arise for Latina American on the opposite of Asian countries.
In the late 90s, some researchers have been interested in the stochastic frontiers models which were originally based on the measurement of the productivity of firms. Jha et al. (1999) attempted to determine the tax eﬃciency of fifteen major Indian states by a stochas- tic frontier model. They found that the poorest states have the highest tax eﬀorts. Alfirman (2003) by employing the model of Aigner, Lovell, and Schmidt (1977) assessed tax potential of Indonesian local governments and found that they did not achieve their tax potential. Barros (2005), employed a Cobb Douglas cost frontier model to measure the eﬃciency of tax oﬃces in Portugal and found that it varies between oﬃces and along the period. Pes- sino and Fenochietto (2010) developed a tax stochastic frontier analysis to determine tax potentials and tax eﬀorts for a sample of ninety-six countries (developing and developed) over a sixteen years’ period 1991/2006. They regarded tax eﬀort as the ratio of actual to potential tax collection. They used three specifications i.e. the stochastic frontier models of Battese and Coelli (1992, 1995) estimated by the maximum likelihood method. They added to the traditional variables income inequality and public expenditures in education. They found that countries with higher levels of revenue (such as OECD countries) are near their tax capacity on the opposite of countries with lower level of revenue but there are some ex- ceptions like Singapore, Hong Kong among the high income countries and Namibia, Kenya among the low income countries. They explained the ineﬃciencies in countries’ tax collection by corruption and the percentage change of consumer price index. In a second publication in 2013, the authors employed the same strategy and a Mundlack random eﬀects model to determine tax eﬀort of an enlarged sample of 113 countries. Here, they did a distinction bet- ween 17 resource depending countries
domestic revenue collection. As outcome, in our knowledge, all of the African countries have undertaken oil exploration activities except Swaziland. In 2015 and 2016, nine of the worldwide top 20 discoveries were made in Africa (PWC, 2016). There are mostly gas and account for 57% of the reserves discovered. Up to date almost all the African countries are involved in at least one oil project. Clearly, the tendency towards exploiting natural resources across all the countries in the African continent provides indications that the difficulty and inability to collect more non- resource taxes and the narrowness of non- resourcetax bases may stimulate natural resources exploitation and therefore affect natural resource rents. This consideration suggests that the variable natural resource rents is potentially endogenous in the baseline equation (1). The instrumental variable (IV) technique is usually used to address the endogeneity issue in the estimation of econometric models. However, IV methods have not yet been developed in a PSTR context. Thus, instead of current values, we include one-year lag values of natural resource rents, GDP per capita, Trade openness, Inflation and Agriculture value added to mitigate the reverse causality problems. This approach 16 is acceptable in our case since resources collected from natural resources previously influences the government current behavior regarding non-resourcetax revenues mobilization whereas current level of non- resourcetaxrevenue cannot affect natural resources rents that have already been collected. We also lagged the transition variable to mitigate the issue of reverse causality since if economic diversification is a vehicle for increasing non-resourcetax mobilization; countries with high taxrevenue are more likely to diversify their economies. As indicated in table 8, even using one- year lagged value of diversification as the transition variable, the three linearity tests suggest that the PSTR model is still suitable to estimate the effect of natural resource rents on non- resourcetaxrevenue depending on the level of economic diversification. Estimation results are displayed in table 8 Results are qualitatively the same as those reported in table suggesting that the main findings of this study are robust to potential endogeneity of control variables. The direct effect of natural resources rents on non-resourcetaxrevenue is negative. The non-linear effect of non-resourcetaxrevenue depending economic diversification, measured by β1 is positive.
administration, including tax administrations, as well as through its indirect positive effects on the economy. For example, Morrissey (2015) has argued that the effectiveness of public expenditure on human development and tax compliance could be enhanced thanks to higher development aid inflows. Along the same lines, Brun et al. (2011) have argued that the above-mentioned adverse effects of development aid on taxrevenue could prompt aid-recipient governments to improve their tax performance, with a view to reducing their dependence on development aid. Additionally, development aid could help strengthen tax and customs administration capacities in recipient- countries, and hence promote tax reforms. The empirical findings of the taxrevenue impact of development aid is mixed and reflects the diversity of the theoretical expectations concerning this impact. Heller (1975), Gupta et al. (2004), Remmer (2004), and Benedek et al., (2012) have reported a negative effect of development aid on taxrevenue. In contrast, Khan and Hoshino (1992), Gupta (2007), and Clist (2016) have obtained a positive effect of development aid on taxrevenue. At the same time, Ouattara (2006); Mavrotas and Ouattara (2007); Morrissey et al., (2014) have found a statistically nil effect of development aid on taxrevenue. Yohou et al. (2016) have reported that the effect of development aid on taxrevenue performance is conditional on government stability: while aid directly lowers taxrevenue performance, it enhances it for higher levels of government stability. Gnangnon and Brun (2017) have examined whether the sustainability of the impact of development aid on non-resourcetaxrevenue performance of recipient-countries. They have obtained evidence that the sustainability of this impact depends on countries' development level. Specifically, for Least developed countries, the impact of development aid on non-resourcetaxrevenue is yet positive, but not sustainable over time. In light of the foregoing, the effect of development aid on taxrevenue remains an empirical matter. Nevertheless, if development aid could help expand the tax base, including by contributing to the expansion of productive capacities (that could help generate higher value added in the manufactured products) and possibly promoting economic growth in the recipient-countries 3 , then it would help generate higher taxrevenue in these countries.
