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In the context of firms' endogenous choice between price and quantity contracts, we show that when firms choose different strategic variables under the destination principle, the government of the quantity-oriented firm imposes a negative commodity tax rate. However, the government of the price-oriented firm imposes a positive commodity tax rate when either (1) the product homogeneity is high enough or (2) the product homogeneity is below a critical level and trade costs are sufficiently low. Under the origin principle, the government of the price-oriented firm provides a higher subsidy than that of the quantity-oriented firm. Regarding the government's decision on the commodity taxation principle, the origin principle may result in Cournot or Bertrand competition, as well as a mixed strategy Cournot–Bertrand competition, as opposed to the destination principle, which only allows for Cournot competition. In the spirit of economic integration, the origin principle dominates the destination principle. [ABSTRACT FROM AUTHOR]

This study examines the effects of the interaction of a size-dependent tax policy that exempts firms whose stated capital is at or below a certain threshold from taxation and financial frictions on firm growth and financing. Our empirical findings can be summarized as follows: First, firms with lower productivity, a positive potential tax benefit, and smaller stated capital are more likely to conduct the cash-out capital reduction to or below the threshold in response to the policy. Second, this capital reduction causes ex-post lower firm growth and fewer debt. Third, such causal effects are observed for firms with less cash flow ratios. These results indicate that the interaction between a size-dependent tax policy and financial constraints deters firm growth. Plain English Summary: The interaction of a size-dependent tax policy that exempts firms whose stated capital is at or below a certain threshold from taxation and financial frictions deters firm growth. We use the introduction of the pro forma standard taxation system in Japan that exempts firms (SMEs), whose stated capital is at or below a threshold, from taxation to empirically examine how firms react to this institutional change and how such a reaction systematically affects their financing and real outcomes. We show that size-dependent tax policies can have a significant effect on firms' growth and financing through financial constraints. It indicates that firms decide whether to obtain an SME status by considering the trade-off between a more severe borrowing constraint and a smaller tax payment. The results obtained in this study indicate that such indirect effects of a size-dependent tax policy on firm dynamics should be considered when designing the policy. Moreover, governments should understand that an institutional change in their tax systems generates a heterogeneous reaction from firms and thus has heterogeneous effects on their dynamics. [ABSTRACT FROM AUTHOR]

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This paper proposes a theory about the allocation of human capital along the development process that helps to understand the controversial impact of this variable in growth regressions. We build a model in which human capital is allocated to three activities: production, tax collection (bureaucracy), and public education. At the first stage of development, countries have low effective tax rates because tax collection requires human capital, which is scarce. As countries accumulate human capital throughout the transition, the effective tax rate rises, diverting human capital from production to bureaucracy and public education. Consequently, at this stage, human capital has a weak impact on production, even when the human capital allocation is efficient. Furthermore, disparities in institutional quality may diminish the correlation between human capital and GDP. [ABSTRACT FROM AUTHOR]

In the area of business law and enterprises, the internationalization of business activities and the transnational choice of legal form is playing an increasingly important role. This is especially true in times of globalization and a common internal market within the European Union (EU). Consequently, companies are increasingly confronted with legal questions of cross-border choice of legal form and transformations. Here, the cross-border change of legal form can offer an alternative to a merger. Compared to mergers, the cross-border change of legal form of corporations within the EU/EEA is easier to carry out and more flexible. This study introduces the concept and the functioning of the cross-border change of legal form, and elaborates its potential and its limitations in comparison to transnational mergers. The cross-border change of legal form offers a new possibility of transnational reorganization. This article provides the theoretical and legal basis and supports the decision-making in transnational conversions, in which cases a cross-border change of legal form and in which cases a transnational merger should be carried out. [ABSTRACT FROM AUTHOR]

This paper studies the optimal design of a pension system together with publicly provided individualized financial education. Agents can invest in both a risky and a non-risky asset and can either under- or over-estimate the expected return of the risky asset. We show that, under perfect information on the misperception biases, it is optimal for the government to impose a uniform level of pension contributions equal to the optimal level of investment in the riskless asset and a U-shaped level of mandatory education. Under asymmetric information, we show that the level of education is always distorted upward for agents with important misperception biases (who either under- or over-estimate financial returns), but can be distorted upward or downward for agents with mild misperception biases. Whether we end up in one or the other situation depends on the size of the public and private costs of education as well as on the shape of the distribution of the misperception biases in the economy. [ABSTRACT FROM AUTHOR]

This paper analyzes how differences in countries' preferences for public goods affect the stability of coalitions. In a three-country framework, we show how heterogeneity in public goods preferences can shape countries' decisions to sign up for capital tax rate harmonization agreements (partial or full). In the context of asymmetric preferences, we identify situations in which these discrepancies make harmonization either cost-effective or harmful. We find that countries with similar preferences have an incentive to commit to capital tax harmonization. However, partial harmonization is only stable if the difference in preferences with the outsider is relatively large. A sufficiently high level of capital supply is also required to limit the effects of tax competition on the outsider. [ABSTRACT FROM AUTHOR]

