scholarly journals An Analysis of Optimal Tax Revenue Sharing for Mexico

2021 ◽  
Vol 17 (2) ◽  
pp. 1-20
Author(s):  
Raúl Alberto Ponce Rodríguez ◽  
Benito Alan Ponce Rodríguez
Keyword(s):  
Public Spending ◽  
Mathematical Optimization ◽  
Optimal Level ◽  
Social Benefits ◽  
Future Research ◽  
Tax Revenue ◽  
Intergovernmental Transfers ◽  
Optimal Tax ◽  
Transfer Rules ◽  
Subnational Governments

We develop an analysis that identifies the characteristics of an optimal system of shared tax collection and intergovernmental transfers. Mathematical optimization is used to find the level of taxes and intergovernmental transfers. Formulas for the optimal level of taxes and transfers to subnational governments are characterized. We suggest reforms to intergovernmental transfers to include the costs of tax inefficiency, some tax equalization transfer rules, and the marginal social benefits of local public spending. Future research could include local public spending with regional externalities, migration, and consider a dynamic model. This article proposes an original theoretical model of optimal tax coordination and transfers. The optimal level of taxes and transfers are identified. This paper proposes reforms to the participation formula for subnational governments.

scholarly journals A New Approach to Measuring Tax Effort

Economies ◽  
2019 ◽  
Vol 7 (3) ◽  
pp. 77
Author(s):  
Basil Dalamagas ◽  
Panagiotis Palaios ◽  
Stefanos Tantos
Keyword(s):  
Utility Maximization ◽  
Optimal Level ◽  
Tax Revenue ◽  
Productive Capacity ◽  
New Approach ◽  
Tax Effort ◽  
Optimal Tax ◽  
Determining Factors ◽  
Macroeconomic Determinants ◽  
The Impact

This paper attempts to extend the theoretical and empirical methodology employed in previous literature, by proposing a utility maximization process to estimate the optimal tax revenue from a sample of 30 countries. It is shown that an optimal tax system is defined solely by two crucial determining factors: The productive capacity of the country (GDP) and consumers’ preferences (consumption spending). All the other variables can be disregarded, as macroeconomic determinants (GDP, consumption) tend to capture the impact of all the remaining factors on tax revenue. It is also shown that our utility maximization method generates tax-effort indices which do not differ significantly from those of IMF and World Bank studies. The actual tax burden for most of the sample countries is shown to be below its optimal level. As expected, the tax-effort performance of each of the sample countries appears to be affected by the variety of approaches employed throughout the text.

Impact of trade facilitation reforms on tax revenue

2017 ◽  
Vol 44 (5) ◽  
pp. 765-780 ◽  
Author(s):  
Sena Kimm Gnangnon
Keyword(s):  
Developing Countries ◽  
Fixed Effects ◽  
Data Availability ◽  
Empirical Literature ◽  
Future Research ◽  
Tax Revenue ◽  
Trade Facilitation ◽  
Content Type ◽  
The World ◽  
The Impact

Purpose The purpose of this paper is to contribute to the empirical literature of the macroeconomic effect of trade facilitation reforms by examining the impact of the latter on tax revenue in both developed and developing countries. The relevance of the topic lies on the fact that at the Bali Ministerial Conference of the World Trade Organization (WTO) in 2013, Trade Ministers agreed for the first time since the creation of the WTO (in 1995) on an Agreement to facilitate trade around the world, dubbed Trade Facilitation Agreement (TFA). The study considers both at-the-border and behind-the border measures of Trade Facilitation. Design/methodology/approach To conduct this study, the authors rely on the literature related to the structural factors that explain tax revenue mobilization. The authors mainly use within fixed effects estimator. The analysis relies on 102 countries (of which 23 industrial countries) over the period 2004-2007 (based on data availability). A focus has also been made on African countries, within the sample of developing countries. Findings The empirical analysis suggests evidence of a positive and significant effect of trade facilitation reforms on non-resources tax revenue, irrespective of the sample of countries considered in the analysis. Research limitations/implications This finding should contribute to dampening the fear of policymakers in developing countries, including Africa that the implementation of the TFA would entail higher costs, without necessarily being associated with higher benefits. An avenue for future research would be to extend the period of the study when data would be available. Originality/value To the best of the authors knowledge, this study had not been performed in the literature of the determinants of tax revenue mobilization, although fact-based analysis was performed.

