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This paper provides an overview of recent Chinese reforms to introduce a modern system of fiscal federalism that balances the need for central macroeconomic control with the economic advantages of decentralized government. Following a discussion of the rationale for decentralization, the paper describes the main structural and economic developments in China in this area, including their impact on economic stabilization. The key measures in the 1994 fiscal reforms as well as reform initiatives needed in the future are also discussed.

Macroeconomics --- Public Finance --- State and Local Taxation, Subsidies, and Revenue --- State and Local Budget and Expenditures --- Intergovernmental Relations --- Federalism --- Secession --- Fiscal Policy --- National Government Expenditures and Related Policies: General --- Public finance & taxation --- Expenditure --- Fiscal policy --- Fiscal federalism --- Expenditure assignments --- Revenue assignments --- Expenditures, Public --- China, People's Republic of

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This paper explores how corporate income tax reform can help Japan increase investment and boost potential growth. Using international and Japan-specific empirical estimates of corporate tax elasticities, investment is predicted to expand by around 0.4 percent for each point of rate reduction. International consensus estimates suggest further that between 10 and 30 percent of the static revenue loss could be recovered in the long run through dynamic scoring, although Japan’s offset may be closer to the lower bound. Compensating fiscal measures are necessary in light of Japan’s tight fiscal constraints. The scope for base broadening in the corporate income tax is found to be limited and some forms of base broadening will undo positive investment effects of a rate cut. Alternative revenue sources include higher consumption and property taxes. A gradual approach toward lowering tax rates mitigates windfall gains and reduces short-run revenue costs. An incremental allowance-for-corporate-equity system could boost investment with limited fiscal costs in the short run.

Corporations --- Taxation --- Macroeconomics --- Personal Finance -Taxation --- Corporate Taxation --- Business Taxes and Subsidies --- Fiscal Policies and Behavior of Economic Agents: Firm --- State and Local Taxation, Subsidies, and Revenue --- Aggregate Factor Income Distribution --- Personal Income and Other Nonbusiness Taxes and Subsidies --- Corporate & business tax --- Public finance & taxation --- Corporate income tax --- Income --- Personal income tax --- Consumption taxes --- Allowance for corporate equity --- Taxes --- National accounts --- Income tax --- Spendings tax --- Japan

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This paper estimates the magnitude and speed of tax pass-through across tobacco products at different price points in Pakistan by using a novel dataset of monthly observations on cigarette prices in 50 cities during the period 2004-2015. The pass-through of cigarette taxes to retail prices is found to occur within two months, but is mostly incomplete in magnitude. On average, a one-rupee tax increase is estimated to lead to an increase of only PRs 0.8 in retail cigarette prices. This is driven by the fact that tobacco manufacturers absorb a significant part of the tax increase. For the premium brand, however, I observe full passthrough, indicating possibilities of different demand elasticities across product tiers. These findings are likely to be attributable to competitive market pressures, especially at the budget end of the price spectrum, possibly stemming from changing consumption patterns with greater awareness of health risks as well as the impact of illicit domestic production.

Cigarettes. --- Cigarettes --- Taxation. --- Cigarette tax --- Cigarets --- Tobacco products --- Business Taxes and Subsidies --- Capacity --- Capital --- Consumer price indexes --- Consumer prices --- Consumption --- Deflation --- Economics --- Efficiency --- Excise tax --- Excise taxes --- Excises --- Fiscal Policies and Behavior of Economic Agents: Firm --- Inflation --- Intangible Capital --- Investment --- Macroeconomics --- Macroeconomics: Consumption --- National accounts --- Optimal Taxation --- Price indexes --- Price Level --- Prices --- Saving --- State and Local Taxation, Subsidies, and Revenue --- Taxation and Subsidies: Incidence --- Taxation --- Taxes --- Tobacco tax --- Tobacco --- Wealth --- Pakistan

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The impact of higher petroleum prices on the aggregate price level, real growth, and income distribution is appraised within a multisector computable general equilibrium (CGE) model. A reduction in the government subsidy raises petroleum prices and production costs throughout the economy. Consumer demand, production, and income decline as output prices increase and consumer purchasing power decreases. The model is applied to and calibrated for Indonesia. The simulated results predict a slight increase in price level and a slight decrease in output. An important result is that urban household groups will be the most significantly affected by the subsidy reduction.

Petroleum products --- Industrial productivity --- Subsidies --- Production (Economic theory) --- Microeconomics --- Supply and demand --- Demand (Economic theory) --- Supply-side economics --- Business subsidies --- Corporate subsidies --- Corporate welfare --- Government subsidies --- Grants --- Subventions --- Vouchers (Subsidies) --- Welfare, Corporate --- Government aid --- Foreign trade promotion --- Trade adjustment assistance --- Productivity, Industrial --- TFP (Total factor productivity) --- Total factor productivity --- Industrial efficiency --- Mazut --- Petroleum --- Hydraulic fluids --- Prices --- Refining --- Investments: Energy --- Inflation --- Macroeconomics --- Fiscal Policy --- State and Local Taxation, Subsidies, and Revenue --- Measurement and Analysis of Poverty --- Energy: Demand and Supply --- Macroeconomics: Consumption --- Saving --- Wealth --- Aggregate Factor Income Distribution --- Price Level --- Deflation --- Energy: General --- Investment & securities --- Oil prices --- Consumption --- Income --- Oil --- National accounts --- Commodities --- Economics --- Petroleum industry and trade --- Indonesia

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This paper argues that both horizontal and intertemporal competition among recipient governments are needed in order to ensure incentives for effective utilization of targeted transfers. This has implications for budgeting frameworks and the types of information needed that might be amenable to formal contracting between the levels of government.

Finance, Public. --- Intergovernmental fiscal relations. --- Cameralistics --- Public finance --- Public finances --- Currency question --- Federal-state fiscal relations --- Fiscal relations, Intergovernmental --- State-local fiscal relations --- Federal government --- Finance, Public --- Local finance --- Law and legislation --- Budgeting --- Finance: General --- Public Finance --- Taxation --- State and Local Government --- Intergovernmental Relations: General --- State and Local Taxation, Subsidies, and Revenue --- General Financial Markets: General (includes Measurement and Data) --- Taxation, Subsidies, and Revenue: General --- National Budget --- Budget Systems --- National Government Expenditures and Related Policies: General --- Finance --- Public finance & taxation --- Budgeting & financial management --- Competition --- Tax incentives --- Budget planning and preparation --- Expenditure --- Budget --- Expenditures, Public