We examine the effects of taxes on Corporate Social Responsibility (CSR). Employing a tax reform in Korea that imposed a new tax on cash retention, we find that treated firms improved CSR performance after the tax reform was enacted. This result is driven by improvement in environmental and social performance. Moreover, the observed improvement is more pronounced in treated firms that face less severe financial constraints, are afforded fewer investment opportunities, feature large foreign ownership stakes, and employ stronger corporate governance mechanisms. The results suggest that tax increases lead to an increase in CSR investment and the magnitude of the increase depends on firm-level characteristics. As such, our results support the tax-strategic view of CSR in a country that has been a latecomer in incorporating CSR practices into business operations. [ABSTRACT FROM AUTHOR]

This paper provides a mathematical optimization strategy for optimal municipal solid waste management in the context of the COVID-19 epidemic. This strategy integrates two approaches: optimization and machine learning models. First, the optimization model determines the optimal supply chain for the municipal waste management system. Then, machine learning prediction models estimate the required parameters over time, which helps generate future projections for the proposed strategy. The optimization model was coded in the General Algebraic Modeling System, while the prediction model was coded in the Python programming environment. A case study of New York City was addressed to evaluate the proposed strategy, which includes extensive socioeconomic data sets to train the machine learning model. We found the predicted waste collection over time based on the socioeconomic data. The results show trade-offs between the economic (profit) and environmental (waste sent to landfill) objectives for future scenarios, which can be helpful for possible pandemic scenarios in the following years. [ABSTRACT FROM AUTHOR]

It is well known that, for a specific tax, its economic incidence does not depend on which side of the market has the legal obligation to pay the tax. In this paper, we show that, for an ad valorem tax, this legal incidence does matter for the economic incidence. In particular, when a government imposes an ad valorem tax rate on the sale of a commodity, the resulting reduction in the market equilibrium level of sales will be larger when sellers are obliged to pay the tax than when buyers are obliged to pay the tax. [ABSTRACT FROM AUTHOR]

A political business cycle (PBC), with governments adjusting and timing economic policy for electoral gains, has long been hypothesized. A lack of data has so far limited testing of this phenomenon for government policies as opposed to fiscal outcomes such as tax revenue or government deficit, especially at the national level. We use new monthly data on tax reform announcements for a set of 22 democracies, 1988–2014, to test the PBC hypothesis for taxation. In addition to the traditional electoral strategy formulation of the PBC, we also put forward and test a capacity version of the PBC. We find evidence for the capacity version but not the traditional version of the PBC: tax reforms are less likely to be announced before elections and more likely after elections, independently of whether they are increases or decreases. Our evidence suggests that while a PBC exists, it may be less driven by strategic electioneering and more innocuous than previously assumed. [ABSTRACT FROM AUTHOR]

As the severity of global climate change escalates, carbon peak and carbon neutrality have emerged as international imperatives. Green taxation, a crucial fiscal strategy promoting the transition to a green low-carbon economy, demands thorough investigation regarding its efficacy and operational mechanisms. Predominantly, existing research has concentrated on the macroeconomic implications of green taxes, while their influence on regional green growth and innovation remains underexplored. This paper delineates green taxation in both a broad and narrow sense, elucidating its essence and potential in stimulating regional green progress and innovation. Utilizing panel data from 30 provinces in China spanning 2004 to 2021, a bidirectional fixed-effects model was developed for empirical analysis. Moreover, an impact mechanism model was constructed to delve into how green taxation specifically affects regional green development and innovation. Findings reveal that green taxation significantly fosters regional green growth and markedly enhances green innovation. Nonetheless, due to the resource crowding-out effect, it adversely impacts the comprehensive innovation capabilities of regional enterprises. This insight offers a fresh perspective on the paradoxical effects of green taxation, underscoring the necessity for a balanced approach in policy design and implementation. Drawing on these conclusions, the paper presents tailored policy recommendations. [ABSTRACT FROM AUTHOR]

This study examines the relationship between e-commerce development and the intensity of commodity tax competition under two tax principles for goods purchased online: the destination principle and the origin principle. The main findings are as follows: Given that origin-based tax is applied to purchases made in brick-and-mortar stores, (i) tax competition under destination-based taxation on e-commerce is more intense than tax competition under origin-based taxation; and (ii) the expansion of the online market intensifies destination-based tax competition while easing origin-based tax competition. The main factor leading to the results is that replacing the choice of "where to purchase" goods, consumers will have a new choice of "how to purchase" when online purchasing becomes available, and destination-based taxation distorts the latter choice, while origin-based taxation is neutral. [ABSTRACT FROM AUTHOR]

By increasing trust in institutions, public efficiency could be a further key determinant of tax morale. Public efficiency is closely related to the concept of productive public spending, while total public spending also depends on government ideology. In a society where public efficiency and tax morale are high, a virtuous "tax circle" can be triggered since government can increase both tax revenues and productive public spending. Using the Latinobarometer wave (which includes 20,204 interviewees from 18 Latin American countries), the empirical analysis finds that public efficiency would have to increase significantly before its marginal effect on tax morale becomes positive. Hence, the virtuous "tax circle" can trigger in the long term. However, the cross-sectional analysis cannot highlight the potentially significant role of ideological motives, so robustness checks are performed to show that our results are neither driven by such motives nor by the multilevel structure of the dataset or by the sample distribution. [ABSTRACT FROM AUTHOR]

