Discussion Paper
No. 2013-63 | December 10, 2013
Mihai Mutascu and Dan Danuletiu
The Literacy Impact on Tax Revenues

Abstract

The paper investigates the relationship between tax revenues and literacy level, using a panel-model approach. The dataset covers the period 1996 to 2010 and includes 123 countries. The estimations suggest that the assumed function is nonlinear, with inverted-U and U-shaped curves. More precisely, a very low literacy level is associated with reduced tax revenues. Furthermore, the government inputs increase as the literacy level increases, reaching a maximum point. Beyond this level, the tax revenues decrease even if the literacy has an ascendant tendency, registering a minimum level. Finally, the tax revenues increase in a parallel manner with the literacy index.

Data Set

JEL Classification:

I20, H20, C23

Cite As

Mihai Mutascu and Dan Danuletiu (2013). The Literacy Impact on Tax Revenues. Economics Discussion Papers, No 2013-63, Kiel Institute for the World Economy. http://www.economics-ejournal.org/economics/discussionpapers/2013-63


Comments and Questions



Anonymous - Referee report 1
January 13, 2014 - 09:54
see attached file

Mihai Mutascu - Reply to referee 1
February 26, 2014 - 20:55
Dear referee, The authors gratefully acknowledge the constructive comments on the paper entitled “The Literacy Impact on Tax Revenues” (Discussion Papers No 2013-63), offered by the anonymous referee. We have responded to all comments and generally agree with those. We express our sincere gratitude for your review, which will help to improve the quality of the paper significantly. Sincerely,Mihai Mutascu and Dan Danuletiu