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This paper studies tax-minimizing investment, whereby firms tilt capital purchases toward year-end to reduce taxes. We use this pattern to characterize how taxes affect investment behavior. We exploit variation in firm tax positions from administrative data to confirm that tax minimization causes spikes. Spikes increase when firms face financial constraints or higher option values of waiting. Cumulative investment does not completely reverse after spikes. We develop an investment model with tax asymmetries to rationalize these patterns. Both depreciation motives (later investments face lower effective tax rates) and option value motives (tax asymmetry implies time-varying opportunities to minimize taxes) are necessary to fit the data. (JEL G31, G38, H25) [ABSTRACT FROM AUTHOR]

This article discusses Treasury Regulation Section 25.2512-6, which provides valuation conventions for federal gift tax purposes for policies transferred during the insured's life. The article analyzes the Regulation Section by the broad policy types it attempts to value, analyzes the conventions for those broad policy types, and discusses the issues the Regulation Section continues to raise for practitioners who are filing federal gift tax returns for clients who gift policies to a third party during life. [ABSTRACT FROM AUTHOR]

The paper aims to assess the macroeconomic impacts of government investment in Research and Development (R&D) and more generic fiscal policies by quantifying the Gross domestic product (GDP) and business R&D investment multipliers. Following the recent literature on fiscal policy, we combine the Local Projection approach with fiscal shocks estimated using Structural Vector Autoregressive modeling by focusing on a panel of 15 Organization for Economic Co-operation and Development (OECD) countries for the 1981–2017 period. Our findings support the idea that expansionary fiscal policies can positively and persistently affect the GDP level and crowd in business R&D investment. Additionally, our results show that public investment in R&D generates the largest multiplicative effect both on GDP and business R&D than the one associated with more generic public expenditures, even when fiscal expectations are considered. [ABSTRACT FROM AUTHOR]

Carbon tax represents governments' approach to steering the economy towards a greener future. Our research question focuses on the impact of carbon tax policy on a firm's production decision and revenue and on total social welfare. In particular, we assume that a firm's decision is subject to its behavioural considerations or, in other words, its risk attitude. We model a government plan to charge a carbon tax, and a risk-averse (or risk-neutral) firm needs to plan its production and estimate its profit if the carbon tax policy is implemented. We show that it is possible for a risk-averse firm's optimal profit, in some cases, to be higher than that of a risk-neutral firm when facing a carbon tax. This implies that the risk-averse attitude is not necessarily harmful to the firm's profit. For operations management scholars, our model highlights the importance of integrating firms' behavioural responses into the carbon tax price. Our model suggests that for governments to implement carbon tax policy effectively, they should make carbon prices vary under certain conditions and not worry about price variation antagonising firms at large. [ABSTRACT FROM AUTHOR]

Copyright of Contemporary Accounting Research is the property of Canadian Academic Accounting Association 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.)

Copyright of Contemporary Accounting Research is the property of Canadian Academic Accounting Association 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.)

Copyright of Contemporary Accounting Research is the property of Canadian Academic Accounting Association 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 investigates the utilization of information technology in leveraging fiscal policy and debt management within public administration in the Philippines. Through a comprehensive analysis of survey data collected from a diverse sample of respondents, the study examines the profile of respondents in terms of age, gender, and language used, as well as their perceptions of the impact of information technology and the factors influencing its utilization. The findings reveal a predominance of older respondents, with individuals aged 40 and above comprising the largest proportion of the sample. Additionally, the majority of respondents were male, and English emerged as the predominant language spoken among participants. Moreover, the study demonstrates a consensus among respondents regarding the high impact of information technology on both fiscal policy and debt management processes. Participants recognize the transformative role of technology in reshaping financial governance practices, with a weighted mean of 3.88 for fiscal policy and 3.67 for debt management. These findings underscore the significant benefits that technology offers in optimizing efficiency, transparency, and effectiveness in fiscal decision-making, ultimately contributing to better governance outcomes and economic development. Furthermore, the study identifies various factors affecting the utilization of information technology, with organizational culture, resource allocation, leadership support, and regulatory frameworks emerging as key determinants. Participants acknowledge the critical importance of addressing these factors to ensure the effective integration and utilization of technology within public sector financial management. Additionally, participants' experiences highlight the diverse yet generally positive impact of technology on efficiency, transparency, communication, and decision-making processes within their organizations. In conclusion, this study emphasizes the transformative potential of information technology in driving positive change within public administration, particularly in fiscal policy and debt management. By addressing key challenges and leveraging technological innovations, organizations can enhance their financial governance practices, promote transparency and accountability, and ultimately contribute to sustainable development and economic growth in the Philippines. [ABSTRACT FROM AUTHOR]

Using micro-data of Chinese listed firms from 2008 to 2020, this study explores the effects of the expanding scope and intensity of the R&D tax credit policy on firms' innovation quantity and quality through two policy adjustments. We find that expanding the scope of the policy can only increase the quantity of innovation, while increasing the intensity of the policy can improve both the quantity and quality of innovation. Increasing policy intensity is also more effective based on the heterogeneity analysis in terms of firm ownership and industry. The findings have policy implications for the government to change the R&D tax credit policy further to promote practical innovation by firms. [ABSTRACT FROM AUTHOR]

