Public finance is not just about money. It includes all aspects of public sector finances, the structure of the public sector and fiscal institutions whose work guided by government activity objectives and rationale. Earlier thinking considered progressive income taxes a “good” tax system for developing countries. More recently, the thinking emphasized securing revenues at lower rates from broader bases (consumption and income taxes). Increased globalization challenges national tax bases and make it even more important to improve local fiscal expertise and institutions in developing countries. The public finance system of any country is both path-dependent and context-specific, reflecting the outcome of complex social and political interactions between different groups in a specific institutional context established by history and state administrative capacity.
— Suggested Readings
Bahl, Roy and Richard M. Bird (2008). “Tax Policy in Developing Countries: Looking Back—and Forward,” National Tax Journal, 61(2): 279–301. [PDF 200KB]
Bird, Ricahrd M. (2011). “Tax System Change and the Impact of Tax Research,” in E. Albi and J. Martinez-Vazquez (eds.), The Elgar Guide to Tax Systems. Cheltenham, UK: Edward Elgar.
Grown, Caren, and Imraan Valodia. (2010). Taxation and gender equity a comparative analysis of direct and indirect taxes in developing and developed countries. London: Routledge. (Résumé en français disponible ici)
McLure, Charles E., Jr. (2006). “Transfer Pricing and Tax Havens: Mending the LDC Revenue Net,” in J. Alm, J. Martinez-Vazquez, and M. Rider (eds.), The Challenges of Tax Reform in the Global Economy. Berlin: Springer Verlag.
Oates, Wallace E. (2008). “On the Evolution of Fiscal Federalism: Theory and Institutions,” National Tax Journal, 61(2): 313–34. [PDF 230KB]
Slemrod, Joel and Shlomo Yitzhaki (2001). “Integrating Expenditure and Tax Decisions: The Marginal Cost of Funds and the Marginal Benefit of Projects” National Tax Journal, 54(2): 189–201. [PDF 230]