The Analytical Review of Foreign Studies on the Impact of Taxation on Corporate Investment

The article provides an overview of foreign studies, mainly American ones, on the impact of tax policy on corporate investment. The research revealed the positive impact of maneuvering tax rates and tax incentives on investments in the corporate sector. At the macro level, special attention is paid to the Laffer curve and its modern applications. The possible use of the King - Fullerton model, as well as the active use of regression analysis in its various variations, are analyzed at the micro level. Besides, the taxation of income from investors' capital, including taxes on dividends, capital gains, and income from bonds are the ussies under analysis. The article also pointed out the complexity of tax systems in most countries, the importance of tax competition between different countries, the impact of tax policy on the structure as well as the cost of capital of companies. The authors identify the areas for further research at the macro and micro levels, emphasizing the lack of such research for developing countries and the need for the study of «natural experiments».

Post-crisis developments in young adults’ housing wealth

How has housing wealth inequality changed for young-adult households in the post-financial crisis period, and what is driving such change? We chart a path for subsequent studies by analysing the previously unexamined post-crisis housing wealth profile of young adults via different angles and using multiple inequality measures. Using household micro-data for 11 European countries ( Household Finance and Consumption Survey, 2010–2017) and the United States ( Survey of Consumer Finances, 2010–2016), we find that the accumulation of housing assets for 22–44 year olds is unevenly concentrated among high-income homeowners, over and above what would be expected given the well-known decline in homeownership. We describe and assess several potential drivers for these wealth profile changes, finding that the current explanations offered in the literature do not adequately account for the unequal wealth profile of young people. We conclude that a mix of dynamics, including housing market volatility, housing market configurations leading to uneven capital gains and losses, and the increased social selectivity of homeownership intersect to shape the ways that young adults navigate the housing market in post-crisis times.

The Tax Elasticity of Capital Gains and Revenue-Maximizing Rates

This paper uses a direct-projections approach to estimate the effect of capital gains taxation on realizations at the state level and then develops a framework for determining revenue-maximizing rates at the federal level. We find that the elasticity of revenues with respect to the tax rate over a 10-year period is −0.5 to −0.3, indicating that capital gains tax cuts do not pay for themselves and that a 5 percentage point rate increase would yield $18 to $30 billion in annual federal tax revenue. Our long-run estimates yield revenue-maximizing capital gains tax rates of 38 to 47 percent. (JEL E62, H25, H71)

Rent-seeking and asset-price inflation: a total-returns profile of economic polarization in America

This paper reconstructs the National Income and Product Accounts to add asset-price (‘capital’) gains to national income to derive a measure of total returns. It also treats rent-extraction as a charge against national income and GDP, not as a contribution to national output. Segregating the Finance, Insurance, and Real Estate sector from the rest of the private sector shows that most growth in wealth and income derives from rentier activities – from the dynamic of finance capitalism more than that of industrial capitalism.

Boon or Burden? Evaluating the Competing Effects of House-Price Shocks on Regional Entrepreneurship

This paper examines the impact of changes in housing affordability on regional entrepreneurship. Two-way fixed-effects estimates suggest an increase in the level of house prices in a commuting zone results in a decline in establishment openings as a share of existing establishments—consistent with a crowding-out effect. In contrast, an increase in the growth rate of house prices results in a small (although not always statistically significant) increase in establishment openings—consistent with a positive wealth effect from capital gains. To address endogeneity concerns, the authors adopt two alternative instruments for commuting zone house-price growth: a measure of local real estate lending and a geography-based measure of the elasticity of local housing supply. They extend the analysis using restricted-use establishment-level microdata from the Quarterly Census of Employment and Wages (QCEW) for the state of Colorado. Results from the QCEW data are consistent with those from the commuting zone sample.

Effects of Migration Experience on Labour Income in Turkey

A significant number of migrants return to their home country every year, and these returnees with migration experience join the labour force. This study investigates the effect of migration experience on labour income applying regression analysis to data from the Household Labour Force Surveys of Turkey from 2009 to 2018. The findings confirm that migration experience has a positive impact on labour income in Turkey. Furthermore, the returnees earn more than the overall wage earners with the same education and skill levels. Additional findings show that women in Turkey earn less than men across all wage earners in the average, but that migration experience does not close the earnings gap between female and male returnees. Nevertheless, highly-educated and upskilled returnees contribute more to the economic growth of Turkey; so, the returnees are labour capital gains to improve the home country economy.

