In the last fifty years, many countries have moved toward broad-based and flat-rate tax systems such as the value-added tax (VAT) and the flat-rate income tax. The main rationale for introducing a broad-based and flat-rate tax system is the belief that such a system increases the incentive to work, save, and invest, leading to a higher aggregate income and a higher standard of living. Yet, empirical evidence on the actual effectiveness of broad-based and flat-rate taxes is very limited. This dissertation combines novel methodologies with newly available data to provide causal estimates of the economic effects of broad-based and flat-rate tax systems. The first essay analyzes the impact of the flat tax reforms on GDP per capita and its main drivers. I identify 8 Eastern and Central European countries that adopted flat tax systems between 1994 and 2005 and apply synthetic control methods to estimate their counterfactual trajectory of GDP per worker in the absence of a flat tax. I find positive impacts in all 8 countries, with 7 out of 8 cases significant at the conventional level. The second essay estimates the efficiency gains of adopting a VAT in a worldwide sample of countries using synthetic control methods. I find that the VAT has, on average, positive and economically meaningful impact on economic efficiency. However, I find that this result is driven by richer countries only. There is no significant impact of the VAT on poorer countries. I find similar results when estimating the impact of the VAT on total factor productivity and capital stock per worker â"u20ac"u201c two important channels through which a VAT affects economic efficiency. The third essay estimates the causal impact of a VAT on productivity, capital accumulation, and input cost using Regression Discontinuity Design and firm-level data from France. I find no significant impact of a VAT on firms' productivity or input cost. However, I find some evidence that the VAT increases firms' capital accumulation. In addition, I also find that the impact of a VAT is heterogeneous across different sectors of the economy. / Bibek Adhikari

This study examines the operating costs of, and intentional compliance with, the value added tax (VAT) in Ethiopia. The study focuses on assessing the magnitude and nature of operating costs, identifying areas in the design and administration of the tax that contribute to the operating costs and the problems in the operation of the tax at large, and also on the link between VAT compliance costs and intentional output VAT reporting compliance decisions. The study adopts a mixed methods research approach to test a series of hypotheses and answer research questions that emerge through the review of existing literature and the experiences of the researcher in respect of the Ethiopian tax system. Specifically, the study uses surveys of taxpayers and tax practitioners, experimental design, interviews with tax officials and documentary analysis. The study statistically analyses the data elicited from the surveys and experimental design. It also analyses the results of in-depth interviews with tax officials and examination of documents held by tax authorities and other institutions. The results of this combined research methodology reveal that VAT operating costs in Ethiopia in the fiscal year 2005/06 appear to be relatively low. However, this low level of operating costs may not imply that the VAT system in Ethiopia is simple. In particular, in the case of administrative costs it is argued that it may indicate that the tax authorities are under-resourced which in turn may have affected their ability to accomplish the responsibilities entrusted to them. In respect of compliance costs, although the total costs seem to be low, it is contended that their regressiveness is likely to impact on the equity of the tax system as a whole. Further, the results show that VAT compliance costs and intentional VAT reporting compliance decisions are inversely correlated; but this correlation is statistically weak. The results also identify several concerns in the design and administration of the tax that have bearing on the operating costs and the operation of the tax. Specifically, the existence of the relatively high registration threshold, the high frequency of VAT reporting, the use of the invoice method of accounting (the latter two pertain mainly to small businesses) and weak administration are noted. iv The thesis suggests a series of measures which could be taken by the government and by the tax authorities in particular, to address the various problems identified in the study. These measures include strengthening the administration; allowing small businesses to adopt the cash basis of accounting and report less frequently; and reducing the registration threshold. The use of tax education is also emphasised as a strategy to improve compliance.

