Tax structures in developing countries: Many puzzles and a possible explanation
Roger Gordon and
Wei Li
Journal of Public Economics, 2009, vol. 93, issue 7-8, 855-866
Abstract:
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.
Keywords: Tax; policy; in; developing; countries; Informal; economy; Inflation; Tariffs; Red; tape; Capital; taxes; Corruption (search for similar items in EconPapers)
Date: 2009
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Citations: View citations in EconPapers (346)
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Working Paper: Tax Structure in Developing Countries: Many Puzzles and a Possible Explanation (2005) 
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Persistent link: https://EconPapers.repec.org/RePEc:eee:pubeco:v:93:y:2009:i:7-8:p:855-866
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