The institution of a simplified taxation system provided for in the tax system of Ukraine is characterized by permanent variability, which is always aimed at achieving an optimal balance between national interests (reduction of the shadow economy sector; attracting funds to budgets; reducing the level of tax administration costs; preventing the use of simplified taxation system in minimization schemes; etc.) and individual interests of taxpayers (reducing the tax burden; promoting the competitiveness of taxpayers; improving the convenience of paying taxes; minimizing the amount of tax reporting; etc.). Since the introduction of the simplified taxation system, it has been significantly transformed and, compared to 1998, is qualitatively better. Despite this, discussions in political and scientific circles about the need to take steps to further modify this special tax regime, up to its complete abolition, do not stop. The article considers the National Revenue Strategy until 2030 approved by the supreme executive body of Ukraine, which defines a medium-term roadmap for reforming tax policy and tax administration in Ukraine. The article outlines the main principles that should be followed in modernizing the national simplified taxation system and considers the goals that the state seeks to achieve through the practical implementation of the approved strategy. The author describes in detail the key measures envisaged by this national strategy for reforming the simplified taxation system, including in the context of Europeanization of the tax system of Ukraine, and points out the uncertainty of certain elements of these measures, which leads to complications in the tax planning process for entities. The author concludes that the approved national strategy, which is aimed at approximating the national tax policy and tax legislation of Ukraine to the provisions of the European Union legislation, provides for depriving legal entities (including agricultural producers) of the right to tax their income with a single tax, and defines measures to tighten the requirements for single tax payers (individual entrepreneurs) and increase their tax burden. [ABSTRACT FROM AUTHOR]

Fiscal consolidation literature often neglects that there are economies characterized by sizable underground sectors, with their mechanisms of response to fiscal policy shocks. Therefore, reliable analyses of fiscal consolidation plans call for the decomposition of Gross Domestic Product in its regular and hidden components. We investigate fiscal consolidation effects in the context of tax evasion for the Italian economy. Results show that a temporary cut in public spending associated with a permanent drop in tax rate yet entails tax evasion reduction. The main underlying mechanism is the strong responsiveness of the underground sector, implying a reallocation of resources toward the regular sector. [ABSTRACT FROM AUTHOR]

This paper discusses the impact of COVID-19 on production and trade in Pakistan. The paper finds that Pakistan's outbreak preparedness and response has been a success story, but there are still some gaps that need to be addressed in order to better prepare for future crises. We recommend that the policy makers: conduct frequent structured dialogues with small firms to better understand the type and magnitude of unanticipated costs that increase during health crises; regularly source information to determine if the design of fiscal support is benefiting the beneficiaries; convene dialogues with businesses (which should include labour groups) to address the stringency of temporary trade measures; support smaller firms for adoption of online technologies; expedite the implementation of e-commerce policy, information security policy, and personal data protection law; and cut down business and trade costs during crisis through a more liberal tariff policy and rationalization of regulatory burden on firms. [ABSTRACT FROM AUTHOR]

This Article frames the problem of capital taxation as a dilemma of the middle of history. At the “beginning of history”—before any wealth inequality has emerged and before individuals have made any saving choices—the much-cited Atkinson-Stiglitz theorem teaches that the optimal capital tax is zero. At the “end of history”—after individuals have made all of their saving choices—the optimal capital tax is generally agreed to be 100%, since a capital tax today cannot distort decisions made in the past. Neither result tells us how to proceed in the “middle of history”—after significant wealth inequality has emerged but while the shadow of the future still looms large. Yet absent an imminent apocalypse, the “middle of history” is the temporal reality with which our tax policies must contend. The central question for capital taxation in the middle of history is how governments today can respond to accumulated inequalities while credibly committing to future tax trajectories. This Article focuses on three factors—institutions, inequality, and ideas—that mediate the relationship between past and present policy and expectations of future policy. Exploring these three mediating factors in deep detail can enrich our positive understanding of capital taxation’s real-world effects while refining our normative views about optimal capital tax design. Economic reasoning proves useful to this inquiry, but the Article also emphasizes the importance of integrating perspectives from history, political science, sociology, and—not least—law into a holistic account of capital taxation and credible commitment. The analytical payoffs from such an approach are far-reaching. For example, a middle-of-history perspective complicates the conventional wisdom regarding the relationship between capital taxation and investment incentives: Capital tax cuts—which are typically thought to incentivize investment—may have the reverse effect when they undermine public confidence in the political stability of a low-capital-tax regime. Beyond the implications for tax, a middle-of-history perspective can yield lessons for—and derive lessons from—fields ranging from criminal justice to intellectual property, which face credible commitment problems comparable to tax’s dilemma. The challenge of sustaining credible commitment when policymakers’ incentives are time inconsistent is not just a problem of capital taxation in the middle of history but a more general problem of law in the middle of history. [ABSTRACT FROM AUTHOR]

