scholarly journals Firm Heterogeneity and the Long-Run Effects of Dividend Tax Reform

2006 ◽  
Author(s):  
Francois Gourio ◽  
Jianjun Miao
Keyword(s):  
Tax Reform ◽  
Firm Heterogeneity ◽  
Long Run ◽  
Dividend Tax

scholarly journals Firm Heterogeneity and the Long-run Effects of Dividend Tax Reform

2010 ◽  
Vol 2 (1) ◽  
pp. 131-168 ◽  
Author(s):  
François Gourio ◽  
Jianjun Miao
Keyword(s):  
Capital Accumulation ◽  
Firm Heterogeneity ◽  
Percent Level ◽  
Capital Gains ◽  
Tax Rates ◽  
Aggregate Productivity ◽  
Capital Gains Tax ◽  
Productivity Shocks ◽  
Long Run ◽  
Dividend Tax

To study the long-run effect of dividend taxation on aggregate capital accumulation, we build a dynamic general equilibrium model in which there is a continuum of firms subject to idiosyncratic productivity shocks. We find that a dividend tax cut raises aggregate productivity by reducing the frictions in the reallocation of capital across firms. Our baseline model simulations show that when both dividend and capital gains tax rates are cut from 25 and 20 percent, respectively, to the same 15 percent level permanently, the aggregate long-run capital stock increases by about 4 percent. (JEL D21, E22, E62, G32, G35, H25, H32)

Effects of Dividend Tax Reform on Dividend Behavior: A Clientele Theory Approach

2018 ◽  
Vol 54 ◽  
pp. 165-179
Author(s):  
Ida Suriya Ismail ◽  
Mohd Rizal Palil ◽  
Rosiati Ramli ◽  
Mara Ridhuan Che Abdul Rahman
Keyword(s):  
Tax Reform ◽  
Theory Approach ◽  
Dividend Tax

scholarly journals Effect of Work–Life Balance Practices on Firm Productivity: Evidence from Japanese Firm-Level Panel Data

2014 ◽  
Vol 14 (4) ◽  
pp. 1677-1708 ◽  
Author(s):  
Isamu Yamamoto ◽  
Toshiyuki Matsuura
Keyword(s):  
Panel Data ◽  
Firm Heterogeneity ◽  
Manufacturing Firms ◽  
Firm Level ◽  
Life Balance ◽  
Firing Costs ◽  
Japanese Firms ◽  
Long Run ◽  
Human Skills ◽  
Labor Hoarding

Abstract This article examines how firm practices that could contribute to worker attainment of work–life balance (WLB) affect the total factor productivity (TFP) of a firm, by using panel data of Japanese firms from the 1990s. We observed a positive correlation between the WLB practices and TFP among sampled firms. However that correlation vanished when we controlled for the unobserved firm heterogeneity, and we found no general causal relationship in which WLB practices increase firm TFP in the medium or long run. For firms with the following characteristics, however, we found positive and sizable effects: large firms, manufacturing firms, and firms that have exhibited labor hoarding during recessions. Since these firms are likely to incur large fixed employment costs, we infer that firms investing in firm-specific human skills or having large hiring/firing costs can benefit from WLB practices through a decrease in turnover or increase in recruiting effectiveness.

scholarly journals Export Tax Reform and the Competitiveness of Imported Soybeans in China

2019 ◽  
Vol 51 (3) ◽  
pp. 511-525 ◽  
Author(s):  
Andrew Muhammad ◽  
Constanza Valdes
Keyword(s):  
United States ◽  
Tax Reform ◽  
The United States ◽  
Import Demand ◽  
Chinese Market ◽  
Long Run ◽  
Export Tax ◽  
Export Taxes ◽  
Short Run ◽  
Demand Changes

AbstractExport tax reform in Argentina could improve its competitiveness in China’s soybean market, displacing exports from competing countries like Brazil and the United States. We examined the factors that determine China’s demand for imported soybean products and how export taxes could affect exporting countries. Using import demand and vector autoregression estimates, we conducted simulations of China’s import demand assuming the elimination of export taxes in Argentina. Results indicated that Argentine soybean products could realize gains in the Chinese market, but only in the short run. Projected import demand changes in the long run were insignificant for all exporting countries.

