scholarly journals Sectoral Infrastructure Investments in an Unbalanced Growing Economy: The Case of Potential Growth in India

2016 ◽  
Vol 33 (2) ◽  
pp. 144-166 ◽  
Author(s):  
Chetan Ghate ◽  
Gerhard Glomm ◽  
Jialu Liu Streeter
Keyword(s):  
Income Taxes ◽  
Labor Income ◽  
Tax Rates ◽  
Policy Reforms ◽  
Potential Growth ◽  
Public And Private ◽  
Agriculture Sector ◽  
Growing Economy ◽  
Infrastructure Investments ◽  
Positive Effect

We construct a two-sector (agriculture and modern) overlapping generations growth model calibrated to India to study the effects of sectoral tax rates, sectoral infrastructure investments, and labor market frictions on potential growth in India. Our model is motivated by the idea that because misallocation depends on distortions, policies that reduce distortions raise potential growth. We show that the positive effect of a variety of policy reforms on potential growth depends on the extent to which public and private capital are complements or substitutes. We also show that funding more infrastructure investments in both sectors by raising labor income taxes in the agriculture sector raises potential growth.

scholarly journals Population Aging and Potential Growth in Asia

2016 ◽  
Vol 33 (2) ◽  
pp. 56-73 ◽  
Author(s):  
Keisuke Otsu ◽  
Katsuyuki Shibayama
Keyword(s):  
Economic Growth ◽  
Productivity Growth ◽  
Population Aging ◽  
Output Growth ◽  
Income Taxes ◽  
Labor Income ◽  
Labor Participation ◽  
Potential Growth ◽  
Asian Economies

We study the effects of projected population aging on potential growth in Asian economies over the period 2015–2050. We find that an increase in the share of the population over 64 years of age will significantly lower output growth through decreased labor participation. Population aging can also reduce economic growth through increased labor income taxes and dampened productivity growth.

scholarly journals Nonlinear Tax Incidence and Optimal Taxation in General Equilibrium

Econometrica ◽  
2020 ◽  
Vol 88 (2) ◽  
pp. 469-493 ◽  
Author(s):  
Dominik Sachs ◽  
Aleh Tsyvinski ◽  
Nicolas Werquin
Keyword(s):  
General Equilibrium ◽  
Optimal Taxation ◽  
Income Taxes ◽  
Tax Incidence ◽  
Labor Income ◽  
Tax Rates ◽  
Tax System ◽  
Marginal Tax Rates ◽  
Optimal Taxes

We study the incidence of nonlinear labor income taxes in an economy with a continuum of endogenous wages. We derive in closed form the effects of reforming nonlinearly an arbitrary tax system, by showing that this problem can be formalized as an integral equation. Our tax incidence formulas are valid both when the underlying assignment of skills to tasks is fixed or endogenous. We show qualitatively and quantitatively that contrary to conventional wisdom, if the tax system is initially suboptimal and progressive, the general‐equilibrium “trickle‐down” forces may raise the benefits of increasing the marginal tax rates on high incomes. We finally derive a parsimonious characterization of optimal taxes.

scholarly journals A Review on Policy Gaps of Agriculture Research and Development (R&D) in India and Their Effect on Agriculture Stakeholders

2021 ◽  
pp. 162-178
Author(s):  
R. Ridhi ◽  
C. Nirmala
Keyword(s):  
Research And Development ◽  
Green Revolution ◽  
Private Investment ◽  
Policy Reforms ◽  
Central State ◽  
Investment Funds ◽  
Public And Private ◽  
The Sustainable Development ◽  
Agriculture Sector ◽  
Current Scenario

Purpose: An impressive stride in the agriculture sector in India after green revolution from a food deficient to food surplus country is attributed to the well-established infrastructure and contribution of various farm families in this sector. In the current scenario, various cons of food surplus and other stagnation issues of the policies need to be contemplated. The various policy reforms should inculcate well utilization of agriculture investment funds, methodologies to allow increments in farmer’s income to prevent their suicidal rates, incentives and requirements for private R&D investment in agriculture while maintaining the sustainable development goal of India. A complete transparent paradigm approach to be followed by the central, state governments and private sectors for fostering agriculture growth is analyzed in this review. The impetus behind the lack of agriculture growth in spite of tremendous productivity measures adopted by farmers, policy makers; public and private investment lies in lacking of an appropriate infrastructure as per current need and demand. It is imperative to foster paradigm protocol in agriculture with articulate government intermediaries to prevent monopoly of a particular authority in due course of time. It develops spurring behavior among stakeholders to form a consortium to revitalize the complete agriculture R&D to obviate the bottle necks hampering agriculture proliferation. Design: The present review highlights the mandatory need in the current scenario to review the agriculture research and development policies and desired amendments as per the needs of the associated stake holders. Paper Type: Review article

