Understanding Countries’ Tax Effort

Marco Committeri and Carola Pessino

No 2013/244, IMF Working Papers from International Monetary Fund

Abstract: This paper presents a model to determine the tax effort and tax capacity of 113 countries and the main variables on which they depend. The results and the model allow a clear determination of which countries are near their tax capacity and which are some way from it, and therefore, could increase their tax revenue. This paper also determines central factors on which tax capacity depends: the level of development, trade, education, inflation, income distribution, corruption, and the ease of tax collection.

Keywords: WP; natural resource; tax effort; tax frontier; tax capacity; tax revenue; stochastic tax frontier; inefficiency; frontier model; institutional characteristic; country's tax effort; frontier tax function; descriptive statistics; estimated tax; tax frontier development; Natural resources; Income distribution; Corruption; Consumer price indexes; Asia and Pacific (search for similar items in EconPapers)
Pages: 30
Date: 2013-12-16
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Citations: View citations in EconPapers (36)

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