Estabilidad política y tributación

Taxation and political stability

Fernando Estrada, Mihai Mutascu and Aviral Tiwari

MPRA Paper from University Library of Munich, Germany

Abstract: The present study is, in particular, an attempt to test the relationship between tax level and political stability by using some economic control variables and to see the relationship among government effectiveness, corruption, and GDP. For the purpose, we used the Vector Autoregression (VAR) approach in the panel framework, using a country-level panel data from 59 countries for the period 2002 to 2008. The salient features of this model are: (a) simplicity is based on a limited number of variables (five) are categorical or continuous and not dependent on complex interactions or nonlinear effects. (b) accuracy: a low level of errors, the model achieves a high percentage of accuracy in distinguishing countries with inclination to political instability, compared to countries with political stability, (c) generality: the model allows to distinguish types of political instability, both resulting from acts of violence and failure of democracies to show, and (d) novelty: the model incorporates a tool that helps evaluate and exclude many variables used by the conventional literature. This approach is mainly based on the recognition of state structures and the relations between elites and parties.

Keywords: Taxation; Political Stability; Connection; Effects; Panel VAR analysis (search for similar items in EconPapers)
JEL-codes: A12 B22 B23 B41 C02 C23 C33 C53 C70 C72 C93 D53 D70 D72 E02 E17 E62 E63 H20 N10 O50 (search for similar items in EconPapers)
Date: 2011-07-25
New Economics Papers: this item is included in nep-acc, nep-mac and nep-pbe
References: View references in EconPapers View complete reference list from CitEc
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https://mpra.ub.uni-muenchen.de/32414/1/MPRA_paper_32414.pdf original version (application/pdf)
https://mpra.ub.uni-muenchen.de/59857/1/MPRA_paper_32414.pdf revised version (application/pdf)
https://mpra.ub.uni-muenchen.de/61207/1/MPRA_paper_32414.pdf revised version (application/pdf)

Related works:
Working Paper: Estabilidad política y tributación (2013)
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