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 PSV-14 Effects of Cordyceps mushroom powder on nursery pig performance

2019 ◽  
Vol 97 (Supplement_2) ◽  
pp. 197-198
Author(s):  
Jacob A Richert ◽  
Jorge Y P Palencia ◽  
Clayton S Chastain ◽  
Morgan T Thayer ◽  
Brian T Richert ◽  
...  
Keyword(s):  
Growth Performance ◽  
Control Diet ◽  
Dietary Treatment ◽  
Optimal Level ◽  
Positive Control ◽  
Negative Control ◽  
Future Research ◽  
Full Potential ◽  
Nursery Pig ◽  
Step Down

Abstract The objective of this study was to determine the optimal level of Cordyceps mushroom powder inclusion in diets for nursery pigs. One-hundred sixty crossbred pigs [(Duroc × (York × Landrace)] weaned at 18.8 d of age and weighing an average of 5.94 kg were used in a 35 day, 4 phase growth trial to evaluate Cordyceps mushroom powder as potential alternative to carbadox in nursery pig diets. Pigs were allotted by weight, sex, litter, and assigned to body weight (BW) blocks. Within BW blocks, sex ratios were constant in each pen. Each pen within a BW block was randomly assigned a dietary treatment. Growth performance was analyzed as a RCB design using BW, ADG, ADFI, G:F using GLM procedure of SAS 9.4. There were 5 or 6 pigs/pen and 6 pens/treatment. Five diets were used in the study: a negative diet or a positive control (Carbadox, 55 ppm); 300 or 600 ppm mushroom powder, and a step down treatment (900, 900, 450, 300, 150 ppm mushroom powder during weeks 1 through 5, respectively). At various points of the study, pigs fed the 300 ppm and the step-down mushroom powder treatments tended to have improved (P < 0.10) growth performance compared with those fed the negative control diet. During Phase 4 of the study, pigs fed Carbadox had greater ADG (P < 0.02) and improved feed efficiency (P < 0.09) compared to pigs fed the negative control diet. However, overall data showed that there were no statistical differences among treatments (P > 0.05). In summary, pigs fed 300 ppm mushroom powder or the step-down treatment showed comparable growth performance to pigs fed Carbadox. However, future research is needed under a greater disease challenge to examine mushroom powder’s full potential as an alternative to antibiotics.

Party, Ideology, and Deficits: Provincial Fiscal Policy and the Cameron Thesis, 1966–2009

2014 ◽  
Vol 47 (1) ◽  
pp. 93-112 ◽  
Author(s):  
Christopher A. Simon ◽  
Raymond Tatalovich
Keyword(s):  
Fiscal Policy ◽  
Large Body ◽  
Public Spending ◽  
David Cameron ◽  
Subsequent Research ◽  
Party Ideology ◽  
Western European ◽  
Political Variables ◽  
Subnational Governments

AbstractIn a 1985 publication David Cameron reported that historically leftist governments had governed with smaller deficits than rightist governments. The party ideology variable was incorporated into a large body of subsequent research, mainly by economists, to study the growth of public spending and indebtedness. Most agreed with Cameron; some did not. Virtually all studies focused on western European nations (but not subnational governments). This study analyzes provincial deficits or surpluses over the period 1966 to 2009 and determines that rightist parties, despite controls for economic and other political variables, have lower budgetary deficits, a finding which contradicts Cameron but is consistent with five previous studies of provincial spending in Canada.

scholarly journals A BI-LEVEL FRAMEWORK FOR PRICING OF HIGH-OCCUPANCY TOLL LANES

Transport ◽  
2014 ◽  
Vol 29 (3) ◽  
pp. 317-325 ◽  
Author(s):  
Kitae Jang ◽  
Myoung Kyun Song ◽  
Keechoo Choi ◽  
Dong-Kyu Kim
Keyword(s):  
Dynamic Pricing ◽  
Optimal Level ◽  
Future Research ◽  
Total Delay ◽  
Successful Operation ◽  
Total Travel Time ◽  
Hot Lanes ◽  
Varying Demand ◽  
High Occupancy Toll

As a freeway operational management strategy, High-Occupancy Toll (HOT) lanes have been deployed to manage the demand for High-Occupancy Vehicle (HOV) lanes by adjusting the tolls. By doing so, the capacity of freeways with such lanes can be used more efficiently. Periodically, setting the right amount of toll in accordance with the time-varying demand is a key to successful operation of HOT lanes; however, this is often difficult because travellers have heterogeneous willingness to pay for the toll and traffic conditions vary as the demand changes due to the imposition of tolls. This paper proposed an algorithm to determine the optimal level of toll for minimizing the total delay collectively spent by both HOVs and low-occupancy vehicles. Based on real-world traffic and survey data obtained from Gyungbu expressway in South Korea, a case study is presented to verify the applicability of the developed algorithm. The results from the case study show that the proactive dynamic pricing scheme can use the underutilized capacity of HOT lane efficiently and, thereby, shorten total travel time by 22% and generate revenue of more than $8600. Some limitations and future research agendas are also discussed.

