re examination of uniform commodity taxes under a non linear income tax system and its implication for production efficiency abstract this paper shows that the result of uniform commodity tax under nonlinear income taxation by atkinson and stiglitz 1976 no longer holds if the production side of an economy is taken into the consideration in particular imposing a non uniform commodity tax can pareto improve welfare even under nonlinear income taxation in addition the paper shows that if the government uses a nonlinear income tax system for income redistribution then the introduction of distortions in the public sector can pareto improve welfare contrary to the results in diamond and mirrlees 1971

globalization veto players and welfare spending this article examines the role of globalization and its interaction with domestic political institutions veto players in shaping welfare spending in 18 advanced industrial countries from 1960 to 2000 first the author evaluates how integrated world markets have influenced welfare expenditures results suggest that globalization increased welfare spending in this sample second the author studies how domestic political institutions mediate the impact of globalization on welfare spending with a new data set on veto players for the years 1960 to 2000 the author finds that as the number of and ideological distance among veto players increases the upward pressure of globalization on welfare spending is reduced the results show that globalization has pressured states to expand welfare spending but the extent to which states have responded to pressure critically depends on the number of and ideological distance among veto players whose agreement is required to change welfare policy

environmental degradation and real per capita output new evidence at the global level grouping countries by income levels abstract the objective of this research is to examine the relationship between real per capita output and carbon dioxide emissions both globally and by groups of countries we used panel data from 151 countries for the period 1980 2016 the countries are classified according to income levels using the world bank atlas method the argument behind this classification is that the strength of the relationship between the two variables differs according to the income levels of countries based on the theoretical framework of the kuznets environmental curve we found that there is a strong u shaped relationship between the two variables in middle high and low income countries the hypothesis of the kuznets environmental curve holds true in high income and middle high income countries the inclusion of additional covariants shows that urbanization has a positive and significant relationship with carbon dioxide emissions middle high and middle low income countries energy consumption and manufacturing have a positive and statistically significant relationship with carbon dioxide emissions in all the groups of countries a possible implication of economic policy derived from our research is that incentives to production should focus on activities that use environmentally friendly technologies to limit the irreversible damage caused by contamination

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

simultaneity bias in the analysis of perceived job insecurity and subjective well being abstract the paper assesses perceived job insecurity as a determinant of current subjective well being and demonstrates that standard models may yield significantly downward biased estimates

effects of local and civil environmental regulation on green total factor productivity in china a spatial durbin econometric analysis this paper employs metafrontier malmquist luenberger index and a spatial durbin model to investigate the influence of both local and civil environmental regulation and its spatial spillover effect on green total factor productivity in 273 cities of china in 2003 2013 according to city political attribute and regional differences this article divides the sample city into six categories the results show that effect of local environmental regulation on green total factor productivity is significantly positive in high political attribute cities a1 and a2 zone but negative effects in lower political attribute cities b2 and b3 zone moreover the race to the top results in significantly positive spatial spillover effects from local environmental regulation on green total factor productivity in high political attribute cities a1 and a2 zone while the race to the bottom causes significantly negative spatial spillover effects in lower political attribute cities b2 and b3 zone as for civil environmental regulation it has positive direct and indirect effects in promoting green total factor productivity we further find that environmental regulation inhibits the original technological innovation of enterprises which suggests that government should reduce market intervention improve enterprise flexibility of market change and promote enterprises to carry out the original technological innovation thus the government and citizen should make targeted pollution reduction policies for the green total factor productivity increase

unemployment and domestic violence theory and evidence is unemployment the overwhelming determinant of domestic violence that many commentators expect it to be the contribution of this paper is to examine theoretically and empirically how changes in unemployment affect the incidence of domestic abuse the key theoretical prediction is that male and female unemployment have opposite signed effects on domestic abuse an increase in male unemployment decreases the incidence of intimate partner violence while an increase in female unemployment increases domestic abuse combining data on intimate partner violence from the british crime survey with locally disaggregated labor market data from the uk s annual population survey we find strong evidence in support of the theoretical prediction

