Institutional quality and government efficiency

Arbeitspapier

Poorer countries have a much smaller public sector and correspondingly a smaller tax burden than richer countries, yet, their economic performance has not been necessarily better. Using a simple model, this paper suggests that the growth and welfare effects of taxation are mediated through institutional quality; consequently, optimal tax levels increase with improved institutional quality. The paper then employs firm-level perceptions on the quality of public services and on the tax burden to test some of the model's predictions. Consistent with these predictions, the paper finds that a higher level of institutional quality bolsters positive perceptions of the quality of public services while at the same time moderating the view of taxes as an obstacle to growth.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Working Paper ; No. 606

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Taxation, Subsidies, and Revenue: General ; Public Goods ; Economic Development: General ; Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
• Thema: Institutions ; Taxes ; Quality of Public Services

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Chong, Alberto ; Gradstein, Mark
• Ereignis: Veröffentlichung
• (wer): Inter-American Development Bank, Research Department
• (wo): Washington, DC
• (wann): 2007

Weitere Informationen

• Handle: http://hdl.handle.net/10419/51529
• Letzte Aktualisierung: 10.03.2025, 11:43 MEZ