Asatryan, Zareh; Bittschi, Benjamin; Doerrenberg, Philipp - 2016
We study the effect of inflowing remittances - a major source of capital for many countries - on tax-revenues and tax …-policy. Instrumenting remittances with changes in the oil-price interacted with a country's distance to oil-producing countries, we find … that remittances have a large positive effect on VAT revenues but no effect on income-tax revenues. This suggests that …
