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<br>Author-Name:  Sijbren Cnossen<br>Author-X-Name-First: Sijbren<br>Author-X-Name-Last:  Cnossen<br>Author-Email: <br>Author-Workplace-Name:<br>Title: A Proposal to Improve the VAT Treatment of Housing in the European Union<br>Journal: Fiscal Studies<br>Pages: 455-481<br>Issue: 4<br>Volume: 32<br>Year: 2011<br>Month: December <br>Abstract: &lt;p&gt;The treatment of housing is one of the most difficult issues under the VATs in the EU. Ideally, rents and rental values should be taxed just like other consumer goods and services, but doing so would present formidable practical and political difficulties. Under a second-best approach, the value of newly created residential (and other) property is taxed as a proxy for the VAT that should be payable on the flow of housing (building) services. This implies, however, that future increases (and decreases) in the value of the exempt property are left out of the VAT base. To remedy this defect, this paper recommends taxing the increases (refunding the tax related to decreases) realised at the time of sale of the exempt used property. This VAT should replace the current transfer, registration and stamp duties, which are highly distortionary. Beyond that, the VATs in various member states can be improved by limiting the exemption for all used immovable property to housing, by taxing land and by applying the standard rate more widely than is currently the case.&lt;/p&gt;<br>Classification-JEL: H21, H25<br>Keywords: VAT, transfer duty, immovable property, European Union<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.2011.00147.x/abstract<br>File-Format: application/pdf<br>File-Size: 373<br>Handle: RePEc:ifs:fistud:v:32:y:2011:i:4:p:455-481<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  John Jerrim<br>Author-X-Name-First: John<br>Author-X-Name-Last:  Jerrim<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Do UK Higher Education Students Overestimate Their Starting Salary?<br>Journal: Fiscal Studies<br>Pages: 483-509<br>Issue: 4<br>Volume: 32<br>Year: 2011<br>Month: December <br>Abstract: &lt;p&gt;The wage expectations of university students have relevance for human capital theory, models of student enrolment, and public policy on the provision of higher education. However, these expectations have been the subject of relatively little research in European countries, with no contemporary evidence available in the UK. There has also been little consideration in the literature thus far of how much estimates may be biased by non-response and sample selection. This paper thus makes an original contribution to the literature by comparing UK undergraduate students' wage expectations with the actual wages earned by the same cohort on graduation, after attempting to correct for the aforementioned statistical issues in terms of observable characteristics. In contrast to other European studies, I conclude that, on average, full-time students overestimate their starting salary. Yet I also find substantial variation in the extent of overestimation between different subgroups.&lt;/p&gt;<br>Classification-JEL: I2, D84, J30<br>Keywords: expectations, higher education, wages<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.2011.00148.x/abstract<br>File-Format: application/pdf<br>File-Size: 555<br>Handle: RePEc:ifs:fistud:v:32:y:2011:i:4:p:483-509<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  D&oacute;ra Benedek<br>Author-X-Name-First: D&oacute;ra<br>Author-X-Name-Last:  Benedek<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Orsolya Lelkes<br>Author-X-Name-First: Orsolya<br>Author-X-Name-Last:  Lelkes<br>Author-Email: <br>Author-Workplace-Name:<br>Title: The Distributional Implications of Income Under-Reporting in Hungary<br>Journal: Fiscal Studies<br>Pages: 539-560<br>Issue: 4<br>Volume: 32<br>Year: 2011<br>Month: December <br>Abstract: &lt;p&gt;The ability and inclination of specific social groups to evade tax vary widely, and this leads to considerable variation in the actual tax burden on individuals with similar levels of income. Thus, ignoring tax evasion can be seriously misleading in terms of the distributive and fiscal effects of the tax system.&lt;/p&gt;&lt;p&gt;&lt;/p&gt;&lt;p&gt;This paper estimates the distributional implications of income tax evasion in Hungary, based on a random sample of the administrative tax records of nearly 230,000 individuals. Gross incomes declared in the administrative tax returns are compared with incomes stated in a nationally representative household budget survey. Our estimates show that the average rate of underreporting is 9-13 per cent, though this conceals a big difference between the self-employed (who hide the greater part of their income) and employees. The estimates are likely to be lower bounds. These rates are used in a tax-benefit microsimulation model to calculate the fiscal and distributional implications of under-reporting. Tax evasion reduces households' personal income tax payments by about 16-20 per cent. While the poverty rate increases only slightly, income inequality rises significantly, suggesting that high-income households tend to evade tax proportionately more. Finally, we find that tax evasion largely reduces the progressivity of the tax system.&lt;/p&gt;<br>Classification-JEL: C8, D31, H26, H22, H21, I38<br>Keywords: tax policy, tax evasion, income distribution, self-employed<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.2011.00150.x/abstract<br>File-Format: application/pdf<br>File-Size: 384<br>Handle: RePEc:ifs:fistud:v:32:y:2011:i:4:p:539-560<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Sara Maria Riscado<br>Author-X-Name-First: Sara<br>Author-X-Name-Last:  Riscado<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Juraj Stanc&iacute;k<br>Author-X-Name-First: Juraj<br>Author-X-Name-Last:  Stanc&iacute;k<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Timo V&auml;lil&auml<br>Author-X-Name-First: Timo<br>Author-X-Name-Last:  V&auml;lil&auml<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Macro-Fiscal Volatility and the Composition of Public Spending<br>Journal: Fiscal Studies<br>Pages: 511-538<br>Issue: 4<br>Volume: 32<br>Year: 2011<br>Month: December <br>Abstract: &lt;p&gt;&lt;p&gt;&lt;p&gt;Earlier empirical literature has examined some long- and medium-term aspects of macro-fiscal volatility while leaving its short-term fiscal impact unexplored. To help fill that gap, we examine the impact of macro-fiscal volatility on the composition of public spending. To that end, we analyse a panel of 10 EU countries during 1991-2007. Our results suggest that increases in the volatility of regularly-collected and cyclical revenues such as the VAT and income taxes tend to tilt the expenditure composition in favour of public investment. In contrast, increases in the volatility of ad hoc taxes such as capital taxes tend to favour public consumption spending, albeit only a little. We interpret such volatility innovations as conveying news to the fiscal policymaker about the underlying economic conditions, with especially regularly-collected and cyclical taxes prompting short-term cyclical fine-tuning.&lt;/p&gt;&lt;/p&gt;&lt;/p&gt;<br>Classification-JEL: H29, H50, E62, E32, C33<br>Keywords: tax volatility, public investment, public consumption<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.2011.00149.x/abstract<br>File-Format: application/pdf<br>File-Size: 416<br>Handle: RePEc:ifs:fistud:v:32:y:2011:i:4:p:511-538<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  John Creedy<br>Author-X-Name-First: John<br>Author-X-Name-Last:  Creedy<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Jos&eacute F&eacute;lix Sanz-Sanz<br>Author-X-Name-First: Jos&eacute<br>Author-X-Name-Last:  Sanz-Sanz<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Revenue Elasticities in Complex Income Tax Structures: An Application to Spain<br>Journal: Fiscal Studies<br>Pages: 535-561<br>Issue: 4<br>Volume: 31<br>Year: 2011<br>Month: December <br>Abstract: &lt;p&gt;&lt;p&gt;This paper derives analytical expressions for the revenue elasticity of complex income tax systems, as applied to tax units and in aggregate. Among the complexities considered are the schedular nature of income tax systems and the role of central and regional governments, along with the existence of a range of intricate tax credits and eligible expenditures and deductions. Empirical estimates are obtained for the case of Spain using a cross-sectional data set, which enables a number of important ancillary elasticities (relating to allowances and tax credits, and different income sources) to be estimated. It is found that there is considerable variation among tax units in the revenue elasticity, with highly positively skewed distributions. The nature of the distributions varies among regions of Spain, and the aggregate elasticities for each region were found to display some variation associated with income distribution differences. The national aggregate is found to be around 1.3.&lt;/p&gt;&lt;/p&gt;<br>Classification-JEL: H24, H71<br>Keywords: income taxation, revenue elasticity<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.2010.00124.x/abstract<br>File-Format: application/pdf<br>File-Size: 421<br>Handle: RePEc:ifs:fistud:v:31:y:2011:i:4:p:535-561<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name: Chris Evans<br>Author-X-Name-First: Chris<br>Author-X-Name-Last: Evans<br>Author-Email: cc.evans@unsw.edu.au<br>Author-Workplace-Name: Institute for Fiscal Studies and Atax, University of New South Wales<br>Title: Reflections on the Mirrlees Review: an Australasian perspective<br>Journal: Fiscal Studies<br>Pages: 375-393<br>Issue: 3<br>Volume: 32<br>Year: 2011<br>Month: September<br>Abstract: &lt;p&gt;&lt;p&gt;This paper compares and contrasts the UK's Mirrlees Review with major tax reviews that have taken place at about the same time in Australia (the Henry Review) and New Zealand (the Tax Working Group Review). It suggests that the three countries share many cultural, social, economic and political traditions and institutions, but that this shared heritage does not necessarily extend to the realms of tax reviews and the possible roads to tax reform that the countries may tread. There are some similarities in aspects of the processes of tax review that have taken place in the three countries (though rather more differences), and all three countries also share a commitment to broadly similar principles underlying the recommendations made by each of the three reviews. But the specific proposals made by each of the reviews do not share much common ground. The differences are more apparent than any similarities that may occur, an outcome (in part at least) predicated upon the very different political, economic and fiscal imperatives prevailing in each of the three countries.&lt;/p&gt;&lt;p&gt;The paper also suggests that it is unlikely that the three reviews will have the same long-term impact or effects upon their respective national tax systems. It may be the case, the paper contends, that there is a form of tradeoff between political independence (as in the Mirrlees Review) and the direct policy impact that is more apparent in countries whose reviews had strong government backing (as was the case in New Zealand) - at least in the short term. Moreover, independent reviews (such as the Mirrlees Review) may also lead to more radical proposals, which will require a longer time maturing 'on the shelf' before they may be ripe for implementation.&lt;/p&gt;&lt;/p&gt;<br>Classification-JEL: H20, K34<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.2011.00142.x/abstract<br>File-Format: application/pdf<br>File-Size: 338<br>Handle: RePEc:ifs:fistud:v:32:y:2011:i:3:p:375-393<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name: James Mirrlees<br>Author-X-Name-First: James<br>Author-X-Name-Last: Mirrlees<br>Author-Email: jam28@econ.cam.ac.uk<br>Author-Workplace-Name: Institute for Fiscal Studies and University of Cambridge and The Chinese University of Hong Kong<br>Author-Name: Stuart Adam<br>Author-X-Name-First: Stuart<br>Author-X-Name-Last: Adam<br>Author-Email: s.adam@ifs.org.uk<br>Author-Workplace-Name: Institute for Fiscal Studies<br>Author-Name: Tim Besley<br>Author-X-Name-First: Tim<br>Author-X-Name-Last: Besley<br>Author-Email: t.besley@lse.ac.uk<br>Author-Workplace-Name: Institute for Fiscal Studies and London School of Economics<br>Author-Name: Richard Blundell<br>Author-X-Name-First: Richard<br>Author-X-Name-Last: Blundell<br>Author-Email: r.blundell@ucl.ac.uk<br>Author-Workplace-Name: Institute for Fiscal Studies and University College London<br>Author-Name: Steve Bond<br>Author-X-Name-First: Steve<br>Author-X-Name-Last: Bond<br>Author-Email: steve.bond@economics.ox.ac.uk<br>Author-Workplace-Name: Institute for Fiscal Studies and Nuffield College, Oxford<br>Author-Name: Robert Chote<br>Author-X-Name-First: Robert<br>Author-X-Name-Last: Chote<br>Author-Email: <br>Author-Workplace-Name: Institute for Fiscal Studies and Office for Budget Responsibility<br>Author-Name: Malcolm Gammie<br>Author-X-Name-First: Malcolm<br>Author-X-Name-Last: Gammie<br>Author-Email: mgammie@compuserve.com<br>Author-Workplace-Name: Institute for Fiscal Studies and One Essex Court<br>Author-Name: Paul Johnson<br>Author-X-Name-First: Paul<br>Author-X-Name-Last: Johnson<br>Author-Email: paul_j@ifs.org.uk<br>Author-Workplace-Name: Institute for Fiscal Studies<br>Author-Name: Gareth Myles<br>Author-X-Name-First: Gareth<br>Author-X-Name-Last: Myles<br>Author-Email: g.d.myles@ex.ac.uk<br>Author-Workplace-Name: Institute for Fiscal Studies and University of Exeter<br>Author-Name: James Poterba<br>Author-X-Name-First: James<br>Author-X-Name-Last: Poterba<br>Author-Email: phaan@diw.de<br>Author-Workplace-Name: Institute for Fiscal Studies and MIT<br>Title: The Mirrlees Review: conclusions and recommendations for reform<br>Journal: Fiscal Studies<br>Pages: 331-359<br>Issue: 3<br>Volume: 32<br>Year: 2011<br>Month: September<br>Abstract: &lt;p&gt;&lt;p&gt;This paper provides a summary of the conclusions and recommendations of the Mirrlees Review of the UK tax system. The characteristics that a good tax system should possess are described and used to assess the current UK system. A package of reforms for the UK system which will move it closer to the ideal is proposed. Issues related to transition and to practical implementation of the reform package are discussed.&lt;/p&gt;&lt;/p&gt;<br>Classification-JEL: H2, H3, H8<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.2011.00140.x/abstract<br>File-Format: application/pdf<br>File-Size: 403<br>Handle: RePEc:ifs:fistud:v:32:y:2011:i:3:p:331-359<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name: Roger Gordon<br>Author-X-Name-First: Roger<br>Author-X-Name-Last: Gordon<br>Author-Email: rogordon@ucsd.edu<br>Author-Workplace-Name: Institute for Fiscal Studies and University of California, San Diego <br>Title: Commentary on Tax by Design: The Mirrlees Review<br>Journal: Fiscal Studies<br>Pages: 395-414<br>Issue: 3<br>Volume: 32<br>Year: 2011<br>Month: September<br>Abstract: &lt;p&gt;&lt;p&gt;The objective of this commentary is to explore the relationship between the reforms proposed in Tax by Design and the recent academic literature. This literature provides solid support for the Mirrlees Review's dramatic proposals to eliminate any personal taxes on the normal rate of return to savings and to eliminate any net tax on new business investment. There is also solid support for the full taxation of any excess returns on financial investments, including income from capital gains.&lt;/p&gt;&lt;p&gt;The commentary does raise questions, though, about the specific methods proposed to achieve these reforms. The proposal advocates adoption of rate-of-return allowances for individual savings under the personal tax and for business investment under the corporate tax. A commonly proposed alternative is to redefine the personal tax base to equal annual consumption and to allow expensing of new investment under the corporate tax. With such reforms to the personal tax, there is no longer even a clear reason to retain a corporate tax. The commentary also emphasises the pressures arising from cross-border investments and cross-border migration of individuals, issues given little attention in the review.&lt;/p&gt;&lt;/p&gt;<br>Classification-JEL: H24, H25, H27<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.2011.00143.x/abstract<br>File-Format: application/pdf<br>File-Size: 359<br>Handle: RePEc:ifs:fistud:v:32:y:2011:i:3:p:395-414<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Louis Kaplow<br>Author-X-Name-First: Louis<br>Author-X-Name-Last:  Kaplow<br>Author-Email: <br>Author-Workplace-Name:<br>Title: An optimal tax system<br>Journal: Fiscal Studies<br>Pages: 415-435<br>Issue: 3<br>Volume: 32<br>Year: 2011<br>Month: September<br>Abstract: &lt;p&gt;A notable feature and principal virtue of Tax by Design is its system-wide perspective on different elements of the tax system. This review essay builds on this trait and offers a more explicit foundation for the report's general approach, drawing on a distribution-neutral methodology that is developed in other work. This technique is then employed to illuminate and extend Tax by Design's analysis regarding the VAT, environmental taxation, wealth transfer taxation and income transfers.&lt;/p&gt;<br>Classification-JEL: H20, H21, H23, H24, H53<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.2011.00144.x/abstract<br>File-Format: application/pdf<br>File-Size: 340<br>Handle: RePEc:ifs:fistud:v:32:y:2011:i:3:p:415-435<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Christian Keuschnigg<br>Author-X-Name-First: Christian<br>Author-X-Name-Last:  Keuschnigg<br>Author-Email: <br>Author-Workplace-Name:<br>Title: The design of capital income taxation: reflections on the Mirrlees Review<br>Journal: Fiscal Studies<br>Pages: 437-452<br>Issue: 3<br>Volume: 32<br>Year: 2011<br>Month: September<br>Abstract: &lt;p&gt;This commentary reflects on the recommendations of the Mirrlees Review on tax reform, with a special focus on capital income taxation. Regarding the alternatives of moving to a consumption-based tax system, the commentary discusses the relative merits of choosing an ACE system (allowance for corporate equity) rather than a cash-flow tax at the company level. It reviews the arguments in favour of full elimination of tax on the normal return to savings at the personal level, which contrasts with alternative tax reform proposals recommending a positive but low and flat tax rate on personal capital income. The paper also discusses how existing computational models should be extended for a meaningful quantification of the gains and costs of implementing a tax reform along the lines of the Mirrlees Review proposals.&lt;/p&gt;<br>Classification-JEL: H21, H23, H24, H25<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.2011.00145.x/abstract<br>File-Format: application/pdf<br>File-Size: 331<br>Handle: RePEc:ifs:fistud:v:32:y:2011:i:3:p:437-452<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name: Paul Johnson<br>Author-X-Name-First: Paul<br>Author-X-Name-Last: Johnson<br>Author-Email: paul_j@ifs.org.uk<br>Author-Workplace-Name: Institute for Fiscal Studies<br>Author-Name: Gareth Myles<br>Author-X-Name-First: Gareth<br>Author-X-Name-Last: Myles<br>Author-Email: g.d.myles@ex.ac.uk<br>Author-Workplace-Name: Institute for Fiscal Studies and University of Exeter<br>Title: The Mirrlees Review<br>Journal: Fiscal Studies<br>Pages: 319-329<br>Issue: 3<br>Volume: 32<br>Year: 2011<br>Month: September<br>Abstract: &lt;p&gt;&lt;/p&gt;<br>Classification-JEL: D6, H2, H3<br>Keywords: tax system, reform, efficiency<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.2011.00139.x/abstract<br>File-Format: application/pdf<br>File-Size: 288<br>Handle: RePEc:ifs:fistud:v:32:y:2011:i:3:p:319-329<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  John Creedy<br>Author-X-Name-First: John<br>Author-X-Name-Last:  Creedy<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Reflections on Tax by Design<br>Journal: Fiscal Studies<br>Pages: 361-373<br>Issue: 3<br>Volume: 32<br>Year: 2011<br>Month: September<br>Abstract: &lt;p&gt;&lt;p&gt;&lt;p&gt;This paper reviews Tax by Design. Comparisons are made with the earlier Meade Report and with recent tax reviews in Australia and New Zealand. Emphasis is given to the role of value judgements in tax design and the gulf between theory and practice.&lt;/p&gt;&lt;/p&gt;&lt;/p&gt;<br>Classification-JEL: H2, H3<br>Keywords: tax structure, optimal tax, excess burdens<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.2011.00141.x/abstract<br>File-Format: application/pdf<br>File-Size: 323<br>Handle: RePEc:ifs:fistud:v:32:y:2011:i:3:p:361-373<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name: Lorraine Dearden<br>Author-X-Name-First: Lorraine<br>Author-X-Name-Last: Dearden<br>Author-Email: l.dearden@ifs.org.uk<br>Author-Workplace-Name: Institute for Fiscal Studies and Bedford Group, Institute of Education, University of London<br>Author-Name: Anna Vignoles<br>Author-X-Name-First: Anna<br>Author-X-Name-Last: Vignoles<br>Author-Email: <br>Author-Workplace-Name: Institute for Fiscal Studies and Institute of Education<br>Title: Schools, Markets and League Tables<br>Journal: Fiscal Studies<br>Pages: 179-186<br>Issue: 2<br>Volume: 32<br>Year: 2011<br>Month: August   <br>Abstract: &lt;p&gt;&lt;p&gt;&lt;p&gt;&lt;p&gt;&lt;/p&gt;&lt;/p&gt;&lt;/p&gt;&lt;/p&gt;<br>Classification-JEL: I20, I28<br>Keywords: schools, markets, education, production function<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.2011.00131.x/pdf<br>File-Format: application/pdf<br>File-Size: 275<br>Handle: RePEc:ifs:fistud:v:32:y:2011:i:2:p:179-186<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Fl&aacute;vio Cunha<br>Author-X-Name-First: Fl&aacute;vio<br>Author-X-Name-Last:  Cunha<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Recent Developments in the Identification and Estimation of Production Functions of Skills<br>Journal: Fiscal Studies<br>Pages: 297-316<br>Issue: 2<br>Volume: 32<br>Year: 2011<br>Month: August   <br>Abstract: &lt;p&gt;&lt;p&gt;&lt;p&gt;This paper summarises the literature on the estimation of production functions governing the process of skill formation. This literature focuses on attacking three problems. The first is the endogeneity of measures of investments. The second is the measurement error in skills and investments that are widely used in the literature. Endogeneity and measurement error&lt;/p&gt;&lt;p&gt;&lt;/p&gt;&lt;p&gt;&lt;/p&gt;&lt;p&gt;produce, in general, inconsistent estimates. The third problem is the lack of a metric for tests designed to measure skills. The fact that scores have no cardinal meaning implies that the coefficients of the production function have no economic meaning. We show that anchoring test scores on outcomes that have a natural metric produces estimates that are economically interpretable.&lt;/p&gt;&lt;/p&gt;&lt;/p&gt;<br>Classification-JEL: A12<br>Keywords: cognitive skills, non-cognitive skills, dynamic factor analysis, endogeneity of inputs, anchoring test scores<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.2011.00138.x/pdf<br>File-Format: application/pdf<br>File-Size: 402<br>Handle: RePEc:ifs:fistud:v:32:y:2011:i:2:p:297-316<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  George Leckie<br>Author-X-Name-First: George<br>Author-X-Name-Last:  Leckie<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Harvey Goldstein<br>Author-X-Name-First: Harvey<br>Author-X-Name-Last:  Goldstein<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Understanding Uncertainty in School League Tables<br>Journal: Fiscal Studies<br>Pages: 207-224<br>Issue: 2<br>Volume: 32<br>Year: 2011<br>Month: August   <br>Abstract: &lt;p&gt;&lt;p&gt;In England, contextual value added (CVA) school performance tables are published annually by the government. These tables present statisticalmodel-&lt;/p&gt;&lt;p&gt;&lt;/p&gt;&lt;p&gt;based estimates of the educational effectiveness of schools, together with 95 per cent confidence intervals to communicate their statistical&lt;/p&gt;&lt;p&gt;&lt;/p&gt;&lt;p&gt;uncertainty. However, this information, particularly the notion of statistical uncertainty, is hard for users to understand. There is a real need to make school performance tables clearer. The media attempt to do this for the public by ranking schools in so-called 'school league tables'; however, they&lt;/p&gt;&lt;p&gt;&lt;/p&gt;&lt;p&gt;invariably discard the 95 per cent confidence intervals and, in doing so, encourage the public to over-interpret differences in schools' ranks. In this paper, we explore a simulation method to produce simple graphical summaries of schools' ranks that clearly communicate their associated&lt;/p&gt;&lt;p&gt;&lt;/p&gt;&lt;p&gt;uncertainty.&lt;/p&gt;&lt;/p&gt;<br>Classification-JEL: I21, I28<br>Keywords: contextual value added, institutional comparisons, multilevel model, performance indicators, school accountability, school choice, school effectiveness, school league tables, school performance tables, value added<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.2011.00133.x/pdf<br>File-Format: application/pdf<br>File-Size: 377<br>Handle: RePEc:ifs:fistud:v:32:y:2011:i:2:p:207-224<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Rebecca Allen<br>Author-X-Name-First: Rebecca<br>Author-X-Name-Last:  Allen<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Simon Burgess<br>Author-X-Name-First: Simon<br>Author-X-Name-Last:  Burgess<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Can School League Tables Help Parents Choose Schools?<br>Journal: Fiscal Studies<br>Pages: 245-261<br>Issue: 2<br>Volume: 32<br>Year: 2011<br>Month: August   <br>Abstract: &lt;p&gt;&lt;p&gt;Information on schools' performance is central to the school choice process in England. This paper evaluates school performance tables against criteria of functionality, relevance and comprehensibility. We estimate a model to judge functionality by setting up the following question: 'In which feasible school will my child achieve the highest exam score?'. We show that neither of the current leading performance measures scores very well. We propose an alternative measure which performs better on relevance and comprehensibility and not significantly worse on functionality. We demonstrate how the measure could be best delivered to parents. We also describe the trade-offs between the criteria of functionality and relevance and between comprehensibility and relevance.&lt;/p&gt;&lt;/p&gt;<br>Classification-JEL: I20<br>Keywords: school choice, performance tables<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.2011.00135.x/pdf<br>File-Format: application/pdf<br>File-Size: 376<br>Handle: RePEc:ifs:fistud:v:32:y:2011:i:2:p:245-261<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name: Lorraine Dearden<br>Author-X-Name-First: Lorraine<br>Author-X-Name-Last: Dearden<br>Author-Email: l.dearden@ifs.org.uk<br>Author-Workplace-Name: Institute for Fiscal Studies and Bedford Group, Institute of Education, University of London<br>Author-Name:  Alfonso Miranda<br>Author-X-Name-First: Alfonso<br>Author-X-Name-Last:  Miranda<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Sophia Rabe-Hesketh<br>Author-X-Name-First: Sophia<br>Author-X-Name-Last:  Rabe-Hesketh<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Measuring School Value Added with Administrative Data: The Problem of Missing Variables<br>Journal: Fiscal Studies<br>Pages: 263-278<br>Issue: 2<br>Volume: 32<br>Year: 2011<br>Month: August   <br>Abstract: &lt;p&gt;&lt;p&gt;The UK Department for Education (DfE) calculates contextual value added (CVA) measures of school performance using administrative data that contain only a limited set of explanatory variables. Differences in schools' intakes regarding characteristics such as mother's education are not accounted for due to the lack of background information in the data. In this&lt;/p&gt;&lt;p&gt;&lt;/p&gt;&lt;p&gt;paper, we use linked survey and administrative data to assess the potential biases that missing control variables cause in the calculation of CVA&lt;/p&gt;&lt;p&gt;&lt;/p&gt;&lt;p&gt;measures of school performance. We find that ignoring the effect of mother's education leads the DfE to erroneously overpenalise low-achieving&lt;/p&gt;&lt;p&gt;&lt;/p&gt;&lt;p&gt;schools that have a greater proportion of mothers with low qualifications and to over-reward high-achieving schools that have a greater proportion of mothers with higher qualifications. This suggests that collecting a rich set of controls in administrative records is necessary for producing reliable CVA measures of school performance.&lt;/p&gt;&lt;/p&gt;<br>Classification-JEL: I21, C18<br>Keywords: contextual value added, missing covariates, informative sample selection, administrative data, UK<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.2011.00136.x/pdf<br>File-Format: application/pdf<br>File-Size: 467<br>Handle: RePEc:ifs:fistud:v:32:y:2011:i:2:p:263-278<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Herbert W. Marsch<br>Author-X-Name-First: Herbert<br>Author-X-Name-Last:  Marsch<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Benjamin Nagengast<br>Author-X-Name-First: Benjamin<br>Author-X-Name-Last:  Nagengast<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  John Fletcher<br>Author-X-Name-First: John<br>Author-X-Name-Last:  Fletcher<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Ioulia Televantou<br>Author-X-Name-First: Ioulia<br>Author-X-Name-Last:  Televantou<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Assessing Educational Effectiveness: Policy Implications from Diverse Areas of Research<br>Journal: Fiscal Studies<br>Pages: 279-295<br>Issue: 2<br>Volume: 32<br>Year: 2011<br>Month: August   <br>Abstract: &lt;p&gt;&lt;p&gt;In England, school league tables - based on student scores on standardised tests - are used extensively by policymakers and parents as one of the key measures of secondary school effectiveness. Here, we briefly review the English contextual value added (E-CVA) model used to construct league tables of school effectiveness and juxtapose it with studies that focus on teacher effectiveness, other criteria of educational effectiveness and effectiveness at the university level. Methodologically, we consider the fragility of causal inferences based on psychometric and econometric value added models, and new multilevel models that take into account measurement and sampling error. Value added models largely ignore measurement error which systematically biases the outcomes, but both&lt;/p&gt;&lt;p&gt;&lt;/p&gt;&lt;p&gt;measurement and sampling error can be incorporated into doubly-latent models that integrate multilevel and latent variable approaches. The E-CVA model focuses on school effects and ignores teacher effects. However,&lt;/p&gt;&lt;p&gt;&lt;/p&gt;&lt;p&gt;research on both secondary schools and universities shows that there is little variance at the school or university level, but much more at the teacher level. E-CVA models consider test scores as the only indicator of effectiveness;&lt;/p&gt;&lt;p&gt;&lt;/p&gt;&lt;p&gt;there is little emphasis on other indicators of effectiveness, tests of the construct validity of test scores as a measure of effectiveness in relation to other indicators, or formative evaluations to improve effectiveness. Research&lt;/p&gt;&lt;p&gt;&lt;/p&gt;&lt;p&gt;on university students' ratings of teachers incorporates a broader perspective to construct validation: multidimensional factor structure, reliability/stability, relations with multiple criteria of effective teaching, and interventions to improve teaching. Both areas of research could learn from the other, and many strategies from the higher-education literature could be incorporated into the literature on educational effectiveness at the primaryand secondary-school levels.&lt;/p&gt;&lt;/p&gt;<br>Classification-JEL: C18, I121<br>Keywords: school effectiveness; contextual value added models; teacher effects; university student ratings of teaching effectiveness<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.2011.00137.x/pdf<br>File-Format: application/pdf<br>File-Size: 380<br>Handle: RePEc:ifs:fistud:v:32:y:2011:i:2:p:279-295<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name: Alastair Muriel<br>Author-X-Name-First: Alastair<br>Author-X-Name-Last: Muriel<br>Author-Email: ali_m@ifs.org.uk<br>Author-Workplace-Name: Institute for Fiscal Studies<br>Author-Name:  Jeffrey Smith<br>Author-X-Name-First: Jeffrey<br>Author-X-Name-Last:  Smith<br>Author-Email: <br>Author-Workplace-Name:<br>Title: On Educational Performance Measures<br>Journal: Fiscal Studies<br>Pages: 187-206<br>Issue: 2<br>Volume: 32<br>Year: 2011<br>Month: August   <br>Abstract: &lt;p&gt;&lt;p&gt;&lt;p&gt;Quantitative performance measures (QPMs) of schools are playing an everlarger role in education systems on both sides of the Atlantic. In this paper, we outline the rationale for the use of such measures in education, review the&lt;/p&gt;&lt;p&gt;&lt;/p&gt;&lt;p&gt;&lt;/p&gt;&lt;p&gt;literature relating to several important problems associated with their use and argue that they nonetheless have a positive role to play in improving the quality of education. We delineate several institutional reforms that would help schools to respond 'positively' to QPMs, emphasising the importance of agents' flexibility to change the way they work and the importance of a sound knowledge base regarding 'what works' in raising attainment. We suggest that the present institutional set-ups in both England and the US too often hold schools accountable for outcomes over which they have little control - but that such problems are far from insurmountable.&lt;/p&gt;&lt;/p&gt;&lt;/p&gt;<br>Classification-JEL: H52, I2, I28<br>Keywords: school quality, performance measures, education incentives<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.2011.00132.x/pdf<br>File-Format: application/pdf<br>File-Size: 346<br>Handle: RePEc:ifs:fistud:v:32:y:2011:i:2:p:187-206<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name: Lorraine Dearden<br>Author-X-Name-First: Lorraine<br>Author-X-Name-Last: Dearden<br>Author-Email: l.dearden@ifs.org.uk<br>Author-Workplace-Name: Institute for Fiscal Studies and Bedford Group, Institute of Education, University of London<br>Author-Name: John Micklewright<br>Author-X-Name-First: John<br>Author-X-Name-Last: Micklewright<br>Author-Email: <br>Author-Workplace-Name: Institute for Fiscal Studies and Institute of Education<br>Author-Name: Anna Vignoles<br>Author-X-Name-First: Anna<br>Author-X-Name-Last: Vignoles<br>Author-Email: <br>Author-Workplace-Name: Institute for Fiscal Studies and Institute of Education<br>Title: The Effectiveness of English Secondary Schools for Pupils of Different Ability Levels<br>Journal: Fiscal Studies<br>Pages: 225-244<br>Issue: 2<br>Volume: 32<br>Year: 2011<br>Month: August   <br>Abstract: &lt;p&gt;&lt;p&gt;&lt;p&gt;'League table' information on school effectiveness in England generally relies either on a comparison of the average outcomes of pupils by school(for example, mean exam scores) or on estimates of the average value added by each school. These approaches assume that the  information parents and policymakers need most to judge school effectiveness is the average&lt;/p&gt;&lt;p&gt;&lt;/p&gt;&lt;p&gt;&lt;/p&gt;&lt;p&gt;achievement level or gain in a particular school. Yet schools can be differentially effective for children with differing levels of prior attainment. We present evidence on the extent of differential effectiveness in English secondary schools and find that even the most conservative estimate suggests that around one-quarter of schools in England are differentially effective for students of differing prior ability levels. This affects an even larger proportion of children, as larger schools are more likely to be&lt;/p&gt;&lt;p&gt;&lt;/p&gt;&lt;p&gt;&lt;/p&gt;&lt;p&gt;differentially effective.&lt;/p&gt;&lt;/p&gt;&lt;/p&gt;<br>Classification-JEL: I2<br>Keywords: school effectiveness, school choice, value added, England<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.2011.00134.x/pdf<br>File-Format: application/pdf<br>File-Size: 374<br>Handle: RePEc:ifs:fistud:v:32:y:2011:i:2:p:225-244<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Emanuele Bacchiocchi<br>Author-X-Name-First: Emanuele<br>Author-X-Name-Last:  Bacchiocchi<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Elisa Borghi<br>Author-X-Name-First: Elisa<br>Author-X-Name-Last:  Borghi<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Alessandro Missale<br>Author-X-Name-First: Alessandro<br>Author-X-Name-Last:  Missale<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Public Investment under Fiscal Constraints<br>Journal: Fiscal Studies<br>Pages: 11-42<br>Issue: 1<br>Volume: 32<br>Year: 2011<br>Month: March    <br>Abstract: &lt;p&gt;The new member states (NMS) of the European Union must comply with the Stability and Growth Pact (SGP) and the investment goals implied by the Lisbon Agenda. However, the SGP rules may result in underinvestment or distortions in the allocation of public expenditure. This paper provides new evidence on the effects of debt sustainability and the SGP fiscal constraints on government expenditure on fixed capital, education and health in OECD countries by estimating government expenditure reaction functions to public debt and cyclical conditions. We find that, at high levels of debt, government capital expenditure and education expenditure are significantly reduced as the debt ratio increases in all OECD countries independently of EMU (or EU) membership. By contrast, neither capital expenditure nor education expenditure is affected by the debt ratio in low-debt countries. These findings are robust to the inclusion of the government deficit in the estimated reaction functions. Hence, it appears that EU countries have been constrained in their investment decisions more by the need to ensure debt sustainability than by the rules of the SGP. In low-debt NMS countries, public investment even increases with the debt ratio, a finding that is reassuring for their growth prospects. However, a less optimistic picture emerges when we focus on expenditures on public health and education, as it appears that NMS governments cut such expenditures - even at low levels of debt - as the deficit increases. Problems in controlling total expenditure together with the preventive arm of the SGP may have penalised investment in human capital in the NMS while leaving fixed capital investment unaffected.&lt;/p&gt;<br>Classification-JEL:  E62, H52, H54, H63<br>Keywords: government capital expenditure, government education expenditure, public investment, public health expenditure, debt sustainability,  EU new member states, Stability and Growth Pact<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.2011.00126.x/abstract<br>File-Format: application/pdf<br>File-Size: 272<br>Handle: RePEc:ifs:fistud:v:32:y:2011:i:1:p:11-42<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name: Gareth Myles<br>Author-X-Name-First: Gareth<br>Author-X-Name-Last: Myles<br>Author-Email: g.d.myles@ex.ac.uk<br>Author-Workplace-Name: Institute for Fiscal Studies and University of Exeter<br>Author-Name:  Massimo Florio<br>Author-X-Name-First: Massimo<br>Author-X-Name-Last:  Florio<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Public Investment and Cost-Benefit Analysis in the European Union<br>Journal: Fiscal Studies<br>Pages: 3-9<br>Issue: 1<br>Volume: 32<br>Year: 2011<br>Month: March    <br>Abstract: &lt;p&gt;&lt;/p&gt;<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.2011.00125.x/abstract<br>File-Format: application/pdf<br>File-Size: 147<br>Handle: RePEc:ifs:fistud:v:32:y:2011:i:1:p:3-9<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Jan Hanousek<br>Author-X-Name-First: Jan<br>Author-X-Name-Last:  Hanousek<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Evzen Kocenda<br>Author-X-Name-First: Evzen<br>Author-X-Name-Last:  Kocenda<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Public Investment and Fiscal Performance in the New EU Member States<br>Journal: Fiscal Studies<br>Pages: 43-71<br>Issue: 1<br>Volume: 32<br>Year: 2011<br>Month: March    <br>Abstract: &lt;p&gt;In this paper, we analyse the dynamics of public investment and public finance in the new members of the European Union, and also how they were affected by changes in economic freedom and corruption. We find that improvements in economic freedom tend to be associated with increases in public investment, while reductions in corruption produce effects going in both directions. Similarly, we show that increases in public investment are often linked with decreases as well as increases in corruption. In terms of the public finances, we detect mostly improvements in debt when there is less economic regulation, while results for the deficit are less conclusive. On the other hand, improvements in the corruption environment are mostly associated with decreases in the deficit as well as debt. As a general rule that follows from our results, steps aimed at reducing corruption and the degree of economic regulation should lead towards improvements in the fiscal position of most of the new EU countries.&lt;/p&gt;<br>Classification-JEL: E61, E62, F42, H50, H60, O11<br>Keywords: public finance, public investment, economic freedom, corruption, EU convergence and integration, macroeconomic policy, fiscal reforms, new EU members<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.2011.00127.x/abstract<br>File-Format: application/pdf<br>File-Size: 442<br>Handle: RePEc:ifs:fistud:v:32:y:2011:i:1:p:43-71<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Chiara Del Bo<br>Author-X-Name-First: Chiara<br>Author-X-Name-Last:  Bo<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Carlo Fiorio<br>Author-X-Name-First: Carlo<br>Author-X-Name-Last:  Fiorio<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Massimo Florio<br>Author-X-Name-First: Massimo<br>Author-X-Name-Last:  Florio<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Shadow Wages for the EU Regions<br>Journal: Fiscal Studies<br>Pages: 109-143<br>Issue: 1<br>Volume: 32<br>Year: 2011<br>Month: March    <br>Abstract: &lt;p&gt;According to cost-benefit analysis theory, the shadow wage rate (SWR) is the social opportunity cost of labour. After reviewing earlier theoretical and empirical literature, we define the SWR under four labour market conditions: fairly socially efficient (FSE), quasi-Keynesian unemployment (QKU), urban labour dualism (ULD) and rural labour dualism (RLD). We offer, for the first time, a short-cut empirical estimation of the shadow wages for the European Union (EU) at the regional (NUTS2) level. Our estimated values are in the form of conversion factors, i.e. coefficients that translate actual observed real wages into shadow wages, as required by the evaluation of public investment projects under the Structural Funds of the EU. Our results are obtained with an empirical strategy that is easy to implement with aggregate regional data, differently from traditional micro-data-based approaches to the estimation of the SWR, which are costly, project specific and often difficult to apply because of lack of information.&lt;/p&gt;<br>Classification-JEL: H43, D61, R23<br>Keywords: shadow wage, project evaluation, EU regions<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.2011.00129.x/abstract<br>File-Format: application/pdf<br>File-Size: 571<br>Handle: RePEc:ifs:fistud:v:32:y:2011:i:1:p:109-143<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Emile Quinet<br>Author-X-Name-First: Emile<br>Author-X-Name-Last:  Quinet<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Cost-Benefit Indicators and Transport Programming<br>Journal: Fiscal Studies<br>Pages: 145-175<br>Issue: 1<br>Volume: 32<br>Year: 2011<br>Month: March    <br>Abstract: &lt;p&gt;The methodology of investment appraisal through cost-benefit analysis has received a lot of attention in the economics literature. However, the major part of the work has focused on the evaluation of yearly benefits and their components. Most guidelines list some indicators, such as the internal rate of return, the net present value per euro spent or the first-year benefit-cost ratio, but with no clear indication of how and in which cases they should be used. Building on the transport case, this paper aims to fill this gap. It recalls the teachings of economic analysis for project prioritisation, based on the principle of maximising the net present value. Through simulations, it examines how the various indicators perform, considering two situations, with and without budget constraints. It turns out that the various indicators perform roughly the same as long as the projects under comparison have similar benefit patterns over time, and using them does not induce losses that are too large, though the order of implementation is rather different from the optimal one. However, the indicators lead to huge under-optimisations when the projects have different patterns. The conclusion is that rigorous programme optimisation should be preferred to the use of indicators, and would encourage a wider use of cost-benefit analysis, which is presently too often limited to checking projects one by one.&lt;/p&gt;<br>Classification-JEL: C6, D6, D92, H43, L91<br>Keywords: project appraisal, investment programming, linear programming, budget constraint<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.2011.00130.x/abstract<br>File-Format: application/pdf<br>File-Size: 307<br>Handle: RePEc:ifs:fistud:v:32:y:2011:i:1:p:145-175<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  David J. Evans<br>Author-X-Name-First: David<br>Author-X-Name-Last:  Evans<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Erhun Kula<br>Author-X-Name-First: Erhun<br>Author-X-Name-Last:  Kula<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Social Discount Rates and Welfare Weights for Public Investment Decisions under Budgetary Restrictions: The Case of Cyprus<br>Journal: Fiscal Studies<br>Pages: 73-107<br>Issue: 1<br>Volume: 32<br>Year: 2011<br>Month: March    <br>Abstract: &lt;p&gt;This paper focuses on the estimation of key welfare parameters for incorporation into social cost benefit analysis (CBA) with special reference to Cyprus and its unique regional problems. In particular, the theory and application of social discount rates and regional welfare weights are considered from the perspective of the European Commission as both supranational planner and provider of major funding for investment in the EU 12 area. The aim is to provide answers to three main questions. First, should different discount rates be applied in the appraisal of projects impacting on the Turkish and Greek regions of the island? Second, if different discount rates apply, then what approach should be taken in the discounting of costs and benefits for projects impacting on the entire island? Finally, what is the best method to estimate regional welfare weights for Cyprus and how should these weights be applied in social CBA in order to take proper account of the considerably lower average standard of living in North Cyprus? This particular case study serves to highlight a practical procedure, with suitable theoretical underpinnings, for the calculation and incorporation of regional welfare weights in social CBA more generally and especially with regard to Europe.&lt;/p&gt;<br>Classification-JEL: D60, D61, H24, R13<br>Keywords: cost benefit analysis, social discount rates, regional welfare weights, Cyprus, EU<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.2011.00128.x/abstract<br>File-Format: application/pdf<br>File-Size: 355<br>Handle: RePEc:ifs:fistud:v:32:y:2011:i:1:p:73-107<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name: Haroon Chowdry<br>Author-X-Name-First: Haroon<br>Author-X-Name-Last: Chowdry<br>Author-Email: haroon_c@ifs.org.uk<br>Author-Workplace-Name: Institute for Fiscal Studies<br>Author-Name: Claire Crawford<br>Author-X-Name-First: Claire<br>Author-X-Name-Last: Crawford<br>Author-Email: c.crawford@ifs.org.uk<br>Author-Workplace-Name: Institute for Fiscal Studies<br>Author-Name: Alissa Goodman<br>Author-X-Name-First: Alissa<br>Author-X-Name-Last: Goodman<br>Author-Email: a.goodman@ifs.org.uk<br>Author-Workplace-Name: Institute for Fiscal Studies<br>Title: The role of attitudes and behaviours in explaining socio-economic differences in attainment at age 16<br>Journal: Fiscal Studies<br>Pages: 59-76<br>Issue: 1<br>Volume: 2<br>Year: 2011<br>Month: February <br>Abstract: &lt;p&gt;&lt;p&gt;It is well known that children growing up in poor families leave school with considerably lower qualifications than children from better off backgrounds. Using a simple decomposition analysis, we show that around two thirds of the socio-economic gap in attainment at age 16 can be accounted for by long-run family background characteristics and prior ability, suggesting that circumstances and investments made considerably earlier in the child's life explain the majority of the gap in test scores between young people from rich and poor families. However, we also find that differences in the attitudes and behaviours of young people and their parents during the teenage years play a key role in explaining the rich-poor gap in GCSE attainment: together, they explain a further quarter of the gap at age 16, and the majority of the small increase in this gap between ages 11 and 16. On this basis, our results suggest that while the most effective policies in terms of raising the attainment of young people from poor families are likely to be those enacted before children reach secondary school, policies that aim to reduce differences in attitudes and behaviours between the poorest children and those from better-off backgrounds during the teenage years may also make a significant contribution towards lowering the gap in achievement between young people from the richest and poorest families at age 16.&lt;/p&gt;&lt;/p&gt;<br>Handle: RePEc:ifs:fistud:v:2:y:2011:i:1:p:59-76<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name: Claire Crawford<br>Author-X-Name-First: Claire<br>Author-X-Name-Last: Crawford<br>Author-Email: c.crawford@ifs.org.uk<br>Author-Workplace-Name: Institute for Fiscal Studies<br>Author-Name: Alissa Goodman<br>Author-X-Name-First: Alissa<br>Author-X-Name-Last: Goodman<br>Author-Email: a.goodman@ifs.org.uk<br>Author-Workplace-Name: Institute for Fiscal Studies<br>Author-Name: Robert Joyce<br>Author-X-Name-First: Robert<br>Author-X-Name-Last: Joyce<br>Author-Email: robert_j@ifs.org.uk<br>Author-Workplace-Name: Institute for Fiscal Studies<br>Title: Explaining the socio-economic gradient in child outcomes: the inter-generational transmission of cognitive skills<br>Journal: Fiscal Studies<br>Pages: 77-93<br>Issue: 1<br>Volume: 2<br>Year: 2011<br>Month: February <br>Abstract: &lt;p&gt;Papers in this Special Issue and elsewhere consistently find a strong relationship between children's cognitive abilities and their parents' socio-economic position (SEP). Most studies seeking to explain the paths through which SEP affects cognitive skills suffer from a potentially serious omitted variables problem, as they are unable to account for an important determinant of children's cognitive abilities, namely parental cognitive ability. A range of econometric strategies have been employed to overcome this issue, but in this paper, we adopt the very simple (but rarely available) route of using data that includes a range of parental characteristics measured during the parents' childhood, such as parental cognitive ability and social skills. In line with previous work on the intergenerational transmission of cognitive skills, we find that parental cognitive ability is a significant predictor of children's cognitive ability; moreover, it explains one sixth of the socio-economic gap in those skills, even after controlling for a rich set of demographic, attitudinal and behavioural factors. Despite the importance of parental cognitive ability in explaining children's cognitive ability, however, the additional parental characteristics we examine here do not alter our impression of the relative importance of other factors in explaining the socio-economic gap in cognitive skills. This is reassuring for studies that are unable to control for such characteristics.&lt;/p&gt;<br>Handle: RePEc:ifs:fistud:v:2:y:2011:i:1:p:77-93<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Paul Gregg<br>Author-X-Name-First: Paul<br>Author-X-Name-Last:  Gregg<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Elizabeth Washbrook<br>Author-X-Name-First: Elizabeth<br>Author-X-Name-Last:  Washbrook<br>Author-Email: <br>Author-Workplace-Name:<br>Title: The socio-economic gradient in child outcomes: the role of attitudes, behaviours and beliefs<br>Journal: Fiscal Studies<br>Pages: 41-58<br>Issue: 1<br>Volume: 2.<br>Year: 2011<br>Month: February <br>Abstract: &lt;p&gt;&lt;p&gt;It is well known that children growing up in poor families leave school with considerably lower qualifications than children from better off backgrounds. Using a simple decomposition analysis, we show that around two thirds of the socio-economic gap in attainment at age 11 can be accounted for by long-run family background characteristics and prior ability, suggesting that circumstances and investments made considerably earlier in the child's life explain the majority of the gap in test scores between young people from rich and poor families. However, we also find that differences in the attitudes and behaviours of young people and their parents during the teenage years play a key role in explaining the rich-poor gap in KS2 attainment: together, they explain a further fifth of the gap at age 11, and the a third of the increase in this gap between ages  7 and 11. On this basis, our results suggest that while the most effective policies in terms of raising the attainment of young people from poor families are likely to be those enacted by the end of primary school, policies that aim to reduce differences in attitudes and behaviours between the poorest children and those from better-off backgrounds during the teenage years may also make a significant contribution towards lowering the gap in achievement between young people from the richest and poorest families at age 16.&lt;/p&gt;&lt;/p&gt;<br>Handle: RePEc:ifs:fistud:v:2.:y:2011:i:1:p:41-58<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name: Lorraine Dearden<br>Author-X-Name-First: Lorraine<br>Author-X-Name-Last: Dearden<br>Author-Email: l.dearden@ifs.org.uk<br>Author-Workplace-Name: Institute for Fiscal Studies and Bedford Group, Institute of Education, University of London<br>Author-Name: Luke Sibieta<br>Author-X-Name-First: Luke<br>Author-X-Name-Last: Sibieta<br>Author-Email: luke_s@ifs.org.uk<br>Author-Workplace-Name: Institute for Fiscal Studies<br>Author-Name: Kathy Sylva<br>Author-X-Name-First: Kathy<br>Author-X-Name-Last: Sylva<br>Author-Email: kathy.sylva@edstud.ox.ac.uk<br>Author-Workplace-Name: Institute for Fiscal Studies and University of Oxford<br>Title: The socio-economic gradient in early child outcomes: evidence from the Millennium Cohort Study<br>Journal: Fiscal Studies<br>Pages: 19-40<br>Issue: 1<br>Volume: 2<br>Year: 2011<br>Month: February <br>Abstract: &lt;p&gt;&lt;p&gt;This paper shows that there are large differences in cognitive development between children from rich and poor backgrounds at the age of 3, and that this gap widens by the age of 5. Children from poor backgrounds also face much less advantageous &quot;early childhood caring environments&quot; than children from better off families. For example we identify differences in poor children's and their mothers' health and well-being (e.g. birth-weight, breast-feeding, and maternal depression); family interactions (e.g. mother child closeness); the home learning environment (e.g. reading regularly to the child); parenting styles and rules (e.g. regular bed-times and meal-times), and experiences of childcare by ages 3 and 5. Differences in the home learning environment, particularly at the age of 3 have an important role to play in explaining why children from poorer backgrounds have lower test scores than children from better off families.  However, a much larger proportion of the gap remains unexplained, or appears directly related to other aspects of family background (such as mothers' age, and family size) that are not mediated through the early childhood caring environment.&lt;/p&gt;&lt;/p&gt;<br>Handle: RePEc:ifs:fistud:v:2:y:2011:i:1:p:19-40<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Leon Bettendorf<br>Author-X-Name-First: Leon<br>Author-X-Name-Last:  Bettendorf<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Albert Van Der Horst<br>Author-X-Name-First: Albert<br>Author-X-Name-Last:  Horst<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Ruud A. De Mooij<br>Author-X-Name-First: Ruud<br>Author-X-Name-Last:  Mooij<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Hendrik Vrijburg<br>Author-X-Name-First: Hendrik<br>Author-X-Name-Last:  Vrijburg<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Corporate Tax Consolidation and Enhanced Cooperation in the European Union<br>Journal: Fiscal Studies<br>Pages: 453-479<br>Issue: 4<br>Volume: 31<br>Year: 2010<br>Month: December <br>Abstract: &lt;p&gt;We assess the economic impact of introducing consolidation with formula apportionment in the European Union and consider alternative enhanced cooperation agreements. We find that the consolidation is likely to yield a small aggregate welfare gain in Europe. However, not all countries benefit. A coalition of winning countries reduces the welfare gain and may induce a process of adverse selection which destroys the possibility of cooperation. We find that a coalition of similar countries (in terms of the size of their multinational sector) is more feasible in achieving agreement and is actually preferred by those countries over a Europe-wide reform.&lt;/p&gt;<br>Classification-JEL: C68, F23, H25<br>Keywords: corporate tax harmonisation, common consolidated corporate tax base, enhanced cooperation agreements, applied general equilibrium, European Union<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.2010.00121.x/abstract<br>File-Format: application/pdf<br>File-Size: 378<br>Handle: RePEc:ifs:fistud:v:31:y:2010:i:4:p:453-479<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name: Rachel Griffith<br>Author-X-Name-First: Rachel<br>Author-X-Name-Last: Griffith<br>Author-Email: r.griffith@ifs.org.uk<br>Author-Workplace-Name: Institute for Fiscal Studies and University of Manchester<br>Author-Name: Martin O'Connell<br>Author-X-Name-First: Martin<br>Author-X-Name-Last: O'Connell<br>Author-Email: martin_o@ifs.org.uk<br>Author-Workplace-Name: Institute for Fiscal Studies<br>Title: Public Policy towards Food Consumption<br>Journal: Fiscal Studies<br>Pages: 481-507<br>Issue: 4<br>Volume: 31<br>Year: 2010<br>Month: December <br>Abstract: &lt;p&gt;&lt;p&gt;Governments around the world are increasingly concerned about the rise in diet-related chronic disease and there has been increased interest in policy interventions targeted at changing eating habits. In this paper, we discuss the ways in which food markets might fail to deliver the optimal outcome and how this may justify government intervention. We consider how well different types of policies - information campaigns, taxes and regulations - are able to counteract these market failures and we consider some of the implementation issues associated with targeting different consumers and anticipating firms' strategic responses.&lt;/p&gt;&lt;/p&gt;<br>Classification-JEL: H23, H31,  I18, L13<br>Keywords: obesity, diet-related disease, public policy, taxes<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.2010.00122.x/abstract<br>File-Format: application/pdf<br>File-Size: 239<br>Handle: RePEc:ifs:fistud:v:31:y:2010:i:4:p:481-507<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Peter Dolton<br>Author-X-Name-First: Peter<br>Author-X-Name-Last:  Dolton<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Chiara Rosazza Bondibene<br>Author-X-Name-First: Chiara<br>Author-X-Name-Last:  Bondibene<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Jonathan Wadsworth<br>Author-X-Name-First: Jonathan<br>Author-X-Name-Last:  Wadsworth<br>Author-Email: <br>Author-Workplace-Name:<br>Title: The UK National Minimum Wage in Retrospect<br>Journal: Fiscal Studies<br>Pages: 509-534<br>Issue: 4<br>Volume: 31<br>Year: 2010<br>Month: December <br>Abstract: &lt;p&gt;&lt;p&gt;&lt;p&gt;&lt;p&gt;This paper provides a retrospective summary of the effects of the UK national minimum wage (NMW) on labour market performance since its introduction in 1999. We use an 'incremental differences-in-differences' (IDiD) estimator to look at the effects of the NMW in each year through its differential impact across local labour markets. We find that the NMW is associated with a significant fall in wage inequality in the bottom half of the distribution. This suggests that geographical areas where the NMW 'bites' more have experienced larger declines in wage inequality than elsewhere. While the overall effect of the NMW on employment rates averaged over its existence is neutral, we do find small positive employment effects from 2003 onwards. Likewise, the association of the NMW with unemployment has been negative in recent years. NMW effects on hours have been mixed, but overall there is no compelling evidence to indicate that the NMW upratings have had an adverse effect on full-time total hours of work. Notwithstanding the clarity of these results, any causal interpretation of them might be compromised by the presence of concomitant policies that might have been correlated with the 'bite' of the NMW.&lt;/p&gt;&lt;/p&gt;&lt;/p&gt;&lt;/p&gt;<br>Classification-JEL: E24, J31, J42, R12<br>Keywords: minimum wage, employment, unemployment, wage inequality,hours of work<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.2010.00123.x/abstract<br>File-Format: application/pdf<br>File-Size: 1286<br>Handle: RePEc:ifs:fistud:v:31:y:2010:i:4:p:509-534<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Giovanni Millo<br>Author-X-Name-First: Giovanni<br>Author-X-Name-Last:  Millo<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Giacomo Pasini<br>Author-X-Name-First: Giacomo<br>Author-X-Name-Last:  Pasini<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Does Social Capital Reduce Moral Hazard? A Network Model for Non-Life Insurance Demand<br>Journal: Fiscal Studies<br>Pages: 341-372<br>Issue: 3<br>Volume: 31<br>Year: 2010<br>Month: September<br>Abstract: &lt;p&gt;We study the effect of social capital in an environment in which formal, marketed insurance contracts coexist with informal agreements. We show that in the absence of peer monitoring and social pressure, non-marketed contracts crowd out formal ones due to moral hazard. We prove, by means of an equilibrium concept typical of the network literature, that social capital can reduce moral hazard in informal agreements. We then show that under certain conditions, social capital increases the demand for marketed insurance contracts. The theoretical model we outline provides us clear guidance to measure social capital in a provincial-level data set. The empirical model, which is estimated controlling for panel and spatial structure, supports our claim that social capital increases the demand for non-life insurance.