scholarly journals A behavioral and welfare analysis of progressive forest taxation

2003 ◽  
Vol 33 (12) ◽  
pp. 2352-2361 ◽  
Author(s):  
Erkki Koskela ◽  
Markku Ollikainen
Keyword(s):  
Social Welfare ◽  
Welfare Effects ◽  
Forest Stand ◽  
Tax Revenue ◽  
Sufficient Condition ◽  
Site Productivity ◽  
Tax Rate ◽  
Neutral Site ◽  
Unit Taxes ◽  
Rotation Age

We use the Hartman rotation model to study behavioral and social welfare effects of forest tax progression. The following new results are shown for harvest and timber taxes. First, a tax-revenue neutral increase in the timber tax rate, compensated by a higher tax exemption, will shorten the optimal private rotation age. A sufficient condition for this to hold for the yield and unit taxes is that the marginal valuation of amenities is nondecreasing with the age of the forest stand. Second, for the socially optimal forest taxation, if society can use the neutral site productivity tax to collect tax revenue, the proportional forest tax is enough to internalize the externality caused by private harvesting. Finally, even though site productivity tax is not available, the tax structure should be designed so that tax exemption is neutral, implying that the optimal corrective forest taxes remain unchanged.

scholarly journals Tax Policy and Toxic Housing Bubbles in China

2020 ◽  
Vol 0 (0) ◽  
Author(s):  
Pengfei Jia ◽  
King Yoong Lim
Keyword(s):  
Social Welfare ◽  
Tax Policy ◽  
Economic Transition ◽  
Welfare Effects ◽  
Output Growth ◽  
Tax Rate ◽  
Aggregate Consumption ◽  
Optimal Tax ◽  
Speed Up ◽  
Housing Bubbles

AbstractThis paper explores the effects of a government tax policy in a growth model with economic transition and toxic housing bubbles applied to China. Such a policy combines taxing entrepreneurs with a one-time redistribution to workers in the same period. Under the tax policy, we find that the welfare improvement for workers is non-monotonic. In particular, there exists an optimal tax at which social welfare is maximized. Moreover, we consider the welfare effects of setting the tax at its optimum. We show that the tax policy can be welfare-enhancing, comparing to the case without active policies. The optimal tax may also yield a higher level of welfare than the case even without housing bubbles. In addition, our simple numerical exercise shows that the optimal tax rate is about 23%;, and social welfare is significantly improved with such a tax policy. Finally, we extend the benchmark economy to a multi-period setting and calibrate the model to China. Our results show that a 20%; tax rate can speed up economic transition and increase output growth. Between 1998 and 2012, aggregate consumption is 4.86%; higher under active tax policies.

Transitioning to a higher retirement age with exponential and quasi-hyperbolic discounters in mixed economies

2020 ◽  
Author(s):  
Sarah Lynne Salvador Daway-Ducanes
Keyword(s):  
Overlapping Generations ◽  
Hyperbolic Discounting ◽  
Welfare Effects ◽  
Retirement Age ◽  
Tax Rate ◽  
Welfare Impacts ◽  
The Social ◽  
Welfare Implications ◽  
Pension Benefits ◽  
Exponential Discounting

Abstract This paper analyses the macroeconomic and welfare effects of a higher retirement age within a dynamic overlapping generations framework, wherein exponential discounting and sophisticated quasi-hyperbolic discounting agents coexist in ‘mixed economies’. The transitional dynamics of economic aggregates depend on the proportion of QHD agents, and the extent to which reducing the social security tax rate mitigates crowding-out effects on savings and enables both lower pension contributions and higher pension benefits. Welfare impacts across agent types and cohorts differ accordingly: QHD agents employ the higher retirement age as a commitment mechanism to mitigate the adverse welfare implications of present-biasedness.

