Cross-Country Evidence on the Revenue Impact of Tax Reforms

Abstract

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Beneficial impact of tax reforms on tax revenue performances in Togo: Myth or reality?

“…(2016) and Scartascini (2016) in Latin American countries and Amaglobeli et al. (2022) and Sheng (2022) in 21 advanced and emerging market economies.…”

“…These methods can be classified into two groups: econometric methods and microsimulation models on one hand and experimental or impact evaluation approaches on the other hand. Among the authors of the first group, can be mentioned Udezo and Onuora (2021) for Nigeria, Ndiaye (2019) for Senegal, Ouma (2019) for Kenya, Kim and Kim (2018) for Tanzania, Jordaan and Schoeman (2015) and Van Heerden (2014) for South Africa, Ayoki et al (2008) and Ogwapus (2008) in Uganda case, Von Haldenwang et al (2014) in Peru, Ahlerup et al (2015) and Bigsten (2015) for 47 sub-Saharan African countries, Focanti et al (2016) and Scartascini (2016) in Latin American countries and Amaglobeli et al (2022) and Sheng (2022) in 21 advanced and emerging market economies.…”

“…Our baseline estimates minimize problems of fiscal foresight (Leeper et al, 2013) by identifying tax policy changes based on the years in which these are announced. However, about 50 percent of all major tax changes are implemented in the years following the announcement or adoption year (Amaglobeli et al, 2022). Moreover, according to Von Haldenwang et al (2014), SARAs has three different phases in their life.…”

A Deep Dive into Tax Buoyancy: Comparing Estimation Techniques in a Large Heterogeneous Panel

“…In terms of the correlation between tax policy reforms and GDP, while empirical evidence is limited 18 , Vegh and Vuletin (2015) find that the conduct of tax rate reforms varies across countries over the economic cycle, with tax policy being broadly acyclical in industrial countries but largely procyclical in developing countries 19 . On the other hand, the correlation between tax policy reforms and tax revenues is debated and depends on several factors including the instrument adopted (Mertens and Ravn, 2013;Kawano and Slemrod, 2016;Amaglobeli et al, 2022) as well as behavioural responses to tax reforms affecting the tax base (Kleven and Schultz, 2014;Aarbu and Thoresen, 2001).…”

“…However, for the purpose of this study, we only consider PIT, VAT, and CIT. We adopt a similar approach to Gechert and Groß (2019) and Amaglobeli et al (2022), where we count the number of major tax base reforms implemented within a year but we introduce two dummy variables to account for tax base expansion and tax base narrowing. The tax base expansion dummy variable takes a value of 1 if there are more major tax base expansion reforms than major tax base narrowing reforms in a given year, and 0 otherwise.…”