The Financial Accounting Standards Board introduced FIN 48 (ASC 740-10) to increase relevance and comparability in the reporting of uncertain tax positions. The extant literature has found mixed results when examining the effects of FIN 48 using research designs that lack a counterfactual. Using a difference-in-differences design, we examine the effect of FIN 48 on the mapping between GAAP tax expense and future cash taxes paid over the next three years. We find that the mapping for US firms improved under FIN 48, and the improvements are strongest among domestic firms, which are less affected by the inability to offset positions under FIN 48. We find no difference in the change in mapping for firms that expect higher or lower ex ante audit and detection risk. We find no evidence that FIN 48 reduced the mapping for firms with a low likelihood of being audited or for multinational firms. Our results are robust to the use of multiple control groups. Our findings suggest that FIN 48 improved the relevance of tax expense for some US firms. [ABSTRACT FROM AUTHOR]

This study develops an R &D-based growth model with corporate taxation to explore the heterogeneous effects of intellectual property rights (IPR) protection on innovation of firms with different tax rates. Our theoretical analysis shows that strengthening IPR stimulates innovation, and a higher tax rate dampens the positive effect of IPR. To account for the interactive effect between IPR and taxation, we find supportive evidence for the theoretical result using firm-level data in China. Moreover, our empirical analysis shows that strengthening IPR is associated with less innovation by high-tax firms and more innovation by low-tax firms. [ABSTRACT FROM AUTHOR]

This paper assesses the impact of inheritance tax on population growth exploiting the quasi-random differences in the inheritance tax across different Spanish regions over the last 20 years. Using a dynamic difference-in-differences approach to municipality population data, we found a robust-positive short-term effect (1–4 years) on the population growth for small inheritances. The impact is sizable and represents roughly 6% of the standard deviation, but this dissipates after 7 years. The heterogeneity analysis by age group reveals a clear positive and lasting response to the inheritance tax benefits for those aged 50–69 years. This is especially seen in municipalities close to the border pointing to migration costs as a key factor in changes of residence in response to the inheritance tax law differences. [ABSTRACT FROM AUTHOR]

Recent changes in Canadian legislation have enabled First Nations to adopt property taxation and other forms of taxation on reserves, thereby allowing them to directly finance their local governments through local tax revenues. In this paper, we compile data on the passage of First Nations tax laws over a 30-year period from a centralized national database on First Nations by-laws, the First Nations Gazette. We combine those data with additional sources to analyze the factors that are associated with First Nations exercising their taxation authority. We find evidence of geographic policy diffusion consistent with First Nations learning from their neighbors and direct evidence that formal educational and institutional resources are important correlates of tax law adoption. Understanding that process informs the broader literature on the evolution of taxation structures and local political incentives, the analysis may contain important lessons for Indigenous tax jurisdiction in other contexts. It is also a critical first step towards assessing the long-term consequences of First Nations' new fiscal powers. [ABSTRACT FROM AUTHOR]

In the 1990s there was a great deal of interest in the study of the role of endogenous market structure under oligopoly in the characterization of emission taxes. This interest was instrumental in providing policy guidance on the design of emission taxes based on market characteristics. However, the literature has been silent on offering policy recommendations on the design of emission taxes under endogenous market structure in the presence of new firm acquisitions. We build a model where new firms enter the market where some are acquired by an incumbent multi-plant firm, altering the initial market structure. In this framework, we characterize the second-best emission tax and examine the role of the resulting market structure, in particular the role of acquiring more/fewer of the new firms, in the optimal design of emission tax. We argue that, under certain conditions, the acquisition of new firms may lead to higher taxation consistent with the Pigouvian rule or even exceed marginal damages. Our contribution is at the intersection of emission tax design and M &A (new firm acquisition) literature. [ABSTRACT FROM AUTHOR]

We analyse a model of environmental regulation where two firms can optimally decide to invest in an emission abatement technology and the regulator taxes firms' emissions in a time-consistent manner. Depending on the values of the parameters measuring the extent of emission abatement that firms may achieve and the degree of product differentiation, we characterize the subgame perfect equilibria, developing all admissible scenarios where either both firms invest in abatement technologies, none of them do, or just one does, and show the conditions under which a win-win solution emerges, validating a strong form of Porter hypothesis. We also extend the main result to the oligopoly game with a generic number of firms. [ABSTRACT FROM AUTHOR]

Introduction: Cancer diagnosis influences the choices that patients make regarding current and future labor market activity. These choices have implications for governments based on resulting changes in taxes paid and benefits received. In this analysis we explore how human growth receptor 2 (HER2)-positive residual invasive breast cancer and different treatments influence government accounts excluding health costs. Methods: HER2-positive early breast cancer (eBC) health states from a published disease model were used to establish likelihood of working and wage impact at different stages of disease. The indirect productivity losses for an average woman aged 49 years were translated into fiscal consequences to government by applying an established government perspective-modeling framework. The fiscal projections (discounted) include gross tax revenue by disease stage, government transfer costs related to time off work and early retirement ,and net fiscal balance (e.g., gross taxes—transfers) in three countries Canada, Portugal, and Brazil. Results: The net fiscal balance in Canada for a healthy woman was C$109,551 compared with a HER2-positive eBC woman treated with trastuzumab emtansine (C$69,767) or trastuzumab (C$62,971). A similar pattern was observed in the three countries but reflecting the overall tax burden in each country, labor force activity, and available public benefits. Age at diagnosis was an important determinant of the likely net fiscal balance, as this influences the remaining working years. Discussion: Women diagnosed with HER2-positive eBC were estimated to pay less lifetime gross taxes and receive more in sickness benefits compared with healthy women. Treatments that improve outcomes are likely to offer fiscal gains for government from improved work force participation. [ABSTRACT FROM AUTHOR]