drawing on data compiled from all available International Monetary Fund (IMF) Article IV reports ( Prichard et al., 2014 ). ICTD dataset has the advantage to be available for a large number of developing countries which is the focus of this study. More importantly, unlike alternative databases, ICTD dataset has the particularity to exclude natural resourcerevenuetaxrevenue 9 , then providing a non-resourcetaxrevenue data. As stressed in Caldeira et al. (2020) , distinguishing resource from non-resourcerevenue is highly relevant to understand countries’ tax effort and some studies in the literature highlight a crowding-out effect between resources revenue and non-resourcetaxrevenue ( Bornhorst et al. 2009 ; McGuirk, 2013 ; Crivelli and Gupta, 2014 ). A competing rich non-resourcetaxrevenue dataset was developed by Mansour (2010) covering 1980-2010 and recently updated to 2015 (see Caldeira et al.,2020 ). However, this database only focuses on 42 Sub-Saharan African countries. We therefore relied on ICTD dataset for coverage purpose. Tax data used in this paper cover six tax series namely: (i) total taxrevenue; (ii) indirect taxes; (ii) direct taxes; (iv) income taxes; (v) taxes on goods and services, and (vi) value-added tax, all expressed as percentage of GDP.
In this paper, we investigate the effects of natural disasters on domestic resources mobilization. Natural disasters are increasing in developing countries and the resulting damage is growing more and more harmful. Natural disasters kill people, destroy economies and production capacity, reduce international trade, pose a threat to business and commerce and reduce the tax base. This study, to our knowledge, the first of its kind in natural disaster studies, takes a different approach from previous works and uses propensity score matching estimators to tackle the selection bias issue. Our research covers 120 developing countries over the period of 1980-2012 and estimates the effects of five types of natural disasters (epidemic, drought, flood, storm and extreme temperature) on government revenue and its components. We find that, in general, natural disasters have negative effects on domestic revenue, but these effects depend on the type of levied revenue sources. Furthermore, we find that natural disasters in a given country have harmful effects on the tax revenues of the bordering countries. However, our results show that these adverse effects are dampened in countries with a high capacity of resilience or in well-governed countries. Moreover, we find that countries with combined strong governance and high resilience capacity are able to cope with the effects of natural disasters on tax revenues, while countries with combined weak governance and a low level of resilience capacity lose out on large tax revenues after natural disasters.
on the level of induced reserves, obeying a rule reminiscent of the inverse elasticity rule for commodities of finite supply elasticity.
Section 4 allows the country to trade the resource. A country that imports the resource cannot apply any form of resource rent taxation to foreign suppliers; however it can apply commodity taxes to home consumption as an imperfect substitute to resource rent taxation. Consequently the limits to available tax instruments implied by Ramsey’s OCT framework are no longer simply reasonable as under autarky, but become compelling. For given subsidies to domestic reserve supply, the result that domestic resource consumption is to be taxed at a higher rate than conventional commodities having the same demand elasticity emerges reinforced. Furthermore, optimal resource-demand and reserve-supply taxes or subsidies reflect the rent capture motive analyzed by Bergstrom (1982) in addition to their taxrevenue objective. The optimal tax formula will be seen to divide itself into components that reflect such multiplicity of objectives. Demand taxes are higher (reserve subsidies lower) when government needs are high than when they are low by an amount that reflects domestic and foreign demand elasticities, as well as the elasticity of domestic reserves.
MR are always satisfied with such tax. Exploitation will take place whenever p − c ≥ y so that the second best surplus S will be realized.
