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An influential strand of recent research has claimed that large governments in European countries explain their weaker long-term economic performance compared to the U.S. On the other hand, despite these alleged costs, large governments have been popular with electorates. This paper seeks to shed light on this apparent inconsistency; it confirms an adverse effect of taxes on labor supply, but also finds evidence of efficiency-increasing government intervention. However, and especially in the core "Rhineland-model" European countries, actual government policies often depart from such efficient interventions, pointing to the possibility that voters prefer redistribution even at the cost of allocational efficiency.

Business & Economics --- Economic Theory --- Economic development --- Economic stabilization --- Political aspects. --- Econometric models. --- Adjustment, Economic --- Business stabilization --- Economic adjustment --- Stabilization, Economic --- Economic policy --- Labor --- Macroeconomics --- Taxation --- Fiscal Policy --- Demand and Supply of Labor: General --- Labor Economics: General --- Taxation, Subsidies, and Revenue: General --- Labor Economics Policies --- Labour --- income economics --- Public finance & taxation --- Labor supply --- Labor markets --- Marginal effective tax rate --- Labor market policy --- Tax policy --- Labor market --- Labor economics --- Tax administration and procedure --- Manpower policy --- United States --- Income economics

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Tax incentives have been used extensively in the countries of the Eastern Caribbean Currency Union (ECCU) to promote investment. The associated revenue losses are large, and benefits in terms of new investment have been limited, raising doubts about the cost effectiveness of the tax incentive schemes. This paper examines the effects of incentives using the marginal effective tax rate approach (METR), adapting this methodology to the case of a small open economy where the marginal investor is a nonresident. The results show that METRs are high in the region; that there is a large dispersion in the size of METRs across financing source; and that METRs on investment are larger than the overall distortion on capital, with a substantial subsidy to domestic saving. In the presence of tax holidays-the most common incentive scheme in the region-the distortion on capital basically vanishes.

Capital investments -- Caribbean Area. --- Electronic books. -- local. --- Investment tax credit -- Caribbean Area. --- Finance --- Business & Economics --- Financial Management & Planning --- Capital investments --- Investment tax credit --- Capital expenditures --- Capital improvements --- Capital spending --- Fixed asset expenditures --- Plant and equipment investments --- Plant investments --- Depreciation allowances --- Tax credits --- Investments --- Investments: Stocks --- Taxation --- Taxation, Subsidies, and Revenue: General --- Business Taxes and Subsidies --- Pension Funds --- Non-bank Financial Institutions --- Financial Instruments --- Institutional Investors --- Public finance & taxation --- Investment & securities --- Tax holidays --- Tax incentives --- Marginal effective tax rate --- Consumption taxes --- Stocks --- Tax administration and procedure --- Spendings tax --- Antigua and Barbuda

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One of the most striking tax developments in recent years, and one that continues to attract considerable attention, is the adoption by several countries of a form of "flat tax." Discussion of these quite radical reforms has been marked, however, more by assertion and rhetoric than by analysis and evidence. This paper reviews experience with the flat tax, seeking to redress the balance. It stresses that the flat taxes that have been adopted differ fundamentally, and that empirical evidence on their effects is very limited. This precludes simple generalization, but several lessons emerge: there is no sign of Laffer-type behavioral responses generating revenue increases from the tax cut elements of these reforms; their impact on compliance is theoretically ambiguous, but there is evidence for Russia that compliance did improve; the distributional effects of the flat taxes are not unambiguously regressive, and in some cases they may have increased progressivity, including through the impact on compliance; adoption of the flat tax has not resolved common challenges in taxing capital income; and it may have strengthened, not weakened, the automatic stabilizers. Looking forward, the question is not so much whether more countries will adopt a flat tax as whether those that have will move away from it.

