Financial Restrictions, Personal Income Tax (PIT) and Demand for a Permanent Home in a Dynamic Model. An analysis with Panel Data for Spain

This paper analyzes the way in which income tax and liquidity determine the purchase or rental of a permanent home in Spain. To do this, we have developed a theoretical dynamic model based on Euler’s equation. This model is verified using a sample from the 1991-1995 Panel of income taxpayers. Results suggest that the degree of financial restriction is the most relevant variable when determining the possibility of purchasing a home, while tax incentives increase their relative weighting once this asset has been acquired. Incentives for renting a home are relatively insignificant particularly for taxpayers who habitually rent their homes.personal income tax, liquidity, permanent home, tax incentives

Financial Restrictions, Personal Income Tax (PIT) and Demand for a Permanent Home in a Dynamic Model. An analysis with Panel Data for Spain

This paper analyzes the way in which income tax and liquidity determine the purchase or rental of a permanent home in Spain. To do this, we have developed a theoretical dynamic model based on Euler’s equation. This model is verified using a sample from the 1991-1995 Panel of income taxpayers. Results suggest that the degree of financial restriction is the most relevant variable when determining the possibility of purchasing a home, while tax incentives increase their relative weighting once this asset has been acquired. Incentives for renting a home are relatively insignificant particularly for taxpayers who habitually rent their homes.personal income tax, liquidity, permanent home, tax incentives

Financial Restrictions, Personal Income Tax (PIT) and Demand for a Permanent Home in a Dynamic Model. An analysis with Panel Data for Spain

This paper analyzes the way in which income tax and liquidity determine the purchase or rental of a permanent home in Spain. To do this, we have developed a theoretical dynamic model based on Euler’s equation. This model is verified using a sample from the 1991-1995 Panel of income taxpayers. Results suggest that the degree of financial restriction is the most relevant variable when determining the possibility of purchasing a home, while tax incentives increase their relative weighting once this asset has been acquired. Incentives for renting a home are relatively insignificant particularly for taxpayers who habitually rent their homes.personal income tax, liquidity, permanent home, tax incentives

IS A TAX CUT ON CULTURAL GOODS CONSUMPTION ACTUALLY DESIRABLE?:A MICROSIMULATION ANALYSIS

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 nineteen different groups of goods, including cultural goods. Expenditure and price elasticities have been obtained from this model. Using this information, three alternatives cuts in the V.A.T. 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.Microsimulation, tax reforms, cultural consumption, welfare

Productivity, adjustment costs and R&D investment prices An analysis of a panel of Spanish manufacturing companies

This study analyses the role played by adjustment costs and R&D investment prices in total R&D productivity. The results show that on average, for each monetary unit increase in adjustment costs produces a fall in productivity of 0.034 monetary units.R&D, productivity, adjustment costs

An international comparison of effective marginal taxes on labour use

The purpose of this paper is to compare the different levels of tax rates on the use of the labour force in a range of OECD countries, using the methodology of effective marginal tax rates. Results for the United Kingdom, Australia, Sweden, France, Germany, Italy, Portugal, Japan, the United States and Spain are provided for 1983-2001 period.effective marginal taxes, labour, OECD countries

The Impact of Policy on the Efficiency of Solar Energy Plants in Spain: A Production-Frontier Analysis

The analysis of the impact of remuneration schemes for renewable electricity, and solar photovoltaics (PV) in particular, on the effectiveness of renewable energy deployment and the total costs of support has received a considerable attention in the past. In contrast, the literature on the effects of deployment support on productive efficiency and, more specifically, on the incentives to locate the plants in the sites with the best renewable energy resources is tiny. This article covers this gap in the literature. Its aim is to identify the impact of successive feed-in tariff (FIT) reforms on the location of solar PV plants in Spain between 2009 and 2013 using a unique dataset of PV plants and a panel stochastic production-frontier model. The analysis shows that more generous FITs, i.e. those providing a higher net support (support levels minus generation costs) have not encouraged the location of those plants in the best sites. Our results suggest that the design elements in instruments to support the deployment of renewable energy projects should carefully be chosen in order to encourage the selection of the best sites.EU Framework Programme for Research and Innovation H2020 under the Grant Agreement No. 730403 (INNOPATHs

Further considerations on the link between adjustment costs and the productivity of R&D investment: evidence for Spain

This article constructs a dynamic model to estimate the impact of adjustment costs on the productivity of investment in R&D. In order to take into account the possible endogeneity of adjustment costs, the model is estimated by means of instrumental variables (IV), using a panel of Spanish companies. The results show that the elasticity of the productivity of R&D investment with regard to adjustment costs is high, with a value close to -1 (-0.96). This confirms that it is essential to include adjustment costs in the empirical analysis of R&D productivity, as suggested by Jones and Williams (1998) and Comin (2002, 2004).