I contend that the debate about the relative merits of different scheme of resources taxation is biased toward the appraisal of the rent tax. The usual argument establishes the efficiency of the rent tax in an ideal world and then declines the relative merits of the other taxes on the basis of transaction costs. The rent tax is better, one would say, but requires the observation of prices, quantities and costs. Since costs can be costly to monitor, an ad valorem tax may be advisable. And if both prices and costs are difficult to monitor, then a fixed fee could be the better option. According to this logic, when in addition extracted quantities are difficult to monitor, awarding the the resource wholesale through an auction is advisable. But it is well known that auctions are theoretically able to achieve efficiency when information is scarce so why not do so in the first place?.
1.2. South Africa’s response to climate change
South Africa has started to experience several negative consequences of climate change, with increased frequencies of rainfall extremes and droughts, increased numbers of hot days, and sea-level rise. South Africa is also considered vulnerable to climate change because of social vulnerability and dispersed and poorly planned development (National Planning Commission, 2011) . With water already being a scarce resource and soil often thin and sensitive to erosion, it is particularly South Africa’s agriculture and forestry sector which will feel economic consequences of climate change first. 12 Crops most at risk include maize, apples, pears, wheat, barley and rooibos. Furthermore, a more generic rise of pests and of heat stress in animal husbandry should be expected. A lot however will depend on the capability to take adaptation measures. Consequences are expected to be felt especially between 2050 and 2100, with other countries on the African continent likely to be affected much more negatively than South Africa (RSA, 2011a) . However, a lot is still unknown about both the direction and impacts of climate change in South Africa, as about the capacity to adapt to it and the cost to which damages can be avoided. The National Development Plan 2030 therefore proposed a strategy for the near future in which South Africa’s economic and societal resilience is strengthened, and in which more research, studies and planning is done regarding climate change adaptation and modelling, on food security, on water resources, and on national disaster management (National Planning Commission, 2011) .
Given the role of FDI on growth, business productivity and employment, we estimate the relation of FDI on direct tax. The results show that FDI inflow's impact on direct tax mobilisation is positive but non statistically significant (Table3, Column 2). We can offer two possible explanations for this non-significant correlation. The first possibility is that because of competition between domestic and foreign compagnies, FDI flow could lead to crowd out certain domestic compagnies. This may offset positive effect of FDI on direct taxrevenue. We believe that this is unlikely because the less competitive domestic companies would crowd out and this crowding out will be compensated. The second possibility is that many developing countries provide tax incentives to foreign investors to encourage investment. However, this distorts resource allocation and is detrimental to long-term growth. This appears to be more plausible because the tax practices of multinational companies via tax evasion put the financing of sustainable development at risk. In fact, this interpretation would be consistent with the evidence of Glencore 2 . Glencore's head office is located in Switzerland in the canton of Zug.
revenue generated by the exploitation of natural resources ; Additionally we use the Aid per capita, this variable may aﬀect the revenue mobilization in two ways : first the dependence to Aid may negatively aﬀect the intention of countries to mobilize domestic resources, however Aid provided as technical assistance may be favourable to countries tax management and thereby the tax performance ; Gini Index : in- equality may influence the tax compliance in the country and create social unrests unfavourable to the revenue collection ; Debt service : a higher debt service may encourage countries to mobilize resource given that they must refund the service be- sides the interest. Population growth, this variable is a proxy of the need in public infrastructure in a country thus, it should act positively on its revenue mobilization. Corruption, this phenomenon may aﬀect negatively the tax performance, first due to the embezzlement of public funds, second because it may prompt tax agents to delay the processing of the applications of the good taxpayers and at last it may act on the tax compliance. Internal Conflict representing an assessment of political violence(namely civil war, coup threat, terrorism, political violence and civil disorder) in the country and its actual or potential impact on governance. It has an ambiguous eﬀect on tax performance given it may encourage governments in mobilizing resources to buy arms on the other hand the unrests that it causes may be harmful to the tax performance. We include the average first half trend of the outcome in addition to the set of covariates 32 .
