Revenue Policy Research Articles

Equilibrium points and equilibrium sets of some $$\textit{GI}/M/1$$ queues

Queues can be seen as a service facility where quality of service (QoS) is an important measure for the performance of the system. In many cases, the queue implements the optimal admission control (either discounted or average) policy in the presence of holding/congestion cost and revenue collected from admitted customers. In this paper, users offer an arrival rate at stationarity that depends on the QoS they experience. We study the interaction between arriving customers and such a queue under two different QoS measures—the asymptotic rate of the customers lost and the fraction of customers lost in the long run. In particular, we investigate the behaviour of equilibrium points and equilibrium sets associated with this interaction and their interpretations in terms of business cycles. We provide sufficient conditions for existence of equilibrium sets for M/M/1 queue. These conditions further help us to identify the relationship among system parameters for which equilibrium sets exist. Next, we consider $$\textit{GI}/M/1$$ queues and provide a sufficient condition for existence of multiple optimal revenue policies. We then specialize these results to study the equilibrium sets of (i) a D/M/1 queue and (ii) a queue where the arrival rate is locally continuous. The equilibrium behaviour in the latter case is more interesting as there may be multiple equilibrium points or sets. Motivated by such queues, we introduce a weaker version of monotonicity and investigate the existence of generalized equilibrium sets.

Measuring the Efficiency of Fiscal Policies for Environmental Pollution Control and the Spatial Effect of Fiscal Decentralization in China.

This paper uses both fiscal expenditure policy and fiscal revenue policy as input indicators and selects environmental pollution control results reflecting different forms and sources of pollution as output indicators. The efficiency of fiscal policies for environmental pollution control (EFPE) of 30 provincial-level administrative divisions in China from 2007 to 2017 is measured by adopting the data envelopment analysis (DEA) method. Then, the spatial effect of fiscal decentralization on EFPE is empirically analyzed by using the spatial lag model (SLM). The results show that EFPE values in China have been greatly improved overall since 2014. The change in technical efficiency (TE) is caused mainly by the change in pure technical efficiency (PTE). EFPE values have regional heterogeneity and convergence. The eastern region has clearly higher EFPE values than other regions. The growth rate of the low efficient region is greater than that of the high efficient region. Fiscal expenditure decentralization has a direct negative effect and spatial spillover effect on EFPE values, while fiscal revenue decentralization has a non-significant effect. Based on these results, this paper proposes the following policy implications: increasing the level of fiscal expenditure of environmental pollution control and improving the central transfer payment system for environmental protection; reforming the government performance assessment system and innovating the conditions of government expenditure on environmental pollution control; and promoting horizontal fiscal cooperation in cross-regional environmental governance.

Revenue Generation and Capital Projects Development in Lagos State, Nigeria

Government capital expenditure is one of the instruments of fiscal policy in achieving macroeconomic objectives, as it improves the provision of capital projects and infrastructural facilities in the economy. Inadequate capital projects have contributed to poor infrastructural facilities in the Nigeria economy. Therefore, the populace is desiring of good infrastructural amenities from the government as well as the potential investors, as poor infrastructural facilities discourages potential investors from investing in the country. Availability and efficient use of revenue generated by the government would help in closing the gaps in the citizens' requirements of providing the infrastructures. This study examined the effect of revenue generation on the capital projects development in Lagos state from 2000-2018.This study employed ex-post facto research design. Population and sample size comprised entire revenue generated and total capital expenditures incurred for capital projects development in Lagos state from 2000 to 2018. Secondary method of data collection was employed and were sourced from the annual reports prepared by Accountant General of the State with Auditor General's validation and Central Bank of Nigeria Bulletins. It was analyzed using correlation and Ordinary Least Square regression.he findings revealed that government revenue has a significant effect on the total capital projects development in Lagos state as well as on RCAPEX and ECAPEX. Also, STR in isolation has a significant positive effect on the CAPEX, RCAPEX and ECAPEX. However, OIGR in isolation has an insignificant negative effect on CAPEX and ECAPEX and insignificant positive effect on RCAPEX.The study concluded that, Lagos state government is yet to economically, effectively and efficiently utilize the revenue generated for capital projects development. The study recommended that state governments should establish a revenue policy that will improve capital projects development rather than using other means of financing the capital projects.

