IDEAS home Printed from https://ideas.repec.org/a/eso/journl/v51y2020i2p241-274.html
   My bibliography  Save this article

Estimating Ireland’s Tax Elasticities: a Policy-Adjusted Approach

Author

Listed:
  • Niall Conroy

    (Irish Fiscal Advisory Council)

Abstract

This paper estimates tax elasticities for Ireland. We compile a new dataset on tax policy changes in Ireland. This allows us to use policy-adjusted revenue when estimating tax elasticities. This gives us a cleaner estimate of the relationship between government revenue and its economic drivers. We find that income tax elasticity estimates are significantly above one when policy-adjusted revenue is used, as opposed to significantly below one when unadjusted revenue is used. This highlights the importance of using policy-adjusted revenue when estimating elasticities. We also estimate elasticities of Pay Related Social Insurance and Value-Added Tax, which have previously received little attention in the Irish literature.

Suggested Citation

  • Niall Conroy, 2020. "Estimating Ireland’s Tax Elasticities: a Policy-Adjusted Approach," The Economic and Social Review, Economic and Social Studies, vol. 51(2), pages 241-274.
    • Handle: RePEc:eso:journl:v:51:y:2020:i:2:p:241-274
    as

    Download full text from publisher

    File URL: https://www.esr.ie/article/view/1443/276
    Download Restriction: no
    ---><---

    Citations

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


    Cited by:

    1. Bernd Hayo & Sascha Mierzwa & Umut Unal, 2021. "Estimating Policy-Corrected Long-Term and Short-Term Tax Elasticities for the United States, Germany, and the United Kingdom," MAGKS Papers on Economics 202112, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    2. Bernd Hayo & Sascha Mierzwa & Umut Ünal, 2023. "Estimating policy-corrected long-term and short-term tax elasticities for the USA, Germany, and the United Kingdom," Empirical Economics, Springer, vol. 64(1), pages 465-504, January.
    3. Niall Conroy, 2023. "The Role of Elasticities in Forecasting Irish Income Tax Revenue," The Economic and Social Review, Economic and Social Studies, vol. 54(2), pages 149-172.

    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:eso:journl:v:51:y:2020:i:2:p:241-274. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Aedin Doris (email available below). General contact details of provider: https://www.esr.ie .

    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.