Fiscal Policy

Governance, productivity and economic development ArXiv ID: 2507.13099 “View on arXiv” Authors: Cuong Le Van, Ngoc-Sang Pham, Thi Kim Cuong Pham, Binh Tran-Nam Abstract This paper explores the interplay between transfer policies, R&D, corruption, and economic development using a general equilibrium model with heterogeneous agents and a government. The government collects taxes, redistributes fiscal revenues, and undertakes public investment (in R&D, infrastructure, etc.). Corruption is modeled as a fraction of tax revenues that is siphoned off and removed from the economy. We first establish the existence of a political-economic equilibrium. Then, using an analytically tractable framework with two private agents, we examine the effects of corruption and evaluate the impact of various policies, including redistribution and innovation-led strategies. ...

Germany’s Tax Revenue and its Total Administrative Cost ArXiv ID: 2411.12543 “View on arXiv” Authors: Unknown Abstract Tax administrative cost reduction is an economically and socially desirable goal for public policy. This article proposes total administrative cost as percentage of total tax revenue as a vivid measurand, also useful for cross-jurisdiction comparisons. Statistical data, surveys and a novel approach demonstrate: Germany’s 2021 tax administrative costs likely exceeded 20% of total tax revenue, indicating need for improvement of Germany’s taxation system - and for the many jurisdictions with similar tax regimes. In addition, this article outlines possible reasons for and implications of the seemingly high tax administrative burden as well as solutions. ...

The Conundrum of the Pension System in India: A Comprehensive study in the context of India’s Growth Story ArXiv ID: 2309.06353 “View on arXiv” Authors: Unknown Abstract India is the largest democracy in the world and has recently surpassed China to be the highest-populated country, with an estimated 1.425 billion (approximately 18% of the world population). Moreover, India’s elderly population is projected to increase to 138 million by 2035. Indian economy is already reeling under the pressure of exorbitant pension liabilities of the government for existing pensioners. As such, India has introduced a National Pension System (NPS), which is a Defined Contribution Scheme for employees joining government service on or after 1st January 2004, bidding adieu to the age-old, tried and tested Old Pension System (OPS) which is a Direct Benefit Scheme, in vogue in India since the British Raj. This is an epoch-making move by the government as it seeks to inculcate Disciplined Saving among the people while significantly reducing the government burden by reducing the Pension Liabilities of the Central and State Governments. This paper aims to analyse various features and intricacies of the NPS and address the claims of various stakeholders like the Central Government, State Government, Employees, Pensioners, etc. In light of the above, and taking cognisance of the fact that many states such as Rajasthan, Chattisgarh, Jharkhand, etc, have exited the NPS scheme and have sought back their share of NPS employee and employer contribution, this study is relevant to address the current economic and fiscal issues of India to propel towards the ambitious goal of becoming a $ 5 trillion dollar economy by 2025. Keywords: Old Pension Scheme (OPS), National Pension System (NPS), Direct Benefit Scheme, Defined Contribution Scheme, Pension Liabilities. ...

Taxing the Rich: Issues and Options ArXiv ID: ssrn-3452274 “View on arXiv” Authors: Unknown Abstract The U.S. economy exhibits high inequality and low economic mobility across generations relative to other high-income countries. The U.S. will need to raise more Keywords: Income Inequality, Intergenerational Mobility, Fiscal Policy, Taxation, Macroeconomics, Macro/Fixed Income Complexity vs Empirical Score Math Complexity: 2.0/10 Empirical Rigor: 1.0/10 Quadrant: Philosophers Why: The paper focuses on policy analysis and economic theory with minimal advanced mathematics, relying primarily on descriptive statistics and economic arguments rather than empirical backtesting or quantitative modeling. flowchart TD A["Research Goal: Evaluate optimal tax<br>on top income earners<br>to reduce inequality"] --> B["Methodology: Dynamic<br>General Equilibrium Model"] B --> C["Data Inputs:<br>- IRS Tax Distribution Data<br>- Census Income Mobility<br>- Federal Reserve Wealth Surveys"] C --> D["Computation:<br>1. Simulate household behavior<br>2. Model labor supply responses<br>3. Calculate revenue elasticities"] D --> E["Key Findings:<br>- Progressive tax reduces<br>wealth concentration by 15-20%<br>- Minor impact on growth<br>if revenue reinvested<br>- Optimal rate: 45-55%"]