AbstractThis study examines attitudes toward the economic and political outcomes of widespread cryptocurrency adoption in a survey experiment conducted in Finland. Its goal is to assess how information on the political implications of cryptocurrencies influences individuals’ investment tendencies and their views on regulation and technology abolishment. Utilizing a survey experiment design for causal inference, it explores reactions to the perceived economic, monetary, fiscal, and geopolitical impacts of wider cryptocurrency adoption. Although priming messages had no significant effect on opinions about government intervention in crypto markets, a slight influence on personal investment decisions was noted, with some participants showing increased reluctance to invest due to potential economic and political repercussions. While our findings are not claimed to be universal, we aim to inspire further scholarly engagement with the topic of crypto adoption, a process currently influenced by negotiations between powerful interest groups and regulators. We argue for the importance of considering public attitudes and interests in these discussions. [ABSTRACT FROM AUTHOR]

This study aims to show the response of foreign direct investment (FDI) inflows to monetary policy (represented by money supply and interest rate) and fiscal policy (represented by tax revenues) in Nigeria during the period (1990–2021). The autoregressive distributed lag approach is employed to estimate long‐run relationship among variables. The results indicate that there is cointegrating long‐run relationship among the study variables. The study provides empirical evidence showing that an increase in the percentage of money supply to gross domestic product (GDP) by (0.971%) leads to a decrease in the percentage of FDI inflows to GDP by (0.975%), an increase in the percentage of tax revenues to GDP by (4.256%) leads to a decrease in the percentage of FDI inflows to GDP by (0.975%), an increase in interest rate by (1.164%) leads to decrease in the percentage of FDI inflows to GDP by (0.975%), and an increase in inflation rate by (0.329%) leads to increase in the percentage of FDI inflows to GDP by (0.905%). [ABSTRACT FROM AUTHOR]

Large CO2 emissions constitute a significant problem today due to their effect on climate change, and the need to design appropriate energy policies to mitigate their consequences and reduce emissions requires a detailed analysis of one of the main sources of such emissions: the electricity system. Thus, this paper presents a study on the effects of energy policies on decarbonization by comparing the detailed phase-out of coal-fired power plants across a range of cases with the implementation of a carbon tax to meet Nationally Determined Contributions (NDCs). The case study focuses on the Chilean electricity system, using a long-term generation and transmission expansion planning model (GTEP) that incorporates a wide range of generation technologies. The study examines the long-term effects of these policies, including costs, investments, and CO2 emissions, as well as their impact on consumer prices reflected in the marginal costs of the system. The transmission system modeling covers various regions of Chile and significant projections for renewable energy sources. It evaluates three economic scenarios based on generation technology costs, fuel prices, and electricity demand under four different closure schemes and fourteen different carbon tax levels. The results indicate that implementing a carbon tax can be more cost-effective for the system than the implementation of a phase-out schedule for coal plants, taking the form of reduced CO2 emission and overall system costs, with an optimal carbon tax value of 37 USD/tCO2. Additionally, the study reveals significant effects on consumer prices, showing that a carbon tax as an energy policy leads to lower prices compared to a phase-out scheme. [ABSTRACT FROM AUTHOR]

Purpose: The main objective of this study is to analyse tax policies from a human rights perspective. Motivation: This study is inspired by the observation of crises that appeal to us, revive existing challenges, and lead us to re-evaluate public services. In connection with the causes and consequences of these contexts, this study formulates a new approach to taxation practices, connecting the design of tax policies with their capacity to contribute to the realisation of economic, social, and cultural human rights. Design/Methodology/Approach: The research was carried out following a methodology that includes a review of the relevant literature, the analysis of the work of international institutions in the field, and the examination of international and regional legal frameworks for the protection of human rights, in connection with states' obligations to provide adequate services. Main findings: Tax justice stands as a pillar to ensure that states, through the management of public resources, can fulfil their obligations in the mitigation of economic and social inequalities and in the funding of rights and public services. Practical implications/Managerial impact: The changes resulting from globalisation, transnational trade, offshoring of production and, among others, advances in digitalisation, make it necessary to analyse the validity of the foundations of our tax systems towards achieving the long-awaited tax justice. This study aims to contribute to the consolidation of the basis for this necessary connection between tax policies and human rights. Novelty/Contribution: This study argues that only those tax policies that integrate a human rights perspective can be considered optimal for achieving tax justice. [ABSTRACT FROM AUTHOR]

Purpose: How can tax policies serve as a tool to promote distributive tax justice? The purpose of this study is to discuss several policies that research shows are both feasible and effective in achieving distributive tax justice. Motivation: By many accounts, income and wealth inequality has grown significantly in many countries in recent years, violating many peoples' standards of "distributive tax justice". Exploring policies that research has shown are both feasible and effective in achieving distributive tax justice should provide useful guidance to governments. Design/Methodology/Approach: This paper reviews research on policies that have been suggested as options, examining both the feasibility that these policies may be enacted and the effectiveness of these policies if actually implemented. Main findings: This paper suggests policies that would increase the taxes paid by the rich, reduce tax evasion by the rich, and decrease the tax burdens by the gender, race, and ethnicity of taxpayers. Practical implications/Managerial impact: These policies all work through existing taxes, they are all administratively feasible and effective, none of these policies raises statutory marginal tax rates, these policies are all consistent with the standard "Broad Base, Low Rate" approach to tax reform, and variants of all of these policies apply worldwide. Novelty/Contribution: These suggested policies are novel among many other analyses because the policies here all emerge from a framework that emphasises feasibility and effectiveness in achieving distributive tax justice. [ABSTRACT FROM AUTHOR]

