeskripsikan pola konsumsi ikan di Indonesia dan mengidentifikasi faktor-faktor yang mempengaruhi permintaan ikan menurut karakteristik rumah tangga di Indonesia. Penelitian ini menggunakan data SUSENAS yang dilaporkan oleh Badan Pusat Statistik pada bulan Maret 2016. Pola konsumsi ikan dianalisis menggunakan statistik deskriptif dan model permintaan ikan dianalisis dengan menggunakan pendekatan model Linnear Approximation Almost Ideal Demand System (LA/AIDS). Hasil riset menunjukkan bahwa pola konsumsi rumah tangga di Indonesia dikelompokkan menjadi konsumsi ikan air laut segar sebesar 22.10 kg/kapita/tahun, ikan air tawar/payau segar sebesar 16.75 kg/kapita/tahun, udang segar sebesar 9.58 kg/kapita/tahun dan ikan olahan sebesar 4.22 kg/kapita/tahun. Dugaan model permintaan memberikan hasil cukup baik dengan 82.15% dari semua peubah berpengaruh signifikan terhadap fungsi permintaan kelompok ikan dan koefisien determinasi sebesar 27.06%. Nilai elastisitas pendapatan mengindikasikan bahwa seluruh kelompok ikan merupakan barang normal dan ikan olahan cenderung inelastis, sedangkan dari nilai elastisitas harga menunjukkan tanda negatif yang sesuai dengan teori ekonomi. Nilai elastisitas silang antar kelompok ikan menunjukkan hubungan yang bervariasi antar kelompok. Implikasi kebijakan yang dapat disarankan untuk meningkatkan konsumsi ikan segar adalah dengan peningkatan ketersediaan ikan melalui kebijakan peningkatan produksi dan peningkatan efektifitas distribusi ikan. Kebijakan promosi dan edukasi masih diperlukan untuk meningkatkan konsumsi ikan olahan karena sifatnya yang inelastis  terhadap perubahan harga dan pendapatan.Title: Analysis of Fish Consumption Patterns and Fish Demand Model Based on Household’s Characteristics in IndonesiaABSTRACTThis study aims to describe the pattern of fish consumption in Indonesia and to identify factors affecting household’s fish demand in Indonesia as well as estimating the elasticities of income and price. The data analyzed were mainly obtained from the SUSENAS Database-a nation social economy survey  conduct by the Indonesian Bureau of Statistic (BPS- during march 2016. Fish consumption patterns were analyzed using descriptive statistical analysis, while fish demand models were analyzed by Linnear Approximation Almost Ideal Demand System (LA/AIDS). Research shows that household consumption patterns in Indonesia are grouped into consumption of marine fish at 22.10 kg / capita / year, freshwater/brackish fish at 16.75 kg / capita / year, fresh shrimp at 9.58 kg / capita / year and processed fish amounted to 4.22 kg / capita / year. The estimation of the demand model gives quite good results with82,15% of all variables have a significant effect on the demand function of fish groups and the coefficient of determination is 27.06%. The value of income elasticity showed that all fish groups are normal goods and were negatively related to prices. The cross elasticities showed variation relationship between fish groups. With such result, in order for the government to be able to push the fish consumption level furtherwould require an increasing fish availbility through policies to increase production and effectiveness of fish distribution for fresh fish. Meanwhile education and promotion policies are necessary to increase consumption of processed fish because of their inelastic demand for changes in prices and income.

scholarly journals Intention to move and residential satisfaction: evidence from Poland

Equilibrium ◽  
2020 ◽  
Vol 15 (2) ◽  
pp. 341-360
Author(s):  
Piotr Maleszyk ◽  
Arleta Kędra
Keyword(s):  
International Migration ◽  
Life Stage ◽  
Value Added ◽  
Residential Satisfaction ◽  
Policy Implications ◽  
Urban Migration ◽  
Logit Models ◽  
Ordered Logit ◽  
Financial Situation ◽  
Intention To Move

Research background: Residential mobility affects the spatial structure of cities and urban development. Longer-distance migration has many additional implications: it affects the demographic situation of a sending area as well as its growth prospects. The literature on interregional and especially international migration regards residential satisfaction as being of at least secondary importance. More attention to this concept is given in research on intra-urban migration and suburbanisation. In a seminal paper of Speare (1974), residential satisfaction was found to be the best predictor of the willingness to move. However, determinants of mobility are country-specific. Purpose of the article: Answering the following research questions: 1) What is the scale and selectivity of the intention to move among city residents? 2) Does residential satisfaction explain variation in migration intentions? Methods: The data are derived from the PAPI survey on life quality in Lublin, Poland (sample: 1101 residents). We build ordered logit models explaining residents’ declarations regarding different types of migration (intra-urban migration, suburbanisation, interregional and international migration) with various proxies of residential satisfaction, as well as financial situation and demographic attributes. Findings & Value added: The propensity to migrate was declared by approx. 15–30% of respondents, depending on the type of migration, which indicates relatively low mobility as against EU countries. We confirm that the intention to move is highly selective. The estimated ordered logit models explaining the intention to move prove that satisfaction with housing and neighbourhood characteristics along with life-stage characteristics are relevant predictors of intention to move both within and outside the region. We disregard the opinion that unemployment and adverse financial situation are key drivers of mobility in contemporary Poland. In a more international context, we provide evidence on how long- and short-distance migration are different in nature and discuss some policy implications regarding countering depopulation in peripheral areas.

