Income Tax Revenue Elasticities in Spain: Individual and Aggregate Measures

John Creedy and Jose Felix Sanz-Sanz

No 1100, Department of Economics - Working Papers Series from The University of Melbourne

Abstract: This paper derives analytical expressions for the revenue elasticity of the Spanish personal income tax system, as applied to tax units and in aggregate. This is complicated by the schedular nature of the system, and the role of central and regional governments, along with the existence of a range of tax credits and eligible expenditures and deductions. Empirical estimates are obtained using a cross-sectional dataset which enables a number of important ancillary elasticities (relating to allowances and tax credits, and different income sources) to be estimated. It was found that there is considerable variation among tax units in the revenue elasticity, with highly (positively)skewed distributions. The nature of the distributions varies among regions of Spain, and the aggregate elasticities for each region were found to display some variation associated with income distribution differences. The national aggregate is found to be around 1.3.

Pages: 34 pages
Date: 2010
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://fbe.unimelb.edu.au/__data/assets/pdf_file/0020/801074/1100.pdf (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:mlb:wpaper:1100

Access Statistics for this paper

More papers in Department of Economics - Working Papers Series from The University of Melbourne Department of Economics, The University of Melbourne, 4th Floor, FBE Building, Level 4, 111 Barry Street. Victoria, 3010, Australia. Contact information at EDIRC.
Bibliographic data for series maintained by Dandapani Lokanathan ().