&lt;/p&gt;<br>Classification-JEL: C21, D85, G22, Z13<br>Keywords: insurance, social capital, network stability, spatial panel data model<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.2010.00118.x/abstract<br>File-Format: application/pdf<br>File-Size: 924<br>Handle: RePEc:ifs:fistud:v:31:y:2010:i:3:p:341-372<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Philip Bodman<br>Author-X-Name-First: Philip<br>Author-X-Name-Last:  Bodman<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Andrew Hodge<br>Author-X-Name-First: Andrew<br>Author-X-Name-Last:  Hodge<br>Author-Email: <br>Author-Workplace-Name:<br>Title: What Drives Fiscal Decentralisation? Further Assessing the Role of Income<br>Journal: Fiscal Studies<br>Pages: 373-404<br>Issue: 3<br>Volume: 31<br>Year: 2010<br>Month: September<br>Abstract: &lt;p&gt;This paper investigates the determinants of fiscal decentralisation, focusing in particular on the impact of the level of income on the level of fiscal decentralisation. Various measures of fiscal decentralisation, several of them novel in this context, are employed in a cross-country econometric model to test established and more recent hypotheses. Paying careful attention to variable measurement, model specification and sample coverage, the results suggest that there are significant relationships between fiscal decentralisation and income, as well as a range of other factors. However, these relationships may be more complicated than previously reported. For the entire large sample of countries, and for the OECD subsample, a positive relationship between income and decentralisation is found. This corroborates the results found in earlier studies. However, for the middle- and lower-income nations, higher income is found to be associated with less decentralisation.&lt;/p&gt;<br>Classification-JEL: E62, H1, H7, R5<br>Keywords: fiscal decentralisation, economic development<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.2010.00119.x/abstract<br>File-Format: application/pdf<br>File-Size: 302<br>Handle: RePEc:ifs:fistud:v:31:y:2010:i:3:p:373-404<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Alfonso R. Sanchez Martin<br>Author-X-Name-First: Alfonso<br>Author-X-Name-Last:  Martin<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Virginia Sanchez-Marcos<br>Author-X-Name-First: Virginia<br>Author-X-Name-Last:  Sanchez-Marcos<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Demographic Change and Pension Reform in Spain: An Assessment in a Two-Earner, OLG Model<br>Journal: Fiscal Studies<br>Pages: 405-452<br>Issue: 3<br>Volume: 31<br>Year: 2010<br>Month: September<br>Abstract: &lt;p&gt;Recent pension reforms in Spain have been guided by two opposite goals: achieving financial stability and improving redistributive aspirations. In particular, reforms implemented in 1997/2001 entailed a mixture of both through: (i) changes in the pension formula; (ii) the extension of entitlement to early retirement to all cohorts; and (iii) increases in survival pensions. This paper builds an applied general equilibrium OLG model that captures the fundamental non-stationarity of the Spanish reality (ageing population, education transition and increasing female attachment to the labour market) to assess the impact of those reforms. As a novel feature with respect to the literature, households in our model economy are made up of two potential earners who make saving and labour supply decisions. Our main conclusions from the analysis are at three different levels. First, the Spanish pension system is clearly unsustainable, with pension expenditure reaching a figure of about 18 per cent of GDP in 2050, and the reforms have clearly been ineffective in improving the pension system's financial prospects. Second, the reforms have had substantial redistribution effects, benefiting low-educated groups compared with high-educated groups and future cohorts compared with current chorts. Finally, we show that exploring the financial prospects with traditional single-earner household models may result in underestimates of the future financial burden of the pension system.&lt;/p&gt;<br>Classification-JEL: D58, H55, J11<br>Keywords: pension system reform, demographics, two-earner household<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.2010.00120.x/abstract<br>File-Format: application/pdf<br>File-Size: 1095<br>Handle: RePEc:ifs:fistud:v:31:y:2010:i:3:p:405-452<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Thiess Buettner<br>Author-X-Name-First: Thiess<br>Author-X-Name-Last:  Buettner<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Bjoern Kauder<br>Author-X-Name-First: Bjoern<br>Author-X-Name-Last:  Kauder<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Revenue Forecasting Practices: Differences across Countries and Consequences for Forecasting Performance<br>Journal: Fiscal Studies<br>Pages: 313-340<br>Issue: 3<br>Volume: 31<br>Year: 2010<br>Month: September<br>Abstract: &lt;p&gt;&lt;p&gt;This paper reviews the practice and performance of revenue forecasting in selected OECD countries. It turns out that the cross-country differences in the performance of revenue forecasting are first of all associated with uncertainty about the macroeconomic fundamentals. To some extent, they are also driven by country characteristics such as the importance of corporate and (personal) income taxes. Also, differences in the timing of the forecasts prove important. However, controlling for these differences, we find that the independence of revenue forecasting from possible government manipulation exerts a robust, significantly positive effect on the accuracy of revenue forecasts.&lt;/p&gt;&lt;/p&gt;<br>Classification-JEL: H68, H11<br>Keywords: revenue forecasting, international comparison, OECD countries, forecast error<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.2010.00117.x/abstract<br>File-Format: application/pdf<br>File-Size: 334<br>Handle: RePEc:ifs:fistud:v:31:y:2010:i:3:p:313-340<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Jo Blanden<br>Author-X-Name-First: Jo<br>Author-X-Name-Last:  Blanden<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Kirstine Hansen<br>Author-X-Name-First: Kirstine<br>Author-X-Name-Last:  Hansen<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Stephen Machin<br>Author-X-Name-First: Stephen<br>Author-X-Name-Last:  Machin<br>Author-Email: <br>Author-Workplace-Name:<br>Title: The Economic Cost of Growing Up Poor: Estimating the GDP Loss Associated with Child Poverty<br>Journal: Fiscal Studies<br>Pages: 289-311<br>Issue: 3<br>Volume: 31<br>Year: 2010<br>Month: September<br>Abstract: &lt;p&gt;&lt;p&gt;One of the motivations for the UK government's target to reduce (and eventually eliminate) child poverty is the perception of a significant long-term economic cost of growing up in poverty. This perception arises from the observation that individuals who experience poverty in their childhood earn less as adults, are less likely to be in employment, are more likely to engage in criminal or anti-social activities and are more likely to experience poor health and lower life satisfaction. This paper quantifies these effects, and expresses them in terms of GDP losses to the nation. We begin by focusing on lost earnings that arise from poorer skills and reduced employment opportunities, and then move on to the wider costs associated with the higher crime rates, poorer health and reduced well-being that are linked with growing up poor. We find a sizeable economic cost, with the cost of growing up in poverty amounting to at least 1 per cent of GDP.&lt;/p&gt;&lt;/p&gt;<br>Classification-JEL: I32, J13<br>Keywords: child poverty, earnings, employment, education, crime, health, GDP<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.2010.00116.x/abstract<br>File-Format: application/pdf<br>File-Size: 272<br>Handle: RePEc:ifs:fistud:v:31:y:2010:i:3:p:289-311<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Demakakos, P.<br>Author-X-Name-First: Demakakos,<br>Author-X-Name-Last:  P.<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Hamer, M.<br>Author-X-Name-First: Hamer,<br>Author-X-Name-Last:  M.<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Stamatakis, E.<br>Author-X-Name-First: Stamatakis,<br>Author-X-Name-Last:  E.<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Steptoe, A.<br>Author-X-Name-First: Steptoe,<br>Author-X-Name-Last:  A.<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Low-intensity physical activity is associated with reduced risk of incident type 2 diabetes in older adults: evidence from the English Longitudinal Study of Ageing<br>Journal: Fiscal Studies<br>Pages: 1877-85<br>Issue: 9<br>Volume: 53<br>Year: 2010<br>Month: September<br>Abstract: &lt;p&gt;&lt;p&gt;&lt;p&gt;AIMS/HYPOTHESIS: We examined whether small amounts of low-intensity physical activity were associated with reduced risk of developing type 2 diabetes in a national sample of people aged 50 years and over. &lt;/p&gt;&lt;/p&gt;&lt;p&gt;&lt;/p&gt;&lt;p&gt;&lt;p&gt;METHODS: The sample comprised 7,466 individuals (55.9% women) free from self-reported doctor-diagnosed diabetes and was prospectively followed for a mean of 45.3 months. Baseline self-reported physical activity was categorised as physical inactivity, low- and vigorous/moderate-intensity physical activity at least once a week. Cox proportional hazard regression was used to model the association between baseline physical activity and incident type 2 diabetes. &lt;/p&gt;&lt;/p&gt;&lt;p&gt;&lt;/p&gt;&lt;p&gt;&lt;p&gt;RESULTS: Vigorous/moderate-intensity physical activity at least once a week was associated with reduced risk of type 2 diabetes (HR 0.64, 95% CI 0.43-0.95, p = 0.026) but low-intensity physical activity at least once a week was not (HR 0.87, 95% CI 0.58-1.30, p = 0.497) after adjustment for all covariates. However, age-stratified analysis showed that low-intensity physical activity at least once a week was associated with reduced risk of type 2 diabetes for those aged 70 years and over (HR 0.53, 95% CI 0.28-1.02, p = 0.059), but not for those aged 50 to 59 years (HR 1.09, 95% CI 0.52-2.29, p = 0.828) or those aged 60 to 69 years (HR 1.15, 95% CI 0.55-2.41, p = 0.715) after adjustment for all covariates. &lt;/p&gt;&lt;p&gt;CONCLUSIONS/INTERPRETATION: Compared with physical inactivity, any type of physical activity was associated with reduced risk of type 2 diabetes in adults aged 70 years and over, while in adults aged 50 to 69 years, physical activity needed to be vigorous/moderate in intensity to be associated with reduced risk of type 2 diabetes. &lt;/p&gt;&lt;/p&gt;&lt;p&gt;&lt;/p&gt;&lt;p&gt;&lt;/p&gt;&lt;/p&gt;<br>Keywords: health, ageing<br>Handle: RePEc:ifs:fistud:v:53:y:2010:i:9:p:1877-85<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Pablo Burriel<br>Author-X-Name-First: Pablo<br>Author-X-Name-Last:  Burriel<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Francisco de Castro<br>Author-X-Name-First: Francisco<br>Author-X-Name-Last:  Castro<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Daniel Garrote<br>Author-X-Name-First: Daniel<br>Author-X-Name-Last:  Garrote<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Esther Gordo<br>Author-X-Name-First: Esther<br>Author-X-Name-Last:  Gordo<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Joan Paredes<br>Author-X-Name-First: Joan<br>Author-X-Name-Last:  Paredes<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Javier J. P&eacute;rez<br>Author-X-Name-First: Javier<br>Author-X-Name-Last:  P&eacute;rez<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Fiscal Policy Shocks in the Euro Area and the US: An Empirical Assessment<br>Journal: Fiscal Studies<br>Pages: 251 - 285<br>Issue: 2<br>Volume: 31<br>Year: 2010<br>Month: June     <br>Abstract: &lt;p&gt;We analyse the impact of fiscal policy shocks in the euro area as a whole, using a newly-available quarterly data set of fiscal variables for the period 1981-2007. To allow for comparability with previous results on euro-area countries and the US, we use a standard structural vector autoregressive (VAR) framework, and study the impact of aggregated and disaggregated government spending and net-tax shocks. In addition, to frame euro-area results, we apply the same methodology for the same sample period to US data. We also explore the sensitivity of the results to the inclusion of variables aiming to control for underlying financial and fiscal conditions. The main new findings are that: expansionary fiscal shocks have a short-term positive impact on GDP and private consumption, with government spending shocks entailing, in general, higher effects on economic activity than (net) tax reductions; output multipliers to government expenditure shocks are of similar size in the euro area and in the US; the persistence of a fiscal spending shock is higher in the US than in the euro area, which appears to be related to military spending in the US; and fiscal multipliers have increased over the recent past in both geographical areas.&lt;/p&gt;<br>Classification-JEL: E62, H30<br>Keywords: euro area, SVAR, fiscal shocks, fiscal multipliers<br>File-URL: http://www.ifs.org.ukhttp://www3.interscience.wiley.com/journal/123567526/abstract<br>File-Format: application/pdf<br>File-Size: 1154<br>Handle: RePEc:ifs:fistud:v:31:y:2010:i:2:p:251 - 285<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Ludger Linnemann<br>Author-X-Name-First: Ludger<br>Author-X-Name-Last:  Linnemann<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Unemployment, Government Spending and the Laffer Effect<br>Journal: Fiscal Studies<br>Pages: 227 - 250<br>Issue: 2<br>Volume: 31<br>Year: 2010<br>Month: June     <br>Abstract: &lt;p&gt;&lt;p&gt;The paper studies the effects of income tax rate changes in a general equilibrium model with frictional unemployment. Laffer curve effects, by which a tax rate reduction may increase the level of government spending or its share in output, are shown to be possible under certain conditions. These are the presence of unemployment benefit payments, government budget balance through fiscal spending adjustment and limited quantitative importance of labour reallocation costs. Endogenous government spending acts as a fiscal accelerator if the fiscal burden of unemployment benefit payments is large, but reduces the employment effects of tax rate cuts if it is low.&lt;/p&gt;&lt;/p&gt;<br>Classification-JEL: E62<br>Keywords: tax policy, unemployment, labour market frictions, Laffer curve, government spending, growth<br>File-URL: http://www.ifs.org.ukhttp://www3.interscience.wiley.com/journal/123567527/abstract<br>File-Format: application/pdf<br>File-Size: 318<br>Handle: RePEc:ifs:fistud:v:31:y:2010:i:2:p:227 - 250<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Matthew D. Rablen<br>Author-X-Name-First: Matthew<br>Author-X-Name-Last:  Rablen<br>Author-Email: <br>Author-Workplace-Name:<br>Title: The Saving Gateway: Implications for Optimal Saving<br>Journal: Fiscal Studies<br>Pages: 203 - 225<br>Issue: 2<br>Volume: 31<br>Year: 2010<br>Month: June     <br>Abstract: &lt;p&gt;&lt;p&gt;The Saving Gateway is a government saving initiative aiming to 'kick-start a saving habit among people on lower incomes'. Funds saved in a Saving Gateway account up to a monthly limit are matched by the government after two years at a rate of &pound;0.50 per &pound;1 saved. In this paper, a Saving Gateway account is embedded alongside an ordinary interest-bearing account in a simple life-cycle model of saving to assess the implications of the scheme for optimal saving. Among the findings are that, for agents with access to credit, the Saving Gateway is associated with a fall in saving during the life of the account and a rise in consumption. However, the scheme increases saving by the credit-constrained. On their own, empirically plausible levels of habit formation in consumption preferences have too small an effect on saving to justify the scheme.&lt;/p&gt;&lt;/p&gt;<br>Classification-JEL: D91, H30<br>Keywords: Saving Gateway, saving incentives, matching payments, habit formation<br>File-URL: http://www.ifs.org.ukhttp://www3.interscience.wiley.com/journal/123567528/abstract<br>File-Format: application/pdf<br>File-Size: 438<br>Handle: RePEc:ifs:fistud:v:31:y:2010:i:2:p:203 - 225<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Rita de la Feira<br>Author-X-Name-First: Rita<br>Author-X-Name-Last:  Feira<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Ben Lockwood<br>Author-X-Name-First: Ben<br>Author-X-Name-Last:  Lockwood<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Opting for Opting-In? An Evaluation of the European Commission's Proposals for Reforming VAT on Financial Services<br>Journal: Fiscal Studies<br>Pages: 171 - 202<br>Issue: 2<br>Volume: 31<br>Year: 2010<br>Month: June     <br>Abstract: &lt;p&gt;&lt;p&gt;This paper provides a legal and economic analysis of the European Commission's recent proposals for reforming the application of VAT to financial services, with particular focus on their 'third pillar', under which firms would be allowed to opt in to taxation on exempt insurance and financial services. From a legal perspective, we show that the proposals''first and second pillars' would give rise to considerable interpretative and qualification problems, resulting in as much complexity and legal uncertainty as the current regime. Equally, an option to tax could potentially follow significantly different legal designs, which would give rise to discrepancies in the application of the option amongst Member States of the European Union (EU). On the economic side, we show that quite generally, when firms cannot coordinate their behaviour, they have an individual incentive to opt in on business-to-business (B2B) transactions, but not on business-to-consumer (B2C) transactions. We also show that opting-in eliminates the cost disadvantage that EU financial services firms face in competing with foreign firms for B2B sales. But these results do not hold if firms can coordinate their behaviour. An estimate of the upper bound on the amount of tax revenue that might be lost from allowing opting-in is provided for a number of EU countries.&lt;/p&gt;&lt;/p&gt;<br>Classification-JEL: H21, H25<br>Keywords: VAT, financial services, European Union<br>File-URL: http://www.ifs.org.ukhttp://www3.interscience.wiley.com/journal/123567525/abstract<br>File-Format: application/pdf<br>File-Size: 299<br>Handle: RePEc:ifs:fistud:v:31:y:2010:i:2:p:171 - 202<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Michael Keen<br>Author-X-Name-First: Michael<br>Author-X-Name-Last:  Keen<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Alexander Klemm<br>Author-X-Name-First: Alexander<br>Author-X-Name-Last:  Klemm<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Victoria Perry<br>Author-X-Name-First: Victoria<br>Author-X-Name-Last:  Perry<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Tax and the crisis<br>Journal: Fiscal Studies<br>Pages: 43 - 79<br>Issue: 1<br>Volume: 31<br>Year: 2010<br>Month: March    <br>Abstract: &lt;p&gt;&lt;p&gt;&lt;p&gt;Did taxation play any role in precipitating the financial crisis? Are there lessons to be drawn for future tax reform priorities? This paper reviews the main channels by which tax effects might have been felt and which may require forceful attention. These include in particular the large tax biases favouring debt finance and, in some countries, investment in housing. The complexities of national tax codes, and the international interaction between them, have, moreover, encouraged the use of complicated financial instruments and international tax planning, reducing transparency. Tax distortions did not cause the crisis - in the sense that there are no obvious tax changes likely to have triggered it - but they may well have contributed by leading to higher leverage and more complexity than would otherwise have been the case. Most of these distortions have long been a source of concern, but dealing with them may be more important than previously supposed.&lt;/p&gt;&lt;/p&gt;&lt;/p&gt;<br>Classification-JEL: H20, H21, H87, F55<br>File-URL: http://www.ifs.org.ukhttp://www3.interscience.wiley.com/journal/123315277/abstract<br>File-Format: application/pdf<br>File-Size: 405<br>Handle: RePEc:ifs:fistud:v:31:y:2010:i:1:p:43 - 79<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Jonathan Wadsworth<br>Author-X-Name-First: Jonathan<br>Author-X-Name-Last:  Wadsworth<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Did the National Minimum Wage affect UK prices?<br>Journal: Fiscal Studies<br>Pages: 81 - 120<br>Issue: 1<br>Volume: 31<br>Year: 2010<br>Month: March    <br>Abstract: &lt;p&gt;&lt;p&gt;&lt;p&gt;One potential channel through which the effects of the minimum wage could be directed is that firms that employ minimum-wage workers could have passed on any higher labour costs resulting from the minimum wage in the form of higher prices. This study looks at the effects of the minimum wage on the prices of UK goods and services by comparing prices of goods and services produced by industries in which UK minimum-wage workers make up a substantial share of total costs with prices of goods and services that make less use of minimum-wage labour. Using sectoral-level price data matched to Labour Force Survey data on the share of minimum-wage workers in each sector, it is hard to find much evidence of significant price changes in the months that correspond immediately to the uprating of the national minimum wage. However, over the longer term, prices in several minimum-wage sectors - notably, take-away food, canteen meals, hotel services and domestic services - do appear to have risen significantly faster than prices in non-minimum-wage sectors. These effects were particularly significant in the four years immediately after the introduction of the minimum wage.&lt;/p&gt;&lt;/p&gt;&lt;/p&gt;<br>Classification-JEL: J0, J3, D4<br>File-URL: http://www.ifs.org.ukhttp://www3.interscience.wiley.com/journal/123315275/abstract<br>File-Format: application/pdf<br>File-Size: 576<br>Handle: RePEc:ifs:fistud:v:31:y:2010:i:1:p:81 - 120<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Tina Klautke<br>Author-X-Name-First: Tina<br>Author-X-Name-Last:  Klautke<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Alfons J. Weichenrieder<br>Author-X-Name-First: Alfons<br>Author-X-Name-Last:  Weichenrieder<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Interest income tax evasion, the EU Savings Directive and capital market effects<br>Journal: Fiscal Studies<br>Pages: 151 - 170<br>Issue: 1<br>Volume: 31<br>Year: 2010<br>Month: March    <br>Abstract: &lt;p&gt;&lt;p&gt;&lt;p&gt;The EU Savings Directive has been celebrated as a major political breakthrough in coordinating taxation in Europe. Against this background, the present paper evaluates the real-world effects of this directive. The directive has left a loophole by providing grandfathering (exemption from withholding tax) for some securities. In this paper, we compare the pre-tax returns of exempt bonds and comparable taxable bonds. If working around the Savings Directive is difficult for income tax evaders in Europe, then investors should be willing to pay a premium for bonds that are exempt from the withholding rate. Conversely, if such a premium is absent, then this suggests that the supply of existing loopholes (exempt bonds included) is large enough to allow tax evaders to continue evasion at no additional cost. The findings of our study are in line with this latter interpretation.&lt;/p&gt;&lt;/p&gt;&lt;/p&gt;<br>Classification-JEL: H24<br>File-URL: http://www.ifs.org.ukhttp://www3.interscience.wiley.com/journal/123315276/abstract<br>File-Format: application/pdf<br>File-Size: 362<br>Handle: RePEc:ifs:fistud:v:31:y:2010:i:1:p:151 - 170<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Christian Dustmann<br>Author-X-Name-First: Christian<br>Author-X-Name-Last:  Dustmann<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Tommaso Frattini<br>Author-X-Name-First: Tommaso<br>Author-X-Name-Last:  Frattini<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Caroline Halls<br>Author-X-Name-First: Caroline<br>Author-X-Name-Last:  Halls<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Assessing the fiscal costs and benefits of A8 migration to the UK<br>Journal: Fiscal Studies<br>Pages: 1 - 41<br>Issue: 1<br>Volume: 31<br>Year: 2010<br>Month: March    <br>Abstract: &lt;p&gt;&lt;p&gt;This paper assesses the fiscal consequences of migration to the UK from the Central and Eastern European countries that joined the European Union in May 2004 (A8 countries). We show that A8 immigrants who arrived after EU enlargement in 2004 and who have at least one year of residence, and are therefore legally eligible to claim benefits, are 59 per cent less likely than natives to receive state benefits or tax credits and 57 per cent less likely to live in social housing. Furthermore, even if A8 immigrants had the same demographic characteristics as natives, they would still be 13 per cent less likely to receive benefits and 29 per cent less likely to live in social housing. We go on to compare the net fiscal contribution of A8 immigrants with that of individuals born in the UK, and find that in each fiscal year since enlargement in 2004, irrespective of the way that the net fiscal contribution is defined, A8 immigrants made a positive contribution to the public finances despite the fact that the UK has been running a budget deficit over the last few years. This is because they have a higher labour force participation rate, pay proportionately more in indirect taxes and make much less use of benefits and public services.&lt;/p&gt;&lt;/p&gt;<br>Classification-JEL: J61, H20<br>File-URL: http://www.ifs.org.ukhttp://www3.interscience.wiley.com/journal/123315273/abstract<br>File-Format: application/pdf<br>File-Size: 353<br>Handle: RePEc:ifs:fistud:v:31:y:2010:i:1:p:1 - 41<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name: Richard Disney<br>Author-X-Name-First: Richard<br>Author-X-Name-Last: Disney<br>Author-Email: richard.disney@nottingham.ac.uk<br>Author-Workplace-Name: Institute for Fiscal Studies and University of Nottingham<br>Author-Name: Carl Emmerson<br>Author-X-Name-First: Carl<br>Author-X-Name-Last: Emmerson<br>Author-Email: c.emmerson@ifs.org.uk<br>Author-Workplace-Name: Institute for Fiscal Studies<br>Author-Name: Gemma Tetlow<br>Author-X-Name-First: Gemma<br>Author-X-Name-Last: Tetlow<br>Author-Email: g.tetlow@ifs.org.uk<br>Author-Workplace-Name: Institute for Fiscal Studies<br>Title: The value of teachers' pensions in England and Wales<br>Journal: Fiscal Studies<br>Pages: 121 - 150<br>Issue: 1<br>Volume: 31<br>Year: 2010<br>Month: March    <br>Abstract: &lt;p&gt;&lt;p&gt;&lt;p&gt;&lt;p&gt;The paper examines in detail the value of pension provision to teachers in the public sector in England and Wales, comparing pension accrual under both the pre- and the post-2007 schemes. We find that, at the median, pension accruals under the old scheme rules were worth 14.7 per cent of current salary to members, while if the new scheme rules were applied to all current members this would fall to 11.2 per cent. We find that this reduction in generosity is more than sufficient to offset the increase in generosity implied by rising life expectancies over the last quarter of a century. In addition, we show how the estimates depend on both the shape of the underlying age-earnings profile and the headline pay award. We find that the value of the new scheme rules to Teachers' Pension Scheme (TPS) members is similar to the value of the defined contribution pension offered to civil servants, but worth more than a simple, example, private sector defined contribution scheme.&lt;/p&gt;&lt;/p&gt;&lt;/p&gt;&lt;/p&gt;<br>Classification-JEL: H75, J32, J38<br>File-URL: http://www.ifs.org.ukhttp://www3.interscience.wiley.com/journal/123315274/abstract<br>File-Format: application/pdf<br>File-Size: 596<br>Handle: RePEc:ifs:fistud:v:31:y:2010:i:1:p:121 - 150<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name: Thomas Crossley<br>Author-X-Name-First: Thomas<br>Author-X-Name-Last: Crossley<br>Author-Email:  tfc22@cam.ac.uk <br>Author-Workplace-Name: Institute for Fiscal Studies and University of Cambridge<br>Title: Measuring Consumption and Saving: Introduction<br>Journal: Fiscal Studies<br>Pages: 303-307<br>Issue: 3-4<br>Volume: 30<br>Year: 2009<br>Month: December <br>Abstract: &lt;p&gt;&lt;p&gt;&lt;p&gt;&lt;/p&gt;&lt;/p&gt;&lt;/p&gt;<br>Classification-JEL: D12, C81, C83<br>Keywords: consumption, saving, measurement, data, survey methods<br>File-URL: http://www.ifs.org.ukhttp://www3.interscience.wiley.com/journal/123210108/abstract<br>File-Format: application/pdf<br>File-Size: 143<br>Handle: RePEc:ifs:fistud:v:30:y:2009:i:3-4:p:303-307<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Lothar Essig<br>Author-X-Name-First: Lothar<br>Author-X-Name-Last:  Essig<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Joachim K. Winter<br>Author-X-Name-First: Joachim<br>Author-X-Name-Last:  Winter<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Item Non-Response to Financial Questions in Household Surveys: An Experimental Study of Interviewer and Mode Effects<br>Journal: Fiscal Studies<br>Pages: 367-390<br>Issue: 3-4<br>Volume: 30<br>Year: 2009<br>Month: December <br>Abstract: &lt;p&gt;&lt;p&gt;We analyse the determinants of non-response to questions on financial items such as income and asset holdings in household surveys. Our data come from a controlled field experiment. As part of the SAVE study - a representative survey conducted in Germany in 2001 - questions on household income and financial assets were administered using different modes (personal interview versus drop-off questionnaire). The data also allow us to investigate the influence of interviewer characteristics on non-response. Our results are in line with predictions derived from models of survey response behaviour that have been developed in survey research and social psychology.&lt;/p&gt;&lt;/p&gt;<br>Classification-JEL: C81<br>Keywords: household surveys, item non-response, panel attrition, interview mode<br>File-URL: http://www.ifs.org.ukhttp://www3.interscience.wiley.com/journal/123210110/abstract<br>File-Format: application/pdf<br>File-Size: 216<br>Handle: RePEc:ifs:fistud:v:30:y:2009:i:3-4:p:367-390<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name: Andrew Leicester<br>Author-X-Name-First: Andrew<br>Author-X-Name-Last: Leicester<br>Author-Email: a.leicester@ifs.org.uk<br>Author-Workplace-Name: Institute for Fiscal Studies and University College London<br>Author-Name: Zo&euml; Oldfield<br>Author-X-Name-First: Zo&euml;<br>Author-X-Name-Last: Oldfield<br>Author-Email: z.oldfield@ifs.org.uk<br>Author-Workplace-Name: Institute for Fiscal Studies<br>Title: Using Scanner Technology to Collect Expenditure Data<br>Journal: Fiscal Studies<br>Pages: 309-337<br>Issue: 3-4<br>Volume: 30<br>Year: 2009<br>Month: December <br>Abstract: &lt;p&gt;&lt;p&gt;&lt;p&gt;In terms of collecting panel expenditure data, there are trade-offs between the demands imposed on respondents and the detail and coverage of data collected. Comprehensive spending data tend to be cross-sectional whilst panel studies include only limited, aggregated expenditure questions. Recently, economists have begun to use detailed, bar-code-level spending data from household panels collected by market research companies. However, there has not been a detailed assessment of the strengths and weaknesses of this collection method or its implications for the recorded data. This paper seeks to fill this gap by providing an in-depth examination of data from one company, Taylor Nelson Sofres (TNS), recording grocery purchases over five years. We assess how far the ongoing demands of participation lead to 'fatigue' in respondents' recording of their spending and the implications for household attrition, and we provide a detailed comparison of the expenditure data collected by TNS and the well-established Expenditure and Food Survey (EFS). Broadly, we suggest that problems of fatigue and attrition may not be particularly severe, though there are differences in expenditures that cannot be attributed to demographic or time effects and may be suggestive of survey mode effects.&lt;/p&gt;&lt;/p&gt;&lt;/p&gt;<br>Classification-JEL: C81, C83, C33, C41<br>Keywords: household panel data, scanner data, expenditure, food, duration models, attrition<br>File-URL: http://www.ifs.org.ukhttp://www3.interscience.wiley.com/journal/123210106/abstract<br>File-Format: application/pdf<br>File-Size: 507<br>Handle: RePEc:ifs:fistud:v:30:y:2009:i:3-4:p:309-337<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name: Rachel Griffith<br>Author-X-Name-First: Rachel<br>Author-X-Name-Last: Griffith<br>Author-Email: r.griffith@ifs.org.uk<br>Author-Workplace-Name: Institute for Fiscal Studies and University of Manchester<br>Author-Name: Martin O'Connell<br>Author-X-Name-First: Martin<br>Author-X-Name-Last: O'Connell<br>Author-Email: martin_o@ifs.org.uk<br>Author-Workplace-Name: Institute for Fiscal Studies<br>Title: The Use of Scanner Data for Research into Nutrition<br>Journal: Fiscal Studies<br>Pages: 339-365<br>Issue: 3-4<br>Volume: 30<br>Year: 2009<br>Month: December <br>Abstract: &lt;p&gt;&lt;p&gt;Data from market research firms are increasingly being used by social science researchers. These data provide potentially useful information, including detailed nutritional information and well-measured prices, and their panel structure is appealing as it permits researchers to control for unobservable time-invariant household characteristics and to model dynamic aspects of household behaviour. We summarise the information on the nutrients in foods that is contained in one source of market research data. We show that there is a lot of variation in nutrients at the individual product level, even within narrowly defined food categories such as butter. We also show that the duration of time over which data are collected can have important implications for analysis of household-level nutrient purchases.&lt;/p&gt;&lt;/p&gt;<br>Classification-JEL: D12, I1<br>Keywords: nutrition, sample duration, household panel data, market research data<br>File-URL: http://www.ifs.org.ukhttp://www3.interscience.wiley.com/journal/123210113/abstract<br>File-Format: application/pdf<br>File-Size: 762<br>Handle: RePEc:ifs:fistud:v:30:y:2009:i:3-4:p:339-365<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Menno Pradhan<br>Author-X-Name-First: Menno<br>Author-X-Name-Last:  Pradhan<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Welfare Analysis with a Proxy Consumption Measure: Evidence from a Repeated Experiment in Indonesia<br>Journal: Fiscal Studies<br>Pages: 391-417<br>Issue: 3-4<br>Volume: 30<br>Year: 2009<br>Month: December <br>Abstract: &lt;p&gt;&lt;p&gt;Every three years, Indonesia fields simultaneously two nationwide surveys which collect consumption data. One collects consumption using 23 questions, the other using 320 questions. Based on a repeated experiment in which the two questionnaires were randomly assigned across households, this paper examines the consequences of using a higher level of aggregation in questioning. A mapping of distribution functions reveals the combined effect of systematic differences in measurement and measurement error. Comparing means by subgroups, the effect of additive measurement error is eliminated, and it is found that using a higher level of aggregation yields a lower consumption measure and that the fraction of underestimation increases as consumption rises. A 1 per cent increase in average consumption increases the fraction by which consumption is underestimated by about 0.4 percentage points. Next, the paper examines the consequences of using the short consumption questionnaire in welfare analysis. Higher relative measurement error in the consumption measure derived from the short questionnaire results in higher poverty estimates even if the poverty line is adjusted to take account of the systematic underestimation. Small differences are found for analysis that is based on the rank the individual holds in the consumption distribution. In gradient analysis, it seems impossible to devise a simple correction factor for the higher consumption elasticities that follow when the short questionnaire is used.&lt;/p&gt;&lt;/p&gt;<br>Classification-JEL: I31, I32<br>Keywords: measurement error, welfare analysis, consumption<br>File-URL: http://www.ifs.org.ukhttp://www3.interscience.wiley.com/journal/123210107/abstract<br>File-Format: application/pdf<br>File-Size: 490<br>Handle: RePEc:ifs:fistud:v:30:y:2009:i:3-4:p:391-417<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  David Comerford<br>Author-X-Name-First: David<br>Author-X-Name-Last:  Comerford<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Liam Delaney<br>Author-X-Name-First: Liam<br>Author-X-Name-Last:  Delaney<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Colm Harmon<br>Author-X-Name-First: Colm<br>Author-X-Name-Last:  Harmon<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Experimental Tests of Survey Responses to Expenditure Questions<br>Journal: Fiscal Studies<br>Pages: 419-433<br>Issue: 3-4<br>Volume: 30<br>Year: 2009<br>Month: December <br>Abstract: &lt;p&gt;&lt;p&gt;This paper tests for a number of survey effects in the elicitation of expenditure items. In particular, we examine the extent to which individuals use features of the expenditure question to construct their answers. We test whether respondents interpret question wording as researchers intend and examine the extent to which prompts, clarifications and seemingly arbitrary features of survey design influence expenditure reports. We find that over one-quarter of respondents have difficulty distinguishing between 'you' and 'your household' when making expenditure reports; that respondents report higher pro-rata expenditure when asked to give responses on a weekly as opposed to annual timescale; that respondents give higher estimates when using a scale with a higher midpoint; and that respondents report higher aggregated expenditure when categories are presented in a disaggregated form. In summary, expenditure reports are constructed using convenient rules of thumb and available information, which will depend on the characteristics of the respondent, the expenditure domain and features of the survey question. It is crucial to further account for these features in ongoing surveys.&lt;/p&gt;&lt;/p&gt;<br>Classification-JEL: D03, D12, C81, C93<br>Keywords: expenditure surveys, survey design, data experiments<br>File-URL: http://www.ifs.org.ukhttp://www3.interscience.wiley.com/journal/123210105/abstract<br>File-Format: application/pdf<br>File-Size: 169<br>Handle: RePEc:ifs:fistud:v:30:y:2009:i:3-4:p:419-433<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Michael Hurd<br>Author-X-Name-First: Michael<br>Author-X-Name-Last:  Hurd<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Susann Rohwedder<br>Author-X-Name-First: Susann<br>Author-X-Name-Last:  Rohwedder<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Methodological Innovations in Collecting Spending Data: The HRS Consumption and Activities Mail Survey<br>Journal: Fiscal Studies<br>Pages: 435-459<br>Issue: 3-4<br>Volume: 30<br>Year: 2009<br>Month: December <br>Abstract: &lt;p&gt;&lt;p&gt;It has traditionally been believed that collecting survey measures of total spending necessarily involved asking a large number of questions, too many for inclusion of a comprehensive spending measure in a general-purpose survey. In this paper, we report on a supplemental survey to the Health and Retirement Study that took up this challenge. We discuss issues that arise when designing a survey module to collect spending data with strict time constraints, describe how the implementation in the Consumption and Activities Mail Survey (CAMS) played out, and elicit anomalies that more detailed analysis of data quality revealed. We report how we addressed some of these anomalies in subsequent waves of CAMS. Other anomalies required conducting some randomised experiments to find what explains the observed patterns. The results highlight the tension between asking about spending using a long time frame, which exacerbates recall bias, versus using a short time frame, which risks relying on an unrepresentative snapshot of a household's spending to proxy the total for the last 12 months. An important complicating factor in deciding which goods should be put into which time frames is that there is substantial heterogeneity in the frequency of spending across households even for the same category of spending.&lt;/p&gt;&lt;/p&gt;<br>Classification-JEL: C81, C83, D91<br>Keywords: survey methods, spending data, consumption, recall bias<br>File-URL: http://www.ifs.org.ukhttp://www3.interscience.wiley.com/journal/123210112/abstract<br>File-Format: application/pdf<br>File-Size: 229<br>Handle: RePEc:ifs:fistud:v:30:y:2009:i:3-4:p:435-459<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Jens Bonke<br>Author-X-Name-First: Jens<br>Author-X-Name-Last:  Bonke<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name: Martin Browning<br>Author-X-Name-First: Martin<br>Author-X-Name-Last: Browning<br>Author-Email: martin.browning@economics.ox.ac.uk<br>Author-Workplace-Name: Institute for Fiscal Studies and Nuffield College, Oxford<br>Title: The allocation of expenditures within the household: a new survey<br>Journal: Fiscal Studies<br>Pages: 461-481<br>Issue: 3-4<br>Volume: 30<br>Year: 2009<br>Month: December <br>Abstract: &lt;p&gt;&lt;p&gt;&lt;p&gt;We report on a data initiative that is designed to address the question of 'who gets what' within the household. The data consist of supplements to the Danish Household Expenditure Survey (DHES), which is a traditional nationally representative diary-based survey of expenditures. We collect supplementary data of two kinds for all couples (with or without children) in the survey. The first set of additional information is that respondents report on the intra-household allocation of each item of expenditure recorded in the diary. The allowed assignments are 'the whole family', 'the wife', 'the husband', 'the children', 'others' and 'not assignable'. The second addition is an extra set of 'sociological' questions concerning household financial management, autonomy and family background.&lt;/p&gt;&lt;p&gt;&lt;/p&gt;&lt;p&gt;&lt;/p&gt;&lt;p&gt;&lt;/p&gt;&lt;p&gt;&lt;/p&gt;&lt;p&gt;&lt;/p&gt;&lt;p&gt;We focus on the survey design and give some descriptive statistics from the survey. We also show how the distribution of expenditure on clothing, which is often used to look at intra-household allocation, is related to the distribution of expenditure on other goods.&lt;/p&gt;&lt;p&gt;&lt;/p&gt;&lt;p&gt;&lt;/p&gt;&lt;p&gt;&lt;/p&gt;&lt;p&gt;&lt;/p&gt;&lt;p&gt;&lt;/p&gt;&lt;p&gt;The paper concludes that it is feasible to collect information on 'who gets what' within the household and that some sociological questions provide valuable supplementary information for some issues of interest.&lt;/p&gt;&lt;/p&gt;&lt;/p&gt;<br>Classification-JEL: D13, C81, C42<br>Keywords: intra-household allocation, household survey methodology<br>File-URL: http://www.ifs.org.ukhttp://www3.interscience.wiley.com/journal/123210111/abstract<br>File-Format: application/pdf<br>File-Size: 202<br>Handle: RePEc:ifs:fistud:v:30:y:2009:i:3-4:p:461-481<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name: Orazio Attanasio<br>Author-X-Name-First: Orazio<br>Author-X-Name-Last: Attanasio<br>Author-Email: o.attanasio@ucl.ac.uk<br>Author-Workplace-Name: Institute for Fiscal Studies and University College London<br>Author-Name: Luca  Pellerano<br>Author-X-Name-First: Luca <br>Author-X-Name-Last: Pellerano<br>Author-Email: luca_p@ifs.org.uk<br>Author-Workplace-Name: Institute for Fiscal Studies<br>Author-Name:  Sandra Polan&iacute;a  Reyes<br>Author-X-Name-First: Sandra<br>Author-X-Name-Last:  Reyes<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Building trust? Conditional cash transfer programmes and social capital<br>Journal: Fiscal Studies<br>Pages: 139 - 177<br>Issue: 2<br>Volume: 30<br>Year: 2009<br>Month: October  <br>Abstract: &lt;p&gt;&lt;p&gt;&lt;p&gt;&lt;p&gt;&lt;p&gt;In this paper, we propose a measure of social capital based on behaviour in a public goods game. We conducted a public goods game within 28 groups in two similar neighbourhoods in Cartagena, Colombia, one of which had been targeted for over two years by a conditional cash transfer programme that has an important social component. The level of cooperation we observe in the 'treatment' community is considerably higher than that in the 'control' community. The two neighbourhoods, however, although similar in many dimensions, turn out to be significantly different in other observable variables. The result we obtain in terms of cooperation, however, is robust to controls for these observable differences. We also compare our measure of social capital with other more traditional measures that have been used in the literature.&lt;/p&gt;&lt;/p&gt;&lt;/p&gt;&lt;/p&gt;&lt;/p&gt;<br>Classification-JEL: C92,  D7, D85, H41<br>Keywords: cash transfer programmes, social capital, social networks, collective action, cooperation, VCM, economic experiments, public goods provision<br>File-URL: http://www.ifs.org.ukhttp://www3.interscience.wiley.com/journal/122652897/abstract<br>File-Format: application/pdf<br>File-Size: 637<br>Handle: RePEc:ifs:fistud:v:30:y:2009:i:2:p:139 - 177<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Frank M. Fossen<br>Author-X-Name-First: Frank<br>Author-X-Name-Last:  Fossen<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Would a flat-rate tax stimulate entrepreneurship in Germany? A behavioural microsimulation analysis allowing for risk<br>Journal: Fiscal Studies<br>Pages: 179 - 218<br>Issue: 2<br>Volume: 30<br>Year: 2009<br>Month: October  <br>Abstract: &lt;p&gt;&lt;p&gt;When potential income tax reforms are debated, the suspected impact on entrepreneurship is often used as an argument in favour of or against a certain policy. Quantitative ex-ante evaluations of the effect of certain tax reform options on entrepreneurship are very rare, however. This paper estimates the ex-ante effects of the German tax reform 2000 and of two hypothetical flat-rate tax scenarios on entries into and exits out of self-employment based on a structural microsimulation model with econometrically estimated transition rates under risk. The simulation results indicate that flatter tax systems do not encourage people to choose self-employment, but rather discourage them from doing so. This is explained by the reduction of entrepreneurs' income risk through progressive taxation.&lt;/p&gt;&lt;/p&gt;<br>Classification-JEL: H24, J23, L26, D81<br>Keywords: entrepreneurship, income taxation, risk, German tax reform 2000, flat tax<br>File-URL: http://www.ifs.org.ukhttp://www3.interscience.wiley.com/journal/122652901/abstract<br>File-Format: application/pdf<br>File-Size: 372<br>Handle: RePEc:ifs:fistud:v:30:y:2009:i:2:p:179 - 218<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  John Creedy<br>Author-X-Name-First: John<br>Author-X-Name-Last:  Creedy<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Nicolas H&eacute;rault<br>Author-X-Name-First: Nicolas<br>Author-X-Name-Last:  H&eacute;rault<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Guyonne Kalb<br>Author-X-Name-First: Guyonne<br>Author-X-Name-Last:  Kalb<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Abolishing the tax-free threshold in Australia: simulating alternative reforms<br>Journal: Fiscal Studies<br>Pages: 219 - 246<br>Issue: 2<br>Volume: 30<br>Year: 2009<br>Month: October  <br>Abstract: &lt;p&gt;&lt;p&gt;&lt;p&gt;This paper examines the role of the tax-free income tax threshold in a complex tax and transfer system consisting of a range of taxes and benefits, each with its own taper rates and thresholds. Considering a tax and benefit system with benefit taper rates whereby some benefits are received by income groups other than those at the bottom of the distribution, it is suggested that a tax-free threshold is not a necessary requirement to achieve redistribution. Four alternative policy changes, each involving the elimination of the tax-free threshold in Australia and designed to achieve approximate revenue neutrality, were examined using the Melbourne Institute Tax and Transfer Simulator. A range of implications were examined, including labour supply responses to tax changes and the effects of policy changes on inequality and social welfare. The results demonstrate that it is possible to eliminate the tax-free threshold under approximate overall revenue and distribution neutrality, but that it is impossible to improve labour supply incentives at the same time. In order to achieve improved incentives, either revenue or distribution neutrality has to be sacrificed.&lt;/p&gt;&lt;/p&gt;&lt;/p&gt;<br>Classification-JEL: H24, H31<br>Keywords: income taxation, labour supply, welfare changes, inequality<br>File-URL: http://www.ifs.org.ukhttp://www3.interscience.wiley.com/journal/122652900/abstract<br>File-Format: application/pdf<br>File-Size: 360<br>Handle: RePEc:ifs:fistud:v:30:y:2009:i:2:p:219 - 246<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Vito Polito<br>Author-X-Name-First: Vito<br>Author-X-Name-Last:  Polito<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Measuring the effective tax burden in the real world<br>Journal: Fiscal Studies<br>Pages: 247 - 278<br>Issue: 2<br>Volume: 30<br>Year: 2009<br>Month: October  <br>Abstract: &lt;p&gt;&lt;p&gt;This paper argues that forward-looking indices of the effective tax burden on income from capital - namely, effective marginal and average tax rates - are negatively biased because traditional models overlook dividend constraints associated with financial tax incentives, such as accelerated depreciation. The paper presents measures of the two indices adjusted to remove the bias and compares the new indices with the traditional ones. Numerical simulations carried out to quantify the magnitude of the bias for France, Germany, Ireland, Italy and the UK give evidence of sizeable distortions in the unadjusted indices and, in turn, suggest significant mismeasurement in the current assessment of the effective tax burden.&lt;/p&gt;&lt;/p&gt;<br>Classification-JEL: H25, H32<br>Keywords: capital theory, corporate taxation, investment incentives, dividend policy constraints<br>File-URL: http://www.ifs.org.ukhttp://www3.interscience.wiley.com/journal/122652899/abstract<br>File-Format: application/pdf<br>File-Size: 470<br>Handle: RePEc:ifs:fistud:v:30:y:2009:i:2:p:247 - 278<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Paul H. Jensen<br>Author-X-Name-First: Paul<br>Author-X-Name-Last:  Jensen<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Robin E. Stonecash<br>Author-X-Name-First: Robin<br>Author-X-Name-Last:  Stonecash<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Contract type and the cost of provision: evidence from maintenance service contracts<br>Journal: Fiscal Studies<br>Pages: 279 - 296<br>Issue: 2<br>Volume: 30<br>Year: 2009<br>Month: October  <br>Abstract: &lt;p&gt;&lt;p&gt;&lt;p&gt;More than half a billion dollars are spent each year on the maintenance of Australia's urban water and sewerage networks. Expenditure is governed through a mix of in-house and outsourced maintenance service contracts. We re-examine issues relating to the relationship between the cost of maintenance service provision and the type of contract used. We take advantage of the fact that water retailers in Melbourne use a mix of contract types - including fixed-price (FP) and cost-plus (C+) contracts - for the provision of water and sewerage network maintenance services. Our results suggest that the C+ contract results in substantial savings.&lt;/p&gt;&lt;/p&gt;&lt;/p&gt;<br>Classification-JEL: D82, H11, L33<br>Keywords: contract efficiency, incentives, moral hazard, procurement, contracting out<br>File-URL: http://www.ifs.org.ukhttp://www3.interscience.wiley.com/journal/122652898/abstract<br>File-Format: application/pdf<br>File-Size: 212<br>Handle: RePEc:ifs:fistud:v:30:y:2009:i:2:p:279 - 296<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name: James Banks<br>Author-X-Name-First: James<br>Author-X-Name-Last: Banks<br>Author-Email: j.banks@ifs.org.uk<br>Author-Workplace-Name: Institute for Fiscal Studies and University of Manchester<br>Author-Name: Michael Marmot<br>Author-X-Name-First: Michael<br>Author-X-Name-Last: Marmot<br>Author-Email: <br>Author-Workplace-Name: Institute for Fiscal Studies and UCL Research Department of Epidemiology and Public Health<br>Author-Name: Zo&euml; Oldfield<br>Author-X-Name-First: Zo&euml;<br>Author-X-Name-Last: Oldfield<br>Author-Email: z.oldfield@ifs.org.uk<br>Author-Workplace-Name: Institute for Fiscal Studies<br>Author-Name: James Smith<br>Author-X-Name-First: James<br>Author-X-Name-Last: Smith<br>Author-Email: <br>Author-Workplace-Name: Institute for Fiscal Studies and RAND<br>Title: The SES health gradient on both sides of the Atlantic.<br>Journal: Fiscal Studies<br>Pages: <br>Issue: <br>Volume: <br>Year: 2009<br>Month: June     <br>Abstract: &lt;p&gt;In this paper we investigate the size of health differences that exist among men in England and the United States and how those differences vary by Socio-Economic Status (SES) in both countries. Three SES measures are emphasized - education, household income, and household wealth - and the health outcomes investigated span multiple dimensions as well. International comparisons have played a central part of the recent debate involving the 'SES health gradient' with some authors citing cross-country differences in levels of income equality and mortality as among the most compelling evidence that unequal societies have negative impacts on individual health outcomes. In spite of the analytical advantages of making such international comparisons, until recently good micro data measuring both SES and health in comparable ways have not been available for both countries. Fortunately, that problem has been remedied with the fielding of two surveys - the Health and Retirement Survey (HRS) and the English Longitudinal Survey of Aging (ELSA). In order to facilitate the type of research represented in this paper, both the health and SES measures in ELSA and HRS were purposely constructed to be as directly comparable as possible. Our analysis presents data on some of the most salient issues regarding the social health gradient in health and the manner in which this health gradient differs for men across the two countries in question. There are a several key findings. First, looking across a wide variety of diagnosed diseases, average health status among mature men is much worse in America compared to England, confirming non-gender specific findings we reported in earlier research. Second, there exists a steep negative health gradient for men in both countries where men at the bottom of the economic hierarchy are in much worse health than those at the top. This social health gradient exists whether education, income, or financial wealth is used as the marker of SES. While the negative social gradient in male health characterizes men in both countries, it appears to be steeper in the United States. These central conclusions are maintained even after controlling for a standard set of behavioral risk factors such as smoking, drinking, and obesity and are equally true using either biological measures of disease or individual self-reports. In contrast to these disease based measures of health, the health of American men appears to be superior to the health of English men when self-reported subjective general health status is used as the measure of health status. This apparent contradiction does not result from differences in co-morbidity, emotional health, or ability to function all of which still point to mature American men being less healthy than their English counterparts. The contradiction most likely stems instead from different thresholds used by Americans and English when evaluation their health status on subjective scales. For the same 'objective' health status, Americans are much more likely to say that their health is good than are the English. Finally, we present preliminary data that indicates that feedbacks from new health events to household income are also one of the reasons that underlie the strength of the income gradient with health in England. Previous research has demonstrated its importance as one of the underlying causes in the United States and these results suggest that that conclusion should most likely be extended to England as well although further research is required on this topic.&lt;/p&gt;<br>Handle: RePEc:ifs:fistud:v::y:2009:i::p:<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Lolita Paff<br>Author-X-Name-First: Lolita<br>Author-X-Name-Last:  Paff<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Todd A. Watkins<br>Author-X-Name-First: Todd<br>Author-X-Name-Last:  Watkins<br>Author-Email: <br>Author-Workplace-Name:<br>Title: What is the after-tax price of R&amp;D? An interstate comparison<br>Journal: Fiscal Studies<br>Pages: 73-101<br>Issue: 1<br>Volume: 30<br>Year: 2009<br>Month: April    <br>Abstract: &lt;p&gt;&lt;p&gt;As of 2005, 31 US states offered corporate income tax credits on research and development (R&amp;D) expenses in order to encourage more in-state innovation activities. Empirical questions about the efficacy of such tax breaks at the state level persist, in part because the complexity of the tax laws means that simple credit-rate comparisons across states do not fully capture the differential variation in effective after-tax price incentives firms face in choosing where to locate R&amp;D activities. We are unaware of any research analysing and comparing the effective prices of R&amp;D faced by firms, across all US states and utilising micro-level data. Using data extracted from detailed reading of individual firms' 10-K and S-1 filings and of state-level tax credit rules, we estimate the effective after-tax price of basic and qualified research expenditure each firm would have faced in each of the 50 states had they been located there. Our methodology simulates the effective tax price of each firm's marginal dollar of research expenditure, assuming the firm chose to move all of its R&amp;D operations to each of the 49 other states. Through Monte Carlo techniques, we consider the sensitivity of our interstate comparative results to several modelling assumptions. We find significant variation in after-tax R&amp;D prices across states with quite different R&amp;D tax laws. Prices range from $0.176 to $0.520 on a marginal dollar of R&amp;D in Virginia and Washington State, respectively. We also find that the interstate variability is generally more important - indeed, much wider than we had anticipated before investigating state-by-state regulations - than the inter-firm variability within states.&lt;/p&gt;&lt;/p&gt;<br>Classification-JEL: H25, H71, O38<br>Keywords: R and D, tax credit, income apportionment, tax policy<br>Handle: RePEc:ifs:fistud:v:30:y:2009:i:1:p:73-101<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Alexandru Minea<br>Author-X-Name-First: Alexandru<br>Author-X-Name-Last:  Minea<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Patrick Villieu<br>Author-X-Name-First: Patrick<br>Author-X-Name-Last:  Villieu<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Borrowing to finance public investment? The 'golden rule of public finance' reconsidered in an endogenous growth setting<br>Journal: Fiscal Studies<br>Pages: 103-133<br>Issue: 1<br>Volume: 30<br>Year: 2009<br>Month: April    <br>Abstract: &lt;p&gt;&lt;p&gt;&lt;p&gt;In this paper, we look for long-run and short-run effects of fiscal deficits on economic growth and welfare in a standard endogenous growth model. We show that, under very general hypotheses, the 'golden rule of public finance', which allows a government to run public-investment-oriented fiscal deficits, leads to a lower balanced-growth path in the long run, and eventually in the short run, compared with balanced-budget rules. Welfare effects are more difficult to assess, and depend on the form of the utility function. Our model shows that debt rules such as the golden rule may improve (if the consumption elasticity of substitution is 'low') or weaken (if the consumption elasticity of substitution is 'high') intertemporal welfare. Consequently, a balanced-budget rule does not necessarily dominate debt rules from the point of view of welfare, while it does from the point of view of long-run economic growth.&lt;/p&gt;&lt;/p&gt;&lt;/p&gt;<br>Classification-JEL: H62, H63, E62<br>Keywords: Fiscal deficit, public investment, government spending, endogenous growth, golden rule of public finance<br>Handle: RePEc:ifs:fistud:v:30:y:2009:i:1:p:103-133<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Ray Barrell<br>Author-X-Name-First: Ray<br>Author-X-Name-Last:  Barrell<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name: Martin Weale<br>Author-X-Name-First: Martin<br>Author-X-Name-Last: Weale<br>Author-Email: m.weale@niesr.ac.uk<br>Author-Workplace-Name: Institute for Fiscal Studies and National Institute of Economic and Social Research<br>Title: The economics of a reduction in VAT<br>Journal: Fiscal Studies<br>Pages: 17-30<br>Issue: 1<br>Volume: 30<br>Year: 2009<br>Month: April    <br>Abstract: &lt;p&gt;&lt;p&gt;We explore the effects of a temporary cut in VAT, identifying three possible effects: an income effect as people benefit from a lower cost of living during the period of the reduction, a substitution effect as people bring their consumption forward and an arbitrage effect as people buy non-perishable goods before the end of the period of low VAT for consumption after the VAT rate has been raised. International evidence suggests a clear overall impact on consumption, although the nature of the pattern depends on the way in which the data are analysed. However, the key policy issue is the impact of the VAT change on output and, to examine that, a simulation model of the whole economy is needed. Evidence from the National Institute's Global Economic Model suggests that the impact of the recent VAT reduction is likely to build up during the course of 2009. The reduction in VAT from 17&frac12; per cent to 15 per cent is likely to result in consumption being augmented by less than 1 per cent by the fourth quarter of 2009. However, GDP is likely to be raised by less than half a per cent relative to what would have happened without the VAT increase. After the temporary reduction is over, both consumption and GDP are depressed as a result of the policy.&lt;/p&gt;&lt;/p&gt;<br>Classification-JEL: H30, E62, E21, E37<br>Keywords: Temporary indirect tax change, fiscal stimulus<br>Handle: RePEc:ifs:fistud:v:30:y:2009:i:1:p:17-30<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name: Thomas Crossley<br>Author-X-Name-First: Thomas<br>Author-X-Name-Last: Crossley<br>Author-Email:  tfc22@cam.ac.uk <br>Author-Workplace-Name: Institute for Fiscal Studies and University of Cambridge<br>Author-Name: Hamish Low<br>Author-X-Name-First: Hamish<br>Author-X-Name-Last: Low<br>Author-Email: Hamish.Low@econ.cam.ac.uk<br>Author-Workplace-Name: Institute for Fiscal Studies and Trinity College, Cambridge<br>Author-Name: Matthew Wakefield<br>Author-X-Name-First: Matthew<br>Author-X-Name-Last: Wakefield<br>Author-Email: m.wakefield@ifs.org.uk<br>Author-Workplace-Name: Institute for Fiscal Studies and University of Bologna<br>Title: The economics of a temporary VAT cut<br>Journal: Fiscal Studies<br>Pages: 3-16<br>Issue: 1<br>Volume: 30<br>Year: 2009<br>Month: April    <br>Abstract: &lt;p&gt;&lt;p&gt;This paper analyses the likely implications of the temporary cut in VAT in the UK to 15 per cent, with a return to 17.5 per cent in place for the end of 2009. We distinguish between the income effect of the cut and the (intertemporal) substitution effect. The former is likely to be small because the change in lifetime income is minimal. The second effect is likely to be much more important because the reduction in the price of goods bought in 2009 compared with 2010 gives an incentive to increase consumer spending this year. With an elasticity of intertemporal substitution of about 1, we would expect the cut in VAT to boost consumer spending by about 1.2 per cent over what it would otherwise be. The distributional consequences of the VAT cut are regressive because goods subject to VAT tend to be luxuries. Unlike a cut in interest rates, there is no difference in the distributional consequences for borrowers compared with savers.