TY - BOOK ID - 85595696 TI - The Evolution of Potential VAT Revenues and C-Efficiency in Advanced Economies PY - 2017 SN - 1484310586 PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - Macroeconomics KW - Taxation KW - Production and Operations Management KW - Taxation, Subsidies, and Revenue: General KW - Business Taxes and Subsidies KW - Macroeconomics: Consumption KW - Saving KW - Wealth KW - Macroeconomics: Production KW - Efficiency KW - Optimal Taxation KW - Business Fluctuations KW - Cycles KW - Public finance & taxation KW - Tax gap KW - Value-added tax KW - Consumption KW - Output gap KW - Tax efficiency KW - Revenue performance assessment KW - Taxes KW - National accounts KW - Production KW - Tax administration and procedure KW - Spendings tax KW - Economics KW - Economic theory KW - Japan UR - https://www.unicat.be/uniCat?func=search&query=sysid:85595696 AB - To understand the cyclical movements of value-added tax (VAT) revenues in advanced economies, this paper analyzes changes in the C-efficiency ratio by decomposing it into changes in the compliance and policy gaps between 2000 and 2014. The results from a panel of EU member countries and Japan suggest that the cyclicality of C-efficiency is explained by the correlation of both gaps with the output gap. The cyclicality of the compliance gap appears to be short lived, and larger in countries with high compliance gaps. The cyclicality of the policy gaps largely reflects not changes in policy parameters, but rather, behavior-induced changes, notably in government consumption and, to a lesser degree, in the composition of household consumption. ER -