on unemployment inflow and outflow in urban china wu z and yao s 2006 on unemployment inflow and outflow in urban china regional studies 40 811 822 as the largest transitional economy in the world china s labour market has a number of characteristics distinctively different from that of the developed economies such as the uk or the usa this paper aims to identify the determinants of unemployment inflow and outflow in urban china with empirical data for 29 provinces over 1989 99 it is found that rural urban migration ownership diversification industrial structural change international trade international competitiveness product wages and age structure are key determinants of unemployment flows the results suggest that due to market imperfections unemployment inflow and outflow are two asymmetric processes with respect to the concerned predetermined variables wu z et yao s 2006 sur l afflux et la fuite du chomage dans la chine urbaine regional studies 40 811 822 en tant que l economie en voie de transition la plus grande du monde

institutional determinants of labor reallocation in transition the transition process differed in the countries of the former soviet union fsu and those of central and eastern europe cee in terms of reallocation of labor real wage employment and output adjustment we sift through the theoretical and empirical literature to find an explanation for these diverging adjustment trajectories and conclude that they can be explained by the fact that the cee countries adopted social policies that upheld wages at the bottom of the distribution forcing the old sector to restructure or collapse while the fsu countries allowed wages to free fall not forcing the hand of the old sector

are consumption taxes really better than income taxes abstract we use political equilibrium theory and the neoclassical growth model to compare consumption and income tax systems if government outlays are used for redistribution through transfers then steady state equilibria in societies that use income taxes are not necessarily worse in welfare terms and may even be better income taxes are attractive precisely because they are more distortionary since this implies low equilibrium transfer levels we also find that switching tax systems typically does not benefit the median voter moreover a change from income to consumption taxes may make everybody worse off

supply side interventions and redistribution we evaluate the eect on welfare of shifting the burden of capi tal income taxes to labor taxes in a dynamic equilibrium model with heterogeneous agents and constant tax rates we calibrate and simu late the economy we nd that lowering capital taxes has two eects i it increases e ciency in terms of aggregate production and ii it redistributes wealth in favor of those agents with a low wage wealth ratio when the parameters of the model are calibrated to match the distribution of income in terms of the wage wealth ratio the redis tributive eect dominates and agents with a high wage wealth ratio would experience a large loss in utility if capital income taxes were eliminated

the economic integration of post wall germany it would be hard to devise a better controlled experiment for comparing different economic systems than the experience provided by east germany and west germany two nations that formerly were one occupied by people of the same background the same culture and the same genetic inheritance torn apart by the accident of war on one side of the berlin wall is a relatively free economic system on the other side a collectivist society milton friedman in w breit and r w spencer 1986 p 89

