Alternativní stanovení jednotné sazby korporátní daně ve vybraných zemích EU pomocí analýzy obalu dat

Alternative Determination of a Corporate Tax Rate in Selected EU Countries by Using Data Envelopment Analysis

Lukáš Frýd

Politická ekonomie, 2017, vol. 2017, issue 6, 751-771

Abstract: This paper considers alternative approaches to the analysis of Laffer curve. The traditional analysis of Laffer curve is based on panel data methods, which were originally developed for microeconomics data with tax to GDP ratio as dependent variable. The main problem of using this approach presents the cross-sectional dependency of macroeconomics data, whose estimation may be biased and potentially inconsistent. The estimation of cross-sectional dependency using robust methods is inappropriate as well, because tax revenue is function of many variables, hence we lose too many degrees of freedom. We propose alternative approach with complex dependent variable, which measures not only tax to GDP ratio, but also effectiveness of corporate tax collection. The complex variable is constructed via DEA method and proposed approach is applied on panel containing observations of 20 EU members in period from 2000 to 2013. We conclude, that while the Laffer hypothesis is not empirically supported the tax rate is statistically significant factor in tax collection efficiency.

Keywords: data envelopment analysis (DEA); common correlated effects (CEE); Laffer curve; corporate tax; panel data; cluster analyses (search for similar items in EconPapers)
JEL-codes: C33 D24 H20 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://polek.vse.cz/doi/10.18267/j.polek.1173.html (text/html)
http://polek.vse.cz/doi/10.18267/j.polek.1173.pdf (application/pdf)
free of charge

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:prg:jnlpol:v:2017:y:2017:i:6:id:1173:p:751-771

Ordering information: This journal article can be ordered from
Redakce Politické ekonomie, Vysoká škola ekonomická, nám. W. Churchilla 4, 130 67 Praha 3
http://polek.vse.cz

DOI: 10.18267/j.polek.1173

Access Statistics for this article

Politická ekonomie is currently edited by Jiřina Bulisová

More articles in Politická ekonomie from Prague University of Economics and Business Contact information at EDIRC.
Bibliographic data for series maintained by Stanislav Vojir ().