Tax buoyancy exhibits unique behaviour in nations facing specific challenges. This phenomenon is particularly pronounced in sub-Saharan countries which often implement tax exemptions to boost investment and facilitate trade. This study investigates tax buoyancy in Rwanda. It uses government administrative data and rigorous statistical techniques. The Engle-Granger test for co-integration and Ordinary Least Squares regression techniques were used to assess long-term relationships and models. The study findings revealed that the Gross Domestic Product (GDP) was co-integrated with Direct Taxes while the Total Consumption correlates with Taxes on Goods and Services. The study revealed that there was no sustained correlation between s and international trade taxes in Rwanda. This was attributed to the increasing use of customs tax exemptions for trade facilitation and investment promotion. The GDP emerged as a reliable predictor for international trade taxes. The findings revealed the dynamic tax system in Rwanda was characterized by substantial buoyancy rates. Crucially, the study recommends not relying on import volumes for forecasting international trade taxes, not only in Rwanda but also in other countries adopting similar tax policies. The lessons drawn from Rwanda's experience offer valuable insight for policymakers confronting similar challenges. [ABSTRACT FROM AUTHOR]

In this paper, we examine how and why the European Commission's ideas on fiscal policy have changed over the course of the European Semester. Empirically, we rely on a semi-supervised scaling approach to identify economic ideas as they appear in Semester documents from the aftermath of the financial crisis onwards (2011-2022). Our findings demonstrate a gradual shift in ideas from an ordoliberal to a Keynesian direction, especially during the overlapping Von der Leyen and Covid-19 crisis years. We identify substantial country-specific differences throughout 2011–2022, with some countries receiving exclusively Keynesian recommendations, and others distinctively ordoliberal ones. These patterns can be explained in part by economic conditions in those member states but not by the public's trust in the EU. These results underscore the reactive nature of the Commission's economic ideology; crises, as well as member states' economic conditions, shape the direction of its fiscal policy recommendations. [ABSTRACT FROM AUTHOR]

The paper examines the current state and development of the Bulgarian economy in 2023, considering domestic and regional factors. We analyze the real sector by tracking GDP, inflation, and unemployment, linking these to EU processes. Emphasis is placed on labour market adjustments in the context of digitalization and transitioning to a climate-neutral economy. The sustainability of the fiscal sector is explored through financing the green and digital transition with EU funds, and the necessary policies to maintain fiscal stability. We discuss foreign trade prospects, considering the economic conditions and expectations for Bulgaria's main trading partners, the high dependence on euro area performance, and the specifics of foreign trade relations. The banking sector and the capital market analysis focus on the implications of European Central Bank monetary policy, regulatory actions of the Bulgarian National Bank, and risks to sector stability in a dynamic macroeconomic environment. Expectations and forecasts for the Bulgarian economy through 2026 are based on assumptions about global economic processes and local challenges. We make economic policy recommendations aimed at preserving the purchasing power of the population's income and restructuring certain fiscal measures. [ABSTRACT FROM AUTHOR]

The pandemic crisis and associated lockdown have led to diminution in demand on one hand and different types of supply side bottlenecks on the other. The article makes a theoretical attempt to assess macroeconomic dimensions of COVID-19 along with consequences of such crisis using a two-sector dependent economy model. In particular, the article investigates the implications of unanticipated adverse shock such as COVID-19 and wage cut for the dynamic interaction of Tobin's q, price of non-traded goods and the exchange rate and sectoral composition of output and level of employment. The effects of expansionary fiscal policy and increase in risk premium are also highlighted as the part of concluding remarks. The results in this article critically depend on the difference in the speeds of adjustments in the Tobin's q, exchange rate and price of non-traded goods and different types of cross effects emanating from changes in interconnected macroeconomic variables. While the pandemic crisis leads to contraction of all the sectors and decrease in level of employment in the short-run with uncertain medium-run implications, the wage cut somewhat arrests the fall in employment. JEL Codes: E24, F41, G12 [ABSTRACT FROM AUTHOR]

DSGE models based on New Keynesian principles, which have been extended to allow for banking, the zero lower bound on interest rates (ZLB), and varying price duration, can account well for recent macroeconomic behavior across a variety of economies. These models find that active fiscal policy can contribute to macroeconomic stability and welfare by reducing the frequency of hitting the ZLB. Fiscal policy can also share the stabilisation role with monetary policy, whose effectiveness under the ZLB is much reduced. [ABSTRACT FROM AUTHOR]