&lt;/p&gt;&lt;/p&gt;<br>Classification-JEL: E62, H31, E21, D91<br>Keywords: VAT, consumption, fiscal stimulus, intertemporal substitution<br>Handle: RePEc:ifs:fistud:v:30:y:2009:i:1:p:3-16<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name: Richard Blundell<br>Author-X-Name-First: Richard<br>Author-X-Name-Last: Blundell<br>Author-Email: r.blundell@ucl.ac.uk<br>Author-Workplace-Name: Institute for Fiscal Studies and University College London<br>Title: Assessing the temporary VAT cut policy in the UK<br>Journal: Fiscal Studies<br>Pages: 31-38<br>Issue: 1<br>Volume: 30<br>Year: 2009<br>Month: April    <br>Abstract: &lt;p&gt;&lt;p&gt;&lt;p&gt;This paper concerns the likely impact of a temporary VAT cut stimulus policy on consumer demand in the UK. It suggests that around 75 per cent of the VAT reduction will be passed on to consumers and that consumers will react by maintaining their expenditure levels and therefore increasing their demand for consumption goods. The uncertainty caused by the downturn makes this a more muted impact than we might have hoped, especially on the demand for durable goods. Nevertheless, it is a substantive impact. In general, the uncertainty caused by the recession will tend to reduce the impact of any stimulus package. It is also argued that synchronising the subsequent rise with the economic upturn is critical.&lt;/p&gt;&lt;/p&gt;&lt;/p&gt;<br>Classification-JEL: H2, H3, E21<br>Keywords: Fiscal stimulus, fiscal policy, VAT, recession, consumer debt, consumer demand<br>Handle: RePEc:ifs:fistud:v:30:y:2009:i:1:p:31-38<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Roberto Golinelli<br>Author-X-Name-First: Roberto<br>Author-X-Name-Last:  Golinelli<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Sandro Momigliano<br>Author-X-Name-First: Sandro<br>Author-X-Name-Last:  Momigliano<br>Author-Email: <br>Author-Workplace-Name:<br>Title: The cyclical reaction of fiscal policies in the euro area: the role of modelling choices and data vintages<br>Journal: Fiscal Studies<br>Pages: 39-72<br>Issue: 1<br>Volume: 30<br>Year: 2009<br>Month: April    <br>Abstract: &lt;p&gt;&lt;p&gt;We survey the recent empirical literature concerning the cyclical response of fiscal policies in the euro area, finding large differences in results. We show that these differences are heavily influenced by the choices made in modelling fiscal behaviour. We make a case for the use, in assessing policies and in the EMU context, of the standard modelling choice where the discretionary reaction of fiscal policy is directly estimated. Models where the overall reaction to the cycle - which includes the effects of both discretionary actions and automatic stabilisers - is directly estimated tend to suggest either strong pro-cyclical or strong counter-cyclical discretionary reactions, depending on how this component is identified. Within the standard model and for the years 1994 to 2008, we show that results are significantly affected by the data vintage (ex post or real-time). With ex post data, we find an unambiguous indication of a-cyclicality. Using real-time data, we find that the output gap matters. However, depending on whether we assess policy intentions or actual policies, euro-area governments' behaviour radically changes. A plausible interpretation is that in the implementation phase, governments loosen their fiscal stance, giving in to political pressures that are proportional to the scale of the economic difficulties in bad times and the size of the 'growth dividend' in good times.&lt;/p&gt;&lt;/p&gt;<br>Classification-JEL: E61, D72, E62, H60<br>Keywords: Fiscal policy, euro-area countries, fiscal rules, pro- and counter-cyclical policies, policy symmetry over the cycle, ex post and real-time data, dynamic panel models<br>Handle: RePEc:ifs:fistud:v:30:y:2009:i:1:p:39-72<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Michael Anyadike-Danes<br>Author-X-Name-First: Michael<br>Author-X-Name-Last:  Anyadike-Danes<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Duncan McVicar<br>Author-X-Name-First: Duncan<br>Author-X-Name-Last:  McVicar<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Has the boom in incapacity benefit claimant numbers passed its peak?<br>Journal: Fiscal Studies<br>Pages: 415 - 434<br>Issue: 4<br>Volume: 29<br>Year: 2008<br>Month: December <br>Abstract: &lt;p&gt;Just over 2.5 million people of working age were on the incapacity benefit register in Great Britain in 2006, twice as many as 15 years earlier, and we explore the factors contributing to that huge growth. Using a simple model linking 'inflow' to the size of the register via a pair of persistence parameters ('short' and 'long' term), we show that the principal driver of numbers up to the mid-1990s was inflow, but since then it has been the steep rise in 'average duration' from below four to more than six years. For women the lengthening time on the register mainly reflects a rise in short-term persistence (survival on the register from one to two years), whilst for men the increase in long-term persistence (survival on the register after two years) was more important. We also use the model to discuss the likelihood that the British government will achieve its target of reducing incapacity benefit numbers by 1 million by 2016.&lt;/p&gt;<br>Classification-JEL: J65, J64, I18<br>File-URL: http://www.ifs.org.ukhttp://www3.interscience.wiley.com/journal/121673692/abstract<br>File-Format: application/pdf<br>File-Size: 394<br>Handle: RePEc:ifs:fistud:v:29:y:2008:i:4:p:415 - 434<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Carlo V. Fiorio<br>Author-X-Name-First: Carlo<br>Author-X-Name-Last:  Fiorio<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Analysing tax-benefit reforms using non-parametric methods<br>Journal: Fiscal Studies<br>Pages: 499 - 522<br>Issue: 4<br>Volume: 29<br>Year: 2008<br>Month: December <br>Abstract: &lt;p&gt;Static tax-benefit microsimulation models (MSMs) are widely used and well-regarded tools for public policy analysis, but it is essential to use them very carefully. This paper focuses on the analysis of MSM output, suggesting the use of non-parametric methods as a useful, informative and relatively straightforward complement to detect effects not always captured by measures often used to present MSM results.&lt;/p&gt;&lt;p&gt;&lt;/p&gt;&lt;p&gt;Non-parametric methods are used here to analyse the output of an MSM applied to the 1998 Italian personal income tax reform, the main change in which concerned the tax schedule: the first tax rate was increased from 10 per cent to 18.5 per cent and the top one was reduced by 4.5 percentage points. Non-parametric methods highlight that the effects of this reform were very different for different types of households, with low-income pensioner households among the main losers. Results are checked for robustness by standard statistical methods and compared with empirical results obtainable using quintile histograms.&lt;/p&gt;<br>Classification-JEL: H24, D31, C14<br>File-URL: http://www.ifs.org.ukhttp://www3.interscience.wiley.com/journal/121673694/abstract<br>File-Format: application/pdf<br>File-Size: 800<br>Handle: RePEc:ifs:fistud:v:29:y:2008:i:4:p:499 - 522<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Henrik Hammar<br>Author-X-Name-First: Henrik<br>Author-X-Name-Last:  Hammar<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Sverker C. Jagers<br>Author-X-Name-First: Sverker<br>Author-X-Name-Last:  Jagers<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Katarina Nordblom<br>Author-X-Name-First: Katarina<br>Author-X-Name-Last:  Nordblom<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Attitudes towards tax levels: a multi-tax comparison<br>Journal: Fiscal Studies<br>Pages: 523 - 543<br>Issue: 4<br>Volume: 29<br>Year: 2008<br>Month: December <br>Abstract: &lt;p&gt;We analyse Swedes' opinions about the levels of 11 different taxes to see which taxes people are most averse to and why. The most unpopular tax is the real estate tax, while the corporate tax is the least unpopular. We find a strong self-interest effect in tax attitudes and that knowledge and education increase support for corrective taxes.&lt;/p&gt;<br>Classification-JEL: H2, Q58, Z13<br>File-URL: http://www.ifs.org.ukhttp://www3.interscience.wiley.com/journal/121673693/abstract<br>File-Format: application/pdf<br>File-Size: 217<br>Handle: RePEc:ifs:fistud:v:29:y:2008:i:4:p:523 - 543<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Holly Sutherland<br>Author-X-Name-First: Holly<br>Author-X-Name-Last:  Sutherland<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Ruth Hancock<br>Author-X-Name-First: Ruth<br>Author-X-Name-Last:  Hancock<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  John Hills<br>Author-X-Name-First: John<br>Author-X-Name-Last:  Hills<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Francesca Zantomio<br>Author-X-Name-First: Francesca<br>Author-X-Name-Last:  Zantomio<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Keeping up or falling behind? The impact of benefit and tax uprating on incomes and poverty<br>Journal: Fiscal Studies<br>Pages: 467 - 498<br>Issue: 4<br>Volume: 29<br>Year: 2008<br>Month: December <br>Abstract: &lt;p&gt;&lt;p&gt;Each year, the government decides how much to raise benefits and tax allowances. In the UK, the basis for these upratings is rarely debated, yet has major long-term consequences for the relative living standards of different groups as well as for the public finances. This paper considers the medium-term implications of present uprating policies, which vary across parameters of the tax-benefit system. Continuing these policies for 20 years, other things staying the same, would result in a near doubling of the child poverty rate alongside a substantial gain to the public finances. At the same time, pensioners are largely protected by the earnings indexation of pensioner benefits including, in time, the basic state pension. We show how difficult it will be to meet the UK child poverty targets unless the greater inequality inherent in the current regime for uprating payments and allowances is redressed.&lt;/p&gt;&lt;/p&gt;<br>Classification-JEL: D31, I38<br>File-URL: http://www.ifs.org.ukhttp://www3.interscience.wiley.com/journal/121673689/abstract<br>File-Format: application/pdf<br>File-Size: 427<br>Handle: RePEc:ifs:fistud:v:29:y:2008:i:4:p:467 - 498<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Jameson Boex<br>Author-X-Name-First: Jameson<br>Author-X-Name-Last:  Boex<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Renata R. Simatupang<br>Author-X-Name-First: Renata<br>Author-X-Name-Last:  Simatupang<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Fiscal decentralisation and empowerment: evolving concepts and alternative measures<br>Journal: Fiscal Studies<br>Pages: 435 - 465<br>Issue: 4<br>Volume: 29<br>Year: 2008<br>Month: December <br>Abstract: &lt;p&gt;&lt;p&gt;Decentralisation reforms are among the most common and significant public sector reforms, particularly in developing and transitional countries around the world. Despite the importance of the topic to policy practitioners and academic researchers alike and the extensive empirical research on the topic, there is consensus in the literature that the measures of decentralisation that are currently used are unsatisfactory. In response, we propose an alternative measure of fiscal decentralisation based on the notion that decentralisation is more than simply the inverse of centralisation. Following Bahl (2005), we consider fiscal decentralisation as 'the empowerment of people by the [fiscal] empowerment of their local governments'. Accordingly, we develop a measure of fiscal empowerment that allows us to quantify fiscal decentralisation as the gain in empowerment due to devolution and we analyse the proposed measures of empowerment and decentralisation for a cross-section of developing, transitional and industrialised countries.&lt;/p&gt;&lt;/p&gt;<br>Classification-JEL: H11, H70, H72<br>File-URL: http://www.ifs.org.ukhttp://www3.interscience.wiley.com/journal/121673690/abstract<br>File-Format: application/pdf<br>File-Size: 244<br>Handle: RePEc:ifs:fistud:v:29:y:2008:i:4:p:435 - 465<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Xavier Ramos<br>Author-X-Name-First: Xavier<br>Author-X-Name-Last:  Ramos<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Oriol Roca-Sagales<br>Author-X-Name-First: Oriol<br>Author-X-Name-Last:  Roca-Sagales<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Long-term effects of fiscal policy on the size and distribution of the pie in the UK<br>Journal: Fiscal Studies<br>Pages: 387 - 411<br>Issue: 3<br>Volume: 29<br>Year: 2008<br>Month: November <br>Abstract: &lt;p&gt;This paper provides a joint analysis of the output and distributional long-term effects of various fiscal policies in the UK, using a vector autoregression (VAR) approach. Our findings suggest that the long-term impact on GDP of increasing public spending and taxes is negative, and especially strong in the case of current expenditure. We also find significant distributional effects associated with fiscal policies, indicating that an increase in public spending reduces inequality while a rise in indirect taxes increases income inequality.&lt;/p&gt;<br>Classification-JEL: C5, E6, H3<br>File-URL: http://www.ifs.org.ukhttp://www3.interscience.wiley.com/journal/121533224/abstract<br>File-Format: application/pdf<br>File-Size: 390<br>Handle: RePEc:ifs:fistud:v:29:y:2008:i:3:p:387 - 411<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Katrin Rehdanz<br>Author-X-Name-First: Katrin<br>Author-X-Name-Last:  Rehdanz<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Sven St&ouml;whase<br>Author-X-Name-First: Sven<br>Author-X-Name-Last:  St&ouml;whase<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Cost liability and residential space heating expenditures of welfare recipients in Germany<br>Journal: Fiscal Studies<br>Pages: 329 - 345<br>Issue: 3<br>Volume: 29<br>Year: 2008<br>Month: September<br>Abstract: &lt;p&gt;&lt;p&gt;Within the German welfare system, recipients' heating expenditures are generally fully covered by the government. This paper empirically tests the hypothesis that households receiving welfare payments turn to overconsumption of residential space heating. We use micro-data from two different data sources to explore whether the conditional heating expenditures of these households differ significantly from those of other households. Our empirical findings suggest that even when controlling for a range of other factors, this is indeed the case, as their heating expenditures lie about 7-8 per cent above those of other households. These results are fairly robust to sensitivity analyses. Comparing the results with those for a control group, expenditures for heating are still more than 5 per cent higher. Our results imply that there is potential scope for cost savings if this policy is changed.&lt;/p&gt;&lt;/p&gt;<br>Classification-JEL: H23, H43, Q41, Q48<br>File-URL: http://www.ifs.org.ukhttp://www3.interscience.wiley.com/journal/121533226/abstract<br>File-Format: application/pdf<br>File-Size: 208<br>Handle: RePEc:ifs:fistud:v:29:y:2008:i:3:p:329 - 345<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Teresa Leal<br>Author-X-Name-First: Teresa<br>Author-X-Name-Last:  Leal<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Javier J P&eacute;rez<br>Author-X-Name-First: Javier<br>Author-X-Name-Last:  P&eacute;rez<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Mika Tujula<br>Author-X-Name-First: Mika<br>Author-X-Name-Last:  Tujula<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Jean-Pierre Vidal<br>Author-X-Name-First: Jean-Pierre<br>Author-X-Name-Last:  Vidal<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Fiscal forecasting: lessons from the literature and challenges<br>Journal: Fiscal Studies<br>Pages: 347 - 386<br>Issue: 3<br>Volume: 29<br>Year: 2008<br>Month: September<br>Abstract: &lt;p&gt;While fiscal forecasting and monitoring has its roots in the accountability of governments for the use of public funds in democracies, the Stability and Growth Pact has significantly increased interest in budgetary forecasts in Europe, where they play a key role in EU multilateral budgetary surveillance. In view of the increased prominence and sensitivity of budgetary forecasts, which may lead to them being influenced by strategic and political factors, this paper discusses the main issues and challenges in the field of fiscal forecasting from a practitioner's perspective and places them in the context of the related literature.&lt;/p&gt;<br>Classification-JEL: H6, E62, C53<br>File-URL: http://www.ifs.org.ukhttp://www3.interscience.wiley.com/journal/121533225/abstract<br>File-Format: application/pdf<br>File-Size: 864<br>Handle: RePEc:ifs:fistud:v:29:y:2008:i:3:p:347 - 386<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name: Orazio Attanasio<br>Author-X-Name-First: Orazio<br>Author-X-Name-Last: Attanasio<br>Author-Email: o.attanasio@ucl.ac.uk<br>Author-Workplace-Name: Institute for Fiscal Studies and University College London<br>Author-Name: Hamish Low<br>Author-X-Name-First: Hamish<br>Author-X-Name-Last: Low<br>Author-Email: Hamish.Low@econ.cam.ac.uk<br>Author-Workplace-Name: Institute for Fiscal Studies and Trinity College, Cambridge<br>Author-Name:  Virginia Sanchez-Marcos<br>Author-X-Name-First: Virginia<br>Author-X-Name-Last:  Sanchez-Marcos<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Explaining changes in female labour supply in a life-cycle model<br>Journal: Fiscal Studies<br>Pages: <br>Issue: <br>Volume: forthcoming<br>Year: 2008<br>Month: July     <br>Abstract: &lt;p&gt;&lt;p&gt;&lt;/p&gt;&lt;/p&gt;<br>Handle: RePEc:ifs:fistud:v:forthcoming:y:2008:i::p:<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Seppo  Kari<br>Author-X-Name-First: Seppo<br>Author-X-Name-Last:  Kari<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Hanna  Karikallio<br>Author-X-Name-First: Hanna<br>Author-X-Name-Last:  Karikallio<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Jukka  Pirttil&auml;<br>Author-X-Name-First: Jukka<br>Author-X-Name-Last:  Pirttil&auml;<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Anticipating tax changes: evidence from the Finnish corporate income tax reform of 2005<br>Journal: Fiscal Studies<br>Pages: 167 - 196<br>Issue: 2<br>Volume: 29<br>Year: 2008<br>Month: June     <br>Abstract: &lt;p&gt;&lt;p&gt;&lt;p&gt;&lt;p&gt;Using register-based panel data covering all Finnish firms from 1999 to 2004, we examine how corporations anticipated the 2005 dividend tax increase via changes in their dividend and investment policies. The Finnish capital and corporate income tax reform of 2005 creates a useful opportunity to measure this behaviour, since it involves exogenous variation in the tax treatment of different types of firms. The estimation results reveal that those firms that anticipated a dividend tax hike increased their dividend payouts in a statistically significant way. This increase was not accompanied by a reduction in investment activities, but rather was associated with increased indebtedness in non-listed firms. The results also suggest that the timing of dividend distributions probably offsets much of the potential for increased dividend tax revenue following the reform.&lt;/p&gt;&lt;/p&gt;&lt;/p&gt;&lt;/p&gt;<br>Classification-JEL: H25, H32<br>File-URL: http://www.ifs.org.ukhttp://www3.interscience.wiley.com/journal/120695435/abstract<br>File-Format: application/pdf<br>File-Size: 315<br>Handle: RePEc:ifs:fistud:v:29:y:2008:i:2:p:167 - 196<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Pierre-Carl  Michaud<br>Author-X-Name-First: Pierre-Carl<br>Author-X-Name-Last:  Michaud<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Arthur van Soest<br>Author-X-Name-First: Arthur<br>Author-X-Name-Last:  Soest<br>Author-Email: <br>Author-Workplace-Name:<br>Title: How did the elimination of the US earnings test above the normal retirement age affect labour supply expectations?<br>Journal: Fiscal Studies<br>Pages: 197 - 231<br>Issue: 2<br>Volume: 29<br>Year: 2008<br>Month: June     <br>Abstract: &lt;p&gt;We look at the effect of the 2000 repeal of the earnings test above the normal retirement age (NRA) on the self-reported probabilities of working full-time after ages 65 and 62 of male workers in the US Health and Retirement Study (HRS). Using administrative records on social security benefit entitlements linked to the HRS survey data, we can distinguish groups of respondents according to the predicted effect of the earnings test before its repeal on their marginal wage rate after the NRA. We use panel data models with fixed and random effects to investigate the effect of the repeal. We find that male workers whose predicted marginal wage rate increased because the earnings test was repealed had the largest increase in the subjective probability of working full-time after age 65. We find no significant effects of the repeal on the subjective probability of working full-time past age 62.&lt;/p&gt;<br>Classification-JEL: H55, J22<br>File-URL: http://www.ifs.org.ukhttp://www3.interscience.wiley.com/journal/120695434/abstract<br>File-Format: application/pdf<br>File-Size: 336<br>Handle: RePEc:ifs:fistud:v:29:y:2008:i:2:p:197 - 231<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Claudio A.  Agostini<br>Author-X-Name-First: Claudio<br>Author-X-Name-Last:  Agostini<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Gast&oacute;n A.  Palmucci<br>Author-X-Name-First: Gast&oacute;n<br>Author-X-Name-Last:  Palmucci<br>Author-Email: <br>Author-Workplace-Name:<br>Title: The anticipated capitalisation effect of a new Metro line on housing prices<br>Journal: Fiscal Studies<br>Pages: 233 - 256<br>Issue: 2<br>Volume: 29<br>Year: 2008<br>Month: June     <br>Abstract: &lt;p&gt;Housing units with closer access to public transportation enjoy a higher market value than those with similar characteristics but poorer access. This difference can be explained by the lower cost of transport to the main workplaces and shopping areas in town. For this reason, investments in public transport infrastructure, such as building a new metro line, are capitalised totally or partially into land and housing prices.&lt;/p&gt;&lt;p&gt;&lt;/p&gt;&lt;p&gt;This work empirically analyses the degree of capitalisation into housing prices of the benefits of the new Line 4 of the Santiago metro system, which began operating in December 2005. We focus on anticipated capitalisation into housing prices at the moment construction of Line 4 was announced and at the moment information on the basic engineering project was unveiled, identifying the location of the future stations.&lt;/p&gt;&lt;p&gt;&lt;/p&gt;&lt;p&gt;We use a unique database containing all home buying and selling transactions in the Greater Santiago area between December 2000 and March 2004. The results show that the average apartment price rose by between 4.2 per cent and 7.9 per cent after construction was announced and by between 3.1 per cent and 5.5 per cent after the location of the stations was identified. These increases were not distributed evenly, but depended on the distance from the apartment to the nearest station.&lt;/p&gt;&lt;p&gt;&lt;/p&gt;&lt;p&gt;An indirect effect of this kind of capitalization is that property tax collections will increase if property is reappraised following the price rise. This effect is not negligible in magnitude and could represent 11 to 17 per cent of investment in the new metro line. This raises and interesting discussion on how the metro network extension is financed.&lt;/p&gt;<br>Classification-JEL: H54, R21, R53<br>File-URL: http://www.ifs.org.ukhttp://www3.interscience.wiley.com/journal/120695438/abstract<br>File-Format: application/pdf<br>File-Size: 271<br>Handle: RePEc:ifs:fistud:v:29:y:2008:i:2:p:233 - 256<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Georgia Kaplanoglou<br>Author-X-Name-First: Georgia<br>Author-X-Name-Last:  Kaplanoglou<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  David M. Newbery<br>Author-X-Name-First: David<br>Author-X-Name-Last:  Newbery<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Horizontal inequity and vertical redistribution with indirect taxes: the Greek case<br>Journal: Fiscal Studies<br>Pages: 257 - 284<br>Issue: 2<br>Volume: 29<br>Year: 2008<br>Month: June     <br>Abstract: &lt;p&gt;Non-uniform indirect taxes treat equals and those unequal differently (horizontal inequity and vertical redistribution). Horizontal inequity is caused by taste differences among similar households, but some excises are designed to reflect social, not revealed, preferences. We apply two methodologies for decomposing the overall redistributive effect of the present and three alternative indirect tax structures into vertical and horizontal effects for Greece, using the 1998-99 Household Expenditure Survey micro-database. In all cases, the taste component is considerable, even when we allow for social preferences, while improvements in vertical redistribution can be achieved, albeit at the cost of increased horizontal inequity.&lt;/p&gt;<br>Classification-JEL: D63, H23, D30<br>File-URL: http://www.ifs.org.ukhttp://www3.interscience.wiley.com/journal/120695437/abstract<br>File-Format: application/pdf<br>File-Size: 217<br>Handle: RePEc:ifs:fistud:v:29:y:2008:i:2:p:257 - 284<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Lixin Cai<br>Author-X-Name-First: Lixin<br>Author-X-Name-Last:  Cai<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Guyonne Kalb<br>Author-X-Name-First: Guyonne<br>Author-X-Name-Last:  Kalb<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Yi-Ping Tseng<br>Author-X-Name-First: Yi-Ping<br>Author-X-Name-Last:  Tseng<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Ha Vu<br>Author-X-Name-First: Ha<br>Author-X-Name-Last:  Vu<br>Author-Email: <br>Author-Workplace-Name:<br>Title: The effect of financial incentives on labour supply: evidence for lone parents from microsimulation and quasi-experimental evaluation<br>Journal: Fiscal Studies<br>Pages: 285 - 325<br>Issue: 2<br>Volume: 29<br>Year: 2008<br>Month: June     <br>Abstract: &lt;p&gt;The aim of this paper is to analyse the work incentive effects of a change in the Australian tax and transfer system on lone parents in July 2000. To evaluate the effect of the total change only, microsimulation can be used; but for a subgroup of lone parents, a few components of this policy change can be analysed through two alternative approaches - microsimulation and quasi-experimental evaluation. Both approaches examine the effects on the probability of employment and on average working hours. The results from microsimulation show that the combined changes introduced in July 2000 - involving reduced withdrawl rates, changed family payments and lower income tax rates - have increased labour supply for lone parents to a moderate extent. The estimated effect on average working hours when using microsimulation is very close to the effect estimated in a quasi-experimental approach using matching techniques to control for alternative influences.&lt;/p&gt;<br>Classification-JEL: H31, J22, C21<br>File-URL: http://www.ifs.org.ukhttp://www3.interscience.wiley.com/journal/120695436/abstract<br>File-Format: application/pdf<br>File-Size: 472<br>Handle: RePEc:ifs:fistud:v:29:y:2008:i:2:p:285 - 325<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Mar&iacute;a del Carmen Boado-Penas<br>Author-X-Name-First: Mar&iacute;a<br>Author-X-Name-Last:  Boado-Penas<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Salvador Vald&eacute;s-Prieto<br>Author-X-Name-First: Salvador<br>Author-X-Name-Last:  Vald&eacute;s-Prieto<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Carlos Vidal-Meli&aacute<br>Author-X-Name-First: Carlos<br>Author-X-Name-Last:  Vidal-Meli&aacute<br>Author-Email: <br>Author-Workplace-Name:<br>Title: The Actuarial Balance Sheet for Pay-As-You-Go Finance: Solvency Indicators for Spain and Sweden<br>Journal: Fiscal Studies<br>Pages: 89-134<br>Issue: 1<br>Volume: 29<br>Year: 2008<br>Month: March    <br>Abstract: &lt;p&gt;&lt;p&gt;&lt;p&gt;&lt;p&gt;&lt;p&gt;&lt;p&gt;This paper provides the first estimate of the actuarial balance of the Spanish contributory pension system for the old-age contingency, based on official data. The main accounting entries are developed from the principles of double-entry bookkeeping. The novel entry in the balance sheet, entitled the 'contribution asset' or 'hidden asset', is at the centre of the theoretical discussion. A comparison between the official balance sheet for the Swedish notional account system and our balance sheet for the Spanish contributory pension system is also provided. The main finding is that the Spanish pension system has an insolvency rate of 31.4 per cent. The policy implication is that unless current legislation is reformed, Spanish taxpayers (the plan sponsor) should count on making transfers to the pension system with a present discounted value of 31.4 per cent of current liabilities. Moreover, a comparison of the consecutive balance sheets for 2001-06 shows that the degree of insolvency is growing over time, even though the cash-flow outcome has improved over the same period. Taking steps to reverse this trend and restore solvency is in Spanish taxpayers' interest, and possibly also in the interest of those in the European Union who recognise that there is a chance that they may have to support the Spanish budget in the future.&lt;/p&gt;&lt;/p&gt;&lt;/p&gt;&lt;/p&gt;&lt;/p&gt;&lt;/p&gt;<br>Classification-JEL: H55, J26, M49<br>File-URL: http://www.ifs.org.ukhttp://www.blackwell-synergy.com/doi/abs/10.1111/j.1475-5890.2008.00070.x<br>File-Format: application/pdf<br>File-Size: 317<br>Handle: RePEc:ifs:fistud:v:29:y:2008:i:1:p:89-134<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name: Michael Devereux<br>Author-X-Name-First: Michael<br>Author-X-Name-Last: Devereux<br>Author-Email: michael.devereux@sbs.ox.ac.uk<br>Author-Workplace-Name: Institute for Fiscal Studies and University of Oxford<br>Author-Name:  Simon Loretz<br>Author-X-Name-First: Simon<br>Author-X-Name-Last:  Loretz<br>Author-Email: <br>Author-Workplace-Name:<br>Title: The effects of EU formula apportionment on corporate tax revenues<br>Journal: Fiscal Studies<br>Pages: 1-33<br>Issue: 1<br>Volume: 29<br>Year: 2008<br>Month: March    <br>Abstract: &lt;p&gt;&lt;p&gt;The European Commission proposes to replace the current system of taxing corporate income using separate accounting by a two-step 'consolidation and apportionment' procedure. This paper uses a large set of unconsolidated firm-level data to assess the likely impact on corporate tax revenues in each member state. Taking pre-tax profit as given, overall tax revenues would be likely to drop by 2.5 per cent if companies could choose whether to participate. By contrast, if they were forced to participate, total tax revenues would be likely to increase by more than 2 per cent, leaving some European countries - most notably, Spain, Sweden and the UK - better off. We investigate how sensitive these results are to the apportionment factors used.&lt;/p&gt;&lt;/p&gt;<br>Classification-JEL: H25, H87<br>File-URL: http://www.ifs.org.ukhttp://www.blackwell-synergy.com/doi/abs/10.1111/j.1475-5890.2008.00067.x<br>File-Format: application/pdf<br>File-Size: 892<br>Handle: RePEc:ifs:fistud:v:29:y:2008:i:1:p:1-33<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Carlo Mazzaferro<br>Author-X-Name-First: Carlo<br>Author-X-Name-Last:  Mazzaferro<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Alberto Zanardi<br>Author-X-Name-First: Alberto<br>Author-X-Name-Last:  Zanardi<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Centralisation versus decentralisation of public policies: does the heterogeneity of individual preferences matter?<br>Journal: Fiscal Studies<br>Pages: 35-73<br>Issue: 1<br>Volume: 29<br>Year: 2008<br>Month: March    <br>Abstract: &lt;p&gt;This paper explores the role of the heterogeneity of fiscal preferences in the assignment of policy tasks to different levels of government (decentralisation versus centralisation). With reference to a sample of European countries, a median-voter mechanism of collective decision is assumed to work at both a national and a supranational level. Using data from a large international survey (the International Social Survey Programme, ISSP), a series of econometric models are estimated in order to make individual attitudes representative of different categories of public expenditure and of different countries. The dominance of decentralisation over centralisation or vice versa is determined on the basis of the utility loss that each individual suffers in connection with the distance between his or her own most preferred level of public expenditure and that chosen by the national/supranational median voter. The main finding is that, differently from the predictions of Oates's decentralisation theorem, the assignment of responsibilities at the supranational level (centralisation) for a number of public expenditure programmes (healthcare, education, unemployment benefits) dominates (or is close to dominating) decentralisation, even in the absence of economies of scale and interregional spillovers. However, when the possibility of interjurisdictional mobility is explicitly considered, in line with the predictions of Tiebout's model, decentralisation dominance becomes more and more substantial and also prevails in the sectors where, under the nonmobility assumption, the assignment of responsibilities at the supranational level is efficient.&lt;/p&gt;<br>Classification-JEL: H50, H77, I00<br>File-URL: http://www.ifs.org.ukhttp://www.blackwell-synergy.com/doi/abs/10.1111/j.1475-5890.2008.00068.x<br>File-Format: application/pdf<br>File-Size: 287<br>Handle: RePEc:ifs:fistud:v:29:y:2008:i:1:p:35-73<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Daniel Chudnovsky<br>Author-X-Name-First: Daniel<br>Author-X-Name-Last:  Chudnovsky<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Andr&eacute;s L&oacute;pez<br>Author-X-Name-First: Andr&eacute;s<br>Author-X-Name-Last:  L&oacute;pez<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Mart&iacute;n A. Rossi<br>Author-X-Name-First: Mart&iacute;n<br>Author-X-Name-Last:  Rossi<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Diego Ubfal<br>Author-X-Name-First: Diego<br>Author-X-Name-Last:  Ubfal<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Money for science? The impact of research grants on academic output<br>Journal: Fiscal Studies<br>Pages: 75-87<br>Issue: 1<br>Volume: vo. 29<br>Year: 2008<br>Month: March    <br>Abstract: &lt;p&gt;&lt;p&gt;&lt;p&gt;&lt;p&gt;&lt;p&gt;&lt;p&gt;This paper evaluates the impact of subsidies on the academic performance of researchers in Argentina. Academic performance is measured in terms of number of publications and in terms of impact factors in peer-reviewed journals. The performance of researchers with financially supported projects is compared with that of a control group of researchers who submitted projects accepted in terms of quality but not supported because of shortage of funds. We use non-experimental data and a difference-in-differences approach along with propensity score matching techniques, where we control for pre-programme observable attributes as well as for researchers' time-invariant unobservable characteristics. Our findings suggest a positive and statistically significant effect of subsidy on academic performance, especially for young researchers.&lt;/p&gt;&lt;/p&gt;&lt;/p&gt;&lt;/p&gt;&lt;/p&gt;&lt;/p&gt;<br>Classification-JEL: H50<br>File-URL: http://www.ifs.org.ukhttp://www.blackwell-synergy.com/doi/abs/10.1111/j.1475-5890.2008.00069.x<br>File-Format: application/pdf<br>File-Size: 248<br>Handle: RePEc:ifs:fistud:v:vo. 29:y:2008:i:1:p:75-87<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Raffaele Miniaci<br>Author-X-Name-First: Raffaele<br>Author-X-Name-Last:  Miniaci<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Carlo Scarpa<br>Author-X-Name-First: Carlo<br>Author-X-Name-Last:  Scarpa<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Paola Valbonesi<br>Author-X-Name-First: Paola<br>Author-X-Name-Last:  Valbonesi<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Distributional effects of price reforms in the Italian utility markets<br>Journal: Fiscal Studies<br>Pages: 135-163<br>Issue: 1<br>Volume: 29<br>Year: 2008<br>Month: March    <br>Abstract: &lt;p&gt;&lt;p&gt;In this paper, we analyse some distributional effects of the reforms to water and energy services in Italy. We first document the new regulation setting in these services, illustrating the dynamics of utility prices and of household expenditure in the period 1998-2005. We then propose a way to measure the affordability of public utilities, in order to investigate how many households would incur a potentially excessive burden if they consumed a minimum quantity of utility services. Finally, we calculate this index on data from the Survey on Family Budgets (Indagine sui consumi delle famiglie). Our results show how the affordability of utility bills varies from region to region depending on climate, income, family endowment and family size. The analysis - also based on a counterfactual exercise - finds that so far, utility reforms do not seem to have produced any negative effects on weaker households.&lt;/p&gt;&lt;/p&gt;<br>Classification-JEL: D12, L51, L97<br>File-URL: http://www.ifs.org.ukhttp://www.blackwell-synergy.com/doi/abs/10.1111/j.1475-5890.2008.00071.x<br>File-Format: application/pdf<br>File-Size: 503<br>Handle: RePEc:ifs:fistud:v:29:y:2008:i:1:p:135-163<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  David de la Croix<br>Author-X-Name-First: David<br>Author-X-Name-Last:  Croix<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Fr&eacuted&eacuteric Docquier<br>Author-X-Name-First: Fr&eacuted&eacuteric<br>Author-X-Name-Last:  Docquier<br>Author-Email: <br>Author-Workplace-Name:<br>Title: School attendance and skill premiums in France and the US: a general equilibrium approach<br>Journal: Fiscal Studies<br>Pages: 383-416<br>Issue: 4<br>Volume: 28<br>Year: 2007<br>Month: December <br>Abstract: &lt;p&gt;We evaluate the effect of education policies, welfare programmes, technology and demographics on the differential evolution of the skill premium and on the rise in education investment in France and the US. We use a computable general equilibrium model with overlapping generations of individuals and endogenous education decisions. Human capital has two substitutable components - experience and education - both of which evolve endogenously over time. We use an original method to calibrate our model properly on the post-war period and run counterfactual experiments to assess the relative contributions of the different exogenous variables. The expansionary French education policy boosted the supply of skills and kept the skill premium low. In contrast, increasing education costs in the US contributed to increased wage differentials by reducing the rise in educational attainment. Skill-biased technical change is key to understanding rising school attendance and skill premiums in the US. It has a less important role and appears to be delayed in France.&lt;/p&gt;<br>Classification-JEL: H52, I28, J31, D58<br>Handle: RePEc:ifs:fistud:v:28:y:2007:i:4:p:383-416<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  David de la Croix<br>Author-X-Name-First: David<br>Author-X-Name-Last:  Croix<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Frederic Docquier<br>Author-X-Name-First: Frederic<br>Author-X-Name-Last:  Docquier<br>Author-Email: <br>Author-Workplace-Name:<br>Title: School attendance and skill premiums in France and the US: a general equilibrium approach<br>Journal: Fiscal Studies<br>Pages: 383-416 <br>Issue: 4<br>Volume: 28<br>Year: 2007<br>Month: December <br>Abstract: &lt;p&gt;We evaluate the effect of education policies, welfare programmes, technology and demographics on the differential evolution of the skill premium and on the rise in education investment in France and the US. We use a computable general equilibrium model with overlapping generations of individuals and endogenous education decisions. Human capital has two substitutable components - experience and education - both of which evolve endogenously over time. We use an original method to calibrate our model properly on the post-war period and run counterfactual experiments to assess the relative contributions of the different exogenous variables. The expansionary French education policy boosted the supply of skills and kept the skill premium low. In contrast, increasing education costs in the US contributed to increased wage differentials by reducing the rise in educational attainment. Skill-biased technical change is key to understanding rising school attendance and skill premiums in the US. It has a less important role and appears to be delayed in France.&lt;/p&gt;<br>Classification-JEL: H52, I28, J31, D58<br>File-URL: http://www.ifs.org.ukhttp://www.blackwell-synergy.com/doi/abs/10.1111/j.1475-5890.2007.00061.x<br>File-Format: application/pdf<br>File-Size: 660<br>Handle: RePEc:ifs:fistud:v:28:y:2007:i:4:p:383-416 <p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Mark A. Scanlan<br>Author-X-Name-First: Mark<br>Author-X-Name-Last:  Scanlan<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Tax sensitivity in electronic commerce<br>Journal: Fiscal Studies<br>Pages: 417-436<br>Issue: 4<br>Volume: 28<br>Year: 2007<br>Month: December <br>Abstract: &lt;p&gt;Empirical research into the impact of taxation on e-commerce has concluded that there is a significant positive relationship between local sales tax rates and the likelihood that a person will shop online. This paper finds that the tax sensitivity for online purchases at the local level is much lower than previously estimated and is not significant under previous general models. However, by using a splined tax-rate function, this paper finds that consumers living in counties with high sales tax rates are still sensitive to tax rates when deciding whether to shop online, while those in counties with low tax rates exhibit no significant sensitivity.&lt;/p&gt;<br>Classification-JEL: H20, H71<br>File-URL: http://www.ifs.org.ukhttp://www.blackwell-synergy.com/doi/abs/10.1111/j.1475-5890.2007.00062.x<br>File-Format: application/pdf<br>File-Size: 160<br>Handle: RePEc:ifs:fistud:v:28:y:2007:i:4:p:417-436<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Young Lee<br>Author-X-Name-First: Young<br>Author-X-Name-Last:  Lee<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Taeyoon Sung<br>Author-X-Name-First: Taeyoon<br>Author-X-Name-Last:  Sung<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Fiscal policy, business cycles and economic stabilisation: evidence from industrialised and developing countries<br>Journal: Fiscal Studies<br>Pages: 437-462<br>Issue: 4<br>Volume: 28<br>Year: 2007<br>Month: December <br>Abstract: &lt;p&gt;This paper empirically investigates the responsiveness of fiscal policy to business cycles and the effectiveness of fiscal policy in reducing economic fluctuations. From regressions on the responsiveness of fiscal policy to business cycles, we find that the government's current expenditures and subsidies &amp; transfers move counter-cyclically, whereas taxes and capital expenditures move pro-cyclically. Using economic fluctuations in neighbouring countries as an instrumental variable, we show that ordinary least squares (OLS) estimates understate the responsiveness of fiscal policy to economic fluctuations. We also find that fiscal policy responds asymmetrically over economic fluctuations. In investigating the effectiveness of fiscal policy in reducing economic fluctuations, we mitigate omitted variable bias by adding four important factors - military expenditures, oil production, economic fluctuations in neighbouring countries and fiscal policy responsiveness to business cycles. The results of effectiveness regressions are consistent with the responsiveness regressions, highlighting the importance of current expenditures, especially subsidies and transfers, in responding to business cycles and stabilising the economy.&lt;/p&gt;<br>Classification-JEL: E6, H6<br>File-URL: http://www.ifs.org.ukhttp://www.blackwell-synergy.com/doi/abs/10.1111/j.1475-5890.2007.00063.x<br>File-Format: application/pdf<br>File-Size: 213<br>Handle: RePEc:ifs:fistud:v:28:y:2007:i:4:p:437-462<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Helene Dearing<br>Author-X-Name-First: Helene<br>Author-X-Name-Last:  Dearing<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Helmut Hofer<br>Author-X-Name-First: Helmut<br>Author-X-Name-Last:  Hofer<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Christine Lietz<br>Author-X-Name-First: Christine<br>Author-X-Name-Last:  Lietz<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Rudolf Winter-Ebmer<br>Author-X-Name-First: Rudolf<br>Author-X-Name-Last:  Winter-Ebmer<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Katharina Wrohlich<br>Author-X-Name-First: Katharina<br>Author-X-Name-Last:  Wrohlich<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Why are mothers working longer hours in Austria than in Germany? a comparative microsimulation analysis<br>Journal: Fiscal Studies<br>Pages: 463-495<br>Issue: 4<br>Volume: 28<br>Year: 2007<br>Month: December <br>Abstract: &lt;p&gt;&lt;p&gt;Labour force participation rates of mothers in Austria and Germany are similar; however, full-time employment rates are much higher among Austrian mothers. In order to find out to what extent these differences can be attributed to differences in the tax-transfer system, we perform a comparative microsimulation exercise. After estimating structural labour supply models for both countries, we interchange two important institutional characteristics of the two countries - namely, (i) the definition of the tax unit within the personal income tax and (ii) the parental leave benefit scheme. As our analysis shows, differences in mothers'employment patterns can partly be explained by the different tax systems: while Germany has a system of joint taxation with income splitting for married couples, Austria taxes everyone individually, which leads to lower marginal tax rates for secondary earners than in the German system.&lt;/p&gt;&lt;/p&gt;<br>Classification-JEL: J22, H31, H24<br>File-URL: http://www.ifs.org.ukhttp://www.blackwell-synergy.com/doi/abs/10.1111/j.1475-5890.2007.00064.x<br>File-Format: application/pdf<br>File-Size: 578<br>Handle: RePEc:ifs:fistud:v:28:y:2007:i:4:p:463-495<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Pak Hung Mo<br>Author-X-Name-First: Pak<br>Author-X-Name-Last:  Mo<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Government expenditures and economic growth: the supply and demand sides<br>Journal: Fiscal Studies<br>Pages: 497-522<br>Issue: 4<br>Volume: 28<br>Year: 2007<br>Month: December <br>Abstract: &lt;p&gt;This paper uses a new approach to estimate how government expenditures affect the growth rate of real GDP. They affect the growth rate through three channels - total factor productivity, investment and aggregate demand. We find that apart from government investment, all government expenditures have negative marginal effects on productivity and GDP growth. In particular, a 1 percentage point increase in the share of government consumption in GDP reduces the equilibrium GDP growth rate by 0.216 percentage points, while the same increase in government investment raises the growth rate by 0.167 percentage points. This suggests that a reallocation of 1 percentage point of government consumption to government investment can raise the growth rate by 0.38 percentage points.&lt;/p&gt;<br>Classification-JEL: O40, O38<br>File-URL: http://www.ifs.org.ukhttp://www.blackwell-synergy.com/doi/abs/10.1111/j.1475-5890.2007.00065.x<br>File-Format: application/pdf<br>File-Size: 132<br>Handle: RePEc:ifs:fistud:v:28:y:2007:i:4:p:497-522<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name: Rachel Griffith<br>Author-X-Name-First: Rachel<br>Author-X-Name-Last: Griffith<br>Author-Email: r.griffith@ifs.org.uk<br>Author-Workplace-Name: Institute for Fiscal Studies and University of Manchester<br>Title: Technology, productivity and public policy<br>Journal: Fiscal Studies<br>Pages: 273-291<br>Issue: 3<br>Volume: 28<br>Year: 2007<br>Month: September<br>Abstract: &lt;p&gt;&lt;p&gt;The poor productivity performance of the UK and the EU when compared with the US has been a major driver of policy reforms over the past decade. This paper considers what the evidence suggests about why we have lagged behind the US, considering among other factors the importance of globalisation and outsourcing, the role for public policy intervention and what the key drivers of growth are likely to be for the future.&lt;/p&gt;&lt;/p&gt;<br>Classification-JEL: D20, H32, O30, O40<br>Handle: RePEc:ifs:fistud:v:28:y:2007:i:3:p:273-291<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Sebastian Hauptmeier<br>Author-X-Name-First: Sebastian<br>Author-X-Name-Last:  Hauptmeier<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Martin Heipertz<br>Author-X-Name-First: Martin<br>Author-X-Name-Last:  Heipertz<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Ludger Schuknecht<br>Author-X-Name-First: Ludger<br>Author-X-Name-Last:  Schuknecht<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Expenditure reform in industrialised countries: a case-study approach<br>Journal: Fiscal Studies<br>Pages: 293-342<br>Issue: 3<br>Volume: 28<br>Year: 2007<br>Month: September<br>Abstract: &lt;p&gt;This study examines reforms of public expenditure in industrialised countries over the past two decades. We distinguish ambitious and timid reformers and analyse in detail reform experiences in eight case studies of ambitious reform episodes. We find that ambitious reform countries reduce spending on transfers, subsidies and public consumption. Such expenditure retrenchment is also typically part of a comprehensive reform package that includes improvements in fiscal institutions as well as structural and other macroeconomic reforms. The study finds that ambitious expenditure retrenchment and reform coincides with large improvements in fiscal and economic growth indicators.&lt;/p&gt;<br>Classification-JEL: H5, H6, O57<br>Handle: RePEc:ifs:fistud:v:28:y:2007:i:3:p:293-342<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name: Thomas Crossley<br>Author-X-Name-First: Thomas<br>Author-X-Name-Last: Crossley<br>Author-Email:  tfc22@cam.ac.uk <br>Author-Workplace-Name: Institute for Fiscal Studies and University of Cambridge<br>Author-Name:  Sung-Hee Jeon<br>Author-X-Name-First: Sung-Hee<br>Author-X-Name-Last:  Jeon<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Joint taxation and the labour supply of married women: evidence from the Canadian tax reform of 1988<br>Journal: Fiscal Studies<br>Pages: 343-365<br>Issue: 3<br>Volume: 28<br>Year: 2007<br>Month: September<br>Abstract: &lt;p&gt;The Canadian federal tax reform of 1988 replaced a spousal tax exemption with a non-refundable tax credit. This reduced the'jointness'of the tax system: after the reform, secondary earners'effective'first dollar'marginal tax rates no longer depended on the marginal tax rates of their spouses. In practice, the effective'first dollar'marginal tax rates faced by women with high-income husbands were particularly reduced. Using difference-indifference estimators, we find a significant increase in labour force participation among women married to higher-income husbands.&lt;/p&gt;<br>Classification-JEL: J22, H24<br>Handle: RePEc:ifs:fistud:v:28:y:2007:i:3:p:343-365<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Frank Blasch<br>Author-X-Name-First: Frank<br>Author-X-Name-Last:  Blasch<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Alfons J. Weichenrieder<br>Author-X-Name-First: Alfons<br>Author-X-Name-Last:  Weichenrieder<br>Author-Email: <br>Author-Workplace-Name:<br>Title: When taxation changes the course of the year: fiscal-year adjustments and the German tax reform of 2000-01<br>Journal: Fiscal Studies<br>Pages: 367-377<br>Issue: 3<br>Volume: 28<br>Year: 2007<br>Month: September<br>Abstract: &lt;p&gt;This paper examines 157 German listed corporations that had the option of changing their fiscal year to achieve a possible tax reduction in connection with the major tax reform of 2000-01. The tax reduction from a change was larger, the larger the expected profits. However, with costs of changing the fiscal year, not all firms that expect a tax reduction from a change may do so. The paper presents empirical evidence that the propensity to change the fiscal year was significantly related to the amount of expected tax savings. This suggests that the corporate tax reduction - in combination with the special German transitory provisions - induced a deadweight loss: corporations incurred a non-tax cost to avoid a tax cost.&lt;/p&gt;<br>Classification-JEL: H25<br>Handle: RePEc:ifs:fistud:v:28:y:2007:i:3:p:367-377<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Kee-Lee Chou<br>Author-X-Name-First: Kee-Lee<br>Author-X-Name-Last:  Chou<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Combined effect of vision and hearing impairment on depression in older adults: evidence from the English Longitudinal Study of Ageing<br>Journal: Fiscal Studies<br>Pages: 191-196<br>Issue: 1-2<br>Volume: 106<br>Year: 2007<br>Month: June     <br>Abstract: &lt;p&gt;BACKGROUND: No longitudinal study has been conducted to examine the relation between dual sensory loss and depression in older adults. The objective of this study was to examine the role of dual sensory loss in the onset and persistence of depression in older persons living in U.K. METHODS: The data used in this study was a 2-year, population-based, prospective, observational study of 3782 older adults aged 65 and above selected from the English Longitudinal Study of Ageing Waves 1 and 2. Sensory loss in vision and hearing, 8-item CES-D, socio-economic variables, health indicators, and social support were assessed. We calculated the odds ratio for any association between sensory loss and depression. RESULTS: Vision loss was a consistent predictor of both onset and persistence of depression even after a wide range of covariates had been adjusted, but the association between dual sensory loss and depression disappeared once health indicators were controlled for. CONCLUSIONS: Aged care service practitioners must take this risk factor, visual impairment, into consideration in their preventive intervention and treatment for depression in aged population.&lt;/p&gt;<br>Handle: RePEc:ifs:fistud:v:106:y:2007:i:1-2:p:191-196<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name: James Banks<br>Author-X-Name-First: James<br>Author-X-Name-Last: Banks<br>Author-Email: j.banks@ifs.org.uk<br>Author-Workplace-Name: Institute for Fiscal Studies and University of Manchester<br>Author-Name: Zo&euml; Oldfield<br>Author-X-Name-First: Zo&euml;<br>Author-X-Name-Last: Oldfield<br>Author-Email: z.oldfield@ifs.org.uk<br>Author-Workplace-Name: Institute for Fiscal Studies<br>Title: Understanding pensions: cognitive function, numerical ability and retirement saving<br>Journal: Fiscal Studies<br>Pages: 143-170<br>Issue: 2<br>Volume: 28<br>Year: 2007<br>Month: June     <br>Abstract: &lt;p&gt;In a world of declining state pension provision, it is becoming increasingly important that individuals are able to understand the financial choices they face and can choose savings products, portfolios and contribution rates accordingly. In this paper, we look at numerical ability and other dimensions of cognitive function in a sample of older adults in England and examine the extent to which these abilities are correlated with various measures of wealth and retirement saving outcomes. As well as finding that relatively large fractions of the older population can be seen to have low levels of numeracy, we show that numeracy levels are strongly correlated with measures of retirement saving and investment portfolios, even when controlling for other dimensions of cognitive ability as well as educational attainment. Numeracy is also related to knowledge and understanding of pension arrangements, and with perceived financial security. In the short run, there may be a role for targeting simple retirement planning information at low-numeracy, low-education groups; a longer-run goal for retirement saving policy might be to improve numeracy levels more generally.&lt;/p&gt;<br>Classification-JEL: D14, D91, G11<br>Handle: RePEc:ifs:fistud:v:28:y:2007:i:2:p:143-170<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Michal Mackiewicz<br>Author-X-Name-First: Michal<br>Author-X-Name-Last:  Mackiewicz<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Making the stability pact more flexible: does it lead to pro-cyclical fiscal policies?<br>Journal: Fiscal Studies<br>Pages: 251-268<br>Issue: 2<br>Volume: 28<br>Year: 2007<br>Month: June     <br>Abstract: &lt;p&gt;&lt;p&gt;&lt;p&gt;One of the often-discussed negative aspects of the Stability and Growth Pact is the rigidity of its deficit rule. Several reform proposals aim currently to alleviate the rule in order to allow the automatic stabilisers to operate freely. However, such a reform is likely to cause even further deterioration of fiscal balances in the EMU member countries. The empirical evidence presented in this paper shows that, in the past, increasing the structural deficit had a strong negative impact on the degree of anti-cyclical fiscal stabilisation. This suggests that the reform of the Pact, through higher structural deficits, could decrease rather than increase the scope of anti-cyclical fiscal actions in the EMU member countries.&lt;/p&gt;&lt;/p&gt;&lt;/p&gt;<br>Classification-JEL: E60, E63<br>Handle: RePEc:ifs:fistud:v:28:y:2007:i:2:p:251-268<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Jose-Ignacio Anton<br>Author-X-Name-First: Jose-Ignacio<br>Author-X-Name-Last:  Anton<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Distributional implications of tax relief on voluntary private pensions in Spain<br>Journal: Fiscal Studies<br>Pages: 171-203<br>Issue: 2<br>Volume: 28<br>Year: 2007<br>Month: June     <br>Abstract: &lt;p&gt;Using taxation statistics, this paper explores the distributional implications of tax relief on private pensions in Spain in 2002. For this purpose, the author suggests a decomposition of the Kakwani index and its generalisations that allows us to distinguish between the regressivity caused by targeting and that due to benefits allocation among recipients. This paper finds that these tax incentives are regressive - mainly for the latter reason - and have negative although small distributional effects. Finally, this work presents several proposals for reform of the current system and simulates their implications for equity.&lt;/p&gt;<br>Classification-JEL: D33, H55.<br>Handle: RePEc:ifs:fistud:v:28:y:2007:i:2:p:171-203<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Ciaran Driver<br>Author-X-Name-First: Ciaran<br>Author-X-Name-Last:  Driver<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Business optimism for small. medium and large firms: does it explain investment?<br>Journal: Fiscal Studies<br>Pages: 205-225<br>Issue: 2<br>Volume: 28<br>Year: 2007<br>Month: June     <br>Abstract: &lt;p&gt;&lt;p&gt;&lt;p&gt;We use UK survey data on variation in business optimism by manufacturing size group to estimate the determinants of optimism using OLS and SURE. There are similarities across the size groups but also some differences: the medium-size group seems to have been unusually affected by real interest rates in recent years. We also model investment authorisations, conditional on business optimism. Again, there are similarities across the size groups. However, the largest-size group, and possibly also the medium-size group, seem to be investing less in recent years in relation to reported optimism. By contrast, capital investment by smaller-sized firms has been stable in relation to business optimism. Some tentative explanations for these findings are explored.&lt;/p&gt;&lt;/p&gt;&lt;/p&gt;<br>Classification-JEL: E22, L60<br>Handle: RePEc:ifs:fistud:v:28:y:2007:i:2:p:205-225<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Simon Loretz<br>Author-X-Name-First: Simon<br>Author-X-Name-Last:  Loretz<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Determinants of bilateral effective tax rates: empirical evidence from OECD countries<br>Journal: Fiscal Studies<br>Pages: 227-249<br>Issue: 2<br>Volume: 28<br>Year: 2007<br>Month: June     <br>Abstract: &lt;p&gt;&lt;p&gt;&lt;p&gt;This paper identifies the relevant determinants of a company's effective tax burden. Thereby, we account for bilateral aspects of corporate taxation by calculating bilateral effective tax rates as proposed by Devereux and Griffith (1999 and 2003). The empirical evidence of a large panel of nearly 8,000 bilateral effective tax rates within the OECD suggests that country size is an important determinant of the effective tax rate. In line with the literature, bilateral tax rates with small host countries exhibit a smaller overall effective tax rate, despite the fact that larger countries are more likely to reduce the tax burden by means of tax treaties at the bilateral level. Further, we find that geographically remote countries impose higher taxes, whereas economic integration tends to reduce the extent of the bilateral effective tax burden.&lt;/p&gt;&lt;/p&gt;&lt;/p&gt;<br>Classification-JEL: H25, H77, C33<br>Handle: RePEc:ifs:fistud:v:28:y:2007:i:2:p:227-249<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name: Michael Keen<br>Author-X-Name-First: Michael<br>Author-X-Name-Last: Keen<br>Author-Email: mkeen@imf.org<br>Author-Workplace-Name: Institute for Fiscal Studies and International Monetary Fund<br>Author-Name:  Jon Strand<br>Author-X-Name-First: Jon<br>Author-X-Name-Last:  Strand<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Indirect taxes on international aviation<br>Journal: Fiscal Studies<br>Pages: 1-41<br>Issue: 1<br>Volume: 28<br>Year: 2007<br>Month: March    <br>Abstract: &lt;p&gt;There has recently been much discussion of the possible use of internationally coordinated indirect taxes, or equivalent charges, on international aviation, whether as a source of finance for development or as part of a response to heightened concerns with climate change. This paper considers the strengths and weaknesses of the leading candidate instruments of this kind. It argues that, on both policy and administration grounds, the case for increasing indirect taxes on international aviation is strong: the indirect tax burden on international aviation is very low, yet aviation contributes significantly to border crossing environmental damage, is just as proper an object of taxation as any other commodity, and incipient tax competition is likely to result in these taxes being set at inefficiently low levels. But the form(s) in which such taxes are levied matters: a tax on aviation fuel would address the key border crossing externalities most directly; a tax on final ticket values would have greater revenue potential, and perhaps some distributional advantage; departure/arrival taxes face the least legal obstacles, but are much blunter instruments. Optimal policy, it is shown, typically requires deploying both a fuel tax and a ticket tax, and the paper explores, both in principle and by simulation, the key considerations and trade offs involved in designing a suitable indirect tax regime for international aviation.