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Item Restricted Wealth tax — cross country analysis and implications for the Philippines(2023-01-10) Domingo, Gelli A.; Magboo, Jaaziel Ann C.; Solon, Orville Jose C.Wealth tax has been used as one of the policy tools in reducing the deep-rooted problem of wealth inequality. Recently, there has been a renewed interest for its implementation in various countries worldwide, including the Philippines. In this study, we assessed the feasibility of implementing a wealth tax in the country in two parts. First, we conducted a cross country review on the wealth tax experiences of twenty countries in order to look into the factors that are crucial to the success or failure of wealth tax implementation and how they apply to the Philippines. Our key findings showed that it would be difficult for the Philippines to attain the necessary standards for an effective wealth tax implementation, given its current conditions with respect to institutional and political factors. Primarily, strict and reliable enforcement practices (on tax reporting, assessment, collection, anti-avoidance, and anti-evasion) are imperative, but such would be hard to administer in the Philippines, with the observed inefficiencies in our institutions. Another main reason is the political climate in the country, wherein the wealthy have a strong influence in politics and have the tendency to use this influence in pursuing their personal interests. Second, using the available data from the Family Income and Expenditure Survey (FIES) and from the Forbes Magazine, we generated estimates of potential wealth tax revenues, along with respective tax thresholds. We found that the FIES would not be a sufficient data basis for operationalizing a wealth tax in the country because it underestimates the wealth concentration at the higher end. Moreover, wealth estimation can be improved by collecting direct wealth stock information in addition to the flow variables from the FIES. Ultimately, more accurate and reliable information about wealth is essential to better assess the appropriate wealth tax system for the Philippines.Item Restricted The effects of income on household energy consumption(2018-06-01) Iyog, Jannie Marel M. ; Lacorte, Rowel Lester T. ; Pajaron, Marjorie C.The Philippines has one of the highest electricity prices among its neighbors in the Southeast Asian region along with its high poverty rates. Energy has a huge importance to the country, not just for the industrial sector, but also for households. Changes in its price carries a huge impact. This paper discusses the effect of the total income of Filipino households to their energy consumption using the 2015 Family Income and Expenditures Survey (FIES). In particular, our paper studies the usage of different energy sources such as electricity, LPG, kerosene, fuel wood, charcoal, and other sources by different households with varying demographics and socio- economic status. This paper utilizes ordinary least squares (OLS) regression, multiple probabilistic (MProbit) regression, and multiple logistic (MLogit) regression models. Results show that there is a positive relationship between the level of income of a household and the energy expenditure of that household. This proves the assumption that energy behaves as a normal good. This means, given a certain increase in the income of a consumer, there will be a corresponding increase in the demand of that good, which in this case is energy. Moreover, the size of the household, the number of appliances within the household, and total expenditures of the household are all positively correlated with energy consumption. The findings also show positive relationship between education of the household head and the household’s energy expenditure among all different kinds of energy source. Marital status, wealth, and sex results show that there are difference in effects depending on the energy source.