Power and Prosperity: Outgrowing Communist and Capitalist Dictatorships

This paper addresses vulnerability of revenue to external shocks using export composition to capture economic structure and differentiating countries according to income levels, resource endowments...

https://tandfonline.com/doi/pdf/10.1080/00220388.2016.1153071

Tax Revenue Performance and Vulnerability in Developing Countries

Even though the unequal reach of the state has become an important concern in the literature on developing democracies in Latin America, empirical measures of intracountry variation in state capacity are scarce. So far, attempts to develop valid measures of the reach of the state have often been hampered by inadequate data. Leveraging insights from national-level scholarship, this article proposes a tax-based measure to capture such intracountry variation. Drawing on a comprehensive data set of municipal finance and estimates of economic activity derived from nighttime lights, it maps state capacity in Ecuador. The article validates the measure on the basis of survey data collected by the Latin American Public Opinion Project. A multilevel analysis demonstrates that citizens tend to be more satisfied with the services provided by the state in municipalities with higher state capacity, which strengthens confidence that the measure picks up relevant differences.

/pdf/taxation-and-the-unequal-reach-of-the-state-mapping-state-44vvwigkhk.pdf

Taxation and the Unequal Reach of the State: Mapping State Capacity in Ecuador

Reassessing Tax and Development Research: A New Dataset, New Findings, and Lessons for Research

We study the effect of two tax innovations – value added taxes (VAT) and autonomous revenue authorities (ARA) – on tax revenues in sub-Saharan Africa. The dataset consists of 47 countries over 1980–2010. We find that VATs have no effect on total tax revenues, neither in the short- nor in the long-run. ARAs lead to higher tax revenues in the short- and medium-run, but the effect dissipates over time. The main conclusion is that tax innovations are not a panacea to overcome the revenue shortages in African countries, but they are helpful in the short- and medium-run.

Tax Innovations and Public Revenues in Sub-Saharan Africa

A growing body of literature suggests that political regime type matters in determining taxation. However, research on the relationship of political regimes to taxation yields mixed results. To what extent does the democratic or authoritarian character of the polity impact on the level of taxation? The paper investigates the relationship between political regimes and tax-to-gross domestic product ratio, using a panel dataset of 131 countries and covering the period 1990–2008. Findings suggest that the character of the polity affects taxation, but there is no linear trend in favour of democracy. Rather, the results indicate a U-shaped relationship between polity and tax ratio. Copyright © 2015 John Wiley & Sons, Ltd.

Do Democracies Tax More? Political Regime Type and Taxation

A growing body of literature suggests that political regime type matters in determining taxation. However, research on the relationship of political regimes to taxation yields mixed results. To what extent does the democratic or authoritarian character of the polity impact on the level of taxation? The paper investigates the relationship between political regimes and tax-to-GDP ratio, using a panel dataset of 131 countries and covering the period 1990-2008. Findings suggest that the character of the polity affects taxation, but there is no linear trend in favour of democracy. Rather, the results indicate a U-shaped relationship between polity and tax ratio.

https://papers.ssrn.com/sol3/Delivery.cfm/SSRN_ID2374403_code1578797.pdf?abstractid=1957617&mirid=2

Do semi-autonomous revenue agencies (SARAs) outperform conventional tax administrations? This paper argues that they do. Presenting the results of a panel analysis of local tax collection in Peru between 1998 and 2011, it shows that municipalities with SARAs collect more revenue than those with conventional tax administrations. In line with findings from previous research, the effect is particularly strong in the first two years of operation, but remains significantly positive in subsequent years, after a brief accommodation period. The results also indicate that SARAs generate more stable revenue, meaning that revenue volatility is less pronounced in municipalities with SARAs, which is good for budget policy and planning.

https://papers.ssrn.com/sol3/Delivery.cfm/SSRN_ID2319341_code1578797.pdf?abstractid=1961616&mirid=1&type=2

Tax Collection in Developing Countries – New Evidence on Semi-Autonomous Revenue Agencies (SARAs)

Over the last two decades, semi-autonomous revenue agencies (SARAs) have become a key element of public administration reform. They are supposed to improve revenue mobilisation and stabilise state–taxpayer relations. But do SARAs really outperform conventional tax administrations? This article argues that they do. Presenting the results of a panel analysis of local tax collection in Peru between 1998 and 2011, it shows that municipalities with SARAs collect more revenue than those with conventional tax administrations. The results also indicate that local revenue is more stable in municipalities with SARAs, which is good for budget policy and planning.

Maria Melody Garcia

Papers

Do Democracies Tax More? Political Regime Type and Taxation

Do Democracies Tax More? Political Regime Type and Taxation

Tax Collection in Developing Countries – New Evidence on Semi-Autonomous Revenue Agencies (SARAs)

Tax Collection in Developing Countries – New Evidence on Semi-Autonomous Revenue Agencies (SARAs)