Furceri, Davide and Karras, Georgios (2010): Tax Design in the OECD: A test of the Hines-Summers Hypothesis.
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This paper investigates the effects of economic size and trade openness on tax design in the OECD. Using data for thirty OECD countries over the 1965-2007 period, we test the recently proposed Hines-Summers  Hypothesis, according to which the smaller the size and the greater the openness of the economy, the more it will rely on expenditure taxes and the less on income taxes. Our findings show that the Hines-Summers Hypothesis can claim broad, statistically significant, and robust empirical support in the OECD data sets we examined.
|Item Type:||MPRA Paper|
|Original Title:||Tax Design in the OECD: A test of the Hines-Summers Hypothesis|
|Keywords:||Income tax; Consumption tax; Country size; Trade openness|
|Subjects:||H - Public Economics > H2 - Taxation, Subsidies, and Revenue > H20 - General
E - Macroeconomics and Monetary Economics > E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook > E60 - General
|Depositing User:||Davide Furceri|
|Date Deposited:||18. Jun 2010 05:41|
|Last Modified:||13. Feb 2013 02:02|
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