Dimensions of tax burden: a review on OECD countries

Ferdi Celikay

Journal of Economics, Finance and Administrative Science, 2020, vol. 25, issue 49, 27-43

Abstract: Purpose – The tax burden, defined as the ratio of the collected taxes in a particular period against the total product, is commonly used to determine the effect of fiscal and tax policies on the socioeconomic structure. The purpose of this study is to examine how the changes in some macroeconomic indicators affect the tax burden. Design/methodology/approach – System generalized method of moments approach is used for 34 Organisation for Economic Co-operation and Development (OECD) members in the period of 1993-2016. Findings – Based on the research findings, variables such as income per capita, foreign trading volume, the capacity of employment, unemployment and economic share of industry sector effect tax burden in a statistically significant and positive direction. The reason that lies behind the positive effect of unemployment on tax burden is the fact that the sense of social state is not abandoned. Thus, it is predicted that the state will increase public transfer expenditures in the short term due to unemployment, this increase will impose a financial burden on the public sector both in the medium and long term and finally, there will be an increase in the tax burden.

Keywords: Public economics; Taxation; Tax burden; System generalized method of moments approach; OECD countries (search for similar items in EconPapers)
JEL-codes: E24 H20 N16 N30 N40 N46 O23 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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Journal Article: Dimensions of tax burden: a review on OECD countries (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:ris:joefas:0155

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