Search results for "jel:H3"
showing 9 items of 9 documents
FISCAL POLICY AND ASSET PRICES
2011
We assess the role played by fiscal policy in explaining the dynamics of asset markets. Using a panel of ten industrialized countries, we show that a positive fiscal shock has a negative impact in both stock and housing prices. However, while stock prices immediately adjust to the shock and the effect of fiscal policy is temporary, housing prices gradually and persistently fall. As a result, the attempts of fiscal policy to mitigate stock price developments may severely de-stabilize housing markets. The empirical findings also point to: (i) a contractionary effect of fiscal policy on output in line with the existence of crowding-out effects; (ii) a weakening of the effectiveness of fiscal p…
The Effects of Social Spending on Economic Activity: Empirical Evidence from a Panel of OECD countries
2012
The aim of this paper is to assess the short term effects of social spending on economic activity. Using a panel of OECD countries from 1980 to 2005, the results show that social spending has expansionary effects on GDP. In particular, we find that an increase of 1% of social spending increases GDP by about 0.1 percentage point, which, given the share of social spending to GDP, corresponds to a multiplier of about 0.6. The effect is similar to the one of total government spending, and it is larger in periods of severe downturns. Among spending subcategories, social spending in Health and Unemployment benefits have the greatest effects. Social spending also positively affects private consump…
In-work benefits for married couples: an ex-ante evaluation of EITC and WTC policies in Italy
2014
This paper investigates labor supply and redistributive effects of in-work benefits for Italian married couples using a tax-benefit microsimulation model and a multi-sectoral discrete choice model of labor supply. We consider two in-work benefit schemes following the key principles of the Earned Income Tax Credit (EITC) and the Working Tax Credit (WTC) existing in the US and the UK, respectively. The standard design of these in-work benefits is however augmented with a new benefit premium for two-earner households in order to overcome the well-known disincentive effects that these welfare instruments may generate on secondary earners. In simulation, the proposed in-work benefits are finance…
Measuring the Regional Incidence of Taxes and Public Expenditure: The Available Methodology and its Limitations
2014
This article reviews the basic methodology used to estimate the regional incidence of taxes and public expenditure, which we call the fiscal incidence approach, and compares it with the cash flow approach, which measures tax revenues and expenditures in terms of the associated monetary cash flows. In this context, it considers critically the particular version of the cash flow approach used in Spain. The article also looks at the different ways in which economists have tried to decompose fiscal balances into a structural or distributive component and a cyclical component, and critically reviews present practices.
Can fiscal policy stimulus boost economic recovery
2011
We assess the role played by fiscal policy in explaining the dynamics of asset markets. Using a panel of ten industrialized countries, we show that a positive fiscal shock has a negative impact in both stock and housing prices. However, while stock prices immediately adjust to the shock and the effect of fiscal policy is temporary, housing prices gradually and persistently fall. Consequently, the attempts of fiscal policy to mitigate stock price developments (e.g. via taxes on capital gains) may severely de-stabilize housing markets. The empirical findings also point to significant fiscal multiplier effects in the context of severe housing busts, which gives rise to the importance of the im…
Evaluating the impact of public subsidies on a firm's performance : a two-stage quasi-experimental approach
2009
In this paper we evaluate the effectiveness of regional R&D public programs in Catalonia (Spain) with a two-stage procedure. Firstly, we compare the performance of publicly subsidised companies (treated) with that of similar, but unsubsidised companies (non-treated). We use the Propensity Score Matching (PSM) methodology to construct a control group which, with regard to its observable characteristics, is as similar as possible to the treated group, and that allows us to identify firms which maintain the same propensity to receive public subsidies. Secondly, and once a valid comparison group has been established, we compare the respective performance of each firm using regression techniques…
The National Income Between Monetary and Fiscal Actions
2013
Andersen and Jordan (1968) and Andersen (1971) argued that fiscal actions have a negligible effect on nominal income and can not sustain a stable and balanced economic growth. Also, they argued, along with other researchers who have embraced monetarism ideas from the Federal Reserve Bank of St. Louis, that the budget deficit presents negative effects in the economy that limit private investment. In this article, we analyzed the empirical relationship that is established between the tax actions and the long and short term national income in the U.S. economy and the economies of Eurozone.
General coordinates of the relationship between taxation and management
2015
Any modern state is unthinkable without an efficient taxation, without a fiscal field which is perceived as a stimulating factor in the development of the nation. Taking into account that fiscal science has always had a negative perception among taxpayers, through this article we present some aspects of management methods and management techniques that can give essential elements for improving taxation. Using management as art, science and state of mind can strengthen the role that taxation plays in the regulation of economic mechanisms.
The perception of young people regarding the Romanian taxation
2015
According to the principles of taxation, taxes should contribute to the development of the personality of each individual, to the overall development of the economy. In this framework, the elaboration and development of fiscal policy decisions must take into account the financial, economic and social implications, so that, taxation should be seen as a stimulating factor. Through this article, based on a selective research, we analysed how the younger generation perceives Romanian taxation, considering the level of fiscal education and confidence in fiscal institutions.