• The Finnish payroll tax cut experiment revisited 

      Korkeamäki, Ossi
      VATT Working Papers : 22 (Valtion taloudellinen tutkimuskeskus VATT, 13.04.2011)
      In this paper I evaluate the effects of a regional experiment that reduced payroll taxes by 3–6 percentage points of the firms' wage sum in northern and eastern Finland. I estimate the effect of the payroll tax reduction ...
    • Firm Responses to an Interest Barrier: Empirical Evidence 

      Harju, Jarkko; Kauppinen, Ilpo; Ropponen, Olli
      VATT Working Papers : 90 (Valtion taloudellinen tutkimuskeskus, 27.06.2017)
      This paper studies the effects of an interest barrier that was introduced in Finland to restrict the profit-shifting opportunities of multinational enterprises (MNEs). We employ full population data of Finnish, Swedish and ...
    • Firm types, price-setting strategies, and consumption-tax incidence 

      Kosonen, Tuomas; Harju, Jarkko; Nordström Skans, Oskar
      VATT Working Papers : 70 (Valtion taloudellinen tutkimuskeskus VATT, 29.12.2015)
      Studying very detailed micro data collected around two different VAT reforms in Europe, we show that tax incidence is heavily dependent on the characteristics of the price-setting firms. The reforms generated bimodal ...
    • Fiscal policies in Europe and the United States during the Great Depression 

      Kavonius, Ilja Kristian
      VATT Working Papers : 13 (Valtion taloudellinen tutkimuskeskus VATT, 11.02.2010)
      Abstract: This paper discusses the fiscal policy reactions and economic policies of European countries and the United States during the Great Depression. Economic as well as economic history literature has tended to overlook ...
    • Gender Specific Relative Age Effects in Politics and Football 

      Tukiainen, Janne; Takalo, Tuomas; Hulkkonen, Topi
      VATT Working Papers : 94 (Valtion taloudellinen tutkimuskeskus, 05.09.2017)
      The existence of a relative age effect (RAE) is well documented, i.e., those born early in the calendar year perform better at school and sports. We exploit a change in a selection period in youth football and regression ...
    • Generic substitution policy, prices and market structure: evidence from a quasi-experiment in Finland 

      Hokkanen, Joni; Kangasharju, Aki; Linnosmaa, Ismo; Valtonen, Hannu
      VATT Working Papers : 35 (Valtion taloudellinen tutkimuskeskus VATT, 24.08.2012)
      The present paper evaluates the quantitative impact of a pharmaceutical reform on pharmaceutical prices. A generic substitution policy was introduced in Finland in 2003 to contain rising pharmaceutical expenditure. After ...
    • Global trade and climate policy scenarios – Impact on Finland 

      Honkatukia, Juha; Kaitila, Ville; Kotilainen, Markku; Niemi, Janne
      VATT Working Papers : 37 (Valtion taloudellinen tutkimuskeskus VATT, 03.09.2012)
      In this study we use the dynamic version of the GTAP model to analyse the effects of global trade policy changes and their interaction with different global climate policy regimes from Finland's point of view, and in ...
    • Granting public or private consumption? Effects of grants on local public spending and income taxes 

      Lundqvist, Heléne
      VATT Working Papers : 15 (Valtion taloudellinen tutkimuskeskus VATT, 27.09.2010)
      While the literature on how intergovernmental grants affect the budget of receiving jurisdictions is numerous, the very few studies that explicitly deal with likely endogeneity problems focus on grants targeted towards ...
    • Housing allowance and rents: Evidence from a stepwise subsidy scheme 

      Eerola, Essi; Lyytikäinen, Teemu
      VATT Working Papers : 88 (Valtion taloudellinen tutkimuskeskus, 31.05.2017)
      This paper studies the effect of housing allowance on rents using discontinuities in the Finnish housing allowance system as a quasi-experimental setting. The stepwise dependence of housing allowance on the floor area of ...
    • Housing transfer taxes and household mobility: Distortion on the housing or labour market? 

