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Does Household Tax Burden Have an Impact on Individuals’ Savings in Banks? The Case of Ukraine Cover

Does Household Tax Burden Have an Impact on Individuals’ Savings in Banks? The Case of Ukraine

Central European Economic Journal
Volume 8 (2021): Issue 55 (January 2021)
By: Gennadiy Sudak and  Savchenko Yuliia  
Open Access
|Dec 2021

Figures & Tables

Figure 1

Effective tax burden on households in Ukraine in years 2008–2019Source: Created by the authors with data from the State Treasury Service of Ukraine
Effective tax burden on households in Ukraine in years 2008–2019Source: Created by the authors with data from the State Treasury Service of Ukraine

Figure 2

Effective tax burden and household investments in the form of bank deposits in Ukraine in 2008–2019Source: Created by the authors with data from the State Treasury Service of Ukraine, National Bank of Ukraine
Effective tax burden and household investments in the form of bank deposits in Ukraine in 2008–2019Source: Created by the authors with data from the State Treasury Service of Ukraine, National Bank of Ukraine

The structure of household spending in Ukraine in 2008–2019

Years200820092010201120122013201420152016201720182019
Categories (%)
Food and soft drinks (%)48,9050,0051,6051,3050,1050,1051,9053,1049,8047,9047,7046,60
Alcoholic beverages, tobacco products (%)2,203,203,403,403,503,503,403,302,903,103,403,20
Clothes and shoes (%)5,905,606,005,706,105,906,005,705,605,505,405,50
Housing, water, electricity, gas and other fuels (%)9,109,409,209,609,909,509,4011,7016,0017,0015,2014,60
Household items and appliances, current housing maintenance (%)2,802,302,302,202,302,302,302,001,702,002,101,80
Health care (%)2,703,103,203,203,403,403,603,704,203,804,004,10
Transport (%)4,003,803,704,004,304,304,303,703,603,703,704,80
Communication (%)2,302,502,702,602,802,802,802,402,302,402,602,80
Recreation and culture (%)2,501,801,801,902,002,101,801,501,401,601,801,60
Education (%)1,301,301,301,301,301,201,101,101,001,101,001,10
Hotels and restaurants (%)2,402,502,402,502,502,502,002,002,202,302,402,60
Other goods and services (%)2,102,302,302,402,602,602,702,702,502,502,702,60
Non-consumer aggregate costs (%)13,8012,2010,109,909,209,808,407,106,807,108,008,70

Results of first hypothesis test

Coefficient (standard error)t value
(Intercept)0.008*** (0.002)26.614
Deposits0.023*** (0.0111)4.373
Change in taxation−0.311# (0.477)−1.891
DID0.044# (0.332)1.741
Multiple R20.754
Adjusted R20.6617
F-statistic8.172***

Description of the results for hypothesis 2

Dependent variable
Household savings in the bank deposits
PoolingRandom effectsFixed effects
Nominal personal income tax burden−0.118** (0.045)−0.111* (0.022)−0.211** (0.048)
Share of shadow economy0.101** (0.048)0.002 (0.022)−0.008** (0.003)
Inflation rate0.231 (0.188)0.222 (0.167)−0.308 (0.243)
Changes in income taxation rules (dummy)−0.202 (0.118)−0.011 (0.018)−0.101 (0.061)
Observations211221122112
R20.3880.2980.589
Adjusted R20.3640.2880.549
F-statistic19.3***1.321.6***
DOI: https://doi.org/10.2478/ceej-2021-0025 | Journal eISSN: 2543-6821 | Journal ISSN: 2544-9001
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Language: English
Page range: 378 - 389
Published on: Dec 28, 2021
Published by: Faculty of Economic Sciences, University of Warsaw
In partnership with: Paradigm Publishing Services
Publication frequency: 1 issue per year
Keywords:
direct taxes,
indirect taxes,
personal income tax,
government revenue,
taxable income,
effective tax burden,
consumption,
income structure,
spending structure,
savings,
bank deposits,
Ukraine
Related subjects:
Business and economics,
Political economics,
Economic theory, systems and structures,
Microeconomics,
Macroeconomics,
Economic policy

© 2021 Gennadiy Sudak, Savchenko Yuliia, published by Faculty of Economic Sciences, University of Warsaw
This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

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