The Sinful Side of Taxation: Is it Possible to Satisfy the Government Hunger for Revenues While Promoting Economic Growth?

José Alves

Hacienda Pública Española / Review of Public Economics, 2021, vol. 237, issue 2, 85-109

Abstract: This study evaluates both linear and non-linear relationships between individual taxes’ revenues and real per capita growth. The analysis is carried out for all the OECD countries over the period 1980-2015, using panel data techniques to assess the short –and long– run effects of taxation on economic growth. With the exception of taxes on individual income, we fnd evidences of non-linear relationships between other sources of taxation and economic growth, which consequently supports the existence of the optimisation in GDP terms of threshold values between economic growth and tax components’ revenues. In summary, the results provide a certain degree of support regarding the application of a policy focused on raising certain taxes, expressed as a percentage of GDP, without harming economic growth

Keywords: Economic growth; Tax systems; Fiscal policy; Optimal taxation (search for similar items in EconPapers)
JEL-codes: E62 H21 O47 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://hpe-rpe.org/wp-admin/admin-ajax.php?juwpfi ... eff1bdf046&preview=1 (application/pdf)

Related works:
Working Paper: The sinful side of taxation: is it possible to satisfy the government hunger for revenues while promoting economic growth? (2018)
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:hpe:journl:y:2021:v:237:i:2:p:85-109

Access Statistics for this article

More articles in Hacienda Pública Española / Review of Public Economics from IEF Contact information at EDIRC.
Bibliographic data for series maintained by Miguel Gómez de Antonio ().