{"title":"Online Appendix to 'Bunching to Maximize Tax Credits: Evidence from Kinks in the U.S. Tax Schedule'","authors":"Jacob A. Mortenson, Andrew Whitten","doi":"10.2139/ssrn.3420910","DOIUrl":"https://doi.org/10.2139/ssrn.3420910","url":null,"abstract":"Appendix A provides a more exhaustive discussion of the bunching we see in the data. It also shows how our bunching estimates vary under alternative parameter choices and polynomial degrees. Appendix B provides descriptive statistics of our Main Sample. Finally, Appendix C discusses the kinks we study that do not generate meaningful bunching patterns.","PeriodicalId":403078,"journal":{"name":"Public Economics: Fiscal Policies & Behavior of Economic Agents eJournal","volume":"30 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-07-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"114079532","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Diffusion of Gender Norms: Evidence from Stalin's Ethnic Deportations","authors":"Alexandra Jarotschkin, E. Zhuravskaya","doi":"10.2139/ssrn.3417682","DOIUrl":"https://doi.org/10.2139/ssrn.3417682","url":null,"abstract":"\u0000 We study horizontal between-group cultural transmission using Stalin’s ethnic deportations as a historical experiment. Over 2 million Soviet citizens, mostly Germans and Chechens, were forcibly relocated from the western to eastern parts of the USSR during WWII solely based on ethnicity. As a result, the native population of the deportation destinations was exogenously exposed to groups with drastically different gender norms and behavior. We combine historical and contemporary data to document that present-day gender equality in labor force participation, business leadership, and fertility as well as pro-gender-equality attitudes are higher among local native population of deportation destinations with a larger presence of Protestant compared to Muslim deportees. The effects are stronger for culturally closer groups and when adopting deportee norms is less costly. The results cannot be explained by selection, vertical cultural transmission, or deportee impact on the local economy. The evidence strongly suggests that gender norms diffused horizontally from deportees to the local population through imitation and learning.","PeriodicalId":403078,"journal":{"name":"Public Economics: Fiscal Policies & Behavior of Economic Agents eJournal","volume":"22 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"114533993","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Ping Xiao, Ruli Xiao, Yitian Liang, Xinlei Chen, W. Lu
{"title":"The Effects of a Government’s Subsidy Program: Accessibility beyond Affordability","authors":"Ping Xiao, Ruli Xiao, Yitian Liang, Xinlei Chen, W. Lu","doi":"10.2139/ssrn.3368107","DOIUrl":"https://doi.org/10.2139/ssrn.3368107","url":null,"abstract":"Rural consumers may face not only the challenge of affordability but also the problem of limited accessibility. Can a government’s subsidy program effectively address these issues? This paper examines the impact of a large-scale subsidy program, “Household Electrical Appliances Going to the Countryside,” offered by the Chinese government. The government regulation imposes price subsidy combined with price ceiling on products in the program. We consider two effects of the subsidy: lowering the retail price to make the product more affordable to consumers and encouraging manufacturers to expand their distribution coverage to make products more accessible to consumers. We build a dynamic model of oligopoly to study how firms adjust their distribution coverage. Conditional on the model estimates, we evaluate the program’s effects on social welfare, consumer surplus, and firms’ market performance and marketing channel decisions through counterfactual analyses. We find that the subsidy program increases social welfare by CNY¥ 0.209 billion, as a result of a subsidy expense of CNY¥ 0.236 billion. When breaking down the impact, we find it increases consumer surplus by CNY¥ 0.184 billion (50%), manufacturers’ profits by CNY¥ 0.125 billion (53%) and manufacturers’ payoff by CNY¥ 2.5 million (17%). Specifically, 14% (13.2%) of the consumer surplus (firm profit) increase are from changes in distribution coverage, and the rest is from the subsidy (price changes). The program’s return of investment (i.e., social welfare minus subsidy expense), which is negative, however, could be improved by applying a relatively lower subsidy rate.","PeriodicalId":403078,"journal":{"name":"Public Economics: Fiscal Policies & Behavior of Economic Agents eJournal","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-02-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129308364","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The Role of Taxes in the Disconnect between Corporate Performance and Economic Growth","authors":"U. Khan, Suresh Nallareddy, Ethan Rouen","doi":"10.2139/ssrn.2712582","DOIUrl":"https://doi.org/10.2139/ssrn.2712582","url":null,"abstract":"We investigate the relation between corporate performance and overall economic growth in the United States. In particular, we focus on the impact of the U.S. corporate tax regime on this relation. Exploiting time-series variation and a tax shock, we document that the relatively higher corporate income tax rate and the tax treatment of foreign earnings of U.S. corporations have contributed to a disconnect between the performance of the corporate sector and the overall economy. Specifically, the growth of domestic (national) corporate profits, on average, has outpaced the growth of the domestic (national) economy, and this disconnect increases as the