Several governance regulations have been adopted in European countries to promote environmental sustainability, such as environmental taxation and environmental disclosures in financial reports. In this context, this paper examines the linkage between environmental taxation, International Financial Reporting Standards (IFRS), and environmental sustainability in European countries from 1994 to 2018. Unlike earlier empirical studies, the present work is the first to assess the impact of environmental taxation and IFRS adoption on consumption-based carbon emissions. In order to yield valid and reliable outcomes, the modern econometric method that is vigorous to cross-sectional dependence and slope heterogeneity was employed. Likewise, the study uses the novel method of moment quantile regressions (MMQR). The MMQR outcomes illustrated that environmental taxation significantly negatively affects consumption-based emissions in European countries, indicating that environmental taxation has a positive effect on the ecological sustainability. Besides, the findings show that IFRS negatively affects consumption-based emissions, while economic growth positively affects the level of consumption-based emissions. Therefore, European governments must use fiscal and financial policies to mitigate ecological pollution. Moreover, more environmental, social, and governance (ESG) disclosure in European industries could also help promote environmental sustainability in European countries. [ABSTRACT FROM AUTHOR]

Housing taxation is considered the most obvious tax system inequity. Therefore, this type of taxation should be in line with the benefit principle. This article examines the attitudes of citizens towards residential building taxation in the Czech Republic. The aim of this paper is to evaluate the perception of residential building tax burden by taxpayers who own a house or apartment for housing based on primary research. The research was conducted in the Czech Republic using a questionnaire in 2021 and 2022. Differences in the tax burden perception in relation to improvements in quality of life in a municipality and use of compensation by providing financial benefit in favor of resident citizens are investigated in the context of municipality size. It was found that the majority of respondents in all municipality size categories perceived the tax burden as reasonable. Citizens' positive attitudes towards the taxation of their residential buildings were influenced not only by the quality-of-life improvement in the municipality, but also by the transparency of the municipality's financial management. By compensating for the tax on residential buildings through providing a financial benefit, some municipalities reduced the tax burden for their resident citizens and shifted the tax burden, within the limits of the law, to buildings for business and recreation. The most common forms of financial benefits included reducing or eliminating municipal waste fees. [ABSTRACT FROM AUTHOR]

The promotion of inclusive green growth is one of the most debated topics in international forums and is considered a major concern by all countries in the world. Although the existing literature has examined several determinants of inclusive green growth, the impact of environmental taxation on inclusive green growth is relatively little explored. This study is therefore the first attempt to examine the impact of the environmental tax on inclusive green growth for developing countries from 2000 to 2021. To do this, we apply the system generalised method of moments (GMM) that controls unobserved heterogeneity, heteroskedasticity, simultaneity, reverse causality and endogeneity. The empirical results show that environmental tax promotes inclusive green growth. In addition, our results indicate that the control of corruption, government efficiency, the quality of regulation and the rule of law interact with the environmental tax to promote inclusive green growth. Furthermore, this study reveals interestingly that the environmental tax has a positive impact on the two components of inclusive growth and green growth, but the institutional factors that accentuate the impact of the environmental tax are somewhat nuanced. The results of the study have important policy implications for decision-makers in developing countries in promoting inclusive and environmentally friendly growth. [ABSTRACT FROM AUTHOR]

This paper examines the endogenous choice of unit and ad valorem taxes in a model of tax competition with unemployment. Governments maximize objective functions that are a weighted sum of regional welfare and revenue. In the tax competition model, a high fixed wage rate generates unemployment and employment externalities. This effect can be either positive or negative because of freely mobile capital among regions. Without unemployment, revenue-maximizing governments choose unit taxes as their tax instrument to avoid revenue losses from intense tax competition under ad valorem taxes. However, with unemployment, positive employment externalities generate additional benefits for using ad valorem taxes to stimulate employment. Therefore, the present study shows that one region chooses an ad valorem tax, whereas the other chooses a unit tax, or that both governments use ad valorem taxes depending on employment externalities. [ABSTRACT FROM AUTHOR]

In this paper, we analyse a sample of voluntarily published country-by-country reports (CbCRs) of 35 multinational enterprises (MNEs). We assess the value added and the limitations of qualitative and quantitative information provided in the reports based on a comparison to individual MNEs' annual financial reports and aggregate CbCR data provided by the OECD. In terms of data quality, we find that the inclusion of intra-company dividends and equity-accounted profits are a minor concern on average but that for individual MNEs corrections might be substantial. Our sample MNEs seem to pay higher effective tax rates than the global average and many of them report relatively little profit in tax havens. We only find a very weak correlation of the location of profits and effective tax rates. This might indicate that more tax transparent MNEs avoid taxes less aggressively. However, our assessment of different tax risk indicators reveals important variations between companies. [ABSTRACT FROM AUTHOR]

Married couples can face a higher or lower tax burden than cohabitating couples with the same income when the former are taxed as one unit. I study the effect of such joint income taxation on the marriage rate in Switzerland, where tax differentials between married and cohabitating couples vary considerably across cantons. For this purpose, I construct a dataset containing sociodemographic and -economic variables on every individual living in Switzerland and use household-level information to identify cohabitating couples. Using a simulated instrumental variable approach, I find a negative impact of joint income taxation on the marriage rate for couples married between 2012 and 2019. The effect is driven by households without children and from the lower end of the income distribution. [ABSTRACT FROM AUTHOR]

