IDEAS home Printed from https://ideas.repec.org/a/prg/jnlcfu/v2021y2021i4id567p31-54.html
   My bibliography  Save this article

Taxation in Developed Countries: Response to External Shocks in 2008-2009 and 2020
[Zdanění ve vyspělých zemích: reakce na vnější šoky 2008-2009 a 2020]

Author

Listed:
  • Leoš Vítek
  • Markéta Arltová
  • Květa Kubátová

Abstract

Based on OECD Revenue Statistics data, the article analyses the impact of two external shocks (the great financial depression of 2008-2009 and covid-19 in 2020) on the size and structure of tax revenues for OECD countries. Using the descriptive statistics and cluster analysis, the authors have established that the tax systems of both developed and developing countries responded to the external shocks in 2008-2009 and 2020+ with a decline in the overall tax burden (tax to GDP ratios), due to a faster decline in nominal tax revenues than in nominal GDP. The decline was more pronounced in 2009 and within developing countries. During both shocks, the share of income taxes (incl. social security contributions) has dropped, while this decline was more intense in 2009. In 2009, the importance of consumption taxes has increased, and in 2020 it decreased. The clusters of countries in terms of the size and structure of taxes are basically the same throughout the period 2008-2020. However, it is not possible to unambiguously identify clusters of countries that would respond to both shocks in their tax policy and taxation system in the same way.

Suggested Citation

  • Leoš Vítek & Markéta Arltová & Květa Kubátová, 2021. "Taxation in Developed Countries: Response to External Shocks in 2008-2009 and 2020 [Zdanění ve vyspělých zemích: reakce na vnější šoky 2008-2009 a 2020]," Český finanční a účetní časopis, Prague University of Economics and Business, vol. 2021(4), pages 31-54.
    • Handle: RePEc:prg:jnlcfu:v:2021:y:2021:i:4:id:567:p:31-54
    DOI: 10.18267/j.cfuc.567
    as

    Download full text from publisher

    File URL: http://cfuc.vse.cz/doi/10.18267/j.cfuc.567.html
    Download Restriction: free of charge
    File URL: http://cfuc.vse.cz/doi/10.18267/j.cfuc.567.pdf
    Download Restriction: free of charge
    File URL: https://libkey.io/10.18267/j.cfuc.567?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Alena Andrejovska & Veronika Pulikova, 2018. "Tax Revenues in the Context of Economic Determinants," Montenegrin Journal of Economics, Economic Laboratory for Transition Research (ELIT), vol. 14(1), pages 133-141.
    2. Beate Jochimsen & Robert Lehmann, 2017. "On the political economy of national tax revenue forecasts: evidence from OECD countries," Public Choice, Springer, vol. 170(3), pages 211-230, March.
    3. Alexandra Ferreira‐Lopes & Luís Filipe Martins & Ruben Espanhol, 2020. "The relationship between tax rates and tax revenues in eurozone member countries ‐ exploring the Laffer curve," Bulletin of Economic Research, Wiley Blackwell, vol. 72(2), pages 121-145, April.
    4. Bharatee Dash & Angara Raja, 2014. "Do political determinants affect revenue collection? Evidence from the Indian states," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 61(3), pages 253-278, September.
    5. Anton Vaskovskyi, 2021. "Analysis of the Status Quo Behavioural Concept During the Global Economic Crisis," Prague Economic Papers, Prague University of Economics and Business, vol. 2021(2), pages 133-155.
    6. Beate Jochimsen & Robert Lehmann, 2017. "On the political economy of national tax revenue forecasts: evidence from OECD countries," Public Choice, Springer, vol. 170(3), pages 211-230, March.
    7. Kimberly Clausing, 2007. "Corporate tax revenues in OECD countries," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 14(2), pages 115-133, April.
    Full references (including those not matched with items on IDEAS)

