rafmacalaba/datause-encoder-data huggingface dataset:
basis of two regressors: a “growth effect”, given by average income growth times the theoretical growth elasticity of poverty calculated under the lognormality assumption, and an “inequality effect”, given by the change in inequality (as measured by the standard deviation of log income) times the theoretical inequality elasticity of poverty as derived under the lognormality assumption as well. Under the null of lognormality, both regressors should carry coefficients equal to unity.

When this empirical approach is implemented on a sample of developing-country growth spells, with the change in headcount poverty as dependent variable, Bourguignon (2003) rejects the null of lognormality but still finds that the lognormal specification provides a good empirical approximation to actual poverty changes. When the dependent variable is instead the change in the poverty gap, the null hypothesis is still rejected, and in addition the fit of the regression is quite poor.

There are, however, two problems with this approach. The first one, noted by Bourguignon, is that the elasticity-based approach is valid only for infinitesimal changes in poverty and its determinants. Applying it to discrete changes can result in large approximation errors, especially given the long duration (ten years and over) of some of the spells in Bourguignon’s sample. The second problem is the implementation of the approach using poverty databases, which tend to be relatively small, typically include a considerable number of outliers,<sup>7</sup> and often involve substantial measurement error. The latter is further exacerbated by first-differencing the data for the regressions, which raises the noise-to-signal ratio. Below we present a new test of lognormality of the distribution of income that is not subject to these concerns.

# _II.1 Empirical approach_

In spirit, our approach is closest to that employed by Rutherford (1955). As noted above, for several countries (one at a time) he compared the observed quintiles of the distribution of income with their theoretical counterparts derived under the null hypothesis of lognormality. Formally, we exploit the one-to-one mapping that arises under lognormality between the Gini coefficient and the Lorenz curve _L_ ( _p_ ) that describes the relative income distribution.<sup>8</sup> Letting _G_ and σ respectively denote the Gini coefficient, and the standard deviation of log income, Aitchison and Brown (1966) show that lognormality implies and

> where Φ(.) denotes the cumulative normal distribution. Hence a change in the Gini coefficient, and thus in σ, must be reflected in a matching change in the Lorenz curve

> 7 Kraay (2005) uses a filter to eliminate extreme observations from his poverty dataset. This results in the loss of over one-third of his original sample.

> 8 Recall that _L(p)_ is the aggregate income share of the bottom _100p_ percent of the population. Thus, _L(0)_ =0 and _L(1)_ =1.

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WPS3661

# **Public Infrastructure and Private Investment in the Middle East and North Africa**

Pierre-Richard Agénor,* Mustapha K. Nabli,** and Tarik M. Yousef***

## **Abstract**

This paper examines the impact of public infrastructure on private capital formation in three countries of the Middle East and North Africa: Egypt, Jordan, and Tunisia. The first part highlights various channels through which public infrastructure may affect private investment. The second part describes our empirical framework, which is based on a VAR model that accounts for flows and (quality-adjusted) stocks of public infrastructure, private investment, as well as changes in output, private sector credit, and the real exchange rate. We propose two aggregate measures of the quality of public infrastructure and use principal components to derive a composite indicator. The impulse response analysis suggests that public infrastructure has both "flow" and "stock" effects on private investment in Egypt, but only a "stock" effect in Jordan and Tunisia. But these effects are small and short-lived, reflecting the unfavorable environment for private investment in our sample of countries. Reducing unproductive public capital expenditure and improving quality must be accompanied by reforms aimed at limiting the investment to infrastructure capital that crowds in the private sector. At the same time, other improvements to the environment in which domestic investment operates are crucial to stimulate growth and job creation in the region.

