Do Democracies Tax More? Political Regime Type and Taxation

29 Pages Posted: 10 Nov 2011 Last revised: 6 Mar 2015

Maria Melody Garcia

University of Rome II - Faculty of Economics

Christian von Haldenwang

Deutsches Institut für Entwicklungspolitik (DIE) - German Development Institute (DIE)

Date Written: September 19, 2014

Abstract

A growing body of literature suggests that political regime type matters in determining taxation. However, research on the relationship of political regimes to taxation yields mixed results. To what extent does the democratic or authoritarian character of the polity impact on the level of taxation? The paper investigates the relationship between political regimes and tax-to-GDP ratio, using a panel dataset of 131 countries and covering the period 1990-2008. Findings suggest that the character of the polity affects taxation, but there is no linear trend in favour of democracy. Rather, the results indicate a U-shaped relationship between polity and tax ratio.

Keywords: Political regime, Democracy, Autocracy, Taxation, Tax ratio

Suggested Citation

Garcia, Maria Melody and von Haldenwang, Christian, Do Democracies Tax More? Political Regime Type and Taxation (September 19, 2014). Available at SSRN: https://ssrn.com/abstract=1957617 or http://dx.doi.org/10.2139/ssrn.1957617

Maria Melody Garcia

University of Rome II - Faculty of Economics ( email )

Via Columbia 2
Rome, 00133
Italy

Christian Von Haldenwang (Contact Author)

Deutsches Institut für Entwicklungspolitik (DIE) - German Development Institute (DIE) ( email )

Tulpenfeld 6
Bonn, 53113
Germany

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