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Growth†Friendly Tax Structures: An Indicator†Based Approach

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  • Florian Wöhlbier
  • Caterina Astarita
  • Gilles Mourre

Abstract

This paper designs a horizontal indicator†based assessment methodology aimed at identifying those EU countries presenting a potential need and scope for shifting taxation away from labour to other tax bases less detrimental to growth. The assessment methodology, as a first step, selects a set of indicators measuring specific aspects of tax policy. Subsequently, for each individual indicator, performance thresholds are calculated based on a benchmarking approach. Finally, a screening algorithm based on commonly accepted findings from the relevant economic literature is used to assess the overall performance of a country in two policy areas, namely the need for a tax shift and the scope for it. Various robustness checks are performed.

Suggested Citation

  • Florian Wöhlbier & Caterina Astarita & Gilles Mourre, 2018. "Growth†Friendly Tax Structures: An Indicator†Based Approach," German Economic Review, Verein für Socialpolitik, vol. 19(1), pages 32-73, February.
    • Handle: RePEc:bla:germec:v:19:y:2018:i:1:p:32-73
    DOI: 10.1111/geer.12116
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    References listed on IDEAS

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    Cited by:

    1. Strohner, Ludwig & Berger, Johannes & Thomas, Tobias, 2018. "Sekt oder Selters? Ökonomische Folgen der Reformzurückhaltung bei der Beendigung des Solidaritätszuschlags," DICE Ordnungspolitische Perspektiven 98, Heinrich Heine University Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
    2. Alessandra Cepparulo & Gilles Mourre, 2020. "How and How Much? The Growth-Friendliness of Public Spending through the Lens," European Economy - Discussion Papers 132, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    3. Julio López Laborda & Carmen Marín González & Jorge Onrubia, 2018. "Tipo reducido, superreducido y exenciones en el IVA: una estimación de sus efectos recaudatorios y distributivos a partir de las encuestas de hogares," Studies on the Spanish Economy eee2018-23, FEDEA.

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