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Tax Potential and Tax Effort: An Empirical Estimation for Non-Resource Tax Revenue and VAT’s Revenue

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  • MAIMOUNA DIAKITE
  • Jean-François BRUN

Abstract

A better assessment of non-resource tax potential and VAT’s tax potential independently using a more appropriate model with knowledge of the shortcomings of the previous methods used. Generalized Least Squares Estimators and Stochastic frontier Models The results show that Low income countries have higher tax effort along the period compared to Lower-middle and Upper-middle income countries. They also suggest that inefficiency in taxation depends more on policy decisions than on tax administration performance.

Suggested Citation

  • MAIMOUNA DIAKITE & Jean-François BRUN, 2016. "Tax Potential and Tax Effort: An Empirical Estimation for Non-Resource Tax Revenue and VAT’s Revenue," EcoMod2016 9537, EcoMod.
    • Handle: RePEc:ekd:009007:9537
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    Cited by:

    1. Danuse Nerudova & Marian Dobranschi, 2019. "Alternative method to measure the VAT gap in the EU: Stochastic tax frontier model approach," PLOS ONE, Public Library of Science, vol. 14(1), pages 1-38, January.
    2. Avipsa Mohanty & Dinabandhu Sethi & Asit Ranjan Mohanty, 2022. "Does petroleum tax revenue drive sales tax effort of Indian states? A stochastic frontier approach," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 27(1), pages 1257-1268, January.
    3. Tandon, Suranjali & Rao, R. Kavita, 2019. "Frontier analysis for State Excise in India," Working Papers 19/276, National Institute of Public Finance and Policy.
    4. Basil Dalamagas & Panagiotis Palaios & Stefanos Tantos, 2019. "A New Approach to Measuring Tax Effort," Economies, MDPI, vol. 7(3), pages 1-25, August.
    5. Seydou Coulibaly, 2019. "Impact of natural resource wealth on non-resource tax revenue mobilization in Africa: Do institutions and economic diversification matter?," CERDI Working papers halshs-02108128, HAL.
    6. Emilie Caldeira & Alou Adessé Dama & Ali Compaoré & Mario Mansour & Grégoire Rota-Graziosi, 2020. "Tax effort in Sub-Saharan African countries : evidence from a new dataset," CERDI Working papers hal-02543162, HAL.
    7. Émilie Caldeira & Ali Compaore & Alou Adessé Dama & Mario Mansour & Grégoire Rota-Graziosi, 2019. "Effort fiscal en Afrique subsaharienne : les résultats d’une nouvelle base de données," Revue d’économie du développement, De Boeck Université, vol. 27(4), pages 5-51.
    8. Maïmouna Diakite & Jean-François Brun & Souleymane Diarra & Nasser Ary Tanimoune, 2017. "The effects of tax coordination on the tax revenue mobilization in West African Economic and Monetary Union (WAEMU)," CERDI Working papers halshs-01535104, HAL.
    9. Gustavo Canavire-Bacarreza & Maria Cecilia Deza & Osmel Manzano & Alejandro Puerta, 2021. "Revisiting tax effort in emerging markets," Public Finance Review, , vol. 49(6), pages 845-873, November.
    10. Rafael AGUIRRE UNCETA, 2018. "Niger : la Quête du Développement dans un Contexte Adverse," Working Papers P247, FERDI.

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    More about this item

    Keywords

    A large sample of developing countries ; Public finance and tax issues; Tax policy;
    All these keywords.

    JEL classification:

    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • C01 - Mathematical and Quantitative Methods - - General - - - Econometrics

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