IDEAS home Printed from https://ideas.repec.org/p/hal/journl/hal-01449926.html

Indirect Taxes, Social Expenditures and Poverty: What Linkage?

Author

Listed:
  • Fatih Karanfil

    (EconomiX - EconomiX - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique)

  • Ata Ozkaya

Abstract

We shed light into the empirical relationship between social expenditures and poverty for Turkey over the period 1975-2005. We estimate first a series for the headcount index which is not exactly known due to measurement problems in countries such as Turkey, where the degree of unrecorded economy is higher. For this purpose, employing Kalman filter technique, we use social expenditures, public income and interest payments in our model. Then, cointegration analysis is used to investigate the relationship between the estimated headcount index and the share of indirect taxes in the total tax income. The study concludes that: first, the portion of poor population increases and it reaches 17.6 percent in 2005; second, social expenditures increase thanks to the rise in public income which is realized by the relative increase in the share of indirect taxes in total tax revenues. This policy impedes in the long run poverty reduction; and third, the increase in this share leads to a higher headcount index.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Fatih Karanfil & Ata Ozkaya, 2013. "Indirect Taxes, Social Expenditures and Poverty: What Linkage?," Post-Print hal-01449926, HAL.
    • Handle: RePEc:hal:journl:hal-01449926
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a
    for a similarly titled item that would be available.

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bagis, Bilal & Yumurtaci, Aynur, 2020. "Welfare Perceptions of the Youth: A Turkish Case Study," GLO Discussion Paper Series 671, Global Labor Organization (GLO).
    2. Maryam Akmal & Sanjeev Gupta & João Tovar Jalles, 2020. "Tax Revenue Reforms and Income Distribution in Developing Countries," Policy Papers 175b, Center for Global Development.
    3. Gupta, Sanjeev & Jalles, João Tovar, 2022. "Do tax reforms affect income distribution? Evidence from developing countries," Economic Modelling, Elsevier, vol. 110(C).

    More about this item

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:journl:hal-01449926. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.