Open Access. Powered by Scholars. Published by Universities.®
Social and Behavioral Sciences Commons™
Open Access. Powered by Scholars. Published by Universities.®
- Keyword
-
- Budget transparency; local government budgeting (1)
- Fiscal Decentralization; Government Trust; Social Capital (1)
- Infrastructure capital; public investment; distortionary taxation; fiscal policy; Yaari-Blanchard overlapping generations (1)
- Spanish system of intergovernmental transfers; equalising transfers (1)
- Tax administration; benchmarking; developing countries (1)
Articles 1 - 20 of 20
Full-Text Articles in Social and Behavioral Sciences
Do Companies View Bribes As A Tax? Evidence On The Trade-Off Between Corporate Taxes And Corruption In The Location Of Fdi, Jorge Martinez-Vazquez, Timothy Goodspeed, Li Zhang
Do Companies View Bribes As A Tax? Evidence On The Trade-Off Between Corporate Taxes And Corruption In The Location Of Fdi, Jorge Martinez-Vazquez, Timothy Goodspeed, Li Zhang
ICEPP Working Papers
There is a large literature documenting that high host-country corporate taxes deter foreign direct investment. However, some recent papers have questioned the robustness of this result in developing countries. In this paper we investigate one possible reason: the presence of a trade-off between taxes and good governance. We find that taxes and governance interact and that taxes and corruption are substitutes so that the impact of taxes alone on FDI will be lessened when corruption is also present. Bribes and weak tax enforcement tend to reduce formal tax payments by more than the bribe, and bribery becomes the more important …
Budget Transparency In Local Governments: An Empirical Analysis, Jose Caamano-Alegre, Santiago Lago-Penas, Francisco Reyes-Santias, Aurora Santiago-Boubeta
Budget Transparency In Local Governments: An Empirical Analysis, Jose Caamano-Alegre, Santiago Lago-Penas, Francisco Reyes-Santias, Aurora Santiago-Boubeta
ICEPP Working Papers
The aim of this paper is to shed additional light on the determinants of budget transparency in local governments. Our work is based on a Likert-type survey questionnaire specifically designed to measure budget transparency in small municipalities. The questionnaire is based on the IMF’s revised Code of Good Practices on Fiscal Transparency (2007). Results from 33 Galician municipalities are used to assess its internal consistency and to test a battery of hypotheses on the determinants of budget transparency. While several previous findings of the literature are confirmed, some new results are also obtained.
The New Spanish System Of Intergovernmental Transfers, Antoni Zabalza, Julio López-Laborda
The New Spanish System Of Intergovernmental Transfers, Antoni Zabalza, Julio López-Laborda
ICEPP Working Papers
This article analyses the workings of the new Spanish system of intergovernmental transfers, which has been in operation since 2009, and compares its expected effects with those of the model that was in force until 2008. The paper considers the effects of the new model at the base year of application and the growth over time of these effects. On the positive side, the reform has significantly reduced the dispersion of the distribution of resources per unit of need. On the negative side, the system has become very complex and obscure regarding the distribution criteria it uses; also, of the …
Taxing Soft Drinks, Roy W. Bahl
Taxing Soft Drinks, Roy W. Bahl
ICEPP Working Papers
This paper reviews the practice of levying an excise tax on soft drinks in sub-saharan African countries, and evaluates this practice against theoretical norms for levying an excise tax. The question is whether such taxes are justified or whether they are discriminatory and impose a welfare cost on the country. The paper concludes that the sin tax justification does not hold for soft drinks, nor do income distribution justifications. Arguably the best reason for such a levy is revenue, but this argument is weakened by a higher price elasticity of demand than usually supposed.