&lt;/p&gt;<br>Classification-JEL: L93, H23, H21<br>Handle: RePEc:ifs:fistud:v:28:y:2007:i:1:p:1-41<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name: Peter Haan<br>Author-X-Name-First: Peter<br>Author-X-Name-Last: Haan<br>Author-Email: <br>Author-Workplace-Name: Institute for Fiscal Studies and Deutsches Institut f&uuml;r Wirtschaftsforschung<br>Author-Name: Michal Myck<br>Author-X-Name-First: Michal<br>Author-X-Name-Last: Myck<br>Author-Email: see DIW-Berlin website: <a href="http://www.diw.de">www.diw.de</a>@ifs.org.uk<br>Author-Workplace-Name: Institute for Fiscal Studies and DIW-Berlin<br>Title: Apply with caution: introducing UK-Style in-work support in Germany<br>Journal: Fiscal Studies<br>Pages: 43-72<br>Issue: 1<br>Volume: 28<br>Year: 2007<br>Month: March    <br>Abstract: &lt;p&gt;Estimates of the labour supply effects of recent UK reforms in the area of direct taxes and benefits show that policy can have significant influence on the level of employment. We confirm this in a simulation of an in-work support system introduced into the German tax and benefit system. Our simulation results suggest that introducing in-work tax credits in Germany would increase the employment of single individuals by over 105,000 but would result in a reduction of labour supply among individuals living in couples by about 70,000, among both women and men. The result found for men is especially important as it is markedly different from all results for the UK, where the net response among men has always been found to be positive. Our estimation results call for a high degree of caution as far as 'importing' UK-style tax credits to Germany is concerned. In-work support based on family income would reinforce the existing work disincentives for secondary earners, reducing the employment levels of both men and women living in couples.&lt;/p&gt;<br>Classification-JEL: C25, C52, H31, J22<br>Handle: RePEc:ifs:fistud:v:28:y:2007:i:1:p:43-72<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Hans Fehr<br>Author-X-Name-First: Hans<br>Author-X-Name-Last:  Fehr<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Heinrich Jess<br>Author-X-Name-First: Heinrich<br>Author-X-Name-Last:  Jess<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Who benefits from the reform of pension taxation in Germany?<br>Journal: Fiscal Studies<br>Pages: 73-101<br>Issue: 1<br>Volume: 28<br>Year: 2007<br>Month: March    <br>Abstract: &lt;p&gt;The present paper quantifies the revenue, distributional and efficiency effects of the recent reform of pension taxation in Germany. The starting point is the new legislation, which has introduced a switch to the deferred taxation of retirement benefits starting in 2005. We compare this reform with an alternative transition proposed by the Federation of German Pension Insurance Institutes (VDR), where double taxation is avoided at the cost of higher revenue losses.&lt;/p&gt;&lt;p&gt;&lt;/p&gt;&lt;p&gt;Our simulations indicate significant growth and efficiency gains from the new tax legislation. Winners from the reform are mainly younger workers, while older workers, civil servants and the self-employed will lose. The VDR proposal would have resulted in higher efficiency gains, but also in stronger distributional consequences.&lt;/p&gt;<br>Classification-JEL: D58, H22, J11<br>Handle: RePEc:ifs:fistud:v:28:y:2007:i:1:p:73-101<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Davide Furceri<br>Author-X-Name-First: Davide<br>Author-X-Name-Last:  Furceri<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Is government expenditure volatility harmful for growth? A cross-country analysis<br>Journal: Fiscal Studies<br>Pages: 103-120<br>Issue: 1<br>Volume: 28<br>Year: 2007<br>Month: March    <br>Abstract: &lt;p&gt;The aim of the paper is to analyse the relationship between government expenditure volatility and long-run growth. Using cross-country panel data from 1970 to 2000, the paper finds that countries with higher government expenditure business-cycle volatility have lower growth, even after controlling for other country-specific growth correlates such as investment, government expenditure, human capital, population growth and output volatility. This relation is robust to different measures of business cycles. Moreover, considering different subsamples, the paper finds that while government volatility significantly affects long-run growth for developing countries, it has a small effect for OECD countries.&lt;/p&gt;<br>Classification-JEL: E32, E62, F43<br>Handle: RePEc:ifs:fistud:v:28:y:2007:i:1:p:103-120<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Victor M. Gim&eacute;nez<br>Author-X-Name-First: Victor<br>Author-X-Name-Last:  Gim&eacute;nez<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Diego Prior<br>Author-X-Name-First: Diego<br>Author-X-Name-Last:  Prior<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Long- and short-term cost efficiency frontier evaluation: evidence from Spanish local governments<br>Journal: Fiscal Studies<br>Pages: 121-139<br>Issue: 1<br>Volume: 28<br>Year: 2007<br>Month: March    <br>Abstract: &lt;p&gt;&lt;p&gt;This paper analyses the efficiency of Spanish local governments using non-convex frontier methods. More specifically, it analyses the total cost inefficiency and proposes its decomposition into three additive components: short-term variable cost inefficiency; capacity utilisation of fixed inputs; and scale inefficiency. The second and third components correspond to the long-term cost efficiency notion. The proposition is applied to a sample of Spanish municipal councils (municipalities with over 2,000 inhabitants located in Catalonia, the Spanish north-eastern region). The results confirm the existence of significant cost inefficiency coefficients related to both the long and short term.&lt;/p&gt;&lt;/p&gt;<br>Classification-JEL: D24, D60, H71, H72<br>Handle: RePEc:ifs:fistud:v:28:y:2007:i:1:p:121-139<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Iain A. Lang<br>Author-X-Name-First: Iain<br>Author-X-Name-Last:  Lang<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Jack Guralnik<br>Author-X-Name-First: Jack<br>Author-X-Name-Last:  Guralnik<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Robert B. Wallace<br>Author-X-Name-First: Robert<br>Author-X-Name-Last:  Wallace<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  David Melzer<br>Author-X-Name-First: David<br>Author-X-Name-Last:  Melzer<br>Author-Email: <br>Author-Workplace-Name:<br>Title: What level of alcohol consumption is hazardous for older people? Functioning and Mortality in U.S. and English National Cohorts<br>Journal: Fiscal Studies<br>Pages: 49-57<br>Issue: 1<br>Volume: 55<br>Year: 2007<br>Month: January  <br>Abstract: &lt;p&gt;&lt;p&gt;&lt;p&gt;&lt;h4&gt;Objectives:&lt;/h4&gt;&lt;p&gt;To estimate disability plus mortality risks in older people according to level of alcohol intake.&lt;/p&gt;&lt;h4&gt;Design:&lt;/h4&gt;&lt;p&gt;Two population-based cohort studies.&lt;/p&gt;&lt;h4&gt;Setting: &lt;/h4&gt;&lt;p&gt;The Health and Retirement Study (United States) and the English Longitudinal Study of Aging (England).&lt;/p&gt;&lt;h4&gt;Participants: &lt;/h4&gt;&lt;p&gt;Thirteen thousand three hundred thirty-three individuals aged 65 and older followed for 4 to 5 years.&lt;/p&gt;&lt;h4&gt;Measurements: &lt;/h4&gt;&lt;p&gt;Difficulties with activities of daily living (ADLs), instrumental activities of daily living (IADLs), poor cognitive function, and mortality.&lt;/p&gt;&lt;h4&gt;Results: &lt;/h4&gt;&lt;p&gt;One-tenth (10.8%) of U.S. men, 28.6% of English men, 2.9% of U.S. women, and 10.3% of English women drank more than the U.S. National Institute on Alcohol Abuse and Alcoholism recommended limit for people aged 65 and older. Odds ratios (ORs) of disability, or disability plus mortality, in subjects drinking an average of more than one to two drinks per day were similar to ORs in subjects drinking an average of more than none to one drink per day. For example, those drinking more than one to two drinks per day at baseline had an OR of 1.0 (95% confidence interval (CI)=0.8-1.2) for ADL problems, 0.7 (95% CI=0.6-1.0) for IADL problems, and 0.8 (95% CI=0.6-1.1) for poor cognitive function. Findings were robust across alternative models. The shape of the relationship between alcohol consumption and risk of disability was similar in men and women.&lt;/p&gt;&lt;h4&gt;Conclusion: &lt;/h4&gt;&lt;p&gt;Functioning and mortality outcomes in older people with alcohol intakes above U.S. recommended levels for the old but within recommendations for younger adults are not poor. More empirical evidence of net benefit is needed to support screening and intervention efforts in community-living older people with no specific contraindications who drink more than one to two drinks per day.&lt;/p&gt;&lt;/p&gt;&lt;/p&gt;<br>Handle: RePEc:ifs:fistud:v:55:y:2007:i:1:p:49-57<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name: Alan Auerbach<br>Author-X-Name-First: Alan<br>Author-X-Name-Last: Auerbach<br>Author-Email: auerbach@econ.berkeley.edu<br>Author-Workplace-Name: Institute for Fiscal Studies and  University of California, Berkeley <br>Title: The future of capital income taxation<br>Journal: Fiscal Studies<br>Pages: 399-420<br>Issue: 4<br>Volume: 27<br>Year: 2006<br>Month: December <br>Abstract: <p>This paper was delivered as the IFS annual lecture in September 2006.</p><br>Classification-JEL: H24, H25, K34<br>Handle: RePEc:ifs:fistud:v:27:y:2006:i:4:p:399-420<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name: Orazio Attanasio<br>Author-X-Name-First: Orazio<br>Author-X-Name-Last: Attanasio<br>Author-Email: o.attanasio@ucl.ac.uk<br>Author-Workplace-Name: Institute for Fiscal Studies and University College London<br>Author-Name: Alice Mesnard<br>Author-X-Name-First: Alice<br>Author-X-Name-Last: Mesnard<br>Author-Email: a.mesnard@ifs.org.uk<br>Author-Workplace-Name: Institute for Fiscal Studies<br>Title: The impact of a conditional cash transfer programme on consumption in Colombia <br>Journal: Fiscal Studies<br>Pages: 421-442<br>Issue: 4<br>Volume: 27<br>Year: 2006<br>Month: December <br>Abstract: <p>This paper studies the impact of a conditional cash transfer programme in Colombia on the total consumption of very poor households and on its components. Our evaluation methodology involves comparing household expenditures in areas in which the programme was not implemented (control) and those in which it was (treated). We use a quasi-experimental approach, as the Familias en Acci&oacute;n programme was not randomly assigned across localities, for political reasons. We condition on a large range of household- and municipality-level characteristics, and also control for pre-programme differences in the outcomes of interest using a differences-in-differences methodology. We find that the programme has been effective at greatly increasing total consumption and its main component, food consumption, in both rural and urban areas. The programme has also contributed to improvements in the quality of food consumed, in particular of items rich in proteins (milk, meat and eggs) and of cereals. Furthermore, the programme has created redistributive effects in favour of children through expenditure on education and children's clothing, while it has not significantly affected consumption of adult goods such as alcohol and tobacco or adults' clothing. </p><br>Classification-JEL: D12, I38, O15<br>Handle: RePEc:ifs:fistud:v:27:y:2006:i:4:p:421-442<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Aaron Mehrotra<br>Author-X-Name-First: Aaron<br>Author-X-Name-Last:  Mehrotra<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Timo V&auml;lil&auml;<br>Author-X-Name-First: Timo<br>Author-X-Name-Last:  V&auml;lil&auml;<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Public investment in Europe: evolution and determinants in perspective <br>Journal: Fiscal Studies<br>Pages: 443-471<br>Issue: 4<br>Volume: 27<br>Year: 2006<br>Month: December <br>Abstract: <p>We describe the evolution of public investment and public capital stocks in Europe over the past three decades. Against this background, we analyse the macroeconomic determinants of public investment, with a special focus on its long-term trend. We find that public investment has been determined by national income, the stance of budgetary policies and fiscal sustainability considerations. Neither the cost of financing nor the fiscal rules embodied in EMU have had a systemic impact on public investment. The significant downtrend that characterises the evolution of public investment in non-cohesion countries is chiefly determined by drawn-out episodes of fiscal consolidation, unrelated to EMU.</p><br>Classification-JEL: E62, H54<br>Handle: RePEc:ifs:fistud:v:27:y:2006:i:4:p:443-471<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name: Gillian Paull<br>Author-X-Name-First: Gillian<br>Author-X-Name-Last: Paull<br>Author-Email: gill_p@ifs.org.uk<br>Author-Workplace-Name: Institute for Fiscal Studies<br>Title: The impact of children on women's paid work<br>Journal: Fiscal Studies<br>Pages: 473-512<br>Issue: 4<br>Volume: 27<br>Year: 2006<br>Month: December <br>Abstract: <p>This paper investigates how and when differences in work behaviour between men and women develop, focusing on the evolution of the gender gaps over the period of family development. The findings support the theory that gender differences in the formal labour market stem from the presence of children in the home and that childbirth and children entering school are critical times in women's employment. Births mark a dramatic decline in participation in work for women, while school entry is a time of considerable turnover in participation. The length of absence from work following a subsequent birth is closely related to whether the mother was in work between births, while maternity pay and leave entitlements appear to influence the precise timing of the return to work. In addition, a return to work following birth is often only temporary. The gradual decline in women's relative wages following the first birth appears to stem from the accumulation of several shorter periods of unusually low wage growth for women around the times of birth and school entry. There is also a sharp movement into part-time work for women following childbirth and a transition towards non-permanent positions and non-supervisory roles at both critical points.</p><br>Classification-JEL: J16, J22, J31<br>Handle: RePEc:ifs:fistud:v:27:y:2006:i:4:p:473-512<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Christina Elschner<br>Author-X-Name-First: Christina<br>Author-X-Name-Last:  Elschner<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Lothar Lammersen<br>Author-X-Name-First: Lothar<br>Author-X-Name-Last:  Lammersen<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Michael Overesch<br>Author-X-Name-First: Michael<br>Author-X-Name-Last:  Overesch<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Robert Schwager<br>Author-X-Name-First: Robert<br>Author-X-Name-Last:  Schwager<br>Author-Email: <br>Author-Workplace-Name:<br>Title: The effective tax burden of companies and of highly skilled manpower: tax policy strategies in a globalised economy<br>Journal: Fiscal Studies<br>Pages: 513-534<br>Issue: 4<br>Volume: 27<br>Year: 2006<br>Month: December <br>Abstract: <p>Company taxes and taxes on highly skilled labour both influence the attractiveness of a particular region as a location for investment. We measure the effective tax burden on capital investment and on highly qualified labour in 33 locations across Europe and the United States. We then correlate both types of tax burden in order to study the different tax policy strategies applied in different countries. We find that effective tax rates on companies and on highly skilled employees are closely correlated for a number of countries. Ireland and most new EU Member States impose relatively lower taxes on capital investment than on highly skilled manpower. Conversely, in the US, companies are taxed heavily but the effective tax rate on highly skilled employees is moderate.</p><br>Classification-JEL: H21, H24, H25<br>Handle: RePEc:ifs:fistud:v:27:y:2006:i:4:p:513-534<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name: Steve Machin<br>Author-X-Name-First: Steve<br>Author-X-Name-Last: Machin<br>Author-Email: s.machin@ucl.ac.uk<br>Author-Workplace-Name: Institute for Fiscal Studies and University College London<br>Author-Name:  Shqiponja Telhaj<br>Author-X-Name-First: Shqiponja<br>Author-X-Name-Last:  Telhaj<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Joan Wilson<br>Author-X-Name-First: Joan<br>Author-X-Name-Last:  Wilson<br>Author-Email: <br>Author-Workplace-Name:<br>Title: The mobility of English school children<br>Journal: Fiscal Studies<br>Pages: 253-280<br>Issue: 3<br>Volume: 27<br>Year: 2006<br>Month: August   <br>Abstract: In this paper, we examine links between pupil mobility and pupil and school characteristics at all levels of compulsory schooling in England. We derive measures of mobility from two academic years of the Pupil Level Annual School Census (PLASC) data, a unique national administrative pupil-level longitudinal data source. Our findings suggest that mobile pupils are more socially disadvantaged than non-mobile pupils and are significantly less likely to have a good prior education record. Moreover, we find that pupils are less likely to move if the school they attend has good average performance levels. Finally, when children move school, they are more likely to end up in a school with better Key Stage performance than the one they left, but this improvement is significantly more marked for children from better-off backgrounds.<br>Classification-JEL: I2<br>Handle: RePEc:ifs:fistud:v:27:y:2006:i:3:p:253-280<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name: James Banks<br>Author-X-Name-First: James<br>Author-X-Name-Last: Banks<br>Author-Email: j.banks@ifs.org.uk<br>Author-Workplace-Name: Institute for Fiscal Studies and University of Manchester<br>Title: Economic capabilities, choices and outcomes at older ages<br>Journal: Fiscal Studies<br>Pages: 281-311<br>Issue: 3<br>Volume: 27<br>Year: 2006<br>Month: August   <br>Abstract: Intense policy and academic interest in the 'economics of ageing' has come about as a result of the demographic trends that have been experienced over the last 50 years and that are projected for the next 50 years. Key economic policy issues relate to the design of public pensions, welfare systems, healthcare and invalidity benefits, and the regulation of private pensions and other retirement saving. This paper presents an overview of the beginnings of a research agenda targeted towards increasing the empirical evidence on these issues in England and providing extensive data for subsequent research. The paper focuses on summarising some recent data on how individuals' economic circumstances, and in particular the ability and willingness to work, change from age 50 onwards. This will be a key factor in determining the ability of economic institutions to adjust to new socio-demographic equilibria in which individuals are living for longer. Further issues for more extensive empirical research are also identified.<br>Classification-JEL: J26<br>Handle: RePEc:ifs:fistud:v:27:y:2006:i:3:p:281-311<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Sarah Brown<br>Author-X-Name-First: Sarah<br>Author-X-Name-Last:  Brown<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Karl Taylor<br>Author-X-Name-First: Karl<br>Author-X-Name-Last:  Taylor<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Financial expectations, consumption and saving: a microeconomic analysis <br>Journal: Fiscal Studies<br>Pages: 313-338<br>Issue: 3<br>Volume: 27<br>Year: 2006<br>Month: August   <br>Abstract: We explore the determinants of individuals' financial expectations using data from the British Household Panel Survey, 1991-2003. Our findings suggest that individuals' financial predictions are influenced by both the life cycle and the business cycle. We also investigate the extent to which the accuracy of past financial expectations affects current financial expectations. Regardless of the accuracy of the prediction, past financial optimism has a positive effect on current expectations formation whilst past financial pessimism has a negative effect. We also explore the relationship between financial realisations and expectations and we find that expectations tend to fall short of financial realisations. Finally, we investigate how financial expectations influence saving and consumption. Our findings suggest that financial optimism is inversely associated with saving and that current financial expectations serve to predict future consumption.<br>Classification-JEL: D10, D84, E32<br>Handle: RePEc:ifs:fistud:v:27:y:2006:i:3:p:313-338<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Tom Kornstad<br>Author-X-Name-First: Tom<br>Author-X-Name-Last:  Kornstad<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Thor O. Thoresen<br>Author-X-Name-First: Thor<br>Author-X-Name-Last:  Thoresen<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Effects of family policy reforms in Norway: results from a joint labour supply and childcare choice microsimulation analysis<br>Journal: Fiscal Studies<br>Pages: 339-371<br>Issue: 3<br>Volume: 27<br>Year: 2006<br>Month: August   <br>Abstract: Mothers of pre-school children represent one part of the population that might be able to increase its labour supply. We discuss the effects of family policy changes that encourage the labour supply of these mothers, such as childcare fee reductions and increased availability of centre-based care. The effects of policy changes are described by using a joint labour supply and childcare choice decision model. Detailed empirical results are provided with respect to mothers' labour supply, families' childcare choices, public expenditures, and distributions of income and money metric utility.<br>Classification-JEL: D12, D31, J22, H23<br>Handle: RePEc:ifs:fistud:v:27:y:2006:i:3:p:339-371<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Mercedes Fern&aacute;ndez<br>Author-X-Name-First: Mercedes<br>Author-X-Name-Last:  Fern&aacute;ndez<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Sebasti&aacute;n Galiani<br>Author-X-Name-First: Sebasti&aacute;n<br>Author-X-Name-Last:  Galiani<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Ernesto Schargrodsky<br>Author-X-Name-First: Ernesto<br>Author-X-Name-Last:  Schargrodsky<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Targeted interventions in healthcare: the role of facility placement <br>Journal: Fiscal Studies<br>Pages: 373-395<br>Issue: 3<br>Volume: 27<br>Year: 2006<br>Month: August   <br>Abstract: Adequate targeting is a primary concern in the design of any social programme that attempts to reach a specific group in society. This paper studies the targeting of a healthcare-centre programme aimed at the poor that relies on household self-selection into the programme at the local level. We find that a key variable in determining utilisation of the health centres is location. Households living near a centre are substantially more likely to use it than households living further away. This points to the importance of facility placement in targeting self-selected health programmes to the poor.<br>Classification-JEL: H51, I18, H43<br>Handle: RePEc:ifs:fistud:v:27:y:2006:i:3:p:373-395<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Paul Sweeting<br>Author-X-Name-First: Paul<br>Author-X-Name-Last:  Sweeting<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Correlation and the Pension Protection Fund<br>Journal: Fiscal Studies<br>Pages: 157-182<br>Issue: 2<br>Volume: 27<br>Year: 2006<br>Month: June     <br>Abstract: In this paper, I use a stochastic approach to model the effect that correlations between pension scheme assets and firm values should have on the premiums chargeable by the Pension Protection Fund. In particular, I look at the effect on the aggregate premium that should be charged considering a representative universe of companies and their pension schemes. I find that ignoring the correlations, even if the volatility of pension scheme assets is allowed for, leads to potentially serious underestimation of the aggregate premium due.
<br>Classification-JEL: G11, G13, G22, G23, G28, J26.<br>Handle: RePEc:ifs:fistud:v:27:y:2006:i:2:p:157-182<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Richard Wood<br>Author-X-Name-First: Richard<br>Author-X-Name-Last:  Wood<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Financial capital and taxation policy<br>Journal: Fiscal Studies<br>Pages: 127-155<br>Issue: 2<br>Volume: 27<br>Year: 2006<br>Month: June     <br>Abstract: This paper suggests a relatively simple analytical framework for taxing all financial arrangements. The debt/equity distinction is determined by the contingency principle. The accruals/realisation distinction is determined separately by the volatility principle. The capital/revenue character distinction is effectively removed directly or by a character hedging regime. Hybrids, synthetics, hedging arrangements and other portfolios are tax-assessed on an aggregate, rather than a bifurcated, basis. The framework could be applied to both classical and dividend-imputation-based business tax systems.
<br>Handle: RePEc:ifs:fistud:v:27:y:2006:i:2:p:127-155<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Ross Guest<br>Author-X-Name-First: Ross<br>Author-X-Name-Last:  Guest<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Population ageing, fiscal pressure and tax smoothing: a CGE application to Australia<br>Journal: Fiscal Studies<br>Pages: 183-203<br>Issue: 2<br>Volume: 27<br>Year: 2006<br>Month: June     <br>Abstract: This paper analyses the fiscal pressure from population ageing using an intertemporal CGE model, applied to Australia, and compares the results with those of a recent government-commissioned study. The latter study uses an alternative modelling approach based on extrapolation rather than optimising behaviour of consumers and firms. The deadweight losses from the fiscal pressure caused by population ageing are equivalent to an annual loss of consumption of &dollar;260 per person per year in 2003 dollars in the balanced-budget scenario. A feasible degree of tax smoothing would reduce this welfare loss by an equivalent of &dollar;70 per person per year. Unlike the extrapolation-based model, the CGE approach takes account of feedback effects of ageing-induced tax increases on consumption and labour supply, which in turn impact on the ultimate magnitude of fiscal pressure and therefore tax increases. However, a counterfactual simulation suggests that the difference in terms of deadweight losses between the two modelling approaches is modest, at about &dollar;30 per person per year.<br>Classification-JEL: H31, H32, J18, E21<br>Handle: RePEc:ifs:fistud:v:27:y:2006:i:2:p:183-203<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Colin Jones<br>Author-X-Name-First: Colin<br>Author-X-Name-Last:  Jones<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Chris Leishman<br>Author-X-Name-First: Chris<br>Author-X-Name-Last:  Leishman<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Allison M. Orr<br>Author-X-Name-First: Allison<br>Author-X-Name-Last:  Orr<br>Author-Email: <br>Author-Workplace-Name:<br>Title: The potential impact of reforms to the essential parameters of the council tax<br>Journal: Fiscal Studies<br>Pages: 205-229<br>Issue: 2<br>Volume: 27<br>Year: 2006<br>Month: June     <br>Abstract: Council tax was introduced in Britain in 1993 and represents a unique international property tax. There is a growing belief that it is time to reform the number and structure of council tax bands, but such views have a minimal empirical base. This paper sets out to assess the impact of changing the bands on personal and local government finances, and extends the analysis to the role of the tax multipliers linked to each band. The research is based on the experience of a representative sample of local authorities in Scotland. A statistical revaluation for 2000 is estimated for the existing eight-band system, and from this base a 10-band system is calculated. Financial implications are then simulated for each local authority, taking account of central resource equalisation mechanisms. The results indicate that increases in the number of bands will have little impact on the burden of the council tax compared with regular revaluations. Changing the tax multiplier range has the greatest impact on local authority finances and council tax payments.<br>Classification-JEL: H71<br>Handle: RePEc:ifs:fistud:v:27:y:2006:i:2:p:205-229<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Emilio Torres<br>Author-X-Name-First: Emilio<br>Author-X-Name-Last:  Torres<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  J. Santos Dom&iacute;nguez-Menchero<br>Author-X-Name-First: J.<br>Author-X-Name-Last:  Dom&iacute;nguez-Menchero<br>Author-Email: <br>Author-Workplace-Name:<br>Title: The impact of second homes on local taxes<br>Journal: Fiscal Studies<br>Pages: 231-250<br>Issue: 2<br>Volume: 27<br>Year: 2006<br>Month: June     <br>Abstract: A methodology to estimate the influence of second homes on municipal taxes is developed in this paper. Assuming that a larger floating population implies an increase in public expenditure, our aim is to develop a model of the relationship between the local taxes paid and the number of second dwellings in a village. As an applied example, the results for two of the most touristy regions of the Mediterranean � the Costa del Sol and the Costa Blanca, in Spain � are shown in this paper. As we will see, there are only three different levels of local taxes, regardless of the number of second homes. The main factors behind high local tax burdens are seaside location and the presence of foreign owners.<br>Handle: RePEc:ifs:fistud:v:27:y:2006:i:2:p:231-250<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Solange M. Berstein<br>Author-X-Name-First: Solange<br>Author-X-Name-Last:  Berstein<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  R&oacute;mulo A. Chumacero<br>Author-X-Name-First: R&oacute;mulo<br>Author-X-Name-Last:  Chumacero<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Quantifying the costs of investment limits for Chilean pension funds<br>Journal: Fiscal Studies<br>Pages: 99-123<br>Issue: 1<br>Volume: 27<br>Year: 2006<br>Month: March    <br>Abstract: Since the creation of the Chilean pension fund industry in 1981, pension fund administrators have not been free to choose their investment portfolios because of stringent regulation of investment limits. The diagnosis implicit with the imposition of limits was that the Chilean capital market was not deep, that there was an important demand for funds to finance the expansion of the productive sector and that, due to principal-agent problems, protection for uninformed account holders was needed. As this regulation entails an inefficient combination of risk and return, this paper quantifies its costs.<br>Classification-JEL: G11, G23, C63<br>Handle: RePEc:ifs:fistud:v:27:y:2006:i:1:p:99-123<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name: Lorraine Dearden<br>Author-X-Name-First: Lorraine<br>Author-X-Name-Last: Dearden<br>Author-Email: l.dearden@ifs.org.uk<br>Author-Workplace-Name: Institute for Fiscal Studies and Bedford Group, Institute of Education, University of London<br>Author-Name: Alice Mesnard<br>Author-X-Name-First: Alice<br>Author-X-Name-Last: Mesnard<br>Author-Email: a.mesnard@ifs.org.uk<br>Author-Workplace-Name: Institute for Fiscal Studies<br>Author-Name: Jonathan Shaw<br>Author-X-Name-First: Jonathan<br>Author-X-Name-Last: Shaw<br>Author-Email: j.shaw@ifs.org.uk<br>Author-Workplace-Name: Institute for Fiscal Studies<br>Title: Ethnic differences in birth outcomes in England<br>Journal: Fiscal Studies<br>Pages: 17-46<br>Issue: 1<br>Volume: 27<br>Year: 2006<br>Month: March    <br>Abstract: This paper uses the Millennium Cohort Study to look at ethnic differences in birth outcomes for a cohort of English children born in 2000 and 2001. There is an increasingly large literature showing that longer gestation and higher birthweight are positively associated with cognitive and non-cognitive outcomes later in life, so understanding sources of ethnic differences in these outcomes and identifying factors that may influence birth outcomes has a lot of potential policy interest. This paper shows that even after controlling for background characteristics in a number of ways, there still remain unexplained differences in both gestation and birthweight outcomes across broad ethnic groups. It also suggests, however, that there may be potential policy levers that could be used to narrow this ethnic gap in birth outcomes, such as reducing the proportion of underweight Asian mothers and overweight Black mothers and increasing ethnic minority attendance at antenatal classes.<br>Classification-JEL: O15, I12<br>Handle: RePEc:ifs:fistud:v:27:y:2006:i:1:p:17-46<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Simon Dresner<br>Author-X-Name-First: Simon<br>Author-X-Name-Last:  Dresner<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Paul Ekins<br>Author-X-Name-First: Paul<br>Author-X-Name-Last:  Ekins<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Economic instruments to improve UK home energy efficiency without negative social impacts<br>Journal: Fiscal Studies<br>Pages: 47-74<br>Issue: 1<br>Volume: 27<br>Year: 2006<br>Month: March    <br>Abstract: The research examined how to use economic instruments to reduce carbon emissions from the UK housing sector without causing negative impacts on the poorest households. Carbon taxes would worsen the problem of fuel poverty. Compensation mechanisms involving the tax and benefit system were examined, but found not to be entirely effective because of the enormous range in the existing energy efficiency of homes. Exemptions for low-income households were examined, but found impractical to target. It was concluded that the best way to use economic instruments was through a scheme involving energy audits and surcharges to council tax and stamp duty for homeowners who failed to make cost-effective energy efficiency improvements within a specified time, with grants and loans to assist low-income households. After the implementation of such a scheme for 10 years, it would be practical to introduce a targeted carbon tax.<br>Classification-JEL: H23<br>Handle: RePEc:ifs:fistud:v:27:y:2006:i:1:p:47-74<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Simon Burgess<br>Author-X-Name-First: Simon<br>Author-X-Name-Last:  Burgess<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Carol Propper<br>Author-X-Name-First: Carol<br>Author-X-Name-Last:  Propper<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Matt Dickson<br>Author-X-Name-First: Matt<br>Author-X-Name-Last:  Dickson<br>Author-Email: <br>Author-Workplace-Name:<br>Title: The analysis of poverty data with endogenous transitions<br>Journal: Fiscal Studies<br>Pages: 75-98<br>Issue: 1<br>Volume: 27<br>Year: 2006<br>Month: March    <br>Abstract: It is common to analyse poverty data broken down by household or economic status. Implicitly, it is assumed that people change state (for example, single, married, children, no children) for exogenous reasons. If we bring economic behaviour into the problem, then such transitions become endogenous. The data are then insufficient to identify the claims made from them. The distribution of the characteristics of the individuals in the states will be endogenous, and the state average poverty rate will depend on the composition of the individuals in the state as well as on the economic impact of being in that state per se. In this paper, we set out a simple model with endogenous transitions to make our point, and apply this to Family Expenditure Survey data for Britain. We show that our argument has empirical content for Britain.<br>Classification-JEL: D31, I32, J12<br>Handle: RePEc:ifs:fistud:v:27:y:2006:i:1:p:75-98<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Joel Slemrod<br>Author-X-Name-First: Joel<br>Author-X-Name-Last:  Slemrod<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Taxation and Big Brother: information, personalisation and privacy in 21st century tax policy<br>Journal: Fiscal Studies<br>Pages: 1-15<br>Issue: 1<br>Volume: 27<br>Year: 2006<br>Month: March    <br>Abstract: I view part of my responsibility as to report on fiscal developments in the United States. Any report from the States would have to note that the past several weeks have been tumultuous, what with the nomination and hearings regarding a new Chief Justice of the Supreme Court and the devastating Hurricane Katrina. On the fiscal front, we are awaiting the report of the President's Advisory Panel on Federal Tax Reform, which is expected to outline one or more income tax reform options and at least one consumption tax alternative as a replacement for the income tax.</p>
<p>I will try here to touch on all of these developments. I shall begin with the nomination of John Roberts to be the Chief Justice of the Supreme Court. You may be interested to know that Roberts wrote his undergraduate thesis at Harvard about British politics, about the fate, a century ago, of the British Liberal Party which, after winning a landslide victory in 1906, never won another general election. His thesis was that politicians, and judges for that matter, should be wary of the assumption that the future will be little more than an extension of things as they are today.<br>Classification-JEL: H20<br>Handle: RePEc:ifs:fistud:v:27:y:2006:i:1:p:1-15<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name: Christian Dustmann<br>Author-X-Name-First: Christian<br>Author-X-Name-Last: Dustmann<br>Author-Email: c.dustmann@ucl.ac.uk<br>Author-Workplace-Name: Institute for Fiscal Studies and University College London<br>Author-Name:  Francesca Fabbri<br>Author-X-Name-First: Francesca<br>Author-X-Name-Last:  Fabbri<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Immigrants in the British labour market<br>Journal: Fiscal Studies<br>Pages: 423�470<br>Issue: 4<br>Volume: 26<br>Year: 2005<br>Month: December <br>Abstract: The main objective of this paper is to provide a comprehensive description of the economic outcomes and performance of Britain's immigrant communities today and over the last two decades. We distinguish between males and females and, where possible and meaningful, between immigrants of different origins. Our comparison group is white British-born individuals. Our data source is the British Labour Force Survey. We first provide descriptive information on the composition of immigrants in Britain, and how this has changed over time, their socio-economic characteristics, their industry allocation and their labour market outcomes. We then investigate various labour market performance indicators (labour force participation, employment, wages and self-employment) for immigrants of different origins, and compare them with British-born whites of the same age, region and other background characteristics. We find that over the last 20 years, Britain's immigrant population has changed in origin composition and has dramatically improved in skill composition נnot dissimilar from the trend in the British-born population. We find substantial differences in economic outcomes between white and ethnic minority immigrants. Within these groups, immigrants of different origins differ considerably with respect to their education and age structure, their regional distribution and their sector choice. In general, white immigrants are more successful in Britain, although there are differences between groups of different origins. The investigation shows that immigrants from some ethnic minority groups, and in particular females, are particularly disadvantaged, with Pakistanis and Bangladeshis at the lower end of this scale.<br>Classification-JEL: J15<br>Handle: RePEc:ifs:fistud:v:26:y:2005:i:4:p:423�470<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Johannes Becker<br>Author-X-Name-First: Johannes<br>Author-X-Name-Last:  Becker<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Clemens Fuest<br>Author-X-Name-First: Clemens<br>Author-X-Name-Last:  Fuest<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Does Germany collect revenue from taxing the normal return to capital?<br>Journal: Fiscal Studies<br>Pages: 491�511<br>Issue: 4<br>Volume: 26<br>Year: 2005<br>Month: December <br>Abstract: A widespread objection to the introduction of consumption tax systems claims that this would lead to high tax revenue losses. This paper investigates the revenue effects of a consumption tax reform in Germany. Our results suggest that the revenue losses would be surprisingly low. We find a maximum revenue loss of 1.6 per cent of annual GDP. In some years, we even find tax revenue gains. This implies that the current tax system collects little revenue from taxing the normal return to capital. Based on these results, we calculate a macroeconomic measure of the effective tax rate on capital income.<br>Classification-JEL: H25, H21<br>Handle: RePEc:ifs:fistud:v:26:y:2005:i:4:p:491�511<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  David McCarthy<br>Author-X-Name-First: David<br>Author-X-Name-Last:  McCarthy<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Anthony Neuberger<br>Author-X-Name-First: Anthony<br>Author-X-Name-Last:  Neuberger<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Pricing pension insurance: the proposed levy structure for the Pension Protection Fund<br>Journal: Fiscal Studies<br>Pages: 471�489<br>Issue: 4<br>Volume: 26<br>Year: 2005<br>Month: December <br>Abstract: The UK Pension Protection Fund (PPF), established by the 2004 Pensions Act to protect beneficiaries of defined benefit pension schemes when the sponsor becomes insolvent and the scheme is underfunded, is required to finance itself through a levy on participating schemes. In July 2005, the PPF issued a consultative document setting out its proposal for the structure of the levy. In this paper, we provide a critique of the proposal and, in particular, its heavy reliance on securing levy income from the weakest schemes. We propose an alternative structure for the levy that recognises the limits on capacity to pay and also mitigates some other undesirable features of the proposal.<br>Classification-JEL: G18, G23, G28<br>Handle: RePEc:ifs:fistud:v:26:y:2005:i:4:p:471�489<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Juan Prieto-Rodriguez<br>Author-X-Name-First: Juan<br>Author-X-Name-Last:  Prieto-Rodriguez<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Desiderio Romero-Jord&aacute;n<br>Author-X-Name-First: Desiderio<br>Author-X-Name-Last:  Romero-Jord&aacute;n<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Jos&eacute; Felix Sanz-Sanz<br>Author-X-Name-First: Jos&eacute;<br>Author-X-Name-Last:  Sanz-Sanz<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Is a tax cut on cultural goods consumption actually desirable? A microsimulation analysis applied to Spain<br>Journal: Fiscal Studies<br>Pages: 549�575<br>Issue: 4<br>Volume: 26<br>Year: 2005<br>Month: December <br>Abstract: Proposals for tax cuts on cultural goods represent an ongoing debate in cultural policy. The main aim of this paper is to shed some light on this debate using microsimulation tools. First, we have estimated an Almost Ideal Demand System for 19 different groups of goods, including cultural goods. Expenditure and price elasticities have been obtained from this model. Using this information, three alternative cuts in the VAT rate on cultural goods have been microsimulated and evaluated in terms of revenue and welfare. These types of fiscal reforms will lead to welfare and efficiency gains that can be described as regressive.<br>Classification-JEL: D12, H23, H31, Z10<br>Handle: RePEc:ifs:fistud:v:26:y:2005:i:4:p:549�575<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name: Alissa Goodman<br>Author-X-Name-First: Alissa<br>Author-X-Name-Last: Goodman<br>Author-Email: a.goodman@ifs.org.uk<br>Author-Workplace-Name: Institute for Fiscal Studies<br>Author-Name: Barbara Sianesi<br>Author-X-Name-First: Barbara<br>Author-X-Name-Last: Sianesi<br>Author-Email: b.sianesi@ifs.org.uk<br>Author-Workplace-Name: Institute for Fiscal Studies<br>Title: Early education and children's outcomes: low long do the impacts last?<br>Journal: Fiscal Studies<br>Pages: 513-548<br>Issue: 4<br>Volume: 26<br>Year: 2005<br>Month: December <br>Abstract: &lt;p&gt;We evaluate the effects of undergoing any early education (before the compulsory starting age of 5) and of pre-school on a cohort of British children born in 1958. In contrast to most available studies, we are able to assess whether any effects on cognition and socialisation are long-lasting, as well as to estimate their net impact on subsequent educational attainment and labour market performance. Controlling for a particularly rich set of child, parental, family and neighbourhood characteristics, we find some positive and long-lasting effects from early education. Specifically, pre-compulsory education (preschool or school entry prior to age 5) was found to yield large improvements in cognitive tests at age 7, which, though diminished in size, remained significant throughout the schooling years, up to age 16. By contrast, attendance of pre-school (nursery or playgroup) was found to yield a positive but short-lived impact on test scores. The effects on socialisation appear to be more mixed: we found some positive, though short-lasting, effects of pre-compulsory education on teachers' reports of social adjustment (only at age 7); on the other hand, we found some adverse behavioural effects according to parental reports at age 7 which persisted up to age 11. In adulthood, pre-compulsory education was found to increase the probabilities of obtaining qualifications and of being employed at age 33. For both pre-compulsory education and pre-school per se, we found evidence of a marginally significant 30 per cent wage gain at age 33. &lt;/p&gt;<br>Classification-JEL: I20, I21, I28, I38, J13, J31<br>Handle: RePEc:ifs:fistud:v:26:y:2005:i:4:p:513-548<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name: Mark Armstrong<br>Author-X-Name-First: Mark<br>Author-X-Name-Last: Armstrong<br>Author-Email: mark.armstrong@ucl.ac.uk<br>Author-Workplace-Name: Institute for Fiscal Studies and University College London<br>Title: Public service broadcasting<br>Journal: Fiscal Studies<br>Pages: 281-299<br>Issue: 3<br>Volume: 26<br>Year: 2005<br>Month: September<br>Abstract: &lt;p&gt;This essay discusses the merits of public intervention in the provision of television broadcasting services. I argue that intervention was justified in the past, when there were just a few channels and when advertising was the sole source of commercial funds. However, the advent of subscription television overcomes many of the market failures that once existed. Moreover, asymmetric treatment of broadcasters acts to distort the incentives of commercial broadcasters. Finally, viewers have an increasing ability to avoid unappealing, but perhaps socially desirable, content, which further weakens the case for public intervention in the market.&lt;/p&gt;<br>Classification-JEL: D62, L15, L33, L82<br>Handle: RePEc:ifs:fistud:v:26:y:2005:i:3:p:281-299<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Dan Stegarescu<br>Author-X-Name-First: Dan<br>Author-X-Name-Last:  Stegarescu<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Public sector decentralisation: measurement concepts and recent international trends<br>Journal: Fiscal Studies<br>Pages: 301-333<br>Issue: 3<br>Volume: 26<br>Year: 2005<br>Month: September<br>Abstract: &lt;p&gt;This paper deals with the problems encountered in defining and meas-uring the degree of fiscal decentralisation. Drawing on a recent ana-lytical framework of the OECD, different measures of tax autonomy and revenue decentralisation are presented which consider the tax-raising powers of sub-central governments. Taking account of changes in the assignment of decision-making competencies over the course of time, new time series of annual data on the degree of fiscal decentrali-sation are provided for 23 OECD countries over the period between 1965 and 2001. It is shown that common measures usually employed tend to overestimate the extent of fiscal decentralisation considerably. Evidence is also provided of increasing fiscal decentralisation in a ma-jority of OECD countries during the last three decades.Drawing on a recent analytical framework of the OECD, different measures of tax autonomy and revenue decentralisation are presented which consider the tax-raising powers of sub-central governments. Taking account of changes in the assignment of decision-making competencies over the course of time, new time series of annual data on the degree of fiscal decentralisation are provided for 23 OECD countries over the period between 1965 and 2001. It is shown that common measures usually employed tend to overestimate the extent of fiscal decentralisation considerably. Evidence is also provided of increasing fiscal decentralisation in a majority of OECD countries during the last three decades.&lt;/p&gt;<br>Classification-JEL: H71, H72, H77<br>Handle: RePEc:ifs:fistud:v:26:y:2005:i:3:p:301-333<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Reamonn Lydon<br>Author-X-Name-First: Reamonn<br>Author-X-Name-Last:  Lydon<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name: Ian Walker<br>Author-X-Name-First: Ian<br>Author-X-Name-Last: Walker<br>Author-Email: ian.walker@lancaster.ac.uk<br>Author-Workplace-Name: Institute for Fiscal Studies and Lancaster University<br>Title: Welfare to work, wages and wage growth<br>Journal: Fiscal Studies<br>Pages: 335-370<br>Issue: 3<br>Volume: 26<br>Year: 2005<br>Month: September<br>Abstract: &lt;p&gt;This paper attempts to uncover the effects of a UK welfare-to-work programme on individual wage growth by exploiting an expansion to this welfare programme. The conventional wisdom is that such programmes trap recipients into low-wage, low-quality work &Ouml;&nbsp;this comes from the simple argument that the &Ntilde;&deg;overty trap&Ograve;&not; which a wage sub-sidy for low-income workers induces, reduces the benefits to invest-ments, such as on-the-job training, and so reduces wage growth. In fact, a wage subsidy will also reduce the costs of, at least, general training because we would normally expect workers to pay for their own general training in the form of lower gross wages. So a wage subsidy is a way of sharing these costs with the taxpayer. Thus, the net effect on wage progression depends on whether it reduces costs by more or less than it reduces the benefits.&lt;/p&gt;&lt;/p&gt;&lt;p&gt;&lt;p&gt;The paper uses Labour Force Survey panel data to look at wage growth in the UK before and after working families' tax credit (WFTC) replaced family credit (FC). We exploit non-linearities in the programme and, overall, we find that wage growth for those on WFTC exceeded wage growth for those on FC. This is particularly the case for individuals receiving the maximum amount of the credit in both the FC and WFTC periods.&lt;/p&gt;<br>Classification-JEL: J30, I38<br>Handle: RePEc:ifs:fistud:v:26:y:2005:i:3:p:335-370<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Giacomo de Giorgi<br>Author-X-Name-First: Giacomo<br>Author-X-Name-Last:  Giorgi<br>Author-Email: <br>Author-Workplace-Name:<br>Title: The New Deal for Young People five years on<br>Journal: Fiscal Studies<br>Pages: 371-383<br>Issue: 3<br>Volume: 26<br>Year: 2005<br>Month: September<br>Abstract: &lt;p&gt;&lt;p&gt;The New Deal for Young People is the major welfare-to-work pro-gramme in the UK. It is a mandatory multistage policy targeted at 18- to 24-year-old unemployed people. This paper investigates the long-term effectiveness of the programme in terms of enhancing the (re-)employment probability of participating men. It exploits the eligibility rule to identify a suitable counterfactual relying upon a simple regression discontinuity design. The combination of job-search assistance, training, wage subsidies and job experience enhances employability by about 4.6 per cent and this effect lasts over different cohorts.&lt;/p&gt;&lt;/p&gt;<br>Classification-JEL: J18, J23, J68<br>Handle: RePEc:ifs:fistud:v:26:y:2005:i:3:p:371-383<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Hakan Berument<br>Author-X-Name-First: Hakan<br>Author-X-Name-Last:  Berument<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Eray M. Yucel<br>Author-X-Name-First: Eray<br>Author-X-Name-Last:  Yucel<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Return and maturity relationships for treasury auctions: evidence from Turkey<br>Journal: Fiscal Studies<br>Pages: 385-419<br>Issue: 3<br>Volume: 26<br>Year: 2005<br>Month: September<br>Abstract: &lt;p&gt;The relationship between the interest rate and the maturity of newly issued bonds provides information on the debt dynamics of an economy as well as on the sustainability of its debt. Such information is crucial especially for countries that have debt-rollover concerns due to financial stress and/or macroeconomic instability. This study investigates the relationship between treasury auction maturity, which also dictates the debt maturity, and auction interest rates. When the Turkish treasury auction data from 1988 to 2004 are analysed, a reciprocal linkage between auction interest rates and maturities can be observed, especially for the 1995-2000 period, when there were chronic high inflation, high political uncertainty, high public deficits and unsuc-cessful attempts at stabilisation. This suggests that under an adverse shock, the Treasury decreases the auction maturity in order not to in-crease interest rates too much. A change in this reciprocal relationship is also reported for the post-2001 era, which is characterised by decreasing inflation, higher political stability, lower public deficits and successful stabilisation attempts.&lt;/p&gt;<br>Classification-JEL: C51, H60, H63<br>Handle: RePEc:ifs:fistud:v:26:y:2005:i:3:p:385-419<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  John W. Sawkins<br>Author-X-Name-First: John<br>Author-X-Name-Last:  Sawkins<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Valerie A. Dickie<br>Author-X-Name-First: Valerie<br>Author-X-Name-Last:  Dickie<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Affordability of household water and sewerage services in Great Britain<br>Journal: Fiscal Studies<br>Pages: 225-244<br>Issue: 2<br>Volume: 26<br>Year: 2005<br>Month: June     <br>Abstract: This paper analyses the problem of water affordability in Great Britain. The use and meaning of the term 'affordability' are discussed in relation to the domestic or household customers of the British water industry. Using microeconomic data from the Family Resources Survey, affordability is calibrated by income group and household composition for Scotland, England and Wales. Whilst measurement or calibration is the primary focus of the paper, the related question of the way in which an affordability threshold or benchmark might be established is considered. A critique of the various financial support mechanisms currently available to households encountering difficulties in paying water and sewerage charges is followed by a discussion of the policy implications of the research and the way in which it relates to the wider social inclusion agenda of central government.<br>Classification-JEL: L95, L98<br>Handle: RePEc:ifs:fistud:v:26:y:2005:i:2:p:225-244<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  David McCarthy<br>Author-X-Name-First: David<br>Author-X-Name-Last:  McCarthy<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Anthony Neuberger<br>Author-X-Name-First: Anthony<br>Author-X-Name-Last:  Neuberger<br>Author-Email: <br>Author-Workplace-Name:<br>Title: The Pension Protection Fund<br>Journal: Fiscal Studies<br>Pages: 139-167<br>Issue: 2<br>Volume: 26<br>Year: 2005<br>Month: June     <br>Abstract: We develop a model of the Pension Protection Fund (PPF), a defined benefit pension guarantee system for the UK, based on an analogy between pension liabilities and corporate debt obligations. We show that the PPF is likely to face many years of low claims interspersed irregularly with periods of very large claims. There is a significant chance that these claims will be so large that the PPF will default on its liabilities, leaving the government with no option but to bail it out. The cause of this problem is the double impact of a fall in equity prices on the PPF: it makes sponsor firms more likely to default and it makes defaulted plans more likely to be underfunded. We use our model to derive a fair premium for PPF insurance under different circumstances, to estimate the extent of cross-subsidies in the PPF between strong and weak sponsors, and to show that risk-rated premiums are unlikely to have a substantial effect on either the size or the lumpiness of claims. We argue that for the PPF to operate effectively, it should be introduced in tandem with strong minimum funding requirements and a lower level of benefit guarantee than at present.<br>Classification-JEL: G13, G22, G23, G28, J26<br>Handle: RePEc:ifs:fistud:v:26:y:2005:i:2:p:139-167<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Julia Darby<br>Author-X-Name-First: Julia<br>Author-X-Name-Last:  Darby<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  V. Anton Muscatelli<br>Author-X-Name-First: V.<br>Author-X-Name-Last:  Muscatelli<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Graeme Roy<br>Author-X-Name-First: Graeme<br>Author-X-Name-Last:  Roy<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Fiscal consolidation and decentralisation: a tale of two tiers<br>Journal: Fiscal Studies<br>Pages: 169-195<br>Issue: 2<br>Volume: 26<br>Year: 2005<br>Month: June     <br>Abstract: This paper contributes to the established literature on fiscal consolidations by investigating the distinct behaviour of central and sub-central tiers of government during general government consolidation attempts. In the light of different degrees of decentralisation across OECD countries, and the different responsibilities devolved to sub-central tiers, we believe that this approach offers an illuminating insight into the analysis of fiscal consolidations and their success.</p>

<p>We show that the involvement of the sub-central tiers of government is crucial to achieving cuts in expenditure, particularly in relation to the overall size of the government wage bill. In addition, central governments appear to exert a strong influence on the expenditure of sub-central tiers through their grant allocations, and control of these allocations appears to have a considerable impact upon the overall success of consolidation attempts. Finally, we demonstrate that there is a skewness in cuts towards sub-central capital expenditure both when central governments cut grant allocations and when sub-central governments engage in lone consolidation attempts.<br>Classification-JEL: E62, E65, H77, H11<br>Handle: RePEc:ifs:fistud:v:26:y:2005:i:2:p:169-195<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  David J. Evans<br>Author-X-Name-First: David<br>Author-X-Name-Last:  Evans<br>Author-Email: <br>Author-Workplace-Name:<br>Title: The elasticity of marginal utility of consumption: estimates for 20 OECD countries<br>Journal: Fiscal Studies<br>Pages: 197-224<br>Issue: 2<br>Volume: 26<br>Year: 2005<br>Month: June     <br>Abstract: In social project appraisal, the policy profile of both distributional welfare weights and the social discount rate has risen considerably in recent years. This fact has important implications for the allocation of funds to social projects and policies in countries, and in unions of countries such as the EU. A key component in the formulae for both welfare weights and the social discount rate is the elasticity of marginal utility of consumption, e. A critical review of existing evidence on e suggests that the UK Treasury's preferred value of unity is too low. New evidence presented in this paper, based on the structure of personal income tax rates, suggests that, on average, for developed countries e is close to 1.4. This particular approach to the estimation of e has previously been under-utilised by researchers.<br>Classification-JEL: D60, D61, H24, R13<br>Handle: RePEc:ifs:fistud:v:26:y:2005:i:2:p:197-224<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Colin Wren<br>Author-X-Name-First: Colin<br>Author-X-Name-Last:  Wren<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Regional grants: are they worth it?<br>Journal: Fiscal Studies<br>Pages: 245-275<br>Issue: 2<br>Volume: 26<br>Year: 2005<br>Month: June     <br>Abstract: Regional grants have recently come under scrutiny and are controversial. Some estimates put the employment effect of these grants at no more than 6,000 jobs in the first half of the 1990s, against expenditure of �500 million. Other aspects of the grants are questioned, such as their ability to attract foreign direct investment and their effect on productivity. This paper reviews these issues, focusing on the recent evidence for the Regional Selective Assistance scheme. It describes the nature and difficulties involved in policy evaluation, and finds that differences over the employment effect of the grants result from possible biases induced by the evaluation methodology and from differences in the job measure used. Overall, the paper argues that the regional grants are cost-effective in employment terms, but that expenditure is small relative to the scale of the problem, so that an expansion of the grants may be desirable.<br>Classification-JEL: O2, H2, R0<br>Handle: RePEc:ifs:fistud:v:26:y:2005:i:2:p:245-275<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name: Orazio Attanasio<br>Author-X-Name-First: Orazio<br>Author-X-Name-Last: Attanasio<br>Author-Email: o.attanasio@ucl.ac.uk<br>Author-Workplace-Name: Institute for Fiscal Studies and University College London<br>Author-Name: Alice Mesnard<br>Author-X-Name-First: Alice<br>Author-X-Name-Last: Mesnard<br>Author-Email: a.mesnard@ifs.org.uk<br>Author-Workplace-Name: Institute for Fiscal Studies<br>Title: The impact of a conditional cash transfer programme on consumption in Colombia<br>Journal: Fiscal Studies<br>Pages: <br>Issue: <br>Volume: <br>Year: 2005<br>Month: April    <br>Abstract: <em class="bold">Abstract:</em> We estimate the impact on consumption of a large welfare programme in Colombia, Familias en Acci&oacute;n. Our best estimate of the effect takes into account pre-existing differences between treatment and control areas and controls for a wide range of observable characteristics that are likely to affect household consumption.</p> 

