Tax revenues, fiscal corruption and “shame” costs

Fiscal Capacity, Tax Composition and the (in)Stability of Government Revenues in the Interwar Period∗

Large changes in government revenues can have disruptive effects on the action of states and increase uncertainty in the economy. In the interwar period, and during the Great Depression years in particular, many countries experienced such events. This paper investigates how the composition of taxes and countries’ fiscal capacity interacted with economic conditions to determine the evolution of ...

Optimal Fiscal Policy With Oil Revenues

Disparities Among Cities’ Sales Tax Revenues

Under what is known as the situs rule, a 1 percent locally levied sales tax is collected by the state but returned to the jurisdiction where the sale occurred. Thus, the situs rule gives cities an incentive to promote the location of retail businesses within their boundaries—an incentive that does not exist for residential or industrial development. Although sales taxes are a modest share of to...

Time Series Modelling of Daily Tax Revenues

We provide a detailed discussion of the time series modelling of daily tax revenues. The main feature of daily tax revenue series is the pattern within calendar months. Standard seasonal time series techniques cannot be used since the number of banking days per calendar month varies and because there are two levels of seasonality: between months and within months. We start the analysis with a p...

The tax gap: America's underreported revenues