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on Public Finance |
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Issue of 2009‒10‒24
four papers chosen by |
| By: | Simon Gaechter (University of Nottingham); Daniele Nosenzo (University of Nottingham); Elke Renner (University of Nottingham); Martin Sefton (University of Nottingham) |
| Abstract: | We report an experiment comparing sequential and simultaneous contributions to a public good in a quasi-linear two-person setting. In one parameterization we find that overall provision is lower under sequential than simultaneous contributions, as predicted, but the distribution of contributions is not as extreme as predicted and first movers do not attain their predicted firstmover advantage. In another parameterization we again find that the distribution of contributions is not as predicted when the first mover is predicted to free ride, but we find strong support for equilibrium predictions when the second mover is predicted to free ride. These results can be explained by second movers' willingness to punish first movers who free ride, and unwillingness to reward first movers who contribute. |
| Keywords: | Public Goods; Voluntary Contributions; Sequential Moves; Experiment |
| JEL: | C92 H41 |
| Date: | 2009–09 |
| URL: | http://d.repec.org/n?u=RePEc:cdx:dpaper:2009-17&r=pub |
| By: | Jason Junge; David Levinson (Nexus (Networks, Economics, and Urban Systems) Research Group, Department of Civil Engineering, University of Minnesota) |
| Abstract: | Transportation utility fees are a financing mechanism for transportation that treats the network as a utility and bills properties in proportion to their use, rather than their value as with the property tax. This connects the costs of maintaining the infrastructure more directly to the benefits received from mobility and access to the system. The fees are based on trips generated and vary with land use. This paper evaluates the fees as an alternative funding source in terms of economic, equity and administrative effects. The experiences of cities currently using utility fees for transportation are discussed. Calculations are included to determine the fee levels necessary for transportation maintenance budget needs in three sample cities and a county in the Twin Cities metropolitan area. Proposed fees for each property type are compared to current property tax contributions toward transportation. The regressive effects of the fees and the effect of adjusting for the length of trips generated are also quantified. |
| Keywords: | tax, land value, locational analysis, transportation finance |
| JEL: | H71 L91 R48 R51 R52 |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:nex:wpaper:transportationutilityfees&r=pub |
| By: | Gilbert E. Metcalf |
| Abstract: | Federal tax policy provides a broad array of incentives for energy investment. I review those policies and construct estimates of marginal effective tax rates for different energy capital investments as of 2007. Effective tax rates vary widely across investment classes. I then consider investment in wind generation capital and regress investment against a user cost of capital measure along with other controls. I find that wind investment is strongly responsive to changes in tax policy. Based on the coefficient estimates the elasticity of investment with respect to the user cost of capital is in the range of -1 to -2. I also demonstrate that the federal production tax credit plays a key role in driving wind investment over the past eighteen years. |
| Keywords: | electricity, wind power, production tax credits, tax subsidies |
| JEL: | H2 Q4 |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:tuf:tuftec:0743&r=pub |
| By: | Christoph A. Schaltegger (economiesuisse, University of St. Gallen and CREMA); Frank Somogyi (KOF Swiss Economic Institute, ETH Zurich, Switzerland); Jan-Egbert Sturm (ETH Zürich, KOF Swiss Economic Institute, CESifo) |
| Abstract: | In this paper, we provide empirical evidence for the influence of income taxes on the choice of residence of taxpayers at the local level. The fact that Swiss communities can individually set tax multipliers thereby shifting the progressive tax scheme which is fixed at the cantonal (state) level enables us to study the effect of differences in income taxation on individuals’ choice of location within an economically and culturally homogeneous region. Using panel IV regressions covering the years 1991-2003 and 171 communities in the Swiss canton of Zurich and spatial error regressions for the 171 communities in 2003, we find substantial evidence for income sorting. |
| Keywords: | tax competition, fiscal federalism, income segregation, income tax |
| JEL: | H71 H73 R50 |
| Date: | 2009–10 |
| URL: | http://d.repec.org/n?u=RePEc:kof:wpskof:09-240&r=pub |