BA 210 Introduction to Microeconomics
... raise the price paid by consumers and reduce the price received by producers, driving a wedge between the two.The incidence of the tax—how the burden of the tax is divided between consumers and producers—does not depend on who officially pays the tax. 2. The incidence of an excise tax depends on the ...
... raise the price paid by consumers and reduce the price received by producers, driving a wedge between the two.The incidence of the tax—how the burden of the tax is divided between consumers and producers—does not depend on who officially pays the tax. 2. The incidence of an excise tax depends on the ...
PDF
... collection and to expand the tax base. The most notable policy changes include the establishment of the Uganda Revenue Authority (URA) in 1991, the replacement of sales tax with VAT in 1996, the introduction of the new income tax structure in 1997, in which personal income tax rates were reduced, a ...
... collection and to expand the tax base. The most notable policy changes include the establishment of the Uganda Revenue Authority (URA) in 1991, the replacement of sales tax with VAT in 1996, the introduction of the new income tax structure in 1997, in which personal income tax rates were reduced, a ...
Taxation and Public Policy Towards Small Firms: A Review
... As a starting point the findings of two papers are presented. Chen Lee and Mintz have argued that small firms in a number of OECD countries are subject to sub-optimal tax systems that do not address market failures that hamper the growth of small firms.1 These market failures are generally taken to ...
... As a starting point the findings of two papers are presented. Chen Lee and Mintz have argued that small firms in a number of OECD countries are subject to sub-optimal tax systems that do not address market failures that hamper the growth of small firms.1 These market failures are generally taken to ...
Criteria for Revenue Recognition (Contd.)
... firm recognizes revenues (product costs). Costs not directly associated with revenues be recognized as expenses in the period when firm consumes the services or benefits of costs in operations (period costs). ...
... firm recognizes revenues (product costs). Costs not directly associated with revenues be recognized as expenses in the period when firm consumes the services or benefits of costs in operations (period costs). ...
SUPPLY-SIDE ECONOMICS: “VOODOO ECONOMICS” OR LASTING CONTRIBUTION?
... the effect of tax changes on revenues, what were their sources of information and inspiration, and whether their work was based on serious analysis or built on the quicksand of wishful thinking. I pay special attention to what was said during the period leading up to passage of the 1981 tax cut. Int ...
... the effect of tax changes on revenues, what were their sources of information and inspiration, and whether their work was based on serious analysis or built on the quicksand of wishful thinking. I pay special attention to what was said during the period leading up to passage of the 1981 tax cut. Int ...
1. Consumer Theory (Cont.) 1.5- Consumer Choice 1.6
... must come down in order to induce consumers to buy the extra amount of good put in the market. Since the quantity increases but the price decreases, the firm to would be interested in knowing what would happen to its total revenue. • To establish the relation between PDUJLQDOUHYHQXH05 and elasti ...
... must come down in order to induce consumers to buy the extra amount of good put in the market. Since the quantity increases but the price decreases, the firm to would be interested in knowing what would happen to its total revenue. • To establish the relation between PDUJLQDOUHYHQXH05 and elasti ...
Environmental Policy in the Presence of an Informal Sector
... of measurement methods, Schneider (2011) reports that the informal economy was 8.4% of GDP in the U.S. and averaged 16.1% of GDP in 21 OECD countries in 2004. Even larger values are reported in developing economies, with 30.4% of GDP in Asia and 43.2% of GDP in Africa categorized as informal. Our c ...
... of measurement methods, Schneider (2011) reports that the informal economy was 8.4% of GDP in the U.S. and averaged 16.1% of GDP in 21 OECD countries in 2004. Even larger values are reported in developing economies, with 30.4% of GDP in Asia and 43.2% of GDP in Africa categorized as informal. Our c ...
Designing an Optimal Personal Income Tax Rate Structure: Goals
... all. Only after these goals have been established can they be applied to the specific objectives of tax policy. This assures that the objectives of tax policy are always consistent with the underlying goals of society. A. Approaches to Social Choice Decision-making There are a variety of theories of ...
... all. Only after these goals have been established can they be applied to the specific objectives of tax policy. This assures that the objectives of tax policy are always consistent with the underlying goals of society. A. Approaches to Social Choice Decision-making There are a variety of theories of ...
National Income and the Price Level in the Short Run
... •Shifts in AD also known as Aggregate Demand shocks (fig 31.8) •Shifts in SRAS also known as Aggregate supply shocks (fig 31.12) •These shocks change the equilibrium level of income and price. ...
... •Shifts in AD also known as Aggregate Demand shocks (fig 31.8) •Shifts in SRAS also known as Aggregate supply shocks (fig 31.12) •These shocks change the equilibrium level of income and price. ...
