Tax Design in the OECD: A Test of the Hines-Summers Hypothesis
AbstractThis paper investigates the effects of economic size and trade openness on tax design in the OECD. Using data for 30 OECD countries over the 1965–2007 period, we test the recently proposed Hines-Summers  Hypothesis, according to which the smaller the size and the greater the openness of the economy, the more it will rely on expenditure taxes and the less on income taxes. Our findings show that the Hines-Summers Hypothesis can claim broad, statistically significant, and robust empirical support in the OECD data sets we examined.
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Bibliographic InfoArticle provided by Palgrave Macmillan in its journal Eastern Economic Journal.
Volume (Year): 37 (2011)
Issue (Month): 2 ()
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Other versions of this item:
- Furceri, Davide & Karras, Georgios, 2010. "Tax Design in the OECD: A test of the Hines-Summers Hypothesis," MPRA Paper 23358, University Library of Munich, Germany.
- H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
- E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General
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