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Efficiency evaluation and influencing factors analysis of fiscal and taxation policies: A method combining DEA-AHP and CD function

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Abstract

This paper combines the Cobb-Douglas (CD)with the method of Data Envelopment Analysis and Analytic Hierarchy Process(DEA-AHP) and applies it to the input efficiency evaluation of fiscal and taxation policies. Based on the input of the number of fiscal policy items and the output model design of transformation and upgrading, the overall efficiency of fiscal policy is calculated by the method of Data Envelopment Analysis and Analytic Hierarchy Process. It turns out that the overall efficiency of fiscal and taxation policies is 0.397, and the efficiency of pure policy factors is 0.616. There is a difference in input efficiency between preferential tax policies and fiscal subsidy policies. Tax preferential policy has insufficient investment, and financial subsidy has investment redundancy. Furthermore, the absolute value of tax incentives and financial subsidies are introduced into the CD Function to calculate the contribution rate, and the government and enterprise factors that are not effective in the efficiency of fiscal and taxation policies are attempted to be separated. As a result, it is found that the contribution rate of financial subsidies is weakly negatively correlated. It shows that the conversion rate of enterprises to the financial subsidy policy is low, and the tax preference policy has a better conversion rate. The results of the study reveal that the scope and intensity of tax optimization needs to be increased at the government level, and the utilization of fiscal subsidy policies needs to be improved at the enterprise level. The government should reduce financial subsidies and establish a universal tax preferential policy system.

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Acknowledgements

This study is the fruit of social science planning project in Zhejiang Province which is supported by ”Philosophy and Social Science Planning Project of Zhejiang [19NDJC007Z]”, “Zhejiang Provincial Soft Science Research Program [2021C35047]” and the National Natural Science Foundation of China [grant numbers 71874088]. I am very grateful to the anonymous reviewers for their comments, which are very helpful in the innovation and writing methods of the article. I would also like to thank the editor for his tolerance and appreciation for giving me a valuable opportunity to revise. These will help me improve my research and writing level.

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Authors and Affiliations

  1. College of Economics and Management, Nanjing University of Aeronautics and Astronautics, Nanjing, 21110, China

    Pengyue Wu, Jing Ma & Xiaoyu Guo

  2. College of Science and Technology, Ningbo University, Ningbo, 315300, China

    Pengyue Wu

  3. College of Finance and Information, Ningbo University of Finance and Economics, Ningbo, 315175, China

    Pengyue Wu

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  1. Pengyue Wu
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Correspondence to Jing Ma.

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Wu, P., Ma, J. & Guo, X. Efficiency evaluation and influencing factors analysis of fiscal and taxation policies: A method combining DEA-AHP and CD function. Ann Oper Res 309, 325–345 (2022). https://doi.org/10.1007/s10479-021-04194-x

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