The sinful side of taxation: is it possible to satisfy the government hunger for revenues while promoting economic growth?

José Alves

No 2018/57, Working Papers REM from ISEG - Lisbon School of Economics and Management, REM, Universidade de Lisboa

Abstract: In this study we try to evaluate both linear and non-linear relationships between each tax item and real per capita growth. Our analysis, conducted for all the OECD countries between 1980 and 2015 and by resorting to panel data techniques in a short and long-term basis, evidences tax items threshold values for all tax components (except for taxes on individual income). In particular, for long-run economic performance, we obtain optimal threshold values for social security contributions between 7.0% and 12.43%. Lastly, our results provide some conclusions, highlighting the raise of some taxes, in GDP terms, without harming economic growth evolution.

Keywords: Economic Growth; Tax systems; Fiscal Policy; Optimal taxation (search for similar items in EconPapers)
JEL-codes: E62 H21 O47 (search for similar items in EconPapers)
Date: 2018-11
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:

Downloads: (external link)
https://rem.rc.iseg.ulisboa.pt/wps/pdf/REM_WP_057_2018.pdf (application/pdf)

Related works:
Journal Article: The Sinful Side of Taxation: Is it Possible to Satisfy the Government Hunger for Revenues While Promoting Economic Growth? (2021)
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:ise:remwps:wp0572018

Access Statistics for this paper

More papers in Working Papers REM from ISEG - Lisbon School of Economics and Management, REM, Universidade de Lisboa ISEG - Lisbon School of Economics and Management, REM, R. Miguel Lupi, 20, LISBON, PORTUGAL.
Bibliographic data for series maintained by Sandra Araújo ().