can state taxes redistribute income abstract the evidence presented in this paper supports the basic theoretical presumption that state and local governments cannot redistribute income since individuals can avoid unfavorable taxes by migrating to jurisdictions that offer more favorable tax conditions a relatively unfavorable tax will cause gross wages to adjust until the resulting net wage is equal to that available elsewhere the current empirical findings go beyond confirming this long run tendency and show that gross wages adjust rapidly to the changing tax environment thus states cannot redistribute income for a period of even a few years the adjustment of gross wages to tax rates implies that a more progressive tax system raises the cost to firms of hiring more highly skilled employees and reduces the cost of lower skilled labor a more progressive tax thus induces firms to hire fewer high skilled employees and to hire more low skilled employees since state taxes cannot alter net wages there can be no trade off at the state level between distribution goals and economic efficiency shifts in state tax progressivity by altering the structure of employment in the state and distorting the mix of labor inputs used by firms in the state create deadweight efficiency losses without achieving any net redistribution

reconsidering the impact of the environment on long run growth when pollution influences health and agents have a finite lifetime using an overlapping generation model a la blanchard 1985 j polit econ 93 223 247 with human capital accumulation we demonstrate that the influence of the environment on optimal growth in the long run may be explained by the detrimental effect of pollution on life expectancy we also show that in such a case greener preferences are growth and welfare improving in the long run even if the ability of the agents to learn is independent of pollution and utility is additively separable finally we establish that a minimum environmental policy is required to obtain a sustainable equilibrium in the market economy and that it is possible to implement a win win environmental policy

an analysis of the corporate income tax policy of less developed countries unlike developed countries corporate tax rather than personal tax revenues are the greater source of public finance for less developed countries ldcs this paper analyses the corporate income tax policy for a large panel of ldcs over the period 1980 2006 the analysis shows that although the corporate tax rate has been decreasing in ldcs corporate tax revenues have been increasing as a percentage of total tax revenues and gdp contrary to standard tax competition theory there is also strong evidence that corporate income taxes in ldcs are increasing in the country s openness as measured by capital mobility the analysis also shows that the corporate tax rate is increasing in the personal tax rate as income shifting theory predicts however this has not translated into increased corporate tax revenues of equal interest is the lack of evidence of a relationship between the ldc s government revenue needs and its corporate tax rate

measuring benefits from air pollution control where do we stand measuring the benefits from reduced morbidity this paper presents a simple model of preventive health care similar to that of grossman 1972 and uses the model to define what a person would pay for a change in air quality the model assumes that one can build up resistance to acute illnes by increasing his stock of health capital however health capital decays at a rate which depends on air pollution for acute illness willingness to pay as derived from the model is greater than the benefit estimate computed using the damage function approach to illustrate the size of this discrepancy estimates of willingness to pay are computed using data from the michigan panel study of income dynamics the case for government providing information about risks rests secure in the theory of public goods informational scale economies and problems of dissemination conceivably call for a principal agent relationship in which certain types of decisions are delegated to the agency however the setting of standards and prohibitions is too simplistic it seldom recognizes that personal action tends to interact with and partially offset them 8 references

economic growth pollution and renewable resources abstract this paper first analyzes a model of economic growth with stock pollution allowing smooth substitution between emissions and reproducible capital when emissions are optimally controlled the steady state consumption is lower than without pollution control but the optimal steady state equilibrium may not exist if the marginal productivity of capital is bounded the steady state is shown to be a local saddle point independent of the rate of discount if pollution is not controlled a competitive economy moves along a stable growth path toward a too heavily polluted steady state next a growth model in which pollution affects the growth of renewable resources is presented the conditions for the existence and saddle point property of the steady state are given and the consequences of nonoptimal externality taxes are discussed when renewable resources are included higher than optimal pollution may decrease steady state consumption contrary to the case where renewable resources are ignored

does government expenditure affect environmental quality empirical evidence using chinese city level data abstract with rapid economic development the chinese government expenditures at various levels have increased sufficiently at the same time the environmental pollution in china has deteriorated significantly in this study the city level panel data of 106 chinese cities over the 2002 2014 period are utilized to investigate the impacts of government expenditure on the emissions of three typical pollutants specifically the total effects are divided into two types direct effects through which government expenditure affects pollution directly and indirect effects which refer to the indirect influences of government expenditure on environmental pollution through its impacts on gdp per capita to control for potential endogeneity and introduce dynamics the generalized method of moments gmm method is utilized the estimation results indicate that the total effects of government expenditure on these three pollutants are very different for sulfur dioxide so 2 soot and chemical oxygen demand cod the total effects are decreasing inverted u and u shaped respectively furthermore the indirect effects dominate the direct effects

