Search results for "microeconomics"
showing 10 items of 442 documents
Evasion of Tax on Interest Income in a Two-Country Model
2001
t We consider a model where agents can invest money at home and abroad. Their total income comprises interest income from these investments and labor income. Tax on interest income can be evaded — at the risk of being detected and fined. We analyze the optimal portfolio and tax evading decisions of agents with different incomes. In a second step, we scrutinize the optimal government policy. Using different instruments government tries to maximize total tax receipts and to prevent flight of capital as far as possible.
Wage Drift: Phillips Curve vs Bargaining Models
1994
: The purpose of this paper is to shed light on the debate on market- versus bargaining-determined total earnings by examining whether models of wage drift based on wage-bargaining considerations empirically outperform models based on simple ad hoc formulations relating wage drift to excess demand for labour. The task is carried out by investigating the empirical performance of two bargaining models and two Phillips curve models in the context of data on the Finnish metal industry. The results suggest that the former perform better than the latter, thus providing support for the hypothesis that total earnings are bargaining-determined. Furthermore, the results are in line with the view that…
A Methodology for Solving the Multiple Criteria Macroeconomic Policy Problem
1983
In this paper we review the results of our research on using interactive multiple criteria optimization methods for solving macroeconomic policy problems in Finland. An existing econometric model describing the interrelationships between different variables and sectors of the economy is used. In addition, the current status of the implementation work is reported and some possibilities for future research are discussed.
Evaluating European railway deregulation using different approaches
2012
Abstract There has recently been a great deal of interest in the impacts of the deregulating and restructuring measures in the European railway sector. A vast amount of literature is devoted to analyzing the effects of these deregulation and restructuring measures on efficiency and productivity and the results are not totally unambiguous. However, while most of the papers show that the introduction of competition within the sector (in both passenger and freight markets) has had a positive impact in terms of efficiency and productivity, the impact of vertical separation has produced different results in the literature. The contribution of this paper to the existing literature is twofold. Fir…
Efficient Port Pricing: A New Methodology Applied to Spanish Commercial Ports
2000
This paper presents a methodology for determining efficient tariffs for the services provided by commercial ports. With this method, efficient unit profits can be obtained for the services offered and their margins of sensitivity can be found. This allows port authorities to determine what actions should be taken with regard to tariffs and/or variable costs in order to optimise their economic results. At the same time, shadow prices of port resources and their limits of sensitivity can be obtained, thus providing port authorities with orientation regarding which resources should be augmented and by how much. In the early 90's, this methodology was applied to all Spanish commercial ports and…
Disentangling Tax Evasion from Inefficiency in Firms Tax Declaration: An Integrated Approach
2019
In this article we present a new methodology to support fiscal monitoring by the Italian Revenue Agency (IRA) with the aim of improving current taxpayers fiscal compliance and fighting tax evasion within small and medium enterprises. In fact, given the methodology behind the Sector Studies (Studi di Settore - SdS) system, there is room for firms to implement tax evasion strategies by simply adjusting revenues (and costs) toward an estimated average threshold (known ex-ante), the so called "presumptive" revenues, and achieving the fiscal "congruity" status. By estimating a production function through stochastic frontier analysis we avoid estimating the average threshold know ex-ante and can …
Competitive Industry Dynamics with Constant Costs
1998
This paper integrates investment and production decisions in a dynamic model of a competitive industry where producers, facing a technology involving fixed input–output coefficients, employ quantity adjustment rules. Whether complex dynamic price behaviour is consistent with producers breaking-even over time is explored. The proportion of costs which are sunk through investment is shown to have a potentially dramatic impact on the price dynamics. The implications of an alternative hypothesis— that producers ‘normally’ use their avail able capacities and only do otherwise if events are sufficiently dramatic—are explored
Prices in Mixed Cost Allocation Problems
2001
Abstract We consider mixed cost allocation problems, i.e., joint cost problems that involve two types of heterogeneous outputs, divisible and indivisible. The Aumann–Shapley price mechanism is extended to this setting. We also present a set of properties which characterize this cost sharing rule. Journal of Economic Literature Classification numbers: D63, C79.
Interactive vs. non-interactive knowledge production by faculty members
2008
16 pages, 4 tables
Penalties in the Theory of Equilibrium Tax Evasion: Solving King John’s Problem
2010
The authors characterize equilibria of an income reporting game with bounded returns and no commitment where detected tax evaders are charged the maximally feasible amount. Introducing partial commitment to punishment relief eliminates multiplicity of equilibria. The authors identify a unique limit equilibrium where the poorest citizens evade, intermediate citizens are honest, and the richest citizens are indifferent between evading and truth telling. For small tax rates and auditing cost, committing to a discretionary punishment relief scheme increases expected tax revenue.