Taxation and Income Inequality: Empirical Evidence from Pakistan
Abstract:The study's main objective was to probe the empirical interaction among both taxation and income inequality in Pakistan. ADF unit root test, ARDL/ Bound Co-integration test, and Diagnostic Test have been applied to assess time- series from 1979 to 2020. Empirical results indicated that tax revenues (TR) and income taxes (TINCOM) in short run have statistical insignificant influence on GINI, whereas in long run, they have such a statistical significant negative consequence. However, in short and long run, taxes… Show more
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