Persistence in Tax Revenues: Evidence from Some OECD Countries

Guglielmo Maria Caporale, Silvia García Tapia () and Luis Gil-Alana
Additional contact information
Silvia García Tapia: University of Navarra

Journal of Quantitative Economics, 2024, vol. 22, issue 2, No 9, 475-491

Abstract: Abstract This paper examines persistence in tax revenues in a set of 21 OECD countries over the period 1965–2021 using long-range dependence techniques based on fractional integration. The results imply that there are only a few cases of mean reversion: one for total revenue (Switzerland); three for VAT (Belgium, Italy, and Spain), and six for tax on income (Austria, Belgium, Finland, Spain, Sweden and USA). The analysis is also carried out for inflation in the same set of countries. Again the I(1) hypothesis cannot be rejected in most cases, mean reversion only occurring in Korea, Iceland, Norway and Sweden. However, stronger evidence of mean reversion is found for the differences between the three original tax series and inflation compared to the tax series themselves, which points to the existence of a linkage between taxation and inflation, especially in the case of VAT and tax on income.

Keywords: Revenues; Taxes; Persistence; Fractional integration; Long memory (search for similar items in EconPapers)
JEL-codes: C13 C22 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s40953-024-00386-x Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
Working Paper: Persistence in Tax Revenues: Evidence from Some OECD Countries (2023)
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:spr:jqecon:v:22:y:2024:i:2:d:10.1007_s40953-024-00386-x

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/40953

DOI: 10.1007/s40953-024-00386-x

Access Statistics for this article

Journal of Quantitative Economics is currently edited by Dilip Nachane and P.G. Babu

More articles in Journal of Quantitative Economics from Springer, The Indian Econometric Society (TIES) Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().