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Bureaucratic Corruption As a Constraint on Voter Choice

Author

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  • Dudley, L.
  • Montmarquette, C.

Abstract

It Has Often Been Assumed That a Country's Tax Level, Tax Structure Progressivity and After-Tax Income Distribution Are Chosen by Voters Subject Only to Their Budget Constraints. This Paper Argues That At Certain Income Levels Voters' Decisions May Be Constrained by Bureaucratic Corruption. the Theoretical Arguments Are Developed in Asymmetry Limits the Capacity of the Fiscal System to Generate Revenues by Means of Direct Taxes. This Hypothesis Is Tested Witha Sample of International Data by Means of a Simultaneous Equation Model. the Distortions Resulting From Corruption Ar Captured Through Their Effects on a Latent Variable Defined As the Overall Fiscal Structure. Evidence Is Found of Causality Running From This Latent Variable to the Level of Taxes and the Degree of After Tax Inequality.

Suggested Citation

  • Dudley, L. & Montmarquette, C., 1986. "Bureaucratic Corruption As a Constraint on Voter Choice," Cahiers de recherche 8635, Universite de Montreal, Departement de sciences economiques.
  • Handle: RePEc:mtl:montde:8635
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    File URL: http://hdl.handle.net/1866/413
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    References listed on IDEAS

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    1. Hettich, Walter & Winer, Stanley, 1984. "A positive model of tax structure," Journal of Public Economics, Elsevier, vol. 24(1), pages 67-87, June.
    2. Romer, Thomas, 1975. "Individual welfare, majority voting, and the properties of a linear income tax," Journal of Public Economics, Elsevier, vol. 4(2), pages 163-185, February.
    3. Rose-Ackerman, Susan, 1975. "The economics of corruption," Journal of Public Economics, Elsevier, vol. 4(2), pages 187-203, February.
    4. Montmarquette, Claude, 1974. "A Note on Income (Labor) Inequality: Income Tax Systems and Human Capital Theory," Journal of Political Economy, University of Chicago Press, vol. 82(3), pages 620-625, May/June.
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    6. Peltzman, Sam, 1980. "The Growth of Government," Journal of Law and Economics, University of Chicago Press, vol. 23(2), pages 209-287, October.
    7. Hettich, Walter & Winer, Stanley L, 1988. "Economic and Political Foundations of Tax Structure," American Economic Review, American Economic Association, vol. 78(4), pages 701-712, September.
    8. Allingham, Michael G. & Sandmo, Agnar, 1972. "Income tax evasion: a theoretical analysis," Journal of Public Economics, Elsevier, vol. 1(3-4), pages 323-338, November.
    9. Meltzer, Allan H & Richard, Scott F, 1981. "A Rational Theory of the Size of Government," Journal of Political Economy, University of Chicago Press, vol. 89(5), pages 914-927, October.
    10. James Kau & Paul Rubin, 1981. "The size of government," Public Choice, Springer, vol. 37(2), pages 261-274, January.
    11. Schmidt, Robert M, 1983. "Who Maximizes What? A Study in Student Time Allocation," American Economic Review, American Economic Association, vol. 73(2), pages 23-28, May.
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    Citations

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    Cited by:

    1. Jellal, Mohamed, 2009. "Bureaucracy and Corruption Taxation Proof," MPRA Paper 17177, University Library of Munich, Germany.
    2. Ventelou, Bruno, 2001. "Équilibres et stabilité de la corruption dans un modèle de croissance : l’effet de la rémunération des politiciens," L'Actualité Economique, Société Canadienne de Science Economique, vol. 77(3), pages 339-356, septembre.
    3. Marco Pani, 2011. "Hold your nose and vote: corruption and public decisions in a representative democracy," Public Choice, Springer, vol. 148(1), pages 163-196, July.
    4. Jean Cartier-Bresson, 1992. "Éléments d'analyse pour une économie de la corruption," Revue Tiers Monde, Programme National Persée, vol. 33(131), pages 581-609.
    5. Marco Pani, 2009. "Hold Your Nose and Vote; Why Do Some Democracies Tolerate Corruption?," IMF Working Papers 09/83, International Monetary Fund.
    6. Lawrence Kenny & Stanley Winer, 2006. "Tax Systems in the World: An Empirical Investigation into the Importance of Tax Bases, Administration Costs, Scale and Political Regime," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 13(2), pages 181-215, May.
    7. Jellal, Mohamed, 2009. "Informal Sector and Taxation," MPRA Paper 17129, University Library of Munich, Germany.

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