{
  "title": "How Buoyant is the Tax System? New Evidence from a Large Heterogeneous Panel",
  "publication": "IMF Working Papers, January 19, 2017",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2017/01/20/how-buoyant-is-the-tax-system-new-evidence-from-a-large-heterogeneous-panel-44551",
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  "summary": "In this paper we provide short- and long-run tax buoyancy estimates for 107 countries (distributed between advanced, emerging and low-income) for the period 1980–2014.",
  "sections": [
    {
      "heading": "Data and methods",
      "content": "- Sample: 107 countries (distributed between advanced, emerging and low-income)\n- Period: 1980–2014\n- Estimators: Fully-Modified OLS and (Pooled) Mean Group estimators\n- Model features: short- and long-run tax buoyancy estimates"
    },
    {
      "heading": "Principal findings",
      "content": "- For advanced economies both long-run and short-run buoyancies are not different from one.\n- Long run tax buoyancy exceeds one in the case of CIT for advanced economies, PIT and SSC in emerging markets, and TGS for low income countries.\n- In advanced countries (emerging market economies) CIT (CIT and TGS) buoyancy is larger during contractions than during times of economic expansions.\n- Both trade openness and human capital increase buoyancy while inflation and output volatility decrease it."
    },
    {
      "heading": "Key terms and subject coverage",
      "content": "- Subject: Corporate income tax, Emerging and frontier financial markets, Financial markets, Inflation, Personal income tax, Prices, Revenue administration, Taxes\n- Keywords: buoyancies help, buoyancy coefficient, buoyancy estimate, Corporate income tax, Emerging and frontier financial markets, error correction model, fiscal sustainability, Global, Inflation, Personal income tax, pooled mean group, recession, short vs long run, tax buoyancy, tax category, tax elasticity, tax revenue, WP"
    },
    {
      "heading": "Document scope",
      "content": "- Pages: 33\n- Main contribution: Cross-country evidence on short- and long-run tax buoyancy across tax categories and income groups, and identification of macroeconomic and structural drivers of buoyancy (trade openness, human capital, inflation, output volatility).\n\nPaolo Dudine and João Tovar Jalles, IMF Working Paper, January 19, 2017.\n\n---\n\n Content in this bundle\n\n- How Buoyant is the Tax System?\n  - How Buoyant is the Tax System? (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - How Buoyant is the Tax System? (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2017/01/20/how-buoyant-is-the-tax-system-new-evidence-from-a-large-heterogeneous-panel-44551"
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    "[Markdown version](/en/publications/wp/issues/2017/01/20/how-buoyant-is-the-tax-system-new-evidence-from-a-large-heterogeneous-panel-44551/index.md)",
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    "Authors: Paolo Dudine, João Tovar Jalles",
    "Published: January 19, 2017",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781475569797.001",
    "Sample: 107 countries (distributed between advanced, emerging and low-income)",
    "Period: 1980–2014",
    "Estimators: Fully-Modified OLS and (Pooled) Mean Group estimators",
    "Model features: short- and long-run tax buoyancy estimates",
    "For advanced economies both long-run and short-run buoyancies are not different from one.",
    "Long run tax buoyancy exceeds one in the case of CIT for advanced economies, PIT and SSC in emerging markets, and TGS for low income countries.",
    "In advanced countries (emerging market economies) CIT (CIT and TGS) buoyancy is larger during contractions than during times of economic expansions.",
    "Both trade openness and human capital increase buoyancy while inflation and output volatility decrease it.",
    "Subject: Corporate income tax, Emerging and frontier financial markets, Financial markets, Inflation, Personal income tax, Prices, Revenue administration, Taxes",
    "Keywords: buoyancies help, buoyancy coefficient, buoyancy estimate, Corporate income tax, Emerging and frontier financial markets, error correction model, fiscal sustainability, Global, Inflation, Personal income tax, pooled mean group, recession, short vs long run, tax buoyancy, tax category, tax elasticity, tax revenue, WP",
    "Pages: 33",
    "Main contribution: Cross-country evidence on short- and long-run tax buoyancy across tax categories and income groups, and identification of macroeconomic and structural drivers of buoyancy (trade openness, human capital, inflation, output volatility).",
    "**How Buoyant is the Tax System?**"
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