taxes institutions and foreign diversification opportunities abstract investors can access foreign diversification opportunities through either foreign portfolio investment fpi or foreign direct investment fdi the worldwide tax regime employed by the us potentially distorts this choice by penalizing fdi relative to fpi in low tax countries on the other hand weak investor protections in foreign countries may increase the value of control creating an incentive to use fdi rather than fpi by combining data on us outbound fpi and fdi this paper analyzes whether the composition of us outbound capital flows reflects these incentives to bypass home and host country institutional regimes the results suggest that the residual tax on us multinational firms foreign earnings skews the composition of outbound capital flows a 10 decrease in a foreign country s corporate tax rate increases us investors equity fpi holdings by approximately 10 controlling for effects on fdi investor protections also seem to shape portfolio choices though these results are not robust when only within country variation is employed

job insecurity and wages this paper examines whether subjective expectations of unemployment are reliable indicators of the probability of becoming unemployed and investigates their association with wage growth we find that workers fears of unemployment are increased by their previous unemployment experience and by the unemployment experiences of a close friend and are associated with other objective indicators of insecure jobs we then show that unemployment fear predicts future unemployment above and beyond observed objective variables high fears of unemployment are found to be associated with significantly lower levels of wage growth for men but to have no significant link with wage growth for women

dynamic optimal taxation in small open economies abstract this paper examines the effects of perfect capital mobility on the determination of optimal capital taxation it shows that capital movements do not change dramatically the optimal tax path studied for the closed economy in addition the paper provides a counterexample to the standard belief that the worldwide system is the optimal regime of taxation finally it shows that the rate of taxation of the rest of the world is not fundamental to determine the optimal decision of a small economy

an economic analysis of air pollution and health the case of st louis a health oriented choice model is developed in which individuals are viewed as producers of health and good health is desired for both consumption and investment purposes individuals are able to adjust their consumption of medical care in order to defend against reductions in air quality a compensating variation type marginal willingness to pay expression is derived for improved air quality and the model is tested using cross sectional data on employed adult residents of st louis missouri estimates of marginal willingness to pay for the average employed person are derived for a 30 reduction in ozone these values range from 18 45 to 24 48 per year

who offers tax based business development incentives abstract many american communities seek to attract or retain businesses with tax abatements tax credits or tax increment financing of infrastructure projects tifs the evidence for 1999 indicates that communities are most likely to offer one or more of these business development incentives if their residents have low incomes if they are located close to state borders and if their states have troubled political cultures ten percent greater median household income is associated with a 3 2 lower probability of offering incentives 10 greater distance from a state border is associated with a 1 0 lower probability of offering incentives and a 10 higher rate at which government officials are convicted of federal corruption crimes is associated with a 1 2 greater probability of offering business incentives tifs are the preferred incentive of communities whose residents have household incomes between 25 000 and 75 000 whereas tifs are much less commonly offered by communities whose residents have household incomes below 25 000 the need to finance tifs out of incremental tax revenues may make it infeasible for many of the poorest of communities to use tifs for local business development

is job insecurity on the rise evidence from canadian perception data this paper examines the unexplored issue of worker insecurity perception in canada specifically we explore for changes in worker perceptions of job security using canadian gallup data for the 1977 2006 period we find that the high levels of perceived insecurity of the early to mid 1990s were only cyclical in nature not evidence of structural change we also explore for differences across socio economic groups and find that university educated workers full time workers and white collar workers all felt relatively more secure about present and future job prospects interestingly union members tend to be more concerned about job security than non union ce memoire examine le probleme inexplore de la perception de la precarite de l emploi au canada specifiquement on explore les changements dans les perceptions de precarite d emploi des travailleurs a l aide de donnees gallup pour la periode 1977 2006 il appert que les hauts niveaux de precarite percue du debut au milieu des annees 90 etaient de nature cyclique et non pas le resultat d un changement structurel on examine aussi les differences entre groupes socio economiques et on decouvre que les travailleurs avec une formation universitaire les travailleurs a temps plein et les collets blancs se sentaient relativement plus en securite quant aux perspectives d emploi presentes et futures il est interessant de noter que les travailleurs syndiques sont davantage inquiets quant a la precarite de l emploi que les non syndiques