The U.S. tax system applies to its citizens' worldwide incomes and estates, whether those citizens live in the U.S. or abroad. Fully escaping the U.S. tax system requires renouncing U.S. citizenship, and in recent years a growing number have done so. Using administrative tax microdata, I provide new descriptive information about the population of individuals who have renounced U.S. citizenship. The typical renouncer had long lived abroad, was slightly wealthier than the typical American, and reported no or little net U.S. tax liability prior to their renunciation. Combined with information on the foreign jurisdictions where renouncers reside, the evidence suggests that most recent renunciations are a result of increasing compliance costs of maintaining U.S. citizenship while living abroad, and not a response to U.S. tax liability. [ABSTRACT FROM AUTHOR]

We propose a heterogeneous agent model including the fundamentalists, chartists, and carry traders, to describe the dynamics of exchange rates, and examine the effects of Tobin Tax on the equilibrium exchange rates. A theoretical analysis shows that an increase of Tobin tax always reduces the trading volume, and its impact on the equilibrium exchange rate depends on the agents' expectations of exchange rate movements and their weights in the markets. Our simulation exercise shows that an increase in Tobin tax may lead to an increase in volatility and price distortion and a decrease in the kurtosis and the trading volume. Our results suggest that the Tobin tax could be an emergency measure, but not a long-term policy tool to suppress speculation. [ABSTRACT FROM AUTHOR]

The rapid spread of freelancing as a form of employment requires the development of an optimal system of taxation of the self-employed population. When dealing with new types of commercial activities and the income received as a result of the implementation of such activities, the legislation often does not have time to adapt to new rapidly developing business areas. Moreover, legislative regulation often hinders the development of such areas and creates a lot of inconvenience for the subjects of their activities. This paper examines the level of satisfaction of freelancers with the new system of taxation and the tax rate for the self-employed workers in the Russian Federation. The issue is considered against the background of corresponding foreign practices. The research shows that most of the freelancers surveyed believe that the current tax rate is too high. Latter was introduced in 2021, under the special tax regime for the self-employed people. In order to avoid potential tax evasion, it is recommended to review the current approach to taxation and possibly reduce professional income tax. Also, one of the recommendations is to conduct regular tax audits, since the new taxation system for freelancers significantly reduces income tax, and unscrupulous entrepreneurs can take advantage of this by entering into a civil law contract with employees and losing the status of an employer. [ABSTRACT FROM AUTHOR]

A revenue maximizing local government must obey a migration constraint when levying taxes. Using this insight, I develop a simple theory of taxation that suggests natural amenities are a key factor influencing local tax rates. Natural amenities confer rents to residents which governments and interest groups compete to extract. Revenue maximizing local tax rates are increasing in the level of natural amenities, increasing in moving costs, and decreasing in households' reservation utility. Using data on natural amenities and taxation for US counties, I find that local tax rates are in-fact increasing the level of natural amenities. Finally, I suggest an alternative interpretation of the "tax revolts" of the late 1970s. Rather than an attempt to constrain Leviathan, local property tax reform (such as California's Proposition 13) and restrictions on housing supply are the outcome of competition over amenity rents in which property owners successfully capture a monopoly position at the expense of other social groups including renters and local government. [ABSTRACT FROM AUTHOR]

The global burden of type 2 diabetes is increasing at an alarming rate, fuelled by the obesity epidemic, with significant associated health and economic consequences and apparent inequalities. Sugar-sweetened beverages (SSBs) are a major source of added sugars in diets worldwide and have been linked to an increased risk of type 2 diabetes through a variety of mechanisms, including excess weight. Taxing SSBs has become a promising public health strategy to reduce consumption and mitigate the burden of type 2 diabetes. A substantial body of evidence suggests that SSB taxes lead to increased prices and subsequent reduced consumption, with a potentially greater effect among lower socioeconomic groups. This highlights the potential for tax policies to have an impact on type 2 diabetes and address health inequalities. Evidence from several ongoing SSB tax schemes, including sales and excise taxes, indicates positive effects on improving consumption patterns, and modelling studies point to health gains by averting type 2 diabetes and other cardiometabolic diseases. In contrast, evidence from empirical evaluation of the impact of SSB tax is scarce. Continued monitoring and the strengthening of evaluation research to develop context-tailored policies are required. In addition, there is a need to implement complementary efforts to amplify the impact of SSB taxation and effectively address the global burden of type 2 diabetes. [ABSTRACT FROM AUTHOR]

Electronic forms, such as order entry or tax declarations, frequently serve as the primary point of contact between users and information systems. Given their significance, it's crucial that these forms are intuitive and not burdensome for users to complete. One key aspect influencing the intuitiveness of forms is the sequence in which individual fields must be filled. This article reports on an empirical study involving 162 participants, which explored the intuitiveness of user forms across diverse scenarios. The study had two main objectives. Firstly, it sought to understand how users perceive different sequences of form fields in terms of intuitiveness. Secondly, it investigated the possibility of an intuitive sequence for form fields. The study found significant differences in intuitiveness among various ways of organizing form field sequences. Furthermore, it revealed a common understanding among users about the (sub-)sequence in which form fields should be arranged, notably that fields requiring file uploads should be located at the end of the form. The findings of this study provide valuable insights for developing more intuitive user forms in process-aware information systems, thereby enhancing the overall user-friendliness of such systems. [ABSTRACT FROM AUTHOR]