### World Bank Policy Research Working Paper 3661, July 2005

_The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the view of the World Bank, its Executive Directors, or the countries they represent. Policy Research Working Papers are available online at http://econ.worldbank.org._

### ⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯

*School of Economic Studies, University of Manchester, United Kingdom, and Centre for Growth and Business Cycle Research (pierre-richard.agenor@manchester.ac.uk); **World Bank (mnabli@worldbank.org); and ***School of Foreign Service, Georgetown University (youseft@ georgetown.edu). We are grateful to Nihal Bayraktar for technical support and participants at a seminar at the World Bank for helpful comments on an earlier draft.
Vona, F. (2021) Labour Markets and the Green Transition: a practitioner’s guide to the taskbased approach. Publications Office of the European Union, Luxembourg, ISBN 978-92-7642260-0, doi:10.2760/65924, JRC126681.

Vona, F.; Marin, G.; and Consoli, D. (2019). Measures, drivers and effects of green employment: Evidence from US local labor markets, 2006-2014. Journal of Economic Geography, 19(5): 1021-1048.

Vona, F.; Marin, G.; Consoli, D.; and Popp, D. (2018) Environmental Regulation and Green Skills: An Empirical Exploration. JAERE, vol.5, number 4. The Association of Environmental and Resource Economists. doi.org/10.1086/698859 ASEAN and ILO (2021). Regional Study on Green Jobs Policy Readiness in ASEAN. Final Report. ILO Thailand. ISBN 978-623-6945-15-5 BLS (2013). Green jobs overview. Monthly Labor Review. Dixie Sommers BLS. (n.d.). Measuring green jobs. U.S. Bureau of Labor Statistics (BLS). https://www.bls.gov/green/#definition (accessed on 06/03/2022) Cedefop (2012). Green skills and environmental awareness in vocational education and training. Synthesis report. Luxembourg: Publications Office of the European Union Cedefop (2018). Skills for green jobs: an update. Denmark. European Centre for the Development of Vocational Training Cedefop (2018). Skills for green jobs: an update. Estonia. European Centre for the Development of Vocational Training Cedefop (2018). Skills for green jobs: an update. Germany. European Centre for the Development of Vocational Training Duell, N. (2021) Greening of the labour market – impacts for the Public Employment Services. Small scale study. European Network of Public Employment Services EcoCanada (2016). Competencies for Environmental Professionals in Canada. National Occupational Standards. Environmental Careers Organization of Canada EcoCanada (2021). A National Sector Workforce Strategy to Address Environmental Talent Needs and Gaps. PPT Environmental Entrepreneurs (2020) CLEAN JOBS, BETTER JOBS An examination of clean energy job wages and benefits Gregg, C.; Strietska-Ilina, O.; Büdke, C. (2015) Anticipating skill needs for green jobs: a practical guide. Skills and Employability Branch Employment Policy Department. ILO. Geneva.

ILO (2011) Study of occupational and skill needs in green building: final report / International Labour Office, ILO Skills and Employability Department (EMP /SKILLS ). – Geneva: ILO , 2011 ILO (2011) Study of occupational and skill needs in renewable energy: final report / International Labour Office, ILO Skills and Employability Department (EMP /SKILLS ). – Geneva: ILO , 2011 ILO (2011). Comparative analysis of methods of identification of skill needs on the labour market in transition to the low carbon economy: final report / International Labour Office, ILO Skills and Employability Department (EMP /SKILLS ). - Geneva: ILO ILO (2013). Meeting skill needs for green jobs: Policy recommendations ILO. (2019) Skills for a greener future: A global view based on 32 country studies. Geneva: ILO. ILO. (2021) Global framework on core skills for life and work in the 21st century. Switzerland: 43
# The Treatment of Companies Under Cash Flow Taxes

# Some Administrative, Transition, and International Issues

by Emil M. Sunley

# Table of Contents

||Int|roduction|1|
|---|---|---|---|
|I.|Typ|es of Consumption Flow Taxes|2|
||A.|Subtraction-Method VAT|3|
||B.|Hall-Rabushk. Flat Tax and Bradford's Plan X|4|
||C.|Expenditure Tax|5|
||D.|Blueprints|6|
||E.|Meade Commission and the Aaron/Galper Proposals||
|II.|Out|line of Corporate Cash Flow Tax|10|
|III|Tax|Compliance and Administration|13|
||A.|Gaming the System|16|
||B.|Fringe Benefits and Business Entertainment|20|
||C.|Loss and Start-up Companies|21|
|IV|Tra|nsition Problems|21|
|V|Int|ernational Problems|25|
||A.|Inbound Investment|30|
||B.|Outbound Investment|33|
||C.|Exports and Imports|33|
|App|endix||35|
|Foo|tnote|s|42|