<p><em class="bold">Main findings:</em> The impact of the programme on household consumption is large both in rural and urban areas at around 15% of total consumption, most of which is devoted to food. Moreover, cash transfer is spent on "desirable" goods (nutrient-rich food, healthcare and education) and has no significant effect on consumption of "undesirable" goods such as alcohol and tobacco. Consumption of other goods for adults, such as clothes and footwear, has not increased significantly; on the other hand, consumption of footwear and clothes for children has increased. This indicates that the programme benefits children rather than other members of the household.<br>File-URL: http://www.ifs.org.ukhttp://www.ifs.org.uk/edepo/rs_fam02.pdf<br>File-Format: application/pdf<br>File-Size: 181<br>Handle: RePEc:ifs:fistud:v::y:2005:i::p:<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  David A. Wise<br>Author-X-Name-First: David<br>Author-X-Name-Last:  Wise<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Facing the age wave and economic policy: fixing public pension systems with healthcare in the wings<br>Journal: Fiscal Studies<br>Pages: 5-34<br>Issue: 1<br>Volume: 26<br>Year: 2005<br>Month: April    <br>Abstract: &lt;p&gt;&lt;p&gt;&lt;p&gt;There are two overriding problems faced by ageing societies. One is the financing of public pension (social security in US terms) programmes. The other is paying for healthcare. This paper considers the healthcare issue briefly, emphasising that the issue arises primarily because of advances in medical technology. Better medical technology will improve healthcare in the future, but more advanced technologies also cost more. The focus of the rest of the paper is on the public pension problem. The emphasis is on the early retirement incentives inherent in the provisions of most public pension programmes around the world, the reduction in the labour force participation of older people caused by these incentives, and the large fiscal implication of the inducement of older people to leave the labour force. These results are based on the GruberWise ongoing international social security comparison project.&lt;/p&gt;&lt;/p&gt;&lt;/p&gt;<br>Classification-JEL: J14, J26, H55<br>Handle: RePEc:ifs:fistud:v:26:y:2005:i:1:p:5-34<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Frances Cairncross<br>Author-X-Name-First: Frances<br>Author-X-Name-Last:  Cairncross<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Pension reform and the welfare of pensioners<br>Journal: Fiscal Studies<br>Pages: 1-3<br>Issue: 1<br>Volume: 26<br>Year: 2005<br>Month: March    <br>Abstract: &lt;p&gt;With extraordinarily good timing, the Economics section of the British Association, meeting in Exeter in September 2004, chose to look at pension reform. The newspapers were full of stories about the forthcoming Turner Report on pension reform. At the event, which was organised by Richard Blundell, President of the Economics section in 2004 and Director of the ESRC Centre for the Microeconomic Analysis of Public Policy at the Institute for Fiscal Studies (IFS), a phalanx of Whitehall officials turned up to listen to the debate. The five papers reprinted in this special edition of Fiscal Studies show the reason: pensions reform is a deeply intractable problem, not just in Britain but in many other countries. These papers explore the problem, but also suggest some possible solutions - all of which require political courage. &lt;/p&gt;<br>Handle: RePEc:ifs:fistud:v:26:y:2005:i:1:p:1-3<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name: Tim Besley<br>Author-X-Name-First: Tim<br>Author-X-Name-Last: Besley<br>Author-Email: t.besley@lse.ac.uk<br>Author-Workplace-Name: Institute for Fiscal Studies and London School of Economics<br>Author-Name:  Andrea Prat<br>Author-X-Name-First: Andrea<br>Author-X-Name-Last:  Prat<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Credible pensions<br>Journal: Fiscal Studies<br>Pages: 119-135<br>Issue: 1<br>Volume: 26<br>Year: 2005<br>Month: March    <br>Abstract: &lt;p&gt;One of the main problems in pension policy is to develop an institutional framework that guarantees that public and private pensions promises are kept. This paper discusses how the governance of public and private pensions is key to making such promises credible. It argues that credibility concerns undermine the case for earnings-related pensions run by the state and private defined benefit plans.&lt;/p&gt;<br>Classification-JEL: G23, H55<br>Handle: RePEc:ifs:fistud:v:26:y:2005:i:1:p:119-135<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name: James Banks<br>Author-X-Name-First: James<br>Author-X-Name-Last: Banks<br>Author-Email: j.banks@ifs.org.uk<br>Author-Workplace-Name: Institute for Fiscal Studies and University of Manchester<br>Author-Name: Richard Blundell<br>Author-X-Name-First: Richard<br>Author-X-Name-Last: Blundell<br>Author-Email: r.blundell@ucl.ac.uk<br>Author-Workplace-Name: Institute for Fiscal Studies and University College London<br>Title: Private pension arrangements and retirement in Britain<br>Journal: Fiscal Studies<br>Pages: 35-53<br>Issue: 1<br>Volume: 26<br>Year: 2005<br>Month: March    <br>Abstract: &lt;p&gt;This paper looks at the policy debate surrounding private pensions and retirement patterns in the UK. Recent increases in longevity have led not only to increased pressures in public pensions but also to corresponding increases in the importance of private pensions in the UK and changes in the way in which they are structured. We consider the economic implications of these changes, and in particular the increased importance of defined contribution plans. In addition, we discuss the prospects for future trends in retirement ages.&lt;/p&gt;&lt;p&gt;&lt;/p&gt;<br>Classification-JEL: D91, H55<br>Handle: RePEc:ifs:fistud:v:26:y:2005:i:1:p:35-53<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name: Richard Disney<br>Author-X-Name-First: Richard<br>Author-X-Name-Last: Disney<br>Author-Email: richard.disney@nottingham.ac.uk<br>Author-Workplace-Name: Institute for Fiscal Studies and University of Nottingham<br>Author-Name: Carl Emmerson<br>Author-X-Name-First: Carl<br>Author-X-Name-Last: Emmerson<br>Author-Email: c.emmerson@ifs.org.uk<br>Author-Workplace-Name: Institute for Fiscal Studies<br>Title: Public pension reform in the United Kingdom: what effect on the financial well-being of current and future pensioners?<br>Journal: Fiscal Studies<br>Pages: 55-81<br>Issue: 1<br>Volume: 26<br>Year: 2005<br>Month: March    <br>Abstract: &lt;p&gt;Unlike many tax and benefit changes, reforms to public pension programmes take many years to have their full effect. This paper examines the effect of reforms to the public pension programme in the United Kingdom on the state retirement incomes of current generations of pensioners and on the prospective state incomes of future generations of pensioners. We show that, for an individual with lifetime earnings close to male average earnings, the UK pension system is at its most generous to those reaching the state pension age around the year 2000, but that the introduction of the state second pension and the pension credit postpones this peak for individuals on lower incomes and for those with substantial periods out of paid employment spent with caring responsibilities. We also consider how the 'mix' of benefits, particularly between the contributory and income-tested sectors, could change over time, and the impact that this would have on incentives to save for retirement.&lt;/p&gt;<br>Classification-JEL: H20, H30, H55<br>Handle: RePEc:ifs:fistud:v:26:y:2005:i:1:p:55-81<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  James Sefton<br>Author-X-Name-First: James<br>Author-X-Name-Last:  Sefton<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Justin van de Ven<br>Author-X-Name-First: Justin<br>Author-X-Name-Last:  Ven<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Martin Weale<br>Author-X-Name-First: Martin<br>Author-X-Name-Last:  Weale<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Means testing and retirement choice in Europe: a comparison of the British and Danish systems<br>Journal: Fiscal Studies<br>Pages: 83-118<br>Issue: 1<br>Volume: 26<br>Year: 2005<br>Month: March    <br>Abstract: &lt;p&gt;We develop a simulation model of household behaviour in which both the consumption/saving and labour/leisure choices are endogenous. This model is used to explore the effects of the UK and Danish state tax and benefit systems on the labour supply of workers aged 50 or over. We find that, in broad terms, differences in labour force participation can be accounted for by differences in benefit structures. Furthermore, our simulations suggest that the UK system is preferred by young people while the Danish arrangement  which imposes a larger tax burden and provides larger welfare benefits  is chosen by people of 50 or older. Notably, people older than 60 are in the majority in the simulated population. The Danish system does not promote notably greater equality over the lifetime, but it does underpin a higher level of consumption for people of 50 or older.&lt;/p&gt;&lt;p&gt;&lt;/p&gt;<br>Classification-JEL: C61, D58, E20, H31, I30<br>Handle: RePEc:ifs:fistud:v:26:y:2005:i:1:p:83-118<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  David Starkie<br>Author-X-Name-First: David<br>Author-X-Name-Last:  Starkie<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Testing the regulatory model: the expansion of Stansted airport<br>Journal: Fiscal Studies<br>Pages: 389-413<br>Issue: 4<br>Volume: 25<br>Year: 2004<br>Month: December <br>Abstract: &lt;p&gt;&lt;p&gt;This paper examines the application of price-cap regulation to the UK airport industry, with particular reference to the expansion of London-Stansted. This expansion is relevant to the debate concerning investment incentives inherent in the RPI-X approach and whether the UK style of regulation encourages the 'sweating of assets' at the expense of new investment. Stansted's expansion also suggests a willingness of the authorities to accept the leveraging of market power in pursuit of perceived public-interest goals; it provides an insight into the behaviour of economic agents when capital market disciplines are mute; and it illustrates some unintended consequences that can follow from market intervention.&lt;/p&gt;&lt;/p&gt;<br>Classification-JEL: L51, L93, L97, R48<br>Handle: RePEc:ifs:fistud:v:25:y:2004:i:4:p:389-413<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name: Michael Devereux<br>Author-X-Name-First: Michael<br>Author-X-Name-Last: Devereux<br>Author-Email: michael.devereux@sbs.ox.ac.uk<br>Author-Workplace-Name: Institute for Fiscal Studies and University of Oxford<br>Author-Name: Rachel Griffith<br>Author-X-Name-First: Rachel<br>Author-X-Name-Last: Griffith<br>Author-Email: r.griffith@ifs.org.uk<br>Author-Workplace-Name: Institute for Fiscal Studies and University of Manchester<br>Author-Name: Alexander Klemm<br>Author-X-Name-First: Alexander<br>Author-X-Name-Last: Klemm<br>Author-Email: <br>Author-Workplace-Name: Institute for Fiscal Studies<br>Title: Why has the UK corporation tax raised so much revenue?<br>Journal: Fiscal Studies<br>Pages: 367-388<br>Issue: 4<br>Volume: 25<br>Year: 2004<br>Month: December <br>Abstract: &lt;p&gt;&lt;p&gt;We analyse a puzzle in the UK corporation tax: by both historic and international standards, corporation tax revenues have been high while the statutory rate has been reduced. We consider explanations based on changes in the tax law and in economic factors. Changes in the tax law, such as base-broadening measures through reductions in capital allowances, can explain only part of the puzzle. Among the economic explanations, an increase in the size of the corporate sector, mainly caused by expansion of the service sector and improvements in profitability of the financial sector, seems the most likely. To the extent that higher profits, particularly financial sector profits, may have led to high revenues, there are doubts as to whether revenues will continue to be so strong.&lt;/p&gt;&lt;/p&gt;<br>Classification-JEL: H25<br>Handle: RePEc:ifs:fistud:v:25:y:2004:i:4:p:367-388<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Margerita Borella<br>Author-X-Name-First: Margerita<br>Author-X-Name-Last:  Borella<br>Author-Email: <br>Author-Workplace-Name:<br>Title: The distributional impact of pension system reforms: an application to the Italian case<br>Journal: Fiscal Studies<br>Pages: 415-437<br>Issue: 4<br>Volume: 25<br>Year: 2004<br>Month: December <br>Abstract: &lt;p&gt;&lt;p&gt;Between 1992 and 1995, the Italian pension system was deeply reformed, and it is now moving from an earnings-related to a contribution-based scheme. The pre-1992 system was generous and redistributive; however, often redistribution operated from the poor to the rich, notably because the benefit formula was based on the last years of earnings, thus benefiting workers with steep earnings profiles. The new contribution-based scheme may enhance equity by removing (some of) the inequities implicit in the previous system.&lt;/p&gt;&lt;/p&gt;&lt;p&gt;&lt;/p&gt;&lt;p&gt;&lt;p&gt;Simulations calibrated on Italian male employees show that the contribution-based scheme reduces inequality among all groups considered, with the exception of college graduates employed in the private sector. When taking into account the average level of the benefit as well as its distribution, the analysis shows mixed results depending on the worker's number of years of contribution and on their retirement age, as well as on the steepness of their earnings profile.&lt;/p&gt;&lt;/p&gt;<br>Classification-JEL: D31, H55<br>Handle: RePEc:ifs:fistud:v:25:y:2004:i:4:p:415-437<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  David King<br>Author-X-Name-First: David<br>Author-X-Name-Last:  King<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Matthew Pashley<br>Author-X-Name-First: Matthew<br>Author-X-Name-Last:  Pashley<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Rob Ball<br>Author-X-Name-First: Rob<br>Author-X-Name-Last:  Ball<br>Author-Email: <br>Author-Workplace-Name:<br>Title: An English assessment of Scotland's education spending needs<br>Journal: Fiscal Studies<br>Pages: 439-466<br>Issue: 4<br>Volume: 25<br>Year: 2004<br>Month: December <br>Abstract: &lt;p&gt;&lt;p&gt;Scotland has much higher public expenditure per head than England, but little work has been done to compare Scottish and English needs. We compare their needs for school education, and we show that if the Formula Spending Share approach that is used to estimate English local authorities needs were applied in Scotland, then Scotland would be found to need about 3 per cent more per pupil than England; however, this English approach may slightly underestimate Scotland's needs. We also show that the Grant Aided Expenditure approach that is actually used to estimate Scottish local authorities' needs may be about 7 per cent more generous than the English approach. Finally, we find that the correlation between the relative education needs for different authorities as assessed by the Scottish approach and their relative needs as assessed by the English approach is only modest; this implies that there may be serious shortcomings in at least one approach.&lt;/p&gt;&lt;/p&gt;<br>Classification-JEL: H0, H7, R5<br>Handle: RePEc:ifs:fistud:v:25:y:2004:i:4:p:439-466<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Michael Spackman<br>Author-X-Name-First: Michael<br>Author-X-Name-Last:  Spackman<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Time discounting and of the cost of capital in government<br>Journal: Fiscal Studies<br>Pages: 467-518<br>Issue: 4<br>Volume: 25<br>Year: 2004<br>Month: December <br>Abstract: &lt;p&gt;The literature on public sector discounting has brought important insights, but there remain wide differences on some fundamental issues. This paper reviews the main conflicts and the reasons underlying them. It suggests practical procedures for discounting in government which are consistent with most of the literature but not with the 'efficient market' thesis that financial markets provide all the information needed to define these procedures.&lt;/p&gt;<br>Classification-JEL: D6, D9, H5<br>Handle: RePEc:ifs:fistud:v:25:y:2004:i:4:p:467-518<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  M H Miller<br>Author-X-Name-First: M<br>Author-X-Name-Last:  Miller<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Challenges to demand management<br>Journal: Fiscal Studies<br>Pages: 47-57<br>Issue: 3<br>Volume: 25<br>Year: 2004<br>Month: October  <br>Abstract: &lt;p&gt;In a speech in 1978 Sir Douglas Wass of the British Treasury described how condidently demand management was practised up to the end of the 1960s..&lt;/p&gt;&lt;p&gt;&lt;/p&gt;&lt;p&gt;Now, however, governments are much less confident about the desirability of expanding aggregate demand even when there is considerable unemployment. There are, moreover, many voices crying for fiscal contraction in the UK at the present time when unemployment is high relative to what it was in the 1950s and the 1960s. It would appear that aggregate demand is no longer being set to achieve target levels of employment. What is checking the use of demand management? What are now regarded as the effective constraints on how far output should be expanded?&lt;/p&gt;<br>Handle: RePEc:ifs:fistud:v:25:y:2004:i:3:p:47-57<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Tony Travers<br>Author-X-Name-First: Tony<br>Author-X-Name-Last:  Travers<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Block Grant: Origins, Objects and Use<br>Journal: Fiscal Studies<br>Pages: 11-22<br>Issue: 3<br>Volume: 25<br>Year: 2004<br>Month: October  <br>Abstract: &lt;p&gt;Block grant was introduced by the Local Government, Planning and Land Act 1980. The grant, which is paid for out of central government taxation and borrowing, partially equalises between local authorities' different rateable values and between a government measure of their spending needs. In addition, it subsidises rates generally. It replaced the 'needs' and 'resources' elements of the Rate Support Grant (RSG), whihc had operated, with occasional modification, since 1958. Attempts to equalise between authorities' different rateable resources and spending needs have been made since the late nineteenth century. This paper looks at the origins of and recent economic background to block grant. Two distinct phases emerge in this analysis: the early search for improvements to local government finance in general and the grant system in particular, followed by a later desire to reduce local authority spending by manipulation of the RSG.&lt;/p&gt;<br>Handle: RePEc:ifs:fistud:v:25:y:2004:i:3:p:11-22<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  R. Hemming<br>Author-X-Name-First: R.<br>Author-X-Name-Last:  Hemming<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  J. A. Kay<br>Author-X-Name-First: J.<br>Author-X-Name-Last:  Kay<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Real rates of return<br>Journal: Fiscal Studies<br>Pages: 15-25<br>Issue: 3<br>Volume: 25<br>Year: 2004<br>Month: October  <br>Abstract: &lt;p&gt;It is widely recognised that the real rates of return which have been earned on most financial assets in the UK in recent years have been negative-the yield on investments has not been high enough to compensate for the erosion of capital values through inflation. There are many purposes for which it is necessary to use estimates of future real rates of return, particularly those concerned with the funding of prospective pensions. Yet despite this adverse recent experience, there is a general reluctance to contemplate the possibility of negative real returns in furture, and to consider the provisions which would be needed if the future were in this respect like the past.&lt;/p&gt;<br>Handle: RePEc:ifs:fistud:v:25:y:2004:i:3:p:15-25<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Willem H. Buiter<br>Author-X-Name-First: Willem<br>Author-X-Name-Last:  Buiter<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Two Naked Emperors? Concerns about the Stability &amp; Growth Pact and Second Thoughts about Central Bank Independence<br>Journal: Fiscal Studies<br>Pages: 249-277<br>Issue: 3<br>Volume: 25<br>Year: 2004<br>Month: September<br>Abstract: &lt;p&gt;This paper addresses two sets of issues relevant to current and prospective future E(M)U members: the consequences of the Stability &amp; Growth Pact for fiscal-financial sustainability and macroeconomic stability, and some risks associated with operational independence of the central bank. To be effective as a lender of last resort or to stabilise demand when short nominal interest rates are close to their zero lower bound, the central bank must coordinate and cooperate with the fiscal authorities. Central bank independence is unlikely to survive if such coordination and cooperation are not forthcoming.&lt;/p&gt;<br>Handle: RePEc:ifs:fistud:v:25:y:2004:i:3:p:249-277<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Ruth Hancock<br>Author-X-Name-First: Ruth<br>Author-X-Name-Last:  Hancock<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Stephen Pudney<br>Author-X-Name-First: Stephen<br>Author-X-Name-Last:  Pudney<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Geraldine Barker<br>Author-X-Name-First: Geraldine<br>Author-X-Name-Last:  Barker<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Monica Hernandez<br>Author-X-Name-First: Monica<br>Author-X-Name-Last:  Hernandez<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Holly Sutherland<br>Author-X-Name-First: Holly<br>Author-X-Name-Last:  Sutherland<br>Author-Email: <br>Author-Workplace-Name:<br>Title: The Take-Up of Multiple Means-Tested Benefits by British Pensioners: Evidence from the Family Resources Survey<br>Journal: Fiscal Studies<br>Pages: 279-303<br>Issue: 3<br>Volume: 25<br>Year: 2004<br>Month: September<br>Abstract: &lt;p&gt;Non-take-up of means-tested benefits among pensioners is of long-standing concern. It has assumed increased importance from October 2003 with the introduction of the new means-tested pension credit to which about half of pensioners are expected to be entitled. We use Family Resources Survey data from April 1997 to March 2000 to investigate patterns of pensioner take-up of income support (IS) (subsequently renamed the minimum income guarantee and now subsumed in pension credit), housing benefit (HB) and council tax benefit (CTB). Although 36 per cent of pensioners in our sample failed to claim their entitlements to at least one of these benefits, only 16 per cent failed to claim amounts worth more than 10 per cent of their disposable income. Generally, take-up is high where entitlement is high. But there are exceptions which may reflect the claims process and/or a greater degree of social stigma associated with IS than with HB or CTB. &lt;/p&gt;<br>Classification-JEL: D31, H31, H55, I38<br>Handle: RePEc:ifs:fistud:v:25:y:2004:i:3:p:279-303<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Bruce Bradbury<br>Author-X-Name-First: Bruce<br>Author-X-Name-Last:  Bradbury<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Targeting social assistance<br>Journal: Fiscal Studies<br>Pages: 305-324<br>Issue: 3<br>Volume: 25<br>Year: 2004<br>Month: September<br>Abstract: &lt;p&gt;This paper reviews the normative welfare economic literature on income-based targeting and contrasts its assumptions with those underlying current policy discourse. One current policy debate concerns the potential role for Earned Income Tax Credit (EITC) income tests. In general, economic models within the standard (for economists) &Ntilde;&middot;elfarist' approach provide little support for such policies. However, much policy discourse is explicitly non-welfarist, placing a negative social value on the leisure or home production of the poor. From this perspective, EITC or workfare-type programmes may be socially optimal. The normative foundations of this policy discourse, however, have yet to be subject to the rigorous analysis that underlies the welfarist approach.&lt;/p&gt;<br>Classification-JEL: I3, H21, H31<br>Handle: RePEc:ifs:fistud:v:25:y:2004:i:3:p:305-324<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Gaimpaolo Arachi<br>Author-X-Name-First: Gaimpaolo<br>Author-X-Name-Last:  Arachi<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Alberto Zanardi<br>Author-X-Name-First: Alberto<br>Author-X-Name-Last:  Zanardi<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Designing Intergovernmental Fiscal Relations: Some Insights from the Recent Italian Reform<br>Journal: Fiscal Studies<br>Pages: 325-365<br>Issue: 3<br>Volume: 25<br>Year: 2004<br>Month: September<br>Abstract: &lt;p&gt;During the last decade, the Italian system of intergovernmental fiscal relations has been involved in a radical process of reform that is still under way. The reform has assigned Regions new taxing powers and has introduced a new system of interregional transfers. This paper provides a review of the recent reform and offers some tentative answers to the issues still open, relying on a series of simulations and projections. A number of conclusions have been reached. First, when the long-run performance of the new financing systems is investigated, regional resources may no longer be adequate to meet future health needs. Second, the incentives for active tax policies seem either to prove too weak or even to cause undesirable results. Finally, the complete devolution to the Regions of some significant public expenditure functions risks strengthening the polarisation of financial flows between the Northern and Southern Regions in the long run.&lt;/p&gt;<br>Classification-JEL: H7, H71, H72, H77<br>Handle: RePEc:ifs:fistud:v:25:y:2004:i:3:p:325-365<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name: Steve Machin<br>Author-X-Name-First: Steve<br>Author-X-Name-Last: Machin<br>Author-Email: s.machin@ucl.ac.uk<br>Author-Workplace-Name: Institute for Fiscal Studies and University College London<br>Author-Name:  Anna Vignoles<br>Author-X-Name-First: Anna<br>Author-X-Name-Last:  Vignoles<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Educational inequality: the widening socio-economic gap<br>Journal: Fiscal Studies<br>Pages: 107-128<br>Issue: 2<br>Volume: 25<br>Year: 2004<br>Month: June     <br>Abstract: &lt;p&gt;In this paper, we consider research on links between higher education and family background, focusing particularly on the experiences of two cohorts of individuals born in 1958 and 1970. The findings point to a rise in educational inequality during the period relevant to these two cohorts. Specifically, links between educational achievement and parental income / social class strengthened during this period. Furthermore, a person's actual (measured) ability became a poorer predictor of whether they would get a degree than was previously the case. The expansion of higher education in the UK during this period appears to have disproportionately benefited children from richer families rather than the most able. Furthermore, the labour market success or failure of individuals became more closely connected to their parents' income, revealing a fall in the extent of intergenerational mobility over time.&lt;/p&gt;<br>Handle: RePEc:ifs:fistud:v:25:y:2004:i:2:p:107-128<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name: Tom Clark<br>Author-X-Name-First: Tom<br>Author-X-Name-Last: Clark<br>Author-Email: <br>Author-Workplace-Name: Institute for Fiscal Studies<br>Author-Name: Andrew Leicester<br>Author-X-Name-First: Andrew<br>Author-X-Name-Last: Leicester<br>Author-Email: a.leicester@ifs.org.uk<br>Author-Workplace-Name: Institute for Fiscal Studies and University College London<br>Title: Inequality and two decades of British tax and benefit reform<br>Journal: Fiscal Studies<br>Pages: 129-158<br>Issue: 2<br>Volume: 25<br>Year: 2004<br>Month: June     <br>Abstract: &lt;p&gt;Microsimulation methods are used to identify the contribution of tax and benefit reforms to the significant growth in UK income inequality since 1979. The total effect turns out to depend crucially on the counterfactual against which the reforms are assessed: compared with the alternative of pure price-indexation, the total effect of reform is small; by contrast, compared with a counterfactual in which benefits rose in line with national income (historically the case before 1979), the effect is substantial - approximately half the total rise in income inequality is explained. The impact of reforms on inequality has varied significantly over time: income tax cuts in the late 1970s and late 1980s increased inequality; direct tax rises in the early 1980s and 1990s, together with increases in means-tested benefits in the late 1990s, reduced it. The robustness of the results to sampling variation and to the measure of inequality used is also investigated.&lt;/p&gt;<br>Handle: RePEc:ifs:fistud:v:25:y:2004:i:2:p:129-158<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Robert Fenge<br>Author-X-Name-First: Robert<br>Author-X-Name-Last:  Fenge<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Martin Werding<br>Author-X-Name-First: Martin<br>Author-X-Name-Last:  Werding<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Ageing and the tax implied in public pension schemes: simulations for selected OECD countries<br>Journal: Fiscal Studies<br>Pages: 159-200<br>Issue: 2<br>Volume: 25<br>Year: 2004<br>Month: June     <br>Abstract: &lt;p&gt;A key figure suited to measuring intergenerational imbalances in unfunded public pension schemes is given by the 'implicit tax rate' imposed on each generation's lifetime income. The implicit tax arises from the fact that, quite generally, pension benefits fall short of actuarial returns to contributions paid to these systems while actively working. Under current pension policies, implicit tax rates will increase sharply for younger generations in most industrialised countries. In this paper, this is illustrated for the cases of France, Germany, Italy, Japan, Sweden, the UK and the USA. Nevertheless, there are remarkable differences across countries regarding both the level of implicit taxes and their development over successive age cohorts, which can be attributed to differences in ageing processes and in the institutional features of national pension systems. In addition, we can demonstrate how effective different approaches to pension reform are in smoothing the intergenerational profile of implicit tax rates.&lt;/p&gt;<br>Keywords: public pensions; tax and benefit system; intergenerational profile<br>Handle: RePEc:ifs:fistud:v:25:y:2004:i:2:p:159-200<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Steve McKay<br>Author-X-Name-First: Steve<br>Author-X-Name-Last:  McKay<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Poverty or preference: what do 'consensual deprivation indicators' really mean?<br>Journal: Fiscal Studies<br>Pages: 201-223<br>Issue: 2<br>Volume: 25<br>Year: 2004<br>Month: June     <br>Abstract: &lt;p&gt;Consensual deprivation indicators assume that there is a broad consensus on what goods/services families should be able to afford, and that an inability to afford those items can measure deprivation. Using data from two British surveys in 1999, this paper makes two arguments. First, there is only limited agreement about which items families should be able to afford. Secondly, different social groups are more (or less) likely to say the absence of a 'necessity' is due to choice. Families who cannot afford two or more 'necessities' invariably have a number of 'nonnecessities', often many. Their patterns of preferences (and spending) are not typical and they are choosing to buy other goods &Ouml;&nbsp;through preference rather than poverty. Simply checking whether people lack items for any reason provides results empirically as reliable, but subject to similar criticisms.&lt;/p&gt;<br>Keywords: poverty; deprivation indicators<br>Handle: RePEc:ifs:fistud:v:25:y:2004:i:2:p:201-223<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Georgia Kaplanoglou<br>Author-X-Name-First: Georgia<br>Author-X-Name-Last:  Kaplanoglou<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  David Newbery<br>Author-X-Name-First: David<br>Author-X-Name-Last:  Newbery<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Redistributive impact of indirect tax reforms: Greece, 1988-2002<br>Journal: Fiscal Studies<br>Pages: 225-247<br>Issue: 2<br>Volume: 25<br>Year: 2004<br>Month: June     <br>Abstract: &lt;p&gt;This paper assesses the distributional impact of indirect taxes among Greek households between 1988 and 2002, a period that coincides with the introduction of significant reforms in the tax system due to EU membership. The highly differentiated indirect tax structure prevailing at the beginning of the period had distributional benefits over the more simplified 2002 tax structure. The overall inequality of the after-tax welfare distribution has increased by 6-12&frac12; per cent and changes in the indirect tax system seem to explain about half of this increase. The paper also applies a recent method of measuring the distributional impact of relative price changes caused by changes in tax rates of commodities (Newbery, 1995) and establishes that indirect tax reforms introduced since 1988 had an adverse impact on the distribution of purchasing power, which nevertheless seems to be very small.&lt;/p&gt;<br>Keywords: indirect taxes; distribution; Greece<br>Handle: RePEc:ifs:fistud:v:25:y:2004:i:2:p:225-247<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  John Creedy<br>Author-X-Name-First: John<br>Author-X-Name-Last:  Creedy<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Norman Gemmell<br>Author-X-Name-First: Norman<br>Author-X-Name-Last:  Gemmell<br>Author-Email: <br>Author-Workplace-Name:<br>Title: The Income Elasticity of Tax Revenue: Estimates for Income and Consumption Taxes in the United Kingdom<br>Journal: Fiscal Studies<br>Pages: 55-77<br>Issue: 1<br>Volume: 25<br>Year: 2004<br>Month: March    <br>Abstract: &lt;p&gt;This paper provides estimates of individual and aggregate revenue elasticities of income and consumption taxes in the UK over the period 1989-2000. Its shows how budgetary changes, including changes to income-related deductions, have substantially affected income elasticities. The estimates of consumption tax revenue elasticities show that changes in consumption patterns over time are important. A merit of the approach used here is that elasticity estimates can be calculated readily from official published sources.&lt;/p&gt;<br>Classification-JEL: H24, H30<br>Handle: RePEc:ifs:fistud:v:25:y:2004:i:1:p:55-77<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  David Greenberg<br>Author-X-Name-First: David<br>Author-X-Name-Last:  Greenberg<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Karl Ashworth<br>Author-X-Name-First: Karl<br>Author-X-Name-Last:  Ashworth<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Andreas Cebulla<br>Author-X-Name-First: Andreas<br>Author-X-Name-Last:  Cebulla<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Robert Walker<br>Author-X-Name-First: Robert<br>Author-X-Name-Last:  Walker<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Do Welfare-to-Work Programmes Work for Long?<br>Journal: Fiscal Studies<br>Pages: 27-53<br>Issue: 1<br>Volume: 25<br>Year: 2004<br>Month: March    <br>Abstract: &lt;p&gt;Evidence that welfare-to-work programmes in the USA succeed in boosting welfare recipients' earnings at modest cost has helped shape policy in Britain since 1997. So too has the belief that programmes that prioritise moving people into work quickly are more effective than ones that seek to enhance human capital. However, there is little evidence on how long the beneficial effects of 64 US welfare-to work programmes that have all been evaluated using random assignment. It concludes that, on average, these programmes have a positive effect on participants' earnings for five to six years. The effects of 'work first' interventions are most marked early on the decline more rapidly than those of programmes emphasising human capital. Nevertheless, work first interventions typically increase earnings received over six years by more than two-and-a-half times that achieved by human capitl approaches.&lt;/p&gt;<br>Handle: RePEc:ifs:fistud:v:25:y:2004:i:1:p:27-53<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name: Ian Crawford<br>Author-X-Name-First: Ian<br>Author-X-Name-Last: Crawford<br>Author-Email: Ian.Crawford@economics.ox.ac.uk<br>Author-Workplace-Name: Institute for Fiscal Studies and University of Oxford<br>Author-Name:  Isabella Image<br>Author-X-Name-First: Isabella<br>Author-X-Name-Last:  Image<br>Author-Email: <br>Author-Workplace-Name:<br>Title: The Retail Price Index and the Cost-of-Living Index: testing for consistency in theory and practice<br>Journal: Fiscal Studies<br>Pages: 79-91<br>Issue: 1<br>Volume: 25<br>Year: 2004<br>Month: March    <br>Abstract: &lt;p&gt;This paper tests the published section-level price and weight data used in the compilation of the UK retail price index (RPI) for consistency with the theory of the cost-of-living index. We use a non-parametric test of theoretical consistency and bootstrap statistical methods to estimate the probability of consistency.&lt;/p&gt;<br>Classification-JEL: C4, D12<br>Handle: RePEc:ifs:fistud:v:25:y:2004:i:1:p:79-91<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Sarah Bridges<br>Author-X-Name-First: Sarah<br>Author-X-Name-Last:  Bridges<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name: Richard Disney<br>Author-X-Name-First: Richard<br>Author-X-Name-Last: Disney<br>Author-Email: richard.disney@nottingham.ac.uk<br>Author-Workplace-Name: Institute for Fiscal Studies and University of Nottingham<br>Title: Use of credit and arrears on debt among low-income families in the United Kingdom<br>Journal: Fiscal Studies<br>Pages: 1-25<br>Issue: 1<br>Volume: 25<br>Year: 2004<br>Month: March    <br>Abstract: &lt;p&gt;Household accumulation of debt and arrears on debt, especially among low-income families, is an extremely topical issue in the UK media and in policy circles. This paper utilises data from the UK's Survey of Low Income Families in order to examine use of credit, and default and arrears, among low-income families with children. It shows how credit use and accumulation of arrears differ between single parents and couples with children, and also between homeowners and renters. It also briefly examines the persistence of arrears on specific forms of credit using the panel element of the data-set, now named the Families and Children Survey.&lt;/p&gt;<br>Classification-JEL: D12, D14<br>Handle: RePEc:ifs:fistud:v:25:y:2004:i:1:p:1-25<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Maja Klun<br>Author-X-Name-First: Maja<br>Author-X-Name-Last:  Klun<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Compliance Costs for Personal Income Tax in a Transition Country: The Case of Slovenia<br>Journal: Fiscal Studies<br>Pages: 93-104<br>Issue: 1<br>Volume: 25<br>Year: 2004<br>Month: March    <br>Abstract: &lt;p&gt;The evaluation of taxpayers' compliance costs has grown in significance within tax system research over the last 15 years. In 2001, two surveys of VAT and personal income taxpayers were conducted in Slovenia to evaluate compliance costs for the 2000 fiscal year. This paper presents the results of research into compliance costs for personal income tax in Slovenia. The results show that compliance costs for personal income tax are relatively low, primarily because most taxpayers consider filing their tax declaration to be a simple procedure, which means that consultancy costs are low.&lt;/p&gt;<br>Classification-JEL: H21, H24<br>Handle: RePEc:ifs:fistud:v:25:y:2004:i:1:p:93-104<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Alexy Buck<br>Author-X-Name-First: Alexy<br>Author-X-Name-Last:  Buck<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name: Graham Stark<br>Author-X-Name-First: Graham<br>Author-X-Name-Last: Stark<br>Author-Email: <br>Author-Workplace-Name: Institute for Fiscal Studies<br>Title: Simplicity versus fairness in means testing: the case of civil legal aid<br>Journal: Fiscal Studies<br>Pages: 427-449<br>Issue: 4<br>Volume: 24<br>Year: 2003<br>Month: December <br>Abstract: &lt;p&gt;For most state financial benefits, the making of any payment, or its level, depends upon a means test to assess the applicant's income or wealth. Attempts to make such tests fair often lead to procedures that are complicated to administer and confusing for the applicant. This paper describes the analysis underlying a review of means testing for civil legal aid in England and Wales, to achieve considerable simplification without sacrificing fairness.&lt;/p&gt;<br>Classification-JEL: D61, D63, H53, I31, I38<br>Handle: RePEc:ifs:fistud:v:24:y:2003:i:4:p:427-449<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Ruth Hancock<br>Author-X-Name-First: Ruth<br>Author-X-Name-Last:  Hancock<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Adelina Comas-Herrera<br>Author-X-Name-First: Adelina<br>Author-X-Name-Last:  Comas-Herrera<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Raphael Wittenberg<br>Author-X-Name-First: Raphael<br>Author-X-Name-Last:  Wittenberg<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Linda Pickard<br>Author-X-Name-First: Linda<br>Author-X-Name-Last:  Pickard<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Who Will Pay for Long-Term Care in the UK? Projections Linking Macro- and Micro-Simulation Models <br>Journal: Fiscal Studies<br>Pages: 387-426<br>Issue: 4<br>Volume: 24<br>Year: 2003<br>Month: December <br>Abstract: &lt;p&gt;The long-term care funding system continues to attract much debate in the UK. We produce projections of state and private long-term care expenditure and analyse the distributional impact of state-financed care, through innovative linking of macro- and micro-simulation models. Variant assumptions about life expectancy, dependency and care costs are examined and the impact of universal state-financed ('free') personal care, based on need but not ability to pay, is investigated. We find that future long-term care expenditure is subject to considerable uncertainty and is particularly sensitive to assumed future trends in real input costs. On a central set of assumptions, free personal care would, by 2051, increase public spending on long-term care from 1.1 per cent of GDP to 1.3 per cent, or more if it generated an increase in demand. Among the care-home population aged 85 or over, the immediate beneficiaries of free personal care would be those with relatively high incomes. &lt;/p&gt;<br>Handle: RePEc:ifs:fistud:v:24:y:2003:i:4:p:387-426<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Henry Ohlsson<br>Author-X-Name-First: Henry<br>Author-X-Name-Last:  Ohlsson<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Ownership and Production Costs: Choosing between Public Production and Contracting-Out in the Case of Swedish Refuse Collection <br>Journal: Fiscal Studies<br>Pages: 451-476<br>Issue: 4<br>Volume: 24<br>Year: 2003<br>Month: December <br>Abstract: &lt;p&gt;Many comparisons of public and private firms use a public/private ownership dummy variable to capture cost differences. If, however, public and private firms use different production technologies, the dummy-variable approach is misspecified. Data from public and private firms should not be pooled. Secondly, selectivity bias may arise, making it more difficult to identify cost differentials that actually exist. Thirdly, if data should be pooled, the resulting empirical model may be logically inconsistent. This paper compares public and private firms using the refuse collection costs of 170 firms in 115 Swedish municipalities. First, public production costs were 6 per cent lower than private production costs. Secondly, cost differences did not affect producer choice. It is crucial to adjust for selectivity. Data for private and public firms should not be pooled. The dummy-variable model is misspecified. &lt;/p&gt;<br>Classification-JEL: D24, E22, L32, L33<br>Handle: RePEc:ifs:fistud:v:24:y:2003:i:4:p:451-476<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Henrik Klinge Jacobsen<br>Author-X-Name-First: Henrik<br>Author-X-Name-Last:  Jacobsen<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Katja Birr-Pedersen<br>Author-X-Name-First: Katja<br>Author-X-Name-Last:  Birr-Pedersen<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Mette Wier<br>Author-X-Name-First: Mette<br>Author-X-Name-Last:  Wier<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Distributional Implications of Environmental Taxation in Denmark <br>Journal: Fiscal Studies<br>Pages: 477-499<br>Issue: 4<br>Volume: 24<br>Year: 2003<br>Month: December <br>Abstract: &lt;p&gt;Environmental taxes have been introduced in many countries. However, few countries have reached the level of environmental taxation that is seen in Denmark today. This paper analyses the individual taxes as well as the combination of all these taxes and duties related to environmental concerns, including taxes on heating, transport fuels, electricity, water, waste, plastic bags, registration of cars, annual car use and pesticides.&lt;/p&gt;&lt;/p&gt;&lt;p&gt;&lt;/p&gt;&lt;p&gt;&lt;p&gt;The distributional effect of taxes is examined in relation to household income, socio-economic class, residential location and family status. The shifting of the tax structure from high marginal income tax to consumption-based taxes, especially environmental taxes, might have distributional impacts that have not been considered part of the tax policy.&lt;/p&gt;&lt;/p&gt;&lt;p&gt;&lt;/p&gt;&lt;p&gt;&lt;p&gt;The results suggest that in Denmark taxes on petrol and registration duties for cars are progressive, whereas most other environmental taxes are regressive, especially the green taxes on water, retail containers and CO&lt;sub&gt;2&lt;/sub&gt; emissions. &lt;/p&gt;&lt;p&gt;&lt;/p&gt;<br>Classification-JEL: Q3, Q48, H23, D3<br>Handle: RePEc:ifs:fistud:v:24:y:2003:i:4:p:477-499<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Max Munday<br>Author-X-Name-First: Max<br>Author-X-Name-Last:  Munday<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Michael J. Peel<br>Author-X-Name-First: Michael<br>Author-X-Name-Last:  Peel<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Karl Taylor<br>Author-X-Name-First: Karl<br>Author-X-Name-Last:  Taylor<br>Author-Email: <br>Author-Workplace-Name:<br>Title: The Performance of the Foreign-Owned Sector of UK Manufacturing: Some Evidence and Implications for UK Inward Investment Policy <br>Journal: Fiscal Studies<br>Pages: 501-521<br>Issue: 4<br>Volume: 24<br>Year: 2003<br>Month: December <br>Abstract: &lt;p&gt;This paper analyses the reported performance of foreign-owned manufacturing subsidiaries in the UK between 1994 and 1998. The paper is set in the context of uncertainty about the performance of some foreign-owned sectors of UK manufacturing and the implications of this performance for the beneficial spillover effects sought by policy-makers from foreign-owned capital. Japanese-owned subsidiaries are the focus of particular attention, with reported profits and tax liabilities significantly below those of subsidiaries from other national sources. The wider ramifications of this finding are analysed for the UK case, particularly in terms of the need to take into account the wider exchequer effects of inward investment in the general evaluation of the financial assistance provided to foreign firms. &lt;/p&gt;<br>Classification-JEL: F23, F36, M41<br>Handle: RePEc:ifs:fistud:v:24:y:2003:i:4:p:501-521<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Ulrich Thie&szlig;en<br>Author-X-Name-First: Ulrich<br>Author-X-Name-Last:  Thie&szlig;en<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Fiscal Decentralisation and Economic Growth in High-Income OECD Countries <br>Journal: Fiscal Studies<br>Pages: 237-274<br>Issue: 3<br>Volume: 24<br>Year: 2003<br>Month: September<br>Abstract: &lt;p&gt;Among the majority of high-income OECD countries, the degree of fiscal decentralisation has converged over the last 30 years towards an intermediate level. The theoretical arguments for and against fiscal decentralisation point to explanations for this tendency, because both extreme decentralisation and extreme centralisation are associated with disadvantages for economic growth. Hence, the observed trend of convergence would be growth-promoting. The paper analyses the long-run empirical relationship between per capita economic growth, capital formation and total factor productivity growth, and fiscal decentralisation for the high-income OECD countries. The evidence supports the view that the relationship is positive when fiscal decentralisation is increasing from low levels, but then reaches a peak and turns negative. A policy implication is that policy-makers in several countries with relatively low degrees of fiscal decentralisation could possibly mobilise growth reserves by increasing it. &lt;/p&gt;<br>Classification-JEL: C33, H77, O47<br>Handle: RePEc:ifs:fistud:v:24:y:2003:i:3:p:237-274<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Luisa Affuso<br>Author-X-Name-First: Luisa<br>Author-X-Name-Last:  Affuso<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Julian Masson<br>Author-X-Name-First: Julian<br>Author-X-Name-Last:  Masson<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  David Newbery<br>Author-X-Name-First: David<br>Author-X-Name-Last:  Newbery<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Comparing Investments in New Transport Infrastructure: Roads versus Railways? <br>Journal: Fiscal Studies<br>Pages: 275-315<br>Issue: 3<br>Volume: 24<br>Year: 2003<br>Month: September<br>Abstract: &lt;p&gt;This paper contributes to the debate on investment in transport infrastructure and the allocation of public funds between road and railway projects. We model the two options and provide a consistent framework to appraise investment in typical new inter-urban road and rail projects. Our results suggest that road improvements have substantially higher returns than railway schemes. These findings cast doubt on the rationale of the new transport policy for the UK, which proposes to allocate more public funds to the (private) railways than total new investment in strategic roads. &lt;/p&gt;<br>Classification-JEL: L91, L92, L98, R42, R48<br>Handle: RePEc:ifs:fistud:v:24:y:2003:i:3:p:275-315<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Harry ter Rele<br>Author-X-Name-First: Harry<br>Author-X-Name-Last:  Rele<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Guido van Steen<br>Author-X-Name-First: Guido<br>Author-X-Name-Last:  Steen<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Measuring Housing Subsidies: Distortionary and Distributional Effects in the Netherlands <br>Journal: Fiscal Studies<br>Pages: 317-339<br>Issue: 3<br>Volume: 24<br>Year: 2003<br>Month: September<br>Abstract: &lt;p&gt;&lt;p&gt;This paper measures the distortionary and distributional effects of housing subsidies in the Netherlands. Its broad scope allows us to discuss the results in the light of the main justifications for subsidising housing, i.e. the merit-good argument, external effects and the distribution motive. Our measurements reveal some patterns of subsidisation that seem difficult to justify on these grounds. This applies especially to the differences between subsidisation of rental and owneroccupied housing and between mortgage- and equity-financed ownership. Moreover, the inelastic supply of housing in the Netherlands entails that subsidisation has only a limited effect on promoting housing quality. &lt;/p&gt;&lt;/p&gt;<br>Classification-JEL: D61, D63<br>Handle: RePEc:ifs:fistud:v:24:y:2003:i:3:p:317-339<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Kelly Edmiston<br>Author-X-Name-First: Kelly<br>Author-X-Name-Last:  Edmiston<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Shannon Mudd<br>Author-X-Name-First: Shannon<br>Author-X-Name-Last:  Mudd<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Neven Valev<br>Author-X-Name-First: Neven<br>Author-X-Name-Last:  Valev<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Tax Structures and FDI: The Deterrent Effects of Complexity and Uncertainty <br>Journal: Fiscal Studies<br>Pages: 341-359<br>Issue: 3<br>Volume: 24<br>Year: 2003<br>Month: September<br>Abstract: &lt;p&gt;In this study, we examine the connection between the varied experiences of the transition countries in attracting foreign direct investment (FDI) and their diverse experiences in transforming their tax structures to be consistent with a market economy. In particular, we study whether complexity and uncertainty in their tax laws have deterred FDI by increasing transaction costs, the compliance burden and the unpredictability of tax liabilities. Our results indicate that complexity and uncertainty, in the sense of multiple tax rates, indeterminate language in the tax law and inconsistent changes in the tax laws, have a significant negative effect on inward FDI.&lt;/p&gt;<br>Classification-JEL: H25, F21, F23<br>Handle: RePEc:ifs:fistud:v:24:y:2003:i:3:p:341-359<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Michael Barrow<br>Author-X-Name-First: Michael<br>Author-X-Name-Last:  Barrow<br>Author-Email: <br>Author-Workplace-Name:<br>Title: An Economic Analysis of the UK Landfill Permits Scheme <br>Journal: Fiscal Studies<br>Pages: 361-381<br>Issue: 3<br>Volume: 24<br>Year: 2003<br>Month: September<br>Abstract: &lt;p&gt;The UK will introduce in 2004 a system of tradable permits for the landfill of municipal waste, in response to an EU directive setting limits on such activity. Tradable permits are becoming an increasingly popular method of dealing with some environmental issues &times;&nbsp;for example, sulphur dioxide (SO2) emissions in the USA. This paper describes the background to the landfill proposals and provides an analysis of how the permit system might work. Estimates are made of the possible savings in compliance costs of a permit system compared with a conventional &Ntilde;&pound;ommand&Ouml;&iexcl;nd&Ouml;&pound;ontrol' approach. These estimates are subject to a considerable degree of uncertainty, related to factors discussed in the paper.&lt;/p&gt;<br>Classification-JEL: D00, H23, Q20<br>Handle: RePEc:ifs:fistud:v:24:y:2003:i:3:p:361-381<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name: Carl Emmerson<br>Author-X-Name-First: Carl<br>Author-X-Name-Last: Emmerson<br>Author-Email: c.emmerson@ifs.org.uk<br>Author-Workplace-Name: Institute for Fiscal Studies<br>Author-Name: Matthew Wakefield<br>Author-X-Name-First: Matthew<br>Author-X-Name-Last: Wakefield<br>Author-Email: m.wakefield@ifs.org.uk<br>Author-Workplace-Name: Institute for Fiscal Studies and University of Bologna<br>Title: Increasing support for those on lower incomes: is the Saving Gateway the best policy response?<br>Journal: Fiscal Studies<br>Pages: 167-195<br>Issue: 2<br>Volume: 24<br>Year: 2003<br>Month: June     <br>Abstract: &lt;p&gt;The government is committed to introducing a new savings account for people on lower incomes. This will provide a strong incentive for eligible individuals to save, or at least to hold financial assets, in these accounts. This paper describes possible rationales for this government intervention. It then presents new evidence on the characteristics of people with lower incomes and finds that many already have some financial assets, while those who do not often appear to have good reasons for why they may not want to be currently saving. The result is that the proposed Saving Gateway will be extremely difficult to target at those who might benefit in the way the government hopes. The danger is that the policy will be expensive relative to the number of genuine new savers and savings that it generates. &lt;/p&gt;<br>Classification-JEL: D91<br>Handle: RePEc:ifs:fistud:v:24:y:2003:i:2:p:167-195<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Editorial note<br>Author-X-Name-First: Editorial<br>Author-X-Name-Last:  note<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Symposium on Welfare Reform under the Labour Government: Part II<br>Journal: Fiscal Studies<br>Pages: 120<br>Issue: 2<br>Volume: 24<br>Year: 2003<br>Month: June     <br>Abstract: &lt;p&gt;This is the second part of the symposium arising from a one-day conference held at the Institute for Fiscal Studies in May 2002. The papers presented on that day considered the social security reforms during the first term of the Labour government from a number of perspectives. The articles published in both parts of the symposium are therefore drawn from a broader range of disciplines than is usual for Fiscal Studies papers.&lt;/p&gt;&lt;/p&gt;&lt;p&gt;&lt;/p&gt;&lt;p&gt;&lt;p&gt;In this part of the symposium, David Miles and James Sefton consider the trade-offs inherent in designing social security systems, setting out a model that allows the relative benefits and drawbacks to be assessed. Raymond Plant's paper concludes the symposium, discussing the nature of citizenship that appears to be presupposed by Labour's reforms.&lt;/p&gt;<br>Handle: RePEc:ifs:fistud:v:24:y:2003:i:2:p:120<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  James Sefton<br>Author-X-Name-First: James<br>Author-X-Name-Last:  Sefton<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  David Miles<br>Author-X-Name-First: David<br>Author-X-Name-Last:  Miles<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Social Security Design in the UK: What is optimal? <br>Journal: Fiscal Studies<br>Pages: 121-151<br>Issue: 2<br>Volume: 24<br>Year: 2003<br>Month: June     <br>Abstract: &lt;p&gt;&lt;p&gt;This paper uses a simple model of how households at different points on the income distribution make decisions about saving and labour supply to illustrate some of the problems government faces in designing social security systems. We show simulation results, which highlight the costs and benefits of alternative pension and income support regimes, and analyse what is happening in the UK in the light of the results. &lt;/p&gt;&lt;/p&gt;<br>Classification-JEL: H10, H20, H30<br>Handle: RePEc:ifs:fistud:v:24:y:2003:i:2:p:121-151<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Raymond Plant<br>Author-X-Name-First: Raymond<br>Author-X-Name-Last:  Plant<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Citizenship and Social Security <br>Journal: Fiscal Studies<br>Pages: 153-166<br>Issue: 2<br>Volume: 24<br>Year: 2003<br>Month: June     <br>Abstract: &lt;p&gt;The aim of this paper is to elucidate the idea of citizenship that lies behind the Labour government's welfare reforms. There has been no proper statement about this from the government, so the paper is an attempt to make explicit what is latent in the reforms. It does this partly historically by looking at ideas of citizenship that have been presupposed in the development of the British Welfare State. It is claimed that there are two rather different approaches to be discerned: one sees citizenship as a basic status, which in turn is the basis of entitlement; the other view is that citizenship is something that has to be developed or achieved, typically by participation in the labour market and by discharging obligations. This distinction is then used more analytically to assess some of the welfare reforms and to indicate possible sources of future difficulty and tension in so far as the government embraces the obligation-oriented view of citizenship.&lt;/p&gt;<br>Classification-JEL: I0<br>Handle: RePEc:ifs:fistud:v:24:y:2003:i:2:p:153-166<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Massimo Florio<br>Author-X-Name-First: Massimo<br>Author-X-Name-Last:  Florio<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Does privatisation matter? The long-term performance of British Telecom over 40 years <br>Journal: Fiscal Studies<br>Pages: 197-234<br>Issue: 2<br>Volume: 24<br>Year: 2003<br>Month: June     <br>Abstract: &lt;p&gt;In this paper, we offer and discuss new evidence on the performance of British Telecom (BT) before and after privatisation. We use a unique data-set based on company accounts over 40 years (1960-99) and original additional company data on several variables. We focus particularly on output, prices, revenues, costs, employment, productivity, profits and investment. Our key findings are that operating profits (i.e. gross profits before interest and tax) were remarkably stable before and after divestiture, and that ownership change per se had little discernible impact on productivity trends, particularly between 1984 and 1991. Major changes in performance after 1991 were, however, related to variations in financial arrangements, competition and regulatory pressure. This allows us to regard the BT case history as a natural experiment on the relative importance of privatisation, liberalisation and regulation. &lt;/p&gt;<br>Classification-JEL: L32, L33, L5, M54<br>Handle: RePEc:ifs:fistud:v:24:y:2003:i:2:p:197-234<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Ibon Galarraga<br>Author-X-Name-First: Ibon<br>Author-X-Name-Last:  Galarraga<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Anil Markandya<br>Author-X-Name-First: Anil<br>Author-X-Name-Last:  Markandya<br>Author-Email: <br>Author-Workplace-Name:<br>Title: The analysis of welfare effects of an environmental product tax: an application to the taxation of car tyres in Hungary <br>Journal: Fiscal Studies<br>Pages: 97-114<br>Issue: 1<br>Volume: 24<br>Year: 2003<br>Month: March    <br>Abstract: &lt;p&gt;A sophisticated welfare analysis developed by Morris and Kis (1996) is presented here for the study of the effect of a product charge tax on the car tyre market in Hungary. The analysis is extended and complemented in this paper by, first, using the AIDS model and an algorithm developed by Galarraga and Markandya (2000) to estimate demand elasticities from limited data and, second, including the income effects into the analysis. The latter does not have much impact on the results but the generalisation of the model might be useful for the analysis of different goods where the proportion of income spent on them is more important. &lt;/p&gt;<br>Classification-JEL: H24, H31<br>Handle: RePEc:ifs:fistud:v:24:y:2003:i:1:p:97-114<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Simon C. Parker<br>Author-X-Name-First: Simon<br>Author-X-Name-Last:  Parker<br>Author-Email: <br>Author-Workplace-Name:<br>Title: The distribution of wealth of older self-employed Britons<br>Journal: Fiscal Studies<br>Pages: 23-43<br>Issue: 1<br>Volume: 24<br>Year: 2003<br>Month: March    <br>Abstract: &lt;p&gt;Little is known about the wealth of older self-employed people, despite growing interest in this labour market group. This paper utilises the British Retirement Survey to fill the gap by providing novel estimates of their lifetime wealth. The findings dispel the idea that the self-employed live in poverty; indeed, they seem to be a relatively wealthy group, holding a broad spread of assets and subject to moderate lifetime wealth inequality. These findings may help inform modelling of retirement behaviour of this group, as well as pension policy design.&lt;/p&gt;<br>Classification-JEL: D31, J14, J23<br>Handle: RePEc:ifs:fistud:v:24:y:2003:i:1:p:23-43<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Gordon Keenay<br>Author-X-Name-First: Gordon<br>Author-X-Name-Last:  Keenay<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Edward Whitehouse<br>Author-X-Name-First: Edward<br>Author-X-Name-Last:  Whitehouse<br>Author-Email: <br>Author-Workplace-Name:<br>Title: The Role of the Personal Tax System in Old-Age Support: A Survey of 15 Countries <br>Journal: Fiscal Studies<br>Pages: 1-21<br>Issue: 1<br>Volume: 24<br>Year: 2003<br>Month: March    <br>Abstract: &lt;p&gt;This paper examines the tax treatment of pensioners in 15 industrialised countries. Using a standard methodology, it calculates the average and marginal tax rates of older people and compares them with those of people of working age. These are then combined with a model of pension entitlements in different countries. This shows that tax differentials play an important role in old-age support. We discuss the appropriate way for the tax system to support pensioners and the implications for the tax treatment of private pensions. &lt;/p&gt;<br>Classification-JEL: H1, H2, H3<br>Handle: RePEc:ifs:fistud:v:24:y:2003:i:1:p:1-21<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Iain McLean<br>Author-X-Name-First: Iain<br>Author-X-Name-Last:  McLean<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Alistair McMillan<br>Author-X-Name-First: Alistair<br>Author-X-Name-Last:  McMillan<br>Author-Email: <br>Author-Workplace-Name:<br>Title: The Distribution of Public Expenditure across the UK Regions <br>Journal: Fiscal Studies<br>Pages: 45-71<br>Issue: 1<br>Volume: 24<br>Year: 2003<br>Month: March    <br>Abstract: &lt;p&gt;The distribution of UK revenue to the regional and territorial governments, administrations and authorities that spend the money is based on a hotchpotch of badly designed formulae. This is widely recognised. The Barnett formula, which allocates money to the devolved territories, has been attacked from all sides, its consequences described as &Ntilde;&acute;erribly unfair' by its progenitor, Lord Barnett. The mechanism by which resources are distributed to local authorities within the English regions has been abandoned by the government, although its replacement has not yet been determined. This paper argues that a common basis for government spending across the regions and territories of the UK will be more equitable and efficient, and may even depoliticise the financial framework of the UK.