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Tuesday, May 12, 2020 | History

1 edition of Tax smoothing in a financially repressed economy found in the catalog.

Tax smoothing in a financially repressed economy

Tax smoothing in a financially repressed economy

evidence from India.

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  • 23 Currently reading

Published by International Monetary Fund in Washington, D.C .
Written in English


Edition Notes

Includes bibliographical references.

SeriesIMF working paper -- WP/98/122
ContributionsInternational Monetary Fund.
The Physical Object
Pagination43 p. ;
Number of Pages43
ID Numbers
Open LibraryOL20197317M

Thus, financial repression is most successful in liquidating debts when accompanied by inflation and can be considered a form of taxation, or alternatively a form of debasement. The size of the financial repression tax was computed for 24 emerging markets from to The results showed that financial repression exceeded 2% of GDP for. I am so frustrated with this book. The authors spend a lot of pages crowing about how people do the wrong thing, e.g. Chapter 1 is titled "I Am Financially Sick". There seems to be a major good concept called "Consumption Smoothing", but after pages in the book there really is not a decent discussion of this in simple logical terms/5(35).

Tax smoothing—keeping tax rates from varying much over time—is a way to reduce the overall tax distortions on citizens who must pay for a given path of government spending. However, financial repression is a costly way for a government to purchase this credibility. Financial Repression: Evidence and Theory. be held by households, banks and, in an open economy, foreigners. The government can practice financial repression by forcing banks to hold a certain fraction of their assets as government bonds. debt allows for greater tax smoothing. Tax smoothing—keeping tax rates from varying much overFile Size: 77KB.

80– Free 70– Mostly Free 60– Moderately Free 50– Mostly Unfree 0– Repressed Economic Freedom ScoresFile Size: KB. Tax Smoothing in Frictional Labor Markets Meeting Papers, Society for Economic Dynamics View citations (4) Also in International Finance Discussion Papers, Board of Governors of the Federal Reserve System (U.S.) () View citations (4) See also Journal Article in Journal of Political Economy () Competitive search equilibrium in.


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Tax smoothing in a financially repressed economy Download PDF EPUB FB2

The paper also finds evidence of tax tilting, reflected in financial repression, which has led to the accumulation of excessive public liabilities.

Keywords: Tax smoothing, financial repression, fiscal policy, IndiaCited by: Additional Physical Format: Online version: Cashin, Paul.

Tax smoothing in a financially repressed economy. [Washington, D.C.]: International Monetary Fund, Fiscal. This concept of tax smoothing, first introduced by Barro (), is now well established in the literature on fiscal policy. 2 Tax smoothing has the normative implication that budget imbalances can be optimal fiscal policy responses to anticipated future events.

Two broad considerations motivate a government to run a deficit: tax smoothing and tax tilting. This paper tests a version of Barro’s tax-smoothing model, using Indian data for the period to The empirical results indicate that the central government of India has tax-smoothed, while the regional governments of India have not.

Title: Tax Smoothing in a Financially Repressed Economy: Evidence from India - WP/98/ Created Date: 9/26/ AM. The paper also finds evidence of tax tilting, reflected in financial repression, which has led to the accumulation of excessive public liabilities.

Tax Smoothing in a Financially Repressed Economy: Evidence from IndiaCited by: The empirical results indicate that the central government of India has tax-smoothed, while the regional governments of India have not. The paper also finds evidence of tax tilting, reflected in financial repression, which has led to the accumulation of excessive public : Paul Cashin, Nilss Olekalns and Ratna Sahay.

Our empirical results for Turkey, which is an emerging economy, are consistent with that of Rocha (), presenting evidence against tax smoothing for Brazil, while they differ from that of.

The tax smoothing hypothesis (TSH) is tested for the New Member States of the European Union. Our results show that the TSH holds for five countries, the introduction of the Maastricht 3%-deficit rule, however, had very little effect with regard to the validity of the TSH.

The small-open-economy assumption tied down the real interest rate. Tax smoothing does not require constancy of the coefficient of relative risk aversion, but it does need constancy (or, at a minimum, martingale-like behavior) of the compensated elasticity of labor by: 5.

Tax Smoothing in a Financially Repressed Economy: Evidence from India” IMF Working Paper 98/ To submit an update or takedown request for this paper, please submit an Update/Correction/Removal : Gerhard Reitschuler.

(4) measures the tax-smoothing component of the actual budget surplus; when βtax-smoothing surplus sur t sm will be larger than the measured budget surplus (sur t), since the incentive is for the government to defer tax collections into the future and so run a budget deficit in the present on tax-tilting by: Any remaining errors are ours.

Huang acknowledges financial support from the National Science Council of ROC under grant NSCSOHOO /93/$ 6 Elsevier Science Publishers B.V.

A tax smoothing model as that formulated by Barro () assumes that the government minimizes the present discounted value of tax collection. Vol Issue 3, September ISSN: (Print) X (Online) Liberalization Policies and Welfare in a Financially Repressed Economy.

Trade Tax and Exchange Rate Coordination in the Context of Border Trading: A Theoretical Analysis. The Order of Economic Liberalization: Financial Control in the Transition to a Market Economy (The Johns Hopkins Studies in Development) [Mckinnon, Ronald I.] on *FREE* shipping on qualifying offers.

The Order of Economic Liberalization: Financial Control in the Transition to a Market Economy (The Johns Hopkins Studies in Development)Cited by: Pakistan has a long history of running fiscal deficits. There are two broad considerations motivating a government to run a deficit — tax smoothing and tax tilting.

Robert Barro’s (Gallatin’s?) Model of Tax Smoothing Barro, Robert J. “On the Determination of the Public Debt”, Journal of Political Economy, 5, pp. Infinite horizon. Tax create distortions (i.e. inefficiencies) which increase at an increasing rate with the tax rate. Government would like to minimize these.

Tax smoothing minimises the economic costs of raising taxes to finance a varying profile of expenditure. This standard result assumes that expenditure pressures do not vary with the short term fiscal position.

In the presence of expenditure creep, however, tax smoothing is no longer optimal tax. Working Paper File Downloads Abstract Views; Last month: 3 months: 12 months: Total: Last month: 3 months: 12 months: Total 'Riding on the Sheep's Back': Examining Australia's Dependence on.

How coronavirus almost brought down the global financial system Illustration: Peter Reynolds The crisis has brought the economy to a near halt, and left millions of people out of work. Income smoothing is not illegal if the process follows generally accepted accounting principles (GAAP).

Talented accountants are able to adjust financial books in Author: Will Kenton.Cashin, P., Olekalns, N. and Sahay, R. () ‘Tax Smoothing in a Financially Repressed Economy: Evidence from India’, IMF Working Paper 98 (), International Monetary Fund. Domar, E. () 'The Burden of the Debt and the National Income' American Economic Review 34 (4): zkhuh W | ghqrwhv jryhuqphqw uhyhqxh iurp wkh dyhudjh wd{ udwh | /vxfkwkdw W| @ |\| zkhuh \ | ghqrwhv uhdo rxwsxw1 Wkh jurvv lqwhuhvw udwh/ UA 4/ lv dvvxphg wr eh {hg1 Wkh jryhuqphqw wdhnv wkh jryhuqphwq h{shqglwxuh surfhvv/ i J | j / dqg wkh lqlwldo vwrnf ri ghew/ G f /dvjlyhq1 Ydoxhvri J gdwhg w.

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