The dynamic responses of growth to tax structure for Greece

Abstract

This paper estimates how output growth responds to shocks in the tax mix and tax burden over a long period of time. In particular, the underlying dynamic interactions between output growth, tax mix and tax burden are considered. To this purpose, Impulse Response Function analysis is applied. The chosen specification suggests that an appropriate tax-mix is one that would give weight to indirect taxation.

Acknowledgements

The views expressed do not reflect those of the Ministry. The author is grateful to G. Sfakianakis for constructive comments.