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The Determinants of VAT Introduction : A Spatial Duration Analysis

Abstract: The spatial survival models typically impose frailties, which characterize unobserved heterogeneity, to be spatially correlated. This specification relies highly on a pre-determinate covariance structure of the errors. However, the spatial effect may not only exist in the unobserved errors, but it can also be present in the baseline hazards and the dependent variables. A new spatial survival model with these three possible spatial correlation structures is explored and used to investigate the determinants of value-added tax implementation in 92 countries over the period 1970–2008 using the proposed model. The estimation results suggest the presence of a significant copycat effect among neighboring countries for both contiguity and distance weight matrices.
Year of publication:
2012
Authors: Cizek, Pavel ; Lei, J. ; Ligthart, J.E.
Institutions: Tilburg University, Center for Economic Research
Subject: Spatial duration | MCMC | Metropolis-Hastings algorithm | Value-added tax
Extent:
application/pdf
Series:
Type of publication: Book / Working Paper
Notes:
The text is part of a series CentER Discussion Paper Number 2012-071
Classification: C11 - Bayesian Analysis ; C23 - Models with Panel Data ; C41 - Duration Analysis ; H20 - Taxation, Subsidies, and Revenue. General ; H70 - State and Local Government; Intergovernmental Relations. General
Source:
Persistent link: https://ebvufind01.dmz1.zbw.eu/10011091455
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