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Over 140 countries agreed on a fundamental corporate tax reform in 2021 to be implemented in 2023 and beyond. To measure its potential effects, we study asset price changes within minutes of the reform announcements. We construct proxies for the reform's costs regarding U.S. companies' tax burdens and countries' public finances. Likely exposed companies exhibit significant negative stock returns. Our lower-bound estimates indicate total shareholder value losses of $112.6 billion one day after the reform announcements. Further, likely exposed countries experience increases in sovereign debt credit risk. Our findings inform the cost-benefit analysis of a historical international tax reform. Authors have furnished an Internet Appendix , which is available on the Oxford University Press Web site next to the link to the final published paper online. [ABSTRACT FROM AUTHOR]

Do automation-induced changes in labour and capital income undermine public revenues? Decomposing taxes by source (labour, capital, sales), we analyse the impact of automation on tax revenues and the structure of taxation in nineteen EU countries during 1995–2016. Before 2008 robot diffusion was associated with a decline in total tax revenues and taxes from capital, along with decreasing labour and capital income and output. After 2007, the negative effects diminish. Information and Communication Technologies show a weak negative but persistent effect on total tax revenues and taxes on goods for the full period, and an increase in capital income. Overall, the impact of automation on production and taxation varies over time. Whether automation erodes taxation depends on the technology and stage of diffusion. Concerns about public budgets appear myopic when focusing on the short run and ignoring relevant technological trends. [ABSTRACT FROM AUTHOR]

This special issue reflects one of the first systematic inquiries into the effects of revolutions on institutional change, a topic previously explored only tangentially across diverse social science domains. It fosters interdisciplinary discourse on revolutionary outcomes among economists, political scientists, sociologists, and economic historians informed by the public choice research program. The issue is divided into two parts, the first of which focuses on regime overthrow and institutional transformation and the second of which focuses on rational-choice theoretic analyses of revolution and its results. By employing analytical narratives and comparative analyses of contemporary and historical revolutions, the issue advances both theoretical and empirical understandings of revolution, revolutionary dynamics, and their implications. [ABSTRACT FROM AUTHOR]

Copyright of Revista de Historia Económica / Journal of Iberian & Latin American Economic History is the property of Cambridge University Press and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The article evaluates the development of the tax burden on cigarettes in the Czech Republic from 1993 to the end of 2023. Tax burden is represented by effective tax rate. The research results show that the tax burden on these products is still increasing. Not only does the tax burden increase, but so does the price of these products. The regression analysis results show that quantities such as the price of cigarettes, the effective tax rate or the amount of cigarettes consumed are factories that positively influence tax revenue. Since the tax rate or the price of these products constantly increases, the tax revenue is also increasing. It increased almost six- fold over the entire analyzed period. At the same time, it was found that other factors, such as the average wage, also affect the tax revenue. It is necessary to consider that the cigarette consumption has been showing a downward trend in recent years. However, the reason is not only the increasing tax burden and the price of these products but also the transition of consumers to so-called e-cigarettes. A reduction in cigarette consumption may be reflected in the future by reducing healthcare costs, which will create potential reductions in public health insurance payments.

Using a parameterized difference-in-differences approach, we study the impact of the 2021 expansion of the Child Tax Credit (CTC) in the USA, which provided monthly cash payments to families with children for 6 months. We examine the effects of the CTC on the economic wellbeing (material hardship, ability to meet needs/money on hand, hardship avoidance techniques, and employment) of families with very low incomes. This population is especially important to study as these families disproportionately benefited from the 2021 CTC expansion. We find that the 2021 monthly CTC reduced the number of hardships families experienced, especially food insecurity. We find weak evidence that the credit reduced medical hardships and reliance on friends and family for food and that it had no impact on labor supply. [ABSTRACT FROM AUTHOR]

This paper investigates the connection between climate change and energy security in Europe and provides empirical evidence that these issues are the two faces of the same coin. Using a panel of 39 European countries during the period 1980–2020, the empirical analysis presented in this paper indicates that increasing the share of nuclear, renewables, and other nonhydrocarbon energy and improving energy efficiency could lead to a significant reduction in carbon emissions and improve energy security throughout Europe. Accordingly, policies and reforms aimed at shifting away from hydrocarbons and increasing energy efficiency in distribution and consumption are key to mitigating climate change, reducing energy dependence, and minimizing exposure to energy price volatility. [ABSTRACT FROM AUTHOR]

It is well known that a consumer price-neutral reform of consumption taxes and import tariffs is welfare-improving. This paper shows that such price controls are inferior to quantity controls in terms of welfare improvement. The paper next turns to a comparison of different abatement strategies. Whether or not policy changes should fix private abatement or public abatement relates to the level of earmarking, and depends on the relationship between private production and public abatement. There are cases in which increased public abatement only improves welfare by more than both increased private and public abatement together. The paper recommends that environmental earmarking in the form of public abatement should be delivered to cushion price hikes and sustain private energy consumption. [ABSTRACT FROM AUTHOR]

Entrepreneurial ecosystems (EEs) are a growing focus for policymakers and academics seeking to foster innovation and economic growth. While existing literature has analysed various aspects of EEs, limited research has examined how public policies can contribute to their development. Through a single-case study, this study addresses this gap by analysing the role of a regional government in overcoming the challenges of building an EE. We explore the creation and development of the Biscay Startup Bay (BSB) EE in Bilbao City (Bizkaia, Basque Country, Spain). We describe the unique framework that they crafted and implemented, highlighting the key attributes that generate value for all stakeholders. This single-case study of the BSB EE in Spain offers valuable insights for policymakers seeking to design and implement successful Open Innovation-driven approaches to creating and developing regional EEs.

