The Incidence of an Extended Ace Corporation Tax

This paper deals with the efficiency and distributional consequences of a switch from the current German income and corporate tax system to one special variant of an intertemporally neutral tax, an extended ACE (allowance for corporate equity) corporation tax. This tax is favoured by the IFS Capital Taxes Group and was implemented in Croatia in 1994. We not only calculate the welfare consequences of introducing the ACE, but also separate the efficiency effects from intragenerational as well as intergenerational redistribution. The quantitative analysis is based on a dynamic simulation model of the Auerbach-Kotlikoff type which distinguishes between five income classes within each generation. The numerical results indicate that such a fundamental tax reform could yield enormous efficiency gains without necessarily increasing income inequality.Corporate taxation, intra- and intergenerational incidence, dynamic CGE modeling

NGA, IP-Interconnection and their Impact on Business Models and Competition

Developments towards Next Generation Networks (NGN) have a strong impact on the design of the markets for electronic communications in general, but specifically on intercarrier relations with respect to interconnection and access. Due to the fact that competition in the European telecommunications environment has brought about alternative providers and their business models it is an interesting area to investigate how these business models will develop in an NGN environment and which (additional) business models may emerge in the future. To that end, the current paper looks at the development of different business models in the PSTN world and likely developments in the NGN world. This leads to conclusions with respect to requirements of the future regulatory framework of next generation networks in order to maintain the achievements of competition in the telecommunications area.NGN, business models, migration, competition, regulatory framework

NGA, IP-Interconnection and their Impact on Business Models and Competition

Developments towards Next Generation Networks (NGN) have a strong impact on the design of the markets for electronic communications in general, but specifically on intercarrier relations with respect to interconnection and access. Due to the fact that competition in the European telecommunications environment has brought about alternative providers and their business models it is an interesting area to investigate how these business models will develop in an NGN environment and which (additional) business models may emerge in the future. To that end, the current paper looks at the development of different business models in the PSTN world and likely developments in the NGN world. This leads to conclusions with respect to requirements of the future regulatory framework of next generation networks in order to maintain the achievements of competition in the telecommunications area.NGN, business models, migration, competition, regulatory framework.