Assessment of the Government Debt Position Impact on the General Taxation Policy

Production and Cooperation in Agriculture ; Bioeconomy ; Finance and Taxes : Proceedings of the International Scientific Conference "Economic Science for Rural Development" 2015
Nadežda Semjonova

During recent financial crisis number of researchers investigated mutual influence of government debt on the fiscal policy. The present paper contributes to this topic by observational analysis of the world economics, having the goal to evaluate correlation between the value of debt and tax policy indicators over the recession period. The paper analyses public data on 176 countries, extracted from the IMF and the World Bank databases. The findings demonstrate general absence of correlation between the volumes of the state debt and the amounts of the collected taxes both in short-term and long-term perspective. This implies that world countries tend to increase debt and use refinancing to pay debt service costs to keep taxes at the present level at all costs.

Keywords
Government debt, tax policy
Hyperlink
http://www.esaf.llu.lv/getfile.php?id=1159#page=232

Semjonova, N. Assessment of the Government Debt Position Impact on the General Taxation Policy. In: Production and Cooperation in Agriculture ; Bioeconomy ; Finance and Taxes : Proceedings of the International Scientific Conference "Economic Science for Rural Development", Latvia, Jelgava, 23-24 April, 2015. Jelgava: Latvia University of Agriculture, 2015, pp.232-240. ISBN 978-9984-48-180-7. ISSN 1691-3078. e-ISSN 2255-9930.

Publication language
English (en)