Alternative method to measure the VAT gap in the EU: Stochastic tax frontier model approach
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F62156489%3A43110%2F19%3A43915182" target="_blank" >RIV/62156489:43110/19:43915182 - isvavai.cz</a>
Result on the web
<a href="https://doi.org/10.1371/journal.pone.0211317" target="_blank" >https://doi.org/10.1371/journal.pone.0211317</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.1371/journal.pone.0211317" target="_blank" >10.1371/journal.pone.0211317</a>
Alternative languages
Result language
angličtina
Original language name
Alternative method to measure the VAT gap in the EU: Stochastic tax frontier model approach
Original language description
In this paper, we pursue an alternative method to measure the Value Added Tax gap in the European Union using the stochastic tax frontier model. We use the Value Added Tax total tax liability as the input to estimate the optimal frontier of the Value Added Tax, as well as to predict technical inefficiency. Using the latest innovations of the stochastic frontier approach, we aim to obtain the accurate size of the Value Added Tax gap in the EU-26 countries and contrast them with extant estimates. The obtained estimates of the Value Added Tax gap using the stochastic tax frontier model are different from the estimates produced by the top-down method to calculate the Value Added Tax gap in the EU. Moreover, the stochastic tax frontier approach allows us to disentangle the Value Added Tax gap, which is time dependent, from the persistent Value Added Tax gap, which is country specific. The stochastic tax frontier model allows us to test the effect of exogenous factors on the technical inefficiency of the Value Added Tax and propose appropriate policy recommendations.
Czech name
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Czech description
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Classification
Type
J<sub>imp</sub> - Article in a specialist periodical, which is included in the Web of Science database
CEP classification
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OECD FORD branch
50206 - Finance
Result continuities
Project
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Continuities
I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace
Others
Publication year
2019
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Name of the periodical
PLoS One
ISSN
1932-6203
e-ISSN
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Volume of the periodical
14
Issue of the periodical within the volume
1
Country of publishing house
US - UNITED STATES
Number of pages
38
Pages from-to
"e0211317"
UT code for WoS article
000457041800029
EID of the result in the Scopus database
2-s2.0-85060599458