scholarly journals Liquidity Constraints, Fiscal Externalities and Optimal Tuition Subsidies

2017 ◽  
Vol 9 (4) ◽  
pp. 313-343 ◽  
Author(s):  
Nicholas Lawson
Keyword(s):  
Capital Accumulation ◽  
Structural Model ◽  
Liquidity Constraints ◽  
Relative Importance ◽  
Tax Base ◽  
Sufficient Statistics ◽  
Subsidy Policy ◽  
Fiscal Externalities ◽  
Tuition Subsidies ◽  
Tuition Subsidy

A large literature focuses on two important rationales for government subsidies to college students: positive fiscal externalities from a larger tax base, and liquidity constraints. This paper provides a first attempt to gauge the relative importance of these mechanisms. I use US data in combination with two modeling approaches: calibration of a simple structural model of human capital accumulation, and a ”sufficient statistics” approach. The resulting optimal subsidies are larger than median public tuition by about $3,000 per year. This finding is driven by fiscal externalities; optimal tuition subsidy policy is not sensitive to the extent of liquidity constraints. (JEL H52, H75, I22, I23, I28)

Do State Sales Taxes Crowd Out Local Option Sales Taxes?

2018 ◽  
Vol 18 (3) ◽  
Author(s):  
Gregory S. Burge ◽  
Cynthia L. Rogers
Keyword(s):  
Local Governments ◽  
Sales Tax ◽  
Tax Rates ◽  
Tax Base ◽  
Tax Rate ◽  
Sales Taxes ◽  
Fiscal Externalities ◽  
Crowd Out ◽  
State And Local ◽  
Fiscal Spillovers

Abstract Currently, sales taxes are imposed at both the state and local levels in 37 US states. In these environments, vertical tax competition occurs as governments share a common sales tax base, and local jurisdictions have autonomy over sales tax rates. As cash-strapped states look to sales taxes for additional revenues, local governments may worry about potentially adverse revenue impacts, as consumers react to combined tax rate increases. This study examines state-municipal and county-municipal fiscal spillovers using an empirical approach that accounts for endogenous tax policy leadership and voter tax fatigue. Employing comprehensive longitudinal data from Oklahoma, we find that state tax hikes significantly crowd out future rate increases for the large group of jurisdictions that are designated as followers. Leader jurisdictions are not found to display crowd-out tendencies, a result that is consistent with recent work suggesting that leaders may be less influenced by vertical fiscal externalities than other jurisdictions.

A Dynamic Structural Model of Education and Skills Requirements for Careers in Information Systems

2011 ◽  
pp. 1-26 ◽  
Author(s):  
Glenn R. Lowry ◽  
Rodney L. Turner ◽  
Julie Fisher
Keyword(s):  
Professional Development ◽  
Information Systems ◽  
Structural Model ◽  
Soft Skills ◽  
Working Environment ◽  
Relative Importance ◽  
Relative Contribution ◽  
Dynamic Structural Model ◽  
Is Professionals ◽  
Career Progress

This chapter presents a dynamic structural model of the relative contribution and importance of education and skills required of information systems (IS) professionals. Model development took into account the technical skills found in many tertiary IS programs, other business-oriented academic studies, and soft skills sought by employers in new graduates. The model also includes features of the working environment which influence the career progress of IS graduates. Acknowledging the importance of these four areas, the authors present a second-order structural model that links these areas and compares the application of this model to IS students and decision makers who employ graduates. The model fits the data for the two groups and exhibits some unexpected outcomes in the area of soft skills, with students attributing more importance to soft skills than IS managers. The model was employed to identify gender differences in perceptions of the relative contribution and importance of education and skills required of IS professionals. The model also includes features of the working environment which influence the career progress of IS graduates. The model was used to describe how attitudes and perceptions of IS professionals change across career stages as measured by age groupings. Changes in perceptions across four major age groupings show significant differences with respect to these factors according to age groups and by inference, career stage. The model allows, with some confidence, a quantitative interpretation of the relative importance of the respective variables from the perspectives of the student and employer stakeholder groups toward the education and professional development of IS professionals. The model also suggests the presence of contrasting, gender-based quantitative views of the relative importance of the respective variables to the education and professional development of IS professionals.

Pension reforms, liquidity constraints and labour supply responses

2010 ◽  
Vol 10 (1) ◽  
pp. 53-74 ◽  
Author(s):  
UGO COLOMBINO ◽  
ERIK HERNÆS ◽  
MARILENA LOCATELLI ◽  
STEINAR STRØM
Keyword(s):  
Cross Section ◽  
Structural Model ◽  
Labour Supply ◽  
Liquidity Constraints ◽  
Credit Market ◽  
Consumption Smoothing ◽  
Percentage Points ◽  
Retirement Decisions ◽  
No Consumption ◽  
The Impact

AbstractLabour supply responses among older people are estimated on 1996 cross-section register data covering all Norwegians aged 55–68, with an inter-temporal structural model of retirement decisions. Simulations illustrate the impact of introducing flexible pension take-up with actuarial adjustment. With the option of perfect consumption smoothing via the credit market, the reform which comes into effect in Norway from 2011 will reduce the share of retired persons in the age bracket 60–67 (in the base year 15–16%) by around 3 percentage points. With no consumption smoothing, the reduction will be 0.75 percentage points.