Aim: Racial disparities in COVID-19 death rates have largely been driven by structural racism in health, housing, and labor systems that place Black, Brown, and Indigenous populations at greater risk for COVID-19 exposure, transmission, and severe illness, compared to non-Hispanic White populations. Here we examine the association between taxable property values per capita, an indicator influenced by historical and contemporary housing policies that have disproportionately impacted people of color, and COVID-19 deaths. Methods: Taxable values serve as a proxy for fiscal health providing insight on the county's ability to address imminent needs, including COVID-19 responses. Therefore, higher taxable values indicate local governments that are better equipped to deliver these public services. We used county-level data from the American Community Survey, the Michigan Community Financial Dashboard, The Atlantic's COVID Tracking Project, and the Community Health Rankings and Roadmap for this cross-sectional study. Maps were created to examine the geographic distribution of cumulative death rates and taxable values per capita, and regression models were used to examine the association between the two while controlling for population density, age, education, race, income, obesity, diabetes, and smoking rates. Results: Seventy-five counties were included. The mean taxable value per capita was $43,764.50 and the mean cumulative death rate was 171.86. Findings from the regression analysis showed that counties with higher taxable values were associated with lower COVID-19 death rates (B = –2.45, P < 0.001) Conclusion: Our findings reveal a need to reevaluate current policies surrounding taxable property values in the state of Michigan, not solely for their inequitable impact on local governments' financial solvency and service quality, but also for their negative consequences for population health and racial health equity. [ABSTRACT FROM AUTHOR]

The idea that the problem of transfer price manipulation vanishes under global adoption of destination-based cash-flow taxation (DBCFT) is based on how firms behave in perfectly competitive or monopolistic markets. We show that the neutralizing effect DBCFT has on transfer price incentives can fail once multinational firms are multi-market oligopolists. Under imperfect competition, a multinational will delegate output decisions to its affiliates so that its transfer price can have a strategic role through its influence on competitors' actions. Even if all countries adopt DBCFT, transfer prices will not equal arm's length prices, and they will vary with changes in corporate tax rates. [ABSTRACT FROM AUTHOR]

We investigate the productivity spillovers from the UK government's decision to use extensive property tax reductions as a key instrument to stimulate innovation in smaller businesses and drive local growth. To capture the complex interaction and clustering of hierarchical effects, we apply non-parametric Random Effects Expectation Maximisation algorithm that complements more standard econometric estimators, namely matching to control for endogeneity and control functions to estimate total factor productivity. These approaches enabled us to incorporate various contextual configurations in comparing the recipients of these reductions to non-recipients with regard to productivity, in which the UK has experienced a considerably worse performance than its peers since the great recession. Contrary to policy assumptions and business community expectations, we show that generic tax reductions, when significant, are mostly associated with lower productivity and thus have been unsuitably chosen as a policy mechanism to stimulate productivity growth. We further show how instruments that are not built for causality could be beneficial for policy evaluation. Plain English Summary: Reductions in small business property tax will not solve UK productivity problem. We investigate the productivity spillovers from the UK government's decision to use extensive property tax reductions as a key instrument to stimulate innovation in smaller businesses and drive local growth. We incorporate various contextual interactions in comparing the recipients of these reductions to non-recipients with regard to productivity, in which the UK has experienced a considerably worse performance than its peers since the great recession. Contrary to policy assumptions and business community expectations, we show that generic tax reductions, when significant, are mostly associated with lower productivity and thus have been unsuitably chosen as a policy mechanism to stimulate productivity growth. Thus, the principal implication of this study is that instead of generic tax incentives based on building and land value, policy should be more nuanced and targeted, enabling the inclusion of finer-grained characteristics. We also contribute to methodology development by showing how configuration approaches, centring on non-linearity and equifinality, could be enabled through the application of machine learning to study organisations. [ABSTRACT FROM AUTHOR]

This article studies the semantic scope of the yet undeciphered Indus script inscriptions, which are mostly found on tiny seals, sealings, and tablets. Building on previous structural analyses, which reveal that Indus script was semasiographic and/or logographic in nature, this study analyses the combinatorial patterns of Indus script signs, and the geographical distribution of the inscriptions, to establish that the inscriptions did not encode any proper noun, such as anthroponyms, toponyms, or names of specific organizations. Analyzing various archaeological contexts of the inscribed objects—e.g., seals found concentrated near city gates (e.g., Harappa), craft workshops (e.g., Chanhu-daro), and public buildings (e.g., Mohenjo-daro), often along with standardized Indus weights that were used for taxation; sealings attached to various storage containers and locking systems of "warehouse" chambers as indicated by their reverse-side impressions (e.g., the sealings of Lothal "warehouse"); inscribed sealing-pendants of Kanmer, conjectured to be passports/gate-passes by archaeologists; and seals with identical inscriptions often found from distant settlements—this study claims that the inscribed stamp-seals were primarily used for enforcing certain rules involving taxation, trade/craft control, commodity control and access control. Considering typological and functional differences between the seals and tablets, and analyzing certain numerical and metrological notations (, , ,) typically found at the reverse sides of many two-sided tablets whose obverse sides contain seal-like inscriptions, this study argues that such tablets were possibly trade/craft/commodity-specific licenses issued to tax-collectors, traders, and artisans. These reverse-side tablet inscriptions possibly encoded certain standardized license fees for certain fixed license slabs, whereas their obverse-side inscriptions specified the commercial activities licensed to the tablet-bearers. These seals/tablets were possibly issued by certain guilds of merchants/artisans, and/or region-based rulers or governing bodies, who collaborated in the integration phase of IVC, to standardize certain taxation rules and trade/craft regulations across settlements. The seal/tablet iconographies might have been the emblems of the guilds, rulers, and/or governing bodies. [ABSTRACT FROM AUTHOR]

