181-204

• Καρράς, Γεώργιος
• Furceri, Davide

This paper investigates the effects of changes in taxes on economic growth. Using annual data from 1965 to 2003 for a panel of nineteen European economies, the results show that the effect of an increase in taxes on real GDP per capita is negative and persistent: an increase in the total tax rate (measured as the total tax ratio to GDP) by 1% of GDP has a long-run effect on real GDP per capita of –0.5% to –1%. The findings also imply that increases in social security contributions or taxes on goods and services have larger negative effects on per capita output than increases in income tax.

• Economics and Business
• Computer and information sciences

• Economic development
• Statistics

taxes, economic growth

Περιέχει σχήματα, διαγράμματα, πίνακες, σημειώσεις και βιβλιογραφία, JEL classification: E62, H30