Assessment of Measures for Tax Regulation of Transfer Pricing from the Standpoint of National Welfare

This article is devoted to development of mathematical models for resolving an actual scientific challenge in the field of corporate finance. This involves substantiating taxation policies for the counter-acting tax planning of multinational companies (MNC), and then devising and articulating the appropriate international taxation scheme, as evaluated from the position of national welfare policy. Based on an analysis of existing models of international taxation, and on the peculiarities of the actual mechanism of capital movement tax regulation, new models with equilibrium postulated have been developed.
 The primary mechanisms of this research involve the following considerations: (1) examination of an approach targeted at the determination of the final outcomes of international taxation from the perspective of national economies; (2) measures of tax planning on the part of MNCs, and corresponding counter-acting measures to the tax planning applied by governments, are taken as a complex.
 Our results indicate that because a government uses rules of controlled transactions, in order to counter-act MNCs’ tax planning, for the government the final outcome from an application of these rules may be negative. This is due to a possibility of MNCs’ development in convenient and offshore jurisdictions. This finding is illustrated by means of an approbation of models with a case study involving a three-tier structure.Further to this point, instead of additional revenues, a government is at a risk of a shrinking tax base and a reduction in budget revenues; and moreover from the perspective of national welfare, the additional loss of revenues and capital of MNCs. Therefore there is a significant importance in forming rules for MNC taxation policies which would focus not on taxes as such, but would focus on trying to keep capital within the territory and/or would facilitate the return of earlier divested income. This could be attempted, for example, by using the secondary adjustment rule in conjunction with a minimum tax on return.
 The novelty of this research resides in the specificity of our investigation and the applicability of our conclusions to the practical challenges of international taxation and national revenue policies. The peculiarities of this economic moment and the crucial challenges for national governments in dealing with MNCs and the digital economy underline the significance of this study. Our results expand and develop the existing literature in this ever-crucial area be of immediate use to policymakers, academics and administrators involved in national and international taxation, finance, economics, and analysis.

Rating exotic price coverage in crop revenue insurance

PurposeRevenue insurance is the most popular form of insurance available in the US federal crop insurance program. The majority of crop revenue policies are sold with a harvest price replacement feature that pays out on lost crop yields at the maximum of a realized or projected harvest price. The authors introduce a novel actuarial and statistical approach to rate revenue insurance policies with exotic price coverage: the payout depends on an order statistic or average of prices. The authors examine the price implications of different dependence models and demonstrate the feasibility of policies of this type.Design/methodology/approachHierarchical Archimedean copulas and vine copulas are used to model dependence between prices and yields and serial dependence of prices. The authors construct several synthetic exotic price coverage insurance policies and evaluate the impact of copula models on policies covering different types of risk.FindingsThe authors’ findings show that the price of exotic price coverage policies is sensitive to the choice of dependence model. Serial dependence varies across the growing season. It is possible to accurately price exotic coverage policies and we suggest these add-ons as a possible avenue for developing private crop insurance markets.Originality/valueThe authors apply hierarchical Archimedean copulas and vine copulas that allow for flexibility in the modeling of multivariate dependence. Unlike previous research, which has primarily considered dependence across space, the form of exotic price coverage requires modeling serial dependence in relative prices. Results are important for this segment of the agricultural insurance market: one of the main areas that insurers can develop private products around the federal program.

