TY - JOUR
T1 - Does inequality impact tax collection? : evidence from ACI (ASEAN-China-India) economies
AU - Gangopadhyay, Partha
AU - Jain, Siddharth
N1 - Publisher Copyright:
© 2022, eJournal of Tax Research.All Rights Reserved.
PY - 2022
Y1 - 2022
N2 - This study examines the short-run and the long-run relationships between inequalities – measured by the (income) Gini coefficient – and taxes, using a panel of ten selected Asian countries from 1993 to 2015. After testing for the applicability of several econometric models of the panel Autoregressive Distributed Lag (ARDL) methodology, we choose the Pooled Mean Group (PMG) estimator to find that an increase in income Gini increases the tax-GDP ratio for the ACI economies in the long run. However, we also note that the income Gini has no (statistically significant) effect on taxes in the short run. The chain of causality is found to run from income inequalities to taxes and not from taxes to inequalities.
AB - This study examines the short-run and the long-run relationships between inequalities – measured by the (income) Gini coefficient – and taxes, using a panel of ten selected Asian countries from 1993 to 2015. After testing for the applicability of several econometric models of the panel Autoregressive Distributed Lag (ARDL) methodology, we choose the Pooled Mean Group (PMG) estimator to find that an increase in income Gini increases the tax-GDP ratio for the ACI economies in the long run. However, we also note that the income Gini has no (statistically significant) effect on taxes in the short run. The chain of causality is found to run from income inequalities to taxes and not from taxes to inequalities.
UR - https://hdl.handle.net/1959.7/uws:69260
UR - https://www.proquest.com/scholarly-journals/does-inequality-impact-tax-collection-evidence/docview/2770621270/se-2?accountid=36155
M3 - Article
SN - 1448-2398
VL - 20
SP - 5
EP - 21
JO - eJournal of Tax Research
JF - eJournal of Tax Research
IS - 1
ER -
