The literacy impact on tax revenues

Mihai Mutascu and Dan Dănuleţiu

No 2013-63, Economics Discussion Papers from Kiel Institute for the World Economy

Abstract: The paper investigates the relationship between tax revenues and literacy level, using a panel-model approach. The dataset covers the period 1996 to 2010 and includes 123 countries. The estimations suggest that the assumed function is nonlinear, with inverted-U and U-shaped curves. More precisely, a very low literacy level is associated with reduced tax revenues. Furthermore, the government inputs increase as the literacy level increases, reaching a maximum point. Beyond this level, the tax revenues decrease even if the literacy has an ascendant tendency, registering a minimum level. Finally, the tax revenues increase in a parallel manner with the literacy index.

Keywords: literacy; tax revenues; nonlinearity; effects; tax policy (search for similar items in EconPapers)
JEL-codes: C23 H20 I20 (search for similar items in EconPapers)
Date: 2013
New Economics Papers: this item is included in nep-pbe and nep-pub
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:zbw:ifwedp:201363

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