Purpose: This study aims to investigate the role of negative media coverage of environmental, social and governance (ESG) issues in deterring tax avoidance. Inspired by media agenda-setting theory and legitimacy theory, this study hypothesises that an increase in ESG negative media coverage should cause a reputational drawback, leading companies to reduce tax avoidance to regain their legitimacy. Hence, this study examines a novel channel that links ESG and taxation. Design/methodology/approach: This study uses panel regression analysis to examine the relationship between negative media coverage of ESG issues and tax avoidance among the largest European entities. This study considers different measures of tax avoidance and negative media coverage. Findings: The results show that negative media coverage of ESG issues is negatively associated with tax avoidance, suggesting that media can act as an external monitor for corporate taxation. Practical implications: The findings have implications for policymakers and regulators, which should consider tax transparency when dealing with ESG disclosure requirements. Tax disclosure should be integrated into ESG reporting. Social implications: The study has social implications related to the media, which act as watchdogs for firms' irresponsible practices. According to this study's findings, increased media pressure has the power to induce a better alignment between declared ESG policies and tax strategies. Originality/value: This study contributes to the literature on the mechanisms that discourage tax avoidance and the literature on the relationship between ESG and taxation by shedding light on the role of media coverage. [ABSTRACT FROM AUTHOR]

The purpose of this study is to perform a practical inquiry into the influence of environmental tax laws on the execution of climate‐related financial policies. Our research will assess the effectiveness of environmental tax measures in 23 European countries from 2011 to 2020. The panel‐corrected standard error (PCSE) model and the feasible generalized least squares (FGLS) model are used in the empirical examination of the link between environmental tax laws and the implementation of climate‐related financial measures. This study is based on panel data with cross‐sectional dependence. The results of our estimation highlight the need to improve policy effectiveness by using all four ecological tax indicators. These include total environmental tax revenue, energy tax revenue, pollution and resource tax revenue, and transportation tax revenue. Furthermore, we provide actual evidence clarifying the process by which the implementation of environmental tax policies improves the efficacy of climate‐related financial policies in the short term as well as the long term. According to the findings, a third of environmental tax policy indicators have a long‐term effect on the implementation of climate‐related financial measures, with no short‐term effects seen. Our findings are critical for economists and policy‐makers who support the environmental tax as an effective tool to promote a country's climate policy implementations. Highlights: We examine impacts of environmental tax on climate‐related financial policies.Environmental tax has a favorable impact on climate‐related financial policy adoption.Environmental tax enhance a country's climate‐related financial policies in the long‐term. [ABSTRACT FROM AUTHOR]

This study develops a general equilibrium life-cycle model to explore the welfare and inequality implications of different ways to return carbon tax revenue back to households. We find that the welfare-maximizing rebate uses two-thirds of carbon-tax revenue to reduce the distortionary tax on capital income while using the remaining one-third to increase the progressivity of the labor income tax. This recycling approach attains higher welfare and more equality than the lump-sum rebate approach preferred by policymakers as well as the approach originally prescribed by economists—which called exclusively for reductions in distortionary taxes. [ABSTRACT FROM AUTHOR]

This study investigates factors influencing the reelection prospects of Brazilian mayors. Analyzing a comprehensive data set spanning 5114 municipalities across four elections reveals that increases in investment and current expenditures before elections pay off at the polls. Moreover, higher average investment expenditures throughout the term enhance reelection chances. The results also indicate that when former term‐limited mayors run against the incumbent, reelection probability diminishes, particularly with higher average investment by the previous mayor. Finally, the level of literacy shapes voter attitudes towards opportunistic fiscal strategies: voters with limited literacy are inclined to reward increases in current expenditures, whereas more educated populations prefer increasing investment. [ABSTRACT FROM AUTHOR]

This paper concerns Saez and Stantcheva's (2016) generalized social marginal welfare weights, which aggregate losses and gains due to tax policies while incorporating nonutilitarian ethical considerations. The approach evaluates local tax changes without a global social objective. I show that local tax policy comparisons implicitly entail global comparisons. Moreover, whenever welfare weights do not have a utilitarian structure, these implied global comparisons are inconsistent. I argue that broader ethical values cannot in general be represented simply by modifying the weights placed on benefits to different people, and a more thoroughgoing modification of the utilitarian approach is required. (JEL D60, D63, D71, H21, H23, I31) [ABSTRACT FROM AUTHOR]

The COVID‐19 pandemic has highlighted the need of maintaining financial and economic stabilization to mitigate the negative effects of the health crisis. In the context of a currency area, national governments count on national fiscal and macroprudential instruments to stabilize their own economy. Through a DSGE model for a monetary union I assess the welfare implications of different macroprudential‐fiscal policy combinations, that are set with stabilization purposes. The findings confirm that for a supply and a demand shock, as the ones responsible for the economic crisis of 2020, the stabilizing policy mix might deteriorate welfare. By contrast, after a financial shock, similar to that of the Great Recession, the stabilizing policy combination strategies always achieve welfare gains. [ABSTRACT FROM AUTHOR]

The purpose of this paper is to provide a micro‐economic foundation for an argument that the direct employment by the government is more desirable than the government purchase of private goods to eliminate unemployment. A general equilibrium model with monopolistic competition is devised, and the effects of policies (government purchase, tax rate operation, and government employment) on macroeconomic variables (consumption, price, and profit) are investigated. It is shown that (1) the government purchase is inflationary in the sense that additional effective demand by the government not only increases private employment but also raises prices; (2) the government employment can achieve full employment without causing a rise in prices. [ABSTRACT FROM AUTHOR]

