The literacy impact on tax revenues
AbstractThe paper investigates the relationship between tax revenues and literacy level, using a panel-model approach. The dataset covers the period 1996 to 2010 and includes 123 countries. The estimations suggest that the assumed function is nonlinear, with inverted-U and U-shaped curves. More precisely, a very low literacy level is associated with reduced tax revenues. Furthermore, the government inputs increase as the literacy level increases, reaching a maximum point. Beyond this level, the tax revenues decrease even if the literacy has an ascendant tendency, registering a minimum level. Finally, the tax revenues increase in a parallel manner with the literacy index. --
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Bibliographic InfoPaper provided by Kiel Institute for the World Economy in its series Economics Discussion Papers with number 2013-63.
Date of creation: 2013
Date of revision:
literacy; tax revenues; nonlinearity; effects; tax policy;
Find related papers by JEL classification:
- I20 - Health, Education, and Welfare - - Education - - - General
- H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-12-29 (All new papers)
- NEP-PBE-2013-12-29 (Public Economics)
- NEP-PUB-2013-12-29 (Public Finance)
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