Browsing by Author "Ruggeri, G. C."
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Item A Measure of Interregional RedistributionRuggeri, G. C.; Yu, WeiqiuThis paper develops a disaggregated index of interregional distribution generated by federal fiscal activity based on a comparison between relative federal revenues and expenditures assigned to various regions and the pattern of income disparities among regions. To explore the properties of this index, we present three special cases under known degrees of distribution and calculate the indices using the Canadian data for 1996. The local indices are then aggregated to derive a global index qf interregional redistribution. Our results show that the federal fiscal system in 1996 delivered a degree of interregional redistribution 1.8 times what would have been generated under equal per capital expenditures by region and nearly half of the redistribution that equalizes the per capita income via federal expenditures.Item A Measure of Interregional RedistributionRuggeri, G. C.; Yu, WeiqiuThis paper develops a disaggregated index of interregional distribution generated by federal fiscal activity based on a comparison between relative federal revenues and expenditures assigned to various regions and the pattern of income disparities among regions. To explore the properties of this index, we present three special cases under known degrees of distribution and calculate the indices using the Canadian data for 1996. The local indices are then aggregated to derive a global index qf interregional redistribution. Our results show that the federal fiscal system in 1996 delivered a degree of interregional redistribution 1.8 times what would have been generated under equal per capital expenditures by region and nearly half of the redistribution that equalizes the per capita income via federal expenditures.Item A Proposal for Reducing Federal TaxesRuggeri, G. C.Item A Proposal for Reducing Federal TaxesRuggeri, G. C.Item Capital Income Taxation, Labour Supply and Work EffortRuggeri, G. C.; Yu, WeiqiuAlthough it is well-known that, in life cycle models of consumption and labour supply, capital income taxation affects the labour supply through the normal income effect, this interaction between capital income taxation and labour market behaviour is usually confined to the voluntary savings of consumers who wish to smooth the pattern of consumption through their lifetime. We show in this paper that the interaction maybe widespread. Three channels through which capital income taxation may affect labour market behaviour are identified: first, capital income taxes may alter the lifetime labour supply when workers are constrained on hours of work; second, they may affect labour supply in the case where consumers target a certain level of lifetime consumption; finally, they may influence work effort in an efficiency wage model.Item Capital Income Taxation, Labour Supply and Work EffortRuggeri, G. C.; Yu, WeiqiuAlthough it is well-known that, in life cycle models of consumption and labour supply, capital income taxation affects the labour supply through the normal income effect, this interaction between capital income taxation and labour market behaviour is usually confined to the voluntary savings of consumers who wish to smooth the pattern of consumption through their lifetime. We show in this paper that the interaction maybe widespread. Three channels through which capital income taxation may affect labour market behaviour are identified: first, capital income taxes may alter the lifetime labour supply when workers are constrained on hours of work; second, they may affect labour supply in the case where consumers target a certain level of lifetime consumption; finally, they may influence work effort in an efficiency wage model.Item Federal Fiscal Balances and Redistribution in Canada, 1992-96Ruggeri, G. C.; Yu, WeiqiuThis article identifies the major methodological issues involved in the calculation of federal fiscal balances by province. Using data from the Provincial Economic Accounts (PEA) and National Income Accounts, we calculate four sets of balances for the period 1992-1996, namely basic balances, primary balances, balanced budget balances with tax increases and balanced budget balances with spending cuts, under different assumptions. For comparison purposes, we also include federal fiscal balances contained in the PEA based on the cash-flow approach. The results show that federal fiscal balances by province vary significantly from one method to another. In particular, the basic balances calculated using our approach yield substantially lower gains to the net beneficiary provinces and lower costs to the net contributor provinces than balances based on the cash-flow approach. Eliminating the interest on the public debt or the federal deficit increases the contributions by the "better off" provinces and reduces the gains to the net beneficiary provinces. We also calculate some indices of redistribution among provinces generated by the federal fisc and find that the degree of redistribution was modest under all methods of calculations.Item Federal Fiscal Balances and Redistribution in Canada, 1992-96Ruggeri, G. C.; Yu, WeiqiuThis article identifies the major methodological issues involved in the calculation of federal fiscal balances by province. Using data from the Provincial