New article by Mardan
The article "The unintended consequences of semi-autonomous revenue agencies" has been published in Canadian Journal of Economics.
Canadian Journal of Economics is on level 3 in the ABS Academic Journal Guide.
Mardan, Mohammed: The unintended consequences of semi-autonomous revenue agencies, Canadian Journal of Economics, 2023, 56(3), 1061-1081, Online 02.08.2023.
The past two decades have witnessed a fundamental change in how tax administrations are organized, from agencies within a ministry with little autonomy to organizations outside the institutional public service with separate legal status. This paper analyzes how a switch to a more autonomous tax administration affects a country's optimal tax system, consisting of the tax rate and the tax administration's effectiveness.
I show that the creation of a more autonomous tax administration can have the unintended effect of dwarfing the tax administration's incentive to collect taxes in developing countries, adding a novel reason for the low tax revenue collections in developing countries.