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This paper examines persistence in tax revenues in a set of 21 OECD countries over the period 1965-2021 using long-range dependence techniques based on fractional integration. The results imply that there are only a few cases of mean reversion: one for total revenue (Switzerland); three for VAT...
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doctors, and too many lawyers. If the total tax rate is kept constant, then replacing part of existing wage taxes with … graduate taxes, collected also from migrants, would improve efficiency. It could even allow for a Pareto-improvement. …
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