Ireland faces economic uncertainty with OECD reforms

2021 ◽  
Keyword(s):  
Tax Revenue ◽  
Economic Uncertainty ◽  
Corporate Tax ◽  
Content Type ◽  
Tax Rate ◽  
Sinn Fein ◽  
Fiscal Spending

Significance This framework laid out two pillars of reform. Pillar One would see large companies liable for tax in the end-market jurisdiction where their goods or services are used or consumed. Pillar Two would set a minimum tax rate of 15%. Impacts Ireland will probably support the reforms by October, and in return it may get some concessions over implementation or sectoral coverage. Reduced corporate tax revenue may result in tighter fiscal spending, which would play into the hands of the opposition Sinn Fein. The corporate tax proposals come at a particularly bad time for the Irish economy, which is already facing the consequences of Brexit.

scholarly journals Cards on the Table: Efficiency and Welfare Effects of the No-Surcharge Rule

2018 ◽  
Vol 17 (1) ◽  
pp. 25-50 ◽  
Author(s):  
David Henriques
Keyword(s):  
Social Welfare ◽  
Optimal Policy ◽  
Network Externalities ◽  
Welfare Effects ◽  
Retail Price ◽  
Electronic Payment ◽  
Price Efficiency ◽  
Payment Card ◽  
The Social ◽  
Card Payment

Abstract In Electronic Payment Networks (EPNs), the No-Surcharge Rule (NSR) requires that merchants charge at most the same amount for a payment card transaction as for cash. In this paper, I use a three-party model (consumers, local monopolistic merchants, and a proprietary EPN) with endogenous transaction volumes, heterogeneous card use benefits for merchants and network externalities of card-accepting merchants on cardholders to assess the efficiency and welfare effects of the NSR. I show that the NSR: (i) promotes retail price efficiency for cardholders, and (ii) inefficiently reduces card acceptance among merchants. The NSR can enhance social welfare and improve payment efficiency by shifting output from cash payers to cardholders. However, if network externalities are sufficiently strong, the reduction of card payment acceptance affects cardholders negatively and, with the exception of the EPN, all agents will be worse off under the NSR. This paper also suggests that the NSR may be an instrument to decrease cash usage, but the social optimal policy on the NSR may depend on the competitive conditions in each market.

scholarly journals Malaysian corporate tax rate and revenue: the application of Ibn Khaldun tax theory

2018 ◽  
Vol 10 (2) ◽  
pp. 251-262
Author(s):  
Hairul Azlan Annuar ◽  
Khadijah Isa ◽  
Salihu Aramide Ibrahim ◽  
Sakiru Adsebola Solarin
Keyword(s):  
Cash Flow ◽  
Positive Impact ◽  
Tax Revenue ◽  
Corporate Tax ◽  
Gradual Reduction ◽  
Content Type ◽  
Ibn Khaldun ◽  
Tax Rate ◽  
Optimal Tax ◽  
The Impact

Purpose The present study aims to investigate the impact of the reduction of the corporate tax rate on corporate tax revenue. The study adopts the theory of taxation by Ibn Khaldun, depicted as the Laffer curve. Design/methodology/approach The paper analyses time series data for the period 1996 to 2014 using the autoregressive distributed lag (ARDL) approach. Findings The paper finds that the corporate tax rate has a dual effect on corporate tax revenue over the study period. It shows an inverted U-shape relationship between the corporate tax rate and corporate tax revenue and reveals that the optimal tax rate is 25.5156 per cent. Inferentially, a positive relationship exists between the two variables prior to the optimal tax rate, and a negative relationship prevails afterwards. A further test of causality shows a long-run unidirectional causality between corporate tax rate and corporate tax revenue. Research limitations/implications First, it should be noted that the policy was not implemented in isolation. Several other tax incentives were given to corporate tax payers, and therefore, such incentives should be controlled for to have a more insightful evaluation of the policy. Second and most important, there is a need to investigate whether the increased cash flow available to firms as a result of the reduction in the corporate tax rate adds value to firms. It is also necessary to investigate whether firms’ stakeholders benefited from the increased cash flow or was there managerial diversion of firms’ resources. Practical implications The policy of gradual reduction of the corporate tax rate in Malaysia is suspected to have a positive impact on the productivity of Malaysian companies, which has contributed to an increase in corporate tax revenue. It also has a positive impact on the economic growth of the country. It means that the lower corporate tax rate has actually reduced the cost of doing business in the country. Originality/value The benefit of increased corporate tax revenue needs to be investigated empirically for insightful policy evaluation. In Malaysia, however, such investigation is close to non-existent to the best knowledge of the researchers. Thus, the present study aims at investigating the impact of the policy of gradual reduction of the corporate tax rate on corporate tax revenue over an 18-year period from 1996 to 2014.

