Tax Ratios in Macroeconomics: Do Taxes Really Matter?
AbstractIn various empirical studies so-called tax ratios (tax revenues expressed as a ratio of some aggregate tax base) are employed as approximations for tax burdens. The most difficult problem in calculating tax ratios is the way in which personal income tax revenues are attributed to labor and capital. We argue that the methodology of Mendoza et al. (1994) is seriously flawed in this respect. Using information from national sources, we calculate more accurate tax ratios for eight OECD countries that differ substantially from those of Mendoza et al. (1997) and which are also differently related to various economic variables.
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Bibliographic InfoArticle provided by Springer in its journal Empirica.
Volume (Year): 29 (2002)
Issue (Month): 3 (September)
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Web page: http://www.springerlink.com/link.asp?id=100261
Tax ratios; implicit tax rates; average effective tax rates; economic growth; unemployment;
Other versions of this item:
- Bjorn Volkerink & Jan-Egbert Sturm & Jakob de Haan, 2001. ""Tax ratios in macroeconomics: Do taxes really mater?," European Economy Group Working Papers 7, European Economy Group.
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