Why do people pay taxes

The main goal of this study is two-fold: (1) to provide a general overview of thecontributions to the literature on the informal sector, with a special focus on the PublicChoice approach; and (2) to compare these contributions across two institutionallydifferent types of countries: developed and less developed (developing and transition)countries. The paper focuses on the criteria used to define the informal sector, therelationship between the formal and informal economy, tax evasion, and PublicChoice analysis. It is stressed throughout this paper that the distinction between thetwo types of countries is of key importance.

Informal Sector in Developed and less Developed Countries: A Literature Survey

The main goal of this study is two-fold: (1) to provide ageneral overview of the contributions to the literature on theinformal sector, with a special focus on the public choiceapproach; and (2) to compare these contributions across twoinstitutionally different types of countries: developed andless developed (developing and transition) countries. Thepaper focuses on the criteria used to define the informalsector, the relationship between the formal and informaleconomy, tax evasion, and public choice analysis. It isstressed throughout this paper that the distinction betweenthe two types of countries is of key importance.

https://www.econstor.eu/bitstream/10419/85481/1/99083.pdf

The informal sector in developed and less developed countries: A literature survey *

This chapter is concerned with the distribution of personal wealth, which usually refers to the material assets that can be sold in the marketpace, although on occasion pension rights are also included. We summarise the available evidence on wealth distribution for a number of countries. This confirms the well known fact that wealth is more unequally distributed than income, and points to a long term downward trend in wealth inequality over most of the twentieth century. We also review the various theories that help account for these feature. Lifecycle accumulation is one popular explanation of wealth differences, but inheritance is also widely recognised as playing a major role, especially at the upper end of the wealth range. A recurrent theme in work on wealth distribution is the relative importance of these two sources of wealth differences. We discuss the results of studies that assess the contributions of inheritance and lifecycle factors, and give attention also to a variety of related issues, such as the link between wealth status across generations, and the possible motives for leaving bequests.

Chapter 11 The distribution of wealth

The fundamental difficulty in empirical work on taxpayer compliance is the absence of detailed and reliable information on individual compliance choices. This paper uses data from laboratory experiments to estimate individual responses to tax, penalty , and audit rate changes , as well as to changes in government expenditures . The empirical results confirm some (although not all) theoretical predictions , and compare quantitatively with other empirical work. Taxpayer reporting increases with greater audit and penalty rates; however, these responses are not large. Compliance is also greater when individuals face a lower tax rate and when they receive something for their taxes.

Estimating the determinants of taxpayer compliance with experimental data

Unwillingness to pay: Tax evasion and public good provision

This paper analyzes the factors behind the recent growth of India`s services sector. The high growth of services output in the 1990s was mostly due to the rapid expansion of communication, banking, business services (including the IT sector) and community services. While factors such as a high income elasticity of demand for services, increasing input usage of services by other sectors, and rising exports, were important in boosting services growth in the 1990s, supply side factors including reforms and technological advances also played significant roles. Going forward, the growth potential of Indian services exports is well known, but the paper also finds considerable scope for growth in the Indian service economy provided that deregulation continues. In addition, the paper shows that employment growth in the Indian services sector has been quite modest, thus underscoring the need for industry and agriculture to also grow rapidly.

Understanding India`s Services Revolution

This paper analyzes the factors affecting portfolio equity flows into India using monthly data. Flows to India are small compared to other emerging markets, but seem to be relatively less volatile. They also seem to be quite resilient. The paper shows that portfolio flows are determined by both external and domestic factors. Among external factors, LIBOR and emerging market stock returns are important, while the primary domestic determinants are the lagged stock return and changes in credit ratings. In quantitative terms, both external and domestic factors are found to be about equally important.

Portfolio Flows into India: Do Domestic Fundamentals Matter?

https://www.imf.org/-/media/Websites/IMF/imported-full-text-pdf/external/pubs/ft/wp/2003/_wp0320.ashx

Portfolio Flows Into India : Do Domestic Fundamentals Matter?

I, INTRODUCTION This paper re-examines earlier work by Atkinson and Harrison (1978, 1979), which presented a consistent series of estate-based estimates of the distribution of wealth in England and Wales for the years 1923 to 1972,' and conducted an econometric analysis of the trends over time in the share of the top 1 percent of wealth-holders.

/pdf/trends-in-the-shares-of-top-wealth-holders-in-britain-1923-3yv1kfka8d.pdf

James P. F. Gordon

Papers

Unwillingness to pay: Tax evasion and public good provision

Understanding India`s Services Revolution

Portfolio Flows into India: Do Domestic Fundamentals Matter?

Portfolio Flows Into India : Do Domestic Fundamentals Matter?

Trends in the shares of top wealth- holders in britain, 1923-1981$