capital taxation and accumulation in a life cycle growth model almost all of the serious economic work on savings decisions within the past decade has relied on some variant of the life cycle hypothesis in which savings arise out of individual choices of an optimum lifetime consumption path this paper reexamines the incidence and welfare consequences of capital income taxes within a realistic life cycle model the results suggest that the elimination of capital income taxation would have very substantial economic effects for example a complete shift to consumption taxation might raise steady state output by as much as 18 percent and consumption by 16 percent the long run welfare gain from such a shift would for plausible parameter values exceed 150 billion annually stated somewhat differently shifting to consumption taxation would raise the lifetime utility of the representative consumer by the equivalent of about six years income in the new steady state these estimates dwarf estimates of the static welfare cost of taxation and significantly exceed even extreme previous estimates of the dynamic loss this study departs from earlier analyses of the effects of taxes on capital income in several respects probably the most important difference between this treatment and most preceding ones lies in the assumptions about the interest elasticity of saving it is shown below that the common two period formulation of saving decisions yields quite misleading results a more realistic model of life cycle savings demonstrates that for a wide variety of plausible parameter values savings are very interest elastic this implies that shifting away from capital income taxation would significantly increase capital formation making possible long run increases in consumption many studies of the welfare effects of capital income taxation have ignored the general equilibrium effects of increased capital formation in an economy with life cycle savings there is no presumption that the undistorted growth path corresponds to any sort of social optimum as peter diamond has shown life cycle savings can lead to a steady state capital intensity either greater or less than the golden rule level more generally it is clear that there is no reason to believe that a life cycle economy will maximize any particular intertemporal social welfare function a fundamental tenet of welfare evaluation is that preexisting distortions must be considered in evaluating the consequences of tax changes the results presented in this paper take explicit account of the nonoptimal character of the no tax steady state this explains in large part why such a sizeable welfare effect of capital taxes is found in an economy far from the golden rule level of capital intensity there are substantial gains in steady state consumption achievable through increased capital formation section i of the paper examines the aggregate savings function in a continuous time life cycle framework the second section clarifies the differences between wage and consumption taxes an aggregate production function is added to complete the model in the third section the effects of changes in capital taxes on both steady state incidence and welfare are considered within a general equilibrium framework the final section of the paper discusses some implications of the results and suggests areas which appear to warrant further study assistant professor of economics massachusetts institute of technology and research analyst national bureau of economic research i am grateful to alan auerbach martin feldstein laurence kotlikoff to the participants in the nber workshop on business taxation and to the harvard public finance seminar for useful discussions james poterba and james buchal performed the numerical calculations

international effects of tax reforms in an open economy with international capital flows there is an equivalence relation between income tax consumption tax international borrowing tax and an external interest earning tax this paper analyzes tax reform involving shifts between income and consumption taxes in this setting it is shown that the real effects of such revenue neutral tax reform depend critically on the country s current account position and the nature of the reform in particular whether the world interest rate rises or falls as a consequence of a budget deficit depends on the tax system in force the analysis provides a clear rationale for the international coordination of tax policies copyright 1989 by royal economic society

time preference and international lending and borrowing in an overlapping generations model two economies represented by diamond type overlapping generations models and differing only in their pure rates of time preference are joined together capital formation balance of payments behavior and welfare are compared under autarky and openness with a positive natural rate of growth the low time preference country runs a current account surplus in the steady state but not necessarily outside it if preexisting capital is not shiftable between countries integration in the world economy makes the high time preference country worse off in the short run the ranking of stationary utility levels under autarky and openness is ambiguous

taxation and excess burden a life cycle perspective a lifetime perspective is appropriate in assessing the welfare implications of government tax policies although a number of attempts have been made to ex amine the excess burden of taxation in life cycle models these have tended to ignore the role of human capital accumulation and or the leisure income choice in this paper we do numerical simulations with a model that takes both of these phenomena into account we find that under reasonable assumptions the failure to take into account distortions of human capital decisions produces substantial underestimates of the excess burden of income taxation in addition allowing for the endogeneity of human capital increases the efficiency of a personal consumption tax relative to that of an equal yield income tax this abstract was borrowed from another version of this item

time consistent consumption taxation abstract we characterise optimal tax policies when the government has access to consumption taxation and cannot credibly commit to future policies we consider a neoclassical economy where factor income taxation is distortionary within the period due to endogenous labour and capital utilisation and non tax deductibility of depreciation contrary to the case where only labour and capital income are taxed the optimal time consistent policies with consumption taxation are remarkably similar to their ramsey counterparts the welfare gains from commitment are negligible while they are substantial without consumption taxation further the welfare gains from taxing consumption are much higher without commitment

can socioeconomic heritage produce a lost generation with regard to entrepreneurship a considerable amount of literature deals with the influence of institutions on entrepreneurship but for all that little is known about the interplay between institutions and personal determinants of entrepreneurship in this paper the empirical evidence that older people in transition economies have low engagement in entrepreneurial activity is the starting point for analyzing how institutions moderate the relationship between individual characteristics and entrepreneurial choice the results show that the socioeconomic heritage of being exposed to socialism deters entrepreneurship an effect that is more pronounced for high impact entrepreneurship detailed analyses reveal that the effect is driven by devaluation of socialist work experience and the influence of socialism on mindset

