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A Note on Estimating Tax Elasticities


  • Pronab Sen



The most popular technique for estimating tax elasticities is the “Proportional Adjustment†method. This paper shows that the standard methodology used will almost invariably lead to biased elasticity estimates, and proposes an alternative methodology which avoids this problem. [WP]

Suggested Citation

  • Pronab Sen, 2009. "A Note on Estimating Tax Elasticities," Working Papers id:2328, eSocialSciences.
  • Handle: RePEc:ess:wpaper:id:2328
    Note: Institutional Papers

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    References listed on IDEAS

    1. Sunil Mani, 2010. "Financing of industrial innovations in India: how effective are tax incentives for R&D?," International Journal of Technological Learning, Innovation and Development, Inderscience Enterprises Ltd, vol. 3(2), pages 109-131.
    2. Sunil Mani, 2008. "Financing of industrial innovations in India How effective are tax incentives for R & D?," Centre for Development Studies, Trivendrum Working Papers 405, Centre for Development Studies, Trivendrum, India.
    3. Hrushikesh Mallick, 2008. "Do remittances impact the economy? Some empirical evidences from a developing economy," Centre for Development Studies, Trivendrum Working Papers 407, Centre for Development Studies, Trivendrum, India.
    4. Udaya S. Mishra & William Joe & Priyajit Samaiyar, 2009. "Migration and Urban Poverty in India Some Preliminary Observations," Working Papers id:2287, eSocialSciences.
    5. Katrak, Homi, 2002. "Does economic liberalisation endanger indigenous technological developments?: An analysis of the Indian experience," Research Policy, Elsevier, vol. 31(1), pages 19-30, January.
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    More about this item


    tax; elsticities; adjustment; propotional; elasticity; tax base; tax revenue; constant rate structure; methodology; developing countries; data; budget estmates;

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