Arbeitspapier
Ideology and Taxation in Latin America
This paper examines the impact of ideology on tax revenues in Latin America, using a panel of 17 countries from 1990 to 2010. As a first approach, a fixed- effects model is used to identify the impact of ideology on taxation; left-leaning governments are associated with increases in total tax revenues and income tax revenues of 2. 1 and 1. 3 percent of GDP, respectively. There is no effect on revenues from VAT or social security taxes. To deal with endogeneity problems, an event study and a difference in difference methodology are used to track the behavior of revenues around the time of the shifts to the left. Tax revenues and income tax revenues increase by 1. 5 and 0. 8 percent of GDP when comparing revenues immediately before and after the shift in ideology. The pattern of tax revenues around ideological shifts suggests that the effects are causal.
- Language
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Englisch
- Bibliographic citation
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Series: IDB Working Paper Series ; No. IDB-WP-407
- Classification
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Wirtschaft
Taxation, Subsidies, and Revenue: General
Capitalist Systems: Political Economy
- Event
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Geistige Schöpfung
- (who)
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Stein, Ernesto H.
Caro, Lorena
- Event
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Veröffentlichung
- (who)
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Inter-American Development Bank (IDB)
- (where)
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Washington, DC
- (when)
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2013
- Handle
- Last update
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10.03.2025, 11:42 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Stein, Ernesto H.
- Caro, Lorena
- Inter-American Development Bank (IDB)
Time of origin
- 2013
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