Analysis of personal income taxation determinants in Croatia in long run

evidence from cointegration analysis

Irena Palić (Author), Ksenija Dumičić (Author), Barbara Grofelnik (Author)

Abstract

Personal income taxation remains an ongoing issue in Croatia. It is used as an important instrument of income redistribution. Moreover, it directly affects purchasing power of the working population. Numerous changes have been made in this type of taxation since the establishment of Croatian tax system. The aim of this paper is to analyse possible determinants of personal income taxation in Croatia. After offering brief insight into public finance theory regarding personal income taxation, the structure of personal income taxation in Croatia is explained. The empirical analysis of the determinants of personal income taxation in Croatia is conducted using cointegration analysis. Economic conditions, average monthly wage, and number of taxpayers are used as determinants of personal income tax used in this research. The cointegration analysis is conducted using monthly data from January 2008 to February 2016. The results of the research show a statistically significant negative impact of economic conditions and statistically significant positive impact of average monthly wage and number of taxpayers on personal income taxation in long run, what is in line with economic and public finance theory.

Keywords

personal income taxation determinants;economic conditions;wages;number of taxpayers;johansen cointegration approach;Croatia;

Data

Language:	English
Year of publishing:	2017
Typology:	1.01 - Original Scientific Article
Organization:	UM EPF - Faculty of Economics and Business
UDC:	331.2:336.22(497.5)
COBISS:	12857372
ISSN:	0547-3101
Parent publication:	Naše gospodarstvo
Views:	721
Downloads:	152
Average score:	0 (0 votes)
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Other data

Secondary language:	Slovenian
Secondary title:	Analiza determinant odmerjanja dohodnine na Hrvaškem na dolgi rok
Secondary abstract:	Na Hrvaškem je še vedno aktualno vprašanje o odmeri dohodnine. Uporablja se kot pomemben instrument prerazporeditve dohodka. Poleg tega neposredno vpliva na kupno moč delovnega prebivalstva. Od vzpostavitve hrvaškega davčnega sistema so bile pri tej vrsti obdavčitve uvedene številne spremembe. Namen tega prispevka je analizirati možne determinante odmerjanja dohodnine na Hrvaškem. Po kratkem vpogledu v teorijo javnih financ glede dohodnine je pojasnjena struktura dohodnine na Hrvaškem. Empirična analiza determinant odmerjanja dohodnine na Hrvaškem je bila opravljena s pomočjo kointegracijske analize. V tej raziskavi so kot dejavniki dohodnine uporabljene gospodarske razmere, povprečna mesečna plača in število davkoplačevalcev. Kointegracijska analiza se izvaja z uporabo mesečnih podatkov od januarja 2008 do februarja 2016. Rezultati raziskave kažejo na statistično pomemben negativen vpliv gospodarskih razmer in statistično pomemben pozitiven vpliv povprečne mesečne plače in števila davkoplačevalcev na dolgotrajno odmerjanje dohodnine, kar je v skladu z ekonomsko in javnofinančno teorijo.
Secondary keywords:	davki;dohodnina;ekonomske teorije;
URN:	URN:SI:UM:
Type (COBISS):	Scientific work
Pages:	str. 12-18
Volume:	ǂLetn. ǂ63
Issue:	ǂšt. ǂ3
Chronology:	2017
DOI:	10.1515/ngoe-2017-0014
ID:	10929709