State Institutions and Tax Capacity : an Empirical Investigation of Causality /

State Institutions and Tax Capacity : an Empirical Investigation of Causality /

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Bibliographic Details
Author / Creator:	Akanbi, Olusegun Ayodele, author.
Imprint:	[Washington, D.C.] : International Monetary Fund, [2019] ©2019
Description:	1 online resource (38 pages)
Language:	English
Series:	IMF Working Paper ; WP/19/177 IMF working paper ; WP/19/177.
Subject:	Tax administration and procedure. Tax exemption. Tax revenue estimating. Taxation -- Rates and tables. Taxation. Taxes Tax administration and procedure. Tax exemption. Tax revenue estimating. Taxation -- Rates and tables. Taxation.
Format:	E-Resource Book
URL for this record:	http://pi.lib.uchicago.edu/1001/cat/bib/12510352

Hidden Bibliographic Details
Other authors / contributors:	International Monetary Fund, issuing body.
ISBN:	1513509861 1513511556 9781513509860 9781513511559
Notes:	Print version record.
Summary:	Would better state institutions increase tax collection, or would higher tax collection help improve state institutions? In the absence of conclusive guidance from theory, this paper searches for an empirical answer to this question, using a panel dataset covering 110 non-resource-rich countries from 1996 to 2017. Employing a panel vector error correction model, the paper finds that tax capacity and state institutions cause and reinforce each other for a wide range of country groups. The bi-directional causality results suggest that developing tax capacity and building state institutions need to go hand in hand for best results, particularly in developing countries. Based on the impulse response analyses, the paper also finds that the causal effects in advanced economies are generally low in both directions, while in developing countries, both tax capacity and institutions shocks have larger positive impacts on institutions and tax capacity, respectively.
Other form:	Print version: Akanbi, Olusegun Ayodele. State Institutions and Tax Capacity: An Empirical Investigation of Causality. Washington, D.C. : International Monetary Fund, 2019 9781513509860
Standard no.:	10.5089/9781513509860.001

Description
Summary:	Would better state institutions increase tax collection, or would higher tax collection help improve state institutions? In the absence of conclusive guidance from theory, this paper searches for an empirical answer to this question, using a panel dataset covering 110 non-resource-rich countries from 1996 to 2017. Employing a panel vector error correction model, the paper finds that tax capacity and state institutions cause and reinforce each other for a wide range of country groups. The bi-directional causality results suggest that developing tax capacity and building state institutions need to go hand in hand for best results, particularly in developing countries. Based on the impulse response analyses, the paper also finds that the causal effects in advanced economies are generally low in both directions, while in developing countries, both tax capacity and institutions shocks have larger positive impacts on institutions and tax capacity, respectively.
Physical Description:	1 online resource (38 pages)
ISBN:	1513509861 1513511556 9781513509860 9781513511559