Winners and losers from financial derivatives use: evidence from community banks

This article provides empirical evidence on how profitability of small community banks was affected by derivatives use before and after the 2008 crisis. We use an endogenous switching regressions model to estimate the sensitivity of bank profitability to risks and control for the endogenous choice to use or not to use derivatives. We then compute counterfactual effects and show how profitability would have looked without derivatives use for banks that used derivatives and how it would have looked with derivatives for banks that did not use derivatives. The results show that derivatives helped reduce the sensitivity of profitability to credit risks and improved profitability for most specialists. However, for the largest number of banks which are non-user non-specialists, devivates use would have resulted in lower return on assets had they used derivatives post 2008. Therefore, our evidence suggests that implementation of the Volcker Rule, imposing high compliance costs on community banks and, thus, discouraging hedging, may have a negative impact on profits of specialists banks but, overall, a neutral effect on profits in the community banks industry as a whole.     

The determinants of tax morale in comparative perspective: Evidence from European countries

Applying a multilevel model, we argue that tax morale is a function of individual- and contextual-level variables. Evidence presented in this article, based on the 2004–2005 European Social Survey and information on institutional settings, shows that tax morale in European countries varies systematically with socio-demographic characteristics, personal financial experiences, political attitudes, on the one hand, and regional GDP and tax arrangements on the other hand. Moreover, cross-national differences in tax morale are also related to ethnic and linguistic fractionalizations.     

Tax morale affects tax compliance: Evidence from surveys and an artefactual field experiment

Our working hypothesis is that cross-cultural differences in tax compliance behavior have foundations in the institutions of tax administration and citizen assessment of the quality of governance. Tax compliance being a complex behavioral issue, its investigation requires use of a variety of methods and data sources. Results from artefactual field experiments conducted in countries with substantially different political histories and records of governance quality demonstrate that observed differences in tax compliance levels persist over alternative levels of enforcement. The experimental results are shown to be robust by replicating them for the same countries using survey response measures of tax compliance.     

Outsourcing of accounting tasks and tax management: evidence from a corporate tax rate change

The aim of this article is to investigate if small firms react to a national corporate tax rate reduction by managing their taxable income. In contrast to previous studies, we also analyse whether outsourcing of accounting tasks affects the magnitude of the reaction. Based on a sample of Finnish firms and measures of earnings management, evidence is provided that firms with an internalized accounting function are more active tax planners in this context. This study suggests that outsourcing of accounting tasks increases the corporate tax reporting quality.     

Income shifting, investment, and tax competition: theory and evidence from provincial taxation in Canada

We study corporate income taxation when firms operating in multiple jurisdictions can shift income using tax planning strategies. Because income of corporate groups is not consolidated for tax purposes in Canada, firms may use financial techniques, such as lending among affiliates, to reduce subnational corporate taxes. A simple theoretical model shows how income shifting affects real investment, government revenues, and tax base elasticities, depending on whether firms must allocate income to provinces or not. We then analyze data from administrative tax records to compare the behavior of corporate subsidiaries that may engage in income shifting to comparable firms that must use the statutory allocation formula to determine their taxable income in each province. The evidence suggests that income shifting has pronounced effects on provincial tax bases. According to our preferred estimate, the elasticity of taxable income with respect to tax rates for “income shifting” firms is 4.9, compared with 2.3 for other, comparable firms.     

The economic impact of insulin-related hypoglycemia in Denmark: an analysis using the Local Impact of Hypoglycemia Tool

Aims: To estimate the direct cost of hypoglycemia in insulin-treated adults with type 1 diabetes (T1DM) and type 2 diabetes (T2DM) in Denmark.

Materials and methods: The Local Impact of Hypoglycemia Tool (LIHT) was used to estimate the costs associated with insulin-related hypoglycemia. Average utilization of healthcare resources, including the costs of pre-hospitalization, hospital admission, healthcare professional contact and follow-up, glucose/glucagon, and extra SMBG tests to monitor blood glucose following an episode, was used to calculate an average cost per severe and per non-severe hypoglycemic episode. The cost per episode was then applied to the rates of severe and non-severe hypoglycemia in people with T1DM and T2DM in Denmark.

