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Impulse response function analysis of the impacts of land value‐added tax policy on government performance

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  • Day‐Yang Liu
  • Hsin‐Hsin Yao
  • Wen‐Min Lu
  • Cheng‐Hsien Lin

Abstract

In this study, an epsilon‐based network data envelopment analysis is employed to construct assessment mechanisms for government performance. Moreover, performance indicators of two dimensions of tax collection efficiency and financial effectiveness are measured. We propose a vector autoregression model in which all economic variables are regarded as dependent variables to address the disadvantages of traditional regression model. The conclusions are as follows: (a) measures of tax collection efficiency deteriorated, whereas those of financial effectiveness improved. (b) In an impulse response analysis of the model, an increase in government‐published land values produced significantly increased tax collection efficiency.

Suggested Citation

  • Day‐Yang Liu & Hsin‐Hsin Yao & Wen‐Min Lu & Cheng‐Hsien Lin, 2020. "Impulse response function analysis of the impacts of land value‐added tax policy on government performance," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 41(6), pages 1020-1032, September.
    • Handle: RePEc:wly:mgtdec:v:41:y:2020:i:6:p:1020-1032
    DOI: 10.1002/mde.3156
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