deficits and intergenerational welfare in open economies this paper deals with public debt in open economies extending diamond s overlapping generations model to a small open economy as well as an international equilibrium of two large economies it focuses on the intergenerational welfare redistributions caused by an increase in public debt triggered by a temporary government budget deficit and shows how these redistributions differ in open and closed economies the interplay between the deficits in the government budget and the current account is also analyzed it is shown how a single period with a government deficit can be followed by a sequence of periods with a deficit in the current account

neglected effects on the uses side even a uniform tax would change relative goods prices fundamental tax reform may change relative prices of consumption goods and may therefore have important effects on the uses side that are ignored by most general equilibrium simulation models for a uniform rate of tax in our model results on the uses side are driven by the nonuniform tax system being replaced similar effects occur under any uniform and comprehensive tax reform whether the current system is replaced by a consumption tax a wage tax or a pure income tax any such reform that eliminates the current preferential treatment of housing would impose an additional one time levy on the elderly and any reform that eliminates the current double taxation of corporate capital would reduce the relative prices of corporate capital intensive goods bought by the poor this abstract was borrowed from another version of this item

economic growth income inequality and poverty in china under economic reforms china s gross domestic product gdp more than quadrupled between 1978 and 1996 under economic reforms per capita disposable incomes more than tripled in the cities and almost quadrupled in the rural areas however rapid economic growth brought about large income inequality which slowed down poverty reduction in 1995 there were still 70 170 million people living in poverty this article aims to assess the relationship between economic growth income inequality and poverty using both secondary and household survey data the main findings are 1 urban rural divide and spatial inequality are two major factors accounting for overall income inequality 2 non wage and non farm incomes are more unequally distributed than wage and farm incomes and 3 the incidence of poverty is very sensitive to the changes in per capita income and inequality

economic effects of fundamental tax reform brookings institution the tax system profoundly affects countless aspects of private behavior it is a powerful policy influence on the distribution of income and it is the one aspect of government that almost every citizen cannot avoid with tax reform high on the political agenda this book brings together studies of leading tax economists and lawyers to assess the various reform proposals and examine the effects of tax reform in several distinct areas together these studies and comments on them present a balanced evaluation of professional opinion on the issues that will be critical in the tax reform debate the book addresses annual and lifetime distributional effects saving investment transitional problems simplification home ownership and housing prices charitable groups international taxation financial intermediaries and insurance labor supply and health insurance

conversion to a consumption tax the transition in a life cycle growth model this paper examines the transitional losses that may follow conversion from an income tax to a consumption tax even when conversion eventually raises steady state lifetime welfare two recent studies have left the impression that the transitional losses would be large using a life cycle growth model this paper examines two reasons why these studies have probably overestimated the transitional losses the model computes the welfare gains and losses of each age cohort along the transition path it is shown that the greater the bequest motive and subjective discount rate generating the particular initial income tax steady state the smaller would be the transitional losses similarly a policy of age phasing would reduce the losses the results demonstrate the importance of examining the transition path whenever a policy change alters capital accumulation

welfare and optimum dynamic taxation of consumption and income abstract this paper estimates that the us could attain large welfare gains by implementing an optimal ramsey tax policy that taxes consumption and income it is also found that the welfare implications associated with taxing consumption are quantitatively more important than those associated with dynamically taxing income indeed replacing income taxes with a constant consumption tax leads to a welfare gain that is only slightly lower than that attained by a dynamic policy that taxes consumption and income in computing these welfare gains careful attention is given to the dynamic path of tax rates and the transitional dynamics associated with how the economy responds to a new tax policy

accounting for the u s earnings and wealth inequality we show that a theory of earnings and wealth inequality based on the optimal choices of ex ante identical households that face uninsured idiosyncratic shocks to their endowments of efficiency labor units accounts for the u s earnings and wealth inequality almost exactly