Results: The direct cost of insulin-related hypoglycemia in Denmark is DKK 96.2 million per year, which equates to EUR 12.9 million. For people with T1DM prone to severe hypoglycemia (defined as having ≥2 severe episodes in the past year), the cost per person per year increases by DKK 4,155 compared with the T1DM population average, and for people with T2DM prone to non-severe hypoglycemia (defined as having ≥1 non-severe episode in the last 4 weeks), the cost increases by DKK 647 per person per year compared with the T2DM population average.

Conclusions: The LIHT highlights the substantial economic burden of insulin-related hypoglycemia in Denmark, and provides a means to estimate the savings that could be made by lowering hypoglycemia rates. For example, the costs associated with using a new insulin or introducing a patient education program could be offset with the cost saving from reducing hypoglycemia.     

包税制的兴起与衰落:交易费用与征税合同的选择

在 1 9世纪甚至 2 0世纪初以前 ,包税制都是许多国家赖以征税的一个重要机制。但是 ,对于它的研究一直很少 ,也不深入。最近 ,在欧美等国 ,一种变形的包税制又开始出现。在我国的某些地方 ,税务机构也尝试着将某些税收承包给非政府机构。因此 ,研究历史上的包税制也具有一定的现实意义。本文运用交易费用理论和历史社会学的研究成果探索了包税制在近现代史上兴起和衰落的原因。     

Leading-by-example and signaling in voluntary contribution games: an experimental study

We report experimental results on the effect of leadership in a voluntary contribution game. Consistent with recent theories we find that leading-by-example increases contributions and earnings in an environment where a leader has private information about the returns from contributing (Hermalin in Am Econ Rev 88:1188–1206, 1998; Vesterlund in J Public Econ 87:627–657, 2003). In contrast the ability to lead-by-example has no effect on total contributions and earnings when such returns are commonly known. In our environment the success of leadership therefore appears to be driven by signaling rather than by nonpecuniary factors such as reciprocity. This paper was started while the authors were visiting the Harvard Business School during the fall of 2000. We are grateful for their hospitality and financial support. Vesterlund acknowledges support from the National Science Foundation and Potters from the Royal Netherlands’ Academy of Arts and Sciences. We thank Henrik Orzen for assistance in conducting the experiment. We also thank David Cooper and an anonymous referee who helped us improve the paper. Finally we thank Chris Anderson, Jim Andreoni, John Duffy, Simon Gaechter, Ernan Haruvy, Muriel Niederle, Jack Ochs, Elke Renner, Al Roth, participants at ESA-meetings (Barcelona, 2001), the Leadership and Social Interactions Workshop (Lyon, 2003), SITE (Stanford, 2004) and seminar participants at Alabama, CMU, Duke, Keele, Maryland, Nottingham, NYU, Pittsburgh, OSU, and York for valuable comments.     

Intergovernmental fiscal transfers and local tax efforts: evidence from provinces in China

This paper explores the incentive effects of total central fiscal transfers and its components – tax rebates and equalization grants – on provincial tax efforts in China. Our theoretical model predicts negative impacts on provincial tax efforts from both total fiscal transfers and equalization grants, while the effects of tax rebates are theoretically unclear. Using Chinese provincial panel data from 1995 to 2007, our empirical study provides significant evidence on the theoretical implications.     

Transfer payments from the central government to the local governments and the local governments' efforts on taxation: taking China as an example

The influence of the transfer payments from the central government to the local governments on the local governments' efforts on taxation must be taken into consideration by every country for the design of the transfer payments. Based on the theoretical analysis on the influence of the transfer payments from the central government to the local governments on the local governments'payments, this paper indicates that the local governments'efforts on taxation depends on the demand elasticity of the district for public goods. It increases with the increase of the elasticityλ.Judge the degree of the local government's efforts on taxation by measureλ. After an empirical analysis on the transfer payments from the central government to the local governments from 2000 to 2004, thins paper gets the conclusion that the local governments'efforts on taxation abates with the increase of supporting payments or with the increase of the ratio of transfer payments to local willing public payments. Under specific circumstances, the higher the ratio of transfer payments to the local fiscal expenditure is, the smaller the local governments' efforts on taxation is under the central payments, whereas the higher the local income is, the higher the efforts is under the eentral payments. Based on this. this paper gives the meanmg of its corresponding policies.     

