Original article Public Economics

Tax buoyancy of the EU-28 countries – a comparative analysis

Martina Yakova - South-West University "Neofit Rilski"
Received: 07 Jun 2022
Revised:
Published:
Downloads: 0
Citations: 0
Issue 5/2019
JEL H24 H25 H63 H29 H30
DOI https://doi.org/10.56497/etj1964503

Abstract

Empirical evidence of tax buoyancy is presented as an assessment of the effectiveness of the tax system. The buoyancy analysis aims to track whether tax revenues follow economic growth and at what rate. The survey includes the EU-28 countries, with data divided into three panels: consumer, hybrid and income tax systems. The time period from 1999 to 2015 is covered. An autoregressive distributed lag model is used in order to establish that in the hybrid tax system the short-term and long-term tax buoyancy is the highest, meaning that this type of tax system is the most effective and marks the highest increase in economic growth.

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