difference between the U.S. corporate income tax rate and the average tax rate of the other Organisation for Economic Co-operation and Development countries increases. The underlying mechanism is fewer corporate profits being channeled into subsequent domestic investments when the U.S. tax rate is relatively higher, leading to lower economic growth. Our findings have implications for policy setters. This paper was accepted by Brian Bushee, accounting.","PeriodicalId":403078,"journal":{"name":"Public Economics: Fiscal Policies & Behavior of Economic Agents eJournal","volume":"3 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-02-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123002655","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Is There a Tradeoff between Ethnic Diversity and Redistribution? The Case of Income Assistance in Canada","authors":"W. C. Riddell, D. Green","doi":"10.2307/j.ctvdtpjc7.14","DOIUrl":"https://doi.org/10.2307/j.ctvdtpjc7.14","url":null,"abstract":"Numerous studies conclude that ethnic/cultural/racial diversity has negative impacts on interpersonal trust and support for redistributive social programs. Although some Canadian public opinion data is consistent with this view, whether these impacts on public opinion are important enough to influence policy is unclear. Many scholars argue that Canada is an exception to experience elsewhere. This paper examines this question for the case of Canadian social assistance (welfare) policies - a central component of the social safety net. We exploit two salient features of recent Canadian experience. One is dramatic growth in the ethnic and cultural diversity of Canada's immigrant inflows in recent decades, but the extent of this growth has varied substantially across regions. The second is that welfare policies vary across provinces, and the ability of the provinces to employ different approaches to welfare programs has increased since the mid-1990s. We thus examine whether provinces that became more diverse reduced the generosity of their welfare programs, relative to provinces that experienced little change in the heterogeneity of their populations. We examine impacts of immigration on welfare benefit rates of four family types: single employables, single disabled, lone parents and couples with children. Our main finding is that there is limited evidence of increased immigration on any of these types other than families with children. Even in this case the estimated effects are small. Our study thus supports the view that Canada's experience stands as an example in which greater diversity has not reduced support for redistributive social programs.","PeriodicalId":403078,"journal":{"name":"Public Economics: Fiscal Policies & Behavior of Economic Agents eJournal","volume":"201 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123033227","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
O. Bargain, Holguer Xavier Jara Tamayo, Prudence Kwenda, Miracle Ntuli
{"title":"Learning from the 'Best': The Impact of Tax-Benefit Systems in Africa","authors":"O. Bargain, Holguer Xavier Jara Tamayo, Prudence Kwenda, Miracle Ntuli","doi":"10.35188/unu-wider/2019/636-4","DOIUrl":"https://doi.org/10.35188/unu-wider/2019/636-4","url":null,"abstract":"Redistributive systems in Africa are still in their infancy but are constantly expanding in order to finance increasing public spending. This paper aims at characterizing the redistributive potential of six African countries: Ghana, Zambia, Mozambique, Tanzania, Ethiopia and South Africa. These countries show contrasted situations in terms of income distribution. We assess the role of tax-benefit systems to explain these differences. Using newly developed tax-benefit microsimulations for all six countries, we produce counterfactual simulations whereby the system of the most (least) redistributive country is applied to the population of all other countries. In this way, we can decompose the total country difference in income distribution between the contribution of tax-benefit policies versus the contribution of other factors (market income distributions, demographics, etc.). This analysis contributes to the recent literature on the redistributive role of socio-fiscal policies in developing countries and highlights the role of microsimulation techniques to characterize how different African countries can learn from each other to improve social protection and reduce inequality.","PeriodicalId":403078,"journal":{"name":"Public Economics: Fiscal Policies & Behavior of Economic Agents eJournal","volume":"22 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2018-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129360117","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The Labeling Effect of a Child Benefits System: Evidence from Russia 1994-2015","authors":"L. Grogan","doi":"10.2139/ssrn.3283205","DOIUrl":"https://doi.org/10.2139/ssrn.3283205","url":null,"abstract":"Impacts of child benefits and earned incomes on child wellbeing are identified for Russia. To predict earnings, a counter-factual commodity price model is constructed using information on local industrial composition and the evolution of world prices during 1994-2015 for six key commodity exports. Discontinuity in benefits eligibility at age 16 is exploited to predict the probability of receipt. Child benefits are found not to be spent differently from earned incomes or to influence child health differentially. Benefits do not observably crowd out private transfers to households containing children. Earned incomes and child health appear to be little related.","PeriodicalId":403078,"journal":{"name":"Public