Dynamism of Tax Revenue Potential in Sub-Saharan African Countries: A Truncated-Normal Distributional Analysis

Although taxation is the most effective alternative to long-term funding of public spending, sub Saharan African countries typically experience a persistent gap between the amount of actual tax revenue and their potential. The main aim of this paper is to analyze tax revenue potential drivers in sub-Saharan African countries using truncated-normal distributional analysis panel data from 2000 to 2018. Finding the estimate result shows that the potential for tax revenue has a positive significant correlation with GDP per capita, trade openness, agricultural sector, service sector, manufacturing sector, monetization, population growth, urbanization, and government stability. By comparison, a significant negative link to inflation, income inequality (Gini coefficient), construction industry, age dependency, population density, foreign direct investment, official exchange rate, official development assistance, and corruption. In conclusion, this research confirms that both supply and demand-side variables influence the capacity for tax revenues. Hence, in general, this study recommended that before implementing a new tax revenue policy, the concerned body of any country should first determine their tax revenue potential and their determinants accordingly. The results of the study are expected to contribute insights for an empirical model of a comprehensive examination of the determinants of tax revenue potential and its determinants in Sub- Saharan African countries. Keywords: Dynamism, tax revenue potential, Sub- Saharan Africa, truncated-normal distribution, panel data DOI: 10.7176/JESD/11-9-08 Publication date: May 31 st 2020

Standard Taxation Gaps & Reforms: A Critical Review of Revenue Policies of Kurdistan Region of Iraq

This study is about the Iraq but the core area is focused on its independent province Kurdistan. The Kurdistan is an autonomous province of federal republic of Iraq having separate legislative assembly namely; parliament. Still it is under developed region and financially depend on Iraqi federal budget. Tax policies of the federal Iraq and its region Kurdistan are not well- structured as per international standard. These policies have a huge gap in purview of sound revenue practices. Standard taxation gaps are the gaps between universal tax practices and the traditional existing tax practices, which are affecting the tax revenue and also affecting the sound practices of tax administration. The primary purpose of this article is to find out the gaps in taxation system and its existing administration policies and critically examines the facts of Kurdistan tax policies in the light of universal standard sound practices within the scope of Iraqi constitution and also find out, how can Kurdistan get more revenue by revising its existing tax policies and what are the necessities for filling these existing gaps.

Revenue policy features as an important direction of social policy

The main provisions, essence and content of the revenue policy as a key part of the social policy of the state have been considered in the article. The author rightly notes, that the income policy is aimed at solving such important tasks as helping vulnerable groups of the population by resorting to the use of the social security system and leveling the inflationary processes that affect the income and savings of citizens. Various models of social regulation have been adduced, including the “Scandinavian” or “Swedish” model, monetarist, paternalistic, and others. The study have used various general scientific research methods: observation method, the systemic-functional method, method of synthesis and analysis, method of scientific abstraction.The main directions of improving the implementation of the state social policy, which is presented as a voluminous, multi-faceted process that has a complex structure and intersects with many other areas of state activity, have been proposed. The conclusion has been formulated, that society does not exist by itself, so the social sphere is in constant interaction with other spheres, such as production of material goods, politics, culture and the environment. It has been noted, that social policy is recognized as effective when the entire social sphere is at a high level, and the society clearly shows a positive response to the actions of the state. Thus, the broader is such a policy, the greater is the completeness of the covered areas, both explicit (the fight against poverty, social protection, etc.) and implicit (relations between social groups, motivation in society, etc.), the more effective is the overall functioning of the state as a whole.

Taxing Chiefs: The Design and Introduction of Direct Taxation in the Sierra Leone Protectorate, 1896–1914

ABSTRACT This paper investigates the introduction of direct colonial taxation in the Sierra Leone Protectorate. By examining the local dynamics of colonial taxation policy, a more nuanced reading of colonial relationships can be reached, that appreciates the minutiae of colonial finance and sheds light on the fundamentally different terms on which people were incorporated into ‘states’ in empires compared to the western contexts that we encounter more commonly in the literature on taxation. While direct taxation has been given many non-revenue functions, including facilitating the extension of a cash economy and the promotion of wage labour, in this colonial context, the power of the colonial government to shape behaviour at an individual level was sacrificed in the interests of a reliable revenue policy in the context of a state with seriously limited administrative and financial capacity.

Do large Polish cities substitute their own-source revenues with fees and user charges?

