Estimating Ireland’s Tax Elasticities: a Policy-Adjusted Approach

Niall Conroy

The Economic and Social Review, 2020, vol. 51, issue 2, 241-274

Abstract: This paper estimates tax elasticities for Ireland. We compile a new dataset on tax policy changes in Ireland. This allows us to use policy-adjusted revenue when estimating tax elasticities. This gives us a cleaner estimate of the relationship between government revenue and its economic drivers. We find that income tax elasticity estimates are significantly above one when policy-adjusted revenue is used, as opposed to significantly below one when unadjusted revenue is used. This highlights the importance of using policy-adjusted revenue when estimating elasticities. We also estimate elasticities of Pay Related Social Insurance and Value-Added Tax, which have previously received little attention in the Irish literature.

Keywords: tax policy; policy-adjusted revenue; Ireland (search for similar items in EconPapers)
Date: 2020
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://www.esr.ie/article/view/1443/276 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eso:journl:v:51:y:2020:i:2:p:241-274

Access Statistics for this article

More articles in The Economic and Social Review from Economic and Social Studies
Bibliographic data for series maintained by Aedin Doris ().