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on Public Finance |
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Issue of 2013‒12‒20
four papers chosen by |
| By: | Suleymanov, Elchin; Alirzayev, Elvin |
| Abstract: | In this study we investigated government hand in the Global Financial Crisis. Before, during and after crisis government attempted to solve and avoid the turmoil. But did he succeed? Beginning with low interest rates set by FED, US government political pressures to enable more Americans to buy homes, unrestrained financial system despite of regulations and fines, human greedy were the main reasons for Great Recession. More than 30 years of deregulation and reliance on self-regulation by financial institutions was the one big reason for crisis. Besides showing the stages crisis passed, the paper also examines penalties government gave to the financial intermediaries for breaking law in past related to crisis. Showing the emerging process of crisis, the article mainly restricted on US economy - where was the epicenter of problem - and government, while the U.S. financial system stumbles, it may take the rest of the world down with it.The actuality of the topic is that it was also a social crisis because, unemployment in US had reached to 50 millions which means they also lost their social insurances, and 16 million families had lost their homes. Several corporations bankrupted, in spite of more than these were saved by government. While financial crisis turned into social and economic turmoil it became government prior issue to solve. |
| Keywords: | Global Financial Crisis, US economy, government failure, crisis recovery |
| JEL: | G0 G01 G3 G30 G38 H5 |
| Date: | 2013–10–03 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:51592&r=pub |
| By: | Obst, Thomas |
| Abstract: | This paper explores the nexus between the phenomenon of increasing income inequality and redistributive effects of the public sector. In an empirical analysis of seven OECD countries the redistributive effect will be examined by measuring the difference between inequality of market incomes and disposable incomes. Moreover, this paper will try to estimate the redistributive effect of public goods. The period of investigation is between the mid 1980s and the mid 2000s. The paper suggests that the public sector still reduces market income inequality significantly but to a lower extent than in the previous decades and with greater variation across different welfare regimes. Public goods further reduce income inequality considerably. However, the estimation and allocation process of these in-kind benefits involves several methodological issues that need to be taken into account when evaluating the empirical results. Furthermore, the empirical analysis indicates that market forces drove greater income inequality until the mid 1990s, and structural changes in tax and transfer systems reinforced this trend from the mid 1990s onwards. -- |
| Keywords: | income inequality,welfare state,public sector,redistribution,tax and transfer systems,public goods,market and disposable income |
| JEL: | H23 H41 H53 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ipewps:292013&r=pub |
| By: | Kammas, Pantelis; Litina, Anastasia; Palivos, Theodore |
| Abstract: | This paper examines the effect of income inequality on the quality of public education in the presence of weak institutions and tax evasion. Our theoretical model predicts that higher level income inequality within a country leads to lower quality of public education and that this effect is diminishing on the quality of institutions. The effect of inequality operates via two channels, namely via an impact on the resources allocated to public education and via an impact on the number of individuals participating in the public schooling scheme. Exploiting variations in the levels of inequality and governance across countries, the empirical analysis confirms the theoretical predictions. |
| Keywords: | Quality of Public Education, Income Inequality, Tax Evasion. |
| JEL: | D63 H26 I2 |
| Date: | 2013–12–13 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:52193&r=pub |
| By: | Behaghel, Luc; Lorenceau, Adrien; Quantin, Simon |
| Abstract: | This paper uses regression discontinuity design to provide quasi-experimental estimates of the impact of a tax credit program targeted at rural areas in France, including corporate and payroll tax exemptions. We find no impact of the program on total employment or the number of businesses, and no impact of the different program components on targeted subsets of firms. Comparison with a contemporaneous urban scheme suggests ways the incentives of the rural program could be targeted more effectively. |
| Keywords: | tax exemptions; rural development; enterprise zones |
| JEL: | J23 J32 H32 |
| Date: | 2013–12 |
| URL: | http://d.repec.org/n?u=RePEc:cpm:docweb:1308&r=pub |