Tax Structure and Growth: How Robust is the Empirical Evidence?

Xing, Jing (2012) Tax Structure and Growth: How Robust is the Empirical Evidence? Economics Letters, 117 (1). pp. 379-382.

Abstract

This paper examines the link between the composition of tax revenues and the level of income per capita in the long run. The “tax and growth ranking” suggested by some recent empirical studies is not robust under different assumptions about heterogeneity across countries of the long-run and short-run coefficients in the underlying econometric model. Evidence for significant taxstructure effects depends on long-run parameter homogeneity restrictions, underlying pooled mean group estimation, which are found to be invalid.

Item Type: Article
Keywords: Tax structure; Income per capita; Pooled mean group estimator
Subject(s): Taxation
Centre: Oxford University Centre for Business Taxation
Date Deposited: 08 Aug 2012 13:53
Last Modified: 23 Oct 2015 14:07
URI: http://eureka.sbs.ox.ac.uk/id/eprint/3975

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