 Effects of inflation tax versus Tanzi effect on the real value of tax revenues: Evidence from TurkeyIşıl Akgül and
Mustafa Kemal Beşer
Iktisat Isletme ve Finans, 2011, vol. 26, issue 298, 45-66 Abstract: The paper analyzes the effects of inflation on real tax revenues by relying on empirical findings. Real tax revenues are obtained by dealing with the two adverse impacts of inflation including the inflation tax increasing the revenues and the Tanzi effect reducing the overall income. Bootstrap VAR models are performed to carry out the short term relationship between inflation and real tax revenues. Bootstrap techniques are preferred to overcome the small sample data problem. Major findings, unlike the expectations with respect to Tanzi effect, show that inflation positively affects the real tax revenues. The impact of the inflation, taken as some sort of hidden tax, is visibly stronger during the period between 1987 and 2005. In addition, the performances of the analytical method and the bootstrap methods are compared, resulting in a better performance in the estimates by bootstrapping. Keywords: Real tax revenue; inflation; bootstrap. (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:iif:iifjrn:v:26:y:2011:i:298:p:45-66 Ordering information: This journal article can be ordered from Access Statistics for this article Iktisat Isletme ve Finans is currently edited by Ali Bilge More articles in Iktisat Isletme ve Finans from Bilgesel Yayincilik |
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