Results

CentrePiece article

Climate change policy: the case for a Covid-19 carbon tax

Ralf Martin and John Van Reenen explain how taxing emissions could help to meet the costs of the crisis and encourage investment in clean innovation....Read more...

CEP discussion paper

A natural experiment on job insecurity and fertility in France

Job insecurity can have wide-ranging consequences outside of the labour market. We here argue that it reduces fertility amongst the employed. The 1999 rise in the French Delalande tax, paid by large private firms when th...Read more...

Journal article

Fiscal Studies:

Financing Local Police Spending in England and Wales: Fiscal Federalism in Practice

Since 1995, police forces in England and Wales have been able to raise revenues locally to supplement grants from central government. We analyse the variation across police force areas in locally raised police revenues o...Read more...

CEP discussion paper

Competition and pass-through: evidence from isolated markets

We measure how pass-through varies with competition in isolated oligopolistic markets with captive consumers. Using daily pricing data from gas stations, we study how unanticipated and exogenous changes in excise duties ...Read more...

CEP discussion paper

A toolkit of policies to promote innovation

Economic theory suggests that market economies are likely to under-provide innovation due to the public good nature of knowledge. Empirical evidence from the US and other advanced economies supports this idea. We summari...Read more...

Journal article

Journal of the European Economic Association:

Joseph Schumpeter Lecture, EEA Annual Congress 2017: Do Tax Cuts Produce more Einsteins? The Impacts of Financial Incentives VerSus Exposure to Innovation on the Supply of Inventors

Many countries provide financial incentives to spur innovation, ranging from tax incentives to research and development grants. In this paper, we study how such financial incentives affect individuals' decisions to pursu...Read more...

CEP discussion paper

How to improve tax compliance? Evidence from population-wide experiments in Belgium

We study the impact of deterrence, tax morale, and simplifying information on tax compliance. We ran _ve experiments spanning the tax process which varied the communication of the tax administration with all income taxpa...Read more...

Journal article

Quantitative Economics:

Incidence, salience, and spillovers: the direct and indirect effects of tax credits on wages

Tax credits are a popular way to alleviate in-work poverty. A common empirical assumption is that the benefit of the tax credit is borne solely by the claimant workers. However, economic theory suggests no particular rea...Read more...

CEP discussion paper

Do tax cuts produce more Einsteins? The impacts of financial incentives vs. exposure to innovation on the supply of inventors

Many countries provide financial incentives to spur innovation, ranging from tax incentives to research and development grants. In this paper, we study how such financial incentives affect individuals' decisions to pursu...Read more...

Journal article

Regional Science and Urban Economics:

The bedroom tax

Housing subsidies for low income households are a central pillar of many welfare systems, but an expensive one. This paper investigates the consequences of an unusual policy aimed at reducing the cost of these subsidies ...Read more...

CentrePiece article

In brief...The bedroom tax

The ‘bedroom tax’ – a UK government policy introduced in 2013 that cut housing benefits for social tenants deemed to have a ‘spare’ bedroom – saved some public money, according to research by Steve Gibbons and colleagues...Read more...

CEP discussion paper

The bedroom tax

Housing subsidies for low income households are a central pillar of many welfare systems, but an expensive one. This paper investigates the consequences of an unusual policy aimed at reducing the burden of these subsidie...Read more...

CEP industrial strategy paper

Investing in People: The Case for Human Capital Tax Credits

It is now widely recognised that human capital accumulation and research and development (R&D) are key drivers of economic growth, as is documented in most standard textbooks (e.g. Acemoglu, 2007; Romer, 1996). Estimates...Read more...

CVER Briefing Note

Investing in People: The Case for Human Capital Tax Credits

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CentrePiece article

Stamp duty, mobility and the UK housing crisis

The UK’s stamp duty land tax raises substantial revenues for the government, but it also contributes to the UK’s housing crisis by preventing households from moving to more suitable homes. That is the central conclusion ...Read more...

Journal article

The Scandinavian Journal of Economics:

A Characteristics Approach to Optimal Taxation: Line Drawing and Tax-Driven Product Innovation

Real-world tax legislation assigns goods to different categories of tax rates on the basis of observable characteristics, allowing the tax system to handle a constantly evolving set of available goods. We recast the theo...Read more...

CEP discussion paper

Do tax incentives for research increase firm innovation? An RD design for R&D

We present evidence of a causal impact of research and development (R&D) tax incentives on innovation. We exploit a change in the asset-based size thresholds for eligibility for R&D tax subsidies and implement a Regressi...Read more...

