Does petroleum tax revenue drive sales tax effort of Indian states? A stochastic frontier approach

2020 ◽  
Author(s):  
Avipsa Mohanty ◽  
Dinabandhu Sethi ◽  
Asit Ranjan Mohanty
Keyword(s):  
Stochastic Frontier ◽  
Sales Tax ◽  
Tax Revenue ◽  
Stochastic Frontier Approach ◽  
Indian States ◽  
Tax Effort

Tax Effort of the Indian States from 2001–2002 to 2016–2017: A Stochastic Frontier Approach

2021 ◽  
pp. 097639962110270
Author(s):  
Ganesh Kawadia ◽  
Ankit Kumar Suryawanshi
Keyword(s):  
Data Model ◽  
Labour Force ◽  
Stochastic Frontier ◽  
Bank Credit ◽  
Tax Revenue ◽  
Stochastic Frontier Approach ◽  
Indian States ◽  
Goods And Services ◽  
Tax Effort ◽  
Tax Capacity

This article estimates the tax capacity and tax effort of 17 major states of India from 2001–2002 to 2016–2017 using the stochastic frontier panel data model. It is found that per capita income, agriculture activity, infrastructure, labour force and bank credit are the significant determinants of tax capacity, while social sector spending and central transfer to states are significant in determining tax effort. The Goods and Services Tax has reduced the states’ tax powers. Therefore, the states are highly dependent on their limited legislative taxes for revenue mobilization. However, there is little scope for the subnational governments to increase tax revenue as all states have achieved at least 90% of their tax potential.

Why Tax Effort Falls Short of Tax Capacity in Indian States

2016 ◽  
Vol 45 (2) ◽  
pp. 232-259 ◽  
Author(s):  
Sandhya Garg ◽  
Ashima Goyal ◽  
Rupayan Pal
Keyword(s):  
Stochastic Frontier Analysis ◽  
Political Competition ◽  
Stochastic Frontier ◽  
Positive Association ◽  
Negative Association ◽  
Intergovernmental Transfers ◽  
Indian States ◽  
Frontier Analysis ◽  
Tax Effort ◽  
Tax Capacity

This article attempts to measure tax capacity and tax effort of fourteen major Indian states from 1991–1992 to 2010–2011 using stochastic frontier analysis. It shows that the variation across states in tax effort is wide and increasing over time. While per capita gross state domestic product, literacy rate, and labor force participation have positive association with tax capacity, a greater share of agriculture has negative association. Furthermore, intergovernmental transfers, given tax capacity, have negative association with tax effort of states. Expenditure on debt repayment is also adversely associated with tax effort but to a lower extent than outstanding liabilities. Enactment of Fiscal Responsibility and Budget Management Act is associated with improvement in states’ tax effort. Both within-state political competition and governance indicators have positive association on tax effort.

scholarly journals Agricultural Technical Efficiency of Smallholder Farmers in Ethiopia: A Stochastic Frontier Approach

Land ◽  
2021 ◽  
Vol 10 (3) ◽  
pp. 246
Author(s):  
Markose Chekol Zewdie ◽  
Michele Moretti ◽  
Daregot Berihun Tenessa ◽  
Zemen Ayalew Ayele ◽  
Jan Nyssen ◽  
...  
Keyword(s):  
Technical Efficiency ◽  
Crop Production ◽  
Large Scale ◽  
Positive Impact ◽  
Smallholder Farmers ◽  
Stochastic Frontier ◽  
Crop Productivity ◽  
Small Scale ◽  
Stochastic Frontier Approach ◽  
Small Scale Irrigation

In the past decade, to improve crop production and productivity, Ethiopia has embarked on an ambitious irrigation farming expansion program and has introduced new large- and small-scale irrigation initiatives. However, in Ethiopia, poverty remains a challenge, and crop productivity per unit area of land is very low. Literature on the technical efficiency (TE) of large-scale and small-scale irrigation user farmers as compared to the non-user farmers in Ethiopia is also limited. Investigating smallholder farmers’ TE level and its principal determinants is very important to increase crop production and productivity and to improve smallholder farmers’ livelihood and food security. Using 1026 household-level cross-section data, this study adopts a technology flexible stochastic frontier approach to examine agricultural TE of large-scale irrigation users, small-scale irrigation users and non-user farmers in Ethiopia. The results indicate that, due to poor extension services and old-style agronomic practices, the mean TE of farmers is very low (44.33%), implying that there is a wider room for increasing crop production in the study areas through increasing the TE of smallholder farmers without additional investment in novel agricultural technologies. Results also show that large-scale irrigation user farmers (21.05%) are less technically efficient than small-scale irrigation user farmers (60.29%). However, improving irrigation infrastructure shifts the frontier up and has a positive impact on smallholder farmers’ output.

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