"Tax ratios in macroeconomics: Do taxes really mater?
In various empirical studies so-called tax ratios (tax revenues expressed as a ratio of some aggregate tax base) are employed as approximations for tax burdens. The most difficult problem in calculating tax ratios is the way in which personal income tax revenues are attributed to labor and capital. We argue that the methodology of Mendoza et al. (1994) is seriously flawed in this respect. Using information from national sources, we calculate more accurate tax ratios for eight OECD countries that differ substantially from those of Mendoza et al. (1997) and which are also differently related to various economic variables.
|Date of creation:||2001|
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- Enrique G. Mendoza & Linda L. Tesar, 1995.
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"On the ineffectiveness of tax policy in altering long-run growth: Harberger's superneutrality conjecture,"
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- Razin, Assaf & Sadka, Efraim & Swagel, Phillip, 2002.
"Tax burden and migration: a political economy theory and evidence,"
Journal of Public Economics,
Elsevier, vol. 85(2), pages 167-190, August.
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"Growth Effects of Government Expenditure and Taxation in Rich Countries,"
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"The International Ramifications of Tax Reforms: Supply-Side Economics in a Global Economy,"
American Economic Review,
American Economic Association, vol. 88(1), pages 226-45, March.
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