Analysis of Asymmetry in the Impact of Direct Taxes on Family Consumption in Algeria During the Period (1970 - 2017) Using the NARDL Model

Abstract

This study aimed at analyzing the asymmetry of the effect of direct taxes on family consumption in Algeria during the period (1970-2017), using the NARDL model. The study found that family consumption in Algeria does not respond positively with the reduction of direct tax rates, but the reduction of direct tax rates has a positive and negative impact on family consumption in Algeria. Algerian society is divided into two categories, one category of consumers whose consumer behavior reacts positively to tax incentives, and the other category of consumers whose consumer behavior reacts negatively to tax cuts.