PhD in Economics, University of Cambridge, UK MSc in Economics with distinction, University of York, UK Laurea cum laude, University of Rome "La Sapienza", Italy Phone: +39 06 57335612 Address: Via Silvio D'Amico 77, 00145 Rome, Italy
This paper assesses the redistributive effects of two recent adjustments of indirect taxes in Ita... more This paper assesses the redistributive effects of two recent adjustments of indirect taxes in Italy, in 1995 and in 1997, in view of the convergence to a two-rate VAT structure. Although reducing the number of tax rates from four to three in 1997, we find that the two adjustments did not cause significant distributional effects. The authors argue that a two- rate VAT could have replaced the 1997 adjustment providing the same revenue, redistributing the tax burden from less rich to richer households and significantly inreasing welfare.
International institutions are recommending policies aimed at shift- ing the tax burden from labo... more International institutions are recommending policies aimed at shift- ing the tax burden from labour and business incomes to less growth- detrimental forms of taxation, such as consumption taxes. However, de- spite the expected positive macroeconomic e�ects, a criticism about in- creasing the role of Vat arises from its alleged regressivity over income. Yet, the empirical evidence on this issue is very narrow due to the unavail- ability of joint and detailed data on income and consumption. This paper �lls this gap by measuring the distributional impact of Vat in Italy using information on both households' expenditures and incomes integrated in a micro simulation model (EGaLiTe). The paper shows that the regressive pro�le of Vat in terms of disposable income is almost entirely driven by the very bottom and the top quantiles, which however, at least in part, can be a�ected by temporary unalignments of income and consumption. Fur- thermore, the current Vat structure in Italy is not ...
Abstract This paper investigates the impact of economic integration on the vertical structure of ... more Abstract This paper investigates the impact of economic integration on the vertical structure of the public sector within a country. To tackle this issue we set up a model of fiscal federalism, where economic integration is assumed to affect central government tax ...
ABSTRACT The aim of this paper is to carry out an empirical investigation on the relation between... more ABSTRACT The aim of this paper is to carry out an empirical investigation on the relation between economic integration, tax erosion and the degree of public sector decentralisation in a sample of OECD countries. This paper addresses this topic by using economic integration as a way to "open" to external constraints the debate about the determinants of public sector decentralisation. Our empirical strategy is articulated in two stages. In the first stage we investigate the relation between Implicit Tax Rates (ITRs) on mobile capital and economic openness (EO). If this relation turns to be statistically significant, then we compute country-specific elasticities of ITR with respect to EO. In the second stage we will focus on the relation between these elasticities and the degree of decentralisation. The results of the analysis are encouraging. Evidence is provided that economic integration erodes effective tax rates on mobile capital, while producing no effect on other tax bases. Furthermore, the generated elasticities have some explanatory power in shaping the degree of decentralisation.
This paper analyses the effects of the personal income tax (PIT) changes implemented in Italy in ... more This paper analyses the effects of the personal income tax (PIT) changes implemented in Italy in the period 1995-2005 on redistribution and efficiency. on the redistributive side, using Lorenz dominance techniques and their correspondence with welfare prescriptions, the ...
The entrance of Italy in the Euro area in 2001 has given rise to a wide debate about the percepti... more The entrance of Italy in the Euro area in 2001 has given rise to a wide debate about the perception of inflation on households' well-being. However, most of the debate has involved the measurement of the "correct" consumer price index at national level. Much less analysis has been ...
This paper assesses the redistributive effects of two recent adjustments of indirect taxes in Ita... more This paper assesses the redistributive effects of two recent adjustments of indirect taxes in Italy, in 1995 and in 1997, in view of the convergence to a two-rate VAT structure. Although reducing the number of tax rates from four to three in 1997, we find that the two ...
This paper assesses the redistributive effects of two recent adjustments of indirect taxes in Ita... more This paper assesses the redistributive effects of two recent adjustments of indirect taxes in Italy, in 1995 and in 1997, in view of the convergence to a two-rate VAT structure. Although reducing the number of tax rates from four to three in 1997, we find that the two adjustments did not cause significant distributional effects. The authors argue that a two- rate VAT could have replaced the 1997 adjustment providing the same revenue, redistributing the tax burden from less rich to richer households and significantly inreasing welfare.
International institutions are recommending policies aimed at shift- ing the tax burden from labo... more International institutions are recommending policies aimed at shift- ing the tax burden from labour and business incomes to less growth- detrimental forms of taxation, such as consumption taxes. However, de- spite the expected positive macroeconomic e�ects, a criticism about in- creasing the role of Vat arises from its alleged regressivity over income. Yet, the empirical evidence on this issue is very narrow due to the unavail- ability of joint and detailed data on income and consumption. This paper �lls this gap by measuring the distributional impact of Vat in Italy using information on both households' expenditures and incomes integrated in a micro simulation model (EGaLiTe). The paper shows that the regressive pro�le of Vat in terms of disposable income is almost entirely driven by the very bottom and the top quantiles, which however, at least in part, can be a�ected by temporary unalignments of income and consumption. Fur- thermore, the current Vat structure in Italy is not ...
Abstract This paper investigates the impact of economic integration on the vertical structure of ... more Abstract This paper investigates the impact of economic integration on the vertical structure of the public sector within a country. To tackle this issue we set up a model of fiscal federalism, where economic integration is assumed to affect central government tax ...
ABSTRACT The aim of this paper is to carry out an empirical investigation on the relation between... more ABSTRACT The aim of this paper is to carry out an empirical investigation on the relation between economic integration, tax erosion and the degree of public sector decentralisation in a sample of OECD countries. This paper addresses this topic by using economic integration as a way to "open" to external constraints the debate about the determinants of public sector decentralisation. Our empirical strategy is articulated in two stages. In the first stage we investigate the relation between Implicit Tax Rates (ITRs) on mobile capital and economic openness (EO). If this relation turns to be statistically significant, then we compute country-specific elasticities of ITR with respect to EO. In the second stage we will focus on the relation between these elasticities and the degree of decentralisation. The results of the analysis are encouraging. Evidence is provided that economic integration erodes effective tax rates on mobile capital, while producing no effect on other tax bases. Furthermore, the generated elasticities have some explanatory power in shaping the degree of decentralisation.
This paper analyses the effects of the personal income tax (PIT) changes implemented in Italy in ... more This paper analyses the effects of the personal income tax (PIT) changes implemented in Italy in the period 1995-2005 on redistribution and efficiency. on the redistributive side, using Lorenz dominance techniques and their correspondence with welfare prescriptions, the ...
The entrance of Italy in the Euro area in 2001 has given rise to a wide debate about the percepti... more The entrance of Italy in the Euro area in 2001 has given rise to a wide debate about the perception of inflation on households' well-being. However, most of the debate has involved the measurement of the "correct" consumer price index at national level. Much less analysis has been ...
This paper assesses the redistributive effects of two recent adjustments of indirect taxes in Ita... more This paper assesses the redistributive effects of two recent adjustments of indirect taxes in Italy, in 1995 and in 1997, in view of the convergence to a two-rate VAT structure. Although reducing the number of tax rates from four to three in 1997, we find that the two ...
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