Republic of Lithuania: Selected Issues Paper

November 21, 2011

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Format: Chicago

Republic of Lithuania: Selected Issues Paper, (USA: International Monetary Fund, 2011) accessed November 22, 2024

Summary

This Selected Issues Paper quantifies the variability of tax elasticities in Lithuania using two alternative methods: rolling regressions and pooled mean group estimator. The analysis is motivated by the systematic variation of tax revenues observed over the economic cycle. Both methods confirm that tax elasticities moved with the cycle, which can be attributed to the procyclical tax compliance tendencies and structural composition effects across tax bases. The results of the study emphasize the importance of accounting for cyclical variation in tax elasticities when making short-term tax revenue projections.

Subject: National accounts, Personal income, Private consumption, Revenue administration, Tax elasticity, Tax policy, Taxes, Value-added tax

Keywords: Asia and Pacific, Baltics, CR, Crisis, Eastern Europe, Employment participation ratio, FDI flow, GDP, Investment ratio, ISCR, Latvia, Personal income, Private consumption, Revenue gap, Tax elasticity, Trading partner growth, Value-added tax

Publication Details

Pages:

39
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2011/327
Stock No:

1LTUEA2011003
ISBN:

9781463925253
ISSN:

1934-7685

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