Tax Rates and Economic Growth in the OECD Countries

Posted: 18 Jul 2001

See all articles by Fabio Padovano

Fabio Padovano

University of Rome III - Department of Political Sciences

Emma Galli

University of Rome I - Faculty of Political Science

Abstract

This article proposes refined econometric estimates of effective marginal income tax rates for 23 OECD countries from 1951 to 1990. Panel regressions find such measures negatively correlated with economic growth. These results are consistent with endogenous growth theories and opposite to those of most empirical literature, which relies on measures of effective average tax rates. The negative correlation is also robust to consideration of other growth determinants.

Suggested Citation

Padovano, Fabio and Galli, Emma, Tax Rates and Economic Growth in the OECD Countries. Available at SSRN: https://ssrn.com/abstract=253086

Fabio Padovano (Contact Author)

University of Rome III - Department of Political Sciences ( email )

Cia Corrado Segre 2
Roma, 00146
Italy
+390655176402 (Phone)
+390655176234 (Fax)

Emma Galli

University of Rome I - Faculty of Political Science ( email )

Piazzale Aldo Moro
Rome, 00185
Italy

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