Economic Accounts (PEA) and National Income Accounts, we calculate four sets of balances for the period 1992-1996, namely basic balances, primary balances, balanced budget balances with tax increases and balanced budget balances with spending cuts, under different assumptions. For comparison purposes, we also include federal fiscal balances contained in the PEA based on the cash-flow approach. The results show that federal fiscal balances by province vary significantly from one method to another. In particular, the basic balances calculated using our approach yield substantially lower gains to the net beneficiary provinces and lower costs to the net contributor provinces than balances based on the cash-flow approach. Eliminating the interest on the public debt or the federal deficit increases the contributions by the "better off" provinces and reduces the gains to the net beneficiary provinces. We also calculate some indices of redistribution among provinces generated by the federal fisc and find that the degree of redistribution was modest under all methods of calculations.Item Federal Income Tax Cuts and Regional DisparitiesFougère, Maxime; Ruggeri, G. C.This paper examines the potential impact of federal personal income tax reform on regional disparities. We present simulations of the provincial distribution of federal PIT revenue changes under six different tax reduction schemes applied to the projected income distribution for the year 2000. We show that the provincial distribution of federal income tax reductions can vary considerably depending on the chosen option. Options that flatten the rate structure would tend to aggravate regional disparities because they provide relatively greater benefits to richer provinces. In particular, moving to a single rate tax or to a three-rate PIT with wider tax brackets would produce a relatively larger tax reduction in the richer provinces. It would also provide relatively higher supply-side effects through the tax break on capital gains and the larger reduction in the top marginal rate. The analysis also indicates that we can prevent potential increases in regional disparities by introducing tax cuts that do not affect horizontal redistribution such as equi-proportional reduction in all PIT rates.Item Federal Income Tax Cuts and Regional DisparitiesFougère, Maxime; Ruggeri, G. C.This paper examines the potential impact of federal personal income tax reform on regional disparities. We present simulations of the provincial distribution of federal PIT revenue changes under six different tax reduction schemes applied to the projected income distribution for the year 2000. We show that the provincial distribution of federal income tax reductions can vary considerably depending on the chosen option. Options that flatten the rate structure would tend to aggravate regional disparities because they provide relatively greater benefits to richer provinces. In particular, moving to a single rate tax or to a three-rate PIT with wider tax brackets would produce a relatively larger tax reduction in the richer provinces. It would also provide relatively higher supply-side effects through the tax break on capital gains and the larger reduction in the top marginal rate. The analysis also indicates that we can prevent potential increases in regional disparities by introducing tax cuts that do not affect horizontal redistribution such as equi-proportional reduction in all PIT rates.Item Item Item On the Dimensions of Human Capital: An Analytic FrameworkRuggeri, G. C.; Yu, WeiqiuHuman capital is becoming increasingly important in today's knowledge-based economy. However, existing definitions of human capital are too narrow to capture fully the implications of public policy on human capital formation and utilization. This paper proposes a broad definition of human capital which includes four dimensions of human capital: (a) potential, (b) acquisition, (c) availability, and (d) effectiveness. It discusses various policies that can affect human capital within this framework. It shows that the broader definition can help identify links through which human capital moves from one stage to another; and develop a research agenda that takes a comprehensive look at the impact of different policies on human capital.Item On the Dimensions of Human Capital: An Analytic FrameworkRuggeri, G. C.; Yu, WeiqiuHuman capital is becoming increasingly important in today's knowledge-based economy. However, existing definitions of human capital are too narrow to capture fully the implications of public policy on human capital formation and utilization. This paper proposes a broad definition of human capital which includes four dimensions of human capital: (a) potential, (b) acquisition, (c) availability, and (d) effectiveness. It discusses various policies that can affect human capital within this framework. It shows that the broader definition can help identify links through which human capital moves from one stage to another; and develop a research agenda that takes a comprehensive look at the impact of different policies on human capital.Item On the Fiscal Dividend and the Federal DebtRuggeri, G. C.Item On the Fiscal Dividend and the Federal DebtRuggeri, G. C.Item Regional Dimensions of Federal Income Tax CutsFougère, Maxime; Ruggeri, G. C.Item Regional Dimensions of Federal Income Tax CutsFougère, Maxime; Ruggeri, G. C.