Informal taxation is common in developing countries. Ben Olken presents facts on this new system based on 10 surveys around the world.
Informal taxation is when a community pools its resources together, outside of the formal tax system, to finance construction or maintenance of public goods. Ben Olken, of MIT, discusses his work, with Monica Singhal, on informal taxation and succinctly presents their key findings. In this video, you will find the answers to how common are informal tax systems? Are they progressive, redistributive or voluntary?