01842cas a2200241 a 4500 AALejournalIMF011398 230101c9999 xx r poo 0 0eng d 5.00 USD 9781463925222 1018-5941 BD-DhAAL BD-DhAAL Poghosyan, Tigran. Assessing the Variability of Tax Elasticities in Lithuania / Tigran Poghosyan. Washington, D.C. : International Monetary Fund, 2011. 1 online resource (16 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper quantifies the variability of tax elasticities in Lithuania using two alternative methods: rolling regressions and pooled mean group estimator. The analysis is motivated by the systematic variation of tax revenues observed over the economic cycle in the recent past. Both methods confirm that tax elasticities moved with the cycle, which can be attributed to the procyclical tax compliance tendencies and structural composition effects across tax bases. Comparison of VAT revenue gaps across Baltic countries during the recent recovery suggests that tax revenues rebounded fastest in Estonia, followed by Lithuania and Latvia. Overall, the results of the study emphasize the importance of accounting for cyclical variation in tax elasticities when making short-term tax revenue projections. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2011/270 Full text available on IMF http://elibrary.imf.org/view/journals/001/2011/270/001.2011.issue-270-en.xml IMF e-Library