Based on the special background of transition economies, in which governments play a particularly important role in firms' survival and development, we discuss the impact of performance shortfall on firms' tax avoidance, which is a behavior that is considered unethical and irresponsible by the public. Drawing upon performance feedback theory and institutional theory, we propose that performance shortfall will drive firms to reduce tax avoidance to enhance their political legitimacy, thereby gaining more government support to solve current performance problems. We also argue that the relationship between performance shortfall and firms' tax avoidance is likely nuanced and may vary by institutional logics (e.g., state-owned enterprises (SOEs)), and regional marketization degree). Specifically, we argue that SOEs will strengthen the above-mentioned relationship, and the regional marketization degree will weaken the above-mentioned relationship. After testing listed companies in China as the research object, we find that most of our theoretical views are supported by empirical evidence. [ABSTRACT FROM AUTHOR]

This study provides evidence for the USA that the secular decline in the labor share is not only explained by technical change or globalization, but also by the dynamics of factor taxation, automation capital (robots), and population growth. First, we empirically find indications of co-integration for the period from the last quarter of the 20th to the first decade of the twenty-first century. Permanent effects on factor shares emanate from relative factor taxation. The latter also have a lasting effect on the use of robots. Variance decompositions reveal that taxing contributes to changes in the two income shares and in automation capital. Second, we analyze and calibrate a neoclassical growth model extended to include factor taxation, automation capital, and capital adjustment costs. Labor and automation capital are perfect substitutes, whereas labor and traditional capital are complements. The model replicates the dynamics of the observed functional income distribution in the USA during the 1965–2015 period. Counterfactual experiments suggest that the fall in the labor share would have been significantly smaller if labor and capital income tax rates had remained at their respective level of the 1960s. [ABSTRACT FROM AUTHOR]

We analyze the incentives for an individual country to deviate from destination-based cash flow taxation (DBCFT) in a two-country model in which both countries have adopted DBCFT. A change in a country's corporate tax rate, degree of taxation of capital income, and/or level of border adjustment generates welfare effects through fiscal effects, a price level effect, and relative price effects. We establish that at least one country will have an incentive to deviate from universal DBCFT by reducing the deduction for capital investments, even with asymmetric countries. For a deviation involving a reduction in border adjustments, we show that both countries will have an incentive to deviate in the symmetric case. Universal DBCFT will not be incentive compatible in a one-shot tax setting game, so commitment mechanisms will be required to sustain it as an equilibrium. [ABSTRACT FROM AUTHOR]

Excise taxes are one of the primary tools used to discourage consumption of socially undesirable or unhealthy products. When considering implementation of such taxes, the current policy and academic discussions have focused on potential outcomes due to price changes. In this paper, we document that price changes are only the immediate response to tax policy changes, and in the long run, tax changes can impact product offerings. Using exogenous changes in tax rates from multiple empirical contexts: (1) the Korean soju market and (2) the US cigarette market, we show that a tax increase is followed by a significant drop in number and variety of product offerings. In addition, the change in product assortments post-tax hinges critically on the nature of tax imposed. We find that specific taxes, as opposed to ad valorem taxes, lead to the exit of products with larger pack size. We conduct a simulation experiment and estimate that studies which do not consider assortment changes can result in a 9% upward bias in consumer welfare for large tax increases. Our findings have important policy implications for research examining the impact of taxes on market outcomes. [ABSTRACT FROM AUTHOR]

In their seminal paper, Kakwani and Lambert (Eur J Polit Econ 14:369–380, 1998) state three Axioms an equitable tax system should respect. By proposing a measurement system based on re-ranking indexes of taxes, tax rates and post-tax incomes, they show how to evaluate the negative influences that Axiom violations exert on the redistributive effect of a tax. By considering each element of a real-world personal income tax, i.e. deductions and tax credits as well as statutory tax rates, in this study we take a theoretical step further by decomposing the magnitude of the three Axiom violations produced by all these tax elements. We propose two complementary strategies. The first one is a 'stepwise' decomposition computing the effect of each element of the tax on the redistributive effect when they are sequentially applied; the second strategy is an 'overall and simultaneous' decomposition always evaluating the effect of small changes in deductions, tax rates and tax credits with respect to the pre-tax income distribution, once all the three tax instruments have been simultaneously applied. These strategies can be more suitable and effective in measuring the loss of the redistributive effect produced by each tax element because of axiom violations. We also show that they can give different information on the existing inequities of the tax. We finally emphasize the goodness of our approach by applying it to a real world personal income tax. [ABSTRACT FROM AUTHOR]

