Tax Decentralization – Approaches to Vertical Tax Revenue Structuring in the Public Sector

Purpose The purpose of this paper is to use stochastic frontier analysis (SFA) to estimate the efficiency of public investments and their impact on economic growth in the USA using panel data. Results of the study show highly significant and positive relationships between gross state product (GSP) and expenditures on education, transportation, health, welfare, and public safety (police and fire), and negative but significant relationships between output and employment in health care and public safety services. Inefficiencies in the study are measured using per capita tax revenue and time. Tax revenue has a very minimal positive and significant effect on efficiency, while time inversely relates to efficiency. Design/methodology/approach The present study uses SFA to investigate the efficiency of government expenditures in five service sectors – education, transportation, health, welfare, and public safety (police and fire), using recent data and economic trends. The study hypothesizes that changes in the current levels of expenditures in the public sector have a significant impact on the aggregate economy, as measured by GSP. The study uses GSP as the dependent (output) variable, and government expenditure on the five service sectors as the independent (input) variables. Findings Analysis of efficiency for individual states for all 21 years produced interesting results. Overall, the technical efficiency of the public sector was quite high. The average TE score across all years and all states was 0.878. This suggests that public sector operates at a relatively high efficiency level. Originality/value The current SFA model followed Battese and Coelli approach of estimating efficiency of public sectors in each state of the USA. It allowed estimation of policy impact on the overall efficiency. It was applied to macroeconomic panel data.

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The Arlanda Airport Rail Link: Lessons Learned from a Swedish Construction Project

Review of Network Economics ◽

10.2202/1446-9022.1139 ◽

2008 ◽

Vol 7 (1) ◽

Cited By ~ 3

Author(s):

Jan-Eric Nilsson ◽

Lars Hultkrantz ◽

Urban Karlström

Keyword(s):

Public Sector ◽

Construction Project ◽

Public Private Partnership ◽

Lessons Learned ◽

Tax Revenue ◽

Costs And Benefits ◽

Private Company ◽

Railway Network ◽

Private Partnership ◽

The Public

The Stockholm Arlanda airport rail link is a public-private partnership opened for traffic in 1999. This paper addresses costs and benefits of giving a private company control over one section of the otherwise public railway network. The project has reduced the pressure on the public sectors budget and reduced the need to raise efficiency distorting tax revenue. The number of passengers has been below expectations. Track capacity may, however, be sufficient to negotiate an increase the supply of rail services by way of extending existing commuter trains, in that way attracting more passengers.

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Brazil: A For-Profit Giant

International Higher Education ◽

10.6017/ihe.2014.74.5471 ◽

2014 ◽

pp. 21-22 ◽

Cited By ~ 5

Author(s):

Dante J. Salto

Keyword(s):

Higher Education ◽

Public Policy ◽

Public Sector ◽

Federal Government ◽

Tax Revenue ◽

Large Share ◽

Higher Education System ◽

The Public ◽

For Profit ◽

Fields Of Study

Brazil has become by far the largest higher education system in Latin America, with a large share of enrollments in the private sector. A recently established and fast growing for-profit sub-sector consolidates as one of the largest worldwide. It already surpasses the public sector in enrollment and its role is growing. Public policy has backed the for-profit growth, largely for tax revenue reasons but in recent years the federal government has taken social initiatives that include tax exemption policies for the sub-sector. As indicated by fields of study, the for-profit sub-sector shares some important characteristics with the nonprofit sub-sector, contrasting dramatically to the public sector.

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Public Sector and Budgetary Economy in Transition in Poland in a New Context of Development Economics

European Journal of Economics and Business Studies ◽

10.26417/ejes.v9i1.p269-277 ◽

2017 ◽

Vol 9 (1) ◽

pp. 269

Author(s):

Krzysztof Jarosiński

Keyword(s):

Public Sector ◽

Development Economics ◽

Analytical Methods ◽

Tax Revenue ◽

Economic Policies ◽

Real Economy ◽

Negative Consequences ◽

The Public ◽

New Concepts ◽

Public Sector Research

The subject of the paper is to present selected problems of the budgetary economy of enterprises an organizational units of the public sector. The main focus is to explore the relations between the principles of the budgetary economy of the public sector units against assumptions of new concepts of economic development. This study refers also to the idea of development economics because the systemic transition towards the market economy in Poland required reconstruction of the economy and the creation of new political, organizational and social structures. In the presented study there were applied analytical methods relating to the empirical data and also analytical methods related to the finances of the public sector. Research methods referred to the theoretical analysis of literature and empirical analysis of the relations between phenomena occurring in the real economy and in the public sector. Preliminary studies indicated that it was not possible to conduct economic policies and maximize tax revenue, particularly by escalating tax burden. Budgetary economy should therefore be conducted according to the principles of rationality and efficiency of resource use. The increase of the budgetary revenues of these group of public sector units must lead to negative consequences, and in particular to increase of the range of the shadow economy.

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