scholarly journals Integrating Expenditure and Tax Decisions: The Marginal Cost of Funds and the Marginal Benefit of Projects

2001 ◽  
Vol 54 (2) ◽  
pp. 189-202 ◽  
Author(s):  
Joel Slemrod ◽  
Shlomo Yitzhaki
Keyword(s):  
Marginal Cost ◽  
Marginal Benefit ◽  
Marginal Cost Of Funds

On the Importance of the Tax System in Marginal Cost of Funds Calculations

2011 ◽  
Vol 11 (1) ◽  
Author(s):  
Mickael Beaud
Keyword(s):  
General Equilibrium ◽  
Marginal Cost ◽  
Analytical Formula ◽  
Value Added ◽  
Tax Revenue ◽  
Empirical Estimates ◽  
Analytical Formulas ◽  
The Impact ◽  
Labor Income Taxation ◽  
Marginal Cost Of Funds

Abstract Several papers have attempted to derive computable analytical formulas for the Marginal Cost of Funds (MCF). However, this literature is often cast in the pure labor supply general equilibrium model, which is not completely consistent with real tax systems where Labor Income Taxation (LIT) is not the only instrument used by governments. Hence, we explicitly introduce Value-Added Taxation (VAT) on consumption goods in the conventional model, and we derive an analytical formula for the MCF which does incorporate general equilibrium interactions between the different tax bases. Then, we illustrate how much this matter for empirical estimates of MCF using French data. Our numerical example suggests that, when computing MCF for a LIT reform, taking account of the impact of LIT reform on tax revenue from VAT can make a great deal of difference, typically increasing MCF and accounting for around 0.2 to 0.8 of estimates. In addition, MCF is then really less likely to be less than one than in the conventional framework.

Legislative Production in Comparative Perspective: Cross-Sectional Study of 42 Countries and Time-Series Analysis of the Japan Case

2008 ◽  
Vol 9 (1) ◽  
pp. 1-19 ◽  
Author(s):  
KENTARO FUKUMOTO
Keyword(s):  
Time Series ◽  
Marginal Cost ◽  
Time Series Data ◽  
Cross Sectional Study ◽  
Series Data ◽  
Divided Government ◽  
Sectional Study ◽  
Cross Sectional ◽  
Marginal Benefit ◽  
Legislative Production

AbstractLegislative scholars have debated what factors (e.g. divided government) account for the number of important laws a legislative body passes per year. This paper presents a monopoly model for explaining legislative production. It assumes that a legislature adjusts its law production so as to maximize its utility. The model predicts that socio-economic and political changes increase the marginal benefit of law production, whereas low negotiation costs and ample legislative resources decrease the marginal cost of law production. The model is tested in two ways. The first approach compares the legislatures of 42 developed and developing countries. The second analyzes Japanese lawmaking from 1949 to 1990, using an appropriate method for event count time series data. Both empirical investigations support the model's predictions for legislative production.

scholarly journals Subsidizing Fuel-Efficient Cars: Evidence from China’s Automobile Industry

2021 ◽  
Vol 13 (4) ◽  
pp. 152-184
Author(s):  
Chia-Wen Chen ◽  
Wei-Min Hu ◽  
Christopher R. Knittel
Keyword(s):  
Automobile Industry ◽  
Marginal Cost ◽  
Substitution Effect ◽  
Purchase Behavior ◽  
Marginal Benefit ◽  
Subsidy Program ◽  
Vehicle Purchase ◽  
China's Automobile Industry

This paper examines the response of vehicle purchase behavior to China’s largest national subsidy program for fuel-efficient vehicles during 2010 and 2011. Using variation from the program’s eligibility cutoffs and the rollout of the subsidy program, the program is found to boost sales for subsidized vehicle models, but also to create a substitution effect within highly fuel-efficient vehicles. Estimates imply that ignoring the substitution effect would lead one to conclude that the program is welfare enhancing, whereas in fact the marginal cost of the program exceeds the marginal benefit by as much as 300 percent. (JEL D12, H25, L25, L62, O14, P23, P36)

The Costs of Taxation and the Marginal Cost of Funds

1995 ◽  
Vol 95 (83) ◽  
pp. 1 ◽  
Author(s):  
Joel Slemrod ◽  
Shlomo Yitzhaki ◽  
◽  
Keyword(s):  
Marginal Cost ◽  
Marginal Cost Of Funds
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