taxing capital in a large open economy abstract this paper analyzes capital taxation in a dynamic optimizing equilibrium model of a large open economy it is shown that the existence of current account imbalances may yield surprising results for example if a country has a current account deficit the tendency of an increased tax on investment to lower wages is dampened if the deficit is sufficiently large an increased investment tax may actually increase both wages and welfare in the long run a country with a current account surplus may find that temporary investment incentives improve its current account in all but the short run

winners and losers in transition returns to education experience and gender in slovenia the authors identify winners and losers in slovenia s economic transition by tracing changes in returns to education experience and gender and changes in wage inequality from 1987 to 1991 they find the following relative wages and employment rose for the most educated and fell for the least educated in all industries relative wages and employment rose with years of work experience until pensionable age at pensionable age relative wages increased very rapidly and relative employment was greatly reduced using pension policies to encourage early retirement drastically reduced the supply of very experienced workers either the policy caused firms to bid up wages for workers of pensionable age to keep them from retiring or it caused a selection process in which only the highest paid workers remained in the workforce regardless the pension policy has proved to be costly and early retirements did not make room for the youngest workers but for those just under pensionable age women gained relative to men in both wages and employment primarily because they occupy education and industry groups less adversely affected by the transition not because of economywide reductions in discrimination against women increasing returns to education and experience contributed to wage inequality but the variance in wages also increased for individuals with identical skills big changes in relative wages should signal future reallocation of labor toward more productive higher paying sectors setting minimum wages fixing ranges of pay and indexing wages to inflation did not prevent increases in wage variation from occuring wage minimums did not appear to have an effect presumably because inflation reduced real minimum wages so quickly that most workers were paid above the minimums in slovenia policy changes are reflected in labor market outcomes disabling the tax transfer policy from relatively profitable to relatively unprofitable firms and eliminating worker referendums on wage scales removed mechanisms that tended to compress wage variation greater demand for skilled workers also reflected both the economywide need to cope with uncertainty and such industry specific factors as reduced labor demand especially in less skill intensive industries the results in slovenia contrast sharply with those in eastern germany eastern german workers have had decreasing returns to education and experience but it is not clear how relevant the eastern german experience is to other transitional economies because of western germany s efforts to alleviate problems more similar to the authors findings are the results of flanagan 1993 on the czech republic which show increasing returns to education but decreasing returns to experience in some respects slovenia is atypical because it is richer and more western in orientation than other transitional economies however economies could learn from the experience in slovenia because slovenia also had social ownership full employment coupled with substantial hidden unemployment and an egalitarian wage structure and slovenia has introduced labor market reform and experienced social dislocations similar to those in other transitional european economies

value of human capital in transition to market evidence from slovenia abstract the paper summarizes existing hard evidence concerning the changing value of human capital in slovenia s transition to a market system it investigates changes in patterns of job mobility via estimating multinomial logit and hazard models and changes in the structure of wages via earnings functions associated with education experience gender and ethnicity data are drawn from unusually rich administrative data sets that include personal characteristics work history and earnings for virtually all labor force participants all evidence points to rapidly increasing marginal returns to human capital in transition economies

labor income taxation and human capital accumulation abstract this paper provides alternative analytical results concerning the effect of labor income taxation on human capital accumulation with the tax revenues being consumed by the government and savings being negatively related to the labor tax rate an increase in the labor income tax rate reduces the incentive for human capital accumulation and thus decreases human capital with tax revenues being consumed by government and savings being positively related to the labor tax rate an increase in the tax rate increases the incentive for human capital accumulation and increases human capital with the tax revenues being used to compensate the individuals who pay the taxes an increase in the tax rate has no effect on human capital

