Modelling Tax-Consumption Relationship : An Empirical Evidence from Asia

Tan, Shu Hui and Muhammad Asraf, Bin Abdullah (2019) Modelling Tax-Consumption Relationship : An Empirical Evidence from Asia. Trends In Undergraduate Research, 2 (2). pp. 8-14. ISSN 2637-093X

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Abstract

This study examines the impact of taxation on consumption behaviour by focusing on selected countries from Asia. The study adopts panel fixed effect and random estimators to gauge the influence of tax on consumption expenditures.Findings of the study support negative influence of tax on household consumption. The finding is parallel with the absolute income hypothesis that high volume of tax collected from the public results in falling households’ disposable incomes, hence downwardly affecting households’ consumption levels. The study’s finding implies the importance of carefully observing an appropriate tax policy that suit the country’s level of development in order to promote high rates of economic growth and consumption.

Item Type: Article
Uncontrolled Keywords: Tax revenue; Fiscal policy; Government revenues; Household consumption; Public Economics, unimas, university, universiti, Borneo, Malaysia, Sarawak, Kuching, Samarahan, ipta, education, research, Universiti Malaysia Sarawak.
Subjects: H Social Sciences > HB Economic Theory
H Social Sciences > HJ Public Finance
Divisions: Academic Faculties, Institutes and Centres > Faculty of Economics and Business
Depositing User: Abdullah
Date Deposited: 23 Jan 2020 06:25
Last Modified: 27 Apr 2021 16:40
URI: http://ir.unimas.my/id/eprint/28794

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