Tax Structure and Growth: Are Some Taxes Better Than Others?
Using pooled cross-sectional data from 23 OECD countries, between 1965 and 1990, I find evidence that the tax structure affects economic growth. Specifically, the proportion of tax revenue raised by taxing personal income has a negative correlation with economic growth. This result is robust to a rigorous sensitivity analysis, where I control for other plausible growth determinants in a systematic manner. Also, there is some empirical evidence that tax progressivity, measured in terms of the long-run income elasticity of tax revenue, is associated with low economic growth. Copyright 2001 by Kluwer Academic Publishers
Year of publication: |
2001
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Authors: | Widmalm, Frida |
Published in: |
Public Choice. - Springer. - Vol. 107.2001, 3-4, p. 199-219
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Publisher: |
Springer |
Saved in:
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