Tax Capacity and Growth : Is there a Tipping Point? /

Is there a minimum tax to GDP ratio associated with a significant acceleration in the process of growth and development? We give an empirical answer to this question by investigating the existence of a tipping point in tax-to-GDP levels. We use two separate databases: a novel contemporary database c...

Szczegółowa specyfikacja

Opis bibliograficzny
1. autor: Gaspar, Vitor
Kolejni autorzy: Jaramillo, Laura, Wingender, Philippe
Format: Czasopismo
Język:English
Wydane: Washington, D.C. : International Monetary Fund, 2016.
Seria:IMF Working Papers; Working Paper ; No. 2016/234
Dostęp online:Full text available on IMF
Opis
Streszczenie:Is there a minimum tax to GDP ratio associated with a significant acceleration in the process of growth and development? We give an empirical answer to this question by investigating the existence of a tipping point in tax-to-GDP levels. We use two separate databases: a novel contemporary database covering 139 countries from 1965 to 2011 and a historical database for 30 advanced economies from 1800 to 1980. We find that the answer to the question is yes. Estimated tipping points are similar at about 12 3/4 percent of GDP. For the contemporary dataset we find that a country just above the threshold will have GDP per capita 7.5 percent larger, after 10 years. The effect is tightly estimated and economically large.
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Opis fizyczny:1 online resource (40 pages)
Format:Mode of access: Internet
ISSN:1018-5941
Ograniczenie dostępu:Electronic access restricted to authorized BRAC University faculty, staff and students