The creation of shareholder wealth has become the key of corporate success. A setback in achieving this is a lack of commitment and participation in productivity initiatives at shop floor level in South Africa and companies are faced with competitive challenges of promoting innovativeness relating to productivity improvement amongst employees. It has increasingly been recognized that by introducing a carefully crafted incentive scheme, it may be possible to induce workers to work both harder and smarter and use existing technologies in new and better ways that enhance their productivity. The purpose of the study is to evaluate to what extend gainsharing can be a solution to the predicament. The empirical data used during the study was based on questionnaires that were administered amongst managers of Eskort Ltd. The research established that gainsharing would induce employees to effectively participate in problem solving or productivity improvement initiatives in the company. The majority of participants feel that gainsharing will benefit the company to deliver on client requirements; help enhance teamwork; create a feeling of ownership; share a portion of saved-cost for productivity improvement purposes; stimulate organization learning; improve communication between management and employees; stimulate employees to make suggestions on ways to improve productivity; and increase profit and reduce costs. The study clearly illustrates that money can be the primary drive for motivation to certain employees within the company. Further more based on the results of the empirical study the researcher came to the conclusion that motivated employees will be more productive and as a result have a positive influence on the value drivers employed by the EVA methodology. EVA is a value based performance measure, an investment decision tool and also a performance measure indicating the absolute amount of shareholder value created. / Thesis (M.B.A.)--North-West University, Vaal Triangle Campus, 2009.

Two models are developed that considers the different services provided by retail firms as an output of the retail industry besides the goods sold. The first model considers that consumers only gain utility from consuming retail goods and services and the second model considers that consumers shop for retail goods and experience a transaction cost, which is determined by the level of services. From both models a measure of retail output and value added is constructed. The models are used to answer the following question. Does the Bureau of Economic Analysis (BEA) accurately capture the value of retail services while calculating the value added of the retail sector? The models are estimated by a Generalized Method of Moments estimation technique using data for the retail industry between 1980 and 2005. The estimate of parameters from both models suggests declining market power over time and scale economies in the retail industry. The BEA measures the retail output on the basis of the gross margin which is total sales less total purchases and does not consider the value of services. We compute value added on the basis of our models. In both models, the values of retail services are included while calculating retail output. Results show that the BEA has underestimated the value added of the retail sector for all years in the study. The degree of underestimation is close in both models and it declines across time.

According to the USDA, there were 52.7 million marketings of cattle through live and internet auction markets and other venues in 2005. With the national average herd size at 43 head, most producers have limited bargaining power when it comes to marketing and auctioning their cattle. This has led to the birth of numerous value added cattle programs in the U.S. Value added programs are named as such, because they add additional value to the cattle before they are sold, but this value is difficult to quantify. The objective of this research was to measure the value of characteristics of feeder cattle sold through auction markets and special source verified feeder cattle sales, specifically the value of participating in these value added programs. Data over seven years from regular and special feeder cattle sales at Joplin Regional Stockyards were used. The effects of explanatory variables on sale price were analyzed using ordinary least squares regression hedonic model. Type of sale, seasonality, cyclical effects, lot size, weight, breed type, sex, commingling, fed cattle futures price, and corn price were all found to have an impact on the sale price of feeder cattle. Feeder calves sold through MFA Health Track Beef Alliance and other value added programs received a premium over those calves that sold through regular sales and the premiums for MFA and other value added programs were statistically different. Commingled lots of feeder cattle received a discount in comparison with non-commingled lots, but a lot size of 17 head would offset the negative effect of commingling. The predictive power of the hedonic model was tested using out of sample forecasting. The mean absolute percent error and root mean square error are indicators of the ability of the model to forecast sale price based on the measured impact of the explanatory variables. When the hedonic model was used for forecasting the out of sample data, the MAPE was 7.84 and the RMSE was 10.48.