downsizing and job insecurity this article offers an explanation of why firms downsizing patterns may vary substantially in magnitude and timing taking the form of one time massive cuts waves of layoffs or zero layoff policies the key element of this theory is that workers expectations about their job security affect their on the job performance in a situation where firms face adverse shocks the productivity effect of job insecurity forces firms to balance laying off redundant workers and maintaining survivors commitment the cost of ensuring commitment differs between firms with different characteristics and determines whether workers are laid off all at once or in stages however if firms have private information about their future profits they may not lay off any workers in order to signal a bright future boosting worker s confidence jel j21 j23 d21 d82

the choice of apportionment factors under formula apportionment thispaperinvestigatesthechoiceofapportionmentfactorsunderacorporatetaxsystemofformulaapportionment in contrast to perceived wisdom we show that the apportionment formula contains both mobile capital and immobile labor factors regardless of whether the formula is determined decentrally by jurisdictions or centrally by a central planner the central planner uses the formula as a corrective instrument to internalize fiscal externalities we calibrate the model to the european union and show that replacing the current system of separate accounting by formula apportionment would substantially increase tax revenue and welfare under both centralized and decentralized formula choices

financial development environmental quality trade and economic growth what causes what in mena countries this paper examines the relationship between financial development co2 emissions trade and economic growth using simultaneous equation panel data models for a panel of 12 mena countries over the period 1990 2011 our results indicate that there is evidence of bidirectional causality between co2 emissions and economic growth economic growth and trade openness are interrelated i e bidirectional causality feedback hypothesis is validated between trade openness and financial development neutrality hypothesis is identified between co2 emissions and financial development unidirectional causality running from financial development to economic growth and from trade openness to co2 emissions is identified our empirical results also verified the existence of environmental kuznets curve these empirical insights are of particular interest to policymakers as they help build sound economic policies to sustain economic development and to improve the environmental quality

taxation of asset income in the presence of a world securities market abstract this paper examines a capm model of world security prices in which governments recognize their ability to influence international security prices via their tax treatment of foreign and domestic investors in this model governments have the incentive to set tax rates such that investors tend to specialize in domestic securities and to restrict net capital flows between countries each country does this to increase the utility of domestic residents taking as given the tax policies of other governments but the net outcome is a reduction in world efficiency and likely a reduction in the utility of all investors

labor market reforms job instability and the flexibility of the employment relationship we endogenize separation in a search model of the labor market and allow for bargaining over the continuation of employment relationships following productivity shocks to take place under asymmetric information in such a setting separation may occur even if continuation of the employment relationship is privately efficient for workers and firms we show that reductions in the cost of separation owing for example to a reduction in firing taxes lead to an increase in job instability and when separation costs are initially high may be welfare decreasing for workers and firms we furthermore show that in response to an exogenous reduction in firing taxes workers and firms may switch from rigid to flexible employment contracts which further amplifies the increase in job instability caused by policy reform

international tax coordination regionalism versus globalism tax competition for mobile capital can undermine the attempts of governments to redistribute income from rich to poor i study whether international tax coordination can alleviate this problem using a general equilibrium model synthesizing recent contributions to the tax competition literature the model highlights the crucial distinction between global tax coordination and regional coordination with high capital mobility between the tax union and the rest of the world the welfare gain from regional capital income tax coordination is only a small fraction of the gain from global coordination even if the tax union is large relative to the world economy

state and local tax competition in a spatial model with sales taxes and residential property taxes abstract this paper presents a theoretical model with a uniformly populated line that is divided into local jurisdictions and or states if one level of government imposes sales and residential property taxes and if the spatial extent of each taxing jurisdiction is positive and finite then in nash equilibrium the sales tax rate is less than residential property tax rate housing consumption is suboptimal and the public good is underprovided in each jurisdiction if a very large state or country is divided into local jurisdictions and if both levels of government choose tax rates endogenously then under some assumptions there is an efficient outcome

long run trends in workers beliefs about their own job security evidence from the general social survey in recent years federal reserve chairman alan greenspan former u s secretary of labor robert reich and many journalists have argued that workers are more anxious about losing their jobs than they were in the past i use the 1977 96 general social survey to document trends in workers beliefs about their own job security during the 1990s workers have been more pessimistic about losing their jobs in the next 12 months than workers were during the 1980s workers have also been more concerned about suffering future job loss that would have resulted in a decline in earnings or a spell of unemployment