AN EVALUATION OF CONSTITUTIONAL CONSTRAINTS ON CAPITAL TAXATION

2016 ◽  
Vol 21 (7) ◽  
pp. 1519-1544 ◽  
Author(s):  
Begoña Domínguez ◽  
Zhigang Feng
Keyword(s):  
Incentive Compatibility ◽  
Income Taxes ◽  
Limited Commitment ◽  
Labor Income ◽  
Tax Rates ◽  
Capital Taxation ◽  
Capital Tax ◽  
Constitutional Constraints ◽  
Compatibility Constraint ◽  
Sustainable Equilibrium

This paper investigates the desirability of constitutional constraints on capital taxation in an environment without government debt and where benevolent governments have limited commitment. In our setup, governments can choose proportional capital and labor income taxes subject to the constitutional constraint but cannot commit to an actual path of taxes. First, we explore a form of constitutional constraint: a constant cap on capital tax rates. In our quantitative exercise, we show that a three percent cap on capital taxes provides the highest welfare at the worst sustainable equilibrium. However, such a cap decreases welfare at the best sustainable equilibrium (both because it constrains feasibility and because it tightens the incentive compatibility constraint). Second, we identify a form of constitutional constraint that can improve all sustainable equilibria. That constraint features a cap on capital taxes that increases with the level of capital.

Transocean and the History of Tax Inversions

2018 ◽  
Vol 34 (1) ◽  
pp. 1-12
Author(s):  
Susan M. Albring ◽  
Randal J. Elder ◽  
Mitchell A. Franklin
Keyword(s):  
Multinational Corporations ◽  
Economic Impacts ◽  
Income Taxes ◽  
Tax Rates ◽  
Corporate Tax ◽  
Corporate Income Taxes ◽  
History Of ◽  
Jobs Act ◽  
The U.S ◽  
Over Time

ABSTRACT The first tax inversion in 1983 was followed by small waves of subsequent inversion activity, including two inversions completed by Transocean. Significant media and political attention focused on transactions made by U.S. multinational corporations that were primarily designed to reduce U.S. corporate income taxes. As a result, the U.S. government took several actions to limit inversion activity. The Tax Cuts and Jobs Act of 2017 (TCJA) significantly lowered U.S. corporate tax rates and one expected impact of TCJA is a reduction of inversion activity. Students use the Transocean inversions to understand the reasons why companies complete a tax inversion and how the U.S. tax code affects inversion activity. Students also learn about the structure of inversion transactions and how they have changed over time as the U.S. government attempted to limit them. Students also assess the tax and economic impacts of inversion transactions to evaluate tax policy.

scholarly journals Income Taxes, Compensating Differentials, and Occupational Choice: How Taxes Distort the Wage-Amenity Decision

2012 ◽  
Vol 4 (1) ◽  
pp. 224-247 ◽  
Author(s):  
David Powell ◽  
Hui Shan
Keyword(s):  
Occupational Choice ◽  
Income Taxes ◽  
Compensating Differentials ◽  
Tax Rates ◽  
Occupational Choices ◽  
Tax Rate ◽  
Welfare Impacts ◽  
Percent Increase

The link between taxes and occupational choices is central for understanding the welfare impacts of income taxes. Just as taxes distort the labor-leisure decision, they may also distort the wage-amenity decision. Yet, there have been few studies on the full response along this margin. When tax rates increase, workers favor jobs with lower wages and more amenities. We introduce a two-step methodology which uses compensating differentials to characterize the tax elasticity of occupational choice. We estimate a significant compensated elasticity of 0.03, implying that a 10 percent increase in the net-of-tax rate causes workers to change to a 0.3 percent higher wage job. (JEL H24, H31, J22, J24, J31)

scholarly journals Making Smart and Sustainable Infrastructure Projects Viable: Private Choices, Public Support, and Systems Constraints

2017 ◽  
Vol 2 (3) ◽  
pp. 18-32 ◽  
Author(s):  
Douglas Noonan ◽  
Shan Zhou ◽  
Robert Kirkman
Keyword(s):  
Public Perception ◽  
Public Support ◽  
Green Technologies ◽  
Public And Private ◽  
Private Interests ◽  
Public Survey ◽  
Private And Public ◽  
Infrastructure Investments ◽  
Individual Use ◽  
The One

Sustainable cities will require major infrastructure investments coupled with widespread behavioral change. Examples of smart, green technologies abound, but evidence for actual use lags. This partly owes to the tension between public support and private choices: individuals thinking as members of the public may see solutions as smart for the city, but thinking of their private interests may see those same solutions as not smart for themselves. This also owes to the disconnect between private and public choices, on the one hand, and the workings of complex systems, on the other. Even if public and private interests align, existing built environment systems may resist change. This article examines public perception and use of the Atlanta BeltLine, a pioneering sustainability initiative to transform the auto-dependent city into a greener, denser city. Analyzing a general public survey reveals widespread support for the BeltLine alongside reticence from residents to change their commute or greenspace use. The findings also show that drivers of public support and prospective use of the BeltLine differ. Public support may be insufficient if individual use decisions do not follow. Yet, private adoption decisions may not follow until and unless the systems in which they are embedded are already changing.

