Non-linear effects of tax changes on output: The role of the initial level of taxation

Gunter, Samara; Riera‐Crichton, Daniel; Végh, Carlos A.; Vúletin, Guillermo

doi:10.1016/j.jinteco.2021.103450

Cited by 13 publications

(5 citation statements)

References 39 publications

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“…In the face of coastal wetland pollution, many local governments adopt a laissez-faire management mode largely to ensure local tax revenue. When economic development is relatively slow, the more dependent social development is on taxation, the greater the income generated by taxation (Gunter et al, 2021). In order to increase tax revenue and economic development, some local governments are willing to cause environmental pollution, thus destroying the coastal wetland ecosystem (Das and Krishnakumar, 2022).…”

Section: Discussionmentioning

confidence: 99%

Hands-off, artificial construction, or penalty? How to deal with the increasingly polluted coastal wetland ecosystem in China

Bai,

Ma,

2023

Front. Ecol. Evol.

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As the destruction of coastal wetlands in China becomes more and more serious, the government needs to strengthen the management of the wetland ecosystem. Considering that pollution is an important factor in the destruction of coastal wetlands in China, the government can deal with the problem of wetland pollution through three modes: hands-off, artificial construction, and penalty. In this article, the differential game model is constructed under these three modes. The balanced social benefits of the government and polluting enterprises under the three modes are obtained, and the applicable conditions of various wetland treatment paths are compared. The results show that when the revenue generated by taxation and the indirect income generated by artificial construction are small, the government will choose the laissez-faire mode. However, with the gradual increase of indirect income generated by artificial construction, the government will be inclined to choose the artificial construction mode. When the income from government fines is small, the social benefits of polluters in the hands-off mode are greater than those in the penalty mode. With the increase of fines, the social benefits of polluting enterprises will first decrease and then increase, which will eventually be greater than the social benefits under the hands-off mode.

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Section: Discussionmentioning

confidence: 99%

Hands-off, artificial construction, or penalty? How to deal with the increasingly polluted coastal wetland ecosystem in China

Bai,

Ma,

2023

Front. Ecol. Evol.

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“…Equation 2 expresses that the primary deficit is always equal to the SIG minus the forex gap. However, leakages cause output to fall (Gunter et al, 2021) while injections cause output to increase and expand economic activity (Makiela & Ouattara, 2018). Therefore, the theoretical model may include the interaction terms to estimate the mediating impact of output.…”

Section: Research Methodology Theoretical Modelmentioning

confidence: 99%

“…Apart from the forex gap-FD relationship as proposed by the twin's deficit hypothesis, the wider SIG causes fewer capital formations and hence less production in the economy. Leakages cause output to fall (Gunter et al, 2021) while injections cause output to increase and expand economic activity (Makiela & Ouattara, 2018). The literature is deficient to explain the empirical relationship between leakages and injections regarding mediating the impact of output on the fiscal situation of the economy.…”

Section: Introductionmentioning

confidence: 99%

Saving-Investment or Foreign Exchange Gap: What Hinders Fiscal Stability in Pakistan?

Asghar¹,

Gardezi²,

Ali³

2022

IJMRES

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Macroeconomic stability is a major objective to be achieved for sustainable economic growth. However, fiscal stability has been prone to instability in dual-gaps in a developing country like Pakistan. This study examines the impact of the saving-investment gap (SI), foreign exchange gap (XM), and the mediating impact of output on fiscal deficit using the time-series data from 1973 to 2018 in Pakistan using Autoregressive Distributed Lag (ARDL). The results show that an increase in the saving-investment gap and output lower the fiscal deficit. However, an increase in the foreign exchange gap increases the fiscal deficit. While considering the interaction effect, SI and output negatively but XM and output interaction positively affect the fiscal deficit. Since SI and output stabilize the fiscal position while the XM destabilizes the latter, the government should strategize to increase savings, investment, exports, and national output and reduce unnecessary imports.

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“…Nine countries cies and see Manzano, Navajas, and Powell (2018) for a discussion of the efficiency of taxes and royalties on commodity production in the region. 25 See Gunter et al (2021). 26 See Ardanaz et al (2021).…”

Section: Restoring and Maintaining Sustainabilitymentioning

confidence: 99%

Dealing with Debt: Less Risk for More Growth in Latin America and the Caribbean

Powell,

Valencia

2023

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Debt has risen around the world, and Latin America and the Caribbean is no exception. Total debt has grown to US$5.8 trillion, or 117 percent of GDP, for the region and as much as 140 percent of GDP for its five largest economies. Public debt soared to over 70 percent of GDP during the pandemic, and corporates issued substantial amounts to survive the crisis. While the spending that led to this debt helped the region weather the pandemic, it is now weighing down the economy. This book examines the rise in debt in Latin America and the Caribbean and offers recommendations to policymakers to ensure debt is used wisely, avoid the harmful impacts, manage high debt levels well, and bring down debt where it is too high. It is hoped that the analyses and policy suggestions in this volume contribute to successfully confronting the challenges, lowering risk, boosting growth, and improving living standards across the region and beyond.

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Non-linear effects of tax changes on output: The role of the initial level of taxation

Cited by 13 publications

References 39 publications

Hands-off, artificial construction, or penalty? How to deal with the increasingly polluted coastal wetland ecosystem in China

Hands-off, artificial construction, or penalty? How to deal with the increasingly polluted coastal wetland ecosystem in China

Saving-Investment or Foreign Exchange Gap: What Hinders Fiscal Stability in Pakistan?

Dealing with Debt: Less Risk for More Growth in Latin America and the Caribbean

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