the long term impact of health on economic growth in latin america abstract growth regressions adapted as granger type causality tests give strong evidence of 30 year causality from health to income in 18 latin american countries the health indicator is probability of survival by age and gender groups for 1950 90 a permanent increment of between 0 8 and 1 5 annual income is associated with typical adult and surprisingly old age health improvements the channels of causation from health to income are diverse and need to be identified in microeconomic studies that should however include a wide variety long term phenomena to account for the economic effects of health

the effect of health on economic growth a production function approach abstract we estimate a production function model of aggregate economic growth including two variables that microeconomists have identified as fundamental components of human capital work experience and health our main result is that good health has a positive sizable and statistically significant effect on aggregate output even when we control for experience of the workforce we argue that the life expectancy effect in growth regressions appears to be a real labor productivity effect and is not the result of life expectancy acting as a proxy for worker experience

evaluating the efficiency of industrial environmental regulation in china a three stage data envelopment analysis approach abstract environmental regulation is of great concern to international academics and policy makers previous studies often regarded environmental regulation as an influencing factor when calculating eco efficiency or energy efficiency more attention should be given to the efficiency of environmental regulation especially in industrial field according to exiting studies industrial environmental regulation efficiency iere may be influenced by external environmental factors to explore the influence and obtain an actual efficiency this paper calculated iere in china by using the panel data of 30 regions from 2011 to 2015 the 12th five year plan period through the three stage data envelopment analysis approach firstly the undesirable slacks based model method was used to calculate the original iere secondly the economic base industrial structure urbanization level and education level were taken as external environmental variables and the effect of external environmental factors and stochastic disturbance were excluded thirdly the actual iere can be calculated after adjusting input values the results showed that china s iere was underestimated due to the impact from external environmental factors moreover the iere was more influenced by pure technical efficiency than scale efficiency the iere of each region varied thus targeted policies should be formulated according to local conditions this research provided a new analytical method for calculating environmental regulation efficiency the method can be applied either in other countries or in other sectors

the dynamic relationship between environmental pollution economic development and public health evidence from china abstract during the last two decades of rapid economic growth china s environmental pollution has become increasingly serious and the corresponding health damage has become a significant problem that has attracted domestic and foreign attention as china pursues sustainable economic growth the issues of environmental degradation and public health should be well addressed using sulfur dioxide emissions wastewater emissions and soot and dust emissions as indicators of environmental quality this study investigates the comprehensive dynamic relationship between environmental quality economic development and public health in china for the first time to control for potential endogeneity this paper utilizes a carefully designed simultaneous equation model sem that is composed of three equations that describe the relationships among economic development environmental quality and public health using panel data from 30 chinese provinces for the period from y2002 to y2014 the model verified the negative effect of environmental pollution on public health moreover economic and social factors may also affect public health for instance real gdp per capita has a significant negative impact on perinatal mortality rates and education and medical conditions also contribute significantly to promoting economic growth and improving the level of public health

contracting productivity growth in this paper we analyze the interactions between growth and the contracting environment in the production sector allowing incompleteness in contracting implies that viable production relationships for firms and workers and therefore the profitability of industries depend on the rates of innovation and growth the speed at which new innovations arrive in turn depends on the profitability of production for the usual reasons examined in the endogenous growth literature we show that these interactions can have important implications which are consistent with observed phenomena in both the micro and macro environment in particular we demonstrate that a technological shock increasing productivity of research can through this interaction lead to a productivity slowdown and a shift in labor market contracts away from firms providing implicit guarantees of lifetime employment and towards shorter term contractor type arrangements we show the consistency of an increase in the proportion of the labor force under short term employment increased relative returns of workers in high productivity sectors and increased income inequality with a productivity slowdown of finite duration

a voluntary brain drain tax abstract a major roadblock to the implementation of bhagwati s proposal to allow developing countries to tax skilled emigrants residing in developed countries the brain drain is the administrative problems associated with collecting this tax in the absence of developed country cooperation this paper provides a partial solution to these problems involving the tax treatment of emigrants who return to their countries of origin the tax system is structured so that returning emigrants who previously paid the brain drain tax face lower tax payments than those who evaded the brain drain tax given the expected value of this tax benefit emigrants are willing to pay the brain drain tax in the basic model a source country s optimal tax system includes this brain drain tax and does not distort migration decisions

