Work

Tax collection efficiency in OECD countries improves via decentralization, simplification, digitalization and education

Year: 2022

Type: article

Abstract: This paper offers an assessment of tax administration performance and provides evidence of the relationship between fiscal decentralization (and tax structure) and the technical efficiency of tax collection. The initial stage of the investigation consists of a data envelopment analysis (DEA) to obtain technical efficiency estimates for a sample of 28 OECD countries over the period 2004–2017. In a second stage, we explore how technical efficiency is affected by fiscal decentralization and tax structure variables. The results show how the degree of fiscal decentralization has a positive and significant impact on the technical efficiency of tax collection. They also reveal a relevant role of tax structure choices and the ratio of indirect to direct taxes, which can significantly affect tax collection efficiency. Finally, we extract some policy implications.

Source: Journal of Policy Modeling

DOI: 10.1016/j.jpolmod.2022.03.003

Authors: Yolanda Ubago Martínez, Pedro Pascual Arzoz, Idoia Zabaleta Arregui

Institutions: Universidad Pública de Navarra (UPNA), Instituto de Investigación Avanzada en Empresa y Economía, Universidad de Navarra

Language: English

Topic: Taxation and Compliance Studies

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

Open Access status: hybrid

Estimated APC paid: $1,200