The Unemployment Benefit System: a Redistributive or an Insurance Institution?

We analyze the effects of the unemployment benefit system on the economy. In particular, we focus on both the tax structure and the unemployment benefits composition. We show that if the unemployment benefit system is only paid by firms, then employment and production are maximized. Moreover, the way the government contemplates the unemployment benefit system, either as a redistributive or as an insurance institution, is crucial for the dynamics and the equilibria of the economy.unemployment benefit system, payroll tax, wage tax.

Estate taxation with warm-glow altruism

This article examines the properties of the optimal fiscal policy in an economy with warm-glow altruism (utility interdependence) and heterogeneous individuals. We propose a new efficiency concept, D-efficiency, that considers an implicit constraint in the act of giving: donors cannot bequeath to donees more than their existing resources. Considering this constraint, we show that the market equilibrium is not socially efficient. The efficient level of bequest transfers can be implemented by the market with estate and labor-income subsidies and a capital-income tax. In the absence of lump-sum taxation, the government faces a trade-off between minimizing distortions and eliminating external effects. The implied tax policy differs from Pigovian taxation since the government's ability to correct the external effects is limited. Finally, we show that the efficiency-equity trade-off does not affect the qualitative features of the optimal distortionary fiscal policy.Altruism ; Taxation

Indirect taxation and the welfare effects of altruism on the optimal fiscal policy

This paper analyzes the welfare effects of altruism on the optimal fiscal policy. The existence of positive bequests links present and future generations in the economy. We show that these altruistic links provide a new role for indirect taxation (consumption and estate taxes) with important welfare implications. We use three different altruistic approaches (warm-glow, dynastic, and family) to illustrate how the presence of bequests in the budget constraint of the donee gives the government the ability to use indirect taxation to mimic lump-sum taxation and to implement the first-best outcome in the long-run. This channel is not present in economies without altruism, such as the infinite-lived consumer economy or the overlapping generations economy, where long-run welfare is suboptimal and indirect taxation is irrelevant.Taxation ; Fiscal policy

BAT-7, TEA abilities battery: description and psychometric

El BAT-7 es una nueva batería que permite estimar la inteligencia (factor general, g; inteligencia fluida, Gf; e inteligencia cristalizada, Gc) y evaluar 8 aptitudes cognitivas: razonamiento verbal (V), de razonamiento espacial (E), atención (A) y Concentración (Con), razonamiento abstracto (R), razonamiento numérico (N), razonamiento mecánico (M) y ortografía (O). Se compone de tres formas o niveles de dificultad creciente (Elemental, Medio y Superior) y está diseñada para la evaluación intelectual colectiva e individual de los estudiantes de E. Secundaria y universitarios, así como adultos con diferentes niveles educativos. El presente trabajo tiene como objetivo ofrecer una descripción del desarrollo de la prueba y de las principales características de la misma así como un resumen de sus propiedades psicométricas, fundamentalmente de su fiabilidad y validez. La muestra de tipificación española estuvo formada por 4.263 alumnos (de 1.º de ESO hasta 2.º de Bachillerato) y 1.507 adultos de diferente nivel educativo y edad. La fiabilidad fue estudiada por medio de las funciones de información y de los coeficientes alfa de Cronbach y alfa ordinal. La validez se exploró mediante análisis factoriales confirmatorios multigrupo (ACF). Los ítems que componen cada prueba muestran un buen ajuste al modelo TRI de tres parámetros utilizado. Los valores del alfa ordinal variaron de 0,79 hasta 0,91 para las puntuaciones de la prueba y 0,91-0,97 para las puntuaciones compuestas o índices. El modelo factorial basado en la teoría CHC mostró un buen ajuste a los datos observados (RMSEA = 0,034 ; SRMR = 0,026 ; CFI = 0,981). Los resultados obtenidos en términos de ajuste al modelo de TRI, fiabilidad y validez indican que el BAT-7 es una medida útil, flexible y altamente fiable para la evaluación de las aptitudes cognitivas y aportan evidencias que apoyan el uso de la batería para la evaluación de las aptitudes intelectuales en escolares y adultos. Igualmente, mediante su aplicación puede obtenerse una estimación de la capacidad general (g), de la inteligencia fluida (Gf) y de la inteligencia cristalizada (Gc).BAT-7 is a new psychometric tool for assessing three intellectual domains, general factor (g), fluid intelligence (Gf) and crystallized intelligence (Gc), and eight cognitive abilities: Verbal (V), Spatial (E), Attention (A) and Concentration (CON), Reasoning (R), Numerical (N), Mechanical (M) and Orthography (O). It consists of three forms of increasing difficulty (E, M and S) and it is focused on the assessment of school and college students, as well as adults with different educational background. The present study aims to provide a description of the BAT-7 development and the main features of it, and a summary of its psychometric properties, mainly its reliability and validity. BAT-7 was administered to a Spanish standardization sample of 4,263 students (age between 12 and 18) and 1,507 adults. Reliability was studied with ordinal alpha, Cronbach’s alpha and tests information functions. Validity was explored by multigroup CFA. 3P IRT model showed a statistical fit for all items. Ordinal alpha ranged from .79 to .91 for test scores and from .91 to .97 for composite scores. The model based on CHC theory showed a good fit to the observed data (RMSEA=.034; SRMR=.026; CFI=.981). The results, in terms of TRI model fitting, reliability and validity, suggest that the BAT-7 is a useful, flexible and highly reliable test for assessing the cognitive abilities, and provide evidences supporting the use of the battery for the assessment of intellectual abilities in children and adults. An estimate of general ability (g), fluid intelligence (Gf) and crystallized intelligence (Gc) also can be obtained by applying the BAT-7.peerReviewe

Downsizing implementation and financial performance

In the present study we explore the relationship between downsizing decisions and corporate financial performance after top management has decided to downsize. Our focus is on the financial consequences arising from the amount of downsizing and the use of disengagement incentives. For this purpose, we use a sample of downsizing announcements in the Spanish press from 1995 up to 2001. Although the results show that the amount of downsizing is not significantly related to post-downsizing profitability, the evidence provided supports the finding that the use of disengagement incentives (which motivate workers to leave the organization) is negatively related to firm performance. Our analysis helps to understand the role that strategic downsizing decisions play in explaining observed variance in the performance of downsized firms. Thus, it advances scholarly organizational research by reinforcing the concept that corporate performance is not only contingent on strategies, but also influenced by the means through which these strategies are implemented