Ricardian equivalence and fiscal distortions in the Dominican Republic

Prazmowski, Peter A.

doi:10.1007/s00181-012-0669-y

Cited by 5 publications

(3 citation statements)

References 33 publications

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“…[ 23 ] Found that Ricardian equivalence is the major reason for fiscal difficulties and distortions. This is because it leads to the crowd-out effect in consumption and leads the economy into adverse challenges in the long run.…”

Section: Literature Reviewmentioning

confidence: 99%

On the fiscal deficit and economic growth in sub-Saharan Africa: A new evidence from system GMM

Sore,

Ayana,

Demissie

2024

PLoS ONE

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Using a two-step approach GMM, this study examines the short- and long-term effects of fiscal deficit on the economic growth of 42 Sub-Saharan African nations between 2011 and 2021. The World Development Index, the most reliable source, is where the panel data is taken from. Using the Levin-Lin-Chu and Hadri LM tests for unit root, it was determined that there is no risk of a random walk in the data. The study’s findings indicate that while the fiscal deficit has short-term, positive, and significant benefits on the economic growth of SSA countries, it has long-term, negative repercussions. According to the system GMM’s results, an increase in the fiscal deficit of SSA countries is linked to a short-term increase in economic growth of 0.036 percent, while an increase in the fiscal deficit of one percentage point is linked to a long-term decline in economic growth of SSA countries of 0.013 percent, holding all other factors constant. The study’s findings also showed that the budget deficit has a larger positive short-run coefficient than a negative long-run coefficient. The study also revealed that while real effective exchange rates and inflation short-term hinder economic growth, gross fixed capital creation and real interest rates are the primary drivers of economic expansion. Long-term economic growth in the SSA countries is also found to be positively and significantly impacted by gross fixed capital formation. According to the study, SSA nations should manage their fiscal deficits and, in the long run, provide more funds for gross fixed capital development.

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Section: Literature Reviewmentioning

confidence: 99%

On the fiscal deficit and economic growth in sub-Saharan Africa: A new evidence from system GMM

Sore,

Ayana,

Demissie

2024

PLoS ONE

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“…Las distorsiones fiscales pueden provenir de diferentes fuentes, con la evasión, elusión e informalidad como las más evidentes y relevantes para este ejercicio. Al igual que muchos países en vía de desarrollo, la República Dominicana parece sufrir de distorsiones fiscales (Prazmowski, 2014). En 2018, la República Dominicana ocupó el lugar 129 entre 180 países en la lista de los más corruptos.…”

Section: La Curva De Laffer En La República Dominicanaunclassified

Distorsiones fiscales y la curva de Laffer en la República Dominicana

Prazmowski¹

2020

cys

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Este artículo estima una curva de Laffer para la República Dominicana utilizando datos anuales desde el año 1955 hasta el 2018. Los resultados indican que la presión tributaria que maximizaría las recaudaciones fiscales es de aproximadamente un 20 %, superior al promedio histórico de 15 %. La baja presión tributaria es en parte el resultado de distorsiones fiscales que incluyen evasión, elución e informalidad. Se estima que dichas distorsiones son de aproximadamente un 60 % y su evolución histórica se corresponde con numerosos episodios, incluyendo más de veinte reformas tributarias y cinco acuerdos de estabilización con el Fondo Monetario Internacional (FMI). Las conclusiones pueden ser útiles para el diseño e implementación de políticas fiscales en general y tributarias en particular.

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“…In an analysis of the importance of infrastructure on growth for a sample of 75 countries, Esfahani and Ramírez (2003) note that the positive influence of infrastructure is greater than its generation cost. Regarding the effect of taxation, Prazmowski (2014) in an analysis for the Dominican Republic notes that an increase in public expenditure financed by an increase in the tax burden does not promote economic growth. Based on analysis for the European countries, Romero-Ávila and Strauch (2008) find evidence that public investment positively affects growth, while direct taxation has negative effect on growth.…”

Section: Introductionmentioning

confidence: 99%

The effect of infrastructure and taxation on economic growth: new empirical assessment

Almeida

Mendonça

2019

JES

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Purpose The purpose of this paper is to contribute to the empirical literature that analyzes the effect of the core infrastructure (telecommunication, electricity and transportation) and indirect taxation on economic growth. Design/methodology/approach The authors present empirical evidence through panel data analysis based on a comprehensive sample of countries (96) over a long period of time (1976 to 2014). Findings The findings confirm the assumption that the core of infrastructure is essential to promote economic growth. Furthermore, indirect taxation is not a tool capable of stimulating growth. In particular, new sectors of the core of infrastructure, such as the internet and mobile telephony, are capable of expanding the effect of infrastructure on growth. Originality/value Based on a sample of 74 countries, we include new infrastructure sectors into the analysis (transportation, fixed telephony, mobile telephony and internet), and verify changes from the 1990s.

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Ricardian equivalence and fiscal distortions in the Dominican Republic

Cited by 5 publications

References 33 publications

On the fiscal deficit and economic growth in sub-Saharan Africa: A new evidence from system GMM

On the fiscal deficit and economic growth in sub-Saharan Africa: A new evidence from system GMM

Distorsiones fiscales y la curva de Laffer en la República Dominicana

The effect of infrastructure and taxation on economic growth: new empirical assessment

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