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Constraints on the executive and tax revenues in the long run

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  • Antonio Savoia
  • Kunal Sen
  • Abrams M.E. Tagem

Abstract

We argue that tax revenues and political institutions placing constraints on the executive power may reinforce each other over time and so co-evolve in the long run. This may also bring a shift in the composition of revenues, from taxes levied on a narrow base to broadly levied taxes. To test these hypotheses, we use historical cross-country data covering 31 countries for 1800-2012 and panel time series methods allowing for different forms of country-specific heterogeneity and cross-section dependence. The results offer three main findings.

Suggested Citation

  • Antonio Savoia & Kunal Sen & Abrams M.E. Tagem, 2022. "Constraints on the executive and tax revenues in the long run," WIDER Working Paper Series wp-2022-4, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2022-4
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    Keywords

    Constraints on the executive; Tax revenue; Institutions; SDG17; Government tax revenue;
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