International evidence of tax smoothing in a panel of industrial countries
- ASU Author/Contributor (non-ASU co-authors, if there are any, appear on document)
- Mark Strazicich Ph.D., Professor (Creator)
- Institution
- Appalachian State University (ASU )
- Web Site: https://library.appstate.edu/
Abstract: A panel of industrial countries is examined for evidence of `tax smoothing’. Tax
smoothing results when governments minimize tax distortions over time. The model
provides a positive theory of government debt and is due primarily to Barro. Unit
root tests are performed in panel data to test the null hypothesis of nonstationary tax
rates. Panel regressions are then undertaken to test the null hypothesis that tax rate
changes are unpredictable and test for evidence of an alternative hypothesis. Political
and economic variables are examined for their ability to predict tax rate changes.
Overall, the results cannot reject the null hypotheses and support tax smoothing by
national governments.
International evidence of tax smoothing in a panel of industrial countries
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Created on 6/10/2013
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Additional Information
- Publication
- Strazicich, M.C. (2002). International Evidence of Tax Smoothing in a Panel of Industrial Countries. Applied Economics, 34(18): 2325-2331 (Dec 2002). Published by Taylor & Francis (ISSN: 0003-6846). DOI: 10.1080/00036840210143107.
- Language: English
- Date: 2002