According to the USDA, there were 52.7 million marketings of cattle through live and internet auction markets and other venues in 2005. With the national average herd size at 43 head, most producers have limited bargaining power when it comes to marketing and auctioning their cattle. This has led to the birth of numerous value added cattle programs in the U.S. Value added programs are named as such, because they add additional value to the cattle before they are sold, but this value is difficult to quantify. The objective of this research was to measure the value of characteristics of feeder cattle sold through auction markets and special source verified feeder cattle sales, specifically the value of participating in these value added programs. Data over seven years from regular and special feeder cattle sales at Joplin Regional Stockyards were used. The effects of explanatory variables on sale price were analyzed using ordinary least squares regression hedonic model. Type of sale, seasonality, cyclical effects, lot size, weight, breed type, sex, commingling, fed cattle futures price, and corn price were all found to have an impact on the sale price of feeder cattle. Feeder calves sold through MFA Health Track Beef Alliance and other value added programs received a premium over those calves that sold through regular sales and the premiums for MFA and other value added programs were statistically different. Commingled lots of feeder cattle received a discount in comparison with non-commingled lots, but a lot size of 17 head would offset the negative effect of commingling. The predictive power of the hedonic model was tested using out of sample forecasting. The mean absolute percent error and root mean square error are indicators of the ability of the model to forecast sale price based on the measured impact of the explanatory variables. When the hedonic model was used for forecasting the out of sample data, the MAPE was 7.84 and the RMSE was 10.48.

Economic Value Added (EVA) is a residual income that corrects distortion of managerial incentives introduced by standard GAAP accounting. This study attempts to compare EVA with EPS and see which one is better. The difference between literature and this study is that we use not only cross-regression but also Granger causality test to make clear the relationship between stock return and performance measure and find out what is the value of EVA. Our main finding is as follows¡G 1.EVA significantly positively affects the contemporaneous stock return, but EPS is insignificant. This support the existence of EVA. 2.The components unique to EVA --- the cost of capital, significantly negatively affects the contemporaneous stock return, indicating that market does take into consideration the cost of capital when pricing the company. 3.As to Granger causality relationship, there is no lead-lag relationship between stock return and EVA or EPS. This means that performance measure cannot be a predictor of future stock return. In a word, EPS, ignoring equity capital and being distorted by GAAP accounting, neither explains the contemporaneous stock return, nor forecasts the future. However, EVA, considering equity capital and correcting distortion of GAAP accounting, can explain the contemporaneous stock return by representing the intrinsic value of the company. But, EVA, being still on the basis of history, cannot forecast the future. Anyway, EVA can replace EPS in reflecting the operating of the company, that is the contribution of EVA.

Thesis (M.S.)--West Virginia University, 2002. / Title from document title page. Document formatted into pages; contains vii, 64 p. Vita. Includes abstract. Includes bibliographical references (p. 33).

Diss.-- European Business School, 2009. / Includes bibliographical references.

The creation of shareholder wealth has become the key of corporate success. A setback in achieving this is a lack of commitment and participation in productivity initiatives at shop floor level in South Africa and companies are faced with competitive challenges of promoting innovativeness relating to productivity improvement amongst employees. It has increasingly been recognized that by introducing a carefully crafted incentive scheme, it may be possible to induce workers to work both harder and smarter and use existing technologies in new and better ways that enhance their productivity. The purpose of the study is to evaluate to what extend gainsharing can be a solution to the predicament. The empirical data used during the study was based on questionnaires that were administered amongst managers of Eskort Ltd. The research established that gainsharing would induce employees to effectively participate in problem solving or productivity improvement initiatives in the company. The majority of participants feel that gainsharing will benefit the company to deliver on client requirements; help enhance teamwork; create a feeling of ownership; share a portion of saved-cost for productivity improvement purposes; stimulate organization learning; improve communication between management and employees; stimulate employees to make suggestions on ways to improve productivity; and increase profit and reduce costs. The study clearly illustrates that money can be the primary drive for motivation to certain employees within the company. Further more based on the results of the empirical study the researcher came to the conclusion that motivated employees will be more productive and as a result have a positive influence on the value drivers employed by the EVA methodology. EVA is a value based performance measure, an investment decision tool and also a performance measure indicating the absolute amount of shareholder value created. / Thesis (M.B.A.)--North-West University, Vaal Triangle Campus, 2009.