Tax reform initiated by D. Trump: Economic and social aspects

2021 ◽  
Vol 27 (3) ◽  
pp. 693-720
Author(s):  
Elena Yu. MAKUSHINA ◽  
Dar'ya M. KARMANOVA ◽  
Aleksei S. KUCHER
Keyword(s):  
United States ◽  
Policy Development ◽  
Tax Reform ◽  
The United States ◽  
Subsequent Increase ◽  
Tax Revenues ◽  
Long Run ◽  
Macroeconomic Indicators ◽  
The Impact ◽  
The U.S

Subject. The article addresses the tax reform of 2017, initiated by D. Trump. Objectives. The aim is to determine the relationship between the total volume of tax revenues to the budget of the U.S. Government and the growth of U.S. GDP in the long run. Methods. To identify the impact of the tax reform on the investment climate in the country and the subsequent GDP growth, we formulate a hypothesis and propose a regression model. The quarterly data from 04.01.1960 to 07.01.2019 serve as a statistical sampling, published by financial departments of the U.S. Office of Management and Budget and the U.S. Bureau of Economic Analysis. The study rests on the econometric analysis enabling to identify the impact of the volume of tax revenues from the corporate income tax and individual income taxes on the level of the GDP of the United States. Results. In the short term, we observe a decrease in tax revenues and a subsequent increase in the budget deficit, in the long term – an increase in business activity of the country, a growth in foreign direct investment, and, consequently, an increase in the GDP. The paper offers a model for assessing the economic growth of the GDP of the United States, in which tax predictors were used in combination with macroeconomic indicators. Conclusions. The experience of the United States and the results of this study may be used by the governments of developing countries and experts in the field of taxation for tax policy development.

scholarly journals Dividend Taxation and Corporate Governance

2005 ◽  
Vol 19 (3) ◽  
pp. 163-180 ◽  
Author(s):  
Randall Morck ◽  
Bernard Yeung
Keyword(s):  
United States ◽  
Tax Reform ◽  
The United States ◽  
Income Taxes ◽  
Corporate Sector ◽  
Free Standing ◽  
Corporate Groups ◽  
Dividend Taxation ◽  
Corporate Insiders ◽  
Dividend Tax

In 2003, the United States enacted a tax reform that reduced, but did not eliminate, individual dividend income taxes. Cutting the dividend tax deprives corporate insiders of a justification for retaining earnings to build unprofitable corporate empires. But not eliminating it entirely preserves an advantage for institutional investors, who can put pressure on underperforming managers. This balance is broadly appropriate in the United States—whose large companies are freestanding and widely held. In addition, preserving the existing tax on intercorporate dividends, in place since the Roosevelt era, discourages the pyramidal corporate groups commonplace in other countries, and preserves America's large corporate sector of free-standing widely held firms.

scholarly journals Unpacking the Long-Run Effects of Tariff Shocks: New Structural Implications from Firm Heterogeneity Models

2016 ◽  
Vol 8 (2) ◽  
pp. 128-167 ◽  
Author(s):  
Alan Spearot
Keyword(s):  
United States ◽  
General Equilibrium ◽  
Firm Heterogeneity ◽  
The United States ◽  
Developing Nations ◽  
Shape Parameters ◽  
Trade Data ◽  
Long Run

I derive a novel solution for the general equilibrium effects of tariffs that is robust to heterogeneity across industries and countries, and is a function of only aggregate trade data and country-by-industry Pareto shape parameters. Using the model to evaluate tariff shocks, I show that while most countries lose by removing observed tariffs unilaterally, India, Japan, Korea, and the United States gain by doing so, which suggests inefficient tariff discrimination. In evaluating multilateral shocks, observed tariff cuts over 1994 –2000 benefit 69 percent of countries, with these benefits skewed toward developing nations. In contrast, removing all post-2000 tariffs benefit the developed. (JEL F12, F13, F14)

LONG-RUN GROWTH AND WELFARE EFFECTS OF TAX REFORM

2011 ◽  
Vol 16 (4) ◽  
pp. 520-536 ◽  
Author(s):  
WEN-YA CHANG ◽  
KUO-HAO LEE ◽  
JUIN-JEN CHANG
Keyword(s):  
Tax Reform ◽  
Welfare Effects ◽  
Long Run
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