scholarly journals Pakistan’s Experience with the Pakistan–China FTA: Lessons for CPEC

2017 ◽  
Vol 22 (Special Edition) ◽  
pp. 1-24 ◽  
Author(s):  
Theresa Theresa ◽  
Nida Jamil ◽  
Azam Chaudhry
Keyword(s):  
Free Trade Agreement ◽  
Market Access ◽  
Value Added ◽  
Trade Agreement ◽  
Policy Implications ◽  
Firm Level ◽  
Trade Data ◽  
Chinese Markets ◽  
The Impact ◽  
Tariff Reductions

As Pakistan enters the CPEC era, there is a sense of optimism as well as concern in the country, given the uncertain economic impact of this major collaboration between China and Pakistan. Using firm-level and trade data, we empirically test the impact of the 2006 free trade agreement (FTA) between the two countries on the productivity, size and value added of potentially affected Pakistani firms. These results have important policy implications for CPEC initiatives. We start with a difference-in-difference analysis, comparing trends in those sectors in Pakistan made more vulnerable by tariff reductions on Chinese goods relative to sectors for which the tariff did not change significantly. Next, we examine those sectors in Pakistan that were given greater access to Chinese markets through reductions in the Chinese tariff on Pakistani goods relative to sectors for which market access remained roughly the same. In the sectors made more vulnerable by reductions in Pakistani tariffs on Chinese goods, imports to Pakistan have risen, while productivity, value added and value added per worker have fallen relative to other sectors since the FTA. In the sectors for which Pakistan gained access to Chinese markets, exports and employment have risen, but productivity and value added have fallen relative to other sectors since the FTA.

scholarly journals The Role of Technical Innovation and Development of Industrial Sector in Korean International Business

2021 ◽  
Vol 22 (1) ◽  
pp. 55-73
Author(s):  
Ali Mohammed Khalel Al-Shawaf ◽  
Tahira Yasmin
Keyword(s):  
Time Series Data ◽  
Positive Impact ◽  
Generalized Method Of Moments ◽  
Value Added ◽  
Industrial Sector ◽  
Least Square ◽  
Policy Implications ◽  
Series Data ◽  
Significance Level

With the pace of development and competitiveness, innovation plays an important role to capture the market share. Various countries have effective strategies to enhance Research and Development (R&D) and exchange value added products in international market. So, based on this the aim of this research is to examine the role of R&D, industrial design and charges for intellectual property in innovative exports in South Korean economy. Time series data for the period 1998 to 2017, Ordinary Least Square (OLS) and Generalized Method of Moments (GMM) models are used to determine the dynamic interrelationship among the study variables. In summary, the overall results show that there is co-integration rank of in both trace test and value test at 1% significance level. Moreover, OLS and GMM findings depict that there is significant and positive coefficient for ID & RD which represent that they have positive impact on HT. Whereas, the IP displays a negative and significant relationship with high technology exports accordingly. Lastly, the diagnostic tests show that model is stable for the study time period and result is reliable. The current study also suggests some policy implications which can enhance innovative export products of South Korea while enhancing R&D.

scholarly journals Professional Opinions And Attitudes On Tax Policy In Bosnia And Herzegovina With A Special Focus On The Federation Of Bosnia And Herzegovina

2015 ◽  
Vol 10 (2) ◽  
pp. 29-44 ◽  
Author(s):  
Lejla Lazović-Pita ◽  
Ana Štambuk
Keyword(s):  
Bosnia And Herzegovina ◽  
Tax Policy ◽  
Income Tax ◽  
Value Added ◽  
Special Focus ◽  
Tax Reforms ◽  
Tax Base ◽  
Excise Duty ◽  
Efficiency Principle ◽  
Definition Of

Abstract This research is based on tax policy opinion survey data collected in Bosnia and Herzegovina (B&H) among tax experts. A special focus of the survey was to investigate the consequences of the different institutional environments that exist between the two entities of the country. After having reviewed all previous tax reforms in B&H, the most interesting results suggest that respondents agree on the introduction of a progressive personal income tax (PIT) and excise duty on luxury products, the maintenance of personal and family allowances and the maintenance of the current value added tax (VAT) and corporate income tax (CIT) rates. However, differences exist in the respondents’ perceptions about the introduction of reduced VAT rates, the regressivity of the VAT, and giving priority to the equity principle over the efficiency principle in taxation. Probability modelling highlighted these differences and indicated inconsistencies in the definition of the PIT tax base, namely the comprehensiveness of the PIT base under the S-H-S definition of income.

Sign in / Sign up

Export Citation Format

Share Document