Benchmarking Tax Administrations In Developing Countries: A Systemic Approach, Jamie Vazquez-Caro, Richard M. Bird
Benchmarking Tax Administrations In Developing Countries: A Systemic Approach, Jamie Vazquez-Caro, Richard M. Bird
ICEPP Working Papers
Benchmarking as a way of establishing standards for evaluating the performance of tax administrations has become increasingly popular in recent years. Two common approaches to benchmarking are ‘benchmarking by numbers’ – the quantitative approach and ‘benchmarking by (presumed) good institutional practice’ – the qualitative approach. Both these approaches consider each component or aspect of the tax administration separately. This paper suggests a contrasting approach to benchmarking, the purpose of which is less to allow others to assess the performance of a tax administration than it is to permit an administration to understand and improve its own performance. This systemic approach …
Intergovernmental Transfers In Latin America: A Policy Reform Perspective, Jorge Martinez-Vazquez, Cristian F. Sepulveda
Intergovernmental Transfers In Latin America: A Policy Reform Perspective, Jorge Martinez-Vazquez, Cristian F. Sepulveda
ICEPP Working Papers
This paper reviews some of the main issues with intergovernmental transfers in Latin America. The analysis is set against the backdrop of the basic normative principles of revenue assignments and the practice of sub-national government financing in the region. Own revenue collections and an equalization transfer program are key components of a sound sub-national fiscal structure. However, in most Latin American countries own revenue collections represent a minor share of sub-national revenues and equalization programs, if present, are generally not properly designed. Instead, sub-national finances in the region heavily rely on revenue sharing schemes with often multiple and unclear objectives …
Finances Of Urban Local Bodies In Jharkhand: Some Issues And Comparisons, Simanti Bandyopadhyay
Finances Of Urban Local Bodies In Jharkhand: Some Issues And Comparisons, Simanti Bandyopadhyay
ICEPP Working Papers
The paper brings together the information on different components of revenues and expenditures of the urban local bodies (ULBs) in Jharkhand and analyses their growth over a recent period. The performances of the ULBs are evaluated by estimating some indicators based on actual revenues and expenditures. The expenditures are also compared with the financial norms estimated for different urban services for Indian cities according to different size classes. An attempt to estimate the gross city product of each ULB in Jharkhand is also made. A broad comparison on finances and service delivery indicators of these ULBs with those in the …
Explaining Property Tax Collections In Developing Countries: The Case Of Latin America, Jorge Martinez-Vazquez, Cristian F. Sepulveda
Explaining Property Tax Collections In Developing Countries: The Case Of Latin America, Jorge Martinez-Vazquez, Cristian F. Sepulveda
ICEPP Working Papers
This paper analyzes the problem of collecting property taxes in fiscally decentralized developing economies. The property tax is arguably the most important source of own revenues for local governments around the world, and economists generally agree that, although imperfect, the property tax is a good local tax. In practice, however, the property tax does not always become a productive revenue source and local governments do not gain the fiscal autonomy required to realize the benefits of fiscal decentralization. This problem is rather common among developing economies and particularly severe in Latin America. One of the main reasons for the poor …
Program Evaluation, Performance Budgeting And Part: The U.S. Federal Government Experience, Katherine Willoughby, Paul Benson
Program Evaluation, Performance Budgeting And Part: The U.S. Federal Government Experience, Katherine Willoughby, Paul Benson
ICEPP Working Papers
An examination of the history of budget reform in the United States indicates a perpetual tug of war between the executive and legislative branches of government for power. But surprisingly, in spite of this highly charged political process, there exists a consistent and common thread of concern for improving government performance and a desire to inject more “rationality” (measurement and evaluation) into budgeting decisions. In the past century, U.S. federal budget reforms have been centralizing (the Budget Act of 1921), activity-based (performance budgeting of the 1950s), focused on program evaluation (PPBS in the 1960s), management-oriented (MBO in the early 1970s), …
The Taxation Of Gambling In Africa, Francois Vaillancourt
The Taxation Of Gambling In Africa, Francois Vaillancourt
ICEPP Working Papers
The taxation of gambling in Africa as a whole appears to have been the object of little attention. In this paper, we first present the importance of gambling for Africa from a world perspective then disaggregate that within Africa. We then turn to the nature and importance of taxation of gambling, focusing on the major markets identified in the first part of the paper. In the third part we present the available evidence on the incidence of gambling in Africa which is limited to South Africa.
Municipal Finances In Latin America: Features, Issues, And Prospects, Jorge Martinez-Vazquez
Municipal Finances In Latin America: Features, Issues, And Prospects, Jorge Martinez-Vazquez
ICEPP Working Papers
This paper takes an in-depth look at the current state of the local public finances in the Latin America region, identifies and analyzes some of the main challenges for improving efficiency, equity and effectiveness in the delivery of public services and it closes by offering a set of recommendations for policy reform.
Status Of Pri Finances In West Bengal Final Report, Sally Wallace
Status Of Pri Finances In West Bengal Final Report, Sally Wallace
ICEPP Working Papers
Rural government decentralization in West Bengal has been a focus of the state government since the state’s 1973 Panchayat Act. The three-tiered Panchayat Raj (PRI) system provides a role for governance at the district, block, and gram panchayat levels. The Government of West Bengal (GOWB) has been providing support and assistance to the PRIs to improve service delivery and governance. To date, the perceived problems related to the PRIs include a lack of fiscal decentralization to the PRIs, a lack of untied and own source revenues and expenditure authority, limited capacity especially at the GP level for meeting public service …
Gp Financial Management Capacity And Pri Financial Management Reform Efforts In West Bengal, Katherine Willoughby, Juan Luiz Gomez-Reino
Gp Financial Management Capacity And Pri Financial Management Reform Efforts In West Bengal, Katherine Willoughby, Juan Luiz Gomez-Reino
ICEPP Working Papers
