The empirical research is meaningful to analyze data through econometric models. This approach provides tools to assess the impact of fiscal stimulas or revenue collection through tax changes on economic growth.

@Yadav Sharma Gaudel But, the sin taxes are a low % of the total taxes and it may not be representative. What econometric models would you suggest? Do you believe cointegration and causality is a good fit?

@Alvaro.. Sin or vice tax is important for controlling harmful goods to individuals and societies. The cointegration and causality tests are appropriate and useful to reveal the presence of a longterm connection between cointegrated variables.

Theoritically, the sin tax collection increases as the consumption of alchohal and tobacco increases. It justifies that both variables move in the same direction. In order to insert the time-series data, in r model we should check multicollinearity problem .between alchohal and tobacco

Yadav Sharma Gaudel With no intent to offense, I know that sin taxes collection move in literally the same way as tobacco and alcohol because it basically is the sum of both. Obviously they are going to move equally because it is the sum. However, I appreciate your recommendation of using the cointegration+causality model to plot time series data. I will as well use your recommendation of checking the tax changes related to legislation throughout the time period.

The research in tax collection and econometrics can be very meaningful. The study on these topics could provide new insights, improve policy effectiveness, or enhance tax system efficiency. The key is ensuring rigorous methodology and clear practical implications of the research.

Relevance to Policy and Economy

• Improving Tax Compliance: Research that aid in identifying strategies to increase voluntary compliance can lead to more effective tax collection.
• Revenue Forecasting: Econometric models that predict tax revenue help governments plan budgets and allocate resources efficiently.
• Tax Policy Analysis: Evaluating the impact of tax policies (e.g., GST, income tax, corporate tax) on economic growth, income distribution, and business investment is highly relevant.

Methodological Strength

• Data Quality & Scope: Research using high-quality, large datasets (e.g., tax records, household surveys) leads to meaningful outcomes.
• Robust Econometric Techniques: Using methods like panel data analysis, time series models, instrumental variables, and causal inference fortifies research credibility.
• Comparative or Experimental Studies: Studies that compare tax collection mechanisms across countries or conduct field experiments (e.g., randomised controlled trials on tax audits) provide valuable insights.

Contribution to Existing Knowledge

• Filling Gaps in Literature: If the research explores understudied areas (e.g., digital taxation, informal sector taxation), it could prove to be more meaningful.
• Tackling Modern Challenges: Research that incorporates new trends (e.g., cryptocurrency taxation, automated tax systems, or behavioural economics in tax compliance) adds value to studies.
• Interdisciplinary Insights: Blending tax collection with behavioural economics, public finance, or machine learning enhances impact.

Practical Implications

• Policy Recommendations: Research leading to actionable policy suggestions has enhanced real-world impact.
• Efficiency Gains: If the findings aid in reducing tax evasion, lower collection costs, or improve taxpayer services, the research is highly relevant.
• Fairness & Equity Considerations: Research that ensures tax burdens are progressively distributed contributes to social and economic stability.

Deepak Pande By using artificial intelligence to answer random questions you find on the initial webpage you lie to no one rather than yourself. Answers who are AI generated provide nothing else than empty answers which help nothing. But, however, thanks for at least taking the time to copypaste it here.

Hello Alvaro,

Thanks for your observation. As far as responding to the random questions is concerned, it’s individual choice. AI could be used to generate the ideas followed by own contents. Is there any restriction on use of AI? These tools are there to be used to get meaningful information. If you find them empty ones, it could be your problem. You can always choose to ignore it, rather than being critical about it. It’s an open access AI and no restriction for anyone to use it. Let audience decide whether it is useful or not.

There's no restriction in the use of AI. There's no restriction on you answering any question. However, I'm the audience here, the one asking. I do not find it helpful. I find them empty because it hasn't even suggested a solution and has spend 3/4 of the message talking of the positive benefits of the study I'm doing, those I already know. If you really wanted to help the scientific community you'd rather use your head and not some AI generated response.

If you are trying to engage in as much questions as possible in order to get R.I score let me tell you that they aren't taken into account. As well, any PhD program will reject your application if it sees your contributions to economic communities are basically AI. There's a difference between getting "some help" from AI and copypasting what it says and not even reading what you copypasted.

Hope this clears your minds and changes your opinion!

Good you got the clarity on use of AI for idea generation. Perhaps, you are wasting your precious energy and time in reading the extraneous responses and spending time in responding to not useful information. If you make better use of time, you would get meaningful contents for your study.

People make comments based on perception and you appear to be one of them. RI score or getting admission into PhD - all is irrelevant for ma. By the way, don’t worry about others whether they get admission or enhance RI score or copy paste. Your are not an admin nor an auditor to carry out auditing task of the contents.

Haven’t responded to your research not it was intended specifically for you. Blabbering never helps anyone and suggest to apply your mind in the meaningful material rather than going after random questions or responses posted on the platform. Trust it will get into your head and will focus on own research, rather than pointing fault in other‘s work/post. It would be in your interest to stop venting out frustration on the posts.

Deepak Pande this is the last response I'll be putting cause it makes no sense to keep answering to someone who doesn't understand a point as simple as the one I'm trying to make. Basically "waste precious time" in answering someone who answered MY post and MY question, not a "extraneous" one. I have no frustration AT ALL. Really happy with using AI to help me develop tasks that are time-taking rather than it answering questions I should be an expert.

Just as a comment, why would I put a question in a webpage to get answers from chatgpt if I can basically put my question directly in chatgpt myself? Well, maybe because someone expert on that topic may be useful...maybe...

Spend a great weekend!

It is rather easy to find-out relations between different taxes. You can simply plot them or calculate correlations. In your case, I would first try whether there are correlations between the sin taxes.

Ithink that your problem is due to a theory-less (not to say: brainless) application of econometric methods. What is really the aim of your study? What if you find, by accident, some statistical relations between different taxes?

you should accept the non-results of your estimates as a hint that alcohol and tobacco taxes are not dependent on other taxes or their tax base, respectively. I see no reason for a relation of, for examplle, between tobacco tax and income tax or VAT (although tobacco sales are - only very low - part of the VAT base).

Thanks for your recommendation Anton. What I try to find is if there is a l/t relationship between all tax colection and sin tax collection. I think i'll find no existant relationship as they account for only 2% of entire tax collection. However, thank you for your recommendations.I'll take into account the non-relation acceptance you tell!

As sin taxes are part of total taxes, there will always likely be a slight correlation between the two. To "switch-off" this (definitional) bias, one should, in principle, find-out the cor-relation between sin taxes and total taxes minus sin taxes. But, with the low share of sin taxes, this would not change much.

You should be glad about your non-results. If you had got a clear statistical relation, this would likely have been due to trended tax variables, and to interpret such a result as an influence of one on the other would be a serious mistake.

Research on tax collection using econometric methods is meaningful as it quantifies the effectiveness of tax policies, detects inefficiencies or evasion, and provides empirical support for fiscal reforms that improve revenue generation and governance.

Research on tax collection using econometrics is meaningful as it empirically evaluates tax efficiency, compliance behavior, revenue forecasting, and policy impacts, providing evidence-based insights for improving tax systems and ensuring fiscal sustainability in both developing and advanced economies.