View metadata
| dc.title | Institutional Quality and Government Efficiency |
| dc.contributor.author | Chong, Alberto E. |
| dc.contributor.author | Gradstein, Mark |
| dc.contributor.orgunit | Department of Research and Chief Economist |
| dc.date.available | 2011-09-13T00:00:00 |
| dc.date.issue | 2007-04-01T00:00:00 |
| dc.description.abstract | Poorer countries have a much smaller public sector and correspondingly a smaller tax burden than richer countries, yet, their economic performance has not been necessarily better. Using a simple model, this paper suggests that the growth and welfare effects of taxation are mediated through institutional quality; consequently, optimal tax levels increase with improved institutional quality. The paper then employs firm-level perceptions on the quality of public services and on the tax burden to test some of the model¿s predictions. Consistent with these predictions, the paper finds that a higher level of institutional quality bolsters positive perceptions of the quality of public services while at the same time moderating the view of taxes as an obstacle to growth. |
| dc.format.extent | 28 |
| dc.identifier.doi | http://dx.doi.org/10.18235/0011289 |
| dc.identifier.url | https://publications.iadb.org/publications/english/document/Institutional-Quality-and-Government-Efficiency.pdf |
| dc.language.iso | en |
| dc.medium | Adobe PDF |
| dc.publisher | Inter-American Development Bank |
| dc.subject | Public Utility |
| dc.subject | Fiscal Policy |
| dc.subject.jelcode | H20 - Taxation, Subsidies, and Revenue: General |
| dc.subject.jelcode | H41 - Public Goods |
| dc.subject.jelcode | O10 - Economic Development: General |
| dc.subject.jelcode | O17 - Formal and Informal Sectors • Shadow Economy • Institutional Arrangements |
| dc.subject.keywords | institutions, taxes, quality of public services |
| dc.type | Working Papers |
| idb.identifier.pubnumber | Working Papers |