The Effect of Sales Tax Rates on Food Exemptions
... levels can have higher sales tax rates without increasing the burden of the tax on their own citizens. As a result, I would expect that states in which tourism is an important fraction of the state economy will have higher sales tax rates. A variable that measures tourism in a state should therefor ...
... levels can have higher sales tax rates without increasing the burden of the tax on their own citizens. As a result, I would expect that states in which tourism is an important fraction of the state economy will have higher sales tax rates. A variable that measures tourism in a state should therefor ...
Taxes
... loss because they discourage some mutually beneficial transactions. Taxes also impose administrative costs — resources used to collect the tax. 4. An excise tax generates revenue for the government, but lowers total surplus. The loss in total surplus exceeds the tax revenue, resulting in a deadweigh ...
... loss because they discourage some mutually beneficial transactions. Taxes also impose administrative costs — resources used to collect the tax. 4. An excise tax generates revenue for the government, but lowers total surplus. The loss in total surplus exceeds the tax revenue, resulting in a deadweigh ...
IOSR Journal of Economics and Finance (IOSR-JEF)
... growth keeps pace with that of Gross Domestic Product (GDP) without frequent discretionary changes.Moreover, the study of tax elasticity and buoyancy is also useful for revenue forecasting. The fiscal deficit is the core issue of most of the developing countries over the past several decades, and th ...
... growth keeps pace with that of Gross Domestic Product (GDP) without frequent discretionary changes.Moreover, the study of tax elasticity and buoyancy is also useful for revenue forecasting. The fiscal deficit is the core issue of most of the developing countries over the past several decades, and th ...
Why Do Americans Work So Much More Than Europeans?
... Europeans. Using labor market statistics from the Organisation for Economic Co-operation and Development, I find that Americans on a per person aged 15-64 basis work in the market sector 50 percent more than do the French. This was not always the case. In the early 1970s, Americans allocated less ti ...
... Europeans. Using labor market statistics from the Organisation for Economic Co-operation and Development, I find that Americans on a per person aged 15-64 basis work in the market sector 50 percent more than do the French. This was not always the case. In the early 1970s, Americans allocated less ti ...
general equilibrium tax incidence
... What does it mean for capital supply to be elastic? Think of capital investments already made as irretrievable; that is why capital supply is inelastic in the short run. In the long run, however, restaurants need new infusions of capital to stay afloat. The elasticity of capital supply in the long r ...
... What does it mean for capital supply to be elastic? Think of capital investments already made as irretrievable; that is why capital supply is inelastic in the short run. In the long run, however, restaurants need new infusions of capital to stay afloat. The elasticity of capital supply in the long r ...
The Horizontally s‐shaped laffer curve
... To explore these issues, we consider a prototypical neoclassical model along the lines of Aiyagari and McGrattan (1998) and Flodén (2001). In this economy, households are subject to persistent, uninsurable, idiosyncratic productivity shocks and face a borrowing constraint. The model includes distor ...
... To explore these issues, we consider a prototypical neoclassical model along the lines of Aiyagari and McGrattan (1998) and Flodén (2001). In this economy, households are subject to persistent, uninsurable, idiosyncratic productivity shocks and face a borrowing constraint. The model includes distor ...
key assumptions - Pinellas County
... In determining the values as of January 1, 2013, which serve as the basis for FY2014 calculations, the Property Appraiser will factor in the impact of mortgage foreclosures. Foreclosures do not have a significant impact on current year collections of taxes levied because of the recovery mechanisms f ...
... In determining the values as of January 1, 2013, which serve as the basis for FY2014 calculations, the Property Appraiser will factor in the impact of mortgage foreclosures. Foreclosures do not have a significant impact on current year collections of taxes levied because of the recovery mechanisms f ...
ECONOMICS
... consumer surplus on all the units that would be produced with competition but are not produced under monopoly. consumer surplus on all units that would be produced with competition, less the monopoly profits. sum of the producer and consumer surplus under monopoly. largest of all the above. ...
... consumer surplus on all the units that would be produced with competition but are not produced under monopoly. consumer surplus on all units that would be produced with competition, less the monopoly profits. sum of the producer and consumer surplus under monopoly. largest of all the above. ...
Impact of Agriculture Prices on Sales Tax Revenue, House
... forelse every 1%equal. decrease (increase) in agricultural prices there is a corresponding $7,794,029 decrease (increase) in state sales tax receipts, all else being Energy prices and sales tax receipts exhibit a negative, but statistically insignificant relationship at the state level. Intuitively, ...
... forelse every 1%equal. decrease (increase) in agricultural prices there is a corresponding $7,794,029 decrease (increase) in state sales tax receipts, all else being Energy prices and sales tax receipts exhibit a negative, but statistically insignificant relationship at the state level. Intuitively, ...