The subject of this paper is to evaluate the ‘Polish Deal’ programme introduced in 2022 in the tax area. The purpose of this article is to show the impact of the ‘Polish Deal’ legislation on net salaries of persons employed under an employment contract.

AbstractThis study analyzed whether gender is an important factor in explaining the behaviour of taxpayers towards tax compliance. The study extended the theory of planned bahaviour to establish the factors influencing the behaviour of taxpayers towards tax compliance across gender. Primary data was collected from 390 taxpayers using a closed-ended questionnaire set. Descriptive and inferential statistical tools were used to analyze the data. Descriptive data were presented using the mean and standard deviation, while inferential data were analyzed using a multivariate regression analysis and a univariate and independent t-test. Findings from the survey showed that the predictor variables contribute 51% in explaining the taxpayers towards tax compliance of which 84.23% is for male taxpayers while 71.86% is for female taxpayers. The results further revealed that there is a statistical difference in the behaviour of taxpayers towards tax compliance. Female taxpayers are more influenced by tax knowledge, perception of government spending and roles of tax authority while male taxpayers are more influenced by tax penalties, economic factors and tax rates. Gender contributes 55.1% to taxpayers’ beheviour towards tax compliance. The study contributed to the current literature by establishing the predictor variables that influences the behaviour of taxpayers towards tax compliance which can be used as a basis when designing a tax compliance policy and program.

The literature on the impact of financial inclusion on the instability of household consumption remains controversial. In this article, we considered the possibility that countries follow different regimes of household consumption instability and tested the hypothesis of whether financial inclusion is countercyclical or procyclical to a country's regime of consumption instability. Thus, relying on recent works that used the finite mixture regression method, we identify the different regimes of household consumption instability. Drawing on a sample of 28 developing countries over the period 2011–2020, the paper highlights that the impact of financial inclusion on consumption instability differs across classes and a three-class model best describes the sample. Specifically, we show that financial inclusion is positively associated with consumption instability in the first class, while financial inclusion significantly reduces consumption instability in the second class. Financial inclusion does not have a significant impact on the third class. Furthermore, exploring the potential role of democracy in determining class affiliation, the results emphasize that developing countries would fully benefit from financial inclusion by undertaking strong reforms to improve democracy. [ABSTRACT FROM AUTHOR]

Purpose: This article provides evidence of a long-term structural relationship between demand for heated tobacco products (HTPs) and for combustible cigarettes in a Marshallian demand framework, using data from the Italian market. Design/methodology/approach: A cointegration-based approach allows to capture the substitution effects between the two products arising for reasons (possibly) other than price. Findings: The authors find that such a relationship exists and is sufficiently strong to constitute a cointegration. Social implications: Since a fully consolidated consensus on reduced harm from smokeless tobacco products is absent, symmetric policies on both markets are therefore necessary in terms of regulation and excise incidence to minimize the social cost of substitution and to maximize government revenues, which are a necessary counterpart to negative externalities that arise with smoking both products. Originality/value: This paper focuses on the Italian market with product specific volume and price data, both for cigarettes and HTPs. Because of the detected relationship, a regulatory trade-off arises in case of a relatively mild regulation on heated-tobacco products: benefits from decreasing demand for combustible cigarettes may be offset by the social cost of increasing consumption of heated tobacco products. Moreover, a milder regulation makes price related policies to curb smoking less effective. [ABSTRACT FROM AUTHOR]

We examine whether the Internal Revenue Service (IRS) uses public information to obtain qualitative signals regarding the quality of firms' financial information or management integrity. Using the procurement of public information as a proxy for IRS attention, we test whether public signals of poor information quality (restatements) lead to an increase in IRS attention. To begin, we document that the IRS is both more likely and quicker to acquire public filings announcing a restatement than any other filing of the firm. Furthermore, we examine instances in which the IRS is more likely to learn of a restatement and find an increase in attention around both press releases and media coverage of the restatement. Next we examine the implications of increased IRS attention. Employing path analysis, we find that IRS attention is associated with both higher levels of future tax settlements and a greater likelihood of the mention of a tax audit. Overall our results are consistent with the IRS responding to signals of poor information quality or management integrity as if financial misreporting and tax reporting are related. [ABSTRACT FROM AUTHOR]

AbstractThis study investigates the impact of tax revenue on economic growth in the context of increasing trade openness in developing countries by using the data of 29 developing countries with accelerating economic growth during the period 2000–2020. This study further applies the Fixed Effect Model (FEM) and the Generalized Least Squares (GLS) estimation methods for panel data to test the proposed hypotheses. The research results show that tax revenue positively affects economic growth in general. Furthermore, we find that trade openness increases the positive relationship between tax revenue and economic growth but excessive trade openness reduces such a relationship. Our findings provide important implications for developing countries in the context of increasing tax revenue and trade openness.