editorial does good marketing cause bad unemployment questionable methods for increasing nominal wages reduce real wages i e buying power by creating inflation shortages lower quality and long term unemployment to increase real wages i e the ability to buy more economic principles prescribe increasing productivity i e greater output from less input in contrast marketing principles prescribes increasing the value of output i e greater customer benefits through innovation beyond increasing real wages innovation spawns new occupations better matching individuals with skills and providing greater nonmonetary benefits i e job satisfaction unfortunately threatened entrenched incumbents often solicit protectionist legislation claiming negative externalities e g short term unemployment lower wages and burdens on society innovation does require labor to move from inferior to superior organizations i e unemployment however protectionism only delays and dramatically aggravates the inevitable trauma associated with progress as worker skills firm practices and buyer welfare fall further behind recent attacks demonizing wal mart e g the dubious vlasic pickle claim epitomize this situation they are archaic vanilla protectionism menacing both imperiled consumers and every consumer driven business

optimal fiscal and monetary policy equivalence results in this article we analyze the implications of price setting restrictions for the conduct of cyclical fiscal and monetary policy we consider standard monetary economies that differ in the price setting restrictions imposed on the firms we show that independently of the degree or type of price stickiness it is possible to implement the same efficient set of allocations and that each allocation in that set is implemented with policies that are also independent of the price stickiness in this sense environments with different price setting restrictions are equivalent

wage effects of the move toward free markets in east germany this analysis of data from the german socio economic panel soep for the years 1989 91 illuminates important changes in the structure of wages that were occurring in the former east germany during its transition toward a capitalist economy and changes that are probably occurring in other countries in eastern europe as well under the new capitalist wage regime workers realized significant returns to schooling gained under socialism but no significant returns to work experience because work experience is the largest element in the human capital of older workers their wages fell under the new system and the results suggest that their wages will continue to fall relative to those of younger workers generous transfer payments from western germany may prevent an absolute decline in living standards of these workers older workers in other eastern countries however will have no such social assistance and their living standards will probably fall

flat tax reform a quantitative exploration abstract this paper explores quantitatively the general equilibrium implications of a revenue neutral tax reform in which the current income and capital income tax structure in the u s is replaced by a flat tax as proposed by hall and rabushka 1995 the flat tax 2nd ed hoover the central aspects of such reform the impact of tax reform on capital accumulation and labor supply as well as its distributional consequences are analyzed in a dynamic general equilibrium model main results are that i the elimination of the actual taxation of capital income has an important and positive effect on capital accumulation ii mean labor hours are relatively constant across tax systems but aggregate labor in efficiency units increases iii in all circumstances analyzed the distributions of earnings income and especially wealth become more concentrated

post unification wage growth in east germany following monetary union with west germany in 1990 the real wage of east german workers rose 83 i use the german socio economic panel data to investigate the determinants of wage growth and assess whether they are consistent with efficient restructuring although job changing rates were initially high the share of wage growth that accrued to movers was little higher than in the west suggesting that the incentives to move were too low for 1990 to 1991 the biggest gainers were low wage workers generally and women and the less educated specifically for 1991 to 1996 the biggest gainers were women and the better educated

on the size of u s government political economy in the neoclassical growth model we study a dynamic version of meltzer and richard s median voter model of the size of government taxes are proportional to total income and they are redistributed as equal lump sum transfers voting takes place periodically over time and each consumer votes for the tax rate that maximizes his equilibrium utility we calibrate the model to u s data key elements in the calibration are the income and wealth distribution and the parameters governing the leisure and consumption choices the total size of transfers predicted by our political economy model is quite close to the size of transfers in the data