This paper aims to assess if large Polish cities use fees and user charges to substitute other own-source revenues. The analysis has been conducted on a panel of 65 large cities in Poland in the period of 2004-2015. Using OLS and fixed effect panel analysis, it has been proved that cities pursue their policy in order to maximize their revenues, which is in line with the Leviathan theory assuming that public authorities maximize public revenues. Additionally, using the normalization quotient mapping, it has been confirmed that cities do not change their revenue policy in terms of taxes vs. fees and user charges trade-offs.

The Nexus Between Government Revenue and Economic Growth in Nigeria

Abstract The aim of the study is to examine the relationship between government revenues and the economic growth of Nigeria. The study employs exploratory and ex-post facto research designs while using secondary form of data spanning from 1981 to 2018 collected from the Federal Inland Revenue Services (FIRS), National Bureau of Statistics and CBN statistical bulletin. The relationship is tested by using Ordinary Least Squares (OLS) regression technique. The result reveals that federally received revenue and Value Added Tax (VAT) have a moderate positive relationship with the economic growth. The study provides evidence that there is a need for the government to formulate relevant revenue policies that will boost government income in order to have more favourable implication on the economy.

Agent-based Simulation of Revenue Policy

The main research attention is focused on social interaction as a complex system of give-and-take actions with different ways to balance costs and rewards and on the problem of increasing the income inequality. The current investigation analyzes the influence of tax-and-transfer policy on the social structure of society. Different tax regimes were tested by means of computer experiments. The mathematical model of conflict interaction (Koshmanenko, 2014) is the theoretical basis of the agent-based simulation in NetLogo. It is shown that intervention into the process of conflict interactions aimed in support of those who are at the social “bottom” results in the emergence of fluctuations. Even a small value of external replenishment destroys the stable mechanism of internal redistribution and leads to an unpredictable chaotic behaviour. Moreover, the amplitude of these fluctuations is growing rapidly as the scope of assistance increases. The current research tries to give insight into the influence of rent-seeking practice on the social structure of society. Rent-seeking means the practice of obtaining wealth not through economically valuable activity but by extracting it from others (privileges, tax havens, offshores, etc.). The analysis of the results of computer simulation demonstrates qualitative changes in the social structure of society, namely: – the rich class includes only “selected” agents; – economically active agents of the middle class practically disappear while the number of economically passive agents increases; – the number of those who are under the poverty line is growing rapidly. This paper is also aimed at highlighting the potential of agent-based modelling as a research tool for analyzing complex social systems at the edge of chaos and drawing attention to the necessity of filling the gap between traditional social education and computer modelling.

Impact of Global Budget Revenue Policy on Emergency Department Efficiency in the State of Maryland.

IntroductionOn January 1, 2014, the State of Maryland implemented the Global Budget Revenue (GBR) program. We investigate the impact of GBR on length of stay (LOS) for inpatients in emergency departments (ED) in Maryland.MethodsWe used the Hospital Compare data reports from the Centers for Medicare and Medicaid Services (CMS) and CMS Cost Reports Hospital Form 2552-10 from January 1, 2012–March 31, 2016, with GBR hospitals from Maryland and hospitals from West Virginia (WV), Delaware (DE), and Rhode Island (RI). We implemented difference-in-differences analysis and investigated the impact of GBR implementation on the LOS or ED1b scores of Maryland hospitals using a mixed-effects model with a state-level fixed effect, a hospital-level random effect, and state-level heterogeneity.ResultsThe GBR impact estimator was 9.47 (95% confidence interval [CI], 7.06 to 11.87, p-value<0.001) for Maryland GBR hospitals, which implies, on average, that GBR implementation added 9.47 minutes per year to the time that hospital inpatients spent in the ED in the first two years after GBR implementation. The effect of the total number of hospital beds was 0.21 (95% CI, 0.089 to 0.330, p-value = 0 .001), which suggests that the bigger the hospital, the longer the ED1b score. The state-level fixed effects for WV were −106.96 (95% CI, −175.06 to −38.86, p-value = 0.002), for DE it was 6.51 (95% CI, −8.80 to 21.82, p-value=0.405), and for RI it was −54.48 (95% CI, −82.85 to −26.10, p-value<0.001).ConclusionOur results indicate that GBR implementation has had a statistically significant negative impact on the efficiency measure ED1b of Maryland hospital EDs from January 2014 to April 2016. We also found that the significant state-level fixed effect implies that the same inpatient might experience different ED processing times in each of the four states that we studied.

