Implications of tax policy for innovation and aggregate productivity growth

Ferraro, Domenico; Ghazi, Soroush; Peretto, Pietro F.

doi:10.1016/j.euroecorev.2020.103590

Cited by 17 publications

(4 citation statements)

References 43 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Lin and Jia (2019) indicate that the conditions, growth rate, and structure of an economy have implications on the revenue level and tax structure. Ferraro et al (2020) highlight that a central issue in macroeconomics is how taxes affect the growth rate of the economy. Fatehin and Sjoquist (2020) determine the importance of tax policy implications on state economic growth.…”

Section: Literature Reviewmentioning

confidence: 99%

Modeling Tax Revenue Determinants: The Case of Visegrad Group Countries

Đurović Todorović,

Đorđević,

Mirović

et al. 2024

Economies

View full text Add to dashboard Cite

This article provides panel data estimations of the tax revenue determinants in VG (Visegrad Group) countries (the Czech Republic, Hungary, Poland, and Slovakia) for the period 1994–2023. The aim of this research was to determine how the macroeconomic determinants affect the tax revenues in the selected countries. Within the static models, the Hausman test showed that the FE (fixed effects) model is appropriate and reflects the significant effects of the gross domestic product, population, inflation, unemployment, import, government revenue, government expenditure, and EU enlargement on the tax revenue. The PMG (Pooled Mean Group) model is an adequate model among the dynamic models and manifests the significant effect of the lagged value of the tax revenue. In the short term, growth of the gross domestic product and population by 1% causes higher changes in the tax revenue of 0.14% and 2.93%. Likewise, growth of the inflation rate by 1% decreases the tax revenue by 0.037%, which is higher than in the long term. Further, the results show that EU enlargement is significant for tax revenue in the short term, as well as in the long term. In the long term, unemployment has a greater significant effect on tax revenue, where 1% growth decreases the tax revenue by 0.15%. In contrast, government revenue is significant for tax revenue only in the long term, where 1% growth increases the tax revenue by 0.77%.

show abstract

Section: Literature Reviewmentioning

confidence: 99%

Modeling Tax Revenue Determinants: The Case of Visegrad Group Countries

Đurović Todorović,

Đorđević,

Mirović

et al. 2024

Economies

View full text Add to dashboard Cite

show abstract

“…(2017), Jaimovich and Rebelo (2017), Chu and Cozzi (2018), Ferraro et al . (2020) and Chu et al . (2021).…”

Section: Introductionmentioning

confidence: 96%

“…Most traditional theories on the nexus between taxes and growth, or taxes and investment, such as the influential papers of Summers (1981) and King and Rebelo (1990), focus only on tangible investment. More recent theories focusing explicitly on the key growth drivers, such as human capital and R&D, include Peretto (2003Peretto ( , 2007Peretto ( , 2011, Chen et al (2017), Jaimovich and Rebelo (2017), Chu and Cozzi (2018), Ferraro et al (2020) and Chu et al (2021).…”

Section: Introductionmentioning

confidence: 99%

The long‐run investment effect of taxation in OECD countries

2022

View full text Add to dashboard Cite

The gradually changing nature of production and the move away from tangible investment towards intangible investment over the past century suggest that the effects of the tax structure on investment need to be reassessed. To address this issue, we establish an endogenous growth model in which investment in tangible assets, R&D and education are influenced by different types of taxes. We test the long‐run implications of the model using annual data for 21 OECD countries over the period 1890–2015. We find that corporate income taxes reduce investment in tangible assets and R&D. However, while personal income taxes reduce investment in tertiary education, they enhance investment in R&D. Thus a revenue‐neutral switch from corporate to personal income taxes is growth enhancing.

show abstract

“…There is a strong body of evidence showing that physical accumulation of capital and labor supply, as key factors in economic development (Piketty et al, 2019), are important channels through which taxation policy impacts the economy and influences its growth . Tax rates on capital gains, dividends, labor income and corporate income have significant effects on innovative investments and thereby on aggregate labor productivity and TFP growth (Ferraro et al, 2020).…”

Section: Introductionmentioning

confidence: 99%

Dynamics of innovation and taxation in 8 EU ex-communist countries

et al. 2021

View full text Add to dashboard Cite

Research background: Even if they have a similar background, the ex-communist countries in Europe have started since the ‘90s to differentiate socially and economically one from another. Nowadays, the differences between them are significant in many aspects of the socio-economic environment, including innovation. Measurements done by Cornell University, INSEAD, and WIPO through the Global Innovation Index and some researchers compared the achievements from the last 30 years of the ex-communist countries in terms of innovation. Although innovation may be under the influence of multiple factors, some authors suggest that taxation has a major role. Purpose of the article: The purpose of the article is identifying a potential link between the dynamics of innovation and the dynamics of taxation in 8 ex-communist EU countries in the context of globalization, and to describe the way the globalization and taxation together fostered or suppressed the innovation. Methods: We will do a comparative analysis, comparing the taxation and the innovation input and output indicators - regulatory environment, education, general infrastructure, credit, investment, knowledge workers, knowledge creation, knowledge impact, online creativity, intangible assets. Findings & Value added: This paper may add value to the economic and taxation policies in the ex-communist countries by identifying the policies that proved their effectiveness in increasing innovation rates, policies that can be adapted and then adopted by the ex-communist countries that are less innovative.

show abstract

Implications of tax policy for innovation and aggregate productivity growth

Cited by 17 publications

References 43 publications

Modeling Tax Revenue Determinants: The Case of Visegrad Group Countries

Modeling Tax Revenue Determinants: The Case of Visegrad Group Countries

The long‐run investment effect of taxation in OECD countries

Dynamics of innovation and taxation in 8 EU ex-communist countries

Contact Info

Product

Resources

About