Tax revenue and the marginal cost of public funds in Sweden

We assess the welfare cost of raising a marginal unit of tax revenue in a balanced-budget, general-equilibrium framework. The calculated social cost of an increment of public funds is sensitive to both the specific type of tax increase and the type of public spending used on the margin. ‘Best-guess’ assumptions on labor supply elasticities yield marginal costs of public funds for different fiscal mixes of between 0.67 and 4.51 at prevailing tax rates in Sweden. Alternative labor supply assumptions well within the range of current estimates substantially affect the results and can imply infinite marginal welfare costs. Marginal welfare costs are also sensitive to assumptions about both the income and substitution effects of labor supply.     

Do Urban Tax Rates Converge?

A bstract . Using a multiple regression model that seeks to explain why tax rates vary, the hypothesis is tested that similarly sized cities with similar economic functions would tend to have property tax rates that converged. What variations there are in an array of urban tax rates of 20 cities in the 100,000 to 200,000 class seem to be explained by density of settlement and by the extent to which non-property tax sources bulk importantly in total urban revenues. The inference is drawn that convergence is in fact observable. Convergence would, of course, imply tax competition as among these cities.     

Marketing antecedents of industrial brand equity: An empirical investigation in specialty chemicals

Industrial branding has emerged as an important issue, allowing firms to gain substantial competitive advantage, especially in markets where product commoditization and electronic procurement are on the increase. This article proposes, and empirically validates, a theoretically structured approach to measure brand equity, its antecedents and its consequences for industrial products. The model distinguishes between product and corporate brand equity, uses buyer perceived performance on the dimensions of the marketing mix as antecedents of brand equity, and relates them to re-purchase and loyalty intentions.     

Trip chaining behavior in multi-destination shopping trips: A field experiment and laboratory replication

Models of consumer store patronage generally employ the economic theory-based assumption that, all else being equal, consumers seek to minimize travel distance. Moreover, consistent with reference-dependent theory, findings from recent experimental research conducted in a controlled lab setting suggest that holding travel distance constant, the configuration of stops along multi-stop routes may also impact store-patronage decisions. However, given the use of simplified map configurations of multi-stop routes, along with the stimulus-based nature of the laboratory exercise, the external validity of these findings are open to question. Thus, the purpose of the three experiments in the present paper is to replicate and test the external validity of the reference-dependent predictions supported in previous research. In experiment one, consumer travel preferences are examined in a memory-based field experiment with results replicating those of earlier research. In experiment two, results are again replicated, but this time in a lab setting using realistic maps. Finally, experiment three provides a test of boundary conditions for the theory-consistent results of experiments one and two.     

MATHEMATICAL MODELLING AND STOCHASTIC SIMULATION OF ACCOUNTING ALTERNATIVES

Computer-based simulation has been widely used to study the effects of alternative accounting procedures. For simple scenarios, mathematical modelling can also reveal the consequences of employing different accounting methods. This paper uses stochastic simulation to build a complex model which cannot be solved analytically, and compares this approach directly with mathematical modelling of a simplified version of the same accounting problem.     

Reviews

Basic economics. Mackintosh, M., Brown, V., Costello, N., Dawson, G., Thompson, G. and Trigg, A. 1996: ECONOMICS AND CHANGING ECONOMIES. Open University and International Thomson Business Press, £19.99 paper.

Tinkering with equality. Rees, T. 1995: WOMEN AND THE EC TRAINING PROGRAMMES: TINKERING, TAILORING AND TRANSFORMATION. Bristol: SAUS publications, £11.50 paper.

Construction and employment. McGregor, A., Fitzpatrick, I., McConachie, M. and Thorn, G. 1995: BUILDING FUTURES: CAN LOCAL EMPLOYMENT BE CREATED FROM HOUSING EXPENDITURE? Bristol: SAUS Publications, £9.95 paper.

Harrison, M. and Davies, J. 1995: CONSTRUCTING EQUALITY: HOUSING ASSOCIATIONS AND MINORITY ETHNIC CONTRACTORS. Bristol: SAUS Publications, £9.95 paper.

Globalisation and Local Economic Development. Killick, T. (ed) 1995: THE FLEXIBLE ECONOMY: CAUSES AND CONSEQUENCES OF THE ADAPTABILITY OF NATIONAL ECONOMIES. London: Routledge/ODI, £16.99 paper.

Michie, J. and Grieve Smith, J. (eds) 1995: MANAGING THE GLOBAL ECONOMY. Oxford: Oxford University Press, £14.95 paper.

City marketing. Neill, W. V., Fitzsimons, D. S. and Murtagh, B. 1995: REIMAGING THE PARIAH CITY: URBAN DEVELOPMENT IN BELFAST AND DETROIT. Aldershot: Avebury, £35.00 cased.

Flexible working. New Ways to Work, 1995: BALANCED LIVES: CHANGING WORK PATTERNS FOR MEN. London: New Ways to Work, £9.95 paper.

Cyberspace utopia? Graham, S. and Marvin, S. 1996: TELECOMMUNICATIONS AND THE CITY: ELECTRONIC SPACES, URBAN PLACES. London: Routledge, £15.99 paper.     

Sales tax exemptions and credits: Time to reevaluate

The state sales tax is an inherently regressive source of revenue. This has given rise to attempts to counter the regressivity through adjustments to the basic sales tax structure through credits and exemptions. Two new alternatives appear to have both theoretical and practical advantages over simple credits and exemptions: the use of a debit card for delivering sales tax credits and a negative credit related to potential tax liability. They have the theoretical advantages of both the credit and the exemption while not having the administrative difficulties of the credit or the revenue loss of the exemption. Empirical analysis using the Consumer Expenditure Survey and the Maryland tax code indicates that the state can reduce regressivity and raise substantial revenue using either alternative. The proposed gains can be made with enhanced revenue stability, little administrative cost, and little impact on horizontal equity or efficiency.