The American Civil War and the Course of Late Nineteenth-Century Temperance Reform

Historians often analyze the US Civil War in the context of political, social, and economic change but fail to appreciate its role in fomenting dramatic developments in temperance and alcohol reform. The war caused rifts between Northern and Southern temperance organizations; disrupted temperance fund-raising, recruitment, and outreach activities; and placed more than a million young men in danger of succumbing to the intemperance then rampant in the Union and Confederate armies. In addition, the Union’s revenue policy levied taxes on distilled and fermented beverages, raising fears among temperance reformers that the federal government sanctioned the production and use of alcohol. In response, new temperance initiatives emerged after the war: increased women’s activism, the resurgence of prohibition in national politics, and new approaches to understanding and treating alcohol abuse. These developments ramified beyond the United States to affect temperance activism internationally.

Pengendalian Internal Penerimaan Negara Bukan Pajak di Taman Nasional Bali Barat

This study aims to know the internal control of non-tax state revenues in Bali Barat National Park in terms of accuracy of recording, staffing, and the effectiveness of non-tax state revenue policy in Bali Barat National Park. This research is qualitative descriptive research. The method of analysis used in this research is triangulation technique. Based on the results of the study, it can be taken several provisions of Government Regulation No. 12 of 2014 to become a tool of internal control of non-tax state revenue in Bali Barat National Park. The accuracy of recording of non-tax state revenue in Bali Barat National Park at the tariff level based on Government Regulation No. 12 of 2014 on Tariff of Non-Tax State Revenue applicable to the Ministry of Forestry. For Non-Tax State Revenue Receiver in Bali Barat National Park on Government Regulation No. 20/1997 on Non-Tax State Revenues. Then for the level of effectiveness of Non-Tax State Revenue in Bali Barat National Park, with the title effectiveness above 100% in every year, not the standard in Bali Barat National Park is very effective. Keywords: Internal control, Non-Tax State Revenue, and Management of government finances

The algorithm to ensure and implement the strategy of the effective management of innovation processes

We considered the implementation of the effective management strategy of the innovation process from the point of view of its integration and existing problems. We have marked the role of priorities that explain the interrelation of the levels of the state planning and the innovation processes management of socio-economic systems. We have shown the substantive part of the strategic planning and the role of the tools ensuring the achievement of goals and objectives of innovation processes. We have summarized the content of the strategic planning. The research results of the tools role determined the conditions of the innovation infrastructure formation and the list of its components. We used the following tools for the analysis: direct government influence; unity of monetary and fiscal policies; consolidated revenue policy; reforming of the conditions, the traditions and the practices of interaction between the banking and real sectors of the national economy. We applied a retrospective approach during the analysis of the innovation infrastructure algorithm. The authors made the correction of the analysis using the concept of national innovation systems (NIS). We made the conclusions based on the author’s point of view due to the lack of a generalized definition and the methodology of the NIS in the academic literature. We proposed a lineal algorithm that provides and implements the strategy of managing the innovation processes, as well as the tools. We highlighted the factors that prevent the problems in the formation of an effective management, and we have also pointed out that it is necessary to take into account the specific conditions of the country, its trends and challenges. Based on the analysis, we named the additional features to trace the management problems. We suggested the measures to ensure the greatest effectiveness of the implementation of the effective management strategy from the standpoint of mentality and timeliness. The author's algorithm has been justified as the most feasible in the modern conditions, revealing the existing interrelations between the subjects of the innovation process.