CEP election analysis

Top Rate of Income Tax

The main political parties disagree about the appropriate rate of income Tax on the highest incomes. This note lays out the economic principles surrounding the top rate of income tax and considers the evidence that high ...Read more...

Journal article

Journal of Public Economics:

The impact of a carbon tax on manufacturing: Evidence from microdata

We estimate the impact of a carbon tax on manufacturing plants using panel data from the UK production census. Our identification strategy builds on the comparison of outcomes between plants subject to the full tax and p...Read more...

CEP discussion paper

Eliciting Taxpayer Preferences Increases Tax Compliance

Two experiments show that eliciting taxpayer preferences on government spending—providing taxpayer agency--increases tax compliance. We first create an income and taxation environment in a laboratory setting to test for ...Read more...

CEP discussion paper

Concentration Versus Re-Matching? Evidence About the Locational Effects of Commuting Costs

Using administrative employer-employee data from Germany, I exploit two reductions of tax breaks for commuting in 2003/4 and 2006/7 to estimate commuting costs’ effect on the decision to switch job and move house. Standa...Read more...

CEP discussion paper

The Great Stagnation: What Can Policymakers Do?

Although the economic recovery in the UK has been disappointing, it is inappropriate to either assert that Japan’s two lost decades illustrate the ineffectiveness of stimulative monetary policy or that the UK is predesti...Read more...

SERC/Urban and Spatial Programme Discussion Paper

The Effect of the UK Stamp Duty Land Tax on Household Mobility

We estimate the effect of the UK Stamp Duty Land Tax on household mobility using micro data. Exploiting a discontinuity in the tax schedule as a quasi-experimental setting, we isolate the impact of the stamp duty from ot...Read more...

CentrePiece article

Big ideas: Innovation Policy

In the last CentrePiece, John Van Reenen stressed the importance of competition and labour market flexibility for productivity growth. His latest in CEP's 'big ideas' series describes the impact of research on how policy...Read more...

SERC/Urban and Spatial Programme Discussion Paper

Tax Competition Among Local Governments: Evidence from a Property Tax Reform in Finland

This paper uses a Finnish policy intervention to study tax competition among local governments. Changes in the statutory lower limits to the property tax rates are used as a source of exogenous variation to estimate the ...Read more...

SERC/Urban and Spatial Programme Discussion Paper

The Mortgage Interest Deduction and its Impact on Homeownership Decisions

This paper examines the impact of the combined U.S. state and federal mortgage interest deduction (MID) on homeownership attainment, using data from 1984 to 2007 and exploiting variation in the subsidy across states, ove...Read more...

CEP discussion paper

Welfare Policy and the Distribution of Hours of Work

We examine the distribution of hours of work across industrial sectors in OECD countries. We find large disparities when sectors are divided into three groups: one that produces goods without home substitutes and two oth...Read more...

CEP discussion paper

The Impacts of the Climate Change Levy on business: Evidence from Microdata

We estimate the impacts of the Climate Change Levy (CCL) on manufacturing plants using panel data from the UK production census. Our identification strategy builds on the comparison of outcomes between plants subject to ...Read more...

CEP discussion paper

Employment Outcomes in the Welfare State

We examine the implications of tax and subsidy policies for employment in the 'three worlds of welfare', Anglo-Saxon, Continental European and Scandinavian. We argue that home production is key to a proper evaluation of ...Read more...

CEP discussion paper

Seigniorage

In this paper I analyse four different but related concepts, each of which highlights some aspect of the way in which the state acquires command over real resources through its ability to issue fiat money. They are (1) s...Read more...

CEP discussion paper

The Incidence of an Earned Income Tax Credit: Evaluating the Impact on Wages in the UK

Tax credits have been a popular way to alleviate in-work poverty. The assumption is typically that the incidence is on the claimant workers. However, economic theory suggests no particular reason to believe that this sho...Read more...

CEP discussion paper

The Incidence of UK Housing Benefit: Evidence from the 1990s Reforms

Housing Benefit (HB) in the UK subsidizes the rent of tenants in both the private and public sectors. Its share in total welfare benefits has risen markedly through time and there is widespread dissatisfaction with it. B...Read more...

CEP discussion paper

Measuring the Cost Effectiveness of an R&D Tax Credit for the UK

This paper investigates the economic impact of the government's proposed new UK R&D tax credit. We measure the benefit of the credit by the effect on value added in the short and long?run. This is simulated from existin...Read more...