Benedikt Herrmann (p), Oleksii Hamaniuk, Felix Rösel

Takahisa Yokoi

This study explores the impact of fiscal structure on the tax compliance and local economic growth, focusing on the unique context in Ukraine between 2016 and 2020, during which two distinct fiscal systems operated simultaneously due to the decentralisation reform. Our analysis indicates that transitioning to a fiscal system where municipalities receive a substantially higher share of personal income tax (PIT) results in increased PIT payments even controlling for the night-light index, an economic activity proxy. We attribute these processes to several factors. Firstly, the new fiscal system might stimulate economic growth, leading to an expansion of the tax base as local governments are incentivised to foster local economic development. Secondly, tax compliance might increase within the new framework, aligning with findings from experimental literature on contributions to local versus global public goods. Taxpayers’ willingness to pay taxes might increase when taxes are allocated to municipal budgets, making public good provisions more tangible to taxpayers.

Evangelos Siokas, Vasiliki Kremastioti (p)

Arthur Grimes

It’s very crucial for economic systems to focus on ecosystem conditions which encourage innovation methods and entrepreneurship. Innovative startup firms are a key factor in upgrading the technological identity of a country, supporting a more sustainable growth. In particular, the fact that they are organizations based on strong competencies such as qualitative founders, knowledge and specialization, making them very effective in the innovation process.
It is a fact that tax policy and the economic structure very much depend on one another and also differ from country to country. Tax measures are the key factor to measure the economic sustainability and also examine economic growth. With the lapse of time, governments have been expanding deficits and from 2010 most governments embarked on austerity measures. Twenty years later, pandemic crisis has affected the economic growth negatively and tax system is recognized as one of the most harmful topics of fiscal policies, being the subject of scientific research for many years.
Thus, new start up businesses contributes significantly to economic growth. The impact of COVID-19 on these ecosystems could be analyzed due to the fact that during pandemic entrepreneurships were confronted with new innovative digital systems that created upheavals. To achieve this goal we will select indexes with regard to finance, infrastructure education, training, support services and cultural factors. The above parameters represent the entrepreneurial ecosystem and in combination with geographical and entrepreneurial environment we emphasize on factors which interact to entrepreneurship and innovation after COVID-19. In conclusion, econometric methods will be used to analyse the ecosystem conditions which encourage entrepreneurial innovations in Greece and also in EU countries and the impact of COVID-19 on entrepreneurial activity.

Thus, it is important to identify the relationship between innovation and fiscal parameters such as dept using empirical methods to prove which variable has an impact on what. Additionally, it is crucial to exclude empirical conclusions if entrepreneurship contributes to economic growth and if fiscal and macroeconomic variables present endogenity in empirical analysis.
Our research will put emphasis on this reality that investment and innovation combined with fiscal policies will lead to the increase of economic growth. It is obvious that research and development and innovation policies seem to have a crucial positive impact on economic development. We are waiting a positive relationship among government spending on R& D programs and also a negative relationship among doing business and fiscal parameters such as corruption.

Arthur Grimes (p)

Henri de Groot

A land tax has long been recognised as an efficient tax through which central or local government can fund its expenditures. It is also recognised that a capital value tax (which taxes the value both of the land and any improvement on it) discourages development whereas a land tax has no associated discouragement for development. A land value tax therefore contributes to greater urban intensification relative to a capital value tax. A related literature analyses the properties of a ‘betterment’ tax based on the uplift (betterment) in property values that may result from a new infrastructure investment, as mooted by JS Mill. This paper analyses equity, as well as efficiency, outcomes that arise when funding a new infrastructure development through these three different types of property tax, i.e. (i) a proportional capital value tax, (ii) a proportional land value tax, and (iii) a betterment tax on land value uplift. The comparison is formulated initially within a partial equilibrium model that takes city population as given. The paper then adopts a general equilibrium approach which examines city level outcomes of an infrastructure investment where that investment is funded either by a land value tax or some other form of tax. The analyses demonstrate not only the efficiency advantages of land value and betterment taxes relative to a capital value tax, but also the equity advantages of a betterment tax over Henry George’s ‘single tax’ on land value.