The Politics of Tax Administration: Evidence from Spain
AbstractDoes there exist a connection between the political power and the tax administration? In this paper, we offer empirical evidence from Spain that there exists. First, the Spanish regional tax administration is not immune to the budgetary situation of the regional government, and tends to exert a greater (lower) effort in tax collection as the (expected) public deficit is greater (lower). At the same time, the system of unconditional grants provokes an “income effect” that disincentives the efforts carried out by the tax administration. Second, when the margin to lose a parliamentary seat in an electoral district decreases, the efforts also diminish, though this disincentive is lessened according to the parliamentary strength of the incumbent (evidence of electoral competition).
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Bibliographic InfoPaper provided by EconWPA in its series Public Economics with number 0303004.
Length: 31 pages
Date of creation: 20 Mar 2003
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Note: Type of Document - PDF; prepared on IBM PC - PC-TEX; to print on HP; pages: 31 ; figures: included
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Tax Administration; Political Economy;
Find related papers by JEL classification:
- H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
- H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
- H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
This paper has been announced in the following NEP Reports:
- NEP-ALL-2003-03-25 (All new papers)
- NEP-EEC-2003-03-25 (European Economics)
- NEP-GEO-2003-03-25 (Economic Geography)
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