AbstractTax risk has the potential to have far-reaching economic consequences, including the effect on late audit reports. This study aims to empirically investigate the effect of tax risk on audit report lag. This study took a quantitative approach. Companies listed on the Indonesia Stock Exchange (IDX) between 2012 and 2017 were used as samples. Our final observations consist of 1,813 firm-years. We find that the tax risk has no effect on audit report lag. This finding holds up when one alternative measure of tax risk and several additional control variables are considered. The result of this study has clear implications not only for company management but also for tax authority. Company management is required to always implement good tax risk management practices because this can result in a relatively low corporate tax risk. A relatively minor tax risk will have no effect on auditors’ performance in completing audit work so that companies can submit their financial reports on time. Furthermore, the tax authority benefits because the finalization of tax collection settlement is improved. Tax authority is encouraged to always maintain tax regulations that are not overly complex, complicated, or change too frequently.

Copyright of JMD: Journal für Mathematik-Didaktik is the property of Springer Nature and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This study provides an understanding of tax salience through the review of the literature. The tax salience refers to the prominence and visibility of the taxes and their influence over the taxpayer's behavior. This study reviews the background literature on tax salience, how the tax policy is influenced by it, and the reaction of consumer behavior towards tax salience. The study uses the review of literature as a research methodology. The study uses the review strategy of narrative review by synthesizing, organizing, and assembling the earlier literature related to tax salience. The google scholar database was used to retrieve relevant studies for the narrative review. The time period of the key studies is mainly from 1987 to 2023. The paper concludes that tax salience despite being a relatively young field of economics has a pivotal role in influencing tax policies and consumer behavior. This study provides guidelines for future researchers with respect to how the consumer reacts to salience of taxation. For the policy framework it can be mandated that the policy makers in order to optimize the tax systems should not overlook the concept and area of tax salience. Since the tax salience has a significant role in influencing and shaping the consumer behavior. [ABSTRACT FROM AUTHOR]

The enquiry arose from the necessity for a reevaluation of Nigeria's budgetary system. The current fiscal structure does not appear to be fair enough to foster social development in all of its ramifications. As a result, there is a void in infrastructure development in favor of citizens. The current study investigates the effect of federal government tax autonomy and statutory income on capital investment. The analysis spans the years 1990–2021 and using the ARDL, ECM and compound relapse method, revealing that the federal government's exclusive tax revenues have a large and beneficial influence on capital investment. The statutory allocation to the federal government, in divergence, has an insubstantial destructive impression on capital project spending. These findings suggest that statutory revenue at the federal level has little effect on capital project funding. There is also an existence of a long run relationship between federal government capital investment and the classes of earning applied in this investigation. The policy implication is that if the government does not expand its earning capacity, in the near future, the statutory income will be incapacitated in outlaying capital projects necessary to expand the economy. Study recommends outsourcing of more revenue avenues including foreign direct investment avenues. Study novelty: The study's originality is that it employs ARDL approaches to give an unbiased justification for the government's growth of income sources. Above all, this is a pioneering work that expressly highlights the efficacy, or lack thereof, of the federal government's tax autonomy, therefore demonstrating the short and long term link between capital outlay on infrastructure and independent proceeds of the central administration.

We set up a simple model of tax competition for mobile, highly-skilled and overconfident managers. Firms endogenously choose the compensation scheme for managers, which consists of a fixed wage and a bonus payment in the high state. Managers are overconfident about the probability of the high state and hence of receiving the bonus, whereas firms and governments are not. When governments maximize tax revenues, we show that overconfidence unambiguously reduces the bonus tax rate that governments set in the non-cooperative tax equilibrium, while increasing tax revenues. When the government objective incorporates the welfare of resident managers, however, bonus taxes also serve a corrective role and may rise in equilibrium when overconfidence is increased. [ABSTRACT FROM AUTHOR]

Short-time work (STW) policies provide subsidies for hour reductions to workers in firms experiencing temporary shocks. They are the main policy tool used to support labour hoarding during downturns and were aggressively used during the coronavirus disease 2019 (COVID-19) pandemic. Yet, very little is known about their employment and welfare consequences. This article leverages unique administrative social security data from Italy and quasi-experimental variation in STW policy rules to offer evidence on the effects of STW on firms' and workers' outcomes during the Great Recession. Our results show large and significant negative effects of STW treatment on hours, but large and positive effects on headcount employment. We then analyse whether these positive employment effects are welfare enhancing, distinguishing between temporary and more persistent shocks. We first provide evidence that liquidity constraints and rigidities in wages and hours may make labour hoarding inefficiently low without STW. Then, we show that adverse selection of low productivity firms into STW reduces the long-run insurance value of the program and creates significant negative reallocation effects when the shock is persistent. [ABSTRACT FROM AUTHOR]