Determining Countries' Tax Effort

By Carola Pessino, Ricardo Fenochietto. 2010

150 citations recorded by the source corpus.

This paper presents a model to determine the tax effort and tax capacity of 96 countries and the main variables from which they depend. The results and the model allow us to clearly determine which countries are near their tax capacity and which are some way from it, and therefore, could increase their tax revenue.Our study corroborates previous analysis inasmuch as the positive and significant relationship between tax revenue as percent of GDP and the level of development (per capita GDP), trade (imports and exports as percent of GDP) and education (public expenditure on education as percent of GDP). The study also demonstrates the negative relationship between tax revenue and inflation (CPI), income distribution (GINI coefficient), the ease of tax collection (agricultural sector value added as GDP percent), and corruption.

View Paper: https://www.semanticscholar.org/paper/052ba46cced47a0068ff30e3c56cdebb67ac9e7e

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

Citations in the corpus

Taxing Immovable Property Revenue Potential and Implementation Challenges (2013, background): “15 The data deficiencies referred to above do not allow empirical estimation of tax capacity for property taxes, defined as potential tax collections—or the tax ‘frontier’—in individual countries as determined by a variety of structural attributes (see Pessino and Fenochietto, 2010).”
Determinants of tax revenue in OECD countries over the period 2001–2011 (2014, background): “Some studies have explored the effect of social variables such as the educational level, measured by public expenditure on education or illiteracy rate (Pessino and Fenochietto, 2010; Piancastelli, 2001) and population growth (Bahl and Wallace, 2005).”