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Tax performance: a comparative study
Author(s) -
Teera Joweria M.,
Hudson John
Publication year - 2004
Publication title -
journal of international development
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.533
H-Index - 66
eISSN - 1099-1328
pISSN - 0954-1748
DOI - 10.1002/jid.1113
Subject(s) - economics , tax evasion , public economics , index (typography) , tax revenue , econometrics , indirect tax , ad valorem tax , value added tax , tax reform , computer science , world wide web
This paper seeks to analyse tax performance across countries, utilizing what Musgrave (1969) referred to as the stochastic approach, where tax performance is analysed by comparisons with the average performance. The regression approach to tax performance assessment is used and a tax effort index is constructed. Among the variables that are identified to be important determinants of tax shares is a measure of tax evasion. The tax effort indices obtained show that generally the upper middle‐income and high‐income OECD groups are making better use of their tax bases to increase revenue. There are also economies of scale with respect to population density. Copyright © 2004 John Wiley & Sons, Ltd.