On the Rationale for the Use of Border Taxes in Developing Countries
With reference to the size of the informal sector, Stiglitz (2003) argues that border taxes are superior to VAT in certain developing countries. By way of a quantitative example this paper shows that, while Stiglitz’ claim is probably will turn out to be correct, a large informal sector is not a sufficient condition for border taxes to be preferable to a VAT regime as shown by Keen (2006). Making the case for using border taxes also requires the plausible supplementary assumptions that (i) border taxes are associated with lower administrative costs, and (ii) that this difference is sufficiently large to justify the larger distortionary costs associated with border taxes compared to domestic taxes.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Francesco Busato & Enrico Marchetti, 2006.
"Skills, sunspots and cycles,"
Economics Working Papers
2006-07, School of Economics and Management, University of Aarhus.
- Munch, Jakob Roland & Rosholm, Michael & Svarer, Michael, 2008.
"Home ownership, job duration, and wages,"
Journal of Urban Economics,
Elsevier, vol. 63(1), pages 130-145, January.
- Jakob Roland Munch & Michael Rosholm & Michael Svarer, 2006. "Home Ownership, Job Duration, and Wages," Economics Working Papers 2006-06, School of Economics and Management, University of Aarhus.
- Jakob Roland Munch & Michael Rosholm & Michael Svarer, 2006. "Home Ownership, Job Duration, and Wages," CAM Working Papers 2006-08, University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics.
- Munch, Jakob R. & Rosholm, Michael & Svarer, Michael, 2006. "Home Ownership, Job Duration and Wages," IZA Discussion Papers 2110, Institute for the Study of Labor (IZA).
When requesting a correction, please mention this item's handle: RePEc:aah:aarhec:2006-12. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If references are entirely missing, you can add them using this form.