Tax structure and growth: How robust is the empirical evidence?

Jing Xing

Economics Letters, 2012, vol. 117, issue 1, 379-382

Abstract: This paper examines the link between the composition of tax revenues and the level of income per capita in the long run. I find that the “tax and growth ranking” suggested by some recent empirical studies is not robust under different assumptions about heterogeneity across countries of the long-run and short-run coefficients in the underlying econometric model. Evidence for significant tax structure effects depends on long-run parameter homogeneity restrictions, underlying pooled mean group estimation, which are found to be invalid.

Keywords: Tax structure; Income per capita; Pooled mean group estimator (search for similar items in EconPapers)
JEL-codes: E62 H25 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (58)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:117:y:2012:i:1:p:379-382

DOI: 10.1016/j.econlet.2012.05.054

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