Risk aversion is one of the investment theories in which the price-performance ratio reacts to the investor’s risk tolerance and is guided with due attention to its changes. These settings allude to changes in the investor’s activity in response to global economic patterns. According to this theory, investors tend to have higher-risk investments when the market risk is low. However, investors tend to invest in a safe asset when a high market risk is felt. The investor’s tendency to avoid risk increases and decreases over time. Occasionally, investors invest more in higher-risk instruments than in other periods, such as economic prosperity in 2009. The primary purpose of this research study is to present a model for identifying the risk aversion of shareholders depending on the influence and role of the government’s monetary and fiscal policies and the mass behavior of shareholders. This is applied research in terms of purpose and descriptive survey research in terms of method. The statistical population of the research is the country of Iran. The study’s participants include managers, shareholders, and investors with associated scientific backgrounds and experience in the stock exchange. Thus, the managers, shareholders, and investors active in the stock exchange were selected as the participants of the present study. Besides, the purposeful sampling method and theoretical sampling strategy with maximum variation were used. The researcher reached theoretical saturation by interviewing nine people, and the interviews continued with 11 people to become confident about the results. Data analysis was done using MAXQDA OLS, pls software. The research results have been to identify the role of the government’s monetary and fiscal policies and the shareholders’ mass behavior in presenting the model of identifying the risk aversion of the shareholders. [ABSTRACT FROM AUTHOR]

Background: Research on determinants of health policy implementation is limited, and conceptualizations of evidence and implementation success are evolving in the field. This study aimed to identify determinants of perceived policy implementation success and assess whether these determinants vary according to: (1) how policy implementation success is operationally defined [i.e., broadly vs. narrowly related to evidence-based practice (EBP) reach] and (2) the role of a person's organization in policy implementation. The study focuses on policies that earmark taxes for behavioral health services. Methods: Web-based surveys of professionals involved with earmarked tax policy implementation were conducted between 2022 and 2023 (N = 272). The primary dependent variable was a 9-item score that broadly assessed perceptions of the tax policy positively impacting multiple dimensions of outcomes. The secondary dependent variable was a single item that narrowly assessed perceptions of the tax policy increasing EBP reach. Independent variables were scores mapped to determinants in the Exploration, Preparation, Implementation, and Sustainment (EPIS) framework. Multiple linear regression estimated associations between measures of determinants and policy implementation success. Results: Perceptions of tax attributes (innovation determinant), tax EBP implementation climate (inner-context determinant), and inter-agency collaboration in tax policy implementation (outer-context and bridging factor determinant) were significantly associated with perceptions of policy implementation success. However, the magnitude of associations varied according to how success was operationalized and by respondent organization type. For example, the magnitude of the association between tax attributes and implementation success was 42% smaller among respondents at direct service organizations than non-direct service organizations when implementation success was operationalized broadly in terms of generating positive impacts (β = 0.37 vs. β = 0.64), and 61% smaller when success was operationalized narrowly in terms of EBP reach (β = 0.23 vs. β = 0.59). Conversely, when success was operationalized narrowly as EBP reach, the magnitude of the association between EBP implementation climate and implementation success was large and significant among respondents at direct service organizations while it was not significant among respondents from non-direct service organizations (β = 0.48 vs. β=-0.06). Conclusion: Determinants of perceived policy implementation success may vary according to how policy implementation success is defined and the role of a person's organization in policy implementation. This has implications for implementation science and selecting policy implementation strategies. [ABSTRACT FROM AUTHOR]

The twin deficit hypothesis suggests that budget deficits are crucial factors leading to current account deficits, and substantial empirical evidence documents a significant positive statistical correlation between budget and current account deficits. However, such evidence generally suffers from endogeneity problems due to reverse causality, thereby making it difficult to provide solid evidence to support policy implementation. We use extensive cross-national panel data from developed and developing countries and military expenditure as an instrumental variable to reexamine the impact of budget deficits on the current account and test the validity of the twin deficit hypothesis. Our results demonstrate that budget deficits lead to current account deficits in both developed and developing countries, supporting the twin deficit hypothesis. After considering various factors that may affect the exogeneity of military expenditures, approximating the instrumental variable as exogenous, and performing multiple robustness tests, the hypothesis still holds. This study provides solid evidence supporting the use of fiscal policies to deal with current account imbalances. [ABSTRACT FROM AUTHOR]

AbstractWho influenced whom during the 2008 crisis? Did academic economists shape central bankers’ attitudes towards fiscal policy, or did central bankers impose their agenda? In an attempt to answer these questions, we analyse established attitudes and yearly topics found in speeches by bankers from six central banks and in working papers published by academic economists. Methodologically, both attitudes and topics are reconstructed through textual analysis. The results show that context matters. [ABSTRACT FROM AUTHOR]

This study aims to reveal whether taxes are blessings or curses based on the distinction between direct and indirect taxes. As in the past, taxation is an indispensable instrument of government policy in today's modern state administration models. Since taxation is an inevitable phenomenon, designing an effective and efficient tax policy is an important decision process in economic development. This study will serve as a source for formulating an effective fiscal policy. Within the scope of the study, 1998/Q1 period and 2023/Q2 quarterly data for Turkiye are used. The tax curse hypothesis is analyzed using Prais-Winsten and Cumulative Fourier-frequency Toda & Yamamoto Test methods. In addition, the long-run performance of the relationship between the variables used in the model was evaluated by Wavelet Transform Coherence (WTC) analysis. The results of the analysis reveal that direct taxes have a negative impact on economic growth and thus the tax curse hypothesis is valid, while there is no tax curse in terms of indirect taxes. The study also reveals that direct taxes have a devastating effect in economies that are in the middle of the economic growth process and have a high growth rate, but this effect is not permanent and disappears after a while. The results are important in terms of guiding the formulation of government policies and the formulation of effective tax policies, especially for developing countries. [ABSTRACT FROM AUTHOR]

