Tax Policy and Economic Growth: Does It Really Matter?

Donatella Baiardi, Paola Profeta, Riccardo Puglisi and Simona Scabrosetti

No 6343, CESifo Working Paper Series from CESifo

Abstract: We challenge the “OECD view” (Arnold et al. 2011) according to which a shift from direct to indirect taxation is associated with higher long-run economic growth. We study the relationships between per capita GDP, overall tax revenue and tax composition (in particular direct vs. indirect taxation). We can replicate the findings in Arnold et al. when focusing on the same sample of countries and time period, but not when adopting more cautious estimates of the standard errors. The results are not robust to adding countries and/or extending the time period under consideration. They also differ in the short- and long-run.

Keywords: economic growth; taxation; tax mix; OECD countries (search for similar items in EconPapers)
JEL-codes: E62 H20 P50 (search for similar items in EconPapers)
Date: 2017
New Economics Papers: this item is included in nep-mac and nep-pbe
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (14)

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Related works:
Journal Article: Tax policy and economic growth: does it really matter? (2019)
Working Paper: Tax Policy and Economic Growth: Does It Really Matter? (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_6343

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