Fiscal Sustainability in the Presence of Systemic Banks: the Case of EU countries
AbstractWe provide a first attempt to include off-balance sheet, implicit insurance to SIFIs into a consistent assessment of fiscal sustainability, for 27 countries of the European Union. We first calculate tax gaps à la Blanchard (1990) and Blanchard et al. (1990). We then introduce two alternative measures of implicit off-balance sheet liabilities related to the risk of a systemic bank crisis. The first one relies on microeconomic data at the bank level. The second one is based on econometric estimations of the probability and the cost of a systemic banking crisis. The former approach provides an upper evaluation of the fiscal cost of systemic banking crises, whereas the latter one provides a lower one. Hence we believe that the combined use of these two methodologies helps to gauge the range of fiscal risk.
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Bibliographic InfoPaper provided by HAL in its series Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) with number hal-00825256.
Date of creation: 2014
Date of revision:
Publication status: Published, International Tax and Public Finance, 2014, Published online 29 March 2013
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fiscal sustainability ; tax gap ; systemic banking risk ; off-balance sheet liabilities;
Other versions of this item:
- AgnÃ¨s BÃ©nassy-QuÃ©rÃ© & Guillaume Roussellet, 2014. "Fiscal sustainability in the presence of systemic banks: the case of EU countries," International Tax and Public Finance, Springer, Springer, vol. 21(3), pages 436-467, June.
- Agnes Benassy-Quere & Guillaume Roussellet, 2012. "Fiscal Sustainability in the Presence of Systemic Banks: The Case of EU Countries," CESifo Working Paper Series 3975, CESifo Group Munich.
- Agnès Bénassy-Quéré & Guillaume Roussellet, 2012. "Fiscal sustainability in the presence of systemic banks: the case of EU countries," Working Papers 2012-05, CEPII research center.
- AgnÃ¨s BÃ©nassy-QuÃ©rÃ© & Guillaume Roussellet, 2012. "Fiscal Sustainability in the Presence of Systemic Banks : the Case of EU Countries," UniversitÃ© Paris1 PanthÃ©on-Sorbonne (Post-Print and Working Papers) halshs-00755705, HAL.
- BÃ©nassy-quÃ©rÃ©, A. & Roussellet, A., 2013. "Fiscal Sustainability in the Presence of Systemic Banks: the Case of EU Countries," Working papers, Banque de France 428, Banque de France.
- AgnÃ¨s BÃ©nassy-QuÃ©rÃ© & Guillaume Roussellet, 2012. "Fiscal Sustainability in the Presence of Systemic Banks: the Case of EU Countries," Documents de travail du Centre d'Economie de la Sorbonne, UniversitÃ© PanthÃ©on-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne 12077, UniversitÃ© PanthÃ©on-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
- H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
- H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
- J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
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