Economics: Fiscal Policies & Behavior of Economic Agents eJournal","volume":"90 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2018-11-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"133266562","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Nudging and Phishing: A Theory of Behavioral Welfare Economics","authors":"David Jimenez-Gomez","doi":"10.2139/ssrn.3248503","DOIUrl":"https://doi.org/10.2139/ssrn.3248503","url":null,"abstract":"Nudges, which are interventions that do not restrict choice, have become widespread in policy applications. I develop a general and tractable framework to analyze the welfare implications of nudges. In this framework, individuals suffer from internalities (their utility when choosing is different from their welfare-determining utility) and choice and welfare depend on the environment, which can be altered by the nudge. I show that, in order to design the optimal nudge, no knowledge of environment-independent preferences is required. This means that the social planner does not need to fully recover individual preferences, something which is especially difficult in the presence of internalities. In heterogeneous populations, the optimal nudge trades off correcting the internalities of biased individuals with psychological costs imposed by the nudge on all individuals. When taxes are also available, nudging is generally optimal as long as the government is not fully efficient in collecting revenue from taxation. I also analyze phishing, when firms change the environment to take advantage of consumers’ internalities. Competition does not necessarily reduce phishing and, when firms have incentives to phish, competition can be welfare-decreasing. I analyze nudging and phishing in general equilibrium, and characterize the optimal nudge. In contrast to recent empirical work, which finds that nudging can backfire in general equilibrium because firms raise prices in response to a nudge, I show that under perfect competition nudging is generally welfare-enhancing.","PeriodicalId":403078,"journal":{"name":"Public Economics: Fiscal Policies & Behavior of Economic Agents eJournal","volume":"117 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2018-09-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126694869","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The Human Side of Austerity: Health Spending and Outcomes During the Greek Crisis","authors":"Roberto Perotti","doi":"10.3386/W24909","DOIUrl":"https://doi.org/10.3386/W24909","url":null,"abstract":"\u0000 The Greek crisis was the deepest in postwar Europe. Public spending on health, that had grown extremely fast in the first decade of the 2000s, was cut by almost 40 percent between 2010 and 2016, also un unparalleled figure in post-war Europe. Although some of the cuts were mitigated by a system of clawback on the private pharmaceutical industry and by increased household out of pocket expenditure, the provision of health services was also greatly impacted by the spread of long term unemployment, which in the employment-based Greek system left possibly millions of idnividuals without access to health services, until universal coverage was effectively restored in 2016. In this paper I aim at establishing the basic facts about the health crisis. Although care must be exercised in not presenting a simplistic, uniformly bleak picture, I show that several indicators point to a substantial deterioration in the health outcomes of the Greek population during the critical years of loss of universal coverage until 2016, in particular for the more vulnerable sectors of the population.","PeriodicalId":403078,"journal":{"name":"Public Economics: Fiscal Policies & Behavior of Economic Agents eJournal","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2018-08-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"128271725","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The Effects of the Affordable Care Act on Operating Cost in Nonprofit, Full-Service Hospitals in the District of Columbia (IRS Tax Years 2010-2013)","authors":"Karl Von Batten","doi":"10.2139/ssrn.3249635","DOIUrl":"https://doi.org/10.2139/ssrn.3249635","url":null,"abstract":"The Patient Protection and Affordable Care Act (ACA) was signed into law by President Barack Obama on March 23, 2010. The ACA has two primary goals: expand access to health insurance and reduce healthcare costs. The ACA has been described as one of the most contentious pieces of federal legislation ever enacted by the United States Government. Opponents of the ACA claim that the ACA will put a strain on hospitals and result in increased healthcare cost. Supporters of the ACA argue the opposite is true and suggest that the ACA will reduce operational redundancies and streamline healthcare operational activities, resulting in lower healthcare cost. Hospitals face significant operating expenses in delivering care. A review of the available studies that have been conducted on the effects of the ACA shows that little research is focused on the effect of the ACA on hospital operating cost, especially as it pertains to nonprofit hospitals. The purpose of this research was to ascertain the effect of the ACA on the operating cost of full-service hospitals in the District of Columbia between IRS tax year 2010 and IRS tax year 2013.","PeriodicalId":403078,"journal":{"name":"Public Economics: Fiscal Policies & Behavior of Economic Agents eJournal","volume":"14 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2018-06-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116652354","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}