European Parliament Library

Tax Revenue Response to the Business Cycle, Cemile Sancak, Jing Xing, Ricardo Velloso

This paper examines tax revenue during the business cycle by estimating the relationship between tax revenue efficiency and the output gap. We find a positive and significant relationship between these variables; results are consistent for quarterly and annual data, and across advanced and developing economies. We also find that a worsening (improvement) in the VAT C-efficiency is driven by shifts in consumption patterns and changes in tax evasion during contractions (expansions). A key implication is that, particularly during major economic booms and downturns, policy makers should look beyond simple, long-run revenue elasticities and incorporate into their analysis the effects of the economic cycle on tax revenue efficiency
Table Of Contents
Cover Page; Title Page; Copyright Page; Contents; A Model for Tax Revenue Efficiency; A Model for Tax Revenue Elasticity; IX. Concluding Remarks; VIII. Estimation Results for VAT Revenue Elasticity; VII. Estimation Results for PIT and SSC Efficiency; VI. Estimation Results for VAT C-efficiency; V. Methodology; IV. Data; III. Literature Review; II. Stylized Facts; I. Introduction; Footnote
Literary Form
non fiction
"March 2010"
Physical Description
1 online resource (45 p.)
Specific Material Designation
Form Of Item

Library Locations

  • EP Library Luxembourg

    Rue du Fort Thüngen, Luxembourg, L-1313, LU
  • EP Library Strasbourg

    7 Place Adrien Zeller, Allée du Printemps, Strasbourg, F-67070, FR
  • EP Library Brussels

    60 rue Wiertz, Brussels, B-1047, BE