&lt;/p&gt;<br>Classification-JEL: H73, H77, R12<br>Handle: RePEc:ifs:fistud:v:24:y:2003:i:1:p:45-71<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Julio L&oacute;pez-Laborda<br>Author-X-Name-First: Julio<br>Author-X-Name-Last:  L&oacute;pez-Laborda<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Fernando Rodrigo<br>Author-X-Name-First: Fernando<br>Author-X-Name-Last:  Rodrigo<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Tax Amnesties and Income Tax Compliance: The Case of Spain <br>Journal: Fiscal Studies<br>Pages: 73-96<br>Issue: 1<br>Volume: 24<br>Year: 2003<br>Month: March    <br>Abstract: &lt;p&gt;The aim of this paper is to evaluate the long-term impact on Spanish individual income tax (IRPF) compliance of the amnesty measures granted in 1991 within the framework of the 1988-91 income tax reform programme. To that end, we combine time-series techniques with outlier detection methods and the Bai and Perron (1998) test for the endogenous estimation of structural breaks. On the basis of the analysis of the monthly IRPF tax collection series from 1979 to 1998, we find that the amnesty had no effect on tax collection in either the short or the long term. By contrast, we find evidence of the permanent positive impact caused by the legislative and administrative measures linked to the IRPF reform process begun in 1988. &lt;/p&gt;<br>Classification-JEL: H24, H31<br>Handle: RePEc:ifs:fistud:v:24:y:2003:i:1:p:73-96<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  John Cable<br>Author-X-Name-First: John<br>Author-X-Name-Last:  Cable<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Andrew Henley<br>Author-X-Name-First: Andrew<br>Author-X-Name-Last:  Henley<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Kevin Holland<br>Author-X-Name-First: Kevin<br>Author-X-Name-Last:  Holland<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Pot of gold or winner's curse? An event study of the auctions of 3G mobile telephone licences in the UK <br>Journal: Fiscal Studies<br>Pages: 447-462<br>Issue: 4<br>Volume: 23<br>Year: 2002<br>Month: December <br>Abstract: &lt;p&gt;Commentators have suggested that the winning companies in the UK 3G mobile telephone auction overpaid for their licences. However, event-study method using the market model under ordinary least squares (OLS), robust and structural time-series estimation yields no systematic evidence of the &Ntilde;&middot;inner's curse&Ograve;&reg; Positive as well as negative one-day wealth effects are observed amongst both winners and losers, and there is no lasting adverse market reaction to the winners, taken as a group. We conclude there is no case for easing the regulatory stance in the industry on grounds that the winners paid too much.&lt;/p&gt;<br>Classification-JEL: L96, D44, G14<br>Handle: RePEc:ifs:fistud:v:23:y:2002:i:4:p:447-462<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Michael G. Pollitt<br>Author-X-Name-First: Michael<br>Author-X-Name-Last:  Pollitt<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Andrew S. J. Smith<br>Author-X-Name-First: Andrew<br>Author-X-Name-Last:  Smith<br>Author-Email: <br>Author-Workplace-Name:<br>Title: The restructuring and privatisation of British Rail: was it really that bad? <br>Journal: Fiscal Studies<br>Pages: 463-502<br>Issue: 4<br>Volume: 23<br>Year: 2002<br>Month: December <br>Abstract: &lt;p&gt;This paper uses a social cost-benefit analysis (SCBA) framework to assess whether rail privatisation in Britain has produced savings in operating costs. The paper shows that major efficiencies have been achieved and consumers have benefited through lower prices, whilst the increased government subsidy has been largely recouped through privatisation proceeds. We also find that output quality is no lower (and is probably better) than under the counterfactual scenario of public ownership (pre-Hatfield). The achievement of further savings is key to delivering improved rail services in the future. This paper finds that a privatised structure, where shareholders demand a return on their investment, has led to significant improvements in operating efficiency. It remains to be seen whether the new regime, with a not-for-profit infrastructure owner, will deliver the same efficiency improvements. &lt;/p&gt;<br>Handle: RePEc:ifs:fistud:v:23:y:2002:i:4:p:463-502<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Editorial Note<br>Author-X-Name-First: Editorial<br>Author-X-Name-Last:  Note<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Symposium on Welfare Reform under the Labour Government: Part I<br>Journal: Fiscal Studies<br>Pages: 503-504<br>Issue: 4<br>Volume: 23<br>Year: 2002<br>Month: December <br>Abstract: &lt;p&gt;This symposium arises from a one-day conference held at the Institute for Fiscal Studies on 22 May 2002. The papers presented on that day considered the social security reforms during the first term of the Labour government from a number of perspectives. The three articles published here - and the further three that will follow in Part II of the symposium - are drawn from a broader range of disciplines than is usual for Fiscal Studies papers. &lt;/p&gt;<br>Handle: RePEc:ifs:fistud:v:23:y:2002:i:4:p:503-504<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name: Mike Brewer<br>Author-X-Name-First: Mike<br>Author-X-Name-Last: Brewer<br>Author-Email: m.brewer@ifs.org.uk<br>Author-Workplace-Name: Institute for Fiscal Studies and ISER, Essex University<br>Author-Name: Tom Clark<br>Author-X-Name-First: Tom<br>Author-X-Name-Last: Clark<br>Author-Email: <br>Author-Workplace-Name: Institute for Fiscal Studies<br>Author-Name: Matthew Wakefield<br>Author-X-Name-First: Matthew<br>Author-X-Name-Last: Wakefield<br>Author-Email: m.wakefield@ifs.org.uk<br>Author-Workplace-Name: Institute for Fiscal Studies and University of Bologna<br>Title: Social security in the UK under New Labour: what did the Third Way mean for welfare reform? <br>Journal: Fiscal Studies<br>Pages: 505-537<br>Issue: 4<br>Volume: 23<br>Year: 2002<br>Month: December <br>Abstract: &lt;p&gt;In 1997, the Labour Party was elected in the UK with few explicitly articulated ideas about social security reforms. This paper reviews the large number of subsequent reforms to social security, and argues that some consistent themes have emerged. A commitment to keep to the tight spending plans of the previous, Conservative, administration left little scope for increases in benefit spending during the first two years in office. Since that time, increases in the generosity of some social security programmes have been directed towards achieving certain goals. An emphasis on encouraging paid work has been a consistent theme, whilst aims of reducing poverty rates for children and pensioners have been emphasised since 1999. Spending to achieve these goals has often been directed through means-tested programmes, and there has been a related weakening of the link between paid National Insurance contributions and benefit entitlements. It remains to be seen whether reforms to the process of income assessment will increase take-up. &lt;/p&gt;<br>Classification-JEL: D31, H24, H53, H55, I30<br>Handle: RePEc:ifs:fistud:v:23:y:2002:i:4:p:505-537<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  John Hills<br>Author-X-Name-First: John<br>Author-X-Name-Last:  Hills<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Following or Leading Public Opinion? Social Security Policy and Public Attitudes Since 1997 <br>Journal: Fiscal Studies<br>Pages: 539-558<br>Issue: 4<br>Volume: 23<br>Year: 2002<br>Month: December <br>Abstract: &lt;p&gt;This paper examines New Labour's social security and related policies since 1997 in the light of evidence on public attitudes. The list of measures where policies have been in or have come into line with public attitudes is much longer than the list of measures where policies have been out of line with public attitudes or appear to have led them. One interpretation is that policy has been led by opinion surveys and focus groups, with opportunities lost to take more radical action and then persuade people of the need and justification for it. An alternative would be that policy has navigated with the grain of some of the more progressive parts of public opinion to achieve a result that has carried the public with it, in a way that would not have been sustainable if there had simply been an increase in the generosity of an unreformed social security system.&lt;/p&gt;<br>Classification-JEL: I38<br>Handle: RePEc:ifs:fistud:v:23:y:2002:i:4:p:539-558<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Fran Bennett<br>Author-X-Name-First: Fran<br>Author-X-Name-Last:  Bennett<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Gender implications of current social security reforms<br>Journal: Fiscal Studies<br>Pages: 559-584<br>Issue: 4<br>Volume: 23<br>Year: 2002<br>Month: December <br>Abstract: &lt;p&gt;This paper examines some current reforms to social security benefits / tax credits and changes to employment provisions from a gender perspective. It analyses tensions between the trend towards &Ntilde;&copy;ndividualisation' and growing emphasis on the couple/household as a policy focus. New tax credits change the distribution of resources within many couples. Incentives to work for some second earners should improve; but extending in-work subsidies to childless couples raises questions. Payment of child tax credit to the &Ntilde;&shy;ain carer' has been welcomed, though the implications of joint ownership of tax credits are unclear, and joint assessment will be extended. Many claimants' partners can now access employment services. However, this is aimed at reducing the number of workless households rather than expanding individuals' opportunities. Joint claims for jobseeker's allowance, and work-focused interviews, involve increased responsibilities for partners but no right of access to individual income. A more consistent critical analysis of reform from a gender perspective is required.&lt;/p&gt;<br>Classification-JEL: D13, D31, D63, I38<br>Handle: RePEc:ifs:fistud:v:23:y:2002:i:4:p:559-584<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Malcolm Chalmers<br>Author-X-Name-First: Malcolm<br>Author-X-Name-Last:  Chalmers<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Neil V. Davies<br>Author-X-Name-First: Neil<br>Author-X-Name-Last:  Davies<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Keith Hartley<br>Author-X-Name-First: Keith<br>Author-X-Name-Last:  Hartley<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Chris Wilkinson<br>Author-X-Name-First: Chris<br>Author-X-Name-Last:  Wilkinson<br>Author-Email: <br>Author-Workplace-Name:<br>Title: The economic costs and benefits of UK defence exports <br>Journal: Fiscal Studies<br>Pages: 305-342<br>Issue: 3<br>Volume: 23<br>Year: 2002<br>Month: September<br>Abstract: &lt;p&gt;This study examines the economic costs and benefits to the UK of a 50 per cent cut in UK defence exports from the average level of 1998 and 1999. The net impact on the government budget is estimated to be an ongoing loss of between around &Atilde;&acute;0 million and &Atilde;&plusmn;00 million a year: around 0.2&Ouml;&deg;.4 per cent of the total UK defence budget. In addition, there is estimated to be a one-off net adjustment cost, spread over five years, of between &Atilde;&deg;.9 billion and &Atilde;&plusmn;.4 billion. A further more speculative adjustment cost (estimated at around &Atilde;&plusmn;.1 billion) could result if the loss of income associated with the &Ntilde;&acute;erms-of-trade' effect were also included. In terms of the wider debate about defence exports, the results of this study suggest first that the economic effects of the reduction in defence exports are relatively small and largely one-off, and secondly that the balance of arguments about UK defence exports should be determined mainly by non-economic factors.&lt;/p&gt;<br>Classification-JEL: H00<br>Handle: RePEc:ifs:fistud:v:23:y:2002:i:3:p:305-342<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name: Tom Clark<br>Author-X-Name-First: Tom<br>Author-X-Name-Last: Clark<br>Author-Email: <br>Author-Workplace-Name: Institute for Fiscal Studies<br>Author-Name:  Mike Elsby<br>Author-X-Name-First: Mike<br>Author-X-Name-Last:  Elsby<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name: Sarah Love<br>Author-X-Name-First: Sarah<br>Author-X-Name-Last: Love<br>Author-Email: <br>Author-Workplace-Name: Institute for Fiscal Studies<br>Title: Trends in British public investment<br>Journal: Fiscal Studies<br>Pages: 305-342<br>Issue: 3<br>Volume: 23<br>Year: 2002<br>Month: September<br>Abstract: &lt;p&gt;&lt;p&gt;British public investment has declined sharply both as a share of GDP and as a share of government spending since the 1970s. Only part of this decline is explained by privatisation, which transferred some public investment to the private sector. More important was the very large and permanent reduction in public house-building between the mid-1970s and the early 1980s. Between the late 1980s and the early 1990s, the rate of public investment recovered somewhat, but after that time it declined again, reaching a record low in 1999. The most recent decline in public investment has affected a range of central government programmes, and it has not been significantly offset by investment under the Private Finance Initiative. The government now plans to increase investment spending, although levels look set to remain low by historical standards for some time to come. &lt;/p&gt;&lt;/p&gt;<br>Classification-JEL: H10, H50<br>Handle: RePEc:ifs:fistud:v:23:y:2002:i:3:p:305-342<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Tom Sefton<br>Author-X-Name-First: Tom<br>Author-X-Name-Last:  Sefton<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Targeting fuel poverty in England: is the government getting warm? <br>Journal: Fiscal Studies<br>Pages: 369-399<br>Issue: 3<br>Volume: 23<br>Year: 2002<br>Month: September<br>Abstract: &lt;p&gt;Scheme (HEES), a key component of the UK government's Fuel Poverty Strategy. The impact on the fuel poverty gap is simulated using data on a large-scale and representative sample of households in England. The scope for improving the scheme's targeting is considered by examining the optimal allocation of grants between households. The extent to which these potential gains might be achieved in practice using pragmatic criteria for distributing grants, and the implications of taking into account the dynamics of fuel poverty and the self-selection of grant applicants, are also explored. The current scheme is unlikely to have a very significant impact on fuel poverty, and considerable gains could be achieved by redesigning HEES, although the paper also highlights the difficulties involved in efficient targeting, including some additional complications not encountered in the analysis of more traditional anti-poverty measures.&lt;/p&gt;<br>Classification-JEL: D610, H420, Q480<br>Handle: RePEc:ifs:fistud:v:23:y:2002:i:3:p:369-399<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Michael Keen<br>Author-X-Name-First: Michael<br>Author-X-Name-Last:  Keen<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  John King<br>Author-X-Name-First: John<br>Author-X-Name-Last:  King<br>Author-Email: <br>Author-Workplace-Name:<br>Title: The Croatian profit tax: an ACE in practice <br>Journal: Fiscal Studies<br>Pages: 401-418<br>Issue: 3<br>Volume: 23<br>Year: 2002<br>Month: September<br>Abstract: &lt;p&gt;This paper discusses the experience of Croatia in applying, from 1994 to the beginning of 2001, a profit tax that was charged only on equity income in excess of an imputed normal return &times;&nbsp;and was thus, in essence, an allowance for Corporate Equity' (ACE) scheme of the kind advocated by the IFS Capital Taxes Group and others. The computation of taxable profit under this system is summarised, and the theoretical attractions of the system are described. The paper then discusses a variety of criticisms that were made of the system in Croatia, including an alleged bias in favour of capital-intensive enterprises (and, in particular, large State-owned enterprises with overvalued assets), international complications, the complexity of the computations of taxable profit, the possibility that the rate of protective interest was set at an inappropriate level, and excessive revenue cost.&lt;/p&gt;<br>Classification-JEL: H0, H3<br>Handle: RePEc:ifs:fistud:v:23:y:2002:i:3:p:401-418<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Horacio Levy<br>Author-X-Name-First: Horacio<br>Author-X-Name-Last:  Levy<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Magda Mercador-Prats<br>Author-X-Name-First: Magda<br>Author-X-Name-Last:  Mercador-Prats<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Simplifying the personal income tax system: lessons from the 1998 Spanish reform <br>Journal: Fiscal Studies<br>Pages: 419-443<br>Issue: 3<br>Volume: 23<br>Year: 2002<br>Month: September<br>Abstract: &lt;p&gt;Governments often try to reduce the complexity of personal income tax systems by decreasing the number of tax filings. The 1998 reform of the Spanish income tax system has followed this approach by adjusting withholding on earned income to the income tax liability. In this paper, we assess to what extent the reform has fulfilled its purposes, making use of a micro-simulation tax- benefit model for Spain, ESPASIM. The number of individuals exempt from filing a tax return has been reduced to around half of the total number of taxpayers. However, the quantity of tax returns sent to the tax administration has not changed so much because the new withholding system adjusts taxes for only 29 per cent of those exempt. Moreover, the new system increases the overall excess of tax withholding by 1.5 billion euro. We also study alternative reforms that could achieve better results than the one implemented. &lt;/p&gt;<br>Classification-JEL: H24, K34<br>Handle: RePEc:ifs:fistud:v:23:y:2002:i:3:p:419-443<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Christine Greenhalgh<br>Author-X-Name-First: Christine<br>Author-X-Name-Last:  Greenhalgh<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Does an employer training levy work? The incidence of and returns to adult vocational training in France and Britain <br>Journal: Fiscal Studies<br>Pages: 223-263<br>Issue: 2<br>Volume: 23<br>Year: 2002<br>Month: September<br>Abstract: &lt;p&gt;We examine two different policy regimes towards continuing vocational training for the adult workforce: policy in France has been interventionist, using an employer training levy since the 1970s, whereas British policy has relied largely on individual initiatives for training investment by employers and workers.&lt;/p&gt; &lt;/p&gt;&lt;p&gt;&lt;/p&gt;&lt;p&gt;&lt;p&gt;We begin with a review of the theory of vocational training, indicating why market failure and underprovision are the likely outcome and signalling types of corrective policy that might be adopted. We set up hypotheses about the likely impact of policy in France relative to Britain to provide a framework for evaluation. We present a detailed comparison of the two systems in observed training incidence and the returns to training captured by workers and employers, drawing on a wide range of econometric studies. We conclude with an assessment of the employer training levy in France and suggest ways it could be modified if adopted in Britain. &lt;/p&gt;<br>Classification-JEL: J24, H42<br>Handle: RePEc:ifs:fistud:v:23:y:2002:i:2:p:223-263<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Bennett, M<br>Author-X-Name-First: Bennett,<br>Author-X-Name-Last:  M<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Cooke, D<br>Author-X-Name-First: Cooke,<br>Author-X-Name-Last:  D<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Catherine Waddams-Price<br>Author-X-Name-First: Catherine<br>Author-X-Name-Last:  Waddams-Price<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Left out in the cold? New energy tariffs, low-income households and the fuel poor<br>Journal: Fiscal Studies<br>Pages: 167-194<br>Issue: 2<br>Volume: 23<br>Year: 2002<br>Month: June     <br>Abstract: &lt;p&gt;Two new gas tariffs were introduced in 2000, with contrasting effects. One abolished a fixed standing charge, while the other, specifically targeted at low-income consumers, introduced a preset charge, independent of fuel consumption, for eligible consumers. We analyse the effect of the abolition of the standing charge on different household groups, including the fuel poor, the current focus of government and regulatory policy. We find that while low-income groups have benefited more than others from abolition of the standing charge, the fuel poor have gained less than average. We contrast this with the other targeted preset charge scheme.&lt;/p&gt;<br>Classification-JEL: L500, L900, D210<br>Keywords: Fuel charges, household welfare<br>Handle: RePEc:ifs:fistud:v:23:y:2002:i:2:p:167-194<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Todd Sandler<br>Author-X-Name-First: Todd<br>Author-X-Name-Last:  Sandler<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Daniel G Arce M<br>Author-X-Name-First: Daniel<br>Author-X-Name-Last:  M<br>Author-Email: <br>Author-Workplace-Name:<br>Title: A conceptual framework for understanding global and transnational public goods for health<br>Journal: Fiscal Studies<br>Pages: 195-222<br>Issue: 2<br>Volume: 23<br>Year: 2002<br>Month: June     <br>Abstract: &lt;p&gt;The paper presents two taxonomies for classifying global and transnational health-promoting activities according to three parameters of publicness - non-rivalry of benefits, non-excludability of non-payers and the aggregation technologies. Based on these taxonomies and their implications for efficiency and equity, this paper identifies the need for international cooperation in some, but certainly not all, areas concerning the provision of such health-promoting activities. Additionally, institutional responses are evaluated in light of the various health-promoting activities. The roles of multilaterals, non-governmental organisations, foundations and nations are addressed. A host of current global health issues - for example, public-private partnerships, international orphan drug legislature and patent protection - are addressed.&lt;/p&gt;<br>Classification-JEL: H41, I18<br>Handle: RePEc:ifs:fistud:v:23:y:2002:i:2:p:195-222<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  John Fender<br>Author-X-Name-First: John<br>Author-X-Name-Last:  Fender<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Peter A. Watt<br>Author-X-Name-First: Peter<br>Author-X-Name-Last:  Watt<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Should central government seek to control the level of local authority expenditures <br>Journal: Fiscal Studies<br>Pages: 265-285<br>Issue: 2<br>Volume: 23<br>Year: 2002<br>Month: June     <br>Abstract: &lt;p&gt;Should local authorities be free to determine their expenditure, provided they finance changes in spending by changes in local taxation? We set up a theoretical framework to analyse this issue, and discuss three arguments that have been put forward for central control of such spending. The first relates to tax spillovers, the second to distributional effects combined with imperfect local democracy and the third considers self-interested local politicians. While these arguments cannot be entirely dismissed, they are subject to numerous qualifications and, if correct, would imply the desirability of a number of policies other than expenditure capping. &lt;/p&gt;<br>Classification-JEL: E62, H70<br>Handle: RePEc:ifs:fistud:v:23:y:2002:i:2:p:265-285<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Marc Robinson<br>Author-X-Name-First: Marc<br>Author-X-Name-Last:  Robinson<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Accrual accounting and Australian fiscal policy<br>Journal: Fiscal Studies<br>Pages: 287-300<br>Issue: 2<br>Volume: 23<br>Year: 2002<br>Month: June     <br>Abstract: &lt;p&gt;Australian governments have recently moved from cash accounting to accrual accounting. Accrual accounting has been accompanied at the national government level by the introduction of a new key fiscal policy measure: the &Ntilde;&brvbar;iscal balance&Ograve;&reg; This paper explains and evaluates this new fiscal measure. It concludes that, given the present fiscal policy of the Australian government, fiscal balance is a superior fiscal policy measure to the &Ntilde;&pound;ash' budget balance measure which it replaced. However, from the alternative &Ntilde;&sect;olden rule' policy standpoint, fiscal balance is not a meaningful fiscal policy measure &times;&nbsp;although its stock counterpart, net financial liabilities, certainly is.&lt;/p&gt;<br>Classification-JEL: E62, H61<br>Handle: RePEc:ifs:fistud:v:23:y:2002:i:2:p:287-300<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Bruce Meyer<br>Author-X-Name-First: Bruce<br>Author-X-Name-Last:  Meyer<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Unemployment and workers' compensation programmes: rationale, design, labour supply and income support .<br>Journal: Fiscal Studies<br>Pages: 1-49<br>Issue: 1<br>Volume: 23<br>Year: 2002<br>Month: March    <br>Abstract: &lt;p&gt;I examine the unemployment insurance (UI) and workers' compensation (WC) insurance programmes, concentrating on labour supply, insurance and income redistribution. UI and WC increase the time employees spend out of work. Elasticities of lost work time that incorporate both the incidence and duration of claims are centred at 1.0 for UI and between 0.5 and 1.0 for WC. These elasticities are larger than elasticities typically found in studies of wage effects on hours worked by men, probably because UI and WC lead to short-run variation in wages with mostly a substitution effect and the programmes alter the participation margin. Some good evidence suggests that UI smooths the consumption of the unemployed and more clearly indicates that UI progressively redistributes resources. There is substantial evidence that injured workers suffer material hardships even with WC programmes, but research has not provided an overall picture of the insurance and redistributive aspects of WC.&lt;/p&gt;<br>Classification-JEL: J28, J64, J65. <br>Handle: RePEc:ifs:fistud:v:23:y:2002:i:1:p:1-49<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Massimo Baldini<br>Author-X-Name-First: Massimo<br>Author-X-Name-Last:  Baldini<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Stefano Toso <br>Author-X-Name-First: Stefano<br>Author-X-Name-Last:  <br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Paolo Bosi<br>Author-X-Name-First: Paolo<br>Author-X-Name-Last:  Bosi<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Targeting welfare in Italy: old problems and perspectives on reform <br>Journal: Fiscal Studies<br>Pages: 51-75<br>Issue: 1<br>Volume: 23<br>Year: 2002<br>Month: March    <br>Abstract: &lt;p&gt;This paper has two principal objectives. Using a tax-benefit microsimulation model and the 1998 micro data of the Bank of Italy survey of household income and wealth, we first study the distributional effects of the current Italian income maintenance system and highlight its main defects and limitations, concerning in particular its unequal coverage of the population and its low efficiency in fighting poverty. The second aim is to describe and analyse the reforms recently implemented in this field; in particular, the Italian government has reformed the targeting criteria and introduced three new cash transfers. We describe these reforms both in their institutional characteristics and in their likely distributional consequences, and examine whether and to what extent they are able to overcome the shortcomings of the current system. &lt;/p&gt;<br>Classification-JEL: D31, H24, I32. <br>Handle: RePEc:ifs:fistud:v:23:y:2002:i:1:p:51-75<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Philip Booth<br>Author-X-Name-First: Philip<br>Author-X-Name-Last:  Booth<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Deborah Cooper <br>Author-X-Name-First: Deborah<br>Author-X-Name-Last:  <br>Author-Email: <br>Author-Workplace-Name:<br>Title: The tax treatment of UK defined contribution pension schemes <br>Journal: Fiscal Studies<br>Pages: 77-104<br>Issue: 1<br>Volume: 23<br>Year: 2002<br>Month: March    <br>Abstract: &lt;p&gt;The paper aims to clarify the tax status of pension schemes in the UK and, by using economic and other arguments, to establish a theoretical benchmark that could be considered the 'appropriate' tax regime for pension saving. &lt;/p&gt;&lt;p&gt;&lt;/p&gt;&lt;p&gt;We consider existing tax regimes for saving (such as the 'ISA' regime) and theoretical regimes (such as a pure expenditure tax and a comprehensive income tax) and we compare the costs different tax regimes impose on defined contribution pension schemes. We conclude that an expenditure tax is an appropriate benchmark tax regime for pension saving, and that other tax regimes impose additional financial as well as administrative costs.&lt;/p&gt;<br>Classification-JEL: H29, J32. <br>Handle: RePEc:ifs:fistud:v:23:y:2002:i:1:p:77-104<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Martin Scheider <br>Author-X-Name-First: Martin<br>Author-X-Name-Last:  <br>Author-Email: <br>Author-Workplace-Name:<br>Title: Local fiscal equalisation based on fiscal capacity: the case of Austria <br>Journal: Fiscal Studies<br>Pages: 105-133<br>Issue: 1<br>Volume: 23<br>Year: 2002<br>Month: March    <br>Abstract: &lt;p&gt;This paper deals with local fiscal equalisation in Austria. The system of intergovernmental relations in Austria includes different regulations in order to equalise differences in the fiscal capacity of the municipalities. This leads to so-called 'compensation effects' because additional revenues from a local government's own tax are (at least partly) compensated by losses from equalisation grants. This paper carries out a detailed analysis of these compensation effects. It is shown that they create strong fiscal disincentives for the local governments: on average, 55 per cent of additional revenues from the communal tax (which is the most important of a local government's own taxes) are compensated by losses of equalisation grants. In extreme cases, local governments can lose up to 144 per cent of the additional tax yields collected. These local governments would be better off if they made no effort to increase their tax base.&lt;/p&gt;<br>Classification-JEL: H71, H77.<br>Handle: RePEc:ifs:fistud:v:23:y:2002:i:1:p:105-133<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Ashok Bhundia<br>Author-X-Name-First: Ashok<br>Author-X-Name-Last:  Bhundia<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Gus O'Donnell <br>Author-X-Name-First: Gus<br>Author-X-Name-Last:  <br>Author-Email: <br>Author-Workplace-Name:<br>Title: UK policy coordination: the importance of institutional design <br>Journal: Fiscal Studies<br>Pages: 135-164<br>Issue: 1<br>Volume: 23<br>Year: 2002<br>Month: March    <br>Abstract: &lt;p&gt;&lt;p&gt;This paper considers the principles that underpin the design of the UK's macroeconomic framework, with particular emphasis on the importance of good institutional design in ensuring effective coordination of monetary and fiscal policy when an independent Bank of England Monetary Policy Committee has operational responsibility for setting interest rates. The theoretical literature on policy coordination finds that the cost of central bank independence is less monetary&nbsp;fiscal coordination. We argue that once account is taken of the institutional arrangements, this conclusion does not hold for the UK. In fact, the UK macroeconomic policy framework represents a significant improvement in policy coordination through mechanisms that allow for greater transparency and accountability in policy-making. Among the measures discussed in the paper is the role of the Treasury Representative on the Bank of England Monetary Policy Committee.&lt;/p&gt;&lt;/p&gt;<br>Classification-JEL: E59, E61, E62. <br>Handle: RePEc:ifs:fistud:v:23:y:2002:i:1:p:135-164<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  David Pearce <br>Author-X-Name-First: David<br>Author-X-Name-Last:  <br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Charles Palmer<br>Author-X-Name-First: Charles<br>Author-X-Name-Last:  Palmer<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Public and private spending for environmental protection: a cross-country policy analysis <br>Journal: Fiscal Studies<br>Pages: 403-456<br>Issue: 4<br>Volume: 22<br>Year: 2001<br>Month: December <br>Abstract: &lt;p&gt;OECD data are used to investigate public and private environmental expenditures and, although they are more complete and consistent than other datasets, they are still poor. This is important in the context of measuring the benefits of environmental protection, when little is really known about its actual costs. Despite these limitations, this study demonstrates that there has been no shift towards an increasing private sector burden relative to the public sector over time. The paper also finds little evidence to show that environmental expenditures negatively impact on economic growth, although there is inconsistency between the &quot;no effects&quot; finding of the competitiveness literature and the &quot;negative effects&quot; finding of most of the productivity literature. Finally, the elasticity of expenditure with respect to income is found to be 1.2, lower than would be expected if the &quot;environmental demand effect&quot; is significant in explaining the downward slope of the environmental Kuznets curve.&lt;/p&gt;<br>Classification-JEL: Q28. <br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.2001.tb00048.x/abstract<br>File-Format: application/pdf<br>File-Size: 411<br>Handle: RePEc:ifs:fistud:v:22:y:2001:i:4:p:403-456<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  John Creedy <br>Author-X-Name-First: John<br>Author-X-Name-Last:  <br>Author-Email: <br>Author-Workplace-Name:<br>Title: Indirect tax reform and the role of exemptions <br>Journal: Fiscal Studies<br>Pages: 457-486.<br>Issue: 4<br>Volume: 22<br>Year: 2001<br>Month: December <br>Abstract: &lt;p&gt;This paper examines the question of whether indirect tax rates should be uniform, using four different modelling strategies. First, marginal tax reform is examined. This is concerned with the optimal direction of small changes in effective indirect tax rates and requires considerably less information than the calculation of optimal rates. Second, the welfare effects of a partial shift from the current indirect tax system in Australia towards a goods and services tax (GST) are considered, with particular emphasis on differences between household types and the role of exemptions. Third, in view of the stress on a distributional role for exemptions of certain goods from a GST, the potential limits to such redistribution are considered. The fourth approach examines the extent of horizontal inequity and reranking that can arise when there are non-uniform tax rates. These inequities arise essentially because of preference heterogeneity. &lt;/p&gt;<br>Classification-JEL:  H24, H31. <br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.2001.tb00049.x/abstract<br>File-Format: application/pdf<br>File-Size: 296<br>Handle: RePEc:ifs:fistud:v:22:y:2001:i:4:p:457-486.<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Lorenzo Forni<br>Author-X-Name-First: Lorenzo<br>Author-X-Name-Last:  Forni<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Raffaela Giordano <br>Author-X-Name-First: Raffaela<br>Author-X-Name-Last:  <br>Author-Email: <br>Author-Workplace-Name:<br>Title: Funding a PAYG pension system: the case of Italy <br>Journal: Fiscal Studies<br>Pages: 487-526.<br>Issue: 4<br>Volume: 22<br>Year: 2001<br>Month: December <br>Abstract: &lt;p&gt;Italy is characterised by a mature pay-as-you-go social security system and by particularly adverse population projections. Given these trends, the social security contribution rate is expected to increase above its current high level. This hinders the development of employer-provided pension funds and introduces a significant wedge between labour cost and earnings that discourages both labour demand and labour supply. Any proposal to reduce payroll taxes and to reform the system in the direction of partial funding has to cope with the state of Italian public finances. Italy has to comply with the Stability and Growth Pact that imposes constraints on budget deficit and debt trends. Using micro data from the Bank of Italy&quot;s Survey of Household Income and Wealth and official population projections, we estimate future employment trends under different demographic and macroeconomic scenarios and compute the cost of the transition. We show that it would be substantially reduced if positive effects on employment were induced by the payroll tax reduction.&lt;/p&gt;<br>Classification-JEL: H55, H62, J11. <br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.2001.tb00050.x/abstract<br>File-Format: application/pdf<br>File-Size: 300<br>Handle: RePEc:ifs:fistud:v:22:y:2001:i:4:p:487-526.<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Friedrich Heinemann <br>Author-X-Name-First: Friedrich<br>Author-X-Name-Last:  <br>Author-Email: <br>Author-Workplace-Name:<br>Title: After the death of inflation: will fiscal drag survive? <br>Journal: Fiscal Studies<br>Pages: 527-546.<br>Issue: 4<br>Volume: 22<br>Year: 2001<br>Month: December <br>Abstract: &lt;p&gt;Declining inflation rates might have negative consequences for tax revenues. Phenomena such as the inflationary bracket creep in a progressive income tax system do not work any longer. With this background, the paper analyses the extent of fiscal drag for OECD countries since 1965. Some consideration of the role of money illusion and indexation in this context lays the theoretical base. A framework is presented that allows for the classification of fiscal structures with regard to the type of fiscal drag. The subsequent econometric panel analysis is performed for total and disaggregated government revenues. The results back theoretical considerations of inflation&quot;s impact on different kinds of taxes, which tends to be positive for individual income taxes and social security contributions and is negative for corporate income taxation. The paper concludes that both declining inflation and changing tax structures limit the potential for future fiscal drag. &lt;/p&gt;<br>Classification-JEL: H20, E63. <br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.2001.tb00051.x/abstract<br>File-Format: application/pdf<br>File-Size: 183<br>Handle: RePEc:ifs:fistud:v:22:y:2001:i:4:p:527-546.<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Christopher Heady<br>Author-X-Name-First: Christopher<br>Author-X-Name-Last:  Heady<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Theodore Mitrakos <br>Author-X-Name-First: Theodore<br>Author-X-Name-Last:  <br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Panos Tsakloglou <br>Author-X-Name-First: Panos<br>Author-X-Name-Last:  <br>Author-Email: <br>Author-Workplace-Name:<br>Title: The distributional impact of social transfers in the European Union: evidence from the ECHP <br>Journal: Fiscal Studies<br>Pages: 547-565.<br>Issue: 4<br>Volume: 22<br>Year: 2001<br>Month: December <br>Abstract: &lt;p&gt;Social transfers vary enormously across the European Union, as has been demonstrated in earlier research. This paper analyses the comparative effects of these transfers on inequality and poverty, using consistent household data. The analysis shows that the distributional impact of these transfers is greater in countries that spend a higher proportion of their GDP on them, but that there are other important determinants, including the extent of means testing, the distribution of funds between different types of transfer and the degree of targeting for each transfer. It also shows that effective targeting can be achieved without high levels of means testing. &lt;/p&gt;<br>Classification-JEL: I38, H55. <br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.2001.tb00052.x/abstract<br>File-Format: application/pdf<br>File-Size: 206<br>Handle: RePEc:ifs:fistud:v:22:y:2001:i:4:p:547-565.<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name: Rachel Griffith<br>Author-X-Name-First: Rachel<br>Author-X-Name-Last: Griffith<br>Author-Email: r.griffith@ifs.org.uk<br>Author-Workplace-Name: Institute for Fiscal Studies and University of Manchester<br>Author-Name: Stephen Redding<br>Author-X-Name-First: Stephen<br>Author-X-Name-Last: Redding<br>Author-Email: s.j.redding@lse.ac.uk<br>Author-Workplace-Name: Institute for Fiscal Studies and University College London<br>Author-Name:  John Van Reenen<br>Author-X-Name-First: John<br>Author-X-Name-Last:  Reenen<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Measuring the cost-effectiveness of an R&D tax credit for the UK<br>Journal: Fiscal Studies<br>Pages: 375-399<br>Issue: 3<br>Volume: 22<br>Year: 2001<br>Month: September<br>Abstract: This paper investigates the economic impact of the government&rsquo;s proposed new UK R&amp;D tax credit. We measure the benefit of the credit by the effect on value added in the short and long runs. This is simulated from existing econometric estimates of the tax-price elasticity of research and development (R&amp;D) and the effect of R&D on productivity. For the latter, we allow R&D to have an effect on technology transfer (catching up with the technological frontier) as well as innovation (pushing the frontier forward). We then compare the increase in value added to the likely exchequer costs of the programme under a number of scenarios. In the long run, the increase in GDP far outweighs the costs of the tax credit. The short-run effect is far smaller, with value added only exceeding cost if R&amp;D grows at or below the rate of inflation.<br>File-URL: http://www.ifs.org.ukhttp://www.ifs.org.uk/fs/articles/0047a.pdf<br>File-Format: application/pdf<br>File-Size: 245<br>Handle: RePEc:ifs:fistud:v:22:y:2001:i:3:p:375-399<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Nicholas Crafts<br>Author-X-Name-First: Nicholas<br>Author-X-Name-Last:  Crafts<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Mary O'Mahony<br>Author-X-Name-First: Mary<br>Author-X-Name-Last:  O'Mahony<br>Author-Email: <br>Author-Workplace-Name:<br>Title: A perspective on UK productivity performance <br>Journal: Fiscal Studies<br>Pages: 271-306<br>Issue: 3<br>Volume: 22<br>Year: 2001<br>Month: September<br>Abstract: &lt;p&gt;The paper reviews recent UK productivity performance using insights from new growth economics and its embodiment in growth accounting techniques. The sources of the UK labour productivity gap are found to differ across countries; broad capital per worker plays a larger part with regard to France and Germany while innovation matters more compared with the USA. The role of incentive structures is examined and the importance of competition as an antidote to agency problems in UK firms is highlighted. Current UK policy is reviewed and the need to address government as well as market failures is stressed. &lt;/p&gt;<br>Classification-JEL: D24, O47, O52. <br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.2001.tb00043.x/abstract<br>File-Format: application/pdf<br>File-Size: 281<br>Handle: RePEc:ifs:fistud:v:22:y:2001:i:3:p:271-306<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  James M. Poterba <br>Author-X-Name-First: James<br>Author-X-Name-Last:  <br>Author-Email: <br>Author-Workplace-Name:<br>Title: Annuity markets and retirement security <br>Journal: Fiscal Studies<br>Pages: 249-270.<br>Issue: 3<br>Volume: 22<br>Year: 2001<br>Month: September<br>Abstract: &lt;p&gt;The growing importance of defined contribution pension arrangements has drawn increased attention to the means by which retired people draw down their assets. Current UK law requires annuitisation of at least a fraction of defined contribution plan accumulations. Annuity markets have recently attracted some criticism with respect to pricing and the available range of product options. This paper describes a key feature of voluntary annuity markets: the presence of 'adverse selection'. This is the tendency of annuitants to live longer than non-annuitants, since individuals who know that they are likely to die soon do not purchase annuities. The paper presents information that quantifies the importance of adverse selection in the setting of private annuity prices and discusses the role of compulsory annuitisation requirements in reducing it. Requiring individuals to participate in the annuity market can reduce selection effects, at the cost of reducing individuals' range of retirement income options. &lt;/p&gt;<br>Classification-JEL: G22, G23, H55. <br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.2001.tb00042.x/abstract<br>File-Format: application/pdf<br>File-Size: 188<br>Handle: RePEc:ifs:fistud:v:22:y:2001:i:3:p:249-270.<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  John Van Reenen<br>Author-X-Name-First: John<br>Author-X-Name-Last:  Reenen<br>Author-Email: <br>Author-Workplace-Name:<br>Title: The new economy: reality and policy<br>Journal: Fiscal Studies<br>Pages: 307-336<br>Issue: 3<br>Volume: 22<br>Year: 2001<br>Month: September<br>Abstract: &lt;p&gt;This paper concerns the new economy (alias the knowledge-based economy). I examine the different meanings attached to the new economy term and the evidence surrounding it, concentrating on the upsurge in US productivity growth between 1995 and 2000. I argue that the reports of the death of the new economy have been greatly exaggerated. There is evidence that information technology has transformed the US economy and is thus likely to have a strong impact on the UK economy in coming years. I discuss how elements of public policy should adapt to these economic changes, both in terms of an overall framework and in applications to specific areas (technology policy, human capital policy, competition policy and industrial policy). The new economy is a place of hope and fear. The hope is that policy activism can cement in potential productivity gains; the fear is that government actions will not mitigate the seemingly ineluctable pressures towards social exclusion.&lt;/p&gt;<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.2001.tb00044.x/abstract<br>File-Format: application/pdf<br>File-Size: 257<br>Handle: RePEc:ifs:fistud:v:22:y:2001:i:3:p:307-336<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name: Tim Besley<br>Author-X-Name-First: Tim<br>Author-X-Name-Last: Besley<br>Author-Email: t.besley@lse.ac.uk<br>Author-Workplace-Name: Institute for Fiscal Studies and London School of Economics<br>Title: From micro to macro: public policies and aggregate economic performance<br>Journal: Fiscal Studies<br>Pages: 357-374<br>Issue: 3<br>Volume: 22<br>Year: 2001<br>Month: September<br>Abstract: &lt;p&gt;This paper provides an overview of the link between policy and economic growth. It stresses that while growth, as measured and discussed, is a macroeconomic phenomenon, the best available evidence of policy effectiveness is typically from studies using micro data. It also reiterates the message that divergence between private and social returns is a key part of the evidence needed to discuss what kinds of policy intervention are desirable.&lt;/p&gt;<br>Classification-JEL: D90, H30<br>Keywords: economic growth, microeconomic policy<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.2001.tb00046.x/abstract<br>File-Format: application/pdf<br>File-Size: 183<br>Handle: RePEc:ifs:fistud:v:22:y:2001:i:3:p:357-374<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Carol Propper <br>Author-X-Name-First: Carol<br>Author-X-Name-Last:  <br>Author-Email: <br>Author-Workplace-Name:<br>Title: Expenditure on healthcare in the UK: a review of the issues <br>Journal: Fiscal Studies<br>Pages: 151-183<br>Issue: 2<br>Volume: 22<br>Year: 2001<br>Month: June     <br>Abstract: &lt;p&gt;This review examines the performance of the UK healthcare system. After presenting data on the level and distribution of resources, three topics are examined. The first is the lessons from international comparisons of evidence on expenditure, equity and healthcare outcomes. The second is the lessons from the recent internal market reforms. The third is the lessons from an analysis of the role for private finance in UK healthcare. The review concludes that economists and policymakers need to focus more attention on the relationship between healthcare inputs - expenditure - and health outcomes, and, within this, on the incentives facing suppliers and demanders of healthcare. &lt;/p&gt;<br>Classification-JEL: I1, H4. <br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.2001.tb00037.x/abstract<br>File-Format: application/pdf<br>File-Size: 242<br>Handle: RePEc:ifs:fistud:v:22:y:2001:i:2:p:151-183<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Melinda Acutt<br>Author-X-Name-First: Melinda<br>Author-X-Name-Last:  Acutt<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Caroline Elliott <br>Author-X-Name-First: Caroline<br>Author-X-Name-Last:  <br>Author-Email: <br>Author-Workplace-Name:<br>Title: Symposium on regulation and competition in utility industries: introduction <br>Journal: Fiscal Studies<br>Pages: 185-187<br>Issue: 2<br>Volume: 22<br>Year: 2001<br>Month: June     <br>Abstract: &lt;p&gt;This collection of papers examines regulation and competition issues in the UK water, gas and electricity industries. These are three vitally important network industries that have undergone significant structural change over the last 15 years and where efforts to extend competition continue in those parts of the industries not deemed to be naturally monopolistic. This is a timely collection, given recent price reviews of the electricity distribution and water companies and the current Transco review. Further, current regulatory issues, such as implementation of the 2000 Utilities Act and the possible structural changes to water companies as some attempt to move away from the equity model, have far-reaching implications. A significant length of time has elapsed since the burst of privatisation activity in the 1980s, and most companies have been subject to two price reviews. As such, it is an appropriate time to reflect on the UK experience from which lessons are being drawn as regulatory regimes are designed and implemented around the world. &lt;/p&gt;<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.2001.tb00038.x/abstract<br>File-Format: application/pdf<br>File-Size: 90<br>Handle: RePEc:ifs:fistud:v:22:y:2001:i:2:p:185-187<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  John W. Sawkins <br>Author-X-Name-First: John<br>Author-X-Name-Last:  <br>Author-Email: <br>Author-Workplace-Name:<br>Title: The development of competition in the English and Welsh water and sewerage industry .<br>Journal: Fiscal Studies<br>Pages: 189-215<br>Issue: 2<br>Volume: 22<br>Year: 2001<br>Month: June     <br>Abstract: &lt;p&gt;This paper examines the introduction of competition into the English and Welsh water and sewerage industry following privatisation of the 10 regional water authorities in 1989. It outlines the development of comparative, capital and product market competition, arguing that the greatest opportunities now lie with the last through the introduction of common carriage agreements, the extension of Inset appointments and the introduction of transferable abstraction licences. Despite competitive innovations, the industry remains highly regulated, complex and difficult to enter. One of Ofwat's outstanding challenges for the next decade is to examine the means by which the regulatory burden might be lightened and barriers to entry lowered, to encourage potential entrants to compete with incumbents. &lt;/p&gt;<br>Classification-JEL: L9<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.2001.tb00039.x/abstract<br>File-Format: application/pdf<br>File-Size: 217<br>Handle: RePEc:ifs:fistud:v:22:y:2001:i:2:p:189-215<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  David Hawdon<br>Author-X-Name-First: David<br>Author-X-Name-Last:  Hawdon<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Nicola Stevens <br>Author-X-Name-First: Nicola<br>Author-X-Name-Last:  <br>Author-Email: <br>Author-Workplace-Name:<br>Title: Regulatory reform in the UK gas market: the case of the storage auction<br>Journal: Fiscal Studies<br>Pages: 217-232.<br>Issue: 2<br>Volume: 22<br>Year: 2001<br>Month: June     <br>Abstract: &lt;p&gt;The UK gas industry has undergone major changes since it was privatised in 1986 as a fully integrated monopoly. The most significant of these has occurred not as a result of the privatisation legislation but by the intervention of the ordinary competition authorities in support of an active industry regulator. While price capping continues to be used as the primary instrument for welfare protection against the still substantial monopolistic powers of the incumbent, new competition (which has been positively encouraged) has had the greater impact on prices and choice. Recently, however, the regulator has encouraged the use of auctions for the sale of storage capacity. This paper considers the merits of auctions and makes a tentative evaluation of their effectiveness. Further use of auctions is recommended but reserve prices are considered inappropriate where monopoly power still remains. &lt;/p&gt;<br>Classification-JEL: L51, L95, L97. <br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.2001.tb00040.x/abstract<br>File-Format: application/pdf<br>File-Size: 168<br>Handle: RePEc:ifs:fistud:v:22:y:2001:i:2:p:217-232.<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Thomas Weyman-Jones <br>Author-X-Name-First: Thomas<br>Author-X-Name-Last:  <br>Author-Email: <br>Author-Workplace-Name:<br>Title: Yardstick and incentive issues in UK electricity distribution price controls <br>Journal: Fiscal Studies<br>Pages: 233-247<br>Issue: 2<br>Volume: 22<br>Year: 2001<br>Month: June     <br>Abstract: &lt;p&gt;Electricity distribution is a primary candidate for regulation since it is a natural monopoly whose costs it would be inefficient to duplicate in a competitive market. In the UK since privatisation of the electricity industry in 1990, this regulation has emphasised incentives for cost efficiency through the use of RPI-X price capping applied to 14 regional distribution businesses. The paper examines the issues that have arisen in implementation, including the practice of bench-marking the operating and capital expenditures of different companies. It analyses how the price set at the beginning of each review period depends on the determination of cost yardsticks, the weighted average cost of capital and the regulatory asset base of the companies. The analytical model is used to evaluate Ofgem's 1999 Distribution Price Control Review and compares it with other European distribution price regulations. &lt;/p&gt;<br>Classification-JEL: L51, L94<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.2001.tb00041.x/abstract<br>File-Format: application/pdf<br>File-Size: 165<br>Handle: RePEc:ifs:fistud:v:22:y:2001:i:2:p:233-247<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Ann Dryden Witte<br>Author-X-Name-First: Ann<br>Author-X-Name-Last:  Witte<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Robert Witt <br>Author-X-Name-First: Robert<br>Author-X-Name-Last:  <br>Author-Email: <br>Author-Workplace-Name:<br>Title: What we spend and what we get: Public and private provision of crime prevention and criminal justice<br>Journal: Fiscal Studies<br>Pages: 1-40<br>Issue: 1<br>Volume: 22<br>Year: 2001<br>Month: March    <br>Abstract: &lt;p&gt;In this paper, we consider a number of issues regarding crime prevention and criminal justice. We begin by considering how crime is measured and present both general and specific evidence on the level of crime in a variety of countries. Crime is pervasive and varies substantially across countries. We outline the arguments for some public role in crime prevention, enforcement, prosecution, defence, adjudication and punishment. We consider the relative roles of the public and private sectors in crime control and criminal justice. We discuss various measures for the effectiveness of the criminal justice system. We conclude by suggesting some potential areas for research. &lt;/p&gt;<br>Classification-JEL: H5, K14, K42.<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.2001.tb00033.x/abstract<br>File-Format: application/pdf<br>File-Size: 277<br>Handle: RePEc:ifs:fistud:v:22:y:2001:i:1:p:1-40<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Andr&aacute; Decoster<br>Author-X-Name-First: Andr&aacute;<br>Author-X-Name-Last:  Decoster<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Guy Van Camp<br>Author-X-Name-First: Guy<br>Author-X-Name-Last:  Camp<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Redistributive effects of the shift from personal income taxes to indirect taxes: Belgium 1988-93.<br>Journal: Fiscal Studies<br>Pages: 79-106<br>Issue: 1<br>Volume: 22<br>Year: 2001<br>Month: March    <br>Abstract: &lt;p&gt;Between 1988 and 1993, the Belgian personal income tax system and the indirect tax system were reformed to a considerable extent. We use microsimulation models to investigate the impact of the reform on the liability progression and the redistributive effect of the combined tax system. The redistributive effect of personal income taxes decreased, notwithstanding an increase in liability progression. For indirect taxes, both the liability regressivity and the reverse redistributive effect have been enhanced. We use recently developed statistical tests to gauge the significance of the observed changes. &lt;/p&gt;&lt;p&gt;&lt;/p&gt;<br>Classification-JEL: D63, H24. <br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.2001.tb00035.x/abstract<br>File-Format: application/pdf<br>File-Size: 234<br>Handle: RePEc:ifs:fistud:v:22:y:2001:i:1:p:79-106<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Preetum Domah <br>Author-X-Name-First: Preetum<br>Author-X-Name-Last:  <br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Michael G. Pollitt <br>Author-X-Name-First: Michael<br>Author-X-Name-Last:  <br>Author-Email: <br>Author-Workplace-Name:<br>Title: The restructuring and privatisation of the electricity distribution and supply businesses in England and Wales: a social cost-benefit analysis<br>Journal: Fiscal Studies<br>Pages: 107-146<br>Issue: 1<br>Volume: 22<br>Year: 2001<br>Month: March    <br>Abstract: &lt;p&gt;&lt;p&gt;In December 1990, the 12 regional electricity companies - responsible for the distribution and supply of electricity in England and Wales - were privatised. For the first few years following privatisation, real prices, profits and costs in the industry rose. Following two Price Control Reviews, prices have now fallen sharply and there have been substantial reductions in costs and more recently in profits. This paper attempts to conduct a social cost-benefit analysis of the privatisation by examining actual and predicted falls in costs over the period to 2005. We conclude that the privatisation did yield significant net benefits but that these were unevenly distributed across time and groups in society. Relative to our preferred counterfactual, consumers experience slightly lower prices and the government gains &pound;5 billion in sale proceeds and net taxes. However, consumers begin to gain only from 2000. &lt;/p&gt;&lt;p&gt;&lt;/p&gt;&lt;p&gt;&lt;/p&gt;&lt;/p&gt;<br>Classification-JEL: H43, L94.<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.2001.tb00036.x/abstract<br>File-Format: application/pdf<br>File-Size: 282<br>Handle: RePEc:ifs:fistud:v:22:y:2001:i:1:p:107-146<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Nicholas Bloom<br>Author-X-Name-First: Nicholas<br>Author-X-Name-Last:  Bloom<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name: Rachel Griffith<br>Author-X-Name-First: Rachel<br>Author-X-Name-Last: Griffith<br>Author-Email: r.griffith@ifs.org.uk<br>Author-Workplace-Name: Institute for Fiscal Studies and University of Manchester<br>Title: The internationalisation of UK research and development<br>Journal: Fiscal Studies<br>Pages: 337-355<br>Issue: 3<br>Volume: 22<br>Year: 2001<br>Month: January  <br>Abstract: &lt;p&gt;&lt;/p&gt;<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.2001.tb00045.x/abstract<br>File-Format: application/pdf<br>File-Size: 203<br>Handle: RePEc:ifs:fistud:v:22:y:2001:i:3:p:337-355<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name: Mike Brewer<br>Author-X-Name-First: Mike<br>Author-X-Name-Last: Brewer<br>Author-Email: m.brewer@ifs.org.uk<br>Author-Workplace-Name: Institute for Fiscal Studies and ISER, Essex University<br>Title: Comparing in-work benefits and the reward to work for families with children in the US and the UK<br>Journal: Fiscal Studies<br>Pages: 41-77<br>Issue: 1<br>Volume: 22<br>Year: 2001<br>Month: January  <br>Abstract: &lt;p&gt;The income transfer systems for low-income families in the US and the UK try both to reduce poverty and to encourage work. In-work benefits are a key part of both countries' strategies through the earned income tax credit and the working families' tax credit (and predecessors)respectively. But tax credits are only one part of the whole tax and welfare system. In-work benefits, taxes and welfare benefits combine in both countries to provide good financial incentives for lone parents to do minimum-wage work, but poorer incentives to increase earnings further. But direct comparisons of budget constraints hide important points of detail. First, not enough is known about what determines take-up of in-work benefits. Second, the considerable differences in assessment and payment mechanisms and frequency between EITC and WFTC mean that low-income families in the US and the UK may respond very differently to apparently similar financial incentives.&lt;/p&gt;<br>Keywords: welfare-to-work, New Deal, tax credits, in-work benefits<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.2001.tb00034.x/abstract<br>File-Format: application/pdf<br>File-Size: 287<br>Handle: RePEc:ifs:fistud:v:22:y:2001:i:1:p:41-77<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Clifford Winston <br>Author-X-Name-First: Clifford<br>Author-X-Name-Last:  <br>Author-Email: <br>Author-Workplace-Name:<br>Title: Government Failure in Urban Transportation <br>Journal: Fiscal Studies<br>Pages: 403-425<br>Issue: 4<br>Volume: 21<br>Year: 2000<br>Month: December <br>Abstract: &lt;p&gt;This paper assesses governmental performance in its investment, provision and regulation of urban transportation. Attention is given to public bus and rail transit and road transportation. Evidence based on urban transport in US cities reveals substantial allocative and technical inefficiencies that have led to large public transit deficits and severe highway congestion.