a lower vat rate on electricity in portugal towards a cleaner environment better economic performance and less inequality abstract this article addresses the budgetary economic distributional and environmental impact of increasing the vat on electricity in portugal the analysis is carried out in the context of a new multi sector multi household dynamic general equilibrium model simulation results suggest that a permanent increase from 6 to 23 improves the public budget and albeit marginally co2 emissions but it leads to detrimental economic and distributional effects as the economy in portugal begins to recover after the great financial crisis and the budgetary situation becomes less constraining pressure is mounting for this vat increase to be reversed this mixed bag of results is an important element for the debate reverting to a lower vat is desirable as it would improve economic performance and have positive distributional effects the question is how to compensate for the loss of tax revenues to offset the adverse budgetary effects of a lower vat we consider several revenue raising strategies our simulation results suggest that an offsetting increase in either the general vat tax rate or the tax on petroleum products would yield more favorable effects from all relevant perspectives economic distributional and environmental while mostly keeping intact the budgetary benefits

replacing the u s income tax with a progressive consumption tax a sequenced general equilibrium approach abstract this paper examines the welfare consequences of changing the current u s income tax system to a progressive consumption tax we compute a sequence of single period equilibria in which savings decisions depend on the expected future return to capital in the presence of existing income taxes the u s economy is assumed to lie on a balanced growth path with the change to a consumption tax individuals save more and initially consume less as the capital stock grows consumption eventually overtakes that of the original path and the economy approaches the new balanced growth path with higher consumption and a greater capital stock both the transition and the balanced growth paths enter our welfare evaluations we find the discounted present value of the stream of net gains is approximately 650 billion in 1973 dollars just over 1 percent of the discounted present value of national income larger gains occur if further reform of capital income taxation accompanies the change we examine the sensitivity of the results both to the design of the consumption tax and to the values of elasticity and other parameters the paper also contains estimates of the time required to adjust from one growth path to the other

on the efficiency and equity trade off abstract the concept of policy measures that create a potential pareto improvement has dominated normative economics the use of this concept in welfare economics relies on the availability of discriminatory lump sum transfers in such a way that the implementation of the efficient policy measure leads to a pareto movement in the economy however most studies of efficient policies preclude by assumption the existence of lump sum taxation this paper proposes in economies amenable to gorman aggregation one simple methodology to rank alternative allocations in terms of their distributional implications in a world with no lump sum transfers this methodology is simple because it is independent of the distribution of characteristics in the economy then for a specific policy measure it can be easily identified whether it implies an equity efficiency trade off the method is illustrated by analyzing the effects on inequality of the elimination of capital taxation the reduction of the inflation tax and the liberalization of capital movements in a small open economy

the long run dynamics of fundamental tax reform in this paper we analyze the impact of fundamental tax reform on the dynamics of u s economic growth over the next quarter century we consider two alternative approaches to tax reform the first is a flat rate consumption tax similar to the one introduced by majority leader dick armey and senator richard shelby in the 104th congress the second is an income base value added tax also with a flat rate these taxes would be substituted for existing individual and corporate income taxes at federal state and local levels a full description of the two proposals is given by the joint committee on taxation 1996 our simulations of u s economic growth under alternative tax policies are based on an intertemporal equilibrium model of the u s economy we have continuously revised and updated this model since it was first published in 1990 version 9 incorporates the detailed representation of the u s tax structure presented by jorgenson and kun young yun 1991 in tax reform and the cost of capital we present a detailed description of the model and summarize more than a dozen applications in jorgenson and wilcoxen 1993 our model of u s economic growth is disaggregated to the 35 industries listed below in addition the model distinguishes among 1 344 types of households disaggregated by family size age and gender of household head region of residence race and urban versus rural location the model is built around submodels of investment and saving based on rational expectations the price of investment goods in every period is based on expectations of future capital service prices and discount rates that are fulfilled by the solution of the model in order to analyze the economic impact of changes in tax policy we simulate the growth of the u s economy with and without changes

consumption taxes and redistribution this study considers replacing the current us tax system with only aflat tax con sumption tax showing in contrast to the literature that such a reform leads to a decline in inequality and increase in welfare for the welfare poor the results are obtained from a simple model that identifies the main channels through which the reform affects the economy it is shown also that these novel results depend on the distribution of wealth and earnings and that they hold for the relevant

