Thomas A. Anastassiou scite author profile

This study examines the relationship between tax revenues and the rate of economic growth for Greece. The viewpoint that the low ratio of direct to indirect taxation promotes high economic growth has been a main subject for discussion. However, not many papers have attempted to test the above hypothesis. One of the main problems that researchers are facing is the lack of time series data over a sufficiently long period. This brings out particular problems when testing for unit roots and cointegration between time series of the variables used. In this study, we try to analyse the relationship between total tax revenues, income tax and tax on capital gains, gross domestic saving and the rate of economic growth. In order to find this relationship, annual data from 1965 until 2002 and causality analysis are used. The findings have shown that there exists causal relationship between tax revenues and economic growth in Greece.

Are Tax Incentive Provisions Always Operative? Evidence From The Greek Manufacturing Industry

2011

JABR

Tax incentives have been provided in many countries with the ultimate goal of making the cost of capital cheaper and thus enabling the development process through the increase of investment expenditures. The study of the role of tax incentives in investment spending has been made possible through the use of the neoclassical theory of optimum capital accumulation. This theory has been used in this article to indicate that incentive provisions may not always be operative at the margin, and thus having no effect in  the formulation of the value of depreciation allowances and further on the value of the implicit rental price of capital. Variations in the value of the user cost of capital can make an investment project cheaper or more expensive in relation to various time periods. This could not be proved for the case of Greece.

A dividend function for Greek manufacturing

2007

PurposeIn this article an attempt is made to measure the amount of dividends allocated each year to shareholders in the large scale Greek manufacturing (establishments employing more than ten people).Design/methodology/approachThe construction of a dividend function is made and the factors affecting dividend distribution in Greece are discussed.FindingsWhile the original model provides for the effect of dividend taxation parameters – in addition to income considerations – in payout decisions, it is finally proved that a company's income is the sole main determinant of dividend distribution in Greek manufacturing.Originality/valueThe equilibrium income elasticity is found very close to one which indicates that dividends in Greece are proportional to profits.

Tax Incentive Provisions And The User Cost Of Capital: The Case Of Greece

2011

JABR

According to the neoclassical framework the quantitative influence of tax policy measures on capital spending is exercised through the parameters that define the desired stock of capital and more specifically through the user cost determinant (c). A tax-adjusted user cost expression is formulated and time series of user cost are calculated using the usual tax parameters (like depreciation allowances, tax credits, investment grants, investment allowances and the like) that are incorporated in the value of c and which have been taken from the Greek tax incentive structure. The test of fiscal parameters on investment was made for the two kinds of capital assets, equipment and structures, since expenditure on these two comprise on average an almost 85 per cent of total manufacturing investment in Greece. What the research showed for the period under investigation was that c, the cost of capital variable, was not affected much by tax provisions, and in its turn could not affect decisively the desired level of capital stock and thus the amount of net investment.(JEL: E62)

Marginal Effective Tax Rates And Tax Incentive Structure Evaluation: The Case Of Greece

2011

JABR

In addition to the neoclassical theory of investment choice, another way of evaluating a tax incentive structure is through the use of marginal effective tax rates. An attempt is made at present to provide estimates of these rates for Greece, and the research concentrates mainly to the calculation of marginal effective corporate tax rates (i.e. only corporate taxes are considered) while the construction of indices extends to the two categories of capital goods, equipment, and buildings. The theoretical background for constructing these indices is given, with special emphasis attributed to neutrality in the designing of efficient taxation systems. The research showed that the Greek tax incentive system is depressing marginal investments, while it is additionally found that there was a more favorable tax treatment of manufacturing investment in equipment than that of buildings. No attempt on recent formulations of the Greek incentive system was made to provide measures (as for example a net investment credit) that could produce some degree of tax neutrality.