All Rights Reserved
AccessEcon LLC 2006, 2008.
Powered by MinhViet JSC
ralph lauren polo

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

  This abstract has been downloaded 1664 times                The Full PDF of this paper has been downloaded 149689 times