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Economic growth and tax components: an analysis of tax changes in OECD

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The paper examines empirically the changes in the tax mix of the OECD countries in response to economic growth from 1980 to 1999. It is found that economic growth, measured by GDP per capita, has had a significant effect on the tax mix of the OECD countries. Analysis reveals that different taxes respond differently to the growth of GDP per capita. It is shown that while the shares of personal and property taxes have responded positively to economic growth, shares of the payroll and goods and services taxes have shown a relative decline.
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Document Type: Research Article

Affiliations: 1: Bureau of Business and Economic Research, College of Business and Economics, West Virginia University, Morgantown, WV 26506-6025, USA 2: Department of Economics, The University of Winnipeg, Winnipeg, Manitoba, Canada R3B 2E9

Publication date: 2005-10-20

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