scholarly journals Fiscal Externalities and Optimal Unemployment Insurance

2017 ◽  
Vol 9 (4) ◽  
pp. 281-312 ◽  
Author(s):  
Nicholas Lawson
Keyword(s):  
Unemployment Insurance ◽  
Job Search ◽  
Government Spending ◽  
Negative Impact ◽  
Common Finding ◽  
Search Model ◽  
Replacement Rate ◽  
Sufficient Statistics ◽  
Optimal Replacement ◽  
Fiscal Externalities

A common finding of the optimal unemployment insurance (UI) literature is that the optimal replacement rate is around 50 percent; however, a key assumption is that UI is the only government spending activity. I show that optimal UI levels may be dramatically reduced when UI is a small part of overall spending: the negative impact of UI on income tax revenues implies added welfare costs, a mechanism that I call a fiscal externality. Using both a standard calibrated structural job search model and a “sufficient statistics” method, I find that the optimal replacement rate is zero when fiscal externalities are incorporated. (JEL E24, H24, J64, J65)

The Size of Government, Capital Accumulation, and the Tax Base

1983 ◽  
Vol 11 (3) ◽  
pp. 321-345 ◽  
Author(s):  
David C. L. Nellor
Keyword(s):  
Tax Policy ◽  
Income Tax ◽  
Capital Accumulation ◽  
Tax Reform ◽  
Consumption Tax ◽  
Size Of Government ◽  
Tax Base ◽  
Tax System ◽  
Policy Concern

A central tax policy concern is the role of particular tax bases in either stimulating or discouraging capital accumulation. While the consumption tax has been proposed as superior to the income tax in terms of its treatment of saving, the literature has shown that whether a consumption or income-based tax system is associated with greater capital accumulation is theoretically indeterminate. This article incorporates the role of public accumulation and changing government activities into its analysis of capital accumulation, which enables this ambiguity to be resolved. An examination of U.S. data for the 1929–1978 period suggests that had inflation adjustment of the income tax been adopted it would, contrary to the implication of several tax reform proposals, have resulted in greater accumulation than the implementation of a consumption tax.

Transitional Growth and Trade with Frictions: A Structural Estimation Framework

2020 ◽  
Vol 130 (630) ◽  
pp. 1583-1607 ◽  
Author(s):  
James E Anderson ◽  
Mario Larch ◽  
Yoto V Yotov
Keyword(s):  
Gravity Model ◽  
Capital Accumulation ◽  
Structural Model ◽  
Steady States ◽  
Trade Costs ◽  
Country Size ◽  
Accumulation Mechanism ◽  
Producer Prices ◽  
Gravity Model Of Trade ◽  
Dynamic Path

Abstract We build and estimate a structural model of transitional growth and trade in a many-country world. The gravity model of trade is combined with a capital accumulation mechanism driving transition between steady states. Trade affects growth through changes in consumer and producer prices. Simultaneously, capital accumulation affects trade directly through changes in country size and indirectly through changes in the incidence of trade costs. Theory maps to an econometric system that identifies the parameters of the model and establishes causal links between trade, capital accumulation and income. Counterfactual trade liberalisation magnifies static gains by a dynamic path multiplier of 1.8.

scholarly journals Multidimensional Skills, Sorting, and Human Capital Accumulation

2020 ◽  
Vol 110 (8) ◽  
pp. 2328-2376 ◽  
Author(s):  
Jeremy Lise ◽  
Fabien Postel-Vinay
Keyword(s):  
Job Search ◽  
Capital Accumulation ◽  
Structural Model ◽  
Initial Conditions ◽  
Model Combining ◽  
Combining Data ◽  
Sources Of Variation ◽  
Skill Requirements ◽  
Skill Dimensions ◽  
Shed Light

We construct a structural model of on-the-job search in which workers differ in skills along several dimensions and sort themselves into jobs with heterogeneous skill requirements along those same dimensions. Skills are accumulated when used, and depreciate when not used. We estimate the model combining data from O*NET with the NLSY79. We use the model to shed light on the origins and costs of mismatch along heterogeneous skill dimensions. We highlight the deficiencies of relying on a unidimensional model of skill when decomposing the sources of variation in the value of lifetime output between initial conditions and career shocks. (JEL J24, J41, J64)

scholarly journals Micro Data and Macro Technology

Econometrica ◽  
2021 ◽  
Vol 89 (2) ◽  
pp. 703-732
Author(s):  
Ezra Oberfield ◽  
Devesh Raval
Keyword(s):  
Cross Section ◽  
Technical Change ◽  
Capital Accumulation ◽  
Manufacturing Sector ◽  
Elasticity Of Substitution ◽  
Relative Importance ◽  
Micro Data ◽  
The Cross ◽  
Labor's Share ◽  
The U.S

We develop a framework to estimate the aggregate capital‐labor elasticity of substitution by aggregating the actions of individual plants. The aggregate elasticity reflects substitution within plants and reallocation across plants; the extent of heterogeneity in capital intensities determines their relative importance. We use micro data on the cross‐section of plants to build up to the aggregate elasticity at a point in time. Interpreting our econometric estimates through the lens of several different models, we find that the aggregate elasticity for the U.S. manufacturing sector is in the range of 0.5–0.7, and has declined slightly since 1970. We use our estimates to measure the bias of technical change and assess the decline in labor's share of income in the U.S. manufacturing sector. Mechanisms that rely on changes in the relative supply of factors, such as an acceleration of capital accumulation, cannot account for the decline.

Sign in / Sign up

Export Citation Format

Share Document