|
| |
| Guido Wolswijk |
| |
| ''The short- and long-run tax revenue response to changes in tax bases'' |
| ( 2009, Vol. 29 No.3 ) |
| |
| |
| This paper examines the short- and long-run behavior of tax receipts with
regard to their tax bases. In addition, the possibility of asymmetries in tax responses is
explicitly included. The methodology is applied to the three main tax categories in the
Netherlands for the period 1971-2005, after removing effects from discretionary
measures. The outcomes indicate that short-term elasticities can deviate markedly
from long-term ones. Furthermore, short-term elasticities tend to be smaller in less
favorable circumstances. Ignoring such differences between various elasticity
measures may contribute to adverse revenue surprises.
|
| |
| |
| Keywords: Tax revenue, income elasticity, fiscal indicators, The Netherlands |
JEL: H2 - Taxation, Subsidies, and Revenue: General
H6 - National Budget, Deficit, and Debt: General |
| |
| Manuscript Received : Feb 16 2009 | | Manuscript Accepted : Aug 17 2009 |
|
