Publication:
PFR Fundamentals: Tax Buoyancy

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dc.contributor.authorWorld Bank
dc.date.accessioned2025-04-29T18:02:58Z
dc.date.available2025-04-29T18:02:58Z
dc.date.issued2025-04-29
dc.description.abstractMedium-term fiscal sustainability relies on accurate projections of revenue mobilization. Assessing whether a government aligns tax mobilization with economic activity is important for prudent spending choices. Revenue projections depend on assumptions about how revenues will respond to changes in economic growth in the future, and the two concepts of tax elasticity and tax buoyancy are most used to assess this. While closely related, these two concepts are different and produce different outcomes. The objective of this note is to recommend a methodological approach for country economists to estimate buoyancy when analyzing a country’s tax systems, for example, when writing a Public Finance Review (PFR). The note presents theoretical underpinnings and describes alternative econometric approaches and data for estimating short-run and long-run tax buoyancy. Results and practical implementation of the proposed methodology are displayed.en
dc.identifierhttp://documents.worldbank.org/curated/en/099053124144112152
dc.identifier.doi10.1596/43133
dc.identifier.urihttps://hdl.handle.net/10986/43133
dc.languageEnglish
dc.language.isoen_US
dc.publisherWashington, DC: World Bank
dc.rightsCC BY-NC 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttps://creativecommons.org/licenses/by-nc/3.0/igo
dc.subjectECONOMIC GROWTH
dc.subjectFISCAL SUSTAINABILITY
dc.subjectREVENUE MOBILIZATION
dc.subjectREVENUE PROJECTIONS
dc.subjectPUBLIC FINANCE REVIEW (PFR)
dc.titlePFR Fundamentalsen
dc.title.subtitleTax Buoyancyen
dc.typeWorking Paper
dspace.entity.typePublication
okr.date.disclosure2025-04-29
okr.date.doiregistration2025-05-01T02:20:44.222900Z
okr.date.lastmodified2025-04-18T20:45:06Zen
okr.doctypePublications & Research::Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/099053124144112152
okr.guid099053124144112152
okr.identifier.docmidP175240-59c9ec0f-ca98-43ef-9cfa-2b65b4bc659e
okr.identifier.externaldocumentum40000137
okr.identifier.internaldocumentum40000137
okr.identifier.report200366
okr.import.id7243
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttps://documents.worldbank.org/curated/en/099053124144112152/pdf/P175240-59c9ec0f-ca98-43ef-9cfa-2b65b4bc659e.pdfen
okr.region.geographicalWorld
okr.sectorFY17 - Central Government (Central Agencies)
okr.sectorPublic Administration
okr.themeFY17 - Public Expenditure Policy,FY17 - Public Finance Management,FY17 - Fiscal sustainability,FY17 - Data Development and Capacity Building,FY17 - Public Expenditure Management,FY17 - Institutional strengthening and capacity building,FY17 - Fiscal Policy
okr.themeFY17 - Economic Policy,FY17 - Public Sector Management
okr.topicMacroeconomics and Economic Growth::Taxation & Subsidies
okr.topicMacroeconomics and Economic Growth::Investment and Investment Climate
okr.topicMacroeconomics and Economic Growth::Fiscal & Monetary Policy
okr.unitProsperity-Econ Pol-Mac/Fis-Tax (EMFTX)
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