      Lyytikäinen, Teemu; Hilber, Christian A. L.
      VATT Working Papers : 47 (Valtion taloudellinen tutkimuskeskus VATT, 09.08.2013)
      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 quasiexperimental setting, we isolate the impact of the stamp duty from other ...
    • How do small firms respond to tax schedule discontinuities? Evidence from South African tax registers 

      Boonzaaier, Wian; Harju, Jarkko; Matikka, Tuomas; Pirttilä, Jukka
      VATT Working Papers : 85 (Valtion taloudellinen tutkimuskeskus, 28.04.2017)
      We study the responsiveness of small and medium-sized firms to corporate income taxes using population-wide administrative data from South Africa. We find sizable bunching of firms at the corporate income thresholds where ...
    • The impact of dividend taxation on dividends and investment: New evidence based on a natural experiment 

      Kari, Seppo; Karikallio, Hanna; Pirttilä, Jukka
      VATT Working Papers : 9 (Valtion taloudellinen tutkimuskeskus VATT, 08.09.2009)
      There is a lack of clear evidence of the ways in which dividend taxation affects dividend distributions and investment and the evidence is based mainly on the behaviour of large listed companies. This paper utilises a large ...
    • The impact of school closures on student achievement - evidence from rural Finland 

      Izadi, Ramin
      VATT Working Papers : 63 (Valtion taloudellinen tutkimuskeskus VATT, 05.06.2015)
      Over the last two decades, many municipalities in Finland have attempted to cut costs by closing small schools. In particular, rural schools with low enrolment have been the target of these savings. This continuing tendency ...
    • The impact of tax incentives on the economic activity of entrepreneurs 

      Kosonen, Tuomas; Harju, Jarkko
      VATT Working Papers : 42 (Valtion taloudellinen tutkimuskeskus VATT, 10.01.2013)
      Based on existing evidence, we know little about how the taxation of small business owners affects their economic activity. This paper studies the effect of two Finnish tax reforms, in 1997 and 1998, on the effort decisions ...
    • Informational Efficiency of the EU ETS market – a study of price predictability and profitable trading 

      Aatola, Piia; Ollikka, Kimmo; Ollikainen, Markku
      VATT Working Papers : 28 (Valtion taloudellinen tutkimuskeskus VATT, 22.03.2012)
      We study the informational efficiency of the European Emissions Trading Scheme, EU ETS market by simulating the trading in this emerging market. If the market is efficient, profitable trading should only exist locally in ...
    • Innovation, Competition and Technical Efficiency 

      Berghäll, Elina
      VATT Working Papers : 77 (Valtion taloudellinen tutkimuskeskus VATT, 12.10.2016)
      Contradictory empirical and theoretical evidence on the relationship between innovation and competition has been reconciled in a model that yields an inverted U-shaped curve. I test whether the predictions of the model are ...
    • Institutional rules, labour demand and retirement through disability programme participation 

      Kyyrä, Tomi; Korkeamäki, Ossi
      VATT Working Papers : 16 (Valtion taloudellinen tutkimuskeskus VATT, 27.09.2010)
      We use matched employer-employee data from Finland to model transitions out of work into sick leave and disability retirement. To identify the role of institutional factors we exploit reforms that changed medical requirements ...
    • Investment Incentives and Tax Competition under the Allowance for Growth and Investment (AGI) 

      Kari, Seppo; Laitila, Jussi; Ropponen, Olli
      VATT Working Papers : 110 (Valtion taloudellinen tutkimuskeskus, 24.10.2018)
      We employ a dynamic investment model to study the investment incentives of the Allowance for Growth and Investment (AGI) proposed by the European Commission in its two-step approach towards the Common Consolidated Corporate ...
    • The labour market impacts of a youth guarantee: lessons for Europe? 

      Tuomala, Juha; Hämäläinen, Kari; Hämäläinen, Ulla
      VATT Working Papers : 60 (Valtion taloudellinen tutkimuskeskus VATT, 18.12.2014)
      This paper examines the youth guarantee programme introduced in Finland 2005. The reform consisted of early intervention, monitoring and individualized job search plans that guarantee activation measures for unemployed ...
    • Local Representation and Strategic Voting: Evidence from Electoral Boundary Reforms 

      Tukiainen, Janne; Saarimaa, Tuukka
      VATT Working Papers : 64 (Valtion taloudellinen tutkimuskeskus VATT, 11.09.2015)
      We analyze whether voters value local political representation by exploiting municipal mergers, which increase the number of candidates available to voters and intensify political competition. In the Finnish open-list ...