IPTEKS PENYUSUNAN APBD PROVINSI SULAWESI UTARA

The budget is prepared based on programs and activities that have been planned for a period of one year. For this reason, the Government through the Regional Head made a KUA draft which contained: (1) Revenue Policy, (2) Shopping Policy, (3) Financing Policy. In determining the KUA-PPAS budget allocation, regional financial management uses the money follow program priority approach, which is only to make priority programs that want to be done so that the budget can run efficiently. The general policy of the 2018 North Sulawesi provincial government budget is prepared by taking into account the regional macroeconomic aspects. The government continues to boost economic growth through regional taxes and levies to build a better North Sulawesi.Keywords: revenue, expenditure, financing policy

An Implementation of Restaurant Tax Policy to Increase Local Revenues in Gorontalo City

This paper investigates the implementation of restaurant tax policy to increase local revenue in Gorontalo City, including the factors determining the effectiveness of tax revenue. The objective of this study is to develop the effective tax revenue policy model for restaurant sector by considering a number of internal and external aspects. The steps of this research comprise data collection, data reduction, data display, and conclusion drawing. The findings are confirmed through a focus group discussion with related stakeholders. The result shows that the implementation of the policy of restaurant tax is not that effective. This is reflected on the issues concerning human resources, facilities and infrastructure, attitude of the implementer, and bureaucratic structure. Another determining factors are geographical conditions, demography, natural resources, community culture, and the development of political climate. The finding also suggests that the involvement of the society is central to the success of the implementation of tax policy.

Dynamic pricing for managed lanes with multiple entrances and exits

Priced managed lanes are increasingly being used to better utilize the existing capacity of the roadway to relieve congestion and offer reliable travel time to road users. In this paper, we investigate the optimization problem for pricing managed lanes with multiple entrances and exits which seeks to maximize the revenue and minimize the total system travel time (TSTT) over a finite horizon. We propose a lane choice model where travelers make online decisions at each diverge point considering all routes on a managed lane network. We formulate the problem as a deterministic Markov decision process and solve it using the value function approximation (VFA) method for different initializations. We compare the performance of the toll policies predicted by the VFA method against the myopic revenue policy which maximizes the revenue only at the current timestep and two heuristic policies based on the measured densities on the managed and general purpose lanes (GPLs). We test the results on four different test networks. The primary findings from our research suggest the usefulness of the VFA method for determining dynamic tolls. The best-found objective value from the method at its termination is better than other heuristics for all test networks with average improvements in the objective ranging between 10% and 90% for revenue maximization and 0–27% for TSTT minimization. Certain VFA initializations obtain best-found toll profiles within first 5–50 iterations which warrants computational time savings. Our findings also indicate that the revenue-maximizing optimal policies follow the “jam-and-harvest” behavior where the GPLs are pushed towards congestion in the earlier time steps to generate higher revenue in the later time steps, a characteristic not observed for the policies minimizing TSTT.

Modern Dönem Osmanlı Maliyesine Analitik Bir Bakış

The aim of this article is to analyze the Ottoman government’s fiscal policies and performance for the period from the second half of the 18th century to the last years of the Empire. First, it should be noted that numerous Ottoman fiscal crises followed the wars, and reforms followed the fiscal crises. According to this study’s inferences, the wars were one of the basic causes of institutional change in Ottoman finance. Various other institutional constraints, such as the timar system, also caused the wars to become costly for the Ottoman Empire, leading to fiscal underperformance. Besides that, revenue policies such as confiscations, war-time taxes, and coin debasements turned into institutions that prevented stability and development in the financial sector. Another institutional constraint was that the central authority did not grant administrative-fiscal autonomy to provincial administrations until the beginning of the 20th century. Also, the central government was not able to personalize taxes because it failed to create an effective monitoring and sanctioning mechanism. Socio-economic expenditures such as education, health, public works, and transportation took a back seat to other public expenditures such as military and administrative costs for the entire era. Domestic and foreign debt payments, which occupied a significant portion of state budgets, took a toll on Ottoman public finances. The ongoing budget deficits during this period dictated the low level of financial performance by the Ottoman government. In addition, fiscal policies throughout the period led to the accumulation of the wealth by a small fraction of citizens, which distorted income distribution.