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Efficiency of Fiscal Measures in Preventing Out-migration from North Finland

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  • Thomas Rutherford
  • Hannu Torma†

Abstract

Rutherford T. F. and Torma H. Efficiency of fiscal measures in preventing out-migration from North Finland, Regional Studies. This paper introduces a computable general equilibrium (CGE) model for the Finnish regional economy, RegFin. This multi-sector and interregional model characterizes economic activity in the regions of Lappi, Pohjois-Pohjanmaa, Kainuu, Keski-Pohjanmaa, and the rest of Finland. The macroeconomic effects of a regional policy applied to North Finland are considered to be similar to tax reforms that have been implemented in Norway. Tax incentives affect individual choices regarding both migration and employment. Also studied is a value-added tax reform where labour costs are exempted from the tax base. The simulations seem to indicate that the regional differentiation of the employers' social security contributions and the value-added tax reform could be effective tools of regional policy. [image omitted] Rutherford T. F. et Torma H. L'efficacite des mesures fiscales destinees a empecher l'exode de la Finlande du Nord, Regional Studies. Cet article cherche a presenter un modele d'equilibre general sur ordinateur (appelle modele CGE) pour l'economie regionale finlandaise (appellee RegFin). Ce modele multisectoriel et interregional characterise l'activite economique dans les regions de Lappi, Pohjois-Pohjanmaa, Kainuu, Keski-Pohjanmaa et du reste de la Finlande. On considere les effets macroeconomiques d'une politique regionale pour la Finlande du Nord qui se rapporte aux reformes fiscales mises en oeuvre dans la Norvege. Les incitations fiscales influent sur le choix quant a la migration et a l'emploi. On etudie aussi une reforme de la taxe a la valeur ajoutee ou les frais de main-d'oeuvre sont exoneres d'impot. Les simulations laissent indiquer que les ecarts regionaux des cotisations patronales et la reforme de la taxe a la valeur ajoutee pourraient s'averer des outils efficaces de politique regionale. Charges sociales Taxe a la valeur ajoutee Modelisation CGE Modele regional RegFin Rutherford T. F. und Torma H. Wirksamkeit steuerlicher Massnahmen bei der Pravention einer Abwanderung aus Nordfinnland, Regional Studies. In diesem Beitrag stellen wir ein berechenbares allgemeines Gleichgewichtsmodell namens RegFin fur die finnische Regionalwirtschaft vor. In diesem multisektoralen und interregionalen Modell wird die wirtschaftliche Tatigkeit in den Regionen von Lappi, Pohjois-Pohjanmaa, Kainuu, Keski-Pohjanmaa sowie im ubrigen Finnland charakterisiert. Wir untersuchen die makrookonomischen Auswirkungen einer Regionalpolitik fur Nordfinnland, die den in Norwegen umgesetzten Steuerreformen ahnelt. Steuerliche Anreize wirken sich auf individuelle Entscheidungen hinsichtlich der Migration und des Arbeitsverhaltnisses aus. Ebenso untersuchen wir eine Reform der Mehrwertsteuer, bei der die Lohnkosten nicht steuerlich veranschlagt werden. Unsere Simulationen scheinen darauf hinzuweisen, dass eine regionale Differenzierung der Sozialbeitrage von Arbeitgebern sowie eine Reform der Mehrwertsteuer wirksame Instrumente der Regionalpolitik darstellen konnten. Lohnsteuer Mehrwertsteuer CGE-Modelle Regionalmodell RegFin Rutherford T. F. y Torma H. La eficacia de las medidas fiscales en la prevencion de la emigracion desde el norte de Finlandia, Regional Studies. En este articulo introducimos un modelo de equilibrio general computable (EGC) para la economia regional de Finlandia (RegFin). Este modelo multisectorial e interregional define la actividad economica en las regiones de Lappi, Pohjois-Pohjanmaa, Kainuu, Keski-Pohjanmaa y el resto de Finlandia. Aqui consideramos los efectos macroeconomicos de una politica regional aplicada al norte de Finlandia que es similar a las reformas fiscales que se han aplicado en Noruega. Los incentivos fiscales afectan a las opciones individuales con respecto a la emigracion y al empleo. Tambien analizamos una reforma del impuesto sobre el valor anadido en la que los costes laborales esten exentos de la base impositiva. Nuestras simulaciones parecen indicar que la diferencia regional en las contribuciones a la seguridad social por parte de los empresarios y la reforma del impuesto sobre el valor anadido podrian ser herramientas eficaces de la politica regional. Tributacion sobre los salarios Impuesto de valor anadido Modelo CGE Modelo regional RegFin

Suggested Citation

  • Thomas Rutherford & Hannu Torma†, 2010. "Efficiency of Fiscal Measures in Preventing Out-migration from North Finland," Regional Studies, Taylor & Francis Journals, vol. 44(4), pages 465-475.
    • Handle: RePEc:taf:regstd:v:44:y:2010:i:4:p:465-475
    DOI: 10.1080/00343400802508786
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    2. James A. Giesecke & John R. Madden, 2013. "Evidence-based regional economic policy analysis: the role of CGE modelling," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 6(2), pages 285-301.
    3. Giesecke, James A. & Madden, John R., 2013. "Regional Computable General Equilibrium Modeling," Handbook of Computable General Equilibrium Modeling, in: Peter B. Dixon & Dale Jorgenson (ed.), Handbook of Computable General Equilibrium Modeling, edition 1, volume 1, chapter 0, pages 379-475, Elsevier.
    4. Britz, Wolfgang & Dudu, Hasan & Ferrari, Emanuele, 2014. "Economy-wide Impacts of Food Waste Reduction: A General Equilibrium Approach," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 186677, European Association of Agricultural Economists.
    5. Törmä, Hannu & Kujala, Susanna & Kinnunen, Jouko, 2015. "The employment and population impacts of the boom and bust of Talvivaara mine in the context of severe environmental accidents – A CGE evaluation," Resources Policy, Elsevier, vol. 46(P2), pages 127-138.
    6. Wolfgang Britz & Hasan Dudu & Ilaria Fusacchia & Yaghoob Jafari & Roberto Roson & Luca Salvatici & Martina Sartori, 2019. "Economy-wide analysis of food waste reductions and related costs," JRC Research Reports JRC113395, Joint Research Centre.

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