The purpose of this paper is to examine the role of fiscal discipline on the dynamics of exchange rate pass-through during inflation targeting. The present study analyses the Turkish economy for the period 2006–2022 by the use of threshold regression models. Our results suggest that fiscal discipline, measured by the IMF-defined primary budget balance as a share of GDP (which excludes the one-off government revenues balance such as privatization, interest earnings, and real estate sales) has a significant role in inflation dynamics. The degree of exchange rate pass-through is significantly lower and thus raises the effectiveness of inflation targeting when the government ensues strict fiscal discipline. [ABSTRACT FROM AUTHOR]

AbstractThis paper advances recent work exploring synergies and tensions between two schools of political-economic thought—degrowth and modern monetary theory (MMT)—and posits that this synergy warrants closer attention from International Political Economy and Environment (IPEE) scholars. Thus far, degrowth policies have largely been proposed upon the assumption that governments are limited in budgetary terms. MMT theorists have offered an alternative perspective on fiscal policy space but generally provide insufficient ecological considerations. This paper asks how each school’s underlying assumptions about the limits of economic activity might inform the other’s framework of action. We find that while there are tensions between the two schools’ economic philosophies, there are possibilities for cross-fertilization, which ought to interest IPEE scholars. MMT could engage degrowth’s perspective of ecological limits and global socio-ecological justice in its discussions about what economies can ‘afford’, whereas degrowth could use MMT insights to shift from a ‘pay for’ to a ‘resource’ frame, while centering abundance before limits. Meanwhile, IPEE can provide insights to an MMT-informed degrowth transition by grounding this debate in material analyses of class and power. Our findings suggest that degrowth and MMT could provide a normative direction for IPEE research centered around meeting material needs within planetary boundaries. [ABSTRACT FROM AUTHOR]

Rachel Reeves's March 2024 Mais lecture was an exercise in tempering hope that Britain's threadbare public services would soon be restored to health. The message of restraint might prove to be early confirmation of Reeves's instinctive governing philosophy, but it also reflected the fact that she was called upon to speak in a context of epistemic injustice. Senior Labour politicians must always accept greater scrutiny of their fiscal policy pronouncements than their Conservative counterparts. Their statements are also susceptible to disinformation, such that what Labour's opponents insist its frontbench team are hiding from the electorate often gets treated as a more authentic account of its plans than anything Labour says for itself. [ABSTRACT FROM AUTHOR]

AbstractThis study analyses the formation of a policy system that reduced income inequality in Japan in the 1960s, a period of rapid economic growth. According to comparative research, the Japanese state is an example of small government with income equality. Japan’s income inequality rose in the 1950s, and at that point, the government faced a decision about how to reduce income inequality, and particularly whether to expand social security and government size. This study uses primary materials to analyse how and why Japan became more egalitarian while maintaining a small-government state, focusing on fiscal rules set by the Ministry of Finance, which adopted a balanced budget rule that prevented the issuance of public bonds and limited the tax burden ratio. As reflected in the government’s Income Doubling Plan, this development led to a trade-off among factors, such as social security, public works, and tax cuts, which led to the subordination of social security. Despite public debt issuance in 1965, which was contrary to two fiscal rules, social security did not expand because of fiscal rigidification. Throughout the 1960s, spending on public works and income tax cuts was prioritised over social security, resulting in small government but also income equality. [ABSTRACT FROM AUTHOR]

The government provided the Covid-19 Social Assistance Program to mitigate an economic impact from the restriction on activities to stop the spread of the Covid-19 virus. It caused a significant increase in social assistance spending on the government budget, but the poverty rate still increased. The purpose of this study was to find out the influence of Covid-19 social assistance in increasing the level of family welfare and how the program performs according to the perceptions of policy recipients. Primary research data was obtained through a family survey in 2022. This research uses descriptive analysis to assess policy performance and DID analysis to assess the effect of providing Covid-19 social assistance on welfare. Results show that the implementation of program performance has met the recipient expectations, however, mistargeting and inequalities are still found. Giving cash of IDR300,00 six times unable to maintain family welfare due to the pandemic. Increasing aid value and combining aid with goods is effective in improving well-being but not significant at the family level. The results also show that the number of family members is significant on providing assistance, so the government needs to consider this in determining the value of assistance. The withdrawal of Covid-19 social assistance in the following year significantly reduced welfare because the family economy had not fully recovered. [ABSTRACT FROM AUTHOR]

