IDEAS home Printed from https://ideas.repec.org/a/bla/germec/v19y2018i1p32-73.html
   My bibliography  Save this article

Growth†Friendly Tax Structures: An Indicator†Based Approach

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/geer.12116
    Download Restriction: no
    File URL: https://libkey.io/10.1111/geer.12116?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Abdullah, Sabah & Morley, Bruce, 2014. "Environmental taxes and economic growth: Evidence from panel causality tests," Energy Economics, Elsevier, vol. 42(C), pages 27-33.
    2. Mr. Santiago Acosta Ormaechea, 2012. "Tax Composition and Growth: A Broad Cross-Country Perspective," IMF Working Papers 2012/257, International Monetary Fund.
    3. European Commission, 2011. "Tax Reforms in EU Member States 2011: tax policy challenges for economic growth and fiscal sustainability," Taxation Papers 28, Directorate General Taxation and Customs Union, European Commission.
    4. European Commission, 2014. "Tax reforms in EU Member States - 2014 Report," Taxation Papers 48, Directorate General Taxation and Customs Union, European Commission.
    5. Doris Prammer, 2011. "Quality of taxation and the crisis: Tax shifts from a growth perspective," Taxation Papers 29, Directorate General Taxation and Customs Union, European Commission.
    6. European Commission, 2015. "Tax reforms in EU Member States - 2015 Report," Taxation Papers 58, Directorate General Taxation and Customs Union, European Commission.
    7. Günter Coenen & Christopher J. Erceg & Charles Freedman & Davide Furceri & Michael Kumhof & René Lalonde & Douglas Laxton & Jesper Lindé & Annabelle Mourougane & Dirk Muir & Susanna Mursula & Carlos d, 2012. "Effects of Fiscal Stimulus in Structural Models," American Economic Journal: Macroeconomics, American Economic Association, vol. 4(1), pages 22-68, January.
    8. Xing, Jing, 2012. "Tax structure and growth: How robust is the empirical evidence?," Economics Letters, Elsevier, vol. 117(1), pages 379-382.
    9. Gilles Mourre, 2013. "Tax Policy Challenges in EU Countries: A Few Lessons from the 2012 Commission Tax Reform Report and the European Semester," The Economic and Social Review, Economic and Social Studies, vol. 44(4), pages 489-510.
    10. Jens Matthias Arnold, 2008. "Do Tax Structures Affect Aggregate Economic Growth?: Empirical Evidence from a Panel of OECD Countries," OECD Economics Department Working Papers 643, OECD Publishing.
    11. Jens Matthias Arnold & Bert Brys & Christopher Heady & Åsa Johansson & Cyrille Schwellnus & Laura Vartia, 2011. "Tax Policy for Economic Recovery and Growth," Economic Journal, Royal Economic Society, vol. 121(550), pages 59-80, February.
    12. Savina Princen & Gilles Mourre, 2013. "The role of tax policy in times of fiscal consolidation," European Economy - Economic Papers 2008 - 2015 502, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    13. European Commission, 2013. "Tax reforms in EU Member States - Tax policy challenges for economic growth and fiscal sustainability – 2013 Report," Taxation Papers 38, Directorate General Taxation and Customs Union, European Commission.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Strohner Ludwig & Berger Johannes & Thomas Tobias, 2018. "Sekt oder Selters? – Ökonomische Folgen der Reformzurückhaltung bei der Beendigung des Solidaritätszuschlags," Perspektiven der Wirtschaftspolitik, De Gruyter, vol. 19(4), pages 313-330, December.
    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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mura Petru-Ovidiu, 2015. "Tax Composition And Economic Growth. A Panel-Model Approach For Eastern Europe," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 1, pages 89-101, February.
    2. European Commission, 2013. "Tax reforms in EU Member States - Tax policy challenges for economic growth and fiscal sustainability – 2013 Report," Taxation Papers 38, Directorate General Taxation and Customs Union, European Commission.
    3. Milena Mathé & Gaetan Nicodeme & Savino Rua, 2015. "Tax shifts," Taxation Papers 59, Directorate General Taxation and Customs Union, European Commission.
