Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
982058 | Procedia Economics and Finance | 2012 | 8 Pages |
For a more faithful representation of the influence of fiscal policies on the macroeconomic equilibrium, this article aims, through a variation in modelling the IS/LM component which deals with the goods and services market, to capture the impact of the number of taxes on the collection rate. Additionally, these supplies us with the means to grasp the effects of the specificities of the local bureaucratic system, a system described and condemned, not only politically or informally, but also through rigorous studies, including those carried out by European institutions. In order to accurately quantify the above-mentioned relationship, the newly added collection rate function needs to fulfil a series of conditions independently of the parameter used to measure the particularities of local systems before a regression is applied, which takes into account fiscal revenues and the GDP over several years.