&lt;/p&gt; &lt;/p&gt;&lt;p&gt;&lt;/p&gt;&lt;p&gt;&lt;P&gt;I argue that it is futile to expect public officials to remedy the situation by pursuing more efficient policies such as congestion pricing and weighing costs and benefits when deciding transit service. The problem is that urban transportation policy is largely shaped by entrenched political forces that inhibit constructive change. The only realistic way to improve the system is to shield it from those influences and expose it to market forces by privatising it. This position is supported by empirical evidence based on simulations for the US and the UK's early experience with privatisation. &lt;/p&gt;&lt;p&gt;&lt;/p&gt;<br>Classification-JEL: R4<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.2000.tb00030.x/abstract<br>File-Format: application/pdf<br>File-Size: 212<br>Handle: RePEc:ifs:fistud:v:21:y:2000:i:4:p:403-425<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Alessandra Guariglia<br>Author-X-Name-First: Alessandra<br>Author-X-Name-Last:  Guariglia<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Sheri Markose <br>Author-X-Name-First: Sheri<br>Author-X-Name-Last:  <br>Author-Email: <br>Author-Workplace-Name:<br>Title: Voluntary Contributions to Personal Pension Plans: Evidence from the British Household Panel Survey <br>Journal: Fiscal Studies<br>Pages: 469-488<br>Issue: 4<br>Volume: 21<br>Year: 2000<br>Month: December <br>Abstract: &lt;p&gt;In this paper, we use data from the British Household Panel Survey (BHPS) for the years 1992 to 1998 to study the determinants of saving in the form of voluntary contributions to personal pension plans (PPPs). We first estimate a probit model with selection for the probability of making these voluntary contributions. We then estimate a random-effects tobit regression for the amounts contributed and compare the results with those of a similar regression for conventional saving. Our findings suggest that voluntary contributions to PPPs are made essentially for retirement purposes, whereas conventional saving is undertaken for precautionary motives. The former type of saving is thus unlikely to offset the latter completely.&lt;/p&gt;<br>Classification-JEL: D12, D91, E21, I38, J32. <br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.2000.tb00032.x/abstract<br>File-Format: application/pdf<br>File-Size: 200<br>Handle: RePEc:ifs:fistud:v:21:y:2000:i:4:p:469-488<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Todd Sandler<br>Author-X-Name-First: Todd<br>Author-X-Name-Last:  Sandler<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  James C. Murdoch<br>Author-X-Name-First: James<br>Author-X-Name-Last:  Murdoch<br>Author-Email: <br>Author-Workplace-Name:<br>Title: On sharing NATO defence burdens in the 1990s and beyond <br>Journal: Fiscal Studies<br>Pages: 297-327<br>Issue: 3<br>Volume: 21<br>Year: 2000<br>Month: September<br>Abstract: &lt;p&gt;This article investigates NATO burden sharing in the 1990s in light of strategic, technological, political and membership changes. Both an ability-to-pay and a benefits-received analysis of burden sharing are conducted. During 1990-99, there is no evidence of disproportionate burden sharing, where the large allies shoulder the burdens of the small. Nevertheless, the theoretical model predicts that this disproportionality will plague NATO in the near future. Thus far, there is still a significant concordance between benefits received and defence burdens carried. When alternative expansion scenarios are studied, the extent of disproportionality of burden sharing increases as NATO grows in size. A broader security burden-sharing measure is devised and tested; based on this broader measure, there is still no disproportionality evident in the recent past. &lt;/p&gt;<br>Classification-JEL: D70, H56, H40 <br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.2000.tb00026.x/abstract<br>File-Format: application/pdf<br>File-Size: 231<br>Handle: RePEc:ifs:fistud:v:21:y:2000:i:3:p:297-327<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  David E. Sahn <br>Author-X-Name-First: David<br>Author-X-Name-Last:  <br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Stephen D. Younger <br>Author-X-Name-First: Stephen<br>Author-X-Name-Last:  <br>Author-Email: <br>Author-Workplace-Name:<br>Title: Expenditure incidence in Africa: microeconomic evidence <br>Journal: Fiscal Studies<br>Pages: 329-347<br>Issue: 3<br>Volume: 21<br>Year: 2000<br>Month: September<br>Abstract: &lt;p&gt;In this paper, we examine the progressivity of social sector expenditures in eight sub-Saharan African countries. We employ dominance tests, complemented by extended Gini/concentration coefficients, to determine whether health and education expenditures redistribute resources to the poor. We find that social services are poorly targeted. Among the services examined, primary education tends to be most progressive and university education is least progressive. The benefits associated with hospital care are also less progressive than other health facilities. Our results also show that, while concentration curves are a useful way to summarise information on the distributional benefits of government expenditures, statistical testing of differences in curves is important. &lt;/p&gt;<br>Classification-JEL: O1, H4, I3 <br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.2000.tb00027.x/abstract<br>File-Format: application/pdf<br>File-Size: 97<br>Handle: RePEc:ifs:fistud:v:21:y:2000:i:3:p:329-347<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Annick Hespel<br>Author-X-Name-First: Annick<br>Author-X-Name-Last:  Hespel<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Michel Mignolet <br>Author-X-Name-First: Michel<br>Author-X-Name-Last:  <br>Author-Email: <br>Author-Workplace-Name:<br>Title: Tax-aided financial services companies and the cost of capital <br>Journal: Fiscal Studies<br>Pages: 349-374<br>Issue: 3<br>Volume: 21<br>Year: 2000<br>Month: September<br>Abstract: &lt;p&gt;Over the past two decades, the governments of several European countries have implemented special tax devices to attract the finance centres of multinational companies. This paper determines how the cost of capital for investments made by multinationals is affected by the tax regimes, bringing into play the Irish financial services company, the Belgian co-ordination centre, the Dutch finance company and the Luxemburg company coupled with a Swiss finance branch. It gives evidence that intermediation of a tax-aided services company in the financing scheme of a foreign subsidiary provides an important tax saving. However, the home and source countries\' tax regimes influence the hierarchy of the less heavily taxed treasury and finance centres. The methodology relies on the marginal effective tax rates theory and consists of an extension of Alworth's (1988) model to include treasury centres.&lt;/p&gt;<br>Classification-JEL: F23, G32, H25, H73 <br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.2000.tb00028.x/abstract<br>File-Format: application/pdf<br>File-Size: 125<br>Handle: RePEc:ifs:fistud:v:21:y:2000:i:3:p:349-374<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Michaela Benzeval<br>Author-X-Name-First: Michaela<br>Author-X-Name-Last:  Benzeval<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name: Jayne Taylor<br>Author-X-Name-First: Jayne<br>Author-X-Name-Last: Taylor<br>Author-Email: <br>Author-Workplace-Name: Institute for Fiscal Studies<br>Author-Name:  Ken Judge<br>Author-X-Name-First: Ken<br>Author-X-Name-Last:  Judge<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Evidence on the relationship between low income and poor health: is the government doing enough?<br>Journal: Fiscal Studies<br>Pages: 375-399<br>Issue: 3<br>Volume: 21<br>Year: 2000<br>Month: September<br>Abstract: &lt;p&gt;The government's report, &lt;i&gt;Opportunity for All: Tackling Poverty and Social Exclusion&lt;/i&gt; (Department of Social Security, 1999), identified poor health as one of the major problems associated with low income. However, much of the available evidence on the relationship between income and health is of little help in forming policies to reduce health inequalities, as it has tended to be based on cross-section surveys and is therefore unable to shed much light on causal effects. Here, we make use of two British longitudinal datasets to examine the longer-term influences of income on health within&lt;/p&gt;&lt;p&gt;a life-course perspective. We then use the results of our analysis to provide a brief critical assessment of the likely success of the government's anti-poverty strategy in reducing health inequalities. A more detailed assessment of government policy in this respect can be found in Benzeval et al. (forthcoming).&lt;/p&gt;<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.2000.tb00029.x/abstract<br>File-Format: application/pdf<br>File-Size: 29<br>Handle: RePEc:ifs:fistud:v:21:y:2000:i:3:p:375-399<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Sir Alan Peacock <br>Author-X-Name-First: Sir<br>Author-X-Name-Last:  <br>Author-Email: <br>Author-Workplace-Name:<br>Title: Public financing of the arts in England <br>Journal: Fiscal Studies<br>Pages: 171-205<br>Issue: 2<br>Volume: 21<br>Year: 2000<br>Month: June     <br>Abstract: &lt;p&gt;The paper describes the method, amount and composition of public financing of the arts and heritage services in England during the 1990s. This offers the background to a discussion of how far the rationale for government financing for such services can rely on arguments derived from welfare economics. The presence of 'market failure' has been widely accepted by successive governments and their advisers, but attempts to remove it have encountered the familiar problems of ensuring allocative and technical efficiency when production subsidies are the main policy instrument. Special attention is devoted to the policy dilemmas that are likely to arise in the years ahead in the performing arts, heritage and broadcasting. &lt;/p&gt;<br>Classification-JEL: H3, H4, I3, Z1<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.2000.tb00022.x/abstract<br>File-Format: application/pdf<br>File-Size: 152<br>Handle: RePEc:ifs:fistud:v:21:y:2000:i:2:p:171-205<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Fabrizio Balassone<br>Author-X-Name-First: Fabrizio<br>Author-X-Name-Last:  Balassone<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Daniele Franco <br>Author-X-Name-First: Daniele<br>Author-X-Name-Last:  <br>Author-Email: <br>Author-Workplace-Name:<br>Title: Public investment, the Stability Pact and the 'golden rule' <br>Journal: Fiscal Studies<br>Pages: 207-229<br>Issue: 2<br>Volume: 21<br>Year: 2000<br>Month: June     <br>Abstract: &lt;p&gt;The fiscal rules set in the Treaty of Maastricht and in the Stability and Growth Pact have sometimes been criticised as an excessively binding constraint for appropriate counter-cyclical action. The risk that the rules may permanently reduce the public sector's contribution to capital accumulation has also been pointed out. In this framework, the adoption of a 'golden rule' has been suggested. Starting from the recent debate, this paper tackles two questions: (a) the implications of the Pact for public investment and (b) the pros and cons of introducing a golden rule in EMU's fiscal framework, given the objectives of low public debts and adequate margins for a stabilising budgetary policy. The analysis suggests that the rules set in the Treaty and in the Pact may negatively influence public investment spending. However, the golden rule, although intuitively appealing, does not seem to be an appropriate solution to the problem.&lt;/p&gt;<br>Classification-JEL: H54, H6, E61 <br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.2000.tb00023.x/abstract<br>File-Format: application/pdf<br>File-Size: 114<br>Handle: RePEc:ifs:fistud:v:21:y:2000:i:2:p:207-229<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Glen Bramley <br>Author-X-Name-First: Glen<br>Author-X-Name-Last:  <br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Martin Evans <br>Author-X-Name-First: Martin<br>Author-X-Name-Last:  <br>Author-Email: <br>Author-Workplace-Name:<br>Title: Getting the smaller picture: small-area analysis of public expenditure incidence and deprivation in three English cities <br>Journal: Fiscal Studies<br>Pages: 231-267<br>Issue: 2<br>Volume: 21<br>Year: 2000<br>Month: June     <br>Abstract: &lt;p&gt;This paper examines public expenditure incidence at small-area level in cities. The motivations for such research are briefly reviewed. The article reports on an attempt at measuring public expenditure across the majority of programmes down to the level of Census wards and the actual results obtained for three urban local authorities in England. The relationship between spending, income and deprivation is examined overall and for particular spending programmes, using a number of approaches including regression-based expenditure models. The conclusions suggest that spending is indeed targetted on poorer areas but raise questions about both the strength of this relationship and how best to measure deprivation and the need to spend.&lt;/p&gt;<br>Classification-JEL: H50, I32, I38, R51 <br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.2000.tb00024.x/abstract<br>File-Format: application/pdf<br>File-Size: 155<br>Handle: RePEc:ifs:fistud:v:21:y:2000:i:2:p:231-267<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Tullio Jappelli<br>Author-X-Name-First: Tullio<br>Author-X-Name-Last:  Jappelli<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Luigi Pistaferri <br>Author-X-Name-First: Luigi<br>Author-X-Name-Last:  <br>Author-Email: <br>Author-Workplace-Name:<br>Title: The dynamics of household wealth accumulation in Italy <br>Journal: Fiscal Studies<br>Pages: 269-295<br>Issue: 2<br>Volume: 21<br>Year: 2000<br>Month: June     <br>Abstract: &lt;p&gt;We examine the dynamics of wealth accumulation distribution in Italy using data drawn from the Survey of Household Income and Wealth, a representative survey of the Italian population conducted by the Bank of Italy. We compare survey data with National Accounts data and discuss sample representativeness, attrition and measurement issues. We then look at wealth inequality (the cross-sectional dispersion of wealth) and wealth mobility (individual transitions across the wealth distribution) and examine the age profile of wealth using repeated cross-sectional data. Finally, we consider various explanations for the pattern of wealth accumulation in Italy, focusing on retirement, bequests, income risk, health shocks and credit market imperfections. &lt;/p&gt;<br>Classification-JEL: H50, I32, I38, R51 <br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.2000.tb00025.x/abstract<br>File-Format: application/pdf<br>File-Size: 151<br>Handle: RePEc:ifs:fistud:v:21:y:2000:i:2:p:269-295<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name: James Banks<br>Author-X-Name-First: James<br>Author-X-Name-Last: Banks<br>Author-Email: j.banks@ifs.org.uk<br>Author-Workplace-Name: Institute for Fiscal Studies and University of Manchester<br>Author-Name: Carl Emmerson<br>Author-X-Name-First: Carl<br>Author-X-Name-Last: Emmerson<br>Author-Email: c.emmerson@ifs.org.uk<br>Author-Workplace-Name: Institute for Fiscal Studies<br>Title: Public and private pension spending: principles, practice and the need for reform<br>Journal: Fiscal Studies<br>Pages: 1-63<br>Issue: 1<br>Volume: 21<br>Year: 2000<br>Month: March    <br>Abstract: &lt;p&gt;This paper surveys the issue of public spending on pensions. Drawing on evidence from systems around the world, but particularly in Britain, we outline the arguments for different types of public and private provision of pension income and consider how far they go towards meeting the objectives of pension provision. We discuss past trends in spending and look at future projections.&lt;/p&gt;<br>Classification-JEL: H55<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.2000.tb00579.x/abstract<br>File-Format: application/pdf<br>File-Size: 288<br>Handle: RePEc:ifs:fistud:v:21:y:2000:i:1:p:1-63<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name: Carl Emmerson<br>Author-X-Name-First: Carl<br>Author-X-Name-Last: Emmerson<br>Author-Email: c.emmerson@ifs.org.uk<br>Author-Workplace-Name: Institute for Fiscal Studies<br>Author-Name:  Sarah Tanner<br>Author-X-Name-First: Sarah<br>Author-X-Name-Last:  Tanner<br>Author-Email: <br>Author-Workplace-Name:<br>Title: A note on the tax treatment of private pensions and Individual Savings Accounts<br>Journal: Fiscal Studies<br>Pages: 65-74<br>Issue: 1<br>Volume: 21<br>Year: 2000<br>Month: March    <br>Abstract: &lt;p&gt;The UK government is planning to introduce stakeholder pensions from April 2001 as an alternative to existing personal pensions for people on moderate earnings. But stakeholder pensions are only one way to save for retirement; the new tax-free Individual Savings Account (ISA) is another. This note compares the tax treatments of pensions and ISAs and assesses the conditions under which the tax treatment of private pensions is more generous than that of an ISA to a basic-rate taxpayer - the typical target for stakeholder pensions. The abolition of dividend tax credits paid to pension funds in July 1997 reduced the relatively tax-favoured position of pensions, but the tax-free lump sum means that private pensions continue to be a tax-favoured form of saving at most reasonable rates of return. We show that employer contributions to private pensions are particularly tax-favoured.&lt;/p&gt;<br>Classification-JEL: H24<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.2000.tb00580.x/abstract<br>File-Format: application/pdf<br>File-Size: 51<br>Handle: RePEc:ifs:fistud:v:21:y:2000:i:1:p:65-74<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name: Richard Blundell<br>Author-X-Name-First: Richard<br>Author-X-Name-Last: Blundell<br>Author-Email: r.blundell@ucl.ac.uk<br>Author-Workplace-Name: Institute for Fiscal Studies and University College London<br>Author-Name: Alan Duncan<br>Author-X-Name-First: Alan<br>Author-X-Name-Last: Duncan<br>Author-Email: a.duncan@ifs.org.uk<br>Author-Workplace-Name: Institute for Fiscal Studies and NATSEM, University of Canberra<br>Author-Name: Julian McCrae<br>Author-X-Name-First: Julian<br>Author-X-Name-Last: McCrae<br>Author-Email: <br>Author-Workplace-Name: Institute for Fiscal Studies<br>Author-Name: Costas Meghir<br>Author-X-Name-First: Costas<br>Author-X-Name-Last: Meghir<br>Author-Email: c.meghir [at] yale.edu@ifs.org.uk<br>Author-Workplace-Name: Institute for Fiscal Studies and Yale University<br>Title: The labour market impact of the working families' tax credit<br>Journal: Fiscal Studies<br>Pages: 75-103<br>Issue: 1<br>Volume: 21<br>Year: 2000<br>Month: March    <br>Abstract: &lt;p&gt;In October 1999, the working families' tax credit (WFTC) replaced family credit as the main&lt;/p&gt;&lt;p&gt;package of in-work support for families with children. Among a range of stated aims, the WFTC is intended to '... improve work incentives, encouraging people without work to move into employment'. In this paper, we consider the impact of WFTC on hours and participation. To&lt;/p&gt;&lt;p&gt;simulate labour supply responses, we use a discrete behavioural model of household labour supply with controls for fixed and childcare costs, and unobserved heterogeneity. In simulation, we&lt;/p&gt;&lt;p&gt;experiment with a number of scenarios regarding the take-up of the credit, entry wage level and&lt;/p&gt;&lt;p&gt;hourly childcare price. We find participation rates among single mothers to increase by around 2.2 percentage points for the base-case scenario, while for married women participation rates are&lt;/p&gt;&lt;p&gt;modelled to fall. Our simulation results indicate a small increase in overall participation of around 30,000 individuals.&lt;/p&gt;<br>Classification-JEL: C25, H31, J22<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.2000.tb00581.x/abstract<br>File-Format: application/pdf<br>File-Size: 122<br>Handle: RePEc:ifs:fistud:v:21:y:2000:i:1:p:75-103<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name: Ian Walker<br>Author-X-Name-First: Ian<br>Author-X-Name-Last: Walker<br>Author-Email: ian.walker@lancaster.ac.uk<br>Author-Workplace-Name: Institute for Fiscal Studies and Lancaster University<br>Author-Name: Gillian Paull<br>Author-X-Name-First: Gillian<br>Author-X-Name-Last: Paull<br>Author-Email: gill_p@ifs.org.uk<br>Author-Workplace-Name: Institute for Fiscal Studies<br>Author-Name:  Yu Zhu<br>Author-X-Name-First: Yu<br>Author-X-Name-Last:  Zhu<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Child support reform: some analysis of the 1999 White Paper<br>Journal: Fiscal Studies<br>Pages: 105-140<br>Issue: 1<br>Volume: 21<br>Year: 2000<br>Month: March    <br>Abstract: &lt;p&gt;This paper uses a sample of lone mothers (and former lone mothers who are now repartnered) drawn from the 1997 Family Resources Survey to analyse the potential effects of reforming the UK system of child support. The main deficiency of the data is that non-resident fathers cannot be&lt;/p&gt;&lt;p&gt;matched to the mothers in the data, and this is overcome by exploiting information from another&lt;/p&gt;&lt;p&gt;dataset which gives the joint distribution of the characteristics of separated parents. The effects of reforming the child support system are simulated for the amount of maintenance liabilities, the amount paid and the net incomes of households containing mothers-with-care and of households containing non-resident fathers. The likely effects of the reform are simulated at various levels of compliance. The analysis highlights the need for further research into the incentive effects of child support on individual behaviour.&lt;/p&gt;<br>Classification-JEL: J30<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.2000.tb00582.x/abstract<br>File-Format: application/pdf<br>File-Size: 195<br>Handle: RePEc:ifs:fistud:v:21:y:2000:i:1:p:105-140<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name: Gareth Myles<br>Author-X-Name-First: Gareth<br>Author-X-Name-Last: Myles<br>Author-Email: g.d.myles@ex.ac.uk<br>Author-Workplace-Name: Institute for Fiscal Studies and University of Exeter<br>Title: Taxation and economic growth <br>Journal: Fiscal Studies<br>Pages: 141-168<br>Issue: 1<br>Volume: 21<br>Year: 2000<br>Month: March    <br>Abstract: &lt;p&gt;The development of endogenous growth theory has opened an avenue through which the effects of taxation on economic growth can be explored. Explicit modelling of the individual decisions that contribute to growth allows the analysis of tax incidence and the prediction of growth effects. This paper reviews the theoretical and empirical evidence to assess whether a consensus arises as to how taxation affects the rate of economic growth. It is shown that the theoretical models isolate a number of channels through which taxation can affect growth and that these effects may be very substantial. Although empirical tests of the growth effect face unresolved difficulties, the empirical evidence points very strongly to the conclusion that the tax effect is very weak. &lt;/p&gt;<br>Classification-JEL: E62, H20 <br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.2000.tb00583.x/abstract<br>File-Format: application/pdf<br>File-Size: 163<br>Handle: RePEc:ifs:fistud:v:21:y:2000:i:1:p:141-168<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name: Richard Blundell<br>Author-X-Name-First: Richard<br>Author-X-Name-Last: Blundell<br>Author-Email: r.blundell@ucl.ac.uk<br>Author-Workplace-Name: Institute for Fiscal Studies and University College London<br>Author-Name: Monica Costa Dias<br>Author-X-Name-First: Monica<br>Author-X-Name-Last: Costa Dias<br>Author-Email: monica_d(at)ifs.org.uk@ifs.org.uk<br>Author-Workplace-Name: Institute for Fiscal Studies and Institute for Fiscal Studies<br>Title: Evaluation methods for non-experimental data<br>Journal: Fiscal Studies<br>Pages: 427-468<br>Issue: 4<br>Volume: 21<br>Year: 2000<br>Month: January  <br>Abstract: &lt;p&gt;This paper presents a review of non-experimental methods for the evaluation of social programmes. We consider matching and selection methods and analyse each for cross-section, repeated cross-section and longitudinal data. The methods are assessed drawing on evidence from labour market programmes in the UK and in the US.&lt;/p&gt;<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.2000.tb00031.x/abstract<br>File-Format: application/pdf<br>File-Size: 299<br>Handle: RePEc:ifs:fistud:v:21:y:2000:i:4:p:427-468<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Jayasri Dutta<br>Author-X-Name-First: Jayasri<br>Author-X-Name-Last:  Dutta<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  James Sefton<br>Author-X-Name-First: James<br>Author-X-Name-Last:  Sefton<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Martin Weale<br>Author-X-Name-First: Martin<br>Author-X-Name-Last:  Weale<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Education and public policy <br>Journal: Fiscal Studies<br>Pages: 351-386<br>Issue: 4<br>Volume: 20<br>Year: 1999<br>Month: December <br>Abstract: &lt;p&gt;This article surveys the literature on education as a matter of public policy. We present international comparisons of expenditure on education and then discuss the contribution of education to economic growth, distinguishing between growth accounting and regression approaches, but concluding that the picture is still confused. We assess the risky nature of investment in higher education and also discuss the link between educational experience and social class. We show that this, when studied in aggregate, accounts for less than half of the persistence of earnings between fathers and sons but it nevertheless does a good job of relating father' and sons' occupations. Finally, we look at the link between education and earnings in the UK. For most subjects, the private return to university education has held at over 15 per cent p.a. despite the introduction of fees. However, some subjects offer a negative return. &lt;/p&gt;<br>Classification-JEL:  I20, J24, J31<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.1999.tb00017.x/abstract<br>File-Format: application/pdf<br>File-Size: 187<br>Handle: RePEc:ifs:fistud:v:20:y:1999:i:4:p:351-386<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name: Tom Clark<br>Author-X-Name-First: Tom<br>Author-X-Name-Last: Clark<br>Author-Email: <br>Author-Workplace-Name: Institute for Fiscal Studies<br>Author-Name: Jayne Taylor<br>Author-X-Name-First: Jayne<br>Author-X-Name-Last: Taylor<br>Author-Email: <br>Author-Workplace-Name: Institute for Fiscal Studies<br>Title: Income inequality: a tale of two cycles?<br>Journal: Fiscal Studies<br>Pages: 387-408<br>Issue: 4<br>Volume: 20<br>Year: 1999<br>Month: December <br>Abstract: &lt;p&gt;Building on previous work, this paper documents the changes in income inequality that have occurred over the past 20 years, right up until the late 1990s. In particular, we are interested in whether or not the path of inequality in the most recent economic cycle differed from that observed in the 1980s. The robustness of the results is investigated using innovative statistical techniques, in an attempt to identify whether or not the observed changes represent real increases or decreases in inequality or whether they can be attributed simply to sampling variation between years. Finally, some preliminary results are presented which attempt to identify some of the reasons underlying the observed trends in income inequality, with a particular focus on the role of the labour market.&lt;/p&gt;<br>Classification-JEL: D31<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.1999.tb00018.x/abstract<br>File-Format: application/pdf<br>File-Size: 101<br>Handle: RePEc:ifs:fistud:v:20:y:1999:i:4:p:387-408<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  David Collard<br>Author-X-Name-First: David<br>Author-X-Name-Last:  Collard<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Michael Godwin <br>Author-X-Name-First: Michael<br>Author-X-Name-Last:  <br>Author-Email: <br>Author-Workplace-Name:<br>Title: Compliance costs for employers: UK PAYE and National Insurance, 1995-96<br>Journal: Fiscal Studies<br>Pages: 423-449<br>Issue: 4<br>Volume: 20<br>Year: 1999<br>Month: December <br>Abstract: &lt;p&gt;This paper, based upon research financed by the Inland Revenue and the Contributions Agency of the DSS, presents calculations of the compliance costs for employers of PAYE and National Insurance in 1995-96. Total costs are estimated to have been of the order of &pound;1.3 billion. The costs are very unequally spread across employers, whether measured per employee or per pound of tax raised. They are particularly high for small new employers. For the largest employers, these costs may be offset by the cash-flow benefits of acting as tax collectors. The composition of labour and other costs is calculated and estimates are made of compliance costs under various payroll 'technologies'. The main determinants of compliance costs, for an employer, are analysed using weighted least-squares regression analysis. Finally, some policy implications are considered. &lt;/p&gt;<br>Classification-JEL: H2 <br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.1999.tb00020.x/abstract<br>File-Format: application/pdf<br>File-Size: 3182<br>Handle: RePEc:ifs:fistud:v:20:y:1999:i:4:p:423-449<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name: Kim Scharf<br>Author-X-Name-First: Kim<br>Author-X-Name-Last: Scharf<br>Author-Email: K.Scharf@warwick.ac.uk<br>Author-Workplace-Name: Institute for Fiscal Studies and University of Warwick<br>Title: Tax incentives for extraction and recycling of basic materials in Canada<br>Journal: Fiscal Studies<br>Pages: 451-477<br>Issue: 4<br>Volume: 20<br>Year: 1999<br>Month: December <br>Abstract: &lt;p&gt;This paper provides an empirical assessment of the overall incentives generated by taxes with respect to the choice between extraction and recycling of basic materials in Canada. We calculate measures of the overall impact of the Canadian tax system on the incremental cost of (i) producing virgin material or recycled material that is to be used as an intermediate input in the production of a final product and (ii) producing finished products. The sectors that we examine include producers of primary virgin material (forestry, mining, oil and gas), producers of recycled material (scrap dealers) and producers of finished products (metal, paper, plastic and glass). Our results indicate that the Canadian tax system significantly favours the use of virgin materials rather than recycled materials in the case of metal and glass products, but the reverse is true for plastic products.&lt;/p&gt;&lt;p&gt;Features in the Canadian tax system contributing to these findings are not limited to corporate income and mining tax incentives at the exploration and extraction stages of the production of virgin materials, but also include provincial sales taxes on capital, which are borne more heavily by scrap firms than by resource and manufacturing firms, and provincial sales taxes that apply to business inputs, which also fall more heavily upon the recycling sector. &lt;/p&gt;<br>Classification-JEL: H25, H32, Q31.<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.1999.tb00021.x/abstract<br>File-Format: application/pdf<br>File-Size: 201<br>Handle: RePEc:ifs:fistud:v:20:y:1999:i:4:p:451-477<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Paul Stoneman <br>Author-X-Name-First: Paul<br>Author-X-Name-Last:  <br>Author-Email: <br>Author-Workplace-Name:<br>Title: Government spending on research and development in the UK<br>Journal: Fiscal Studies<br>Pages: 223-259<br>Issue: 3<br>Volume: 20<br>Year: 1999<br>Month: September<br>Abstract: &lt;p&gt;This paper explores the extent of current UK government spending on science and technology placed in its recent historical context. The allocation of this spending across the different arms of government, the primary purposes of the expenditures undertaken and the extent to which the government performs as well as funds R&amp;D are also explored, with some international comparisons analysed. The political and institutional processes that determine the revealed patterns of expenditure in the UK, the rationales behind such spending and the aims and objectives of the main spending departments are discussed, as is the interaction with EU expenditures on science and technology. The effectiveness of or pay-off to government support of this kind is also considered before future spending plans are addressed.&lt;/p&gt;<br>Classification-JEL:  H, O<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.1999.tb00012.x/abstract<br>File-Format: application/pdf<br>File-Size: 152<br>Handle: RePEc:ifs:fistud:v:20:y:1999:i:3:p:223-259<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Neil Rickman<br>Author-X-Name-First: Neil<br>Author-X-Name-Last:  Rickman<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Paul Fenn<br>Author-X-Name-First: Paul<br>Author-X-Name-Last:  Fenn<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Alastair Gray <br>Author-X-Name-First: Alastair<br>Author-X-Name-Last:  <br>Author-Email: <br>Author-Workplace-Name:<br>Title: The reform of Legal Aid in England and Wales <br>Journal: Fiscal Studies<br>Pages: 261-286<br>Issue: 3<br>Volume: 20<br>Year: 1999<br>Month: September<br>Abstract: &lt;p&gt;Legal aid expenditure has risen dramatically in recent years, prompting attention from successive governments. A prominent theme of past and present government reform proposals has been the shifting of risk away from the taxpayer towards lawyers, clients and insurers by altering the means by which legal aid lawyers are paid. This paper explores this theme by presenting information on legal aid expenditure trends over the last two decades and then considering whether payment mechanisms have contributed to this performance. Finally, it reviews previous and current reform proposals in this area. It concludes that, because risk-shifting also alters incentives, it is essential that reform recognises and monitors these. &lt;/p&gt;<br>Classification-JEL: K40, L50<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.1999.tb00013.x/abstract<br>File-Format: application/pdf<br>File-Size: 123<br>Handle: RePEc:ifs:fistud:v:20:y:1999:i:3:p:261-286<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name: Ian Crawford<br>Author-X-Name-First: Ian<br>Author-X-Name-Last: Crawford<br>Author-Email: Ian.Crawford@economics.ox.ac.uk<br>Author-Workplace-Name: Institute for Fiscal Studies and University of Oxford<br>Author-Name:  Sarah Tanner<br>Author-X-Name-First: Sarah<br>Author-X-Name-Last:  Tanner<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Zoe Smith<br>Author-X-Name-First: Zoe<br>Author-X-Name-Last:  Smith<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Alcohol taxes, tax revenues and the Single European Market <br>Journal: Fiscal Studies<br>Pages: 287-304<br>Issue: 3<br>Volume: 20<br>Year: 1999<br>Month: September<br>Abstract: &lt;p&gt;This paper addresses the issue of whether tax revenue from alcohol lost through cross-border shopping could be recouped by cutting excise duties. This in turn depends on the elasticity of demand for alcohol. We use data from the Family Expenditure Survey 1978-96 to estimate own- and cross-price elasticities of demand for beer, wine and spirits before and after completion of the Single Market. We find no evidence of a significant change in elasticities after the Single Market. The tax rates on beer and wine are currently below their revenue-maximising rates, implying that a cut in the duty rate on beer or wine would lead to a decrease in indirect tax revenue from alcohol. We cannot reject that the current tax rate on spirits is at the revenue-maximising rate, implying that further increases in the duty on spirits are likely to cause indirect tax revenue to fall. &lt;/p&gt;<br>Classification-JEL: H21<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.1999.tb00014.x/abstract<br>File-Format: application/pdf<br>File-Size: 94<br>Handle: RePEc:ifs:fistud:v:20:y:1999:i:3:p:287-304<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Xavier Labandeira<br>Author-X-Name-First: Xavier<br>Author-X-Name-Last:  Labandeira<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Jos&eacute; M. Labeaga<br>Author-X-Name-First: Jos&eacute;<br>Author-X-Name-Last:  Labeaga<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Combining input-output analysis and micro-simulation to assess the effects of carbon taxation on Spanish households <br>Journal: Fiscal Studies<br>Pages: 305-320<br>Issue: 3<br>Volume: 20<br>Year: 1999<br>Month: September<br>Abstract: &lt;p&gt;This paper explores the effects of a tax levied on Spanish energy-related CO&lt;sub&gt;2&lt;/sub&gt; emissions. After justifying the relevance of carbon taxation in the Spanish context, we consider the introduction of a product (fossil-fuel) tax with a rate obtained through the 'actual damage cost' method. Our empirical analysis proceeds in two stages. First, we employ an input-output demand model to calculate the price changes after the introduction of carbon taxation. In a second stage, simulation with Spanish household micro-data for 1994 yields the environmental and economic effects of a Spanish carbon tax. We find a limited short-run reaction to the carbon tax, which hampers its environmental success. The carbon tax burden is, however, significant, with a proportional distribution across households. &lt;/p&gt;<br>Classification-JEL: C33, C67, H31, Q28.<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.1999.tb00015.x/abstract<br>File-Format: application/pdf<br>File-Size: 77<br>Handle: RePEc:ifs:fistud:v:20:y:1999:i:3:p:305-320<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  David Smith<br>Author-X-Name-First: David<br>Author-X-Name-Last:  Smith<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Graham Richardson <br>Author-X-Name-First: Graham<br>Author-X-Name-Last:  <br>Author-Email: <br>Author-Workplace-Name:<br>Title: The readability of Australia's taxation laws and supplemetary materials: an empirical investigation<br>Journal: Fiscal Studies<br>Pages: 321-349<br>Issue: 3<br>Volume: 20<br>Year: 1999<br>Month: September<br>Abstract: &lt;p&gt;Australian taxation law has been criticised for many years for its difficulty to read and understand. The Tax Law Improvement Project (TLIP) was established in December 1993 to rewrite in plain language Australia's income tax legislation. The primary purpose of this study is to test empirically the effectiveness of attempts at simplifying the Income Tax Assessment Act 1936 as amended. The study utilises empirical measures in analysing the level of readability of Australia's taxation laws. In doing so, it builds on earlier research, which applied similar methods in examining the New Zealand taxation simplification process. It was found that the sections of Income Tax Assessment Act 1997 sampled were slightly more readable than corresponding sections of Income Tax Assessment Act 1936 as amended, which is consistent with Wallschutzky's (1995) findings. Nevertheless, the results fall well short of acceptable bench-marks, suggesting that the goal of simplification has not been achieved. &lt;/p&gt;<br>Classification-JEL:  K34 <br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.1999.tb00016.x/abstract<br>File-Format: application/pdf<br>File-Size: 124<br>Handle: RePEc:ifs:fistud:v:20:y:1999:i:3:p:321-349<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  David M. Newbery<br>Author-X-Name-First: David<br>Author-X-Name-Last:  Newbery<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Georgina Santos <br>Author-X-Name-First: Georgina<br>Author-X-Name-Last:  <br>Author-Email: <br>Author-Workplace-Name:<br>Title: Road taxes, road user charges and earmarking <br>Journal: Fiscal Studies<br>Pages: 103-132<br>Issue: 2<br>Volume: 20<br>Year: 1999<br>Month: June     <br>Abstract: &lt;p&gt;The UK Road Fund was set up in 1921 and financed by earmarked taxes, but was unsuccessful as a form of road finance and abandoned in 1937. The paper examines why earmarking failed and what problems arise for replacing road taxes by hypothecated road charges. These charges would need to be regulated and could evolve into a more efficient system of road pricing. The paper claims that recent experiences with regulating capital-intensive network industries make road user charging and the commercialisation of the public highway both feasible and desirable, but that recent government proposals for local earmarked taxes are inadequate. &lt;/p&gt;&lt;p&gt;&lt;/p&gt;<br>Classification-JEL: H54, H11, R41, R48<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.1999.tb00006.x/abstract<br>File-Format: application/pdf<br>File-Size: 146<br>Handle: RePEc:ifs:fistud:v:20:y:1999:i:2:p:103-132<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Andreas Haufler <br>Author-X-Name-First: Andreas<br>Author-X-Name-Last:  <br>Author-Email: <br>Author-Workplace-Name:<br>Title: Prospects for co-ordination of corporate taxation and the taxation of interest income in the EU <br>Journal: Fiscal Studies<br>Pages: 133-153<br>Issue: 2<br>Volume: 20<br>Year: 1999<br>Month: June     <br>Abstract: &lt;p&gt;This paper evaluates the recent proposals for a co-ordinated capital tax policy in the European Union, focusing on an EU-wide minimum withholding tax on interest income and alternative ways to increase the effective tax rate on corporate profits. The analysis draws on current theoretical and empirical research and views the recent capital tax reforms undertaken by individual member countries as rational adjustments to changing conditions in capital markets. Special emphasis is placed on the constraints for EU tax policy imposed by the possibility of shifting capital income to third countries. The paper concludes that some aggregate efficiency gains can be expected from the EU co-ordination proposals, but additional tax collections will be limited largely to the group of small savers while highly mobile large-scale investors are likely to avoid the EU tax. &lt;/p&gt;<br>Classification-JEL: H24, H25, H87<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.1999.tb00007.x/abstract<br>File-Format: application/pdf<br>File-Size: 98<br>Handle: RePEc:ifs:fistud:v:20:y:1999:i:2:p:133-153<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name: Michael Devereux<br>Author-X-Name-First: Michael<br>Author-X-Name-Last: Devereux<br>Author-Email: michael.devereux@sbs.ox.ac.uk<br>Author-Workplace-Name: Institute for Fiscal Studies and University of Oxford<br>Title: Prospects for co-ordination of corporate taxation and the taxation of interest income in the EU: a comment<br>Journal: Fiscal Studies<br>Pages: 155-161<br>Issue: 2<br>Volume: 20<br>Year: 1999<br>Month: June     <br>Abstract: &lt;p&gt;After a break of a few years, the European Union has recently again become active in the area of co-ordinating capital income taxes between Member States. In December 1997, the Council of Finance Ministers agreed to establish a highlevel Working Party to implement a Code of Conduct on business taxation. In March 1998, the Commission proposed a revised draft of the 1990 Directive to liminate withholding taxes on interest and royalty payments between associated companies within the EU. In May 1998, the Commission proposed a Directive designed to ensure minimum effective taxation of savings income within the EU,&lt;/p&gt;&lt;p&gt;by ensuring that all Member States either apply a withholding tax of at least 20 per cent on cross-border interest payments to EU-resident individuals or provide information on interest income to other Member States.&lt;/p&gt;<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.1999.tb00008.x/abstract<br>File-Format: application/pdf<br>File-Size: 29<br>Handle: RePEc:ifs:fistud:v:20:y:1999:i:2:p:155-161<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Paul Gregg<br>Author-X-Name-First: Paul<br>Author-X-Name-Last:  Gregg<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Susan Harkness <br>Author-X-Name-First: Susan<br>Author-X-Name-Last:  <br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Stephen Machin <br>Author-X-Name-First: Stephen<br>Author-X-Name-Last:  <br>Author-Email: <br>Author-Workplace-Name:<br>Title: Poor kids: trends in child poverty in Britain, 1968-96 <br>Journal: Fiscal Studies<br>Pages: 163-187<br>Issue: 2<br>Volume: 20<br>Year: 1999<br>Month: June     <br>Abstract: &lt;p&gt;According to Family Expenditure Survey (FES) data, child poverty (with a poverty line defined at half mean equivalised household income) has risen markedly in Britain in the last 30 years. By 1995-96, around one in three - or 4.3 million - children were living in poor households. This compares with child poverty rates of one in ten, corresponding to 1.4 million children, in 1968. &lt;/p&gt;&lt;p&gt;The employment position of the household is seen to be important, with over half of poor children in 1995-96 living in households with no adults in work. If an absolute, rather than a relative, poverty line is utilised, child poverty remains stagnant since the late 1970s, following a period of rapid decline from 1968, despite considerable rises in average living standards. This reveals that the income position of households with children has been falling relative to that of childless households over time. Finally, looking at expenditure patterns and comparing their trends with income-based poverty measures tends to reinforce these findings. &lt;/p&gt;<br>Classification-JEL: I3, D1<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.1999.tb00009.x/abstract<br>File-Format: application/pdf<br>File-Size: 114<br>Handle: RePEc:ifs:fistud:v:20:y:1999:i:2:p:163-187<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Margaret E. Atkinson<br>Author-X-Name-First: Margaret<br>Author-X-Name-Last:  Atkinson<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  John Creedy <br>Author-X-Name-First: John<br>Author-X-Name-Last:  <br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  David M. Knox <br>Author-X-Name-First: David<br>Author-X-Name-Last:  <br>Author-Email: <br>Author-Workplace-Name:<br>Title: Some implications of changing the tax basis for pension funds <br>Journal: Fiscal Studies<br>Pages: 189-203<br>Issue: 2<br>Volume: 20<br>Year: 1999<br>Month: June     <br>Abstract: &lt;p&gt;Governments in many developed economies provide private pension plans with significant taxation incentives. However, as many retirement income systems are now being reviewed due to demographic, social and economic pressures, these taxation arrangements are also under scrutiny. This paper discusses some of the implications of the differences between the traditional taxation treatment adopted by most OECD nations and that adopted by Australia, where there is a tax on contributions, a tax on investment earnings and a tax on benefits. The results show that there are significant differences in the net value of the benefits received by individuals and the taxation revenue received by the government. On the other hand, it is shown that there is remarkably little to distinguish between the two tax structures in terms of summary measures of lifetime income, although the form in which the benefit is taken in retirement is significant in influencing intragenerational equity. &lt;/p&gt;<br>Classification-JEL: D31, E27<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.1999.tb00010.x/abstract<br>File-Format: application/pdf<br>File-Size: 67<br>Handle: RePEc:ifs:fistud:v:20:y:1999:i:2:p:189-203<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Alain Cuenca <br>Author-X-Name-First: Alain<br>Author-X-Name-Last:  <br>Author-Email: <br>Author-Workplace-Name:<br>Title: Transfers in Spanish state retirement pensions <br>Journal: Fiscal Studies<br>Pages: 205-219<br>Issue: 2<br>Volume: 20<br>Year: 1999<br>Month: June     <br>Abstract: &lt;p&gt;A central issue in the recent reforms of state pensions in Spain has been to increase the proportionality between contributions and benefits along actuarially fair lines. The aim of this paper is to quantify the transfer component of social security retirement pensions, with transfer being understood as the difference between the pension effectively received and that which would be received under a system of actuarial fairness. The analysis is placed within a life-cycle framework, with particular reference to the distributive effects by income level. The results show that, in the past, there was a marked bias in favour of the objective of intergenerational and intragenerational redistribution, to the detriment of the objective of income insurance. This paper examines the factors that determine the final value of the transfer component within the entire Spanish pensions system. &lt;/p&gt;<br>Classification-JEL: D31, H55. <br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.1999.tb00011.x/abstract<br>File-Format: application/pdf<br>File-Size: 72<br>Handle: RePEc:ifs:fistud:v:20:y:1999:i:2:p:205-219<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name: Richard Blundell<br>Author-X-Name-First: Richard<br>Author-X-Name-Last: Blundell<br>Author-Email: r.blundell@ucl.ac.uk<br>Author-Workplace-Name: Institute for Fiscal Studies and University College London<br>Author-Name: Lorraine Dearden<br>Author-X-Name-First: Lorraine<br>Author-X-Name-Last: Dearden<br>Author-Email: l.dearden@ifs.org.uk<br>Author-Workplace-Name: Institute for Fiscal Studies and Bedford Group, Institute of Education, University of London<br>Author-Name: Costas Meghir<br>Author-X-Name-First: Costas<br>Author-X-Name-Last: Meghir<br>Author-Email: c.meghir [at] yale.edu@ifs.org.uk<br>Author-Workplace-Name: Institute for Fiscal Studies and Yale University<br>Author-Name: Barbara Sianesi<br>Author-X-Name-First: Barbara<br>Author-X-Name-Last: Sianesi<br>Author-Email: b.sianesi@ifs.org.uk<br>Author-Workplace-Name: Institute for Fiscal Studies<br>Title: Human capital investment: the returns from education and training to the individual, the firm and the economy <br>Journal: Fiscal Studies<br>Pages: 1-23<br>Issue: 1<br>Volume: 20<br>Year: 1999<br>Month: March    <br>Abstract: &lt;p&gt;This paper provides a non-technical review of the evidence on the returns to education and training for the individual, the firm and the economy at large. It begins by reviewing the empirical work that has attempted to estimate the true causal effect of education and training on individual earnings, focusing on the recent literature that has attempted to control for potential biases in the estimated returns to education and training. It then moves on to review the literature that has looked at the returns from human capital investments to employers. Lack of suitable data and methodological difficulties have resulted in a paucity of studies that have carried out sound empirical work on this issue. In the final part of the review, we look at the work that has tried to assess the contribution of human capital to national economic growth at the macroeconomic level. This work has generally involved using either a 'growth accounting' theoretical framework or 'new growth' theories. Although the empirical macroeconomic evidence that accompanies this work does not generally allow one to distinguish between the two approaches, there is a substantial body of evidence on the contribution of education to economic growth. &lt;/p&gt;<br>Classification-JEL: J24, J31, O47.<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.1999.tb00001.x/abstract<br>File-Format: application/pdf<br>File-Size: 125<br>Handle: RePEc:ifs:fistud:v:20:y:1999:i:1:p:1-23<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  James Heckman<br>Author-X-Name-First: James<br>Author-X-Name-Last:  Heckman<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Lance Lockner <br>Author-X-Name-First: Lance<br>Author-X-Name-Last:  <br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Christopher Taber <br>Author-X-Name-First: Christopher<br>Author-X-Name-Last:  <br>Author-Email: <br>Author-Workplace-Name:<br>Title: Human capital formation and general equilibrium treatment effects: a study of tax and tuition policy <br>Journal: Fiscal Studies<br>Pages: 25-40<br>Issue: 1<br>Volume: 20<br>Year: 1999<br>Month: March    <br>Abstract: &lt;p&gt;Policies to promote human capital formation have been advocated as a remedy for reducing the economy-wide problem of rising wage inequality. These policies are national in character and are designed to substantially alter the proportion of the work-force that is skilled. Yet the methods used to evaluate these policies are partial equilibrium in nature and do not take account of the consequences of the changes in skill prices that are produced by the policies.&lt;/p&gt; &lt;/p&gt;&lt;p&gt;&lt;/p&gt;&lt;p&gt;&lt;p&gt;This paper summarises our research on general equilibrium evaluation of tuition and tax policies. We compare estimates of policy impact from our approach with those obtained from conventional partial equilibrium 'treatment effect' approaches to policy evaluation, and find substantial differences. Conventional partial equilibrium approaches present an overly optimistic view of what tax and tuition policy can achieve because they ignore the change in human capital investment levels induced by the change in prices due to the policy. In addition, conventional partial equilibrium approaches fail to provide an accurate assessment of the welfare consequences of these policies.&lt;/p&gt;&lt;p&gt;&lt;/p&gt;<br>Classification-JEL: H2, I2. <br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.1999.tb00002.x/abstract<br>File-Format: application/pdf<br>File-Size: 77<br>Handle: RePEc:ifs:fistud:v:20:y:1999:i:1:p:25-40<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Giuseppe Ruggieri <br>Author-X-Name-First: Giuseppe<br>Author-X-Name-Last:  <br>Author-Email: <br>Author-Workplace-Name:<br>Title: The marginal cost of public funds in closed and small open economies<br>Journal: Fiscal Studies<br>Pages: 41-60<br>Issue: 1<br>Volume: 20<br>Year: 1999<br>Month: March    <br>Abstract: &lt;p&gt;&lt;p&gt;The efficiency cost of taxation has become an increasingly important consideration in the evaluation of alternative tax policy options. This paper provides a review of estimates of the efficiency costs of taxation and presents some new estimates for small open economies. The available studies suggest that, in closed economies, the distortions from taxation are highest for corporate taxes and lowest for wage taxes. This efficiency ranking of different taxes does not hold in small open economies. It is shown that, in a small open economy, this ranking is reversed. Personal income taxes are less distortionary than wage taxes primarily because the link between domestic saving and investment is severed. Corporate taxes are also less distortionary for a variety of factors, such as changes in depreciation levels, payments to foreigners and terms of trade. &lt;/p&gt;&lt;/p&gt;<br>Classification-JEL: H2<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.1999.tb00003.x/abstract<br>File-Format: application/pdf<br>File-Size: 76<br>Handle: RePEc:ifs:fistud:v:20:y:1999:i:1:p:41-60<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Leslie Rosenthal <br>Author-X-Name-First: Leslie<br>Author-X-Name-Last:  <br>Author-Email: <br>Author-Workplace-Name:<br>Title: House prices and local taxes in the UK <br>Journal: Fiscal Studies<br>Pages: 61-76<br>Issue: 1<br>Volume: 20<br>Year: 1999<br>Month: March    <br>Abstract: &lt;p&gt;In this paper, estimates of the effects of local domestic property taxes (rates) on local house prices are presented, and the effect of local taxes on owner-occupied dwelling prices is calculated for a number of English cities for the period up to 1990. The methods used enable estimation to be made of the effect of the introduction, during 1990, of the Community Charge or poll tax in England, when the local tax base was moved from housing consumption onto individual residency. It is estimated that the reform could have increased house prices by around 15 per cent and contributed substantially to house price inflation. &lt;/p&gt;<br>Classification-JEL: H71, R31. <br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.1999.tb00004.x/abstract<br>File-Format: application/pdf<br>File-Size: 71<br>Handle: RePEc:ifs:fistud:v:20:y:1999:i:1:p:61-76<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Gerry Redmond <br>Author-X-Name-First: Gerry<br>Author-X-Name-Last:  <br>Author-Email: <br>Author-Workplace-Name:<br>Title: Incomes, incentives and the growth of means-testing in Hungary <br>Journal: Fiscal Studies<br>Pages: 77-99<br>Issue: 1<br>Volume: 20<br>Year: 1999<br>Month: March    <br>Abstract: &lt;p&gt;The purpose of this paper is to examine the reform of family benefits and the growth of means-testing in Hungary. From 1996, many family benefits were means-tested for the first time. A new microsimulation model for Hungary, running on recent survey microdata, is used to simulate the impact of the 1996 reforms on government expenditures, the distribution of incomes, the targeting of benefits and effective marginal tax rates. These reforms are found to be largely benign and even progressive, but they also appear to be paving the way for the further extension of means-testing. The model is used to investigate such an extension by simulating the impact of a UK-style system of means-tested family benefits in Hungary. This system achieves some expenditure savings and better targeting of benefits, but also greatly increases effective marginal tax rates on low-income households with children. The paper argues that resulting poverty traps may increase child poverty in Hungary in the longer term and cautions against the overextension of means-testing. &lt;/p&gt;<br>Classification-JEL: H55, I38, P35. <br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.1999.tb00005.x/abstract<br>File-Format: application/pdf<br>File-Size: 103<br>Handle: RePEc:ifs:fistud:v:20:y:1999:i:1:p:77-99<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name: Richard Disney<br>Author-X-Name-First: Richard<br>Author-X-Name-Last: Disney<br>Author-Email: richard.disney@nottingham.ac.uk<br>Author-Workplace-Name: Institute for Fiscal Studies and University of Nottingham<br>Author-Name: Amanda Gosling<br>Author-X-Name-First: Amanda<br>Author-X-Name-Last: Gosling<br>Author-Email: ag251@kent.ac.uk<br>Author-Workplace-Name: Institute for Fiscal Studies and University of Kent<br>Title: Does it pay to work in the public sector? <br>Journal: Fiscal Studies<br>Pages: 347-374<br>Issue: 4<br>Volume: 19<br>Year: 1998<br>Month: November <br>Abstract: &lt;p&gt;This paper uses microeconomic data from the British Household Panel and General Household&lt;/p&gt;&lt;p&gt;Surveys to describe how the distribution of pay differs between the public and private sectors in&lt;/p&gt;&lt;p&gt;1983 and in the early 1990s. Separate analyses by gender and education group reveal that it is&lt;/p&gt;&lt;p&gt;women and those with intermediate-level qualifications who do best in the public sector. The large differences between the shapes of the conditional (that is, holding age and education constant)distributions of wages in the public and private sectors are demonstrated using quantile regressions estimated separately for each education group. The paper also exploits the longitudinal structure of the data used to assess how much of these differences can be explained by the unobserved characteristics of individuals.&lt;/p&gt;<br>Classification-JEL: J31, J45.<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.1998.tb00291.x/abstract<br>File-Format: application/pdf<br>File-Size: 120<br>Handle: RePEc:ifs:fistud:v:19:y:1998:i:4:p:347-374<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Philippe Agulnik <br>Author-X-Name-First: Philippe<br>Author-X-Name-Last:  <br>Author-Email: <br>Author-Workplace-Name:<br>Title: The proposed state second pension <br>Journal: Fiscal Studies<br>Pages: 409-421<br>Issue: 4<br>Volume: 20<br>Year: 1998<br>Month: November <br>Abstract: &lt;p&gt;The UK government has recently proposed radical changes in second-tier pension provision, with the existing State Earnings-Related Pension Scheme (SERPS) being replaced by a new State Second Pension (SSP). This paper sets out how the proposed scheme differs from its predecessor and describes the distributional effects of this reform. It shows that the SSP greatly increases the pension entitlements of low earners while maintaining existing benefit levels for higher earners. However, the higher contributions needed to pay for the new scheme mean that, after taking financing into account, people earning more than around &pound;12,000 a year will lose out. Because of the upper limit to National Insurance contributions for employees, these losses will be greatest for people earning at the contribution ceiling. &lt;/p&gt;<br>Classification-JEL: H55 <br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.1999.tb00019.x/abstract<br>File-Format: application/pdf<br>File-Size: 121<br>Handle: RePEc:ifs:fistud:v:20:y:1998:i:4:p:409-421<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Terry Barker<br>Author-X-Name-First: Terry<br>Author-X-Name-Last:  Barker<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Jonathan K&ouml;hler<br>Author-X-Name-First: Jonathan<br>Author-X-Name-Last:  K&ouml;hler<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Equity and ecotax reform in the EU: achieving a 10 per cent reduction in Carbon Dioxide emissions using excise duties<br>Journal: Fiscal Studies<br>Pages: 375-402<br>Issue: 4<br>Volume: 19<br>Year: 1998<br>Month: November <br>Abstract: &lt;p&gt;This paper considers the distributional effects of imposing additional excise duties on energy products according to carbon content. The assumed duties escalate from 1999 to 2010 and achieve levels reducing CO2 emissions by 10 per cent below baseline by 2010 for 11 EU member states. By 2010, real personal disposable incomes are 1.6 per cent above baseline and employment is 1.2 per cent above, assuming that the change is tax-revenue-neutral. The study concludes that the changes will be weakly regressive for nearly all the member states in the study if revenues are used to reduce employers' taxes and strongly progressive if they are given back lump-sum to households.&lt;/p&gt;<br>Classification-JEL: C53, D12, H22, Q48.<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.1998.tb00292.x/abstract<br>File-Format: application/pdf<br>File-Size: 109<br>Handle: RePEc:ifs:fistud:v:19:y:1998:i:4:p:375-402<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Phil Agulnik<br>Author-X-Name-First: Phil<br>Author-X-Name-Last:  Agulnik<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Julian Le Grand<br>Author-X-Name-First: Julian<br>Author-X-Name-Last:  Grand<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Tax relief and partnership pensions<br>Journal: Fiscal Studies<br>Pages: 403-428<br>Issue: 4<br>Volume: 19<br>Year: 1998<br>Month: November <br>Abstract: &lt;p&gt;Government support of private (occupational and personal) pensions through tax relief is an important element in the UK's retirement income system. However, the current tax relief system is regressive, lacks transparency and is difficult to control. This paper argues that it should be replaced by a cost-neutral matching-grant or tax-credit scheme. Such a scheme would embody the 'Partnership' idea implicit in much government policy in this area, but would be much more progressive, more open and more accountable than existing arrangements. The argument is illustrated through a comparison of the cost and distributional impact of the current system with those of an alternative tax-credit scheme.