IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this paper

Tax Revenue Implications of the Real Exchange Rate: Econometric Evidence from Korea and Mexico

Listed author(s):
  • Virginia Fierro
  • Helmut Reisen

The variety of channels through which devaluation of the exchange rate impacts on real tax receipts, calls for empirical clarification. This paper should be seen as a first attempt towards empirical evidence. It establishes the causal relationships between the real exchange rate and real tax receipts. A causality test rejects the hypothesis of unidirectional causality running from taxes to the exchange rate. The causal inferences from the Sims test allow to use the real exchange rate as an exogenous determinant in a simple simultaneous equation model. The model endogenises tax yields and tax bases to allow for a test of the significance and relevance of the exchange rate to explain variations in real tax receipts. An important insight results from the distinction of the direct (price) effect and indirect (output) effect of changes in the real exchange rate on tax receipts. A double-logarithmic version of the model with (seasonally adjusted) quarterly data is estimated for Korea and ... Les diverses voies par lesquelles la dévaluation du taux de change influe sur les recettes fiscales réelles demandent à être éclaircies au moyen de l'économètrie. Il convient de considérer le présent document comme une première tentative de démonstration économétrique. Il met en évidence les relations de causalité qui existent entre le taux de change réel et les recettes fiscales réelles. Un test de causalité conduit à rejeter l'hypothèse d'une relation unidirectionnelle traduisant une influence des impôts sur le taux de change. Les inférences causales du test de Sims autorisent à utiliser le taux de change réel comme déterminant exogène dans un modèle simple à équations simultanées. Le modèle endogénéise le produit et l'assiette de l'impôt de façon à permettre de tester la validité et le degré de signification d'une explication des variations des recettes fiscales réelles par le taux de change. La décomposition de l'effet des variations du taux de change réel sur les recettes ...

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:
Download Restriction: no

Paper provided by OECD Publishing in its series OECD Development Centre Working Papers with number 12.

in new window

Date of creation: 01 Feb 1990
Handle: RePEc:oec:devaaa:12-en
Contact details of provider: Postal:
2 rue Andre Pascal, 75775 Paris Cedex 16

Phone: 33-(0)-1-45 24 82 00
Fax: 33-(0)-1-45 24 85 00
Web page:

More information through EDIRC

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:oec:devaaa:12-en. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()

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.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 profile, as there may be some citations waiting for confirmation.

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

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.