The political economy of public finance: taxation, state spending and debt since the 1970s PDF
Preview The political economy of public finance: taxation, state spending and debt since the 1970s
The Political Economy of Public Finance Thisvolumeexaminesthemajortrendsinpublicfinanceindeveloped capitalist countries since the oil crisis of 1973. That year’s oil shock quickly became an economic crisis, putting an end to a period of very highgrowthratesandaneraofeasyfinance.Taxprotestsandgrowing welfare costs often led to rising debt levels. The change to floating exchange rates put more power in the hands of markets, which was associated with a growing influence of neo-liberal thinking. These developments placed state finances under considerable pressure, and leading scholars here examine how the wealthiest OECD countries responded to these challenges and the consequences for the distribu- tion of wealth between the rich and the poor.As the case studies here make clear, there was no simple ‘race to the bottom’ in taxation and welfare spending: different countries opted for different solutions that reflectedtheirpoliticalandeconomicstructures. Marc Buggeln is Lecturer in Contemporary History at Humboldt University,Berlin. Martin Daunton was Professor of Economic History at the University of Cambridge from 1997 to 2015, and previously Astor ProfessorofBritishHistoryatUniversityCollegeLondon. Alexander Nützenadel is Professor of Economic and Social History atHumboldtUniversity,Berlin. The Political Economy of Public Finance Taxation, State Spending and Debt since the 1970s Marc Buggeln Humboldt-UniversitätzuBerlin Martin Daunton UniversityofCambridge Alexander Nützenadel Humboldt-UniversitätzuBerlin UniversityPrintingHouse,CambridgeCB28BS,UnitedKingdom OneLibertyPlaza,20thFloor,NewYork,NY10006,USA 477WilliamstownRoad,PortMelbourne,VIC3207,Australia 4843/24,2ndFloor,AnsariRoad,Daryaganj,Delhi–110002,India 79AnsonRoad,#06-04/06,Singapore079906 CambridgeUniversityPressispartoftheUniversityofCambridge. ItfurtherstheUniversity’smissionbydisseminatingknowledgeinthe pursuitofeducation,learningandresearchatthehighestinternational levelsofexcellence. www.cambridge.org Informationonthistitle:www.cambridge.org/9781107140127 DOI:10.1017/9781316498958 ©CambridgeUniversityPress2017 Thispublicationisincopyright.Subjecttostatutoryexceptionandtothe provisionsofrelevantcollectivelicensingagreements,noreproductionof anypartmaytakeplacewithoutthewrittenpermissionofCambridge UniversityPress. Firstpublished2017 PrintedintheUnitedKingdombyClays,StIvesplc AcataloguerecordforthispublicationisavailablefromtheBritishLibrary. ISBN978-1-107-14012-7Hardback ISBN978-1-316-50559-5Paperback CambridgeUniversityPresshasnoresponsibilityforthepersistenceor accuracyofURLsforexternalorthird-partyinternetwebsitesreferredto inthispublication,anddoesnotguaranteethatanycontentonsuch websitesis,orwillremain,accurateorappropriate. Contents Listoffigures pagevii Listoftables ix Listofcontributors xi Acknowledgements xv 1 ThePolitical EconomyofPublicFinancesincethe1970s: QuestioningtheLeviathan MARCBUGGELN,MARTINDAUNTONANDALEXANDERNÜTZENADEL 1 2 CreatingaDynamicSociety:TheTaxReformsof theThatcherGovernment MARTINDAUNTON 32 3 FiscalPolicyinJapanandtheUnited Statessince1973: EconomicCrises, TaxationandWeakTaxConsent W.ELLIOTBROWNLEEANDEISAKUIDE 57 4 SwissWorldsofTaxation:ThePolitical Economy ofFiscalFederalismandTaxCompetition GISELAHUERLIMANN 83 5 Taxationinthe1980s:AFive-CountryComparison ofNeo-LiberalismandPathDependency MARCBUGGELN 105 6 TheSwissTaxHaven,theBretton WoodsSystemCrisis andtheGlobalisation ofOffshoreFinance CHRISTOPHEFARQUET 126 7 Post-WarFiscalTraps PETERH.LINDERT 149 v vi Contents 8 FiscalRedistributioninComparativePerspective:Recent Evidence fromtheLuxembourgIncomeStudy(LIS)Data Centre DAVIDK.JESUITANDVINCENTA.MAHLER 177 9 TheState,PublicFinance andtheChangingResponse to InvestingintheFuture:TheCaseoftheUnitedKingdom sincethe1970s MARTINCHICK 199 10 From‘BrinkoftheAbyss’to‘Miracle’?PublicSpendingin DenmarkandtheNetherlands since1980 REIMUTZOHLNHÖFER 221 11 ThePoliticsofPublicDebtFinancialisation: (Re)Inventing the MarketforFrenchSovereignBondsandShapingthePublic DebtProblem(1966–2012) BENJAMIN LEMOINE 240 12 Structural FiscalImbalances,FinancialRepressionand SovereignDebtSustainability inSouthernEurope, 1970s–1990s STEFANOBATTILOSSI 262 Index 299 Figures 4.1 Therelativeimportanceofturnovertax/VAT anddirectfederaltaxes page98 7.1 PriceofpetrolandtaxesinOECDcountries, late2007 157 7.2 Rateofassistancetoagriculture, 1955–9to2005–7 162 7.3 RateofprotectiontoJapaneserice,1903–7to2005–7 163 7.4 Government pensionspendingasashareofGDP, 1980–2009 169 7.5 USpovertyratesbyagegroup1959–2011 173 7.6 Biastowards theelderlyinpublicsocialspending, 1985–2000 174 8.1 Privateanddisposable incomeGinicoefficients:meanby LISwave 193 8.2 Aspectsoffiscalredistribution: averagesbyLISwave 194 8.3 Pre-governmentGinicoefficients byLISwavefor selected countries 195 8.4 Post-governmentGinicoefficientsbyLISwavefor selected countries 196 8.5 OverallfiscalredistributionbyLISwaveforselected countries 197 10.1 Generalgovernmentfinancialbalancesasapercentage of nominalGDP,DenmarkandtheNetherlands, 1980–2007 222 10.2 Totaltaxrevenuesandtotalexpenditureofgeneral governmentasapercentage ofnominalGDP,Denmark andtheNetherlands, 1980–2007 223 10.3 Socialandcoreexpenditureasapercentage ofGDP, DenmarkandtheNetherlands,1980–2007 224 12.1 ADTIndexoffinancialreforminwesternEurope, 1973–98 276 12.2 Centralbankindependence andfinancialreformsin1990 279 12.3 Commercial banks’reserveswithcentral banks 280 12.4 Commercial banks’claimsongovernment 280 12.5 Seignioragerevenuesfrombankreserves 283 vii viii ListofFigures 12.6 Effectiveandshadowborrowing costs 285 12.7 Realised shadowborrowingcostdifferential 286 12.8 Totalimplicitrevenues 287 12.9 Realborrowingcosts andGDPgrowthrates 289 12.10 Realised vscounterfactualflowcosts 291 12.11 Realised vscounterfactualfiscalburdensanddebtpaths 293
The list of books you might like
