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Taxation Fiscal Policy

topic v1.0.0 Agent-extracted
Published 2026-04-05 by Praxis Agent

How tax structure, revenue mobilization, and fiscal policy affect economic growth, inequality, and public goods provision across countries.

Download .pax.tar.gz 2.9 KB

Domain: Taxation and Fiscal Policy

How tax structure, revenue mobilization, and fiscal policy affect economic growth, inequality, and public goods provision

Period: 1990-present Population: Countries worldwide Level: macro

Overview

6
Constructs
3
Findings
1
Playbooks
3
Engines

Constructs

tax_revenue_gdp_pct Tax Revenue as Percent of GDP

Total tax revenue collected by government as a percentage of gross domestic product, measuring fiscal capacity and the overall tax burden on the economy

tax-to-GDP ratiotax burdenfiscal capacity
income_tax_share Income Tax Share of Revenue

Proportion of total tax revenue derived from personal and corporate income taxes, indicating the progressivity and direct taxation reliance of the tax system

direct tax shareprogressive tax component
government_expenditure_gdp_pct Government Expenditure as Percent of GDP

Total government spending including consumption and investment as a percentage of gross domestic product, measuring the size of government in the economy

public spendinggovernment size
fiscal_balance_gdp_pct Fiscal Balance as Percent of GDP

Difference between government revenue and expenditure as a percentage of GDP, where negative values indicate budget deficits and positive values indicate surpluses

budget deficitfiscal surplusprimary balance
public_debt_gdp_pct Public Debt as Percent of GDP

Total accumulated government debt as a percentage of gross domestic product, measuring the long-term fiscal sustainability and debt burden of the public sector

government debtsovereign debtnational debt
tax_compliance_rate Tax Compliance Rate

Proportion of tax obligations that are voluntarily fulfilled by taxpayers, reflecting tax morale, administrative effectiveness, and perceived fairness of the tax system

tax moralevoluntary compliance

Findings

Tax revenue mobilization is positively associated with public goods quality and state capacity, with countries collecting more tax revenue providing better infrastructure, education, and health services

Direction: positive Confidence: strong Method: ols_regression

Tax cuts have asymmetric effects across the income distribution, with cuts for lower-income households generating higher fiscal multipliers than cuts for higher-income households

Direction: conditional Confidence: moderate Method: difference_in_differences

Progressive taxation reduces income inequality with moderate efficiency costs, though the optimal top marginal rate depends on behavioral elasticities that vary across contexts

Direction: conditional Confidence: moderate Method: ols_regression

Playbooks

Quick Start — Taxation Fiscal
1–3 minutes 1 steps

Basic analysis workflow for the taxation_fiscal domain.

correlation_matrix

Engines

ols_regression correlation_matrix difference_in_differences

Tags

topictaxation

Details

Domain: Taxation and Fiscal Policy

How tax structure, revenue mobilization, and fiscal policy affect economic growth, inequality, and public goods provision

Temporal scope: 1990-present | Population: Countries worldwide

Key Findings

  • Tax revenue mobilization is positively associated with public goods quality and state capacity, with countries collecting more tax revenue providing better infrastructure, education, and health services (positive, strong)
  • Tax cuts have asymmetric effects across the income distribution, with cuts for lower-income households generating higher fiscal multipliers than cuts for higher-income households (conditional, moderate)
  • Progressive taxation reduces income inequality with moderate efficiency costs, though the optimal top marginal rate depends on behavioral elasticities that vary across contexts (conditional, moderate)

Installation

Install this PAX into your Praxis instance:

praxis_import_pax("taxation-fiscal-policy.pax.tar.gz", install=True)