Economics, Econometrics and Finance
8 years ago

Tax rates in India found to be sustainable over time.

India studies in business and economics
Empirics on Fiscal Smoothing: Some Econometric Evidence for the Indian Economy
Narain Sinha, R. C. Sharma

Paper Summary

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Fiscal smoothing is important for a stable economy. The study tested tax-smoothing and revenue-smoothing in India from 1970 to 2001. The researchers found that tax rates in India are consistent with tax smoothing, meaning they are sustainable over time.