Tax Capacity and Growth : : Is there a Tipping Point? / / Vitor Gaspar, Laura Jaramillo, Philippe Wingender

• Record Nr.: UNINA9910155202703321
• Autore: Gaspar Vitor
• Pubbl/distr/stampa: Washington, D.C. : , : International Monetary Fund, , 2016
• ISBN: 1-4755-5833-3; 1-4755-5835-X
• Descrizione fisica: 1 online resource (41 pages) : illustrations (some color)
• Collana: IMF Working Papers
• Altri autori (Persone): JaramilloLaura; WingenderPhilippe
• Soggetti: Taxation - United States; Econometrics; Public Finance; Taxation; Structure, Scope, and Performance of Government; Tax Evasion and Avoidance; Economic Development: General; Institutions and Growth; Taxation, Subsidies, and Revenue: General; Personal Income and Other Nonbusiness Taxes and Subsidies; National Government Expenditures and Related Policies: Infrastructures; Other Public Investment and Capital Stock; Truncated and Censored Models; Switching Regression Models; Threshold Regression Models; Public finance & taxation; Welfare & benefit systems; Econometrics & economic statistics; Revenue administration; Social security contributions; Legal support in revenue administration; Public investment spending; Threshold analysis; Taxes; Expenditure; Econometric analysis; Revenue; Social security; Public investments; United States Economic conditions; United States
• Lingua di pubblicazione: Inglese
• Formato: Materiale a stampa
• Livello bibliografico: Monografia
• Nota di bibliografia: Includes bibliographical references.
• Sommario/riassunto: Is there a minimum tax to GDP ratio associated with a significant acceleration in the process of growth and development? We give an empirical answer to this question by investigating the existence of a tipping point in tax-to-GDP levels. We use two separate databases: a novel contemporary database covering 139 countries from 1965 to 2011 and a historical database for 30 advanced economies from 1800 to 1980. We find that the answer to the question is yes. Estimated tipping points are similar at about 12¾ percent of GDP. For the contemporary dataset we find that a country just above the threshold will have GDP per capita 7.5 percent larger, after 10 years. The effect is tightly estimated and economically large.