ISSN 2394-5125
 

Review Article 


INVESTIGATION OF NONLINEAR AND DYNAMIC RELATIONSHIP OF TAX REVENUE, ECONOMIC WELFARE, AND DEMOCRACY USING GMM

Hasan Farazmand.

Abstract
This article aimed to investigate the relationship between tax revenue, welfare, and democracy level in democratic and undemocratic countries. This investigation was performed by analyzing data from 77 countries for the period 2000-2015. The results obtained by dynamic panel data modeling based on the generalized method of moments (GMM) showed that there is a negative U-shaped relationship between the share of tax revenue in GDP and democracy, indicating that as political participation increases, nations tend to favor minimal states, but as we move from democracy toward authoritarianism, the share of tax revenue increases. Also, a positive relationship was observed between economic welfare and the share of tax revenues, which indicates that the share of government tax revenue increases with the improvement of economic welfare.

Key words: Tax, Welfare, Democracy, Nonlinear Model, GMM,


 
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Pubmed Style

Hasan Farazmand. INVESTIGATION OF NONLINEAR AND DYNAMIC RELATIONSHIP OF TAX REVENUE, ECONOMIC WELFARE, AND DEMOCRACY USING GMM. JCR. 2020; 7(2): 455-460. doi:10.31838/jcr.07.02.87


Web Style

Hasan Farazmand. INVESTIGATION OF NONLINEAR AND DYNAMIC RELATIONSHIP OF TAX REVENUE, ECONOMIC WELFARE, AND DEMOCRACY USING GMM. http://www.jcreview.com/?mno=88724 [Access: June 01, 2021]. doi:10.31838/jcr.07.02.87


AMA (American Medical Association) Style

Hasan Farazmand. INVESTIGATION OF NONLINEAR AND DYNAMIC RELATIONSHIP OF TAX REVENUE, ECONOMIC WELFARE, AND DEMOCRACY USING GMM. JCR. 2020; 7(2): 455-460. doi:10.31838/jcr.07.02.87



Vancouver/ICMJE Style

Hasan Farazmand. INVESTIGATION OF NONLINEAR AND DYNAMIC RELATIONSHIP OF TAX REVENUE, ECONOMIC WELFARE, AND DEMOCRACY USING GMM. JCR. (2020), [cited June 01, 2021]; 7(2): 455-460. doi:10.31838/jcr.07.02.87



Harvard Style

Hasan Farazmand (2020) INVESTIGATION OF NONLINEAR AND DYNAMIC RELATIONSHIP OF TAX REVENUE, ECONOMIC WELFARE, AND DEMOCRACY USING GMM. JCR, 7 (2), 455-460. doi:10.31838/jcr.07.02.87



Turabian Style

Hasan Farazmand. 2020. INVESTIGATION OF NONLINEAR AND DYNAMIC RELATIONSHIP OF TAX REVENUE, ECONOMIC WELFARE, AND DEMOCRACY USING GMM. Journal of Critical Reviews, 7 (2), 455-460. doi:10.31838/jcr.07.02.87



Chicago Style

Hasan Farazmand. "INVESTIGATION OF NONLINEAR AND DYNAMIC RELATIONSHIP OF TAX REVENUE, ECONOMIC WELFARE, AND DEMOCRACY USING GMM." Journal of Critical Reviews 7 (2020), 455-460. doi:10.31838/jcr.07.02.87



MLA (The Modern Language Association) Style

Hasan Farazmand. "INVESTIGATION OF NONLINEAR AND DYNAMIC RELATIONSHIP OF TAX REVENUE, ECONOMIC WELFARE, AND DEMOCRACY USING GMM." Journal of Critical Reviews 7.2 (2020), 455-460. Print. doi:10.31838/jcr.07.02.87



APA (American Psychological Association) Style

Hasan Farazmand (2020) INVESTIGATION OF NONLINEAR AND DYNAMIC RELATIONSHIP OF TAX REVENUE, ECONOMIC WELFARE, AND DEMOCRACY USING GMM. Journal of Critical Reviews, 7 (2), 455-460. doi:10.31838/jcr.07.02.87