distinction. Indeed, when S 0 is given as in the previous sections, if the government has
high revenue needs in the sense of Proposition 2, it should tax the totality of resource
rents away from producers. If it did so when S 0 were endogenous, it would remove
incentives for producers to generate reserves in the …rst place. If the government wants to create a tax environment allowing net extraction pro…ts to compensate …rms for the cost of reserve production, it must be able to commit, prior to extraction, to a system of ex post extraction taxation that leaves enough rents to producers. Alternatively, if the government taxes away all extraction rents, it must compensate …rms by subsidies or tax breaks prior to extraction. In fact we will show that there exists a continuum of mixed systems, combining subsidies toward reserve supply with positive after-tax extraction rents, that achieve the government’s objective. These mixed systems are feasible if the government is able to commit to leave …rms the prescribed after-tax extraction rent; otherwise, an optimal system relying on reserves supply subsidies exclusively can also
The objective of this study was to assess the impact of EITI on the taxrevenue mobilization from a panel of 83 developing countries over the period 1995-2017. The intuition was that EITI implementation would boost the quality of governance in resource-rich countries and thus improve taxrevenue mobi- lization. Our empirical strategy focuses on the propensity score matching method and the control func- tion approach. We highlight various matching methods, which allows us to control the self-selection of choice to implement EITI. We find that the ATT is positive and is robust to various matching methods. In other words, there is a significant difference between EITI members compared to non-EITI members in terms of taxrevenue mobilization. All else being equal, EITI membership improves the tax revenues by around 1.06 to 1.20 percentage points for a given country. The matching of EITI compliant countries with EITI non-compliant countries (commitment and candidate stage) suggests that the compliance to EITI standards generates a considerable surplus of domestic tax revenues (around 1.09 to 1.13 percent- age points of GDP). The magnitudes estimated ATTs are more significant if we include governance quality. Results are robust to non-resource and income tax revenues. In other words, EITI members are more effective than non-EITI members in mobilizing domestic revenues. Regarding heterogeneity in EITI Compliant countries, the time elapsed since the country’s application date, trade openness, FDI, and forest rents positively and significantly influence the ATT effect of total tax revenues. Financial development, HDI, and governance quality index have a negative and significant influence on the ATT effect. Heterogeneity factors are more or less dependent on the stage of EITI implementation and the type of tax revenues. The stylized facts show that membership in the EITI mitigates the harmful effects of dependence on extractive resources.
method employed in Oz-Yalaman (2019), we adopted a dynamic specification to account for the inertia in government taxrevenue.
Using a sample of 63 developing countries over the period 2004-2017 and drawing on the dynamic generalized method of moments (GMM) to solve the endogeneity and any reverse causality issue, the chapter shows that greater access to financial services captured by the number of ATMs per 100,000 adults increases government non-resources tax-to-GDP ratio. Looking at the taxrevenue structure, the results show that indirect taxes revenue accounts the most sizeable positive effect of increased penetration of ATMs on taxrevenue. Exploring the channels through which financial inclusion influences non-resourcetax ratio, our empirical results highlight that the positive effect of greater access to financial services mainly operates through private consumption and business expansion. Our results survived to a battery of robustness exercises including (1) adding more control variable namely the level of education, inflation, the population size, external aid received, domestic financial sector development, remittances inflows and the tax structure, (2) the use of alternative financial inclusion measures to capture the multifaceted aspect of our interest variable and (3) using alternative tax data source.
compliance by providing goods that citizens prefer in a more efficient and accessible manner, or by more effectively emphasizing that taxes are necessary for the receipt of government services. Accordingly, the main concern of taxpayers is what they get directly in return for their tax payments in the form of public services. Therefore, the implementation of an effective and fair taxation system is essential in order to finance public policies given the fact that there is strong relationship between citizens and the state. According to the concept of resource bargain, the state negotiates resources to finance public policies and the citizens expect in return for their tax payments in the form of public services (Fjeldstad and Semboja 2001; Moore 2004). Then, individuals may pay taxes because they value the goods provided by the government, recognizing that their payments are necessary both to help finance the goods and services and to get others to contribute (Fjeldstad and Semboja 2001). Regarding this theory of fiscal exchange, tax compliance depends on the respect of this contractual relationship and the policies of the government. If the fiscal exchange is enforced, that implies that populations will benefit from growth though government policies. That is what expected with inclusive growth policy. Inclusive growth ensures that the economic opportunities created by growth are available to all-particularly the poor-to the maximum possible extent. The growth process creates new economic opportunities that are unevenly distributed. Inclusive growth means the participation of all in the tangible benefits of economic growth, made possible mainly by job creation that can lead to inequality and poverty reduction. Taxation plays a vital role in promoting citizenship and reciprocal relations between the taxpayer and government. It is about encouraging people to make a contribution for which they receive something in return. In Sierra Leone, for instance, public resistance to the introduction of the Goods and Services Tax in 2009 (which is another name for value added taxes (VAT)) forced the government and its key donors to link the new tax to improved provision of services.