转型中的分权与公共品供给:基于中国经验的实证研究

文章首先从理论上阐述了中国转型中分权与公共品供给的内在联系;进而利用中国省级面板数据,构建动态结构模型,在控制住财政分权与公共品内生关系基础上,运用系统广义矩估计方法(SYS GMM)检验证实了理论分析的推论:分权对"硬"公共品供给有明显加速作用,时"软"公共品供给有明显抑制作用;经济较差的地区,分权速度会加快,其中人口密度较高的地区分权速度要比人口密度低的地区快;人口密度较高、经济较好的地区分权速度会减弱;分权程度变化与政府行政效率间存在显著正相关关系."发展型政府"更偏好"硬"公共品供给,因而更偏好高分权.     

Transfer payments from the central government to the local gov- ~ i in ernments and the local governments efforts on taxation,taking China as an example

The influence of the transfer payments from the central government to the local governments on the local governments＇ efforts on taxation must be taken into consideration by every country for the design of the transfer payments. Based on the theoretical analysis on the influence of the transfer payments from the central government to the local governments＇ on the local governments＇ payments＇, this paper indicates that the local governments＇ efforts on taxation depends on the demand elasticity of the district for public goods, It increases with the increase of the elasticity. Judge the degree of the local govet：nment＇s efforts on taxation by measure 2. After an empirical analysis on the transJer payments from the central government to the local governments＇from 2000 to 2004, this paper gets the con- clusion that the local governments＇ effbrts on taxation ctbates with the increase of supporting payments or with the increase of the ratio of transfer payments to local wiliing public paymentS. Under speCific Circumstances, the higher the ratio of transfer payments to the local fiscal expenditure is. the smaller the local governments＇ efforts＇ on taxation is＂ under the central payments, whereas＇ the higher the local income is, the higher the efforts is under the central pav- ments. Based on this＇, this paper gives the meaning of its eOrresponding pofiCieS. ＂     

Comparing Tax and Tax Reallocation Payments in Financing Rail Noise Abatement Programmes: Results from a Stated Choice Valuation Study in Italy

The paper examines the use of stated choice experiments (SC) to assess the economic value of alternative rail noise reduction interventions on the Brennero railway in Italy. The paper formally tests the econometric robustness of the SC estimates under three payment regimes: (a) a regional tax, where consumers must trade off welfare gains due to noise reduction for part of their income; (b) a transport tax reallocation scheme, where consumers must trade off a part of the tax payments that are currently spent on the public transport sector; and (c) an administration tax reallocation scheme, where consumers must trade off a part of the tax payments that are currently spent on the administration sector. The test results are varied. On the one hand, the SC estimates are found to be statistically different for the tax reallocation and the tax introduction regimes. This confirms previous valuation research results, and thus reiterates the hypothesis that states the inequality between marginal values of private income and public money. On the other hand, the SC estimates are not found to be statistically different for the two proposed tax reallocation regimes, suggesting that, in the case study investigated here, the marginal value of public money does not depend upon the budget source.     

Tax competition and tax structure in open federal economies: Evidence from OECD countries with implications for the European Union

Tax competition arguments suggest that governments that operate in an open economy (such as local governments) should not and will not rely on non-benefit taxes, such as the income tax. Yet we observe reliance on income taxes by local governments in many countries, and such reliance changes over time. Evidence from a panel data set of 13 OECD countries over the period 1975-1984 suggests that competition between levels of government (resulting in a vertical fiscal externality) and between governments at the same level (resulting in a horizontal fiscal externality) provide some economic rationale for these changes. Moreover, the evidence indicates that the vertical and horizontal fiscal externalities interact. These results have some interesting implications for fiscal policy in the European Union, particularly as the EU continues to evolve. One implication for the EU is that enlargement that increases tax base disparities within the EU (and is not accompanied by an EU-level income tax) will tend to lower national income tax rates, although this must be qualified because it also depends on the mobility of the population. A second implication is that fiscal expansion of the EU to include an EU-level income tax may tend to lower the reliance of national governments on income taxes through the vertical externality, but may also tend to equalize tax bases across countries, and so increase reliance on national income taxes through the horizontal externality.     