Emil M. Sunley is Director of Tax Analysis in the Washington, D.C. office of Deloitte Haskins & Sells
Henrekson, M., and D. Johansson. 2010. “Gazelles as Job Creators: A Survey and Interpretation of the Evidence.” Small Business Economics 35 (2): 227–44.

Hölzl, W., 2014. Persistence, survival, and growth: a closer look at 20 years of fast-growing firms in Austria. Industrial and corporate change, 23(1), pp.199-231.

Javorcik, B. 2004. “Does Foreign Direct Investment Increase the Productivity of Domestic Firms? In Search of Spillovers through Backward Linkages.” The American Economic Review 94 (3): 605–27.

Jiménez-Barrionuevo, M.M., García-Morales, V.J. and Molina, L.M., 2011. “Validation of an instrument to measure absorptive capacity”. Technovation, 31(5), pp.190-202.

Lipsey, R. E. 2004. “Home- and Host-Country Effects of Foreign Direct Investment.” In Challenges to Globalization: Analyzing the Economics, edited by Robert E. Baldwin and L. Alan Winters, 333– 82. University of Chicago Press.

Meyer, K. E., and E. Sinani. 2004. “Spillovers of Technology Transfer from FDI: The Case of Estonia.” Journal of Comparative Economics 32 (3): 445–66.

Meyer, K. E., and E. Sinani. 2009. “When and Where Does Foreign Direct Investment Generate Positive Spillovers? A Meta-Analysis.” Journal of International Business Studies 40 (7): 1075–94.

OECD (Organisation for Economic Co-Operation and Development). 2008. OECD Framework for the Evaluation of SME and Entrepreneurship Policies and Programmes. Paris: OECD Publishing.

OECD (Organisation for Economic Co-Operation and Development). 2010. What Governments Can Do to Make a Difference. OECD Studies on SMEs and Entrepreneurship High-Growth Enterprises. Paris: OECD Publishing.

Perea J, S. Rosenow, and E. von Uexkull, mimeo. “Natural Resource Proximity and FDI Motivations”. The World Bank.

Reyes, J-D. 2017. “Effects of FDI on High-Growth Firms in Developing Countries” in 2017|2018 Global Investment Competitiveness Report. The World Bank Group.

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# **2.2 Preparing the GIS Database**

This comprehensive study for Ahmedabad is one of the first to use the Geographic Information System (GIS) to make an inventory of public land. Ahmedabad has, through a single source of TPS,<sup>7</sup> authentic maps and ownership data of all the Final Plots.<sup>8</sup> The technology of Computer Aided Design software (AutoCAD Map 3D) was used to digitize the original TPS paper maps.

In a second step, these digital maps were overlaid on recent Ahmedabad Google Earth images from 2010. Maps were geo-coded (projection WGS_1984_UTM_Zone_43N) for a correct reading of latitude and longitude. This process permitted greater accuracy in registering the exact location of land owned by the Central Government, State Government and Ahmedabad Municipal Corporation (AMC).

To conduct such analysis, the data were extracted from GIS shape files listed below: AMC Boundary Railway Railway Track Buffer Ring Roads Major Roads FP Boundary Sabarmati River BRTS Canal Study Area Metro Phase 1 Gamtal TPS Boundary Metro Phase 2 GIDC Boundary Walled City In Annex II there is a listing of the GIS database “FP Boundary” for the field name abbreviations and their exact contents. Resulting data analysis is presented in succeeding sections.

> 7 Ballaney, Shirley: _The Town Planning Mechanism in Gujarat, India,_ World Bank Institute Washington DC, 2008.

