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dc.contributor.authorFricke, Hansen_US
dc.contributor.authorSüssmuth, Bernden_US
dc.date.accessioned2011-05-17en_US
dc.date.accessioned2011-06-29T11:21:26Z-
dc.date.available2011-06-29T11:21:26Z-
dc.date.issued2011en_US
dc.identifier.urihttp://hdl.handle.net/10419/46565-
dc.description.abstractAgainst the background of a notoriously high macroeconomic instability and the need to raise tax revenues to meet the demands of public spending, this paper analyzes the tradeoff between growth and volatility of tax revenues in Latin America. We use a two-step Engle-Granger-type model to estimate short-run and long-run elasticities, accounting for statedependentasymmetric reactions of short-run elasticities over the business cycle. Due to its dependence on commodities exploitation Latin America is in general susceptible to the boombust cycles of its natural riches. Controlling for the composition of revenue sources and other idiosyncrasies of Latin American economies, we find revenues above (below) its long-run equilibrium to react stronger (weaker) to business cycle dynamics. This 'tax revenue channel' represents an indirect argument for counter-cyclical discretionary fiscal policy in the region. Our detailed elasticity estimates can give some orientation on how to reach necessary higher tax levels without creating disincentives and inequities through business cycle instabilities on the way to develop an adequate internal tax system.en_US
dc.language.isoengen_US
dc.publisherCESifo Münchenen_US
dc.relation.ispartofseriesCESifo working paper: Public Finance 3312en_US
dc.subject.jelH20en_US
dc.subject.jelO10en_US
dc.subject.jelE60en_US
dc.subject.ddc330en_US
dc.subject.keywordtax policyen_US
dc.subject.keyworddeveloping countriesen_US
dc.subject.keywordregime-dependent elasticityen_US
dc.subject.stwSteuerpolitiken_US
dc.subject.stwSteueraufkommenen_US
dc.subject.stwElastizitäten_US
dc.subject.stwWirtschaftswachstumen_US
dc.subject.stwEntwicklungsländeren_US
dc.subject.stwLateinamerikaen_US
dc.titleGrowth and volatility of tax revenues in Latin Americaen_US
dc.typeWorking Paperen_US
dc.identifier.ppn659011034en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
Appears in Collections:CESifo Working Papers, CESifo Group Munich

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