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Public Choice

, Volume 107, Issue 3–4, pp 199–219 | Cite as

Tax Structure and Growth: Are Some Taxes Better Than Others?

  • Frida Widmalm
Article

Abstract

Using pooled cross-sectional data from 23 OECD countries, between1965 and 1990, I find evidence that the tax structure affectseconomic growth. Specifically, the proportion of tax revenueraised by taxing personal income has a negative correlation witheconomic growth. This result is robust to a rigorous sensitivityanalysis, where I control for other plausible growth determinantsin a systematic manner. Also, there is some empirical evidencethat tax progressivity, measured in terms of the long-run incomeelasticity of tax revenue, is associated with low economicgrowth.

Keywords

Negative Correlation Public Finance OECD Country Personal Income 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Kluwer Academic Publishers 2001

Authors and Affiliations

  • Frida Widmalm
    • 1
  1. 1.Department of EconomicsUppsala UniversityUppsalaSweden

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