Tax structures in developing countries: Many puzzles and a possible explanation

Tax policies seen in developing countries are puzzling on many dimensions, given the sharp contrast between these policies and both those seen in developed countries and those forecast in the optimal tax literature. In this paper, we explore how forecasted policies change if firms can successfully evade taxes by conducting all business in cash, thereby avoiding any use of the financial sector. The forecasted policies are now much closer to those observed.

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Year of publication:	2009
Authors:	Gordon, Roger ; Li, Wei
Published in:	Journal of Public Economics. - Elsevier, ISSN 0047-2727. - Vol. 93.2009, 7-8, p. 855-866
Publisher:	Elsevier
Keywords:	Tax policy in developing countries Informal economy Inflation Tariffs Red tape Capital taxes Corruption

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Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005066541