Understanding Countries’ Tax Effort

By Ricardo Fenochietto, Carola Pessino. Social Science Research Network, 2013

168 citations recorded by the source corpus.

This paper presents a model to determine the tax effort and tax capacity of 113 countries and the main variables on which they depend. The results and the model allow a clear determination of which countries are near their tax capacity and which are some way from it, and therefore, could increase their tax revenue. This paper also determines central factors on which tax capacity depends: the level of development, trade, education, inflation, income distribution, corruption, and the ease of tax collection.

Subfields: Economics and Econometrics, Political Science and International Relations

View Paper: https://www.semanticscholar.org/paper/73501fbed879fc9f019df4848173a0d6f6fefd8d