The State of West Bengal in its Annual Financial Statement of 2009-2010 called for “decentralization with accountability.” In addition to an expanded welfare system and the promotion of self-reliance at the local level, the State has been concerned with improving livelihoods through significantly enhanced funding to its local governments. To be effective, decentralization should move to the level of villages in rural areas in addition to accommodating urban municipalities. The Government of West Bengal (GOWB) has a strong interest in increasing the service delivery to constituents and has encouraged development in the area of financial management by providing incentives, training, …
Decentralization In Jharkhand: Some Implications For Urban Service Delivery, Simanti Bandyopadhyay, O.P. Bohra, Aishana Sharma
Decentralization In Jharkhand: Some Implications For Urban Service Delivery, Simanti Bandyopadhyay, O.P. Bohra, Aishana Sharma
ICEPP Working Papers
The main objective of the paper is to assess the status of urban decentralization in the state of Jharkhand in India and to relate it to some major implications on service delivery. We find that while some of the functions are assigned to the local bodies on paper, none of them are transferred by official notification which is a standard practice in India. As a result the functions are performed in an arbitrary manner. The functions which are assigned, are not necessarily performed by all the local bodies. The assignment of taxes and user charges is also optional. Even the …
The Design Of A Performance-Oriented Fiscal Transfer In West Bengal, Andrey Timofeev
The Design Of A Performance-Oriented Fiscal Transfer In West Bengal, Andrey Timofeev
ICEPP Working Papers
Based on other studies in this series commissioned by DFID and the World Bank this draft report outlines a tentative proposal for a new fiscal transfer to Gram Panchayats (GPs) to phase in, as the current DFID project (Strengthening Rural Development, SRD) phases out in 2011. According to current discussions, two primary goals of the new grant appear to be 1) improvements in the organizational capacity of GPs and 2) improvements in accountability and financial management. If the new grant is to rely on the village development committees (GUS) for identification of service needs, the annual funding would have to …
In Government We Trust: The Role Of Fiscal Decentralization, Jenny Ligthart, Peter Van Oudheusden
In Government We Trust: The Role Of Fiscal Decentralization, Jenny Ligthart, Peter Van Oudheusden
ICEPP Working Papers
We measure the contribution of fiscal decentralization to trust in government. Using repeated cross-country survey data of individuals on several measures of trust in government over the 1994-2007 period, we estimate an ordered response model of the government trust and fiscal decentralization nexus. We control for unobserved country characteristics, macroeconomic determinants, and individual characteristics. Our main finding is that fiscal decentralization increases trust in government. More specifically, a one percentage point increase in fiscal decentralization causes roughly a four-fifths of a percentage point increase in government trust. The beneficial effect of fiscal decentralization on trust in government is neither limited …
Public Infrastructure Investment, Output Dynamics, And Balanced Budget Fiscal Rules, Pedro R.D. Bom, Jenny Ligthart
Public Infrastructure Investment, Output Dynamics, And Balanced Budget Fiscal Rules, Pedro R.D. Bom, Jenny Ligthart
ICEPP Working Papers
We study the dynamic output and welfare effects of public infrastructure investment under a balanced budget fiscal rule, using an overlapping generations model of a small open economy. The government finances public investment by employing distortionary labor taxes. We find a negative short-run output multiplier, which (in absolute terms) exceeds the positive long-run output multiplier. In contrast to conventional results regarding public investment shocks, we obtain dampened cycles in output and the labor tax rate. The cyclical dynamics are induced by the interaction of households' finite life spans, the wealth effect on labor supply, and the balanced budget fiscal rule. …
Designing The Local Government Enhancement Fund For The Philippines, Jorge Martinez-Vazquez, Yongzheng Liu
Designing The Local Government Enhancement Fund For The Philippines, Jorge Martinez-Vazquez, Yongzheng Liu
ICEPP Working Papers
The main transfer instrument from the central governments to local government units (LGUs) in the Philippines, the IRA (Internal Revenue Allotment), introduced in 2001, has been criticized for two main failings: its inability to equalize sufficiently, especially regarding the poorer municipalities and provinces, and that its funds have not been spent in an efficient manner. Recently LGU associations have petitioned the Government of the Philippines (GoP) for an expansion in the funding of the IRA from 40 percent of internal revenue collections to 50 percent, and several draft Bills have been prepared. There appears to be ample consensus that if …
An International Perspective On The Determinants Of Local Government Fragmentation, Jorge Martinez-Vazquez, Juan Luiz Gomez-Reino
An International Perspective On The Determinants Of Local Government Fragmentation, Jorge Martinez-Vazquez, Juan Luiz Gomez-Reino
ICEPP Working Papers
Subnational government fragmentation, associated with the small size of jurisdictions to take advantage of economies of scale in service delivery, is a commonly perceived problem in many decentralized systems around the globe. In this paper we use a large cross-section of countries to analyze the determinants of jurisdictional fragmentation along two dimensions: the number of tiers of government and the number and average size of all subnational government units. The main questions addressed in this paper are the identification of the main determinants of jurisdictional fragmentation as presently observed across countries and how well those findings line up with the …
Report On The Bihar Pri Finance Study, Mark Rider, Prabhat P. Ghosh, Shaibal Gupta
Report On The Bihar Pri Finance Study, Mark Rider, Prabhat P. Ghosh, Shaibal Gupta
ICEPP Working Papers
The Report on the Bihar Panchayat Raj Institution Finance Study examines the autonomy, capacity, and accountability of local self-governments in the State of Bihar. This report is based on data collected from a set of 3 surveys conducted on a stratified random sample of 5 Zila Parishads, 10 Panchayat Samitis, and 50 Gram Panchayats, during the period beginning on the 15th of March 2009 and ending on the 31st of July 2009. Chapter 1 describes the sampling methodology, questionnaires, and the scope of work for this study in greater detail. Chapter 2 provides an overview of recent elections in the …