Increasing Impact of Stock Market Performance on Government Tax
Revenues

D 2017

Increasing Impact of Stock Market Performance on Government Tax Revenues

PLÍHAL, Tomáš a Tomáš URBANOVSKÝ

Základní údaje

Originální název

Increasing Impact of Stock Market Performance on Government Tax Revenues

Autoři

PLÍHAL, Tomáš (203 Česká republika, garant, domácí) a Tomáš URBANOVSKÝ (203 Česká republika, domácí)

Vydání

DUBAI, ECONOMIES OF BALKAN AND EASTERN EUROPE COUNTRIES IN THE CHANGED WORLD (EBEEC), od s. 333-343, 11 s. 2017

Nakladatel

KNOWLEDGE E

Další údaje

Jazyk

angličtina

Typ výsledku

Stať ve sborníku

Obor

50206 Finance

Stát vydavatele

Spojené arabské emiráty

Utajení

není předmětem státního či obchodního tajemství

Forma vydání

elektronická verze "online"

Odkazy

URL

Kód RIV

RIV/00216224:14560/17:00099012

Organizační jednotka

Ekonomicko-správní fakulta

ISSN

DOI

http://dx.doi.org/10.18502/kss.v1i2.667

UT WoS

000417433200025

Klíčová slova anglicky

Economic growth; stock market; tax revenue; VECM; variance decomposition

Příznaky

Mezinárodní význam

Změněno: 23. 4. 2019 14:18, Mgr. Daniela Marcollová

Anotace

V originále

The aim of this paper is to investigate the relationship between fiscal policy, economic growth and stock market in the United States. This issue has gained importance in the last decade because the market has changed. A significance break has been detected which impacts the nature of the nexus between certain variables. The correlation between the tax revenues and the stock market has increased noticeably, encouraging the revision of the current approach to fiscal policy. This study examines relationship between three variables, namely real GDP, federal government current tax receipts and the stock market represented by the Wilshire 5000 Total Market Index. Quarterly data from 1971 to 2015 are used, divided into two subsets in the year 2000, because there is an obvious change in trend and volatility of the variables. The analysis uses ADF and KPSS unit root tests to find the order of the integration of the data. Subsequent analysis applies Johansen cointegration test, vector error correction model, Granger causality tests and variance decomposition analysis. The results demonstrate that the selected variables are cointegrated, and performance of the stock market significantly increases its influence on government tax revenues in the second period. The findings of this paper are significant for policy makers. Understanding how stock market development and economic growth influence tax revenues and vice versa is crucial for the efficient implementation of successful fiscal policy. Investors in the economy of the United States will be also able to benefit from these results which will help them to understand economic conditions and improve their investment decisions.

Návaznosti

MUNI/A/1025/2015, interní kód MU

Název: Hrozby a výzvy prostředí přetrvávajících nízkých úrokových sazeb pro vývoj a stabilitu finančního systému (Akronym: FinStabilita)

Investor: Masarykova univerzita, Hrozby a výzvy prostředí přetrvávajících nízkých úrokových sazeb pro vývoj a stabilitu finančního systému, DO R. 2020_Kategorie A - Specifický výzkum - Studentské výzkumné projekty

Citovat

PLÍHAL, Tomáš a Tomáš URBANOVSKÝ. Increasing Impact of Stock Market Performance on Government Tax Revenues. Online. In Karasavvoglou, A Polychronidou, P Perdiki, F. ECONOMIES OF BALKAN AND EASTERN EUROPE COUNTRIES IN THE CHANGED WORLD (EBEEC). DUBAI: KNOWLEDGE E, 2017, s. 333-343. ISSN 2518-668X. Dostupné z: https://dx.doi.org/10.18502/kss.v1i2.667.

@inproceedings{1400894,
   author = {Plíhal, Tomáš and Urbanovský, Tomáš},
   address = {DUBAI},
   booktitle = {ECONOMIES OF BALKAN AND EASTERN EUROPE COUNTRIES IN THE CHANGED WORLD (EBEEC)},
   doi = {http://dx.doi.org/10.18502/kss.v1i2.667},
   editor = {Karasavvoglou, A Polychronidou, P Perdiki, F},
   keywords = {Economic growth; stock market; tax revenue; VECM; variance decomposition},
   howpublished = {elektronická verze "online"},
   language = {eng},
   location = {DUBAI},
   pages = {333-343},
   publisher = {KNOWLEDGE E},
   title = {Increasing Impact of Stock Market Performance on Government Tax Revenues},
   url = {https://www.knepublishing.com/index.php/Kne-Social/article/view/667/2021},
   year = {2017}
}

TY  - JOUR
ID  - 1400894
AU  - Plíhal, Tomáš - Urbanovský, Tomáš
PY  - 2017
TI  - Increasing Impact of Stock Market Performance on Government Tax Revenues
PB  - KNOWLEDGE E
CY  - DUBAI
KW  - Economic growth
KW  - stock market
KW  - tax revenue
KW  - VECM
KW  - variance decomposition
UR  - https://www.knepublishing.com/index.php/Kne-Social/article/view/667/2021
L2  - https://www.knepublishing.com/index.php/Kne-Social/article/view/667/2021
N2  - The aim of this paper is to investigate the relationship between fiscal policy, economic growth and stock market in the United States. This issue has gained importance in the last decade because the market has changed. A significance break has been detected which impacts the nature of the nexus between certain variables. The correlation between the tax revenues and the stock market has increased noticeably, encouraging the revision of the current approach to fiscal policy. This study examines relationship between three variables, namely real GDP, federal government current tax receipts and the stock market represented by the Wilshire 5000 Total Market Index. Quarterly data from 1971 to 2015 are used, divided into two subsets in the year 2000, because there is an obvious change in trend and volatility of the variables. The analysis uses ADF and KPSS unit root tests to find the order of the integration of the data. Subsequent analysis applies Johansen cointegration test, vector error correction model, Granger causality tests and variance decomposition analysis. The results demonstrate that the selected variables are cointegrated, and performance of the stock market significantly increases its influence on government tax revenues in the second period. The findings of this paper are significant for policy makers. Understanding how stock market development and economic growth influence tax revenues and vice versa is crucial for the efficient implementation of successful fiscal policy. Investors in the economy of the United States will be also able to benefit from these results which will help them to understand economic conditions and improve their investment decisions.
ER  -

PLÍHAL, Tomáš a Tomáš URBANOVSKÝ. Increasing Impact of Stock Market Performance on Government Tax Revenues. Online. In Karasavvoglou, A Polychronidou, P Perdiki, F. \textit{ECONOMIES OF BALKAN AND EASTERN EUROPE COUNTRIES IN THE CHANGED WORLD (EBEEC)}. DUBAI: KNOWLEDGE E, 2017, s.~333-343. ISSN~2518-668X. Dostupné z: https://dx.doi.org/10.18502/kss.v1i2.667.

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