> 8 Town Planning Schemes, as documented in Shirley Ballaney op.cit. and elsewhere are a form of land pooling which has been used in many countries throughout the world.. Town Planning Scheme is a plot reconstitution scheme in which Original plots (OP) are reconstituted into Final Plots (FP) after appropriating land for roads and other public amenities.

7
_Major Shareholders and Related Party Transactions_ (prior to 1999, it was Section 4 titled _Control of Registrant_ ) requires the ADR issuer to list all persons known to the company to own directly or indirectly more than 5% of the issued classes of stock. Further, the company is required to mention if there have been any significant changes in ownership structure in the past three years. Consequently, many companies provide detailed time-series information on major shareholdings in their 20-F statements. The source for the 20-F filings was both Lexis-Nexis and Hoovers Online. In all cases, the ownership information is collected for the end of the fiscal year or the closest possible date. This is because ownership information typically lags by about six months in the 20-F filings and by one or two years in the Company Handbooks and Worldscope.

I include companies for which it is possible to determine that all the major shareholders are listed or if it is possible to identify the shareholder who owns 50% or more of the cash flow rights. For cases in which the shareholder owns less than 50% and the rest is held by nominee accounts, I use the 20-F statements to decide whether or not to include the company in the sample<sup>4</sup> .

The ADR firms are divided into firms that are widely held and those with controlling ultimate owners. The procedure for identifying the ultimate owners is similar to the one in LLS (1999) and Claessens et. al. (2000). I use two cut-off levels, 20% and 10% to identify ultimate owners. An ultimate owner is therefore defined as someone who has 20% (or 10%) or more of the control votes of the company and is not controlled by anyone else. This sometimes involves tracking down ownership along multiple chains to find the major shareholders in the major shareholders and so on till we arrive at an ultimate owner who is not controlled by anyone else. The identity of the ultimate owners is further classified into five types: widely held corporation, widely held financial institution, families (or individuals with large stake), state (or government or kingdom) and miscellaneous. The miscellaneous category typically includes cooperatives,

> 4 This is different from Claessens et al (2000) who actually drop such companies. My justification for including it is that I use 20-F statements to verify whether the nominee accounts are widely held or in the hands of a controlling shareholder.

14
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Policy Research Working Paper 8084

# **Abstract**

This paper examines the exposure, vulnerability, and ability of households in Colombo, Sri Lanka, to respond to floods, and brings out significant policy implications. The study used detailed questionnaire-based surveys to obtain data on households, to understand the vulnerability and impacts of the severe floods of November 2010 and recurrent floods since then. Households that were selected for the surveys were located in and around flooding spots in the city. The study finds that the floods have imposed a significant burden on poor households. Poor and nonpoor households have suffered damages to the structure of their houses, household assets and appliances, and vehicles. With recurrent floods, they continue to bear the cost of damages as well as short-term measures to cope with floods. For poor families, these costs are borne through very limited resources and borrowing from informal sources, compared with the nonpoor who have more savings in financial form and greater access to formal sources of credit. Poor families tend to invest all their earnings in their home, furniture, and utensils, which suffer the most during floods. In addition, households suffer indirect impacts due to non-availability of transport, power, drinking water, food, and essential supplies. They also tend to lose workdays, which leads to loss of income and productivity. Many poor families have considered relocation to flood-free areas, but they lack the financial resources for the move. If the government offers such a scheme, many would be willing to take it up, if factors like job opportunities, clean surroundings, access to medical facilities, transportation, and good social networks are ensured in the new locations.

This paper is a product of the Global Facility for Disaster Reduction and Recovery (GFDRR), and a background paper to the GFDRR and World Bank report “Unbreakable: Building the Resilience of the Poor in the Face of Natural Disaster.”. It is part of a larger effort by the World Bank to provide open access to its research and make a contribution to development policy discussions around the world. Policy Research Working Papers are also posted on the Web at http://econ.worldbank. org. The author may be contacted at archana.patankar09@gmail.com.

_The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the views of the International Bank for Reconstruction and Development/World Bank and its affiliated organizations, or those of the Executive Directors of the World Bank or the governments they represent._ Produced by the Research Support Team