Earmarking in Theory and Korean Practice
In the first part of this paper we present a non-technical analysis of earmarking. We then briefly review some international experience with earmarking and its apparent results. The main new contribution of the paper is the concluding description and evaluation of the nature, efficacy, and effects of earmarking in Korea. Earmarking – assigning revenues from designated sources to finance designated expenditures – is an old and popular practice in many countries around the world. In Section 1, we set out a taxonomy of earmarking to set the stage for discussion in Section 2 of the reasons why countries might decide to earmark particular revenues. In Section 3 we review briefly some international experience with earmarking and its apparent results. Against this general background, in Section 4, the main new contribution of the paper, we describe the perhaps surprising amount of earmarking in Korea and present a preliminary evaluation of its efficacy and effects. A brief Section 5 concludes.
|Date of creation:||02 Jun 2005|
|Date of revision:|
|Contact details of provider:|| Phone: 404-413-0235|
Web page: http://aysps.gsu.edu/isp/index.html
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.:
- Olga Lucia Acosta & Richard M. Bird, 2003. "The Dilemma of Decentralization in Colombia," International Tax Program Papers 0404, International Tax Program, Institute for International Business, Joseph L. Rotman School of Management, University of Toronto.
- David E. Sahn & Stephen D. Younger, 2000. "Expenditure incidence in Africa: microeconomic evidence," Fiscal Studies, Institute for Fiscal Studies, vol. 21(3), pages 329-347, September.
- Christine C.P. Wong & Richard M. Bird, 2005.
"China?s Fiscal System: A Work in Progress,"
International Tax Program Papers
0515, International Tax Program, Institute for International Business, Joseph L. Rotman School of Management, University of Toronto.
- Richard Bird & Christine C.P.Wong, 2005. "China's Fiscal System: A Work in Progress," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0520, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
- Margaret Wilkinson, 1994. "Paying for public spending: is there a role for earmarked taxes?," Fiscal Studies, Institute for Fiscal Studies, vol. 15(4), pages 119-35, November.
- McCleary, William, 1991. "The Earmarking of Government Revenue: A Review of Some World Bank Experience," World Bank Research Observer, World Bank Group, vol. 6(1), pages 81-104, January.
- Bos, Dieter, 2000. "Earmarked taxation: welfare versus political support," Journal of Public Economics, Elsevier, vol. 75(3), pages 439-462, March.
- Browning, Edgar K, 1975. "Collective Choice and General Fund Financing," Journal of Political Economy, University of Chicago Press, vol. 83(2), pages 377-90, April.
- James M. Buchanan & Richard A. Musgrave, 1999. "Public Finance and Public Choice: Two Contrasting Visions of the State," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262024624, June.
- Cremer, Jaques & Estache, Antonio & Seabright, Paul & DEC, 1994. "The decentralization of public services : lessons from the theory of the firm," Policy Research Working Paper Series 1345, The World Bank.
- Brett, Craig & Keen, Michael, 2000. "Political uncertainty and the earmarking of environmental taxes," Journal of Public Economics, Elsevier, vol. 75(3), pages 315-340, March.
- Castro-Leal, Florencia & Dayton, Julia & Demery, Lionel & Mehra, Kalpana, 1999. "Public Social Spending in Africa: Do the Poor Benefit?," World Bank Research Observer, World Bank Group, vol. 14(1), pages 49-72, February.
- Alm, James & Jackson, Betty & McKee, Michael, 1992. "Institutional Uncertainty and Taxpayer Compliance," American Economic Review, American Economic Association, vol. 82(4), pages 1018-26, September.
- David M. Newbery & Georgina Santos, 1999. "Road taxes, road user charges and earmarking," Fiscal Studies, Institute for Fiscal Studies, vol. 20(2), pages 103-132, June.
- Ken Gwilliam & Ajay Kumar, 2003. "How Effective Are Second-Generation Road Funds? A Preliminary Appraisal," World Bank Research Observer, World Bank Group, vol. 18(1), pages 113-128.
- Dhillon, Amrita & Perroni, Carlo, 2001. "Tax earmarking and grass-roots accountability," Economics Letters, Elsevier, vol. 72(1), pages 99-106, July.
- McCleary, William A. & Tobon, Evamaria Uribe, 1990. "Earmarking government revenues in Colombia," Policy Research Working Paper Series 425, The World Bank.
- Mwangi S. Kimenyi & Dwight R. Lee & Robert D. Tollison, 1990. "Efficient Lobbying and Earmarked Taxes," Public Finance Review, , vol. 18(1), pages 104-113, January.
- Don Fullerton, 1996.
"Why Have Separate Environmental Taxes?,"
in: Tax Policy and the Economy, Volume 10, pages 33-70
National Bureau of Economic Research, Inc.
- James M. Buchanan, 1963. "The Economics of Earmarked Taxes," Journal of Political Economy, University of Chicago Press, vol. 71, pages 457.
When requesting a correction, please mention this item's handle: RePEc:ays:ispwps:paper0515. 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: (Paul Benson)
If references are entirely missing, you can add them using this form.