Tax Revenue Elasticities Corrected for Policy Changes in the EU

Gilles Mourre and Savina Princen

No 5657, CESifo Working Paper Series from CESifo

Abstract: This paper investigates how tax revenue elasticities develop with respect to their tax base and analyses the specific impact of the business cycle. The main novelty of the paper is to use revenue data net of discretionary tax measures. Based on an EU country panel for the period 2001-13, we estimate short-term and long-term revenue elasticities for different revenue categories. Then, we add different indicators of the business cycle to test its specific influence on the short-term dynamics of revenue-to-base elasticities. A specific impact of the business cycle is found for all revenue categories, except for consumption taxes.

Keywords: fiscal policy; budget balance; revenue elasticity; cyclical adjustment; tax measures (search for similar items in EconPapers)
JEL-codes: E32 H20 H30 H60 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

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Working Paper: Tax Revenue Elasticities Corrected for Policy Changes in the EU (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_5657

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