Fiscal Reform and its Firm-Level Effects in Eastern Europe and Central Asia
This paper reports the first empirical evidence that fiscal reform efforts in transition countries have positive effects. Using the EBRD BEEPS I and II data, reported in 1999 and 2002, rigorous econometric models are estimated showing that the share of bribes paid to tax collectors is reduced in countries with more extensive fiscal reforms. This effect controls for selection bias in the likelihood that firms are required to make unofficial payments to tax authorities. On the basis of this evidence, we now have some confidence in the success of fiscal reform efforts. In addition, we have insight regarding what forms of fiscal reform may be more successful as the share of revenues generated from direct taxes (both personal and corporate) has an impact on tax bribes.
|Date of creation:||01 Aug 2005|
|Date of revision:|
|Contact details of provider:|| Postal: 724 E. University Ave, Wyly Hall 1st Flr, Ann Arbor MI 48109|
Phone: 734 763-5020
Fax: 734 763-5850
Web page: http://www.wdi.umich.edu
More information through EDIRC
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.:
- John E. Anderson, 2003.
"Tax Offsets or Netting Operations in Post-Soviet Public Finance,"
Emerging Markets Finance and Trade,
Taylor & Francis Journals, vol. 39(3), pages 27-41, May.
- John E. Anderson, 2003. "Tax Offsets or Netting Operations in Post-Soviet Public Finance," Emerging Markets Finance and Trade, M.E. Sharpe, Inc., vol. 39(3), pages 27-41, May.
- Jorge Martinez-Vazquez & Robert McNab, 1997. "Tax Systems in Transition Economics," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper9701, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
- Clifford Gaddy & Barry W. Ickes, 1998. "To Restructure or Not to Restructure: Informal Activities and Enterprise Behavior in Transition," William Davidson Institute Working Papers Series 134, William Davidson Institute at the University of Michigan.
- Richard E. Ericson, 1991. "The Classical Soviet-Type Economy: Nature of the System and Implications for Reform," Journal of Economic Perspectives, American Economic Association, vol. 5(4), pages 11-27, Fall.
- Martinez-Vazquez, Jorge & McNab, Robert M., 2000. "The Tax Reform Experiment in Transitional Countries," National Tax Journal, National Tax Association, vol. 53(n. 2), pages 273-98, June.
- Kaufmann, Daniel & Kraay, Aart & Zoido-Lobaton, Pablo, 1999. "Governance matters," Policy Research Working Paper Series 2196, The World Bank.
- Andrei Shleifer & Robert W. Vishny, 1994. "Politicians and Firms," The Quarterly Journal of Economics, Oxford University Press, vol. 109(4), pages 995-1025.
- Vahram Stepanyan, 2003. "Reforming Tax Systems; Experience of the Baltics, Russia, and Other Countries of the Former Soviet Union," IMF Working Papers 03/173, International Monetary Fund.
- George C. Tsibouris & Vito Tanzi, 2000. "Fiscal Reform Over Ten Years of Transition," IMF Working Papers 00/113, International Monetary Fund.
- repec:rus:hseeco:130396 is not listed on IDEAS
- Henri Lorie, 2003. "Priorities for Further Fiscal Reforms in the Commonwealth of Independent States," IMF Working Papers 03/209, International Monetary Fund.
- John E. Anderson & Ã–rn B. Bodvarsson, 2005. "Tax Evasion on Gratuities," Public Finance Review, SAGE Publishing, vol. 33(4), pages 466-487, July.
When requesting a correction, please mention this item's handle: RePEc:wdi:papers:2005-800. 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: (Laurie Gendron)
If references are entirely missing, you can add them using this form.