An instrumental variables approach to estimating tax revenue elasticities: Evidence from Sub-Saharan Africa
AbstractThis paper exploits the significant response of real GDP growth of Sub-Saharan African countries to exogenous international commodity price and rainfall shocks to construct instrumental variables estimates of the tax revenue elasticity IV estimates yield that a 1% increase in GDP increases tax revenues by up to 2.5%.
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of Development Economics.
Volume (Year): 98 (2012)
Issue (Month): 2 ()
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Web page: http://www.elsevier.com/locate/devec
Tax revenues; Growth; Instrumental variables;
Find related papers by JEL classification:
- E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
- H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
- H60 - Public Economics - - National Budget, Deficit, and Debt - - - General
- O55 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Africa
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