    4. Florian Wöhlbier & Caterina Astarita & Gilles Mourre, 2014. "Consolidation on the revenue side and growth-friendly tax structures: an indicator based approach," European Economy - Economic Papers 2008 - 2015 513, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    5. Stähler, Nikolai, 2019. "Who benefits from using property taxes to finance a labor tax wedge reduction?," Journal of Housing Economics, Elsevier, vol. 46(C).
    6. Donatella Baiardi & Paola Profeta & Riccardo Puglisi & Simona Scabrosetti, 2019. "Tax policy and economic growth: does it really matter?," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 26(2), pages 282-316, April.
    7. Gilles Mourre, 2013. "Tax Policy Challenges in EU Countries: A Few Lessons from the 2012 Commission Tax Reform Report and the European Semester," The Economic and Social Review, Economic and Social Studies, vol. 44(4), pages 489-510.
    8. Jürgen Janger & Julia Bock-Schappelwein & Michael Böheim & Ulrike Famira-Mühlberger & Thomas Horvath & Daniela Kletzan-Slamanig & Stefan Schönfelder & Margit Schratzenstaller & Maria M. Hofmarcher-Hol, 2014. "Monitoring of Austria's Efforts Within the Europe 2020 Strategy. Update 2013-14," WIFO Studies, WIFO, number 47415.
    9. José Alves, 2021. "The Sinful Side of Taxation: Is it Possible to Satisfy the Government Hunger for Revenues While Promoting Economic Growth?," Hacienda Pública Española / Review of Public Economics, IEF, vol. 237(2), pages 85-109, June.
    10. Jürgen Janger & Julia Bock-Schappelwein & Michael Böheim & Ulrike Famira-Mühlberger & Thomas Horvath & Daniela Kletzan-Slamanig & Margit Schratzenstaller & Maria M. Hofmarcher-Holzhacker, 2015. "Monitoring of Austria's Efforts Within the Europe 2020 Strategy. Update 2014-15," WIFO Studies, WIFO, number 58130.
    11. Angela Köppl & Margit Schratzenstaller, 2015. "The Austrian Tax System – Perspectives for Reform," WIFO Bulletin, WIFO, vol. 20(6), pages 72-79, April.
    12. Nazila Alinaghi & W. Robert Reed, 2021. "Taxes and Economic Growth in OECD Countries: A Meta-analysis," Public Finance Review, , vol. 49(1), pages 3-40, January.
    13. Bielecki, Marcin & Stähler, Nikolai, 2022. "Labor Tax Reductions In Europe: The Role Of Property Taxation," Macroeconomic Dynamics, Cambridge University Press, vol. 26(2), pages 419-451, March.
    14. Durusu-Ciftci, Dilek & Gokmenoglu, Korhan K. & Yetkiner, Hakan, 2018. "The heterogeneous impact of taxation on economic development: New insights from a panel cointegration approach," Economic Systems, Elsevier, vol. 42(3), pages 503-513.
    15. Margit Schratzenstaller, 2013. "Vermögensbezogene Steuern. Ansatzpunkte, internationaler Vergleich und Optionen für Deutschland," WIFO Studies, WIFO, number 47219.
    16. Angela Köppl & Margit Schratzenstaller-Altzinger, 2015. "Das österreichische Abgabensystem – Reformperspektiven," WIFO Monatsberichte (monthly reports), WIFO, vol. 88(2), pages 127-135, February.
    17. Sami Saafi & Meriem Bel Haj Mohamed & Abdeljelil Farhat, 2017. "Untangling the causal relationship between tax burden distribution and economic growth in 23 OECD countries: Fresh evidence from linear and non-linear Granger causality," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 14(2), pages 265-301, December.
    18. Irena Szarowská, 2015. "Tax Shift by Economic Functions and Its Effect on Economic Growth in the European Union," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 63(6), pages 2127-2135.
    19. Salvador Barrios & Serena Fatica & Diego Martinez-Lopez & Gilles Mourre, 2018. "The Fiscal Effects of Work-related Tax Expenditures in Europe," Public Finance Review, , vol. 46(5), pages 793-820, September.
    20. Sarah Godar & Christoph Paetz & Achim Truger, 2015. "The scope for progressive tax reform in the OECD countries. A macroeconomic perspective with a case study for Germany," Revue de l'OFCE, Presses de Sciences-Po, vol. 0(5), pages 79-117.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:germec:v:19:y:2018:i:1:p:32-73. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/vfsocea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.