The Impact of Consumption Tax Rate on Consumption - A Panel Data Analysis for European Countries (1995-2007)

8 Pages Posted: 1 Jan 2010

Date Written: December 29, 2009

Abstract

In the present paper it will be pointed out that consumption tax rate has a negative impact on consumption. Hence, according to the consumption-led-growth theory, economic growth will be hindered. The panel data sample covers for the period 1995-2007 many European countries, and the econometric model is estimated through the Eviews software package.

Keywords: Economic growth, Consumption Taxation, Consumption-led-growth, Economic Policy, Econometric Models with Panel Data

JEL Classification: O4, H2, E21, E6, C23

Suggested Citation

Georgiou, Miltiades N., The Impact of Consumption Tax Rate on Consumption - A Panel Data Analysis for European Countries (1995-2007) (December 29, 2009). Available at SSRN: https://ssrn.com/abstract=1529242 or http://dx.doi.org/10.2139/ssrn.1529242

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