Flat-rate income tax --- Econometric models. --- Flat income tax --- Flat-rate tax --- Flat tax --- Tax, Flat --- Income tax --- Macroeconomics --- Personal Finance -Taxation --- Taxation --- Corporate Taxation --- Taxation, Subsidies, and Revenue: General --- Fiscal Policies and Behavior of Economic Agents: General --- Personal Income, Wealth, and Their Distributions --- Personal Income and Other Nonbusiness Taxes and Subsidies --- Business Taxes and Subsidies --- Public finance & taxation --- Corporate & business tax --- Personal income --- Marginal effective tax rate --- Personal income tax --- Corporate income tax --- Taxes --- National accounts --- Tax policy --- Income --- Tax administration and procedure --- Corporations --- Slovak Republic

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This paper provides an overview of full and partial allowance for corporate equity (ACE) tax systems in practice. In the recent past, ACE systems have been used in Austria, Croatia, and Italy. Brazil still applies a variant of such a system and Belgium introduced one this year. This paper summarizes the empirical literature on past ACE systems, and provides a theoretical and empirical assessment of the Brazilian ACE variant. The main finding is that the Brazilian reform introduced an ACE system for a minority of firms only, with the majority instead having a system of dividend deductibility. Despite the reduction in the tax preference for debt finance, capital structures have not changed much, but dividends have increased. Investment appears to have benefited from the reform, although the extent to which this was due to the new structure rather than the tax cut is unclear.

Corporations -- Finance. --- Corporations -- Taxation. --- Electronic books. -- local. --- Management --- Business & Economics --- Industrial Management --- Corporations --- Finance. --- Taxation. --- Corporate income tax --- Corporate taxes --- Corporation income tax --- Corporation tax --- Federal corporation tax --- Franchises, Taxation of --- Taxation of franchises --- Business finance --- Capitalization (Finance) --- Corporate finance --- Corporate financial management --- Corporation finance --- Financial analysis of corporations --- Financial management, Corporate --- Financial management of corporations --- Financial planning of corporations --- Managerial finance --- Going public (Securities) --- Finance --- Valuation --- Investments: Stocks --- Taxation --- Corporate Taxation --- Business Taxes and Subsidies --- Taxation, Subsidies, and Revenue: General --- Pension Funds --- Non-bank Financial Institutions --- Financial Instruments --- Institutional Investors --- Corporate & business tax --- Public finance & taxation --- Investment & securities --- Allowance for corporate equity --- Stocks --- Income tax systems --- Effective tax rate --- Income tax --- Tax administration and procedure --- Brazil

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Macroeconomics is the study of the economy as a whole and of work and saving choices of individual economic agents from which macroeconomic activity emerges. This book takes an integrative approach to that topic, showing how short-run and long-run forces operate simultaneously to determine the behavior of key economic indicators such as employment and real, inflation-adjusted GDP.

Macroeconomics. --- aggregate demand --- aggregate supply --- baseline scenario --- chain-weight method --- classical tradition --- Cobb-Douglas production function --- compensated supply curve --- consumption tax --- contractive monetary and fiscal policy --- cost of capital --- demand multiplier --- depreciation rate --- diminishing marginal rate of substitution --- excess demand --- excess supply --- expansive monetary and fiscal policy --- flat tax --- frictional unemployment --- full employment --- golden rule of economic growth --- Great Contraction --- gross national product --- income effect --- individual equilibrium --- interest parity condition --- intertemporal elasticity of substitution --- INUS --- Keynesian scenario --- labor force participation rate --- labor income --- Laffer curve --- leisure --- longrun aggregate supply --- macro foundations --- marginal effective tax rate --- marginal product --- marginal propensity to consume --- marginal propensity to produce --- marginal rate of substitution --- marginal utility --- micro foundations, money --- natural unemployment rate --- net foreign investment --- new classical economics --- nominal rate of return --- non-accelerating inflation rate of unemployment --- non- accelerating inflation rate of labor-force participation --- output supply multiplier --- Phillips curve --- potential GDP --- present value --- purchasing power parity --- rate of time preference --- real rate of return --- replacement rate --- repressed inflation --- repressed wages --- saving rate --- self-reliance rate --- short-run aggregate supply --- stabilization policies --- steady state of economic growth --- structural unemployment --- substitution effect --- supply side economics --- uncompensated supply curve --- unemployment rate