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The literacy impact on tax revenues

Author

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  • Mutascu, Mihai
  • Danuletiu, Dan

Abstract

The 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.

Suggested Citation

  • Mutascu, Mihai & Danuletiu, Dan, 2013. "The literacy impact on tax revenues," Economics Discussion Papers 2013-63, Kiel Institute for the World Economy (IfW Kiel).
    • Handle: RePEc:zbw:ifwedp:201363
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    References listed on IDEAS

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    Cited by:

    1. Purwanto, Purwanto, 2020. "The Analysis of Corporate Taxpayer Compliance and Its Implication to Self-Assessment System Implementation," International Journal of Economics Development Research (IJEDR), Research and Intellectual Development Foundation, vol. 1(3), pages 213-224, December.
    2. Lawyer Chukwumah Obara & Efeeloo Nangih, 2017. "Tax Compliance Barriers and Internally Generated Revenue in Nigeria: Empirical from Small and Medium Enterprises in Portharcourt Metropolis," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 7(4), pages 169-176, October.
    3. Balamatsias, Pavlos, 2018. "Democracy and government spending," MPRA Paper 84975, University Library of Munich, Germany.

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    More about this item

    Keywords

    literacy; tax revenues; nonlinearity; effects; tax policy;
    All these keywords.

    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

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