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Taxation and democracy

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  • Mihai Mutascu

Abstract

Using a panel-model approach, this paper investigates the relationship between the level of taxation and democracy. The dataset covers the period 2002–2008, and includes 51 countries. The study suggests that a significant increase of taxes, without a major negative reaction of taxpayers, can be implemented if the political regime is strongly democratic or, on the contrary, strongly autocratic.

Suggested Citation

  • Mihai Mutascu, 2011. "Taxation and democracy," Journal of Economic Policy Reform, Taylor and Francis Journals, vol. 14(4), pages 343-348.
    • Handle: RePEc:taf:jecprf:v:14:y:2011:i:4:p:343-348
    DOI: 10.1080/17487870.2011.635037
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    References listed on IDEAS

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    1. Martin C. McGuire & Mancur Olson, 1998. "The Economics of Autocracy and Majority Rule: The Invisible Hand and the Use of Force," International Economic Association Series, in: Silvio Borner & Martin Paldam (ed.), The Political Dimension of Economic Growth, chapter 3, pages 38-73, Palgrave Macmillan.
    2. Brennan,Geoffrey & Buchanan,James M., 2006. "The Power to Tax," Cambridge Books, Cambridge University Press, number 9780521027922, October.
    3. Meltzer, Allan H & Richard, Scott F, 1981. "A Rational Theory of the Size of Government," Journal of Political Economy, University of Chicago Press, vol. 89(5), pages 914-927, October.
    4. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 58(2), pages 277-297.
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    Cited by:

    1. Günay ÖZCAN & İbrahim ÖZMEN, 2019. "Does democracy increase total tax revenues? The case of selected OECD countries," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(3(620), A), pages 45-58, Autumn.
    2. Tony Addison & Miguel Niño†Zarazúa & Jukka Pirttilä, 2018. "Fiscal Policy, State Building and Economic Development," Journal of International Development, John Wiley & Sons, Ltd., vol. 30(2), pages 161-172, March.
    3. Mutascu, Mihai & Danuletiu, Dan, 2013. "The literacy impact on tax revenues," Economics Discussion Papers 2013-63, Kiel Institute for the World Economy (IfW Kiel).
    4. Yucel Demirkclic & Fazli Yildiz & Ersin Nail Sagdic, 2023. "An Analysis of the Relationship Between Taxation and Democracy: The Example of European Union Member and Candidate Countries (2010-2020)," Journal of Economic Policy Researches, Istanbul University, Faculty of Economics, vol. 10(2), pages 457-483, July.
    5. repec:idq:ictduk:14010 is not listed on IDEAS
    6. Idrys Fransmel Okombi, 2021. "Taxation et croissance économique en Afrique: la qualité des institutions importe‐t‐elle?," African Development Review, African Development Bank, vol. 33(4), pages 592-606, December.
    7. Mihai Mutascu, 2014. "Influence of climate conditions on tax revenues," Contemporary Economics, University of Economics and Human Sciences in Warsaw., vol. 8(3), September.
    8. Balamatsias, Pavlos, 2018. "Democracy and government spending," MPRA Paper 84975, University Library of Munich, Germany.
    9. Balamatsias, Pavlos, 2018. "Democracy and taxation," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 12, pages 1-28.
    10. Mihai Mutascu, 2012. "Taxation under media capture," Economics Bulletin, AccessEcon, vol. 32(4), pages 2752-2767.
    11. Tony Addison & Miguel Niño†Zarazúa & Jukka Pirttilä, 2018. "Fiscal Policy, State Building and Economic Development," Journal of International Development, John Wiley & Sons, Ltd., vol. 30(2), pages 161-172, March.

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    JEL classification:

    • D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General

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