Using the short-term multi-sector econometric model, this paper discusses in detail the multiplier effect of public investment in Japan. After examining its fundamental characteristics, the differ ence in government investment multiplier by the pattern of investment distribution among indus tries and the factors causing such a difference are analyzed. According to the simulation results, the mu...

215 Pacific Economic Bulletin Volume 25 number 3 © 2010 the australian national university The Government of New Caledonia is considering the adoption of a value added-based employers’ contribution—a so-called social valueadded tax (SVAT)—to pay for its social policy initiatives. This article examines the implications for business costs, inflation, imports, the purchasing power of wage earners,...

This paper analyzes the effects of government debt and income taxes on consumption and saving in a world of infinitely lived households having uncertain and heterogeneous incomes. The special structure of the model allows exact aggregation across households despite incomplete markets. The effects of government debt are shown to be substantial, roughly comparable to those resulting from finite h...

Local governments in the United States typically rely on several main sources of own-source revenues, including individual income taxes, general sales taxes, specific excise taxes, fees and charges, and local property taxes. Of these sources, the dominant is by far the property tax. According to the United States Census Bureau (http://www.census.gov/govs/estimate), local property taxes accounte...

This paper models voters’ preferences over central versus local education policies when there are private alternatives. Education is financed by income taxes and individuals are mobile between communities. Public education levels are chosen by majority vote. Contrary to conventional wisdom, centralisation may benefit the rich and poor, while the middle class prefer decentralised education. The ...

In this paper we examine the impact on the salaries of free agents in Major League Baseball of differences in state and local individual income taxes between major league cities, in an attempt to see if income taxes affect player salaries. Our basic specification suggests that each percentage point of an income tax raises free agent salaries by $21 to $24 thousand; other estimates indicate even...

Embodied carbon tariffs tax the direct and indirect carbon emissions embodied in trade — an idea popularized by countries seeking to extend the reach of domestic carbon regulations. We investigate their effectiveness using simulations from an applied general equilibrium model of global trade and energy use. We find that the tariffs do reduce foreign emissions, but their ability to improve the g...

Increasingly, policymakers look to the small business sector as a potential engine of economic growth. Policies to promote small businesses include tax relief, direct subsidies, and indirect subsidies through government lending programs. Encouraging lending to small business is the primary policy objective of the Small Business Administration’s (SBA) loan-guarantee program. Using a panel data s...

This paper describes a flexible computing framework designed to create a dynamic microsimulation model, the Life-cycle Income Analysis Model (LIAM). The principle computing characteristics include the degree of modularisation, parameterisation, generalisation and robustness. The paper describes the decisions taken with regard to type of dynamic model used. The LIAM framework has been used to cr...

In selecting tax returns for its examination program the IRS historically has focused primarily on direct revenue maximization. According to Plumley and Steuerle (2004), “The appeal of direct revenue maximization is that, for the most part, it is measurable, and it provides a basis for making resource allocation decisions.” However, Plumley and Steuerle (2004, page 329) also point out that by r...