NBER WORKING PAPER THE ALLOCATION OF CAPITAL TAX EFFECTS AND AMONG
... Even in the absence of explicit household—specific taxes, this condition will ...
... Even in the absence of explicit household—specific taxes, this condition will ...
Taxation and Government Intervention
... surplus from one group to another • Lobbying for price controls, which transfer surplus from one group to another, is an example of rent-seeking behavior • Individuals spend money and use resources to lobby governments to institute policies that increase their own surplus • Public choice economists ...
... surplus from one group to another • Lobbying for price controls, which transfer surplus from one group to another, is an example of rent-seeking behavior • Individuals spend money and use resources to lobby governments to institute policies that increase their own surplus • Public choice economists ...
Econ 384 Chapter17b
... Like Pigouvian taxes, we need information on optimal MEC, pollution and the relation between pollution and MEC to accurately issue permits. Permits do, however, have advantages over Pigouvian taxes: 1) Permits directly chose the amount of pollution, instead of indirectly (and possibly incorrectly) ...
... Like Pigouvian taxes, we need information on optimal MEC, pollution and the relation between pollution and MEC to accurately issue permits. Permits do, however, have advantages over Pigouvian taxes: 1) Permits directly chose the amount of pollution, instead of indirectly (and possibly incorrectly) ...
NBER WORKING PAPER SERIES HOW DO LAFFER CURVES DIFFER ACROSS COUNTRIES?
... suggest that the U.S. could increase tax revenues considerably more than the EU-14, and that conversely the degree of self-financing of tax cuts is much larger in the EU-14 than in the U.S. While we have calculated results for individual European countries, the focus there was directed towards a com ...
... suggest that the U.S. could increase tax revenues considerably more than the EU-14, and that conversely the degree of self-financing of tax cuts is much larger in the EU-14 than in the U.S. While we have calculated results for individual European countries, the focus there was directed towards a com ...
Chapter 7 Problem 2 - the School of Economics and Finance
... always be found. All mutually beneficial transactions have taken place. -i.e. if the market price is below the equilibrium price – Excess demand. -A transaction can always take place to obtain more economic surplus and none of the buyers or sellers is harmed by this transaction, i.e. increase the pr ...
... always be found. All mutually beneficial transactions have taken place. -i.e. if the market price is below the equilibrium price – Excess demand. -A transaction can always take place to obtain more economic surplus and none of the buyers or sellers is harmed by this transaction, i.e. increase the pr ...
Negative Externalities
... level of production, Qi, is not too far from the competitive level of production, Qc. Therefore, the inefficiency associated with a production externality may be small, and it may not be worth regulating the externality. When demand is elastic, the socially optimal level of production, Qe, is farthe ...
... level of production, Qi, is not too far from the competitive level of production, Qc. Therefore, the inefficiency associated with a production externality may be small, and it may not be worth regulating the externality. When demand is elastic, the socially optimal level of production, Qe, is farthe ...
pse06 buettner 2 2429377 en
... Following Dunning’s (1977) “Ownership, Location, and Internationalization” approach the international location decision of a company is part of a more general set of decisions directed at the company’s international activities involving export, import, location, as well as production decisions (see ...
... Following Dunning’s (1977) “Ownership, Location, and Internationalization” approach the international location decision of a company is part of a more general set of decisions directed at the company’s international activities involving export, import, location, as well as production decisions (see ...
Laffer curve
In economics, the Laffer curve is one possible representation of the relationship between rates of taxation and the hypothetical resulting levels of government revenue. The Laffer curve claims to illustrate the concept of taxable income elasticity—i.e., taxable income will change in response to changes in the rate of taxation. It postulates that no tax revenue will be raised at the extreme tax rates of 0% and 100% and that there must be at least one rate where tax revenue would be a non-zero maximum.The Laffer curve is typically represented as a graph which starts at 0% tax with zero revenue, rises to a maximum rate of revenue at an intermediate rate of taxation, and then falls again to zero revenue at a 100% tax rate. The shape of the curve is uncertain and disputed.One potential result of the Laffer curve is that increasing tax rates beyond a certain point will be counter-productive for raising further tax revenue. A hypothetical Laffer curve for any given economy can only be estimated and such estimates are controversial. The New Palgrave Dictionary of Economics reports that estimates of revenue-maximizing tax rates have varied widely, with a mid-range of around 70%.Although economist Arthur Laffer does not claim to have invented the Laffer curve concept, it was popularized in the west with policymakers following an afternoon meeting with Ford Administration officials Dick Cheney and Donald Rumsfeld in 1974 in which he reportedly sketched the curve on a napkin to illustrate his argument. The term ""Laffer curve"" was coined by Jude Wanniski, who was also present at the meeting. The basic concept was not new; Laffer himself notes antecedents in the writings of the 14th century Arab Muslim social philosopher Ibn Khaldun.