the transition in east germany when is a ten point fall in the gender wage gap bad news the gender wage gap in east germany has narrowed by 10 percentage points in transition but women have experienced much more severe employment difficulties than men using the german socio economic panel for 1990 94 i show that on balance women have lost relative to men almost half the relative wage gain is due to exits from employment of the low skilled who are disproportionately women the female employment decline is not primarily voluntary more than half the gender gap in the hazard rate from employment reflects a general fall in demand for low skilled workers reduced child care plays no role

capital income taxation in a world economy a territorial system versus a residence system this paper investigates the effects of a tax reform of conversion from capital income to consumption taxes on capital accumulation in a two country model in the territorial system the tax reform will normally lead to a negative comovement between capital accumulation in two countries while in the residence system it will lead to a positive comovement copyright 1991 by royal economic society

the consumption tax in the presence of altruistic cash and human capital bequests with endogenous fertility decisions abstract we provide an analysis of the consumption tax policy in the presence of cash bequests human capital investments in children and endogenous fertility decisions it is shown that the consumption tax is no longer neutral if the tax rate is constant over the taxpayer s life cycle labor supply is exogenous and the parent expects the offspring to pay the same tax rate if the number of children is chosen optimally by the parent neutrality breaks down because the shadow prices of both bequests and fertility are interlinked it is more expensive to produce a child the larger either bequest is and it is more expensive to make a bequest of either type to each child the larger the number of children produced several examples are provided where imposing the consumption tax induces an increase in the number of children produced and a decrease in net capital formation

returns to human capital under the communist wage grid and during the transition to a market economy we estimate returns to human capital during communism and the transition using data on 2 284 men in the czech republic we show a extremely low and constant rates of return to education under the communist wage grid and dramatic increases in transition which do not differ by firm ownership b radical changes in returns to several fields of study and sheepskin effects in both regimes c identical wage experience profile in both regimes d similar 1996 returns to human capital obtained in communism and in transition and e changes in the interindustry wage structure a decomposition of the variance of wages finds individuals unobservable effects from communism to persist into transition but most of the variance is due to unobservable effects introduced in the transition

economic reforms and regional segmentation in rural china yao s and l iu j 1998 economic reforms and regional segmentation in rural china reg studies 32 735 746 strong growth in agriculture industries and services in rural china over the last 18 years has been accompanied by increased spatial income inequality this paper investigates how reforms and rapid economic growth have resulted in such a regional divide it concludes that government policy and uneven development of non farm activities are major factors to blame pointing out that rather than allowing massive migration creating jobs for people is a better long term strategy to reduce regional inequality yao s et l iu j 1998 les reformes economiques et la segmentation regionale dans la chine rurale reg studies 32 735 746 au cours des dix huit dernieres annees la croissance forte de l agriculture des industries et des services dans la chine rurale est allee de pair avec des ecarts de revenu geographiques de plus en plus importants cet article examine comment les reformes et l essor eco

simulating fundamental tax reform in the united states this paper uses a new large scale dynamic life cycle simulation model to compare the welfare and macroeconomic effects of transitions to five fundamental alternatives to the u s federal income tax including a proportional consumption tax and a flat tax the model incorporates intragenerational heterogeneity and a detailed specification of alternative tax systems simulation results project significant long run increases in output for some reforms for other reforms namely those that seek to insulate the poor and initial older generations from adverse welfare changes long run output gains are modest

tax reform and external balance abstract this paper examines the effect of a transformation from capital taxation to consumption in an open economy with the residential capital tax rate being endogenous an increase in the domestic consumption tax rate decreases the interest rate increases capital accumulation and increases the domestic country s net foreign asset holdings and trade surplus with the territorial capital tax rate being endogenous an increase in the domestic consumption tax rate may either increase or decrease the domestic country s interest rate net foreign asset holdings and trade surplus depending on the interest elasticity of capital demand