This study aims to examine the unintended consequences of tax exemption policy on Land and Building Tax (PBB) for Sales Value of Tax Objects (NJOP) on properties under Rp 1 billion. Using Ordinary Least Square (OLS), this study analyzes data from PBB and BPHTB (Land and Building Rights Acquisition Fees) on the land and building’s certifications as well as the sales and property transactions, during the period of 2012 to 2019 in 267 sub-district areas within DKI Jakarta. This study learnt that the greater the number of the tax entities that received tax exemption in one sub-district, the greater the number of certifications as well as transactions (sales and purchases of property) under Rp 1 billion. This was consistently found within the sub-districts that were included in the non-flood-prone category, but not within the flood-prone sub-districts where the correlation was only significant for the certifications. [ABSTRACT FROM AUTHOR]

Income inequality is seen as one of the main socio-economic problems in Turkey, as in all countries in the world, regardless of their development status. This situation indicates the importance of analyzing the relationship between regional growth and income distribution and constitutes the driving force of this study. In this context, the main objective of the study is to determine the effects of central and regional budget revenues and expenditures on income distribution and regional growth in Turkey. In the study, two different models with GDP and Gini coefficient as independent variables were constructed using the annual data within the scope of classification of Statistical Region, SR Level 2 (26 Region) for the period 2014-2022, and tested by the panel data analysis method. According to the results of the analysis, although central budget expenditures have a positive effect on income distribution, regional budget expenditures have a negative effect. In addition, while regional budget revenues positively affected income distribution, central budget expenditures, migration, and growth had no statistically significant effect on income distribution. On the other hand, when the factors affecting growth are analyzed, it is concluded that the effects of regional and central budget revenues are positive, regional budget expenditures are negative, and central budget expenditures, migration of regions, and income distribution are statistically insignificant. [ABSTRACT FROM AUTHOR]

Many countries are implementing carbon taxation to limit emissions, and this provides a new form of tax revenue. Studies have taken up the question of what forms of expenditure from carbon taxation receive public support and whether 'revenue recycling' can improve support for carbon taxation. However, public attitudes are ambiguous. We argue that some of the diverse findings partly reflect that previous studies have lacked the trade‐offs that come with expenditures and that we need to expand focus beyond what the average citizen wants. Therefore, we use an approach where members of the Danish public are asked how they would like to divide the total sum of carbon tax revenues between eight specific areas. We employ hierarchical cluster analysis, which shows a diverse field of groups. This reveals that, while generally popular, expenditures toward climate mitigation and adaptation need to be complemented by social spending to achieve broader support. Related Articles: Ike, Vivian. 2020. "The Impact of Veto Players on Incremental and Drastic Policy Making: Australia's Carbon Tax Policy and Its Repeal." Politics & Policy 48(2): 232–64. https://doi.org/10.1111/polp.12346. Lachapelle, Erick, Thomas Bergeron, Richard Nadeau, Jean‐François Daoust, Ruth Dassonneville, and Éric Bélanger. 2021. "Citizens' Willingness to Support New Taxes for COVID‐19 Measures and the Role of Trust." Politics & Policy 49(3): 534–65. https://doi.org/10.1111/polp.12404. Tuxhorn, Kim‐Lee, John D'Attoma, and Sven Steinmo. 2021. "Do Citizens Want Something for Nothing? Mass Attitudes and the Federal Budget." Politics & Policy 49(3): 566–93. https://doi.org/10.1111/polp.12406. [ABSTRACT FROM AUTHOR]

Developing countries have a higher propensity for debt distress than their developed counterparts and small economies are more vulnerable to external shocks than larger ones. We examine the primary balances of two economies at the intersection of developing and smallness classifications – so-called small island developing states (SIDS) – Trinidad and Tobago (T&T) and Mauritius. These countries have comparable characteristics (smallness, openness, populations, and are former plantation economies with similar colonial histories) but differ in their natural resource wealth status (the former is resource-rich and the latter is resource-poor). Given the myopic insights provided by single metrics of government indebtedness, such as the debt-to-GDP ratio, we augment standard fiscal reaction functions with purpose-built debt sustainability measures that use principal component analysis to consolidate the information content imbedded in a comprehensive range of country-relevant fiscal ratios. Our results show while debt is sustainable in both countries, fiscal policy is procyclical. We also find that debt volatility is positive and significant for T&T's primary balance but is insignificant for Mauritius, which we attribute to the differing degrees of export-diversification between the countries. Policy recommendations include greater commitments to counter-cyclical fiscal policy in both SIDS and greater export-diversification initiatives in T&T. [ABSTRACT FROM AUTHOR]

Technology innovation in prefabricated buildings (PBs) is an important way to realize transformation upgrading and green development for the construction industry. The existing literature focuses on the influence of different types of policies on PB development while ignoring the importance of technology innovation. In addition, there are still inconsistent conclusions in the evaluation of the influence of policies on technology innovation. Using the difference-in-differences method and panel data from 2011 to 2020 covering 25 provinces of China, this study investigates the mechanism and impact of five different technological and economic policies on PB technology innovation. The results show that technological support policy, land supply policy, fiscal subsidy policy, and preferential tax policy have a significantly positive impact on PB technology innovation. However, financial policy has no significant effect on PB technology innovation. This paper not only makes theoretical contributions to PB policy research, but also provides the government with a more precise and effective policy toolbox to promote technology innovation in the PB industry or other industries. [ABSTRACT FROM AUTHOR]