a Department of Economics and Finance, University of Houston-Clear Lake, Houston, TX 77058, U.S.A.
b Southwest Medical Center, Austin, TX 78731, U.S.A.
Abstract:
This paper reports on a study that examines how tax revenue instability can be minimized by a developing country. The empirical analysis employed in the study identifies a combination of taxes that can be used to obtain both an acceptable rate of growth and the minimum variability of receipts for that rate of growth in revenues. An analysis of empirical results demonstrates how a government can have a growing, but relatively stable tax structure.