Köthenbürger, Marko

Rent taxation in a small open economy the Effect on transitional generations( )

2 editions published in 2007 in English and held by 16 WorldCat member libraries worldwide

Revisiting the "decentralization theorem" : on the role of externalities by Marko Köthenbürger( Book )

7 editions published in 2007 in English and held by 16 WorldCat member libraries worldwide

The "Decentralization Theoremʺ (Oates, 1972) is central to the discussion of fiscal federalism. We revisit the role of consumption spillovers in evaluating the merits of (de)centralization. Unlike the general prediction, a higher degree of spillovers may reduce the difference in utility of centralization and decentralization. The non-monotonicity result relates to the difference in expenditures on public consumption. Provided decentralized choices yield higher levels of public expenditure, a rise in the amount of spillovers allows residents to enjoy larger gains in public consumption (and thereby utility) under decentralization relative to centralization

Should utility reducing media advertising be taxed? by Hans Jarle Kind( Book )

4 editions published in 2009 in English and held by 15 WorldCat member libraries worldwide

Empirical evidence suggests that people dislike ads in media products like TV programs. In such situations standard economic theory prescribes that the advertising volume can be optimally reduced by levying a tax on ads. However, making use of recent advances in the theory of Industrial Organization and two-sided markets we show that taxing ads may be counterproductive. In particular, we identify a number of situations in which ad-adverse consumers are negatively affected by the tax, and we even show that the tax may lead to higher ad volumes. This unorthodox reaction to a tax may arise when consumers significantly dislike ads, i.e. in situations where traditional arguments for corrective taxes are strongest

Does tax competition really promote growth? by Marko Köthenbürger( Book )

8 editions published between 2007 and 2010 in English and held by 15 WorldCat member libraries worldwide

This paper considers the relationship between tax competition and growth in an endogenous growth model where there are stochastic shocks to productivity, and capital taxes fund a public good which may be for final consumption or an infrastructure input. Absent stochastic shocks, decentralized tax setting (two or more jurisdictions) maximizes the rate of growth, as the constant returns to scale present with endogenous growth implies extremeʺ tax competition. Stochastic shocks imply that households face a portfolio choice problem, which may dampen down tax competition and may raise taxes above the centralized level. Growth can be lower with decentralization. Our results also predict a negative relationship between output volatility and growth, consistent with the empirical evidence

Social security reform and intergenerational trade : is there scope for a Pareto-improvement? by Marko Köthenbürger( Book )

5 editions published in 2002 in English and held by 15 WorldCat member libraries worldwide

In earlier literature, the suggested Pareto improvements in pay-as-you-go (PAYG) systems have relied on the presence of externalities or the possibility of intragenerational redistribution. We show that neither assumption is necessary in an economy with intergenerational trade in a fixed factor of production, here labeled as land. Reducing the social security tax rate encourages investment in complementary human capital. Future efficiency gains accruing to land are capitalized in its value which compensates the landowning pensioners for reduced benefits. We also explain why the PAYG system may have lost its appeal even for pensioners after its introduction

Federal tax-transfer policy and intergovernmental pre-commitment by Marko Köthenbürger( Book )

5 editions published in 2007 in English and held by 14 WorldCat member libraries worldwide

Federal and state governments often differ in the capacity to pre-commit to expenditure and tax policy. Whether the implied sequence of public decisions has any efficiency implications is the subject of this paper. We resort to a setting which contrary to most of the literature does not exhibit a perfect tax-base overlap. We show that a federal government's pre-commitment capacity is welfare-improving. Efficiency, however, does not improve over all decision margins. The welfare-increasing policy entails a more distorted level of public consumption. Moreover, welfare may also improve if local governments are able to pre-commit towards the upper level. The rationale is that although federal transfers are formally unconditional they nevertheless entail a tax-price effect; thereby potentially counteracting incentives to engage in a "race to the bottomʺ in fiscal competition among local governments

Do fiscal transfers alleviate business tax competition? : evidence from Germany by Peter Egger( Book )

4 editions published in 2007 in English and held by 13 WorldCat member libraries worldwide

The paper empirically analyzes the incentive effects of equalizing transfers on business tax policy by exploiting a natural experiment in the state of Lower Saxony which changed its equalization formula as of 1999. We resort to within-state and across-state difference-in-difference estimates to identify the reform effect on municipalities' business tax rates. Confirming the theoretical prediction, the reform had a significant impact on the municipalities' tax policy in the four years after the reform with a phasing outʺ of the effect starting in the fourth to fifth year. The finding is robust to various alternative specifications

Efficiency enhancing taxation in two-sided markets by Hans Jarle Kind( Book )

4 editions published in 2008 in English and held by 13 WorldCat member libraries worldwide

This paper examines the efficient provision of goods in two-sided markets and characterizes optimal specific and ad-valorem taxes. We show that (i) a monopoly may have too high output compared to the social optimum; (ii) output may be reduced by imposing negative value-added taxes (subsidy) or positive specific taxes

Rent taxation and its intertemporal welfare effects in a small open economy by Marko Köthenbürger( Book )

4 editions published in 2007 in English and held by 12 WorldCat member libraries worldwide

Previous literature concludes that replacing wage taxation by taxes on a fixed factor or its rents benefits future generations. However, the effects of such steady-state gains on the transition generations have been left open. In this paper, we show that taxation of rents may also increase utility of the current generation provided tax revenues are earmarked to reduce wage taxes. In particular, a shift in the tax mix may yield an intergenerational Pareto-improvement when the initially prevailing tax mix is sufficiently skewed towards wage taxation

Taxation in two-sided markets by Hans Jarle Kind( Book )

4 editions published in 2006 in English and held by 12 WorldCat member libraries worldwide

Two-sided platform firms serve distinct customer groups that are connected through interdependent demand, and include major businesses such as the media industry, banking, and the software industry. A well known textbook result in one-sided markets is that a government may increase a monopolist's output and reduce the deadweight loss by subsidizing output. The present paper shows that this result need not hold in a two-sided market. On the contrary, a higher ad-valorem tax rate - rather than a subsidy - could increase output and enhance welfare