Developing countries face a major challenge of decarbonizing their light-duty vehicle fleet and transitioning to the broad use of electric vehicles. However, there is little evidence on which policies can most effectively facilitate that transition in these countries, distinguished by relatively...

We provide novel evidence on the linkages between capital taxation and charitable giving on three fronts. First, we use quasi-experimental variation in the annual Norwegian wealth tax to study the effect on how much households give. Inconsistent with the notion that households give more in order...

Research and development (R&D) tax credits are widely employed among the OECD countries to promote business sector investments in innovation. The implementation of R&D tax credit schemes, however, varies across countries. The empirical research on the effectiveness of R&D tax incentives suggests...

We analyze to what extent more generous tax loss offset regulations are associated with a weaker decline and stronger recovery of firm stock prices during economic crises. We argue that an unrestricted loss carryforward and, particularly, an unrestricted loss carryback provides firms with...

We construct a model of innovation incorporating R&D externalities, R&D participation, financial market imperfections, and application and allocation of R&D subsidies, estimate it using Finnish R&D project level data and conduct a welfare analysis. The intensive, not the extensive R&D margin is...

We study the effect of reforms that close loopholes in the enforcement of the dividend-withholding tax (DWT). We focus on a Danish reform enacted in 2016, and compare Denmark to its Nordic neighbors. Our main outcome of interest is the quantity of stocks on loan. Before the reform all Nordic...

This paper studies how investment tax incentives stimulate output in an estimated medium-scale dynamic stochastic general equilibrium model. We find that the horizon following a positive shock to investment tax incentives is crucial. The shock is highly expansionary in the long run, with the...

Information plays a key role in economics. According to the benchmark neoclassical model, agents require information in order to optimize their choices. Information, however, is sometimes incomplete or asymmetric in the real world. In this paper, we investigate the role of information for the...

Using Difference-in-Differences models and event-study analysis, we estimate the impact of an exogenous increase in income on the incidence and intensity of intimate partner violence (IPV). Using National Crime Victimization Survey data from 1992 to 2000, we exploit time and family-size...

The Affordable Care Act (ACA) introduced a premium tax credit to help low-income families purchase insurance and an individual mandate penalty to encourage purchasing insurance, but a couple’s total tax credit and mandate penalty may differ depending on whether they are married. We use a...

Die Global Tax Expenditures Database (https://gted.net/) erfasst nationale Berichte zu Steuervergünstigungen für 101 Länder für den Zeitraum ab 1990 bis heute. Auf Basis dieser Daten wird die Entwicklung von Steuervergünstigungen in den 38 OECD-Ländern zwischen 1999 und heute betrachtet....

Die Global Tax Expenditures Database (https://gted.net/) erfasst nationale Berichte zu Steuervergünstigungen für 101 Länder für den Zeitraum ab 1990 bis heute. Auf Basis dieser Daten wird die Entwicklung von Steuervergünstigungen in den 38 OECD-Ländern zwischen 1999 und heute betrachtet....

Developing countries face a major challenge of decarbonizing their light-duty vehicle fleet and transitioning to the broad use of electric vehicles. However, there is little evidence on which policies can most effectively facilitate that transition in these countries, distinguished by relatively...

In the United States, exchange-traded funds can defer capital gains taxes of their investors by taking advantage of a legal loophole. To quantify the impact of this tax loophole on investor portfolios, we study a rank-dependent expected utility model. We develop an approximation formula for the...

This paper assesses the feasibility of developing a tax and benefit microsimulation model in Rwanda. Tax-benefit microsimulation can be used to explore ways in which national development goals can be achieved in a cost-effective manner, and to assess the distributional effects of more...

The tax credit rating mechanism was formally implemented in 2014. As an important tax collection and management innovation, it has attracted the attention of regulatory authorities and scholars. Different from the literature that directly examines corporate tax compliance, we focus on the impact...

This paper estimates the cost of filing taxes and assesses several policy proposals aimed at reducing these costs. Using US tax returns, a quasi-experimental method and additional extrapolations based on survey evidence, I uncover three main findings. First, filing costs are large and have been...

We analyze to what extent more generous tax loss offset regulations are associated with a weaker decline and stronger recovery of firm stock prices during economic crises. We argue that an unrestricted loss carryforward and, particularly, an unrestricted loss carryback provides firms with...