scholarly journals TREN KEPATUHAN PAJAK PENGUSAHA UMKM DI KPP PRATAMA MERAUKE ATAS BERLAKUNYA PENGENAAN PPh FINAL ATAS OMSET

2019 ◽  
Vol 2 (1) ◽  
pp. 10-16
Author(s):  
Andri Marfiana
Keyword(s):  
Tax Revenue ◽  
Tax Rate

The purpose of this study is to described how the implementation of PP 46, 2013 which was change by PP23, in compliance of SME’s Taxpayer. The compliancy describe in this study incline to tax revenue. However, the researcher also describe, the compliency in tax report.The result demonstrates that the implementation of PP46/PP23 tend to slightly increase the compliancy of SME’s Taxpayers. The contrbution of tax which paid by SME’s Taxpayer is not significant if compare with all tax ravanue. Eventhough, there is increasing in compliancy, in 2018, there is decreasing of tax revenue paid by SME’s Taxpayer, because in 2018, there was change from PP46 to PP23. In PP23 the tax rate was decrease, from 1% to 0.5%.In this study, it is argued that the implementation of PP46/PP23 has incresing the compliancy of SMEs Taxpayer.

Naked Open-Market Manipulation and Its Effects

2018 ◽  
pp. 199-231 ◽  
Author(s):  
Merritt B. Fox ◽  
Lawrence R. Glosten ◽  
Gabriel V. Rauterberg
Keyword(s):  
Social Welfare ◽  
Theory Of The Firm ◽  
Analytical Framework ◽  
Welfare Effects ◽  
Market Manipulation ◽  
Open Market ◽  
Central Question ◽  
Federal Law ◽  
Trading Activity ◽  
The Social

More than 80 years after US federal law first addressed stock market manipulation, there is still dispute about manipulation law’s foundational principles; this chapter aims to provide clarity by offering an analytical framework for understanding a specific manipulation. There has been a sharp split among the federal circuits concerning manipulation law’s central question: Can trading activity alone ever be considered illegal manipulation? Economists and legal scholars do not agree on whether manipulation is possible in principle, let alone on how to address it properly in practice. The framework offered by this chapter aims to help clarify federal law and may guide regulators in successfully prosecuting financial law’s most intractable wrong. We draw on the tools of microstructure economics and the theory of the firm to provide an analysis of a particular form of manipulation, identify who is harmed by it, and evaluate the social welfare effects.

scholarly journals Welfare Analysis in an Extended Harris-Todaro Model: An Application of the Atkinson Theorem

2017 ◽  
Vol 17 (1) ◽  
Author(s):  
Hautahi Kingi
Keyword(s):  
Income Distribution ◽  
Social Welfare ◽  
Informal Sector ◽  
Job Search ◽  
Welfare Analysis ◽  
Welfare Effects ◽  
Direct Application ◽  
Modern Sector ◽  
Schur Concave ◽  
Urban Informal Sector

AbstractI analyze the welfare effects of a policy of modern sector enlargement (MSENL), and a policy of increasing the efficiency of on-the-job search from the urban informal sector (IEOS) in a generalized Harris-Todaro model. I show that MSENL causes a Lorenz worsening of the income distribution and IEOS causes a Lorenz improvement. In a rare direct application of the Atkinson theorem, I conclude that MSENL decreases social welfare and IEOS increases social welfare for all anonymous, increasing and Schur-concave social welfare functions.

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