Slovenia belongs to a group of EU member states that have reduced their personal income tax burden during the current financial and economic crisis. The latest changes, introduced in the personal income tax system during the last two years, have primarily reduced the tax burden on low-income taxpayers. However, this was only the last step in a series of personal income tax reforms since 2004 that have on average reduced the tax burden on all taxpayers. Using an exclusive database of taxpayers and utilising a general-equilibrium modelling platform, we assess the consequences of these reforms at both the micro and the macro level. From a macroeconomic point of view, the initial positive consequences of higher private consumption and welfare are declining over time due the increased budget deficit and reduced investment.
COBISS.SI-ID: 1667726
We investigate the effects of memory on the stability of evolutionary selection dynamics based on a multinomial logit model in a simple asset pricing model with heterogeneous beliefs. Whether memory is stabilizing or destabilizing depends in general on three key factors: (1) whether or not the weights on past observations are normalized; (2) the ecology or composition of forecasting rules, in particular the average trend extrapolation factor and the spread or diversity in biased forecasts; and (3) whether or not costs for information gathering of economic fundamentals have to be incurred.
COBISS.SI-ID: 1651854
Assumptions about the future development of people’s longevity have a crucial impact on the long-term sustainability of the public pension system. The use of standard methods to estimate longevity has led to systematically underestimates of increase in longevity. In the paper the Lee–Carter (LC) model to forecast demographics projections for the Slovenian population is used. Using this approach the results are much closer to the actual development of mortality. The assumptions about people’s longevity made in the latest Eurostat projections still project somewhat lower increases in longevity than in the paper obtained results using LC model. This translates to about 0.9 percentage point higher share of public pension expenditure in GDP in 2060 compared to the results if Eurostat assumptions about longevity are used.
COBISS.SI-ID: 20498662