scholarly journals PENGARUH PERUBAHAN TARIF, METODE PENGHITUNGAN DAN MODERNISASI SISTEM PAJAK TERHADAP KEPATUHAN WAJIB PAJAK UMKM DENGAN KEADILAN PAJAK SEBAGAI VARIABEL MODERASI

2021 ◽  
Vol 5 (2) ◽  
pp. 160-175
Author(s):  
Ade Nuryunita Thahir ◽  
Iman Karyadi ◽  
Yanis Ulul Azmi
Keyword(s):  
Regression Analysis ◽  
Linear Regression ◽  
Multiple Linear Regression ◽  
Linear Regression Analysis ◽  
Multiple Linear Regression Analysis ◽  
Tax Rates ◽  
Tax System ◽  
Food And Beverage ◽  
Positive Effect ◽  
Interaction Test

This research was conducted to determine and test the effect of changes in tax rates (X1), tax calculation methods (X2) and modernization of the tax system (X3) on MSME taxpayer compliance with tax justice as a moderating variable (M). As for the population in this study, the UMKM taxpayers in the food and beverage sector are registered at the Surabaya City Trade Office. Data collection uses purposive sampling method, provided that the taxpayer has a NPWP and has a gross turnover (turnover) in one tax year not to exceed Rp4.8 billion. The samples used in this study were 80 respondents. Data analysis in this study used multiple linear regression and interaction regression with the help of SPPS version 17. The results of the study using multiple linear regression analysis showed that partially changes in tax rates did not have a positive effect and insignificant on taxpayer compliance, while the tax calculation method and tax system modernization partially have a positive and significant effect on taxpayer compliance. Multiple regression analysis with the interaction test for variable changes in tax rates to taxpayer compliance with tax justice as a moderating variable, the method of calculating taxes against taxpayer compliance with tax justice as a moderating variable and modernization of the tax system towards taxpayer compliance with tax fairness as a moderating variable partial positive and significant effect which means that tax justice is able to moderate all the variables used in this study.

scholarly journals On the choice of priority approaches towards taxation of the population

2021 ◽  
pp. 19-35
Author(s):  
Anna Vital'evna Tikhonova
Keyword(s):  
Socioeconomic Development ◽  
Integrated Approach ◽  
Income Taxes ◽  
Tax Rates ◽  
Scientific Discussion ◽  
Advantages And Disadvantages ◽  
Correlation And Regression Analysis ◽  
Composition And Structure ◽  
Taxation System

The object of this research is the system of taxation of the population, while the subject is the composition and structure of taxes paid by private entities. The author analyzes the two priority approaches towards building the optimal and utmost fair system of taxation of private entities – through the object of “income” or “consumption”. Detailed analysis is conducted on the advanced Russian and foreign research on the topic. The author outlines the advantages and disadvantages of each approach from the perspective of horizontal and vertical justice, individual utility and its discounting. The scientific discussion on the absolute viability of taxation of income and consumption of the population is allocated into a separate chapter of the research. Based on the qualitative theoretical analysis, the author concludes on the rationality of choosing integrated approach towards creation of taxation system of the population. The cornerstone in this regard is the determination of the optimal ratio of consumption and income taxes. For this purpose, the author develops the original methodology based on the scattering matrix of 87 countries of the world, correlation and regression analysis of the indicators of their economic development and tax rates. The scientific novelty of consists in substantiation of the existence of substantial connection between the ratio of taxes on consumption and income of the population and the level of socioeconomic development of the country.

The Effect of Public Capital on Aggregate Output

2013 ◽  
Vol 64 (1) ◽  
pp. 51-72
Author(s):  
Jan-Erik Wesselhöft
Keyword(s):  
Dynamic Effect ◽  
High Growth ◽  
Public Capital ◽  
Oecd Countries ◽  
Crowding Out ◽  
Private Capital ◽  
Large Set ◽  
Public And Private ◽  
Long Run ◽  
Positive Effect

Abstract Based on new estimates of public and private capital stocks for 22 OECD countries we study the dynamic effect of public capital on the real gross domestic product using a vector autoregression approach. Whereas most former studies put effort on examining the effects of public capital in a single country, this paper covers a large set of OECD countries. The results show that public capital has a positive effect on output in the short-, medium- and long-run in most countries. In countries where the effect is negative, possible explanations as the different productivities of investments, crowding out or high growth rates of government debt are analyzed.

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