This paper presents new evidence on the study of income mobility in Ecuador over the period 2004–11. We utilize longitudinal data of individual income tax returns to measure income mobility both at the top and at the middle of the income distribution...
This paper presents the findings from a feasibility study on the potential for developing a static tax-benefit microsimulation model for Tanzania. The paper provides an account of the current tax-benefit system in Tanzania and introduces the survey...
The existing literature on optimal taxation typically assumes there exists a capacity to implement complex tax schemes, which is not necessarily the case for many developing countries. We examine the determinants of optimal redistributive policies in...
This paper explores the effect of party system institutionalization on the reliance of tax systems on the personal income tax. As a first step, the paper re-examines the relationship between party system institutionalization and taxation patterns...
Uganda, with a fiscal deficit of 5.6% in 2023, has increasingly turned to local resources to make up for its revenue shortfall since the World Bank...
South Africa faces a dual challenge of limited fiscal space—the need to raise sufficient revenues to finance public services—and high levels of...
The COVID-19 pandemic increased public debt and changed the income distribution in many countries. We use a numerical simulation approach to derive optimal nonlinear marginal tax rates for the pre-crisis and crisis periods. We contribute to the...
Although the effect of fiscal drag is well studied in the industrialized world, empirical evidence from developing economies remains limited. Against this backdrop, this study aims to explore the effect of fiscal drag on income distribution and work...
Establishing an equitable and efficient tax system is essential for reducing poverty, combating inequality, and fostering sustainable economic growth. Rwanda’s government has recognized this and implemented significant changes to the personal income...
Part of Journal Special Issue Fiscal state capacity
The origins of fiscal capacity have traditionally been linked to warfare and democratization. However, non-democratic states also invest in fiscal capacity, even in times of peace. In fact, the majority of income taxes—a cornerstone of government...
A common claim in the policy discourse is that a government wishing to achieve equality of opportunity should use public provision of education for equalisation of opportunities rather than income taxation, which only equalizes incomes. We develop a...
View the latest TAZMOD country report here. This report documents TAZMOD, the SOUTHMOD model developed for Tanzania. This work was carried out by University of Dar es Salaam in collaboration with the project partners in the scope of the SOUTHMOD...
The ability to raise revenues from taxes – called “fiscal capacity” – is a crucial aspect for the functioning of any state. Being able to tax citizens...
How does the public provision of education and the deployment of distortionary tax and subsidy instruments differ when the government’s objective is conventional welfarist compared to when the objective is the non-welfarist one of equality of...
In the beginning of the 1980s, Cameroon witnessed a sustained rate of growth, associated essentially with the boom in the oil sector. Increased budgetary and extra-budgetary resources generated by this sector helped to raise the investment rate in...
The reduction of poverty, and more recently inequality, are pressing concerns in many low- and middle-income countries, not in the least as a result of the Sustainable Development Goals committing countries to significant improvements by 2030...
This paper provides an account of a South African tax-benefit microsimulation model—SAMOD—which has been developed for use by government over the past ten years. The two datasets that underpin the current version of SAMOD are introduced, and the...
The existing literature on optimal taxation typically assumes there exists a capacity to implement complex tax schemes, which is not necessarily the case for many developing countries. We examine the determinants of optimal redistributive policies in...
Launched on 1 September 2024, South Africa's two-pot retirement system is designed to offer greater flexibility in managing retirement savings. This...
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