a three input model of the spatial effects of a central city wage tax abstract this paper considers the short run and long run spatial effects on wages employment and business capital as functions of location of a localized increase in wage tax rates the model is most applicable to a central city that has a higher wage tax rate than the surrounding suburbs the inclusion of land as a third input in production significantly reduces the long run effects of a central city wage tax on employment near the central city boundary as compared with a model in which labor and capital are the only two inputs the short run effects are significantly less than the long run effects

taxation and inflation a new explanation for capital flows abstract in a world of mobile capital the current system of taxation implies that the after tax cost of capital and return to saving in each country are negatively correlated with the rate of inflation thus a country s net foreign asset position ought to be negatively correlated with its long run inflation rate the magnitude of these effects is shown to be potentially large for oecd countries cross section and time series regressions confirm that inflation rates are good predictors of net foreign assets the existing distribution of net foreign assets may therefore largely reflect tax distortions

income productivity in china on the role of health this study provides empirical evidence regarding the income productivity of health human capital in china we appeal to concepts from human capital theory to support a basic model that treats health as a form of human capital in the income production process our model examines the economic return at the household level from the health of its individual members we estimate this with a longitudinal sample drawn from the china health and nutrition survey chns allowing us to exploit within variation in health and income to address possible unobservables biasing estimates of the impact of health on income in the simple cross sectional setting household income is strongly influenced by the health of its members particularly in rural areas these findings could have important implications for health and economic policy making aimed at reducing the long standing urban rural economic gap and more comprehensively insuring the rural population against health and economic risk

economic growth and the diffusion of clean technologies explaining environmental kuznets curves the paper provides a theoretical explanation for the inverted u shaped relation between pollution and income often found in empirical research environmental kuznets curve we model the transition in the pollution pattern as a change in general purpose technologies and investigate how it interferes with economic growth driven by quality improvements we provide an analytical foundation for the claim that the rise and decline of pollution can be explained by endogenous innovations policy induced technology shifts and intrasectoral changes once environmental degradation becomes too severe regulation is introduced by which society forces the economy to make a transition to cleaner production

an optimal taxation approach to fiscal federalism in a federal system of government each unit of government decides independently how much of each type of public good to provide and what types of taxes and which tax rates to use in funding the public goods in this paper we explore what types of problems can arise from this decentralized form of decision making in particular we describe systematically the types of externalities that one unit of government can create for nonresidents through both its public goods decisions and its taxation decisions the paper also explores briefly what the central government might do to lessen the costs of decentralized decision making

economic freedom and taxation is there a trade off in the locational competition between countries this paper investigates the relationshipbetween economic freedomand taxation we argue that an economicallyfree environment improvesthe attractiveness of a location which inturn enables governmentsto levy higher business taxes to test thishypothesis empirically weestimate the impact of economic freedom onthe national tax policy where the latter is measured by thecorporate tax revenue related tognp corporate tax ratio we utilize adata set of 46 developed and lessdeveloped countries between 1980 and 1997and find a clear confirmationof our hypothesis further a simulationanalysis reveals that the observedchange in economic freedom has equalizedthe international distributionof corporate tax ratios

hypergrowth in an east asian nic public policy and capital accumulation in singapore abstract singapore has produced the world s highest investment ratios known to account for growth more rapid than in any other less developed country over the past three decades but such high investment needs explanation we trace singapore s public policy of increasing tax concessions and infrastructural spending in effect subsidies to private firms and use an open economy neoclassical model to show how by attracting footloose foreign capital and raising investment levels these policy measures can drive growth the consequent transformation of living standards in singapore suggests in accordance with theory but contrary to most practice that for some less developed countries effectively zero tax on foreign direct investment may be a beneficial strategy yet for both singapore and other would be late industrializers major issues of development strategy arise from the kind of input driven growth analyzed in this article

