18 May 2015
by Jim Rose
in politics - New Zealand, politics - USA, public economics
Tags: company tax, endogenous growth theory, foreign direct investment, lost decades
New Zealand is one of only two developed countries, the other being Finland, that switched from a territorial tax system to a worldwide system.Both eventually returned to a territorial tax system for competitiveness reasons. New Zealand went one step further in their experiment with worldwide taxation by ending deferral.
This resulted in a twenty year stagnation in foreign investment at a time when foreign investment was growing dramatically in the rest of the developed world.
This coincided with an economic decline in New Zealand relative to Australia and the rest of the developed world. Because foreign investment is key to accessing the world’s consumers, it is not surprising that less foreign investment translated to less economic prosperity at home.
The New Zealand experience shows that ending or limiting deferral in the United States, as President Obama and others have proposed, would likely have severe economic downsides. Instead, as New Zealand eventually did in 2009, the U.S. should implement a territorial system that exempts foreign earnings.
via New Zealand’s Experience with Territorial Taxation | Tax Foundation.
17 May 2015
by Jim Rose
in economics of information, economics of media and culture, politics - Australia, politics - New Zealand, politics - USA, Public Choice
Tags: expressive voting, opinion polls, rational ignorance, rational irrationality, social desirability bias, voter demographics
15 May 2015
by Jim Rose
in applied welfare economics, economics of love and marriage, gender, labour economics, labour supply, occupational choice, politics - Australia, politics - New Zealand, politics - USA, population economics, welfare reform
Tags: child poverty, economics of the family, family poverty, marriage and divorce, single mothers, single parents
15 May 2015
by Jim Rose
in development economics, economics of regulation, environmental economics, growth miracles, politics - Australia, politics - New Zealand, politics - USA, urban economics
Tags: green rent seeking, housing affordability The fatal conceit, land use regulation, offsetting behaviour, RMA, The pretence to knowledge, unintended consequences, urban planning, zoning
14 May 2015
by Jim Rose
in constitutional political economy, politics - Australia, politics - New Zealand, politics - USA, Public Choice
Tags: activists, civil disobedience, Leftover Left, protesters, street politics
Public disorder and rioting by a large leads to a law and order response among the public and a hardening of social attitudes against whatever the desired social reform might be when it is tainted by civil disorder.
The Left, the Green Left and the watermelons in particular want to believe that street protests change things. They have to validate their youthful offences against public order.
Sadly, no; sadly for them but not for the law-abiding rest of us who resolve our differences by trying to persuade each other and elections.
The law-abiding rest of us believe in democratic equality. Your vote counts as much as mine in a democracy with free speech. The only way you can change my vote is by free speech, not by public disorder, threats and intimidation and taking the law into your own hands.
14 May 2015
by Jim Rose
in discrimination, economics of love and marriage, gender, human capital, labour economics, occupational choice, politics - USA
Tags: asymmetric marriage premium, do gooders, economics of families, gender wage gap, maternity leave, Sweden, The fatal conceit, unintended consequences
The gender wage gap is no better than the OECD average, despite generous maternity and paternity leave. What gives?
Source: Closing the gender gap: Act now – http://dx.doi.org/10.1787/9789264179370-en
One important question is whether government policies are effective in reducing the gap. One such policy is family leave legislation designed to subsidize parents to stay home with new-born or newly adopted children.
One of the RLE articles shows that for high earners in Sweden there is a large difference between the wages earned by men and women (the so-called “glass ceiling”), which is present even before the first child is born. It increases after having children, even more so if parental leave taking is spread out.
These findings suggest that the availability of very long parental leave in Sweden may be responsible for the glass ceiling because of lower levels of human capital investment among women and employers’ responses by placing relatively few women in fast-track career positions. Thus, while this policy makes holding a job easier and more family-friendly, it may not be as effective as some might think in eradicating the gender gap.
via New volume on gender convergence in the labour market | IZA Newsroom.
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