    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. repec:prg:jnlcfu:v:2021:y:2021:i:4:id:567 is not listed on IDEAS
    2. repec:prg:jnlcfu:v:2022:y:2022:i:1:id:572 is not listed on IDEAS
    3. Ademmer Martin & Boysen-Hogrefe Jens, 2022. "The Impact of Forecast Errors on Fiscal Planning and Debt Accumulation," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 242(2), pages 171-190, April.
    4. Bastian Schulz, 2015. "Wage Rigidity and Labor Market Dynamics with Sorting," ifo Working Paper Series 199, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    5. Picchio, Matteo & Santolini, Raffaella, 2020. "Fiscal rules and budget forecast errors of Italian municipalities," European Journal of Political Economy, Elsevier, vol. 64(C).
    6. Mancini, Anna Laura & Tommasino, Pietro, 2023. "Fiscal rules and the reliability of public investment plans: Evidence from local governments," European Journal of Political Economy, Elsevier, vol. 79(C).
    7. Fabio Ashtar Telarico, 2023. "Опростяване И Усъвършенстване [Simplifying and Improving]," Post-Print hal-03989969, HAL.
    8. Panagiotis Liargovas & Vasilis Pilichos & Anastasia Angelopoulou, 2021. "Fiscal governance and forecasting Bias: a case study of Greece during the economic crisis," Bulletin of Applied Economics, Risk Market Journals, vol. 8(2), pages 75-95.
    9. Boukari, Mamadou & Veiga, Francisco José, 2018. "Disentangling political and institutional determinants of budget forecast errors: A comparative approach," Journal of Comparative Economics, Elsevier, vol. 46(4), pages 1030-1045.
    10. Potrafke, Niklas, 2017. "Partisan politics: The empirical evidence from OECD panel studies," Journal of Comparative Economics, Elsevier, vol. 45(4), pages 712-750.
    11. Zhiyong An & Yilin Hou, 2020. "Debt authority and intentional overstatement of budgetary deficit: evidence from Chinese Provinces," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 27(2), pages 461-477, April.
    12. Csaba Lentner & Szilárd Hegedűs & Vitéz Nagy, 2022. "Correlations of Taxation and Macroeconomic Indicators in the OECD Member Countries from 2014 to the First Year of the Crisis Caused by COVID-19," JRFM, MDPI, vol. 15(10), pages 1-17, October.
    13. Cronin, David & McInerney, Niall, 2023. "Official fiscal forecasts in EU member states under the European Semester and Fiscal Compact – An empirical assessment," European Journal of Political Economy, Elsevier, vol. 76(C).
    14. Lehmann Robert & Wollmershäuser Timo, 2020. "The macroeconomic projections of the German government: A comparison to an independent forecasting institution," German Economic Review, De Gruyter, vol. 21(2), pages 235-270, June.
    15. Bohn, Frank & Veiga, Francisco José, 2021. "Political forecast cycles," European Journal of Political Economy, Elsevier, vol. 66(C).
    16. Hüseyin ŞEN & Zeynep Burcu BULUT-ÇEVIK, 2021. "The Revenue-Maximizing Corporate Income Tax Rate for Turkey," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(1), pages 122-142, December.
    17. Fabio Ashtar Telarico, 2022. "Simplify and Improve: Revisiting Bulgaria's Revenue Forecasting Models," Economic Thought journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 6, pages 633-654.
    18. Marcell Göttert & Robert Lehmann, 2021. "Tax Revenue Forecast Errors: Wrong Predictions of the Tax Base or the Elasticity?," CESifo Working Paper Series 9148, CESifo.
    19. Frank Bohn, 2019. "Political budget cycles, incumbency advantage, and propaganda," Economics and Politics, Wiley Blackwell, vol. 31(1), pages 43-70, March.
    20. Oguzhan Akgun & David Bartolini & Boris Cournède, 2017. "The capacity of governments to raise taxes," OECD Economics Department Working Papers 1407, OECD Publishing.
    21. Antonio C. David & Can Sever, 2024. "Electoral cycles in tax reforms," Empirical Economics, Springer, vol. 67(2), pages 495-529, August.
    22. Jota Ishikawa & Eiji Horiuchi, 2012. "Strategic Foreign Direct Investment in Vertically Related Markets," The Economic Record, The Economic Society of Australia, vol. 88(281), pages 229-242, June.

    More about this item

    Keywords

    Tax policy; Tax Revenue; Shock; Daňová politika; Daňové příjmy; Šok;
    All these keywords.

    JEL classification:

    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • H60 - Public Economics - - National Budget, Deficit, and Debt - - - General

    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:prg:jnlcfu:v:2021:y:2021:i:4:id:567:p:31-54. 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: Stanislav Vojir (email available below). General contact details of provider: https://edirc.repec.org/data/uevsecz.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.