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The marginal cost of public funds in Africa

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  • Warlters, Michael
  • Auriol, Emmanuelle

Abstract

The authors use a computable general equilibrium model to estimate the marginal cost of public funds (MCF) for taxes on domestic goods, exports, imports, capital, and labor in 38 African countries. The resulting MCF estimates provide directions for tax reform in Africa. The authors investigate the MCFs of hypothetical taxes in the informal sector and the impact of administrative costs. Finally, they investigate the relationship between MCF dispersion and measures of tax system inefficiency.

Suggested Citation

  • Warlters, Michael & Auriol, Emmanuelle, 2005. "The marginal cost of public funds in Africa," Policy Research Working Paper Series 3679, The World Bank.
    • Handle: RePEc:wbk:wbrwps:3679
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    References listed on IDEAS

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    Cited by:

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    2. Armando Barrientos & David Hulme, 2009. "Social Protection for the Poor and Poorest in Developing Countries: Reflections on a Quiet Revolution," Oxford Development Studies, Taylor & Francis Journals, vol. 37(4), pages 439-456.
    3. Bevan, David L., 2010. "Fiscal policy issues for Tanzania," LSE Research Online Documents on Economics 36380, London School of Economics and Political Science, LSE Library.
    4. Richard M. Bird, 2008. "Tax Challenges Facing Developing Countries," Working Papers id:1618, eSocialSciences.
    5. Aubert, Cécile & Falck, Oliver & Heblich, Stephan, . "Subsidizing National Champions: An Evolutionary Perspective," Chapters in Economics,, University of Munich, Department of Economics.
    6. Gassmann, Franziska & Mohnen, Pierre & Vinci, Vincenzo, 2016. "Institutional factors and people's preferences in social protection," MERIT Working Papers 2016-003, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    7. Vásquez Cordano, Arturo L. & Balistreri, Edward J., 2010. "The marginal cost of public funds of mineral and energy taxes in Peru," Resources Policy, Elsevier, vol. 35(4), pages 257-264, December.
    8. Miguel Niño-Zarazúa & Armando Barrientos & David Hulme & Sam Hickey, 2010. "Social protection in sub-Saharan Africa: Will the green shoots blossom?," Global Development Institute Working Paper Series 11610, GDI, The University of Manchester.
    9. Mickael Beaud & Thierry Blayac & Patrice Bougette & Soufiane Khoudmi & Philippe Mahenc & Stéphane Mussard, 2013. "Estimation du coût d'opportunité des fonds publics pour l'économie française," Studies and Syntheses 14-01, LAMETA, Universtiy of Montpellier, revised Oct 2014.
    10. Esther Duflo & Michael Kremer & Jonathan Robinson, 2011. "Nudging Farmers to Use Fertilizer: Theory and Experimental Evidence from Kenya," American Economic Review, American Economic Association, vol. 101(6), pages 2350-2390, October.
    11. Niño-Zarazúa, Miguel & Barrientos, Armando & Hickey, Samuel & Hulme, David, 2012. "Social Protection in Sub-Saharan Africa: Getting the Politics Right," World Development, Elsevier, vol. 40(1), pages 163-176.
    12. Margaret Grosh & Carlo del Ninno & Emil Tesliuc & Azedine Ouerghi, 2008. "For Protection and Promotion : The Design and Implementation of Effective Safety Nets," World Bank Publications - Books, The World Bank Group, number 6582, December.

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