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

Pengyue Wu, Jing Ma () and Xiaoyu Guo
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Pengyue Wu: Nanjing University of Aeronautics and Astronautics
Jing Ma: Nanjing University of Aeronautics and Astronautics
Xiaoyu Guo: Nanjing University of Aeronautics and Astronautics

Annals of Operations Research, 2022, vol. 309, issue 1, No 15, 325-345

Abstract: 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.

Keywords: Fiscal and taxation policies; DEA; AHP; CD function; Transformation and upgrading (search for similar items in EconPapers)
Date: 2022
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DOI: 10.1007/s10479-021-04194-x

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