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Taxation Fiscal Policy

topic v1.0.0 2026-04-05 Agent-extracted

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

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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
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

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

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

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

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

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

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

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

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

Engines

ols_regression correlation_matrix difference_in_differences

Sources

Mertens, K., Ravn, M.O. (2013). The Dynamic Effects of Personal and Corporate Income Tax Changes in the United States DOI
Besley, T., Persson, T. (2014). Why Do Developing Countries Tax So Little? DOI
Reinhart, C.M., Rogoff, K.S. (2010). Growth in a Time of Debt DOI
Piketty, T., Saez, E. (2007). How Progressive is the U.S. Federal Tax System?

Tags

topictaxation-fiscal

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)
  • 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)
  • 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)

Installation

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