Promoting green low-carbon development is an important task in the construction of ecological civilization of China. The leadership has proclaimed green low-carbon development as the top national priority for development. Green low-carbon economy has become the high point of global industrial competition. Green taxation, as a tool for environmental regulation, plays an important role in the construction of ecological civilization. Therefore, this paper investigates the impact of green taxation on green low-carbon development in the Yangtze River Delta (YRD) region of China, using data of 41 cities from 2011 to 2021 in the YRD region. We construct a green low-carbon development index with the combined weight CRITIC-entropy method, and employ a mediating effect model and a spatial Durbin model based on double fixed effects in this study, which intends to provide a theoretical basis for the establishment of a sound tax policy system that is conducive to the green low-carbon development. The results show that (1) there is an evident spatial dependence of green low-carbon development in the YRD region; (2) green taxation has a significant positive effect on green low-carbon development through rationalization of industrial structure and advance of industrial structure; and (3) the positive impact of green taxation on green low-carbon development in the region is characterized by spatial spillover and heterogeneity. Specifically, green taxation significantly promotes green low-carbon development in the core area, but such green taxation dividend has yet to be realized in the expansion area. [ABSTRACT FROM AUTHOR]

This paper analyzes the extent to which ideological differences between citizens and their governments, in conjunction with the observed size of the public sector, influence taxpayers' intrinsic motivations to pay taxes. We utilize data from the World Values Survey and the European Values Study, encompassing 23 OECD economies from 1995 to 2018. Our findings indicate that the tax morale of citizens who hold right-wing ideological views in relation to their government significantly decreases when the public sector surpasses the OECD average. Conversely, citizens who hold left-wing ideological views in relation to their government exhibit a higher intrinsic motivation to pay taxes, particularly when the public sector is considered undersized. [ABSTRACT FROM AUTHOR]

We develop a framework for analysing the loss of social welfare due to taxation, where tax progressivity and regressivity, measured by the Kakwani index, are given interpretation in terms of welfare gain and loss, respectively. Our framework generalises the framework of Kakwani and Son (J Econ Inequal 19:185–212, 2021), by taking account of the intermediate inequality views, a continuum of combinations of the relative view (equal relative change of all incomes does not change inequality) and the absolute view (equal absolute change of all incomes does not change inequality). The welfare loss of taxation is decomposed into three components, one being a generalised Kakwani index, which accommodates the intermediate inequality views. We show that for a progressive (regressive) tax, moving closer to the relative view reduces (increases) the importance of progressivity (regressivity) for the welfare impact of the tax. The perception of the importance of progressivity and regressivity is thus affected by the inequality view taken. The empirical application considers the welfare loss of taxation in Croatia. [ABSTRACT FROM AUTHOR]

This paper provides a new explanation for the choice of commodity tax principle when introducing network externalities into the intra-industry trade model. First, regardless of the destination or origin principle, when the network externalities are strong (weak), the optimal commodity tax rate in the presence of network externality is positive (negative) and higher (lower) than that without network externality. Second, the interplay between network externalities and trade costs affects the difference in commodity tax rates, influencing the differences in firms' profits, consumer surplus, tax revenues, and social welfare. Third, if the origin principle's commodity tax rate is higher (lower) than the destination principle's, the origin principle's social welfare level is lower (higher) than the destination principle's. [ABSTRACT FROM AUTHOR]

Sports betting is growing rapidly in the US after its legalization by the Supreme Court in 2018. This paper describes the treatment of gambling winnings and losses in the federal tax code and shows how the system may incentivize some gamblers to substantially increase the scale of their betting in order to have a chance to win. This incentive stems from the fact that gambling losses can only be deducted if taxpayers are filing for itemized deductions, meaning the scale of gambling losses has to be large enough to push a taxpayer's eligible deductions over the standard deduction. This incentive to engage in large-scale betting applies mostly to lower and middle-income households. [ABSTRACT FROM AUTHOR]

This paper explores the effects of fiscal capacity on the rule of law. We view the question as a natural outgrowth of the stationary bandit model, that rulers are incentivized to make investments in public goods when they are able to extract wealth effectively. We test the relationship using fiscal capacity and rule of law data from the Varieties of Democracy dataset. We leverage the lengthy time-series found in the dataset by employing the dynamic common correlated effects (DCCE) estimator to supplement standard panel methods. Unlike the widely used fixed effects method, DCCE method adjusts for the presence of econometric issues including cross-sectional dependence, heterogeneous slopes, and unobservable common factors that plague the error-structure in panel data. We observe small, positive effects of fiscal capacity on the rule of law, but robustness checks lead us to conclude that our findings, overall, only weakly support the hypothesis. [ABSTRACT FROM AUTHOR]

We analyze nearly 3,300 submissions to International Tax and Public Finance from 2010–2020 to identify trends in authorship, content, and the overall performance of the journal. Doing so reveals several things. First, in terms of authorship and data sources, there is a clear predominance of OECD countries, especially the US and Europe. These locations particularly dominate publications; while non-OECD authors are on 40% of submissions, they only make up 24% of publications. Second, 90% of submissions have a male coauthor. There is not, however, any significant correlation between author gender and the acceptance rate. Third, issues of tax evasion have become ever more prominent in both submissions and publications. Finally, there is a shift in research towards empirical analysis, especially that using disaggregated data. [ABSTRACT FROM AUTHOR]

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]