Tax capacity and growth in the Asia-Pacific region

Bibliographic Data

ID12549351
AuthorsJoão T Jalles (0000-0002-7171-5076, ISEG/UL, University of Lisbon, Lisbon, Portugal, corresponding author)
Year2020
Volume26
Issue3
Pages527-551
Publication date2020-06-29
Peer ReviewedYes
Open AccessNo
TypeARTICLE
VenueJournal of the Asia Pacific Economy (JOURNAL)
Journal identifiersISSN: 1354-7860 • E-ISSN: 1469-9648
PublisherRoutledge (PUBLISHER • GB)
DOI10.1080/13547860.2020.1773598
OpenAlexW3040250558
LanguageEN
References cited34

In this paper, we estimate short- and long-term tax buoyancy for 30 Asian-Pacific countries during 1980–2017 using recent panel techniques. Using Mean Group estimators, we found that the short-run buoyancy is statistically not different from one, while the long-run buoyancy is statistically larger than one. In 11 out of 30 countries, growth has improved fiscal sustainability over time, while in only 4 out of 30 countries the tax system has acted as a good automatic stabilizer. Results are robust to the estimation with alternative estimators, the inclusion of inflation and tax rates. We uncovered that buoyancies increased in magnitude and significance over time. Lastly, resorting to nonlinear estimations of short-run buoyancies contingent on the phase of the business cycle, we find that buoyancy is generally larger during recessions

Buoyancy · Business cycle · Econometrics · Economics · Estimator · Fiscal policy · Fiscal sustainability · Inflation (cosmology · Macroeconomics · Monetary economics · Recession · Statistics · Tax revenue · Fiscal Policies and Political Economy · Fiscal Policy and Economic Growth · Mathematics · Taxation and Compliance Studies

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