&lt;/p&gt;<br>Classification-JEL: H55<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.1998.tb00293.x/abstract<br>File-Format: application/pdf<br>File-Size: 121<br>Handle: RePEc:ifs:fistud:v:19:y:1998:i:4:p:403-428<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Armando Barrientos<br>Author-X-Name-First: Armando<br>Author-X-Name-Last:  Barrientos<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Supplementary pension coverage in Britain<br>Journal: Fiscal Studies<br>Pages: 429-446<br>Issue: 4<br>Volume: 19<br>Year: 1998<br>Month: November <br>Abstract: &lt;p&gt;The 1986 Social Security Act introduced far-reaching changes to the supplementary pension environment in Britain, encouraging the growth of defined contribution pension plans and especially personal pensions. This paper examines the pattern of supplementary pension coverage of employees in Britain five years after the implementation of the Act, using cross-sectional data from the Family Resources Survey 1993-94. Two-thirds of employees in Britain are covered by private contracted-out pension schemes. Employer-provided defined benefit pension schemes remain the dominant type of supplementary pension scheme. The growth of personal pension plans is more marked among manual, less-skilled, workers in smaller establishments. The paper concludes that, in the absence of further pension reform, adverse labour market conditions will exert downward pressure on private pension coverage.&lt;/p&gt;<br>Classification-JEL: I38, J32, J38.<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.1998.tb00294.x/abstract<br>File-Format: application/pdf<br>File-Size: 82<br>Handle: RePEc:ifs:fistud:v:19:y:1998:i:4:p:429-446<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Marc Robinson<br>Author-X-Name-First: Marc<br>Author-X-Name-Last:  Robinson<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Measuring compliance with the Golden Rule<br>Journal: Fiscal Studies<br>Pages: 447-462<br>Issue: 4<br>Volume: 19<br>Year: 1998<br>Month: November <br>Abstract: &lt;p&gt;The golden rule of public finance is based upon the notion that intergenerational equity requires that the cost of public expenditures be spread over time in a manner that reflects the intertemporal distribution of the benefits generated by those expenditures. This is often translated into a rule that the budget be structurally balanced in accrual accounting terms. This article considers the form of accrual accounting that is most suited to the task of measuring the consistency of fiscal policy with the golden rule. It recommends a combination of the real capital maintenance approach (also known as 'current purchasing power accounting') and annuity depreciation. Such an approach differs from 'current cost accounting', which has dominated public sector models of accrual accounting in recent years. The meaning of balance-sheet measures is also considered, and it is concluded that the golden rule is more appropriately expressed as an accrual balanced budget requirement than as a requirement for the maintenance of constant net worth.&lt;/p&gt;<br>Classification-JEL: H6, M40<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.1998.tb00295.x/abstract<br>File-Format: application/pdf<br>File-Size: 70<br>Handle: RePEc:ifs:fistud:v:19:y:1998:i:4:p:447-462<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Todd Sandler<br>Author-X-Name-First: Todd<br>Author-X-Name-Last:  Sandler<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Global and regional public goods: a prognosis for collective action<br>Journal: Fiscal Studies<br>Pages: 221-247<br>Issue: 3<br>Volume: 19<br>Year: 1998<br>Month: August   <br>Abstract: &lt;p&gt;This paper applies modern concepts from the theory of public goods to indicate why progress has been made with respect to some global and regional public goods (for example, cutting sulphur emissions) but not with respect to others (for example, cutting greenhouse gases). Factors promoting collective action at the transnational level include the removal of uncertainty, a high share of nation-specific benefits, a limited number of essential participants and the presence of an influential leader nation. The impact of public good aggregation technologies on the future provision of transnational public goods is related to the trend in world-wide income inequality. Principles are presented for designing supranational structures for addressing transnational public good problems. &lt;/p&gt;<br>Classification-JEL: H41, D70, Q20.<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.1998.tb00286.x/abstract<br>File-Format: application/pdf<br>File-Size: 115<br>Handle: RePEc:ifs:fistud:v:19:y:1998:i:3:p:221-247<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Ruth Hancock<br>Author-X-Name-First: Ruth<br>Author-X-Name-Last:  Hancock<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Can housing wealth alleviate poverty among Britain's older population?<br>Journal: Fiscal Studies<br>Pages: 249-272<br>Issue: 3<br>Volume: 19<br>Year: 1998<br>Month: August   <br>Abstract: &lt;p&gt;This paper investigates the scope for housing wealth to alleviate poverty among Britain's older population by modelling the potential effect of equity-release schemes on the net incomes of older homeowners using data from the 1993-4 and 1994-5 Family Expenditure Surveys. We find that, for the older population in general, the potential impact of equity release on poverty is limited by the positive association between homeownership and income in later life. The scope for equity release to enhance incomes is restricted mainly to the oldest age-groups where life expectancy is short. However, it is at these oldest ages that incomes are lowest and although we estimate that equity release cannot provide much benefit to those in the greatest poverty, the additions to income that equity release could bring to some of the oldest homeowners are not insignificant.&lt;/p&gt;<br>Classification-JEL: D31, H55, I32, J14.<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.1998.tb00287.x/abstract<br>File-Format: application/pdf<br>File-Size: 102<br>Handle: RePEc:ifs:fistud:v:19:y:1998:i:3:p:249-272<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Catherine Waddams<br>Author-X-Name-First: Catherine<br>Author-X-Name-Last:  Waddams<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Ruth Hancock<br>Author-X-Name-First: Ruth<br>Author-X-Name-Last:  Hancock<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Distributional effects of liberalising UK residential utility markets<br>Journal: Fiscal Studies<br>Pages: 295-319<br>Issue: 3<br>Volume: 19<br>Year: 1998<br>Month: August   <br>Abstract: &lt;p&gt;Competition is being extended into residential utility markets world-wide; the European directives on telecoms, electricity and gas will extend choice throughout the European Union by the turn of the century. In the UK, the Privatisation Acts not only changed the ownership of utilities, but imposed a duty on the regulators to encourage competition. It is the introduction of competition,actual and potential, that has been the main force behind changing the relative prices charged to different consumers, particularly in the residential market. We use household-level data to identify the distributional impact, particularly on vulnerable households and those for whom regulators have special responsibilities. We find a mixed outcome, with some vulnerable households, especially pensioners, adversely affected; we suggest potential compensation mechanisms that could improve welfare by enabling the benefits of competition in these industries supplying essential services to be gained without harming the most vulnerable households.&lt;/p&gt;<br>Classification-JEL: D40, I18.<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.1998.tb00289.x/abstract<br>File-Format: application/pdf<br>File-Size: 108<br>Handle: RePEc:ifs:fistud:v:19:y:1998:i:3:p:295-319<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Richard Green<br>Author-X-Name-First: Richard<br>Author-X-Name-Last:  Green<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Tanga McDaniel<br>Author-X-Name-First: Tanga<br>Author-X-Name-Last:  McDaniel<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Competition in electricity supply: will '1998' Be worth it?<br>Journal: Fiscal Studies<br>Pages: 273-293<br>Issue: 3<br>Volume: 19<br>Year: 1998<br>Month: August   <br>Abstract: &lt;p&gt;&lt;p&gt;Starting in 1998, the electricity market in England and Wales will be opened up to full competition,and all consumers will be allowed to choose their electricity supplier. This promises to result in lower prices, but there will be additional transactions costs exceeding &pound;100 million a year for the first five years. Relative to a counterfactual without competition, there are likely to be large transfers from electricity companies (and the coal industry) to consumers, but the companies lose more than consumers gain. This conclusion might be reversed if competitive pressure leads to significant additional cost savings in the future. &lt;/p&gt;&lt;/p&gt;<br>Classification-JEL: L94<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.1998.tb00288.x/abstract<br>File-Format: application/pdf<br>File-Size: 88<br>Handle: RePEc:ifs:fistud:v:19:y:1998:i:3:p:273-293<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Nicolas Bloom<br>Author-X-Name-First: Nicolas<br>Author-X-Name-Last:  Bloom<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  John Van Reenen<br>Author-X-Name-First: John<br>Author-X-Name-Last:  Reenen<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Regulating drug prices: where do we go from here?<br>Journal: Fiscal Studies<br>Pages: 321-342<br>Issue: 3<br>Volume: 19<br>Year: 1998<br>Month: August   <br>Abstract: &lt;p&gt;This paper examines the arguments for changing the ways that UK drug prices are regulated. In the UK, NHS pharmaceutical expenditures on branded drugs, currently worth about &pound;3 billion a year, have been regulated by the Pharmaceutical Price Regulation Scheme (PPRS) since 1978. We argue that, in publicly funded healthcare systems, pharmaceutical price regulation is necessitated by a tendency towards excessive government expenditure because of over-prescription and the monopoly power of firms with on-patent drugs. We briefly explain the operation of the PPRS, which is based on rate-of-return regulation, and discuss its merits and drawbacks. We then consider five alternative pricing systems: free pricing, therapeutic benefit pricing, international reference pricing, therapeutic reference pricing and RPI - X price regulation. However, we reject all these alternatives in favour of a reformed PPRS. We suggest three potential reforms of the PPRS: an RPI - X cost allowance if feasible or a widening of the rate-of-return bands otherwise; the introduction of a marketing innovation allowance; and greater regulatory transparency.&lt;/p&gt;<br>Classification-JEL: L5, L6, D4<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.1998.tb00290.x/abstract<br>File-Format: application/pdf<br>File-Size: 101<br>Handle: RePEc:ifs:fistud:v:19:y:1998:i:3:p:321-342<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name: Paul Johnson<br>Author-X-Name-First: Paul<br>Author-X-Name-Last: Johnson<br>Author-Email: paul_j@ifs.org.uk<br>Author-Workplace-Name: Institute for Fiscal Studies<br>Author-Name:  Gary Stears<br>Author-X-Name-First: Gary<br>Author-X-Name-Last:  Stears<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Steven Webb<br>Author-X-Name-First: Steven<br>Author-X-Name-Last:  Webb<br>Author-Email: <br>Author-Workplace-Name:<br>Title: The dynamics of incomes and occupational pensions after retirement <br>Journal: Fiscal Studies<br>Pages: 197-215<br>Issue: 2<br>Volume: 19<br>Year: 1998<br>Month: May      <br>Abstract: &lt;p&gt;This paper uses two waves of the UK Retirement Survey to look at how incomes change during retirement. We concentrate on men aged 65-69 and women aged 60-69 in 1988-89 and look at how their incomes change over the following five years. Overall, we find a considerable degree of stability in real incomes. We use the panel data to look at the incomes of widows before and after they are widowed and find that, for this group ofrelatively young widows, their low incomes are in large part determined by the fact that it tends to be the relatively poorer husbands who die among this age-group. Finally, we consider the most important component of private income - occupational pensions - separately. We find a strong relationship between pension level and the probability of indexation - pensions that start low are less likely than higher pensions to keep up with inflation.&lt;/p&gt;<br>Classification-JEL: D31, H55.<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.1998.tb00284.x/abstract<br>File-Format: application/pdf<br>File-Size: 82<br>Handle: RePEc:ifs:fistud:v:19:y:1998:i:2:p:197-215<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name: James Heckman<br>Author-X-Name-First: James<br>Author-X-Name-Last: Heckman<br>Author-Email: <br>Author-Workplace-Name: Institute for Fiscal Studies and University of Chicago<br>Title: What should be our human capital investment policy?<br>Journal: Fiscal Studies<br>Pages: 103-119<br>Issue: 2<br>Volume: 19<br>Year: 1998<br>Month: May      <br>Abstract: &lt;p&gt;This paper considers the magnitude of the human capital investment required to offset the increase in the inequality in labour earnings in the US economy since 1979. It considers the ineffectiveness of government training policies, the effectiveness of private sector training and the conflict between economic efficiency and the work ethic. It also considers revisions of the tax code. The importance of the distinction between the long view and the short view in analysing human resource policies is emphasised.&lt;/p&gt;<br>Classification-JEL: J24, I28, H40<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.1998.tb00279.x/abstract<br>File-Format: application/pdf<br>File-Size: 71<br>Handle: RePEc:ifs:fistud:v:19:y:1998:i:2:p:103-119<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name: John Hall<br>Author-X-Name-First: John<br>Author-X-Name-Last: Hall<br>Author-Email: <br>Author-Workplace-Name: Institute for Fiscal Studies<br>Title: Private opportunity, public benefit?<br>Journal: Fiscal Studies<br>Pages: 121-140<br>Issue: 2<br>Volume: 19<br>Year: 1998<br>Month: May      <br>Abstract: &lt;p&gt;The newly elected Labour government has pledged to 'Reinvigorate the Private Finance Initiative' as part of the new emphasis on 'Public/private partnerships' in the delivery of core public services. This article assesses the merits of using private finance to deliver public services against three criteria: whether it will lead to additional investment in social infrastructure, whether it represents good value for the taxpayer's money and whether the use of private finance will reduce the public sector's flexibility to pursue its public service objectives.&lt;/p&gt;<br>Classification-JEL: H54, H11<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.1998.tb00280.x/abstract<br>File-Format: application/pdf<br>File-Size: 93<br>Handle: RePEc:ifs:fistud:v:19:y:1998:i:2:p:121-140<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Michael Hurd <br>Author-X-Name-First: Michael<br>Author-X-Name-Last:  <br>Author-Email: <br>Author-Workplace-Name:<br>Title: SYMPOSIUM on assets, incomes and retirement<br>Journal: Fiscal Studies<br>Pages: 141-151<br>Issue: 2<br>Volume: 19<br>Year: 1998<br>Month: May      <br>Abstract: &lt;p&gt;In most developed countries, an increase in the retirement-aged population has put considerable financial pressure on public pension systems. In response, a number of countries have reformed their systems and have encouraged a substitution toward private pensions and tax-sheltered saving. As the baby-boom cohort reaches retirement age, it is likely that further policy change will be required; however, knowledge about the behaviour of people as they approach and reach retirement age and how they might react to policy change is vital for the formulation of good policy. In the UK, for example, the fiscal treatment of pensions has changed, leading to changes in the way people save for retirement. We would like to know if this has altered retirement behaviour and changed economic resources following retirement. We would like to learn how further policy changes may affect future behaviour. It is fortunate that we have available a new dataset - the Retirement Survey - that can be used to answer these kinds of questions. The three papers in this symposium analyse some of the data from this survey. &lt;/p&gt;<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.1998.tb00281.x/abstract<br>File-Format: application/pdf<br>File-Size: 54<br>Handle: RePEc:ifs:fistud:v:19:y:1998:i:2:p:141-151<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name: Richard Disney<br>Author-X-Name-First: Richard<br>Author-X-Name-Last: Disney<br>Author-Email: richard.disney@nottingham.ac.uk<br>Author-Workplace-Name: Institute for Fiscal Studies and University of Nottingham<br>Author-Name:  Paul Johnson<br>Author-X-Name-First: Paul<br>Author-X-Name-Last:  Johnson<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Gary Stears<br>Author-X-Name-First: Gary<br>Author-X-Name-Last:  Stears<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Asset wealth and asset decumulation among households in the Retirement Survey<br>Journal: Fiscal Studies<br>Pages: 153-174<br>Issue: 2<br>Volume: 19<br>Year: 1998<br>Month: May      <br>Abstract: &lt;p&gt;This paper examines the asset positions of households at and around retirement in Britain using the Retirement Survey 'waves' of 1988-89 and 1994. The data provide the first panel evidence on retirement behaviour and asset evolution for a sample of older households in Britain. The analysis in this paper shows the importance of housing and private pension wealth for this age-group in Britain, and also the differential wealth holdings between surviving respondents and those who died or failed to respond for other reasons in 1994. It provides some preliminary evidence as to whether households decumulate assets after retirement in accordance with the 'textbook' version of the Life-Cycle Hypothesis of consumption.&lt;/p&gt;<br>Classification-JEL: D31, D91, J26<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.1998.tb00282.x/abstract<br>File-Format: application/pdf<br>File-Size: 102<br>Handle: RePEc:ifs:fistud:v:19:y:1998:i:2:p:153-174<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Sarah Tanner<br>Author-X-Name-First: Sarah<br>Author-X-Name-Last:  Tanner<br>Author-Email: <br>Author-Workplace-Name:<br>Title: The dynamics of male retirement behaviour<br>Journal: Fiscal Studies<br>Pages: 175-196<br>Issue: 2<br>Volume: 19<br>Year: 1998<br>Month: May      <br>Abstract: &lt;p&gt;This paper uses data from the two waves of the UK Retirement Survey to present a detailed &lt;/p&gt;&lt;p&gt;descriptive analysis of the retirement behaviour of older men. The main motivation for doing this is the fall in the employment rates of older men over the last 20 years. A comparison of the labour market behaviour of men with and without an occupational pension suggests that increases in the coverage and levels of occupational pensions may not be enough to explain the long-term trends in labour market behaviour, but that there are important differences in the retirement experiences of the two groups. &lt;/p&gt;<br>Classification-JEL: J26.<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.1998.tb00283.x/abstract<br>File-Format: application/pdf<br>File-Size: 92<br>Handle: RePEc:ifs:fistud:v:19:y:1998:i:2:p:175-196<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Michael Keen<br>Author-X-Name-First: Michael<br>Author-X-Name-Last:  Keen<br>Author-Email: <br>Author-Workplace-Name:<br>Title: The balance between specific and &lt;i&gt;ad valorem&lt;/i&gt; taxation<br>Journal: Fiscal Studies<br>Pages: 1-37<br>Issue: 1<br>Volume: 19<br>Year: 1998<br>Month: February <br>Abstract: &lt;p&gt;A recurring issue in indirect tax design - most obviously, but not only, for goods traditionally subject to heavy excises - is the appropriate balance between specific and ad valorem taxation. Recent work has developed new perspectives on the issue, which is also one of the oldest in the formal study of public finance. This paper provides a broadly non-technical account of the central considerations that arise in choosing the balance between specific and ad valorem taxation, reviewing and somewhat extending the lessons of theory and experience. There emerge clear presumptions as to the relative effects of the two kinds of tax on such attributes as price, profits, product quality and variety. But the socially optimal balance between them is likely to be quite sensitive to the characteristics of the market at issue.&lt;/p&gt;<br>Classification-JEL: H21, H22<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.1998.tb00274.x/abstract<br>File-Format: application/pdf<br>File-Size: 154<br>Handle: RePEc:ifs:fistud:v:19:y:1998:i:1:p:1-37<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Mark H. Robson<br>Author-X-Name-First: Mark<br>Author-X-Name-Last:  Robson<br>Author-Email: <br>Author-Workplace-Name:<br>Title: SYMPOSIUM on forecasting the state of the public finances<br>Journal: Fiscal Studies<br>Pages: 39-48<br>Issue: 1<br>Volume: 19<br>Year: 1998<br>Month: February <br>Abstract: &lt;p&gt;The level of public borrowing plays a central role in UK government policymaking, especially in the run-up to each Budget. Accurate forecasts of the overall fiscal stance are crucial in assessing the general health of the economy, the direction of tax policy and the volume of public services that can be supplied. But these forecasts have a relatively poor record in the UK in recent years. The government's last Financial Statement and Budget Report noted that the budget deficit is the difference between two large aggregates of spending and receipts and forecasts of it are inevitably subject to a wide margin of error. Over the past five years the average absolute errors have been around 1 per cent of GDP, or plus or minus &pound;8 billion in today's prices.&lt;/p&gt;<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.1998.tb00275.x/abstract<br>File-Format: application/pdf<br>File-Size: 147<br>Handle: RePEc:ifs:fistud:v:19:y:1998:i:1:p:39-48<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Tim Pike<br>Author-X-Name-First: Tim<br>Author-X-Name-Last:  Pike<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  David Savage<br>Author-X-Name-First: David<br>Author-X-Name-Last:  Savage<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Forecasting the public finances in the Treasury<br>Journal: Fiscal Studies<br>Pages: 49-62<br>Issue: 1<br>Volume: 19<br>Year: 1998<br>Month: February <br>Abstract: &lt;p&gt;This article describes the methods used by the Treasury and other government departments for making forecasts of the public finances. A highly detailed approach is required because of the Treasury's budgetary role, but the aggregated results are subjected to careful 'top-down' checks.  Forecasts have a necessary role in fiscal policy. But they are subject to large margins of error, and should be presented and used with caution.&lt;/p&gt;<br>Classification-JEL: E6, H1, H6<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.1998.tb00276.x/abstract<br>File-Format: application/pdf<br>File-Size: 48<br>Handle: RePEc:ifs:fistud:v:19:y:1998:i:1:p:49-62<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Andrew Sentance<br>Author-X-Name-First: Andrew<br>Author-X-Name-Last:  Sentance<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Stephen Hall<br>Author-X-Name-First: Stephen<br>Author-X-Name-Last:  Hall<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  John O'Sullivan<br>Author-X-Name-First: John<br>Author-X-Name-Last:  O'Sullivan<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Modelling and forecasting UK public finances<br>Journal: Fiscal Studies<br>Pages: 63-81<br>Issue: 1<br>Volume: 19<br>Year: 1998<br>Month: February <br>Abstract: &lt;p&gt;In this paper, we present a new model of UK public finances which aims to shed light on recent problems of forecasting the PSBR. The main elements of public spending are treated as endogenous variables which rise in line with GDP over the medium term. Also, the cyclical response of public borrowing to rises in the level of economic activity is more muted when growth is export-led than when it is consumer-led. These two features go a long way towards explaining the rapid deterioration of public finances in the early 1990s and the slow pace of improvement since 1993.&lt;/p&gt;<br>Classification-JEL: C53, E62, H62.<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.1998.tb00277.x/abstract<br>File-Format: application/pdf<br>File-Size: 100<br>Handle: RePEc:ifs:fistud:v:19:y:1998:i:1:p:63-81<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name: Chris Giles<br>Author-X-Name-First: Chris<br>Author-X-Name-Last: Giles<br>Author-Email: <br>Author-Workplace-Name: Institute for Fiscal Studies<br>Author-Name: John Hall<br>Author-X-Name-First: John<br>Author-X-Name-Last: Hall<br>Author-Email: <br>Author-Workplace-Name: Institute for Fiscal Studies<br>Title: Forecasting the PSBR outside government: the IFS perspective<br>Journal: Fiscal Studies<br>Pages: 83-100<br>Issue: 1<br>Volume: 19<br>Year: 1998<br>Month: February <br>Abstract: &lt;p&gt;Expectations regarding the future state of the public finances are vital for public policy formation. The UK experience has been that forecasts of the PSBR have been beset with problems since the mid-1980s. Independent assessments of the accuracy and plausibility of public finance forecasts are an important check on government forecasts and serve to increase public debate over government finance issues. We examine the success of various possible methods available to those outside government.&lt;/p&gt;<br>Classification-JEL: E6, H1, H6.<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.1998.tb00278.x/abstract<br>File-Format: application/pdf<br>File-Size: 97<br>Handle: RePEc:ifs:fistud:v:19:y:1998:i:1:p:83-100<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  William Gale<br>Author-X-Name-First: William<br>Author-X-Name-Last:  Gale<br>Author-Email: <br>Author-Workplace-Name:<br>Title: What can America learn from the British tax system?<br>Journal: Fiscal Studies<br>Pages: 341-369<br>Issue: 4<br>Volume: 18<br>Year: 1997<br>Month: November <br>Abstract: &lt;p&gt;This paper examines elements of British tax policy and discusses their implications for the US, where several recent proposals would mirror aspects of the British system. These include reducing filing requirements under the individual income tax, indexing capital gains for inflation, cutting mortgage interest deductions, enacting a value added tax, and integrating the corporate and personal income taxes. The paper also discusses implications of the poll tax for tax reform. Britain and America have made different choices involving equity, efficiency, simplicity and other goals. These choices offer the chance to help identify the impact of tax policy.&lt;/p&gt;<br>Classification-JEL: H20<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.1997.tb00269.x/abstract<br>File-Format: application/pdf<br>File-Size: 86<br>Handle: RePEc:ifs:fistud:v:18:y:1997:i:4:p:341-369<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Michael Keen<br>Author-X-Name-First: Michael<br>Author-X-Name-Last:  Keen<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Peculiar institutions: A British perspective on tax policy in the United States<br>Journal: Fiscal Studies<br>Pages: 371-400<br>Issue: 4<br>Volume: 18<br>Year: 1997<br>Month: November <br>Abstract: &lt;p&gt;By both effect and example, tax policy in the United States has a huge impact on the rest of the world. This paper explores five features of the American tax system that seem, from a British and European perspective, to be both especially peculiar and potentially instructive. These are: the remarkably low overall level of taxation; the absence of a value added tax (or any other general national tax on consumption); the absence of any explicit interstate equalisation; the marginal subsidisation of low earnings under the Earned Income Tax Credit; and the fragmentation of power in policymaking, an important aspect of which is the role played by the Constitution.&lt;/p&gt;<br>Classification-JEL: H10, H20, H50, H70.<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.1997.tb00270.x/abstract<br>File-Format: application/pdf<br>File-Size: 104<br>Handle: RePEc:ifs:fistud:v:18:y:1997:i:4:p:371-400<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name: Robert Walker<br>Author-X-Name-First: Robert<br>Author-X-Name-Last: Walker<br>Author-Email: robert.walker@nottingham.ac.uk<br>Author-Workplace-Name: Institute for Fiscal Studies and University of Nottingham<br>Author-Name:  Michael Wiseman<br>Author-X-Name-First: Michael<br>Author-X-Name-Last:  Wiseman<br>Author-Email: <br>Author-Workplace-Name:<br>Title: The possibility of a British earned income tax credit<br>Journal: Fiscal Studies<br>Pages: 401-425<br>Issue: 4<br>Volume: 18<br>Year: 1997<br>Month: November <br>Abstract: &lt;p&gt;The possibility of an earned income tax credit, based on the US model, is currently high up the British political agenda. This paper examines the strengths and weaknesses of the current British system of in-work benefits, before reviewing the effectiveness of the US Earned Income Tax Credit (EITC) scheme. The British and US systems are then directly compared in terms of the net income delivered and the effective tax rate (net benefit deduction rate). Although the evidence in favour of a US-style EITC is weak, two possible variants are considered. The paper concludes that the only future for an EITC is probably as a partial scheme, linked to the amalgamation of in-work and out-of-work benefits, which removes wage subsidisation from the sphere of social security by means of a semi-individualised tax credit. Even so, the same goals could be achieved through the benefit system.&lt;/p&gt;<br>Classification-JEL: H24, I38<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.1997.tb00271.x/abstract<br>File-Format: application/pdf<br>File-Size: 109<br>Handle: RePEc:ifs:fistud:v:18:y:1997:i:4:p:401-425<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Simon James<br>Author-X-Name-First: Simon<br>Author-X-Name-Last:  James<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Ian Wallschutsky<br>Author-X-Name-First: Ian<br>Author-X-Name-Last:  Wallschutsky<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Tax law improvement in Australia and the UK: the need for a strategy for simplification<br>Journal: Fiscal Studies<br>Pages: 445-460<br>Issue: 4<br>Volume: 18<br>Year: 1997<br>Month: November <br>Abstract: &lt;p&gt;In both Australia and the UK, programmes are under way to simplify tax legislation by rewriting it. This paper demonstrates that tax simplification is a complicated concept and concludes that sustainable improvement is unlikely to be achieved if reform is limited only to linguistic changes. Tax law is complicated because there are powerful pressures that tend to increase the complexity of modern tax systems and these should also be considered in any simplification programme. In addition, tax simplification may be promoted by the greater use of purposive legislation - that is, legislation drafted in terms of general principles rather than much more comprehensive legislation designed to deal with every likely possibility. The paper examines the progress of the Australian Tax Law Improvement Project and argues that what is needed is a strategy for tax simplification that is incorporated into the process of generating tax policy itself.&lt;/p&gt;<br>Classification-JEL: H20<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.1997.tb00273.x/abstract<br>File-Format: application/pdf<br>File-Size: 49<br>Handle: RePEc:ifs:fistud:v:18:y:1997:i:4:p:445-460<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Turalay Kenc<br>Author-X-Name-First: Turalay<br>Author-X-Name-Last:  Kenc<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  William Perraudin<br>Author-X-Name-First: William<br>Author-X-Name-Last:  Perraudin<br>Author-Email: <br>Author-Workplace-Name:<br>Title: European pension systems: a simulation analysis<br>Journal: Fiscal Studies<br>Pages: 249-277<br>Issue: 3<br>Volume: 18<br>Year: 1997<br>Month: August   <br>Abstract: &lt;p&gt;Pension systems in different countries vary widely in such aspects as the dependence of benefits on earlier labour income, the minimum permitted retirement age and limits on labour supply after retirement. This paper uses a simulation model of a rational, utility-maximising household facing the detailed pension provisions of eight European countries to study microeconomic distortions induced by the different rules and regulations. We examine in particular the impact on savings, labour supply, retirement age decisions and welfare.&lt;/p&gt;<br>Classification-JEL: H55, J26, J65.<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.1997.tb00263.x/abstract<br>File-Format: application/pdf<br>File-Size: 135<br>Handle: RePEc:ifs:fistud:v:18:y:1997:i:3:p:249-277<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name: Christian Dustmann<br>Author-X-Name-First: Christian<br>Author-X-Name-Last: Dustmann<br>Author-Email: c.dustmann@ucl.ac.uk<br>Author-Workplace-Name: Institute for Fiscal Studies and University College London<br>Author-Name:  Arthur Van Soest<br>Author-X-Name-First: Arthur<br>Author-X-Name-Last:  Soest<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Wage structures in the private and public sectors in West Germany<br>Journal: Fiscal Studies<br>Pages: 225-247<br>Issue: 3<br>Volume: 18<br>Year: 1997<br>Month: August   <br>Abstract: &lt;p&gt;In this paper, we investigate pay structures in the private and public sectors for West Germany. We commence by describing some basic features of the public sector. We use micro-data from the German Socio-Economic Panel for the years 1984-93 to analyse developments and differences in public and private sector wage distributions for both males and females. We break wages down into different education groups and age-groups, and use regressions to construct conditional wage differentials. Our results differ in many aspects from findings for the UK. For instance, we find that although mean wages are higher in the public sector for both males and females, conditional wages are higher in the private sector for all education groups for males, but higher in the public sector for females. &lt;/p&gt;<br>Classification-JEL: J3<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.1997.tb00262.x/abstract<br>File-Format: application/pdf<br>File-Size: 95<br>Handle: RePEc:ifs:fistud:v:18:y:1997:i:3:p:225-247<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Lucy Chennells<br>Author-X-Name-First: Lucy<br>Author-X-Name-Last:  Chennells<br>Author-Email: <br>Author-Workplace-Name:<br>Title: The windfall tax<br>Journal: Fiscal Studies<br>Pages: 279-291<br>Issue: 3<br>Volume: 18<br>Year: 1997<br>Month: August   <br>Abstract: &lt;p&gt;This paper analyses the windfall tax on the privatised utilities, introduced in the 1997 Budget. It describes the main arguments put forward for the tax and sets out the details of its scope, scale and method of implementation. The tax is examined against the guidelines of economic efficiency, fairness and administrative feasibility. A one-off tax based on past profits should be efficient, provided that the statement that it is one-off is credible. However, as a tax levied on companies, it does not directly tax the windfall gains that were made in the past by shareholders in the companies concerned.&lt;/p&gt;<br>Classification-JEL: H25, L51, L98<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.1997.tb00264.x/abstract<br>File-Format: application/pdf<br>File-Size: 44<br>Handle: RePEc:ifs:fistud:v:18:y:1997:i:3:p:279-291<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  John Creedy<br>Author-X-Name-First: John<br>Author-X-Name-Last:  Creedy<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Inequality, mobility and income distribution comparisons<br>Journal: Fiscal Studies<br>Pages: 293-302<br>Issue: 3<br>Volume: 18<br>Year: 1997<br>Month: August   <br>Abstract: &lt;p&gt;This paper examines the relationship between the cross-sectional and lifetime income distributions using a simple model of relative income mobility. It asks whether cross-sectional comparisons between countries can provide a good indication of lifetime inequality differences if income mobility is similar, and whether lifetime inequality increases by less than cross-sectional inequality if the latter increases as a result of higher mobility. Analytical and simulation methods are used to show that the answer to both questions is negative. Comparisons must allow for different types of mobility, the nature of the age-income profile and the age distribution in each country.&lt;/p&gt;<br>Classification-JEL: D31<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.1997.tb00265.x/abstract<br>File-Format: application/pdf<br>File-Size: 41<br>Handle: RePEc:ifs:fistud:v:18:y:1997:i:3:p:293-302<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  John Isaac<br>Author-X-Name-First: John<br>Author-X-Name-Last:  Isaac<br>Author-Email: <br>Author-Workplace-Name:<br>Title: A comment on the viability of the allowance for corporate equity<br>Journal: Fiscal Studies<br>Pages: 303-318<br>Issue: 3<br>Volume: 18<br>Year: 1997<br>Month: August   <br>Abstract: &lt;p&gt;This article, acknowledging the potentially important general attractions of the allowance for corporate equity (ACE), looks at some of its more specific implications. On corporate taxes, the article looks at questions about the implied revenue-neutral rate of corporation tax (and redistribution of the tax burden); the effects on cash flow of both government and companies; and what would become a crucially important charge on capital gains. On income tax, the article comments on the implications for self-employed earnings (and also,potentially, employees); for investment income and the logically accompanying EXPEP (extended personal equity plan); and therefore for inheritance tax. For international investment, the article notes that unless and until other countries adopt an ACE as the basis for harmonisation, the interaction of the ACE and existing taxes would not always be helpful for outward investment; and on some inward investment, if the most optimistic assumptions are not borne out, the effects could be rather bleak.&lt;/p&gt;<br>Classification-JEL: H25, K34<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.1997.tb00266.x/abstract<br>File-Format: application/pdf<br>File-Size: 49<br>Handle: RePEc:ifs:fistud:v:18:y:1997:i:3:p:303-318<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name: Julian McCrae<br>Author-X-Name-First: Julian<br>Author-X-Name-Last: McCrae<br>Author-Email: <br>Author-Workplace-Name: Institute for Fiscal Studies<br>Title: Simplifying the formal structure of UK income tax<br>Journal: Fiscal Studies<br>Pages: 319-334<br>Issue: 3<br>Volume: 18<br>Year: 1997<br>Month: August   <br>Abstract: &lt;p&gt;The tax system in the UK has developed through numerous ad hoc changes to its structure. This has resulted in a situation where the way in which the tax system is described does not readily correspond to the marginal rate schedule actually faced by taxpayers. This paper outlines the connection between the formal description of the tax system and the marginal rate schedule faced by taxpayers. It argues that the operation of the tax system would be greatly clarified if it were described explicitly in terms of its marginal rate schedule.&lt;/p&gt;<br>Classification-JEL: H24, D83<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.1997.tb00267.x/abstract<br>File-Format: application/pdf<br>File-Size: 74<br>Handle: RePEc:ifs:fistud:v:18:y:1997:i:3:p:319-334<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Sarah Jarvis<br>Author-X-Name-First: Sarah<br>Author-X-Name-Last:  Jarvis<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Stephen P. Jenkins<br>Author-X-Name-First: Stephen<br>Author-X-Name-Last:  Jenkins<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Low income dynamics in 1990s Britain<br>Journal: Fiscal Studies<br>Pages: 123-142<br>Issue: 2<br>Volume: 18<br>Year: 1997<br>Month: May      <br>Abstract: &lt;p&gt;This paper analyses low income dynamics in Britain using the first four waves of the British Household Panel Survey. There is much low income turnover: although there is a small group of people who are persistently poor, more striking is the relatively large number of low income escapers and entrants from one year to the next. Simulations using estimated low income exit and re-entry rates demonstrate the importance of repeated low income spells for explaining a person's experience of low income over a given period. We also document the characteristics of low income stayers, escapers and entrants. &lt;/p&gt;<br>Classification-JEL: D31, I32<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.1997.tb00257.x/abstract<br>File-Format: application/pdf<br>File-Size: 66<br>Handle: RePEc:ifs:fistud:v:18:y:1997:i:2:p:123-142<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Giuseppe Ruggieri<br>Author-X-Name-First: Giuseppe<br>Author-X-Name-Last:  Ruggieri<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Maxime Foug&egrave;re<br>Author-X-Name-First: Maxime<br>Author-X-Name-Last:  Foug&egrave;re<br>Author-Email: <br>Author-Workplace-Name:<br>Title: The effect of tax-based savings incentives on government revenue<br>Journal: Fiscal Studies<br>Pages: 143-159<br>Issue: 2<br>Volume: 18<br>Year: 1997<br>Month: May      <br>Abstract: &lt;p&gt;There is an unresolved debate on the effect of tax-based savings incentives on government revenue. The conventional wisdom on tax-assisted saving plans (TASPs) holds that they reduce public savings, but may raise national savings by stimulating private savings. Feldstein (1995) has challenged the view that TASPs reduce government revenue. According to Feldstein, 'some of the increase in personal saving raises the corporate capital stock, and the return on this additional capital raises corporate tax payments'. When the additional corporate income tax revenue is taken into account, 'the revenue loss associated with IRAs [Individual Retirement Accounts] either is much smaller than has generally been estimated or is actually a revenue gain'. This paper extends Feldstein's analysis to incorporate international considerations,differences in tax structures and alternative values for key parameters. We show that the result presented by Feldstein represents a special case that does not lead to broad generalisations. We also show that, under most conditions, the tenets of conventional wisdom that TASPs reduce government revenue are likely to hold, but that the magnitude of the effect may not be large. Finally, we suggest that the focus of research on the savings effects of TASPs is justifiable in a closed economy, where domestic savings affect domestic investment, but is not useful for policy development in small open economies.&lt;/p&gt;<br>Classification-JEL: H2, H3, H6<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.1997.tb00258.x/abstract<br>File-Format: application/pdf<br>File-Size: 53<br>Handle: RePEc:ifs:fistud:v:18:y:1997:i:2:p:143-159<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  David Miles<br>Author-X-Name-First: David<br>Author-X-Name-Last:  Miles<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Financial markets, ageing and social welfare<br>Journal: Fiscal Studies<br>Pages: 161-187<br>Issue: 2<br>Volume: 18<br>Year: 1997<br>Month: May      <br>Abstract: &lt;p&gt;This paper considers some of the economic impacts that demographic change may have in developed economies over the next fifty years. I focus on the role that financial markets might play in economies where the pressure on government-run unfunded pension systems is likely to rise. The role of unfunded schemes is considered in a world where financial markets are incomplete and important types of risk cannot easily be offset by trading. How demographic shifts might affect labour productivity, asset prices and aggregate output is investigated using a simulation model of an economy where population structure is changing.&lt;/p&gt;<br>Classification-JEL: E21, E60, G10, H1.<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.1997.tb00259.x/abstract<br>File-Format: application/pdf<br>File-Size: 102<br>Handle: RePEc:ifs:fistud:v:18:y:1997:i:2:p:161-187<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Winnie Chan<br>Author-X-Name-First: Winnie<br>Author-X-Name-Last:  Chan<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Binding rulings<br>Journal: Fiscal Studies<br>Pages: 189-210<br>Issue: 2<br>Volume: 18<br>Year: 1997<br>Month: May      <br>Abstract: &lt;p&gt;After a period of consultation, it has been decided that the Revenue should be empowered to issue legally-binding rulings in favour of taxpayers only where the relevant transaction has already taken place. This paper considers the reasons for having binding rulings, and argues that those reasons justify implementing pre- as well as post-transaction rulings. Additionally, it is contended that many of the more detailed aspects of the proposal warrant reconsideration in light of those underlying rationales.&lt;/p&gt;<br>Classification-JEL: H20, K34<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.1997.tb00260.x/abstract<br>File-Format: application/pdf<br>File-Size: 74<br>Handle: RePEc:ifs:fistud:v:18:y:1997:i:2:p:189-210<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Philip Shirley<br>Author-X-Name-First: Philip<br>Author-X-Name-Last:  Shirley<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Share repurchases<br>Journal: Fiscal Studies<br>Pages: 211-221<br>Issue: 2<br>Volume: 18<br>Year: 1997<br>Month: May      <br>Abstract: &lt;p&gt;The UK government recently introduced legislation to treat the qualifying distribution on a repurchase of shares in the same way as 'foreign income dividends'. This paper examines and criticises this reform from two perspectives. First, there is no underlying rationale for such an approach. Second, the legislation moves the tax system further away from simplification. A better approach would have been to remove the advance corporation tax (ACT) charge on a repurchase.&lt;/p&gt;<br>Classification-JEL: H25, K34.<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.1997.tb00261.x/abstract<br>File-Format: application/pdf<br>File-Size: 32<br>Handle: RePEc:ifs:fistud:v:18:y:1997:i:2:p:211-221<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Holly Sutherland<br>Author-X-Name-First: Holly<br>Author-X-Name-Last:  Sutherland<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Women, men and the redistribution of Income.<br>Journal: Fiscal Studies<br>Pages: 1-22<br>Issue: 1<br>Volume: 18<br>Year: 1997<br>Month: February <br>Abstract: &lt;p&gt;This paper explores the implications of examining the effect of policy changes on individual incomes rather than household incomes. Conceptual problems arise from the treatment of collective resources and responsibilities, particularly children. These are dealt with in a manner that is transparent with the aim of establishing a practical method of analysing policy at the individual (and gender-specific) level. Two policy-related issues are examined in this framework: the impact of a minimum wage and the effect of introducing a minimum pension guarantee. In each case, the implications of choosing the ndividual as the income unit are examined and an analysis of the issue by gender is presented.&lt;/p&gt;<br>Classification-JEL: C81, D31, H55, J16.<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.1997.tb00251.x/abstract<br>File-Format: application/pdf<br>File-Size: 90<br>Handle: RePEc:ifs:fistud:v:18:y:1997:i:1:p:1-22<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name: Orazio Attanasio<br>Author-X-Name-First: Orazio<br>Author-X-Name-Last: Attanasio<br>Author-Email: o.attanasio@ucl.ac.uk<br>Author-Workplace-Name: Institute for Fiscal Studies and University College London<br>Title: Consumption and saving behaviour: modelling recent trends<br>Journal: Fiscal Studies<br>Pages: 23-47<br>Issue: 1<br>Volume: 18<br>Year: 1997<br>Month: February <br>Abstract: &lt;p&gt;This paper illustrates recent trends in household consumption and personal savings in the UK and the US and discusses some theoretical models that can be used to interpret them. The trends in these two countries are interesting for several reasons. The decline in personal saving rates in the US during the 1980s is an unresolved puzzle. The corresponding variable in the UK has undergone large fluctuations, as have several other variables ranging from projected demographic trends to female labour supply. This paper stresses the need to analyse individual data to shed some light on these aggregate trends. It also stresses the need to have a sound structural model to interpret observed patterns in the data.&lt;/p&gt;&lt;p&gt;The theoretical framework discussed throughout the paper is the life-cycle model, which views consumption and saving decisions as part of a dynamic optimisation process. The development of the model and the current research agenda and ways that it can be enriched with various degrees of sophistication are discussed. Particular attention is devoted to the discussion of the most recent developments.&lt;/p&gt;<br>Classification-JEL: D1, E21<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.1997.tb00252.x/abstract<br>File-Format: application/pdf<br>File-Size: 97<br>Handle: RePEc:ifs:fistud:v:18:y:1997:i:1:p:23-47<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name: Chris Giles<br>Author-X-Name-First: Chris<br>Author-X-Name-Last: Giles<br>Author-Email: <br>Author-Workplace-Name: Institute for Fiscal Studies<br>Author-Name: Paul Johnson<br>Author-X-Name-First: Paul<br>Author-X-Name-Last: Johnson<br>Author-Email: paul_j@ifs.org.uk<br>Author-Workplace-Name: Institute for Fiscal Studies<br>Author-Name: Julian McCrae<br>Author-X-Name-First: Julian<br>Author-X-Name-Last: McCrae<br>Author-Email: <br>Author-Workplace-Name: Institute for Fiscal Studies<br>Title: Housing benefit and financial returns to employment for tenants in the social sector<br>Journal: Fiscal Studies<br>Pages: 49-72<br>Issue: 1<br>Volume: 18<br>Year: 1997<br>Month: February <br>Abstract: &lt;p&gt;&lt;p&gt;&lt;p&gt;This paper examines the impact of the UK housing benefit system on the financial returns to employment of people in local authority or Housing Association accommodation. It outlines the current structure of housing benefit and examines its effects on the returns to employment using data from the Family Expenditure Survey. It analyses the consequences of a number of reforms to the current system - lowering social rents, increasing the levels of housing benefit received in work and restricting the amount of rent covered by housing benefit payments. This analysis highlights the trade-offs involved in various strategies available for restructuring the present system.&lt;/p&gt;<br>Classification-JEL: H3, H4, J3<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.1997.tb00253.x/abstract<br>File-Format: application/pdf<br>File-Size: 104<br>Handle: RePEc:ifs:fistud:v:18:y:1997:i:1:p:49-72<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Kim Swales<br>Author-X-Name-First: Kim<br>Author-X-Name-Last:  Swales<br>Author-Email: <br>Author-Workplace-Name:<br>Title: A cost-benefit approach to the evaluation of regional selective assistance<br>Journal: Fiscal Studies<br>Pages: 73-85<br>Issue: 1<br>Volume: 18<br>Year: 1997<br>Month: February <br>Abstract: &lt;p&gt;The 'Green Book' and the recent EGRUP report support exchequer cost per job as a key input in the ex-ante appraisal of individual applications for Regional Selective Assistance (RSA) and the ex-post evaluation of the RSA scheme as a whole. In this paper, following a recommendation in the House of Commons Trade and Industry Committee's report on regional policy, the merits of an alternative, explicitly cost-benefit, framework are outlined. This approach incorporates the administration and compliance costs of the subsidy, costs at present ignored in RSA evaluation studies. An optimal ex-ante appraisal rule is developed. This takes the form of a cost-per-job ceiling, and a representative value is calculated for this figure. &lt;/p&gt;<br>Classification-JEL: H20<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.1997.tb00254.x/abstract<br>File-Format: application/pdf<br>File-Size: 74<br>Handle: RePEc:ifs:fistud:v:18:y:1997:i:1:p:73-85<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name: Judith Freedman<br>Author-X-Name-First: Judith<br>Author-X-Name-Last: Freedman<br>Author-Email: judith.freedman@law.ox.ac.uk<br>Author-Workplace-Name: Institute for Fiscal Studies and Worcester College, Oxford<br>Author-Name:  Emma Chamberlain<br>Author-X-Name-First: Emma<br>Author-X-Name-Last:  Chamberlain<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Horizontal equity and the taxation of employed and self-employed workers <br>Journal: Fiscal Studies<br>Pages: 87-118<br>Issue: 1<br>Volume: 18<br>Year: 1997<br>Month: February <br>Abstract: &lt;p&gt;The schedular system of income tax in the UK frequently comes under attack, not least in relation to the distinctions it draws between the tax treatment of the employed and the self-employed. However, on examination, it appears that non-schedular systems of taxation share both these distinctions and the difficulties that arise from them, albeit to varying degrees. The division between employed and self-employed is also problematic for social security systems. These difficulties are found, to a greater or lesser extent, in all the jurisdictions studied by the authors. It may be argued that all or some of the tax and social security differences are justified by fundamental economic and legal differences between the nature of employment and self-employment relationships. This may be true where the relationships compared are unambiguously, on the one hand, employment and, on the other, self-employment. However, there have always been non-standard relationships that combine characteristics of both these broad categories. This grey area appears to be increasing with changing work patterns. Consequently,the simple dichotomous system adopted by the UK tax and social security systems has come under pressure. This article considers the problems arising from this situation and some of the ideas that have been put forward to deal with them.&lt;/p&gt;<br>Classification-JEL: H24, K34.<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.1997.tb00255.x/abstract<br>File-Format: application/pdf<br>File-Size: 103<br>Handle: RePEc:ifs:fistud:v:18:y:1997:i:1:p:87-118<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Cathy Pharoah<br>Author-X-Name-First: Cathy<br>Author-X-Name-Last:  Pharoah<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name:  Sarah Tanner<br>Author-X-Name-First: Sarah<br>Author-X-Name-Last:  Tanner<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Trends in charitable giving<br>Journal: Fiscal Studies<br>Pages: 427-444<br>Issue: 4<br>Volume: 18<br>Year: 1997<br>Month: January  <br>Abstract: &lt;p&gt;The charitable giving of UK households has changed considerably over the past 20 years. In particular, the proportion of households giving to charity fell by 5 percentage points between 1974 and 1993-4. An increase in the average size of donations meant that total voluntary income increased in real terms over the period, but, since 1988, voluntary income has stagnated. The greatest falls in the number of givers are among households in their twenties and thirties. There are clear trends in giving across households by age and income, with younger and poorer households tending to give less. But not only are today's younger households less likely to give than today's middle-aged households; they are also less likely to give than today's middle-aged households did when they were young. These generational trends in giving do not bode well for levels of voluntary income in the future. &lt;/p&gt;<br>Classification-JEL: D12, D6.<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.1997.tb00272.x/abstract<br>File-Format: application/pdf<br>File-Size: 80<br>Handle: RePEc:ifs:fistud:v:18:y:1997:i:4:p:427-444<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name: Paul Johnson<br>Author-X-Name-First: Paul<br>Author-X-Name-Last: Johnson<br>Author-Email: paul_j@ifs.org.uk<br>Author-Workplace-Name: Institute for Fiscal Studies<br>Author-Name:  Gary Stears<br>Author-X-Name-First: Gary<br>Author-X-Name-Last:  Stears<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Pensioner income inequality<br>Journal: Fiscal Studies<br>Pages: 69-93<br>Issue: 4<br>Volume: 16<br>Year: 1996<br>Month: November <br>Abstract: &lt;p&gt;One-and-a-half million pensioners are dependent on the minimum means-tested benefit, income support. But the numbers on income support have barely changed in two decades despite substantial increases in its value and that of its precursor, supplementary benefit. At least another 2 million receive means-tested housing benefit or council tax benefit. At the same time, in 1992-93, 3 million pensioners paid over &pound;5 billion in income tax, a small minority at the higher rate of income tax. Pensioners are poorer than the working population, and some are on very low incomes, but they are not uniformly poor.&lt;/p&gt;<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.1995.tb00233.x/abstract<br>File-Format: application/pdf<br>File-Size: 360<br>Handle: RePEc:ifs:fistud:v:16:y:1996:i:4:p:69-93<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name: Lorraine Dearden<br>Author-X-Name-First: Lorraine<br>Author-X-Name-Last: Dearden<br>Author-Email: l.dearden@ifs.org.uk<br>Author-Workplace-Name: Institute for Fiscal Studies and Bedford Group, Institute of Education, University of London<br>Author-Name:  Alexandra Heath<br>Author-X-Name-First: Alexandra<br>Author-X-Name-Last:  Heath<br>Author-Email: <br>Author-Workplace-Name:<br>Title: Income support and staying in school: what can we learn from Australia's AUSTUDY experiment?<br>Journal: Fiscal Studies<br>Pages: 1-30<br>Issue: 4<br>Volume: 17<br>Year: 1996<br>Month: November <br>Abstract: &lt;p&gt;In Australia, as in most industrialised countries, there has been a dramatic increase in unemployment rates over the last three decades. The teenage labour market, in particular, has undergone significant structural changes which have resulted in large increases in the rate of unemployment among teenagers. The proportion of children staying on at school past the minimum leaving age and higher-education participation rates have also been rising over this period. Despite this, the overall full-time education participation of Australian teenagers remains low compared with that in most other OECD nations. &lt;/p&gt;<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.1996.tb00246.x/abstract<br>File-Format: application/pdf<br>File-Size: 959<br>Handle: RePEc:ifs:fistud:v:17:y:1996:i:4:p:1-30<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name: Amanda Gosling<br>Author-X-Name-First: Amanda<br>Author-X-Name-Last: Gosling<br>Author-Email: ag251@kent.ac.uk<br>Author-Workplace-Name: Institute for Fiscal Studies and University of Kent<br>Title: Minimum wages: possible effects on the distribution of income<br>Journal: Fiscal Studies<br>Pages: 31-48<br>Issue: 4<br>Volume: 17<br>Year: 1996<br>Month: November <br>Abstract: &lt;p&gt;Since the 1980s, there has been increased interest among unions and two opposition parties in the possibility of introducing a national minimum wage (NMW). The central argument for a minimum wage is a social justice one: a minimum wage is deemed necessary to prevent some employers exploiting workers with little bargaining power by paying them less than the value of the goods and services they produce. The aim of this paper is to establish what sort of people might be affected by a minimum wage, how this might have changed over time and how far a minimum wage can be used as a tool to redistribute income from the rich to the poor. No attempt is made to simulate the effect of a NMW on employment and prices, and obviously any complete analysis needs to take these effects onto account. Recent research (see the discussion below) on this issue, however, indicates little evidence that a 'moderate' minimum will have any effect on employment and it is thus likely that the 'First-round effects' described in this paper are informative.&lt;/p&gt;<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.1996.tb00247.x/abstract<br>File-Format: application/pdf<br>File-Size: 143<br>Handle: RePEc:ifs:fistud:v:17:y:1996:i:4:p:31-48<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name:  Andres Gomez-Lobo<br>Author-X-Name-First: Andres<br>Author-X-Name-Last:  Gomez-Lobo<br>Author-Email: <br>Author-Workplace-Name:<br>Title: The welfare consequences of tariff rebalancing in the domestic gas market<br>Journal: Fiscal Studies<br>Pages: 49-65<br>Issue: 4<br>Volume: 17<br>Year: 1996<br>Month: November <br>Abstract: &lt;p&gt;The domestic energy markets in the United Kingdom are still in a process of structural change. Earlier this year, limited competition for the supply of household domestic gas was introduced, with full-scale competition expected to develop in the next few years. Competition for the supply of electricity to households is expected to begin in 1998.&lt;/p&gt;&lt;p&gt;The introduction of competition in the supply of these energy goods will force tariffs to become more cost-reflective. Until now, maintaining crosssubsidies between consumer groups has not posed any difficulties, given that the suppliers of electricity as well as British Gas have enjoyed monopoly concessions. Profits lost by subsidising one group of consumers have been compensated by higher price-over-cost margins for other groups. Competition is likely to change this. New entrants will try to target market segments where current prices are above supply costs and will have no incentive to supply groups where costs are above prices. To survive, incumbents - who have universal services obligations - will be forced to end internal cross-subsidies.&lt;/p&gt;<br>File-URL: http://www.ifs.org.ukhttp://onlinelibrary.wiley.com/doi/10.1111/j.1475-5890.1996.tb00248.x/abstract<br>File-Format: application/pdf<br>File-Size: 386<br>Handle: RePEc:ifs:fistud:v:17:y:1996:i:4:p:49-65<p>Template-Type: ReDIF-Article 1.0
<br>Author-Name: Laura Blow<br>Author-X-Name-First: Laura<br>Author-X-Name-Last: Blow<br>Author-Email: l.blow@ifs.org.uk<br>Author-Workplace-Name: Institute for Fiscal Studies<br>Author-Name:  John Hall<br>Author-X-Name-First: John<br>Author-X-Name-Last:  Hall<br>Author-Email: <br>Author-Workplace-Name:<br>Author-Name: Stephen Smith<br>Author-X-Name-First: Stephen<br>Author-X-Name-Last: Smith<br>Author-Email: stephen.smith@ucl.ac.uk<br>Author-Workplace-Name: Institute for Fiscal Studies and University College London<br>Title: Financing regional government in the UK: some issues.<br>Journal: Fiscal Studies<br>Pages: 99-120<br>Issue: 4<br>Volume: 17<br>Year: 1996<br>Month: November <br>Abstract: &lt;p&gt;Over the last decade there has been a resurgence of interest in the possibility of some measure of devolution to regional governments for at least parts of the United Kingdom. In Scotland, the debate has been particularly advanced, and three of the four main political parties in Scotland are committed to substantial devolution. As in the unsuccessful devolution proposals of 1979, the proposals for Scotland are echoed by similar, though less unequivocal, devolution proposals for Wales. Devolution in England has attracted less enthusiasm, and much less vigorous debate, except in a few regions, notably the North East. Regional government raises a number of finance questions, which are the subject of this paper. The issue of finance has been most prominent in the debate over devolution in Scotland, with intense interest focusing on, at one extreme, the fiscal position of Scotland i