Happy new year to all. In case some of you missed it, the Department of Finance published two working papers (by Gavin Murphy, Martina Nacheva and Luke Daly) just prior to Christmas looking at the ever topical issue of Ireland’s output gap. Both papers can be accessed at this link. The first paper takes a detailed look and review of the main methods used to estimate the cyclical position of an economy. The authors highlight the diversity of modelling approaches used across institutions both within Ireland and abroad. The second paper outlines in detail the methodology used by the Department to produce estimates of the output gap for Ireland. To date, the Department has used the European Commission’s harmonised approach (i.e. common to all EU Member States), which has at times resulted in counterintuitive estimates of Ireland’s cyclical position. This research seeks to develop more plausible estimates taking better account of the nature of Ireland’s small open economy. Such work will enable the Department to better evaluate the appropriate fiscal stance and the sustainability of public finances over the medium term. For those with an interest in macroeconomic modelling and forecasting as well as fiscal policy related issues, the papers offer an invaluable source of information into what can be a complex area.
This morning Revenue published our Annual Report for 2017. The report contains lots of information on Revenue’s activities and outputs last year that contributed to the collection of €50.8 billion in net receipts for the Exchequer, as well as delivering on service to support compliance, the implementation of customs controls and facilitation of trade.
Also published today are a series of research papers that may interest readers of this blog:
Updated Corporation Tax research profiles tax payments received in 2017 as well as analysis of 2016 tax returns. This includes significant new analysis of multinational companies in Ireland.
An analysis of Income Dynamics and Mobility based on Revenue micro data. This examines the distribution of incomes by decile and percentile as well as tracking mobility of income earners over time.
Profiles of Excise Duty and Capital Taxes receipts. Excise, Capital Acquisitions Tax , Stamp Duty, Capital Gains Tax and Local Property Tax cover wide ranging activities, transactions and products. The profiles document these in detail and show changes in core components in recent years. For the first time, information on capital taxes are combined together with location and earnings data to present new perspectives on the taxes.
Revenue’s latest customer survey, of small to medium sized enterprises in 2017, is Revenue’s fourth SME survey. Responses show that customer satisfaction with Revenue service remains high across a range of headings. The survey also includes a behavioural experiment to test the impact of personalisation on response rates.
Also published is the annual illegal tobacco survey results for 2017 and the first quarterly Local Property Tax statistics for 2018.
The proceedings of the 170th session of the Statistical and Social Inquiry Society of Ireland can now be accessed online. Links to the articles are listed below. The hard copy of the publication will be available from Spring 2018.
Deeter, Karl; Quinn, Frank; Duffy, David (SSISI, 2017)
Linehan, Timothy (SSISI, 2017)
Stuart, Rebecca (SSISI, 2017)
Barry, Frank (SSISI, 2017)
Callan, T.; Colgan, B.; Keane, C.; Logue, C.; Walsh, J.R.(SSISI, 2017)
Nolan, Brian (SSISI, 2017)
Reidy, Theresa; Suiter, Jane (SSISI, 2017)
Layte, Richard; Landy, David (SSISI, 2017)
Smyth, Diarmaid (SSISI, 2017)
O’Reilly, Dermot; Rosato, Michael (SSISI, 2017)
The robust performance of the Irish labour market over the past number of years offers the most tangible evidence of the recovery in the Irish economy. With unemployment falling and vacancies rising, an obvious question that arises is the extent to which the current pace of growth can be maintained. Today, colleagues in the Central Bank published a paper examining this very issue, bringing together a range of labour market indicators to assess the current state of play including prospects for wages over the short-term. We also revisit Okun’s law and the Phillips curve drawing on the latest Irish data. We hope that this research proves useful as 2017 draws to a close. The paper is titled ‘The Labour Market and Wage Growth after a Crisis’ and can also be accessed by clicking this link.
The presentation of the 2017 Miriam Hederman O’Brien prize awarded by the Foundation for Fiscal Studies will take place on the Monday 2nd October from 8:00 -9:30am in the Grafton Suite, The Westbury Hotel, Dublin 2.
The aim of the prize is to recognise outstanding original work from new contributors in the area of Irish fiscal policy, to promote the study and discussion of matters relating to fiscal, economic and social policy and to reward those who demonstrate exceptional research promise. The prize forms an important part of the Foundation’s overall objective of promoting more widely the study and discussion of matters relating to fiscal, economic and social policy.
The shortlisted papers are shown here and past winners here.
There will be tea / coffee from 8.00 as well as an opportunity to view stands promoting some of the work and applications nominated for the Award.
The event is free but please register in advance to email@example.com.
Revenue today published our Annual Report for 2016. The report itself contains a lot of interesting material on our activities and outputs last year. In addition, we have published research reports on Corporation Tax returns for 2015 and payments in 2016, the oil market in Ireland, our latest illicit tobacco survey results and a summary of lessons from the application of behavioural economics in Revenue. We have also updated our regular statistics on Local Property Tax.
[Post co-authored by Paul Kilgarriff and Tom McDermott]
This time last year Ireland was in the middle of its wettest winter on record [PDF]. A series of Atlantic Storms battered the country, beginning with Storm Desmond in early December, followed by Eva and Frank. Rainfall levels in some areas were up to 300% of normal levels. Extensive flooding around the country caused widespread damage – hundreds of homes and businesses were flooded, and thousands more were cut off by flood waters. In many places the floods did not recede until well into the new year.
Various impacts of the flooding are detailed in the recent report by the National Directorate for Fire and Emergency Management (NDFEM)[PDF]. Almost €1.8million in humanitarian assistance was paid out to affected households; close to €1m to farmers; local authorities received special funding of €18m for clean-up costs; while damage to the road network was estimated at over €100m. Aside from damages, the flooding also caused substantial disruptions to everyday life — 350,000 customers suffered disruptions to electricity supply, and 23,000 households were placed on boil water notices. The flooding also resulted in substantial travel disruptions – in particular as a result of flooding on the road network.
Continue reading “Counting the cost of last winter’s flooding: Evidence from disruptions to the road network”
[Attention conservation notice: Rampant self-promotion]
Irish economy readers might be interested in this work. Together with colleagues at the Bank of England we’ve built a model of financial balances for the United Kingdom. The basic question we’re trying to answer is: how can large open economies deal with persistent imbalances now and into the future? This is the first model of its kind for the UK and something we hope to build on in the future. We summarise the findings in this Bank Underground blog.