Modelling inflation shifts and persistence in Tunisia: perspectives from an evolutionary spectral approach

This article examines the dynamic characteristics of the inflation rate in Tunisia over the last two decades, and particularly following the onset of the Arab Spring in 2010 which causes distortions in this country’s monetary policy. We focus on the two specific dimensions of the Tunisian inflation rate: inflation regimes and persistence. We tackle this issue by adopting an evolutionary spectral approach, initially proposed by Priestley and Tong (1973). Our main findings indicate a stable inflation regime in the last 10 years, with an average inflation rate of around 5.5%. It is also found that the Tunisian inflation experienced a high degree of inertia which reflects its gradual responses to shocks. We also discuss the policy implications of these results, which typically require policy-makers to implement sound institutional reforms to reduce inflation.     

The water footprint of energy from biomass: A quantitative assessment and consequences of an increasing share of bio-energy in energy supply

This paper assesses the water footprint (WF) of different primary energy carriers derived from biomass expressed as the amount of water consumed to produce a unit of energy (m³/GJ). The paper observes large differences among the WFs for specific types of primary bio-energy carriers. The WF depends on crop type, agricultural production system and climate. The WF of average bio-energy carriers grown in the Netherlands is 24 m³/GJ, in the US 58 m³/GJ, in Brazil 61 m³/GJ, and in Zimbabwe 143 m³/GJ. The WF of bio-energy is much larger than the WF of fossil energy. For the fossil energy carriers, the WF increases in the following order: uranium (0.1 m³/GJ), natural gas (0.1 m³/GJ), coal (0.2 m³/GJ), and finally crude oil (1.1 m³/GJ). Renewable energy carriers show large differences in their WF. The WF for wind energy is negligible, for solar thermal energy 0.3 m³/GJ, but for hydropower 22 m³/GJ. Based on the average per capita energy use in western societies (100 GJ/capita/year), a mix from coal, crude oil, natural gas and uranium requires about 35 m³/capita/year. If the same amount of energy is generated through the growth of biomass in a high productive agricultural system, as applied in the Netherlands, the WF is 2420 m³. The WF of biomass is 70 to 400 times larger than the WF of the other primary energy carriers (excluding hydropower). The trend towards larger energy use in combination with an increasing contribution of energy from biomass will enlarge the need for fresh water. This causes competition with other claims, such as water for food.     

The bumpy road of biomass gasification in the Netherlands: Explaining the rise and fall of an emerging innovation system

In this paper, the concept of System Functions of Innovation Systems is applied to provide an explanation of the success or failure of an emerging technology, i.e. biomass gasification, with empirical data on the evolution of this technology in the Netherlands during 1980-2004. A new list of System Functions has been developed lately and is used to identify the most relevant events in the evolution of the Biomass Gasification Innovation System. We show that a structural misalignment occurred between the institutional framework within which the technology could have been developed and the technical requirements of the technology. Finally, the absence of System Functions such as the guidance of the search, resource allocation and advocacy coalition explains the failure of this technology over time.     

Cost drivers for breast,lung, and colorectal cancer care in a commercially insured population over a 6-month episode: an economic analysis from a health plan perspective

Aims: In the absence of clinical data, accurate identification of cost drivers is needed for economic comparison in an alternate payment model. From a health plan perspective using claims data in a commercial population, the objective was to identify and quantify the effects of cost drivers in economic models of breast, lung, and colorectal cancer costs over a 6-month episode following initial chemotherapy.

Research design and methods: This study analyzed claims data from 9,748 Cigna beneficiaries with diagnosis of breast, lung, and colorectal cancer following initial chemotherapy from January 1, 2014 to December 31, 2015. We used multivariable regression models to quantify the impact of key factors on cost during the initial 6-month cancer care episode.

Results: Metastasis, facility provider affiliation, episode risk group (ERG) risk score, and radiation were cost drivers for all three types of cancer (breast, lung, and colorectal). In addition, younger age (p?p?p?p?p?Conclusions: Value-based reimbursement models in oncology should appropriately account for key cost drivers. Although claims-based methodologies may be further augmented with clinical data, this study recommends adjusting for the factors identified in these models to predict costs in breast, lung, and colorectal cancers.