Estimating the Laffer Curve for Slovakia: A DSGE Approach
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216224%3A14560%2F19%3A00110683" target="_blank" >RIV/00216224:14560/19:00110683 - isvavai.cz</a>
Result on the web
<a href="https://mme2019.ef.jcu.cz/" target="_blank" >https://mme2019.ef.jcu.cz/</a>
DOI - Digital Object Identifier
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Alternative languages
Result language
angličtina
Original language name
Estimating the Laffer Curve for Slovakia: A DSGE Approach
Original language description
The goal of this paper is to quantify the impact of alternative tax adjustments on government tax revenues and the size of the shadow economy in Slovakia. Our approach uses a small dynamic stochastic general equilibrium (DSGE) model consisting of both formal and informal sectors of the economy. Using the quarterly data for the Slovak economy from 2000 to 2017 we estimate a linearised form of the DSGE model. Based on our parameter estimates, we perform a set of simulations using the non-linear form of the underlying DSGE model to evaluate the effects of changes in the corporate tax rate, personal income tax rate, social security tax rate, and in the probability of tax control. These effects are evaluated with regards to the changes in steady-state values of the output in the official economy, total tax revenues, and the size of the shadow economy. The corresponding Laffer curves show strong responses in the size of the underground economy when the corporate tax rates or personal income tax rates are growing. On the other hand, the increase of the social security tax rates causes only small growth in the share of the shadow economy without negative effects on government tax revenues.
Czech name
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Czech description
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Classification
Type
D - Article in proceedings
CEP classification
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OECD FORD branch
50202 - Applied Economics, Econometrics
Result continuities
Project
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Continuities
S - Specificky vyzkum na vysokych skolach
Others
Publication year
2019
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Article name in the collection
Proceedings of 37th International Conference on Mathematical Methods in Economics
ISBN
9788073947606
ISSN
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e-ISSN
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Number of pages
7
Pages from-to
297-303
Publisher name
University of South Bohemia in České Budějovice
Place of publication
České Budějovice
Event location
České Budějovice
Event date
Jan 1, 2019
Type of event by nationality
WRD - Celosvětová akce
UT code for WoS article
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