Growth and Volatility of Tax Revenues in Latin America

Fricke, Hans; Süßmuth, Bernd

doi:10.2139/ssrn.1752117

Cited by 3 publications

References 2 publications

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Tax Capacity and Tax Effort: Extended Cross-Country Analysis from 1994 to 2009

Le¹,

Moreno-Dodson²,

Bayraktar³

2012

Policy Research Working Papers

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One of the important factors for economic development is the existence of an effective tax system. The paper, which is the second part of Le, Moreno-Dodson, and Rojchaichaninthorn (2008), deals with the concept and empirical estimation of countries' taxable capacity and tax effort to develop further country tax effort typologies. It employs a cross-country study from a sample of 110 developing and developed countries during 1994-2009. Taxable capacity refers to the predicted tax to gross domestic product ratio that can be estimated with the regression, taking into account a country's specific macroeconomic, demographic, and institutional features. Tax effort is defined as an index of the ratio between the share of the actual tax collection in gross domestic product and the predicted taxable capacity. The use of tax effort and actual tax collection benchmarks allows us to rank countries into four different groups: low tax collection, low tax effort; high tax collection, high tax effort; low tax collection, high tax effort; and high tax collection, low tax effort. This classification is based on the benchmark of the global average of tax collection and a tax effort index. The analysis provides guidance for tax reforms in countries with various levels of tax collection and tax effort.

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Tax Capacity and Tax Effort: Extended Cross-Country Analysis from 1994 to 2009

Le¹,

Moreno-Dodson²,

Bayraktar³

2012

Policy Research Working Papers

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Estimating Dynamic Tax Revenue Elasticities for Germany

Koester

Priesmeier

2012

SSRN Journal

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Tax Revenues and Tax Efforts across the World

Bayraktar

Moreno-Dodson

2016

Handbook of Research on Public Finance in Europe and the MENA Region

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This chapter focuses on the concept and empirical estimation of tax effort around the world. It employs a cross-country study from a sample of 121, developing and developed countries during 1994-2012. Predicted tax revenue of a country is estimated empirically taking into account its specific economic, demographic, and institutional features and is considered as an approximation of its taxable capacity. Tax effort is then defined as the ratio between the share of the actual tax collection and the predicted tax revenue. The use of tax effort and actual tax revenue collection allows us to rank countries into four different groups. The results vary per country and region but, overall, tax revenue collection appears to be in line with its predicted value. This could reflect many efforts undertaken in the last decades to improve tax policy and tax administration. It also suggests that further improvements in domestic revenue mobilization may require other non-tax reforms aimed at removing economic, demographic and institutional constraints hindering tax revenue performance.

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Growth and Volatility of Tax Revenues in Latin America

Cited by 3 publications

References 2 publications

Tax Capacity and Tax Effort: Extended Cross-Country Analysis from 1994 to 2009

Tax Capacity and Tax Effort: Extended Cross-Country Analysis from 1994 to 2009

Estimating Dynamic Tax Revenue Elasticities for Germany

Tax Revenues and Tax Efforts across the World

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