No previous study in emerging economies has investigated the impact of technological dependence on business performance during the COVID-19 pandemic. Moreover, no detailed analysis has been conducted to study the link between the utilisation of tax incentives and business performance during...

The adoption of the addback statutes significantly reduces business groups’ incentive of using internal capital market (ICM) to shift income for tax saving benefits. Leveraging the quasi-experiment setting created by the addback statutes, we find that the adoption of addback statutes increases...

The 2017 Tax Cut and Jobs Act increased the limitation on the tax deductibility of charitable contributions from 50 to 60 percent of adjusted gross income. This note estimates the effect of the share-of-income limitation on giving for the first time. Patterns in giving over time and across...

The American Rescue Plan Act (ARPA) dramatically alters the federal government’s approach to redistribution in 2021. Among its boldest reforms are its temporary expansions of the Child Tax Credit and the Earned Income Tax Credit. For the first time, ARPA authorizes meaningful cash support for...

This paper considers the impact of federal deductibility on the level and composition of state and local taxes. It also considers the importance of deductibility in determining the vote of state Congressional delegations on the Tax Reform Act of 1986. Particular emphasis should be placed on the...

This paper evaluates the effects of the earned income tax credit (EITC) on poor families. Exploiting state-level variation in EITCs, we find that the EITC helps families rise above poverty-level earnings. This occurs by inducing labor market entry in families that initially do not have an adult...

In 1992, the income tax withholding tables were adjusted so that withholding was reduced. A typical worker received an extra $28.80 in take-home pay per month in March through December 1992, to be offset by a lower tax refund in 1993. The change in withholding amounted to 0.5 percent of GDP....

Canada's federal carbon tax currently applies in Alberta, Saskatchewan, Manitoba and Ontario. Farmers in these provinces lack consistency on the tax, which is differentially applied to agricultural fuels. They must navigate between distinct sets of rules depending on the type of fuels they’re...

In recent years, the Child Tax Credit (CTC) has provided a cash transfer of up to $2,000 per child under age 17 to millions of families in the United States. Using the Current Population Survey, we examine the aggregate effects and distributional implications of the rules governing the credit....

Affordable housing programs as place-based programs in the United States have an impact on the neighborhoods, but little is known about the impact of affordable housing construction on individuals living in the neighborhoods hosting these projects. This paper investigates the effects of...

The role of tax incentives in charitable giving has seen considerable attention. Yet, attention is limited to direct tax incentives, such as tax deductibility. Whether and how taxing household savings affects charitable giving is largely unexplored. While theory suggests a link, the sign of the...

Tax deduction of charitable donations is treasury efficient if it generates at least as much in additional donations as the government forgoes in revenue. Yet, the vital measure is the value of the public goods that donations produce. Thus, we reevaluate the efficiency of the tax deduction.Our...

Carbon taxes are viewed by most economists as a cost-effective approach to reducing greenhouse gas emissions. Concerns over adverse impacts to disposable income, and corresponding political acceptability, have led many to propose a "fee-and-dividend" approach, whereby revenue from carbon taxes...

The proper tax treatment of interest expense has been a subject of disagreement since the inception of the modern income tax in the early twentieth century. On one view, the purpose of the financing transaction dictates the tax treatment of interest so that interest paid on borrowing used to...

Using the German census of the manufacturing industry, I analyze the effect of electricity tax exemptions on firm-level markups. To estimate causal effects, I leverage a reform of the rules that determine firms’ eligibility for tax exemption under the ”renewable energy sources act” (EEG)...

Although the antecedents to modern-day taxation systems are embedded in the annals of western civilization, tax exemption for churches and charitable organizations, on the other hand, have a long history that dates back to the ancient Egyptian, Persian and Babylonian civilizations. Priests and...

The Supreme Court held, in Bob Jones University v. United States, that violations of fundamental public policy—including race discrimination in education—disqualify an entity for tax exemption. The holding of the case was broad, and its results cohered with the ideals of progressive society:...

Several recent proposals have advocated using the income tax system to collect user fees to help fund the health care system. While there is a considerable amount of research investigating both how individuals respond to tax incentives for employer provided health insurance and on the effects of...