The Calculation of Weighted Price Elasticity of Tax: Turkey (1998-2013)

Yılmaz, Engin and Süslü, Bora (2015): The Calculation of Weighted Price Elasticity of Tax: Turkey (1998-2013). Published in: Çankırı Karatekin University Journal of The Faculty of Economics , Vol. 5/1, No. 04/2015 (1 June 2015): pp. 337-346.

Abstract

In this study, the assumption of “the weighted price elasticity of tax is a unit in the developing countries” suggested in the first studies which examine the impacts of the inflation on tax revenues, will be reevaluated for Turkey in the period of 1998-2013. We use Turkish tax and price index data for calculating the weighted price elasticity of tax. Via the method of dynamic ordinary least squares (DOLS), the long run weighted price elasticity of tax system is guessed. The importance of this study is the fact that this is first study intended to the calculation of the weighted price elasticity of tax for Turkey. In this sense, it will be instructive study for the reconsideration of the assumption of “the weighted price elasticity of tax is a unit in the developing countries”.

• Item Type: MPRA Paper
• Language: English
• Keywords: Tanzi Effect, Weighted Price Elasticity of Tax, Taxation
• Subjects: H - Public Economics > H2 - Taxation, Subsidies, and Revenue > H20 - General; H - Public Economics > H2 - Taxation, Subsidies, and Revenue > H24 - Personal Income and Other Nonbusiness Taxes and Subsidies; H - Public Economics > H3 - Fiscal Policies and Behavior of Economic Agents > H30 - General

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