How is Tax Policy Conducted over the Business Cycle?

It is well known by now that government spending has typically been procyclical in developing economies but acyclical or countercyclical in industrial countries. Little, if any, is known, however, about the cyclical behavior of tax rates (as opposed to tax revenues, which are endogenous to the busin...

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Bibliographic Details
Main Authors:	Vegh, Carlos A., Vuletin, Guillermo
Format:	Journal Article
Published:	American Economic Association 2018
Subjects:	BUSINESS CYCLES TAXATION TAX POLICY CYCLICALITY REVENUE PUBLIC SPENDING TAX RATES
Online Access:	http://hdl.handle.net/10986/29303

id	okr-10986-29303
recordtype	oai_dc
spelling	okr-10986-293032021-04-23T14:04:52Z How is Tax Policy Conducted over the Business Cycle? Vegh, Carlos A. Vuletin, Guillermo BUSINESS CYCLES TAXATION TAX POLICY CYCLICALITY REVENUE PUBLIC SPENDING TAX RATES BUSINESS CYCLES It is well known by now that government spending has typically been procyclical in developing economies but acyclical or countercyclical in industrial countries. Little, if any, is known, however, about the cyclical behavior of tax rates (as opposed to tax revenues, which are endogenous to the business cycle and, hence, cannot shed light on the cyclicality of tax policy). We build a novel dataset on tax rates for 62 countries for the period 1960-2013 that comprises corporate income, personal income, and value-added tax rates. We find that tax policy is acyclical in industrial countries but mostly pro cyclical in developing countries. 2018-02-02T15:46:53Z 2018-02-02T15:46:53Z 2015-08 Journal Article American Economic Journal: Economic Policy http://hdl.handle.net/10986/29303 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo American Economic Association American Economic Association Publications & Research :: Journal Article Publications & Research
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
topic	BUSINESS CYCLES TAXATION TAX POLICY CYCLICALITY REVENUE PUBLIC SPENDING TAX RATES BUSINESS CYCLES
spellingShingle	BUSINESS CYCLES TAXATION TAX POLICY CYCLICALITY REVENUE PUBLIC SPENDING TAX RATES BUSINESS CYCLES Vegh, Carlos A. Vuletin, Guillermo How is Tax Policy Conducted over the Business Cycle?
description	It is well known by now that government spending has typically been procyclical in developing economies but acyclical or countercyclical in industrial countries. Little, if any, is known, however, about the cyclical behavior of tax rates (as opposed to tax revenues, which are endogenous to the business cycle and, hence, cannot shed light on the cyclicality of tax policy). We build a novel dataset on tax rates for 62 countries for the period 1960-2013 that comprises corporate income, personal income, and value-added tax rates. We find that tax policy is acyclical in industrial countries but mostly pro cyclical in developing countries.
format	Journal Article
author	Vegh, Carlos A. Vuletin, Guillermo
author_facet	Vegh, Carlos A. Vuletin, Guillermo
author_sort	Vegh, Carlos A.
title	How is Tax Policy Conducted over the Business Cycle?
title_short	How is Tax Policy Conducted over the Business Cycle?
title_full	How is Tax Policy Conducted over the Business Cycle?
title_fullStr	How is Tax Policy Conducted over the Business Cycle?
title_full_unstemmed	How is Tax Policy Conducted over the Business Cycle?
title_sort	how is tax policy conducted over the business cycle?
publisher	American Economic Association
publishDate	2018
url	http://hdl.handle.net/10986/29303
_version_	1764469008453599232

How is Tax Policy Conducted over the Business Cycle?

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