Corporate Tax Revenues of Selected European Countries Using Dynamic Conditional Correlation Approach
Corporate Tax Revenues of Selected European Countries Using Dynamic Conditional Correlation Approach

Author(s): Slavomíra Martinková, Jakub Danko
Subject(s): Micro-Economics, Methodology and research technology, Fiscal Politics / Budgeting, Accounting - Business Administration
Published by: Masarykova univerzita nakladatelství
Keywords: corporate tax revenues; dynamic conditional correlations;
Summary/Abstract: The present paper focuses on the comparison of the development of corporate tax revenue of the largest European countries for the period of 1965 - 2014, followed by identification of selected differences between the countries and characterization of causes of this different development. Different amount of the corporate tax revenue is often affected by different types of fiscal policy and existing deficit tendencies of fiscal economy of countries. The main aim of this paper is to analyze and compare the differences in the development of tax revenues between the countries themselves in space and time by using the method of dynamic conditional correlations, while interpretation of the results is based on traditional macroeconomic indicators. The method allows us to compare the development of corporate tax revenue and structure of tax components between each pair of analyzed countries separately, what is in comparison with the commonly used (e. g. panel) models considered to be its main positive aspect. A new look on the measurement and evaluation of the selected revenues allows us to explain the structure of revenue components (especially the tax ones) for the implementation and testing of fiscal consolidation.

• Details
• Contents