Effects of flat tax reforms on economic growth in the OECD countries
Working paper
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Date
2011-06Metadata
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- Working papers (SNF) [809]
Abstract
This paper explores how a transition from a progressive to a flat tax scheme would affect economic growth in the OECD countries on the period from 1997 to 2007. A meta-regression analysis on eighteen calibration studies on flat tax reforms provides robust results of the mean tax elasticity as well as estimates for long run growth. Based on the 2006/2007 level of tax progressivity and tax elasticity, the average growth potential is found to be around 6.75 percent, translating into a growth potential of 9.16 percent in real output for the OECD area.
Publisher
SNFSeries
Working paper2011:12