The growth and variability of regional taxes: an application to Italy

Abstract

The growth and variability of regional taxes: an application to Italy. Regional Studies. This paper investigates the potential\ud long-term growth and short-term cyclical stability of the Italian regional tax system. Short- and long-run elasticities with\ud respect to regional gross domestic product (GDP) are estimated between 2001 and 2012 for the surtax on central\ud personal income tax (RPIT) and for the regional tax on productive activities (RTPA). Cyclical reactions are more marked\ud for the RTPA and higher in the southern regions. Significant long-run growth of the RPIT and RTPA, on the other hand,\ud is found only in the northern regions. The results suggest that the behaviour of regional taxes may increase the Italian\ud north–south gap and cast some doubt on these taxes in financing essential public services, such as health, in each region

Exploring health outcomes by stochastic multicriteria acceptability analysis: An application to Italian regions

“…However, given the heterogeneity of the Italian regions in economic, social and demographic terms, these two regional taxes are not sufficient to finance the whole health system. Since both RTPA and RPIT are positively related to per capita GDP and their revenues greatly vary among Italian regions ( Lagravinese, Liberati, & Sacchi, 2018 ), this requires an equalization fund (funded by a system of VAT revenue-sharing and by the tax on petrol) to compensate for different regional fiscal capacities ( Cavalieri & Ferrante, 2016 ).…”

Tax buoyancy in OECD countries: New empirical evidence

“…In recent years, international organizations, national governments, and academics have shown a renewed interest in the way in which tax revenues react to the business cycle, especially during economic crises (Arnold et al, 2011;Acosta-Ormaechea and Yoo, 2012;Gemmell et al, 2014;Baiardi et al, 2018;Aizenman et al, 2019). Measuring this reaction is crucial both for monitoring and forecasting governments" public finances, as it helps to predict how to implement stabilization policies in response to expansionary or contractionary stages of the economic cycle (Blanchard and Perotti, 2002;Arachi et al, 2015;Lagravinese et al, 2018), and for the general sustainability of public finances. This issue has even greater importance in the presence of financial stressas in the last decadewhere the tax revenue management has been affected by a certain degree of uncertainty and instability.…”

“…For example, many studies have estimated the elasticity of single taxes (e.g. Huton and Lambert, 1980;Fries et al, 1982;Clausing, 2007), while other contributions have provided either case-study analyses (Sobel and Holcombe, 2006;Dye 2004;Bruce et al, 2006;Wolswijk 2009;Poghosyan, 2011;Koester and Prismeier, 2012;Havranek et al 2016;Lagravinese et al 2018) or comparative analyses of tax buoyancy and tax elasticity using different samples of countries (Sancak et al, 2010;Brückner, 2012;Fricke and Sussmuth, 2014;Belinga et al, 2014;Dudine and Jalles, 2018;Boschi and d"Addona, 2019;Mourre and Princen, 2019).…”

How the 2020 pandemic affected tax revenues in Russian regions?

“…A number of studies examine the stability of regional budget revenues and their sources, in particular, tax revenues. Lagravinese et al (2018) define the instability of tax revenues as their temporary variability. Malkina (2020b) assesses the degree of instability of the budgetary systems of Russian regions based on the standard deviation of the residuals of temporary regressions of budget revenues per capita and as a percentage of GRP.…”