Public Finance in the Era of the COVID-19 Crisis
18-20 August 2021 | Online, Organized by University of Iceland, Reykjavík
Overview and details of the sessions of this online conference.
Please select a date to show only sessions at that day. Please select a single session for detailed view (with abstracts and downloads if available).
Activate "Show Presentations" and enter your name in the search field in order to find your function (s), like presenter, discussant, chair.
Some information on the session logistics:The last speaker of each session is the session chair. The discussant is always the following speaker, with the first speaker being the discussant of the last paper. Each paper has a 22-minutes-block in all sessions. There should be 15 minutes and no more than 18 minutes for the presenter. The discussion is then started by the discussant. Please note that the role of the discussant is different compared to previous years: The discussant has only 1-2 minutes and s/he is not allowed to give a lengthy summary of the paper together with comprehensive comments. Instead, her/his task is to raise one single question/comment and, in doing so, start the general discussion! All participants are asked to be strict in timing to allow people to change sessions during the general discussion. For a (rare) session with less papers in the session than the time slot allows, stick to the congress schedule and use 22 minutes per presentation to allow listeners to smoothly change between sessions. Only registered participants can attend this online conference. Further information available on the congress website https://iipf2021.hi.is/ .
Please note that all times are shown in the time zone of the conference. The current conference time is: 5th Dec 2021, 04:56:51pm GMT
F03: Fiscal Federalism and Open Economy Public Finance
2:15pm - 2:37pm
Fiscal equalization and tax-hikes: Evidence from a Swiss reform
University of Lausanne, Switzerland
This paper investigates the magnitude of incentive of fiscal equalization on local tax rates. Using quasi-experimental evidence from a reform in a municipal equalization scheme, I propose three refinements to current empirical estimations of incentive effects of fiscal equalization. I firstly show that local policy-makers may conceive changes in equalization transfers as stemming from discrete rather than marginal changes in the tax base. Second, a measure of “effective" equalization rate which conditions on the current tax rate is introduced. Third, I test the existence of redistribution effects on tax rates and thereby challenge the benevolence assumption of local governments. My results show that past literature using marginal equalization rates may have underestimated incentive effects from fiscal equalization. Effective equalization rates are shown to have a small or negative impact on tax rates. No evidence of redistribution effects is found which suggests that jurisdictions are revenue maximizers rather than utility maximizers.
2:37pm - 3:00pm
The Valuation of Local Government Spending: Gravity Approach and Aggregate Implications
Southern Methodist University, United States of America
How much do people value local government spending? What are the effects of fiscal transfers that finance this spending? I develop a spatial equilibrium framework where people’s simultaneous (internal) migration and commuting choices reveal preferences. I combine this framework with administrative data from South Korea and leverage the plausibly exogenous variation in local government spending across districts induced by national tax reforms in 2008 and 2012. The estimated mobility responses imply that workers value each additional dollar of per-capita local government spending by 75 cents of their after-tax income. The general-equilibrium counterfactuals imply that a fiscal arrangement with lower redistribution would result in aggregate gains. A key aspect of my analysis is that bilateral migration and commuting decisions are made jointly. Ignoring any one of these margins biases the estimates of preferences for public goods, distance elasticities of migration or commuting, and the aggregate effects of alternative fiscal arrangements.
3:00pm - 3:22pm
The Marginal Value of Public Funds as a Measure of Welfare in an Open Economy
1University of Kentucky Martin School, United States of America; 2Università della Svizzera italiana, Switzerland
Our objective is to establish and provide a framework for quantifying and calculating the welfare effects of taxation in an open economy, with an emphasis on state and local governments in a federalist system. We do so by developing a model of fiscal policy when there are spillovers in tax bases and expenditures among competing local jurisdictions. We then derive how open economy considerations influence the marginal value of public funds (Hendren 2016). We provide guidance on the additional components of the marginal value of public funds necessary to better understand the welfare effects of spending and taxes in federalist system.
3:22pm - 3:45pm
Random Policies in Federations
University of Michigan
This paper compares outcomes in which centralized and decentralized governments adopt policies of random quality. With freely mobile populations, jurisdictions adopting superior policies experience population inflows. If uncorrected congestion costs are small, then policy diversity promotes higher welfare levels. With significant unpriced convex congestion costs, however, this welfare ordering is reversed: competition induces so great a concentration of population in jurisdictions adopting superior policies that consumer welfare is lower than with centralized (and harmonized) policies. If interjurisdictional mobility is sufficiently limited by rising costs of local fixed factors, diversity among decentralized governments again produces higher welfare than harmonization. Hence the welfare impact of centralization and accompanying policy harmonization depends critically on the nature of crowding costs.
Contact and Legal Notice · Contact Address:
Privacy Statement · Conference: IIPF 2021
|Conference Software - ConfTool Pro 2.6.142
© 2001 - 2021 by Dr. H. Weinreich, Hamburg, Germany