THE EFFECT OF TAX RATES AND CORRUPTION ON TAX RECEIPTS. A COMPARISON OF THE OECD COUNTRIES, 2000-2004 (Az adoratak es a korrupcio hatasa az adobevetelekre. Az OECD-orszagok osszehasonlitasa, 2000-2004)

• Authors: Laczko Maria
• Languages of publication: HU

Abstracts

EN

The study examines the combined effect of tax rates (with special attention to tax rates on work) and level of corruption on the GDP-proportionate tax receipts of 27 OECD countries, based on annual data for 2000-2004. A graphic representation of the combined interaction of the tax wedge and the level of corruption produces a Laffer-type curve. The article shows that this relation is the resultant of several distinguishable effects: one is the direct effect in a positive direction of the tax rates, another the effect in a negative direction of the level of corruption, and a third the effect in a negative direction on tax receipts of the interaction between tax rates and high corruption. The last expresses that the marginal effect of the tax wedge depends on the level of corruption. The relations derived are valid in the long term. The article also includes calculations of the possible shortfall of tax receipts in the examined countries that can be attributed to corruption and to the combined effect of high corruption and tax rate. The relative values of the resulting tax-receipt shortfalls can also provide information for a league-table of countries according to the size of their black economy. In terms of these indicators, Hungary is among the leading OECD countries.

Keywords

EN

AGGREGATE FACTOR INCOME DISTRIBUTION; DEMAND AND SUPPLY OF LABOR; TAX EVASION

Discipline

• ECONOMICS: ECONOMICS

• Publisher: Committee for Economic Sciences of the Hungarian Academy of Sciences
• Journal: Kozgazdasagi Szemle (Economic Review)
• Year: 2009
• Volume: 56
• Issue: 6
• Pages: 526-545
• Document type: ARTICLE

Contributors

author

Laczko Maria

• Maria Laczko, no address given, contact the journal editor

Identifiers

CEJSH db identifier

10HUAAAA07886