the impact of environmental regulation shadow economy and corruption on environmental quality theory and empirical evidence from china abstract mounting environmental pressures led china to focus on the effectiveness of the environmental regulation to control pollution since the shadow economy or underground economic activities that are not included in official statistics accounts for an increasing fraction of china s economy its impacts on environmental quality should be carefully evaluated in this study the main research questions are as follows 1 what is the extent of the effect of environmental regulation on environmental quality and 2 what are the factors that influence the impact of environmental regulation on environmental pollution a theoretical model is developed to explain the relationship among the environmental regulation shadow economy and environmental quality in china an empirical analysis is conducted to test the three propositions of the model thereby examining the explanatory power of the theoretical model concretely using panel data from 30 provinces for the period of 1998 2012 the generalized method of moments gmm method is employed to control for potential endogeneity and introduce dynamic effects the estimation results indicate that stringent environmental regulation and the level of the shadow economy are both positively related to china s environmental pollution however the results also indicate that tighter environmental control would help reduce pollution at a given level of the shadow economy moreover an increase in the proportion of corrupt officials may weaken the environmental regulation which would consequently lead to the increase in illegal production and total pollutant emissions besides many economic and social factors may also affect the environmental quality for instance the development of secondary industry contributes toward an increase in pollutant emissions however increased research and development r d spending on eco friendly industrial operations can help to reduce pollution

international tax competition and gains from tax harmonization abstract in a world economy there are two types of distortions which can be caused by capital income taxation in addition to the standard closed economy wedge between the consumer saver marginal intertemporal rate of substitution and the producer investor marginal productivity of capital i international differences in intertemporal marginal rates of substitution implying an inefficient allocation of world savings across countries and ii international differences in the marginal productivity of capital implying an inefficient allocation of world investment across countries the paper focuses on the structure of taxation for countries which are engaged in tax competition and on potential gains from a tax harmonization we show that if the competing countries are sufficiently coordinated with the rest of the world then tax competition leads each country to apply the residence principle of taxation and there are no gains from tax harmonization if however there is not sufficient coordination then tax competition leads to low capital income taxes and the tax burden falls on the internationally immobile factors the outcome is nevertheless still efficient relative to the available constrained set of tax instruments

changes in job security and their causes an empirical analysis for france 1982 2002 abstract in this paper we analyze the changes in the risks of involuntary job loss in france between 1982 and 2002 we find that these risks are higher in the 1990s than they were in the 1980s we develop an econometric analysis to separate the effects of institutional changes from the effects of new technologies our estimates show that the rise in job loss rates is significantly more pronounced in industries that have the largest share of r d workers and the largest rate of new technologies users these findings suggest that technological changes contribute to decreasing the incentive to keep workers for long period of time and to increasing job insecurity

ekc type transitions and environmental policy under pollutant uncertainty and cost irreversibility abstract previous studies have suggested that some pollutant levels first increases due to the economic growth and then start decreasing the pattern being called the environmental kuznets curve ekc we examine ekc type transitions of pollutant levels not with respect to economic growth but more generally in time assuming that each policy maker optimally executes the two switching options of regulation and unregulation for pollution the switching dynamics of environmental policy can be described by an alternating renewal process it is shown that the double laplace transform of transition density of a pollutant level can be obtained by a novel application of renewal theory the expected level of overall pollutants is then calculated numerically and found to exhibit either a shaped or an n shaped pattern in time our results present a simple explanation for the ekc type transitions of pollutant levels within a real options framework

sectoral relationship analysis on china s marine land economy based on a novel grey periodic relational model abstract with the marine economy being an extension of the land economy it is necessary to quantify the inter industry linkage effects between china s marine land economy for realizing the complementarities and synergies between the maritime and land economy and achieve sustainable socioeconomic development in this paper we present a new grey periodic relational model this grey relational analysis adopts convexity to detect periodicity in a data sequence both amplitude and periodicity are considered in determining relational degree on the basis of this improved model we explore the industrial relationship in china s marine land industry within the same and in different periods our analysis shows that all the three sectors of marine economy are closely related to the secondary section of land economy in the same period and in different periods there is positive asymmetric mutualism over the 2006 2016 period between china s marine land economy the land economy and secondary land sector is playing a major role in serving the maritime sector however the unit energy consumption of the secondary sector of land is the largest in the three land sector so in order to realize the sustainable development of land and marine economy the green development of the secondary land sector should be accelerated and the unit energy consumption should be reduced

