Since 2014
Analyzing Tax Policy and Economic Growth by Using Semi-Parametric Approach
Journal of Economic and Social Thought
View Archive Info| Field | Value | |
| Title |
Analyzing Tax Policy and Economic Growth by Using Semi-Parametric Approach
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| Creator |
SHAFI, Mariuam; Department of Economics Lahore College of Women University, Lahore, Pakistan. . +0092 303 94 36 370 . maryamecono56@gmail.com ASGHAR, Zahid; Department of Statistics Quaid e Azam University,Islamabad, Pakistan. Telephone: 0092 300 91 21 940 RAZA, Saqlain; COMSATS Institute of Information Technology, Islamabad, Pakistan. saqlain.raza@comsats.edu.pk Telephone: 0092 308 43 43 796 |
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| Subject |
Spline smoothing method; Semi-parametric; Tax structure; Economic growth; Average marginal tax rate.
H26; O40; C14; H71. |
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| Description |
Abstract. Due to complexities in measuring the impact of tax policy on economic growth, there is need to explore functional relationship between response and predictors. Semi-parametric approaches are often very handy in modeling relationships which are non-linear but cant be completely described either through parametric or non-parametric approaches. To determine the effects of tax policy on economic growthfunctional, cubic smoothing spline method is used along with cross validation test to control the smoothing parameter. To replace the functional form of smoothing coefficients into linear mixed model, maximum likelihood estimation is used. Results indicate that proposed methodology is robust in determining functional form and in achieving increasing average marginal tax rates has negative impact on economic growth results. Empirical results indicate that high AMTRs and population growth rate reduce the performance of economic growth in the developing countries. A reduction on dependence of AMTRs in South Asian countries is needed.Keywords: Spline smoothing method, Semi-parametric, Tax structure, Economic growth, Average marginal tax rate.JEL. H26, O40, C14, H71.
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| Publisher |
Journal of Economic and Social Thought
Journal of Economic and Social Thought |
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| Contributor |
—
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| Date |
2016-12-18
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| Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion — |
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| Format |
application/pdf
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| Identifier |
http://www.kspjournals.org/index.php/JEST/article/view/1075
10.1453/jest.v3i4.1075 |
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| Source |
Journal of Economic and Social Thought; Vol 3, No 4 (2016): December; 521-533
Journal of Economic and Social Thought; Vol 3, No 4 (2016): December; 521-533 2149-0422 |
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| Language |
eng
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| Relation |
http://www.kspjournals.org/index.php/JEST/article/view/1075/1098
http://www.kspjournals.org/index.php/JEST/article/downloadSuppFile/1075/470 http://www.kspjournals.org/index.php/JEST/article/downloadSuppFile/1075/471 http://www.kspjournals.org/index.php/JEST/article/downloadSuppFile/1075/472 |
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| Rights |
Copyright (c) 2017 Journal of Economic and Social Thought
http://creativecommons.org/licenses/by-nc/4.0 |
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