Tax smoothing hypothesis: A Turkish case

Autor:	Turan Taner, Karakas Mesut, Yanikkaya Halit
Jazyk:	English<br />French
Rok vydání:	2014
Předmět:	tax smoothing hypothesis random walk co-integration Beveridge-Nelson decomposition Kalman filter Economic theory. Demography HB1-3840
Zdroj:	Panoeconomicus, Vol 61, Iss 4, Pp 487-501 (2014)
Druh dokumentu:	article
ISSN:	1452-595X 2217-2386
DOI:	10.2298/PAN1404487T
Popis:	We tested the tax smoothing hypothesis for Turkey using annual data for the period of 1949-2010. Although our preliminary estimation results imply the existence of the weak form of tax smoothing for Turkey, further tests indicate the violation of exogeneity of permanent government spending, which is a requirement for the tax smoothing hypothesis to hold. Our causality tests indicate that permanent government spending is not exogenous due to the causality running from lagged tax rates to permanent government spending. Therefore, we conclude that our results provide evidence against the tax smoothing hypothesis. Our results are important because the existence of random-walk behavior of the tax rates alone or some preliminary regressions do not guarantee the existence of tax smoothing.
Databáze:	Directory of Open Access Journals
Externí odkaz:	https://doaj.org/article/65a00ff3fbfd49f58ed634c303c2000e Zobrazit plný text záznamu View record in DOAJ