sources of racial wage inequality in metropolitan labor markets racial ethnic and gender differences research on racial inequality has become increasingly specialized often focusing on a single explanation and subgroup of the population in a diverse society a broader comparative framework for interpreting the causes of wage inequality for different racial ethnic and gender groups is called for the effects of a range of different factors on the wages of latinos asians and blacks relative to whites and separately for women and men are examined new sources of racial wage inequality are also considered significant differences are found in the sources of wage inequality across race ethnicity and gender differences are generally greater between racial and ethnic groups than between men and women key findings include a large negative effect of immigration on the relative wages of latinos and asians and only a small effect on the relative wages of black women and no effect on black men in contrast the relative wages of blacks remain most affected positively by the presence of manufacturing employment and unions new economy indicators of high skill services and flexible employment conditions play only a secondary role in explaining metropolitan racial wage inequality

internal labor markets under external market pressures through an empirical investigation of 11 korean firms before and after the asian financial crisis the author examines the impact of increasing external market pressures on internal labor market ilm practices in addition the merits of ilms are tested by capturing the reactions of white collar managers within these firms the author posits that 1 firms may desert ilm practices in the face of external pressures but do so in varying degrees and 2 despite reduced values placed on firm specific human capital in the marketplace ilm practices continue to have merit in promoting consummate cooperation and delaying perfunctory cooperation the findings generally support the hypotheses and implications of these results for theory and practice are discussed

trade capital mobility and tax competition this paper examines a system of governments national state or local that finance public expenditures with taxes on mobile capital e g a property tax unlike previous research on tax competition explicit consideration is given to the general equilibrium determination of the prices at which goods are traded between regions the analysis identifies inefficiencies in government behavior that are not apparent in models in which the terms of trade are exogenously given capital taxation is shown to create an inefficient distribution of public good outputs across regions accompanied by an inefficient pattern of trade a model is presented in which the chosen levels of public good outputs differ across regions containing identical residents and production possibilities there is a wasteful diversity of public good supplies

taxation of investment and savings in a world economy the equilibrium of capital and equilibrium market prices are derived for a world economy with a unified securities market mobile capital no uncertainty and varying tax rates on different sources of income in each country the paper then characterizes optimal tax rates for a small country in this setting focusing on the peculiar incentives created when the before tax rate of return differs among securities due to differences in their typical tax treatment copyright 1986 by american economic association

gospel or disaster an empirical study on the environmental influences of domestic investment in china abstract since the beginning of china s reform and opening up in late 1970s the contradiction between environmental quality and economic development has become increasingly acute as the main driving force of development china s fixed asset investment fai has grown rapidly in the meanwhile china s energy consumption surged and the environmental pressures mounted the surge in fai may have great influences on the environmental quality on the one hand the rapid increase in fai facilitated the development of the secondary industry especially energy and pollution intensive industries which brought about significant amount of energy related pollution on the other hand growing investment on environmental investment is expected to slow environmental deterioration moreover the environmental quality and domestic investment may have potential spatial correlations in this paper after fully accounting for the spatial dependence the relationship between domestic investment and environmental quality in china is quantitatively investigated using co2 and so2 as two representative pollutants the estimation results indicate that the spatial dependence indeed exists and total effects of fai on pollutant emissions are positive however there is no evidence that environmental protection investment had expected effects to effectively curb pollutant emissions in china

changing consequences of job separation in the united states using the panel study of income dynamics the author examines the consequences of job loss between the periods 1976 81 and 1986 91 he finds stability in the overall incidence of job separation but a statistically significant increase in the incidence of involuntary job loss relative to quits for older workers he also finds that the consequences of involuntary job loss worsened the reemployment rate of workers who experienced involuntary job loss dropped from 67 in 1976 81 to 62 in 1986 91 and among those who found new jobs the odds of receiving a large wage cut rose from 9 in 1976 81 to 17 in 1986 91

tax competition with parasitic tax havens we develop a tax competition framework in which some jurisdictions called tax havens are parasitic on the revenues of other countries the havens use real resources to help companies camouflage their home country tax avoidance and countries use resources in an attempt to limit the transfer of tax revenues to the havens the equilibrium price for this service depends on the demand and supply for such protection recognizing that taxes on wage income are also evaded we solve for the equilibrium tax rates on mobile capital and immobile labor and we demonstrate that the full or partial elimination of tax havens would improve welfare in non haven countries in part because countries would be induced to increase their tax rates which they have set at inefficiently low levels in an attempt to attract mobile capital we also demonstrate that the smaller countries choose to become tax havens and we show that the abolishment of a sufficiently small number of the relatively large havens leaves all countries better off including the remaining havens