Privatization of State-Owned Enterprises

Theoretical developments in economics, alongside evidence that state-owned enterprises were often inefficient and unresponsive to consumers, led to a substantial program of privatizations from the 1980s. Privatization can take a number of forms, from the outright sale of state-owned assets to private investors to forms of public-private partnership, such as contracting out and franchising of public services. Privatization was promoted in both developed and developing countries, and large-scale privatizations occurred in Europe, Latin America, China, and the former communist economies of Central and Eastern Europe, in particular. Privatization revenues rose substantially from the late 1980s internationally. Taking the years 1988 to 2016, revenues from sales are estimated to have been around $3,634bn. In terms of main sectors of the economy affected, privatizations have particularly occurred in telecommunications, transport and logistics (mainly railways, airlines, and airports), other utility businesses (especially energy companies), and finance. Numerous empirical studies suggest that the performance of the privatized businesses and services has been mixed. While privatization has led to some impressive economic gains, in a number of countries, wider governance issues relating to political and legal systems have led to disappointing outcomes. Privatization has not always led to the removal of state interference in the management of businesses and services. Corruption and cronyism have blighted a number of privatizations. State sell-offs have led to income and wealth redistribution with gainers and losers from the process. Some privatizations have led to spectacular capital gains for investors. The impact of privatization on employment and working conditions remains unclear. There are a number of issues that deserve further investigation, namely the consequences of privatization for technological change and innovation, competition policy, and income and wealth distribution. A further subject for investigation is how the effective and efficient management of state-owned enterprises can be best achieved. The boundary between the private and public sectors remains fluid, with a number of enterprises returning to state ownership as political and economic conditions change.

Huff and Puff Field Production Optimization at Al Noor's Ara Salt Basin in South Oman

The everlasting emphasis on abiding by the forecasted plans and targets in Greater Birba while limiting operating expenditure exhaustion has paved the way for additional analysis and monitoring of current well performance trends in complex reservoir configurations such as Al Noor. Buried at deep depths underneath a high-pressure overburden, the Ara Salt depositional features in the southern basin of Oman present unique yet extremely challenging characteristics with respect to hydrocarbon extraction and subsequent production. Situated below the four primary carbonate layers of A1C-A4C, Al Noor Field's Athel-type formation poses one of the most challenging reservoir configurations across the region. Recent efforts to sustain free-flowing production in this field were initiated through applying the cyclic huff and puff process to spark the necessary pressure difference between the tubing head and the flowline pressures, allowing the well to remain active. With projected additional constraints bound to augment the producing capacity, efforts to sustain a high yield from what remains to be a considerable extent of unrecovered hydrocarbons has called for a more thorough case study; one that is aimed at maximizing the capital gain as well as minimizing the environmental footprint and existing time constrains on the field operators. The goal of this work is to present a thorough study of Al Noor field's huff and puff plan as well as highlight underlying subsurface and surface issues. Based on initial deductions, the task is to then analyze a wide selection of parameters on PI and energy component, both of which are primary production programming interfaces that are consulted to correlate existent depressurization patterns with respect to the tubing head pressure (THP) before and after kick-off procedures, lowest flowline pressure (FLP) readings, average choke opening sizes in order to contrive an updated categorization of the field's active or temporarily closed/quit wells; one based on the tested net production rate of each well against the duration of its quitting cycle in days/month. Consequently, preliminary observations of a few wells unravelled startling revelations in terms of the potential for prolonging time elapse until quit. In addition to minimizing the operator's load and reducing quantities of gas flared, large capital gains were generated in proportion to the feasibility of reducing inefficient disparities, some even stretching to an excess of a $142,000 in relatively low producers and over a considerably small batch of tested wells. Following that, an implementation proposal comprised of a case-by-case strategy for three selected wells was relayed to the on-site operations team. The selection process was based on their optimization viability with regards to examined parameters as well as their productivity profile. Instructions included following the standard procedure in ALNR 21 but depressurizing the FLP to below 4 bars instead of 40, aiming therein to maximize the THP after kick-off and stretch out the cycle. The choke size was adjusted from 50% to 20% opening in ALNR 20 to observe effects on rates as well as pressure maintenance and last but not least, apply the innovative pressure build-up theory in a quantitatively low producing ALNR 24. The effects of this strategy presented an overwhelming degree of success in augmenting post kick THP levels, steadying production rates and perpetuate the wells’ activity. Finally, case study focussed and general recommendations were outlaid for short to long-term future performance improvements.