One strand of research in public economics has found that increasing ethnic diversity leads to reductions in provision of productive public goods. Another strand of research has emphasized the key role that tax and ex...One strand of research in public economics has found that increasing ethnic diversity leads to reductions in provision of productive public goods. Another strand of research has emphasized the key role that tax and expenditure limitations play in the provision of public services. This paper explores the interaction between these two effects. The regression results suggest that the prior results on ethnic diversity are robust when TELs are taken into consideration. In addition, the imposition of TELs mitigates the negative effect of ethnic fragmentation on the share of local spending on education and roads. It also mitigates the positive correlation between ethnic diversity and total local government revenue and expenditure per capita.展开更多
The role of taxation in promoting economic recovery has attracted great-er attention in recent years,with economic dislocation following the Global Financial Crisis and the COVID-19 pandemic.While taxation is only one...The role of taxation in promoting economic recovery has attracted great-er attention in recent years,with economic dislocation following the Global Financial Crisis and the COVID-19 pandemic.While taxation is only one of the factors impacting economic recovery,both economic literature and practical experience show that tax policy can contribute to enhanced growth and therefore greater economic activity.Tax instruments used as a means for promoting economic recovery include tax holidays,preferential tax rates,investment allowances,tax credits and special economic zones.However,there are a range of constraints over tax incentive design imposed by bodies such as the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting,the Forum on Harmful Tax Practices of the OECD and the Code of Conduct on Business Taxation of the European Union.Given the above,this paper sets out practical issues to inform governments seeking to promote economic activity through taxation.展开更多
文摘One strand of research in public economics has found that increasing ethnic diversity leads to reductions in provision of productive public goods. Another strand of research has emphasized the key role that tax and expenditure limitations play in the provision of public services. This paper explores the interaction between these two effects. The regression results suggest that the prior results on ethnic diversity are robust when TELs are taken into consideration. In addition, the imposition of TELs mitigates the negative effect of ethnic fragmentation on the share of local spending on education and roads. It also mitigates the positive correlation between ethnic diversity and total local government revenue and expenditure per capita.
文摘The role of taxation in promoting economic recovery has attracted great-er attention in recent years,with economic dislocation following the Global Financial Crisis and the COVID-19 pandemic.While taxation is only one of the factors impacting economic recovery,both economic literature and practical experience show that tax policy can contribute to enhanced growth and therefore greater economic activity.Tax instruments used as a means for promoting economic recovery include tax holidays,preferential tax rates,investment allowances,tax credits and special economic zones.However,there are a range of constraints over tax incentive design imposed by bodies such as the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting,the Forum on Harmful Tax Practices of the OECD and the Code of Conduct on Business Taxation of the European Union.Given the above,this paper sets out practical issues to inform governments seeking to promote economic activity through taxation.
