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Taxation and Development

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  • Besley, Timothy J.
  • Persson, Torsten

Abstract

The central question in taxation and development is: "how does a government go from raising around 10% of GDP in taxes to raising around 40%"? This paper looks at the economic and political forces that shape the way that fiscal capacity is created and sustained. As well as reviewing the literature and evidence, it builds an overarching framework to help structure thinking on the topic.

Suggested Citation

  • Besley, Timothy J. & Persson, Torsten, 2013. "Taxation and Development," CEPR Discussion Papers 9307, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:9307
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Fahad Hassan Khan, 2014. "From revenues to democracy?," Departmental Working Papers 2014-25, The Australian National University, Arndt-Corden Department of Economics.
    2. repec:eee:exehis:v:64:y:2017:i:c:p:1-20 is not listed on IDEAS
    3. Joshua Aizenman & Yothin Jinjarak & Jungsuk Kim & Donghyun Park, 2015. "Tax Revenue Trends in Asia and Latin America: A Comparative Analysis," NBER Working Papers 21755, National Bureau of Economic Research, Inc.
    4. James Cust, 2017. "The role of governance and international norms in managing natural resources," WIDER Working Paper Series 203, World Institute for Development Economic Research (UNU-WIDER).
    5. Yew-Kwang NG, 2017. "Ten Rules for Public Economic Policy," Economic Growth Centre Working Paper Series 1703, Nanyang Technological University, School of Social Sciences, Economic Growth Centre.
    6. Brückner, Markus & Gradstein, Mark, 2013. "Exogenous volatility and the size of government in developing countries," Journal of Development Economics, Elsevier, vol. 105(C), pages 254-266.
    7. Abhijit V. Banerjee & Esther Duflo, 2014. "Under the Thumb of History? Political Institutions and the Scope for Action," Annual Review of Economics, Annual Reviews, vol. 6(1), pages 951-971, August.
    8. Julia Cage & Lucie Gadenne, 2014. "Tax Revenues, Development, and the Fiscal Cost of Trade Liberalization, 1792-2006," Sciences Po publications info:hdl:2441/4icc4hr7684, Sciences Po.
    9. Alm, James & Martinez-Vazquez, Jorge & McClellan, Chandler, 2016. "Corruption and firm tax evasion," Journal of Economic Behavior & Organization, Elsevier, vol. 124(C), pages 146-163.
    10. repec:khe:scajes:v:4:y:2018:i:1:p:21-28 is not listed on IDEAS
    11. Michael Carlos Best & Anne Brockmeyer & Henrik Jacobsen Kleven & Johannes Spinnewijn & Mazhar Waseem, 2015. "Production versus Revenue Efficiency with Limited Tax Capacity: Theory and Evidence from Pakistan," Journal of Political Economy, University of Chicago Press, vol. 123(6), pages 1311-1355.
    12. Hungerman, Daniel M., 2014. "Public goods, hidden income, and tax evasion: Some nonstandard results from the warm-glow model," Journal of Development Economics, Elsevier, vol. 109(C), pages 188-202.
    13. Jain, Sanjay & Majumdar, Sumon, 2016. "State capacity, redistributive compensation and the political economy of economic policy reform," International Review of Economics & Finance, Elsevier, vol. 42(C), pages 462-473.
    14. Gabriel Ulyssea, 2014. "Firms, Informality and Development: Theory and evidence from Brazil," Textos para discussão 632, Department of Economics PUC-Rio (Brazil).
    15. repec:eee:pubeco:v:154:y:2017:i:c:p:49-66 is not listed on IDEAS

    More about this item

    Keywords

    State Capacity; Taxation;

    JEL classification:

    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth

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