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Structural Tax Reforms and Public Spending Efficiency
We empirically assess the effects of structural tax reforms on government spending efficiency in a sample of 18 OECD economies over the period 2006–2017. After calculating input spending efficiency scores, we evaluate in a panel setup the relevance for public sector efficiency of narrative tax chang...
Autores principales: | , , |
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Formato: | Online Artículo Texto |
Lenguaje: | English |
Publicado: |
Springer US
2021
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Materias: | |
Acceso en línea: | https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8629698/ http://dx.doi.org/10.1007/s11079-021-09644-4 |
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author | Afonso, António Jalles, João Tovar Venâncio, Ana |
author_facet | Afonso, António Jalles, João Tovar Venâncio, Ana |
author_sort | Afonso, António |
collection | PubMed |
description | We empirically assess the effects of structural tax reforms on government spending efficiency in a sample of 18 OECD economies over the period 2006–2017. After calculating input spending efficiency scores, we evaluate in a panel setup the relevance for public sector efficiency of narrative tax changes. We find that: i) input efficiency scores average around 0.6–07; ii) increases in tax rates, primarily for PIT, negatively affect public sector efficiency; iii) controlling for endogeneity, increases in tax rates are still associated with lower public sector efficiency, mainly for PIT and increases in tax bases improve public sector efficiency; vi) in expansionary periods, increasing the CIT base and reducing PIT rates, positively affect public sector efficiency; ix) in contrast, during recessions efficiency improves when PIT and VAT bases increase and the CIT rate increases. |
format | Online Article Text |
id | pubmed-8629698 |
institution | National Center for Biotechnology Information |
language | English |
publishDate | 2021 |
publisher | Springer US |
record_format | MEDLINE/PubMed |
spelling | pubmed-86296982021-11-30 Structural Tax Reforms and Public Spending Efficiency Afonso, António Jalles, João Tovar Venâncio, Ana Open Econ Rev Research Article We empirically assess the effects of structural tax reforms on government spending efficiency in a sample of 18 OECD economies over the period 2006–2017. After calculating input spending efficiency scores, we evaluate in a panel setup the relevance for public sector efficiency of narrative tax changes. We find that: i) input efficiency scores average around 0.6–07; ii) increases in tax rates, primarily for PIT, negatively affect public sector efficiency; iii) controlling for endogeneity, increases in tax rates are still associated with lower public sector efficiency, mainly for PIT and increases in tax bases improve public sector efficiency; vi) in expansionary periods, increasing the CIT base and reducing PIT rates, positively affect public sector efficiency; ix) in contrast, during recessions efficiency improves when PIT and VAT bases increase and the CIT rate increases. Springer US 2021-11-30 2021 /pmc/articles/PMC8629698/ http://dx.doi.org/10.1007/s11079-021-09644-4 Text en © The Author(s), under exclusive licence to Springer Science+Business Media, LLC, part of Springer Nature 2021 This article is made available via the PMC Open Access Subset for unrestricted research re-use and secondary analysis in any form or by any means with acknowledgement of the original source. These permissions are granted for the duration of the World Health Organization (WHO) declaration of COVID-19 as a global pandemic. |
spellingShingle | Research Article Afonso, António Jalles, João Tovar Venâncio, Ana Structural Tax Reforms and Public Spending Efficiency |
title | Structural Tax Reforms and Public Spending Efficiency |
title_full | Structural Tax Reforms and Public Spending Efficiency |
title_fullStr | Structural Tax Reforms and Public Spending Efficiency |
title_full_unstemmed | Structural Tax Reforms and Public Spending Efficiency |
title_short | Structural Tax Reforms and Public Spending Efficiency |
title_sort | structural tax reforms and public spending efficiency |
topic | Research Article |
url | https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8629698/ http://dx.doi.org/10.1007/s11079-021-09644-4 |
work_keys_str_mv | AT afonsoantonio structuraltaxreformsandpublicspendingefficiency AT jallesjoaotovar structuraltaxreformsandpublicspendingefficiency AT venancioana structuraltaxreformsandpublicspendingefficiency |