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Jeetendra Khadan |
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''Long and short-run tax buoyancies in small states'' |
( 2020, Vol. 40 No.1 ) |
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This paper uses a recently developed and updated tax revenue dataset to estimate long- and short-run tax buoyancies for a group of 36 small states for the period 1993-2017. The main findings suggest that while buoyancies for aggregate tax revenues are relatively high, the long-run buoyancy for indirect taxes—which accounts for most tax revenues—is relatively lower than the buoyancy for direct taxes. Also, short-run buoyancies were found to be relatively low for both tax categories. It was found that the magnitude of the long-run buoyancy declined from the pre-crisis period to the post-crisis period, while short-run tax buoyancies have improved. |
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Keywords: tax buoyancy, panel cointegration, small states, fiscal policy |
JEL: E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General H2 - Taxation, Subsidies, and Revenue: General |
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Manuscript Received : Oct 14 2019 | | Manuscript Accepted : Mar 25 2020 |
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