In collaboration with Payame Noor University and Iranian Association for Energy Economics (IRAEE)

Document Type : ORIGINAL ARTICLE

Authors

1 Professor of Economics, Payame Noor University

2 Head of Iran’s Institute For Trade Studies and Research & Assistant Professor of Economics, Islamic Azad University, Tehran, Iran

3 Ph.D. Student & Faculty Member of Economics, Payame Noor University

Abstract

Iran’s tax system includes many forms of tax incentives, like as regionally targeted tax incentives. According to direct tax act, article 132, that includes this kind of incentive, declared taxable income of manufacturing and mining activities in less developed regions are totally (100%) exempt from corporate income tax for ten years. The aim of this study is to estimate the impact of tax exemptions of article 132 on employment of Iran’s less developed counties for the period from 1996 to 2008. In the present paper, a two- stage method is used. In the first stage, a proper control group is selected for each treated county by using Synthetic Control Method (SCM) and Genetic algorithm, and the impact of tax incentives article 132 on employment in Iran’s less developed regions is estimated via Difference in Difference (DID) Method, in the second stage. Results indicate that tax exemptions in mentioned Article have no impact on employment of Iran’s less developed counties.

Keywords

سازمان امور مالیاتی (1390). "بازنگری مشوق‌های مالیاتی در ایران". معاونت پژوهش، برنامه‌ریزی و امور بین‌الملل. شماره گزارش 18.
کشاورز حداد، غلامرضا (1395). "اقتصادسنجی داده‌های خرد و ارزیابی سیاست". نشر نی.
عبدالملکی، حجت الله و شیردلیان، شهناز (1392). "تحلیل معافیت‌های مالیاتی بر کارایی اقتصادی منطقه‌ای (مطالعه موردی معافیت‌های مالیاتی موضوع ماده 132)". فصلنامه پژوهشنامه مالیات، شماره20، 197-169.
فلیحی، نعمت الله؛ مقدم‌پور بهران، نقی؛ خان جان، علیرضا و غلامی، الهام (1387). "بررسی اثر معافیت‌های مالیاتی منطقه‌ای (موضوع ماده 132 قانون مالیات‌های مستقیم)". طرح تحقیقاتی، پژوهشکده امور اقتصادی، تهران.
غفارزاده، احمد (1386). "بررسی اثر بخشی معافیت‌های مالیاتی منطقه‌ای". مجموعه مقالات اولین همایش سیاست‌های مالی و مالیاتی ایران". دفتر مطالعات و تحقیقات مالیاتی، 169-157.
موسوی جهرمی، یگانه؛ عبدی، محمدرضا و غلامی، الهام (1394). "محاسبه مخارج مالیاتی سیستم مالیات بر ارزش افزوده ایران". پژوهشنامه مالیات، شماره 25، 69-45.
 
 
 
Abadie, A. & Gardeazabal, J. (2003). “The Economic Costs of Conflict: A Case Study of the Basque Country”. American Economic Review, 93, 113–132.
Abadie, A. (2005). “Semiparametric Difference-in-Differences Estimators”. Review of Economic Studies, 72, 1–19.
Abadie, A., Alexis, D. & Hainmueller, J. (2010). “Synthetic Control Methods for Comparative Case Studies: Estimating the Effect of California’s Tobacco Control Program”. Journal of the American Statistical Association, 105, 493–505.
Bartik, T. (1991). “Who Benefits from State and Local Economic Development Policies?”. Economic Geography, 68)2(, 214-226.
Bartik, T. (2007). “Solving the Problems of Economic Development Incentives”. W. E. Upjohn Institute for Employment Research, 36)2(, 139-166.
Behaghel, L., Lorenceau, A. & Quantin, S. (2012). “Tax Exemptions and Rural Development: Evidence from a Quasi-Experiment”. Paris School of Economics, 34, 1-42.
Billings, S. (2009). “Do Enterprise Zones Work?: An Analysis at the Borders”. Public Finance Review, 37)1(, 68-93.
Boarnet, M. & Bogart, W. (1996). “Enterprise Zones and Employment: Evidence from New Jersey”. Journal of Urban Economics, 40(2), 198-215.
Bondonio, D .(2009). “Impact Identification Strategies for Evaluating Business Incentive Programs”. Working Paper, No.145 (www.researchgate.net).
Bondonio, D. & Greenbaum, R. (2007). “Do Local Tax Incentives Affect Economic Growth? What Mean Impacts Miss in the Analysis of Enterprise Zone Policies”. Regional Science and Urban Economics, 37(1), 121-136.
Duranton, G., Gobillon, L. & Overman, H. (2006). “Assessing the Effects of Local Taxation using Microgeographic Data”. CEP Discussion, 748, 1017-1046.
Elvery, J. (2007). “The Impact of Enterprise Zone on Resident Employment”. Economic Development Quarterly, 23)1(, 44-59.
Givord, P., Rathelot, R. & Sillard, P. (2013). “Place-based Tax Exemptions and Displacement Effects: An Evaluation of the Zone France Urbaines Program”. Regional Science and Urban Economics, 43, 151-163.
Glaeser, E. (2001). “The Economics of Location Based Tax Incentives”. Harvard Institute of Economic Research, Discussion Paper, No 1932.
Grieve, R., Hangartner, D., Turner, A., Nikolova, S. & Sutton, M. (2015). “Examination of the Synthetic Control Method for Evaluation of Health Policies with Multiple Treated Units”. Health Economics, 3258, 124-152.
Heckman, J., Ichimura, H., Smith, J. & Todd, P. (1998). “Characterizing Selection Bias Using Experimental Data”. Econometrica, 66)5(, 1017-1098.
Lechner, M. (2010). “The Estimation of Causal Effects by Difference-in-Difference Methods”. Foundations and Trends® in Econometrics, 4)3(, 165–224.
MIT. (2015). “Generalized Synthetic Control Method for Causal Inference with Time-Series Cross-Sectional Data”. Massachusetts Institute of Technology, Political Science Department, 20, 12-25.
Oates, W. E. (1969). “The Effects of Property Taxes and Local Public Spending on Property Values; an Empirical Study of Tax Capitalisation and the Tiebout Hypothesis”. Journal of Political Economy, 77, 957-971.
Papke, L. (1994). “Tax Policy and Urban Development: Evidence from the Indiana Enterprise Zone Program”. Journal of Public Economics, 54, 37-49.
Rosenbaum, P. R. & Rubin, D. B. (1983). ‘The Central Role of the Propensity Score in Observational Studies for Causal Effects”. Biometrika, 70, 41–55.
Rubin, B. M. & Wilder, M. G. (1989). “Urban Enterprise Zones: Employment Impacts and Fiscal Incentives”. Journal of the American Planning Association, 55, 418-431.
Rubin, D. B. (2007). “The Design Versus the Analysis of Observational Studies for Causal Effects: Parallels with the Design of Randomized Trials”. Stat Med, 26(1), 20–36.
Sekhon, J. (2011). “Multivariate and Propensity Score Matching Software with Automated Balance Optimization: The Matching Package for R”. Journal of Statistical Software. 42, 114-132.
Stuart, E., Huskamp, H., Duckworth, K., Simmons, J. & Song, Z. (2014). “Using Propensity Scores in Difference-in-Differences Models to Estimate the Effects of a Policy Change”. Health Services and Outcomes Research Methodology, 14(4), 166–182.