Tax structure for consumption and income inequality: an empirical assessment
José Alves and
Antonio Afonso
SERIEs: Journal of the Spanish Economic Association, 2019, vol. 10, issue 3, No 6, 337-364
Abstract:
Abstract In this study, we assess the relationship between several tax items and consumption and income inequality levels. For OECD countries between 1980 and 2015, we use panel data techniques and find tax threshold values regarding inequality levels and consumption. In particular, we obtain threshold values for social security contributions between 9.50 and 11.80% (of GDP), for long-run consumptions, while to promote a reduction in income inequalities we found a 15.51% share of social security contributions over GDP, in both short- and long-term perspectives. Lastly, our results would support higher taxes on firms, in GDP terms, to decrease income inequalities, although that might hamper aggregate consumption.
Keywords: Income inequality; Consumption; Tax thresholds (search for similar items in EconPapers)
JEL-codes: D63 E21 H21 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)
Downloads: (external link)
http://link.springer.com/10.1007/s13209-019-00202-3 Abstract (text/html)
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:spr:series:v:10:y:2019:i:3:d:10.1007_s13209-019-00202-3
Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/13209
DOI: 10.1007/s13209-019-00202-3
Access Statistics for this article
SERIEs: Journal of the Spanish Economic Association is currently edited by Nezih Guner
More articles in SERIEs: Journal of the Spanish Economic Association from Springer, Spanish Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().