Inflation, Inflationary Tax and Tax Evasion in Algeria: An Empirical Analysis of Underlying Causal Interactions
This article is an empirical study that aims to deeply examine the effects of the underlying interactions of inflation and inflationary tax on the size of tax evasion in Algeria. Accordingly, the analysis is grounded in the application of the Granger causality test within a vector autoregressive (VA...
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| Format: | Article |
| Language: | English |
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University of Banja Luka, Faculty of Economics
2024-07-01
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| Series: | Acta Economica |
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| Online Access: | https://ae.ef.unibl.org/index.php/ae/article/view/493 |
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| author | Feriel Dermechi Ahmed Zakane |
| author_facet | Feriel Dermechi Ahmed Zakane |
| author_sort | Feriel Dermechi |
| collection | DOAJ |
| description | This article is an empirical study that aims to deeply examine the effects of the underlying interactions of inflation and inflationary tax on the size of tax evasion in Algeria. Accordingly, the analysis is grounded in the application of the Granger causality test within a vector autoregressive (VAR) model, covering an annual period ranging from 1980 to 2022. The findings reveal that, in the short term, the inflation rate has a positive impact on tax evasion, whereas the inflationary tax exerts a negative influence on it. Our approach strives to interpret these findings through the lens of inflationary financing theory. This theory elucidates how the inflation rate and the implicit revenues it generates contribute to the regulation of the scope of tax evasion in the country.
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| format | Article |
| id | doaj-art-8e206b60b9b041c784fa2fbafff22b19 |
| institution | Kabale University |
| issn | 1512-858X 2232-738X |
| language | English |
| publishDate | 2024-07-01 |
| publisher | University of Banja Luka, Faculty of Economics |
| record_format | Article |
| series | Acta Economica |
| spelling | doaj-art-8e206b60b9b041c784fa2fbafff22b192025-02-11T14:25:40ZengUniversity of Banja Luka, Faculty of EconomicsActa Economica1512-858X2232-738X2024-07-01224010.7251/ACE2440119DInflation, Inflationary Tax and Tax Evasion in Algeria: An Empirical Analysis of Underlying Causal InteractionsFeriel Dermechi0https://orcid.org/0000-0002-8079-4984Ahmed Zakane1https://orcid.org/0000-0002-0349-4259National Higher School of Statistics and Applied Economics (ENSSEA), Kolea, Tipaza, AlgeriaNational Higher School of Statistics and Applied Economics (ENSSEA), Kolea, Tipaza, AlgeriaThis article is an empirical study that aims to deeply examine the effects of the underlying interactions of inflation and inflationary tax on the size of tax evasion in Algeria. Accordingly, the analysis is grounded in the application of the Granger causality test within a vector autoregressive (VAR) model, covering an annual period ranging from 1980 to 2022. The findings reveal that, in the short term, the inflation rate has a positive impact on tax evasion, whereas the inflationary tax exerts a negative influence on it. Our approach strives to interpret these findings through the lens of inflationary financing theory. This theory elucidates how the inflation rate and the implicit revenues it generates contribute to the regulation of the scope of tax evasion in the country. https://ae.ef.unibl.org/index.php/ae/article/view/493inflationinflationary taxtax evasiongranger causalityinflationary financing |
| spellingShingle | Feriel Dermechi Ahmed Zakane Inflation, Inflationary Tax and Tax Evasion in Algeria: An Empirical Analysis of Underlying Causal Interactions Acta Economica inflation inflationary tax tax evasion granger causality inflationary financing |
| title | Inflation, Inflationary Tax and Tax Evasion in Algeria: An Empirical Analysis of Underlying Causal Interactions |
| title_full | Inflation, Inflationary Tax and Tax Evasion in Algeria: An Empirical Analysis of Underlying Causal Interactions |
| title_fullStr | Inflation, Inflationary Tax and Tax Evasion in Algeria: An Empirical Analysis of Underlying Causal Interactions |
| title_full_unstemmed | Inflation, Inflationary Tax and Tax Evasion in Algeria: An Empirical Analysis of Underlying Causal Interactions |
| title_short | Inflation, Inflationary Tax and Tax Evasion in Algeria: An Empirical Analysis of Underlying Causal Interactions |
| title_sort | inflation inflationary tax and tax evasion in algeria an empirical analysis of underlying causal interactions |
| topic | inflation inflationary tax tax evasion granger causality inflationary financing |
| url | https://ae.ef.unibl.org/index.php/ae/article/view/493 |
| work_keys_str_mv | AT ferieldermechi inflationinflationarytaxandtaxevasioninalgeriaanempiricalanalysisofunderlyingcausalinteractions AT ahmedzakane inflationinflationarytaxandtaxevasioninalgeriaanempiricalanalysisofunderlyingcausalinteractions |