Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/153814 
Year of Publication: 
2011
Series/Report no.: 
ECB Working Paper No. 1380
Publisher: 
European Central Bank (ECB), Frankfurt a. M.
Abstract: 
This paper investigates empirically the effect of personal income tax progressivity on output volatility in a sample of OECD countries over the period 1982-2009. Our measure of tax progressivity is based on the difference between the marginal and the average income tax rate for the average production worker. We find supportive empirical evidence for the hypothesis that higher personal income tax progressivity leads to lower output volatility. All other factors constant, countries with more progressive personal income tax systems seem to benefit from stronger automatic stabilisers.
Subjects: 
automatic stabilisers
output volatility
personal income taxes
Progressivity
JEL: 
E63
E32
H10
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.