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Tax Collection Lags and the Revenue-Maximising Inflation: The Case of Greece

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  • Christodoulakis, Nicos M

Abstract

When tax payments take place with a considerable time lag, inflation erodes part of their real value, and this loss may be comparable or even surpass the well-known gains from seigniorage. The paper finds that for the economy of Greece, a reduction of inflation will actually raise the total sum of tax collection and seigniorage, thus easing and not aggravating the debt-accumulation process.

Suggested Citation

  • Christodoulakis, Nicos M, 1994. "Tax Collection Lags and the Revenue-Maximising Inflation: The Case of Greece," Empirical Economics, Springer, vol. 19(3), pages 329-342.
    • Handle: RePEc:spr:empeco:v:19:y:1994:i:3:p:329-42
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    Cited by:

    1. Spyros Skouras & Nicos Christodoulakis, 2011. "Electoral Misgovernance Cycles: Evidence from wildfires and tax evasion in Greece and elsewhere," GreeSE – Hellenic Observatory Papers on Greece and Southeast Europe 47, Hellenic Observatory, LSE.
    2. Spyros Skouras & Nicos Christodoulakis, 2014. "Electoral misgovernance cycles: evidence from wildfires and tax evasion in Greece," Public Choice, Springer, vol. 159(3), pages 533-559, June.

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