Public Economics
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VAT in developing countries: flawed, but irreplaceable
Informality, compliance costs, and weak administrative capacity all constrain the effectiveness of VAT in lower-income countries. However, it is a crucial source of revenue that is better than the alternatives, so governments should focus on reforms that make the VAT more efficient.
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Why digital transactions aren’t a silver bullet for tax compliance: Evidence from Uruguay
Electronic payment cards leave a digital trail that can be used for tax enforcement, but tax compliance may not increase if firms also trade in cash
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VAT distortions in India
When thinking about VAT incidence in countries with high registration thresholds it is important to consider the impact on VAT-unregistered firms. Their interaction with the VAT system matters for progressivity and introduces distortionary effects on product quality.
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The impacts of a non-contributory government pension in Chile
A non-contributory government pension in Chile raised life expectancy of the elderly poor, increasing food consumption and visits to health centres, and also had important knock-on effects on relatives living in the same household
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Does low state capacity set a ceiling on tax rates? Evidence from the DRC
Reducing tax rates increases tax revenues when enforcement capacity is low. However, low-capacity states can invest in tax enforcement to shift up the revenue-maximising tax rate.
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Sanitation and property tax compliance: Analysing the social contract in Brazil
A household’s access to the urban sanitation network can have a significant impact on whether it pays its taxes
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Place-based policies and development
How does place-based policy work, and what can it deliver?
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Unpredictable oil discoveries fail to deliver local development benefits
Production delays, sudden windfalls, and political reactions after discoveries create major challenges for local governments in Brazil
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Investing in prison quality: A cost-effective way to reduce recidivism
A prison construction programme in Colombia aimed at improving prison conditions reduced recidivism of released offenders and was a net benefit to society