Abstract:
Tax expenditures are expected to support policies aimed at reducing income inequality and contribute to income redistribution. The purpose of this study is to empirically examine whether the two phenomena are in a causal relationship about the theoretical framework. In this context, first, the relations between tax expenditures and income distribution are theoretically evaluated. Then, the relationships between the variables are tested with dynamic panel data analysis methods using the data of 16 countries with different levels of development between 2007-2017. The study’s findings show a one-way causality relationship between tax expenditures and income inequality.
Summary
Tax expenditures are expected to support policies aimed at reducing income inequality and contribute to income redistribution. The purpose of this study is to empirically examine whether the two phenomena are in a causal relationship about the theoretical framework Authors:
- Merve KURT
- Ferdi CELIKAY