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Demography and the composition of taxes: Evidence from international panel data

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  • Luo, Weijie

Abstract

This paper analyzes the impact of population aging on the composition of taxes. When the median voter is of working age, then population aging increases the demand for expenditure rather than income taxes in order to increase the tax burden on the retired population. International panel evidence supports this hypothesis, and this relationship holds more firmly in stronger democracies.

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  • Luo, Weijie, 2019. "Demography and the composition of taxes: Evidence from international panel data," Economics Letters, Elsevier, vol. 183(C), pages 1-1.
    • Handle: RePEc:eee:ecolet:v:183:y:2019:i:c:32
    DOI: 10.1016/j.econlet.2019.07.003
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    References listed on IDEAS

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    Cited by:

    1. Cameron A. Shelton, 2022. "Age Demographics and the Tax Mix in US States," Public Finance Review, , vol. 50(1), pages 120-130, January.
    2. Beatrice D. Simo-Kengne, 2023. "Ageing and tax composition in South Africa: a spatial analysis," Quality & Quantity: International Journal of Methodology, Springer, vol. 57(1), pages 905-917, February.

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    More about this item

    Keywords

    Aging; Tax structure;

    JEL classification:

    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General

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