● La prise de décision: La décision d’acceptation d’un groupe ou non est importante car il faut être sûr qu’on ne rate pas d’opportunité future plus importante mais également ne pas prendre le risque de se retrouver avec une faible occupation sur certaines dates. Alors qu’à l’hôtel Alfonso XIII, ce sont les revenue managers qui sont les décisionnaires principaux en terme de tarification; chez Hilton, ils ne sont que des conseillers. En effet, les commerciaux de l’hôtel Starwood se réfèrent en permanence aux revenue managers basés dans l’hôtel pour savoir ce qu’il est recommandé de faire. Ces revenue managers étant en lien régulier avec les différents chefs de service, ce sont eux qui ont la vision la plus complète de l’état des ventes dans l’hôtel et de l’orientation de la stratégie, ils sont donc les référents principaux pour toutes les demandes de groupes et ventes individuelles. Dans les hôtels Hilton Paris La Défense et Hilton Paris Orly Airport, les équipes GC&E ne font appel aux revenue managers de région qu’en cas d’incertitude. En effet, grâce aux différents rapports fournis et aux réunions téléphoniques quotidiennes, les équipes connaissent l’état des ventes et l’orientation de la stratégie à tout instant. Ils sont ainsi capables de prendre les décisions adéquates sans faire appel aux Revenue Managers. Ainsi, les décisionnaires sont, dans la plupart des cas, les responsables commerciaux pour l’acceptation d’un groupe et les Revenue Managers sont des supports pour les décisions de tarification.
them may not have extensive formal training in mathematics, physics, or programming which could make them reluctant to share their custom- written code for outside scrutiny. Another possibility is that such shar- ing initiatives do actually exist but that they are rather diﬃcult to ﬁnd for outsiders. For instance, because they reside on a laboratory’s inter- nal servers or personal websites. However, people’s attitudes towards openly sharing the resource solutions they have developed appear to be improving ( Balbastre et al., 2017 ; Tasserie et al., 2020 ) and new de- velopments in information technology promote such initiatives while simultaneously creating avenues to assign explicit credit to developers. A collaborative open approach to NHP neuroimaging will not only foster collaboration in the short term, but also guide future develop- ment eﬀorts, enhance reproducibility, and beneﬁt the whole commu- nity in the long term. The contribution template for PRIME-RE requires a minimum set of metadata to ensure a consistent and comprehensive resource index (see Table 1 ). The website provides a graphic interface that simpliﬁes database navigation and makes it easy for researchers to discover relevant tools, data, and learning material. PRIME-RE’s agile governance structure is decentralized and open (hosted on GitHub) with clear guides to help researchers integrate into the community and con- tribute to it. The original resources listed on PRIME-RE are maintained by their respective developers and indexed in a completely community- driven way. Acting as a community-based curation layer on top of open resources reduces processing bottlenecks that could be encountered if a small single team were responsible for maintaining and updating the system, while simultaneously facilitating scalability, and inclusiveness. The maintenance of experimental and analytical code is a challenge in academic research. The adoption of code development best practices, such as version control, comment inclusion, testing, coding style, and continuous integration ( Eglen et al., 2017 ), accelerates the continuous improvement of tools and assists in the swift detection and ﬁxing of bugs. Unfortunately, these practices are not yet common in academia. We strongly advocate for their adoption and are hopeful that open and informal communication between researchers and developers at all lev- els of NHP neuroimaging research, as facilitated by PRIME-RE, can ac- celerate this process.
The supply of a conventional good or service is independent from the price of another good or service as long as their production costs are independent. The supply of a non- renewable resource at one date is affected by its price at another date even when the cost of extraction at one date is independent from the cost of extraction at all other dates. This is because the so-called augmented marginal extraction cost includes a resource scarcity rent, the opportunity cost of extracting the scarce resource, that connects extraction costs at all dates to each other: a change in the price of the resource at any date affects the rent at all dates, which in turn affects the supply at all dates. Questions about intertemporal substitution and compensation effects do not arise in standard supply theory. In the case of non-renewable resource, these questions have always been the subject of substantial research efforts; currently, for example, much research activity revolves around the green paradox, both at the policy and the theoretical levels.
A consumption tax amounts to exempt savings from taxation. As such, it would have important distributional effects, first of all from the poor to the rich, but also towards capital intensive industries; and intergenerational, away from the very young (students) and the old. For what concerns long term effects, most studies show that a consumption tax would be moderately more efficient and much simpler than the income tax. Nevertheless with such a tax, the progressivity of the current system could not be replicated. Attempts to mitigate the regressive features of the consumption tax would unavoidably lower the efficiency gains, and significantly increase complexity. I conclude that the passage to a consumption tax has to be done on the basis of a judgement of value (how progressive should our tax system be?), and not based on technical arguments. Shifting to a consumption tax would also imply an extremely complex transition that could be characterised by unemployment and inflation. For monetary policy, monitoring the economy during this transition would be extremely complex.