Tutoring Learning Disabled Students: A Critical Review

1985 ◽  
Vol 8 (4) ◽  
pp. 286-298 ◽  
Author(s):  
Thomas E. Scruggs ◽  
Lori Richter
Keyword(s):  
Critical Review ◽  
Learning Disabled ◽  
Social Benefits ◽  
Future Research ◽  
Disabled Students ◽  
Methodological Problems ◽  
Empirical Investigations

Twenty-four empirical investigations of tutoring interventions were evaluated. Although all authors favored their use, equivocal results were reported. Particularly weak were substantiated reports of social benefits to tutors or tutees. Methodological problems associated with such research in field settings are discussed, and implications for future research are given.

scholarly journals A Comparative Approach to Fiscal Illusions: a Synthesis of the Conclusions from a Polish Study in Relation to New Ideas and Empirical Research in Selected Countries

2021 ◽  
Vol 24 (2) ◽  
pp. 7-21
Author(s):  
Beata Guziejewska
Keyword(s):  
Local Government ◽  
Empirical Studies ◽  
Government Funding ◽  
Comparative Approach ◽  
Future Research ◽  
Research Approach ◽  
Intergovernmental Transfers ◽  
Fiscal Illusion ◽  
Research Perspective ◽  
New Ideas

This article examines fiscal illusions in public finance systems where decentralisation involving the introduction of an independent and autonomous component of local government funding brings new problems. It presents a synthesis of the findings from a Polish empirical study that set out to determine the types and extent of fiscal illusion among Polish councillors, focusing on the qualitative aspects of the phenomenon. It also compares the findings with other streams of research and new approaches to fiscal illusion. The purpose of the article is to systematise the knowledge of fiscal illusion based on selected empirical studies, to formulate proposals for practitioners and public decision‑makers, and to highlight areas for future research to address. The article was prepared using a desk research approach and the author’s own experiences and research perspective formed during the study of fiscal illusions. The findings presented in the article corroborate its main thesis that a local government funding system based on intergovernmental transfers contributes to the emergence and perpetuation of fiscal illusions.

scholarly journals Deterrent tax fraud in nigeria: a causal factor and conceptual review

2020 ◽  
Vol 10 (4) ◽  
pp. 29-39
Author(s):  
Felix Ogbeiyulu Umanhonlen ◽  
Rebecca Imade Umanhonlen
Keyword(s):  
Tax Evasion ◽  
Causal Factor ◽  
Future Research ◽  
Tax Revenue ◽  
Conceptual Approach ◽  
Tax Levies ◽  
Tax Fraud ◽  
Tax Payers ◽  
Theoretical Issues

Deterrent as punishment to tax fraud is an age long tool correcting tax offender and ensuring prompt response to payment of tax levies, as it were from inception tax fraud is astronomically on the increase rather than declining. The aim of this paper was to assess the role of deterrent on tax fraud in Nigeria. The study attempts to review components of tax frauds applicable to deterrent as punishment on tax defaulters or culprits. The paper presents detailed analysis of tax evasion, avoidance and causes of tax fraud with possible reasons responsible for taxpayer declines to file in tax obligations as oppose to willingness to pay. Specifically, it supervene major inherent problems and lukewarm attitudes of government inability to mitigate tax levy into responses and outcomes. Hence, demystifies credible and genuine reasons for or toward tax revenue realizations, responses and outcomes. Moreso, the paper identifies basis for future research, expanded the scope of study and highlighted relevance arguments among reviewed related theoretical issues using a causal factor and conceptual approach thereby involving survey of literature to bring relevance issues to the fore as oppose to the aforementioned nomenclatures. Essentially, various tax penalties ensuring defaulters is punishable relative to the proportion of offenses involved were discussed. Thereafter, pass on to overhaul prior studies, gaps in reviewed prior studies and domesticate the study on relevant deterrent school of thoughts. It therefore, concludes that Tax fraud may not have an end in Nigeria, if those saddled with the responsibility of tax all-encompassing, inclusiveness, delivering tax-welfare to taxpayers are seen not transparent, accountable, sincere, sensitive to the plight of tax payers, and devoid of skirmishes as well as translating taxes revenue into responsibility. However, propose that deterrence is not anylonger the way to go, having tossed both sides of the divide, exigency of time have to take precedence; and allows civility, novelty, automation and all-inclusiveness muster and remediate tax fraud in Nigeria.

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