Abstract

The aim of this paper is to study the possible change in the individual behaviour of the Spanish taxpayers about the willingness to declare capital gains, Lock-in effect, as a consequence of variations in the marginal rate. To do this, a two stages model is proposed to analyze which variables affect both the probability, and the amount, of capital gains declarations. The empirical analysis was performed using the Spanish annual personal income tax return sample from IEF-AEAT (Institute of Fiscal Studies and the Tax Department) for the periods 2006 and 2007, corresponding to the years before and after the reform that introduced a Dual Income Tax in Spain, with a flat tax rate for capital gains tax. The main results show that a 1% increase in the capital gains tax rate reduces the probability of declaring capital gains by around 7.51% (2006) and 8.19% (2007), and the amount of capital gains by around 3.91% (2006) and 5.79% (2007).

Abstract

The main goal of this study is to determine the role of indirect taxation in the Spanish publishing industry. The work includes: a) a tax treatment comparison of books in Spain with respect to the rest of European countries; b) an evaluation of the options for exemption or reduction of the value added tax (VAT) applied to books; and c) an analysis of book fixed-price policy applied in Europe. The conclusions of this work point, firstly, to the need to harmonize VAT in the EU space; secondly, to reduce tax discrimination between formats and, thirdly, to emphasize that indirect taxation could be converted, if it is not already, in a brake for the development of the digitization of the Spanish publishing industry.

Abstract

Part 2: Design, Manufacturing and Production Management; International audience; Electric vehicles offer a potential low-carbon alternative to today’s gasoline-powered vehicles. In line with global trends, Singapore has expressed interest in promoting electric vehicles on its shores. This paper investigates the effects of taxation, namely tax rebates and carbon taxes, on the penetration of electric vehicles in Singapore. A consumer vehicular preference model was constructed using the logit model, and the effects on the economy determined through an input–output analysis. Multi-objective optimization is then used to find the optimal tax rate. Results indicate that a tax rebate minimizes the negative impact on the economy at a low penetration rate of electric vehicles, whereas a carbon tax minimizes the negative impact on GDP at a high penetration rate of above 60%. Document type: Part of book or chapter of book

Abstract

Fiscal policy refers to the use of government spending and tax policies to influence economic conditions. Fiscal policies have existed for a long time, with major debates between proponents of the Keynesian model and the monetary approach. Fiscal policy can either be contractionary, expansionary, or neutral. This study analyses the literature on the effect of the national budget on banks performance; effect of Taxation on bank performance; and the effect of public expenditure on performance of Banks in Kenya. The literature shows that government expenditure is a good fiscal policy measure in terms of the positive performance of commercial banks however, there is a need to consider the issue of corruption that negatively affects the expenditure controls that are crucial in an effective government approach in terms of the way the authorities ensure effective expenditure programs. Budget surplus and the positive impact on banks’ lending, no direct or clear argument shows the role of budgeting on commercial banks' performance. Taxes also play an important role in developing infrastructures that are crucial for the improved performance of firms. However, gaps exist in literature that needs to explored by further studies.

Abstract

This dissertation studies both theoretically and empirically how the allocation of subsidiesmight matter for economic outcomes in a two-sided market framework.The first chapter establishes a non-neutrality result with respect to subsidy allocation in the price theory of two-sided markets with membership externalities building on the works of Rochet and Tirole (2006) and Armstrong (2006). There are many examples of two-sided (or more generally, multi-sided) markets in which two (or more) groups of agents interact via intermediaries or “platforms.” The distinguishing feature of these markets is the presence of cross-group externalities: the benefit enjoyed by a member on one side depends on the number of members on the other side of the market. Examples of two-sided markets include: video game platforms, news media, credit cards, and electric vehicles. A basic feature of two-sided markets established by Rochet and Tirole (2006) is the non-neutrality of price structure, that is, how usage fees or membership prices are allocated between the two sides of the market have an impact on economic outcomes like buyer demand.In this work, I consider whether this non-neutrality in the price allocation carries over to the case of subsidies (or taxes) in two-sided markets. Specifically, I develop a stylistic two-sided market model to show that subsidies to the different sides of the market are non-neutral, in the sense that one dollar spent on subsidies given to one side of the market has a different economic impact as the same amount spent on subsidies given to end-users on the other side of the market. This result is driven by a key feature of two-sided markets: the positive network externalities between the two sides of the market. The non-neutrality of the allocation of subsidies has important implications for such quickly growing industries like the electric vehicle market in which currently most governments are subsidizing both sides of the market. Therefore, if we really want to learn where to give subsidies to achieve the policy goal of increased electric vehicle sales the findings of this chapter show that we need to empirically estimate the impact of price subsidies to buyers versus direct subsidies to charging stations using a two-sided market framework.The second chapter, building on the non-neutrality result of the first chapter, provides an empirical analysis of the impact of electric vehicle incentives on electric vehicle adoption that highlights the importance of accounting for the network externalities present in this market. I model the electric vehicle sector as a two-sided market with network externalities to determine which side of the market is more efficient to subsidize depending on key vehicle demand and charging station supply primitives. I use new, large-scale vehicle registry data from Norway to empirically estimate the impact that different subsidies have on electric vehicle adoption when network externalities are present. I present descriptive evidence to show that electric vehicle purchases are positively related to both consumer price and charging station subsidies. I then estimate a structural model of consumer vehicle choice and charging station entry, which incorporates flexible substitution patterns and allows me to analyze out-of-sample predictions of electric vehicle sales.In particular, the counterfactuals compare the impact of direct purchasing price subsidies to the impact of charging station subsidies. I find that between 2010 and 2015 every 100 million Norwegian kroner (around 12.39 million USD) spent on station subsidies alone resulted in 835 additional electric vehicle purchases compared to a counterfactual in which there are no subsidies on either side of the market. The same amount spent on price subsidies led to only an additional 387 electric vehicles being sold compared to a simulated scenario where there were no electric vehicle incentives. However, the relation inverts with increased spending, as the impact of station subsidies on electric vehicle purchases tapers off faster.