Search

In pursuit of creating the tool for policy analysis accounting for existence of Ukrainian shadow economy, the shadow untaxed labor market is integrated into the aggregated static Computable General Equilibrium model. The developed model is successfully calibrated to official statistical data and proven suitable for further analysis. The efficiency of the 2016 social security tax reform is assessed and proven to be more dependent on the preferences between the formal and informal labor of the factor owner than on the magnitude of the tax cut. The importance of the preferences of both the manufacturer and the consumer, being represented as the elasticities of transformation and substitution between the formal and the informal labor in the model, is discovered. Based on treating these elasticities as instrumental variables, policy recommendations are developed.Article received 30.03.2016, З метою створення інструменту для аналізу наслідків економічної політики з урахуванням існування значного тіньового сектора в Україні, тіньовий неоподатковуваний ринок праці введено до агрегованої статичної моделі загальної рівноваги. Розроблену модель успішно відкалібровано до офіційних статистичних даних та визнано придатною для подальшого аналізу. Оцінено ефективність реформи єдиного соціального внеску, запровадженої у 2016 р., та доведено більшу залежність результатів від переваг власника фактора праці між формальним і тіньовим працевлаштуванням, аніж від обсягу зниження податку. Віднайдено важливість уподобань як виробників, так і споживачів у виборі між офіційним та неоподатковуваним ринком праці, виражена в моделі у значеннях еластичностей трансформації та заміщення між формальною те неформальною працею. Розроблено рекомендації до впровадження економічної політики, що базуються на трактуванні згаданих еластичностей як інструментальних змінних.

Arnold Loewy and Charles Moster debate whether employer contributions to Social Security should be abolished. Moster is a former litigation attorney in the Ronald Reagan and George H.W. Bush presidential administrations who currently has offices in Lubbock and Amarillo, and Arnold is the George Killiam Professor of Law at Texas Tech School of Law.

This paper presents a classical model of economic growth which incorporates class conflict and induced technological change to show how demographic changes can affect future income distribution and production relations in industrialized countries. Specifically, I use an extended real wage Phillips curve to account for the effects of a social security tax on income distribution and therefore on capital accumulation and employment. In this framework output growth is determined from the supply side by available savings. Analytical and simulation results indicate that the sustainability of an economy with fast population aging over transient paths hinges upon improvements in labor productivity, hence, the specific mechanism of technical progress in place.

This paper presents a classical model of economic growth which incorporates class conflict and induced technological change to show how demographic changes can affect future income distribution and production relations in industrialized countries. Specifically, I use an extended real wage Phillips curve to account for the effects of a social security tax on income distribution and therefore on capital accumulation and employment. In this framework output growth is determined from the supply side by available savings. Analytical and simulation results indicate that the sustainability of an economy with fast population aging over transient paths hinges upon improvements in labor productivity, hence, the specific mechanism of technical progress in place.

This report analyzes the effects of the current Federal tax code on farming and evaluates tax proposals to assist beginning farmers. Investment, management, and production decisions in agriculture continue to be influenced by Federal tax laws. Farmers continue to benefit from both Federal income and estate tax policies targeted to agriculture. These provisions exert upward pressure on farmland values and help support ongoing trends that increase the number of very small and large farms. However, the influence of the current tax structure with lower marginal tax rates and a broader income base is less than in earlier decades and may be small relative to government farm programs. Tax proposals to assist beginning farmers would likely increase the availability of land for lease or purchase, but would do little to make land more affordable.