- International Monetary Fund
- Published Date:
- September 1986
- Search Google Scholar
- Export Citation
- Search Google Scholar
- Export Citation
- Search Google Scholar
- Export Citation
- Search Google Scholar
- Export Citation
- Search Google Scholar
- Export Citation
- Search Google Scholar
- Export Citation
AaronHenry J.“Some Criticisms of Tax Burden Indices,”National Tax Journal (Columbus Ohio)Vol. 18 (September1965) pp. 313–16.
AaronHenry J.Who Pays the Property Tax? A New View (Washington: The Brookings Institution1975).
AaronHenry J. and MartinMcGuire“Public Goods and Income Distribution,”Econometrica (Evanston Illinois)Vol. 38 (November1970) pp. 907–20.
AdelmanIrma and ShermanRobinsonIncome Distribution Policy in Developing Countries: A Case Study of Korea (Oxford; New York: Oxford University Press1978).
AldermanHarold and Joachim VonBraun“The Effects of the Egyptian Food Ration and Subsidy System on Income Distribution and Consumption” Research Report No. 45 (Washington: International Food Policy Research Institute1984).
AltimirOscarThe Extent of Poverty in Latin America World Bank Staff Working Paper No. 522 (Washington: The World Bank1982).
AltimirOscar and Juan V. SourrouilleMeasuring Levels of Living in Latin America: An Overview of Main Problems Living Standards Measurement Study Working Paper No. 3 (Washington: The World BankOctober1980).
AnandSudhirInequality and Poverty in Malaysia: Measurement and Decomposition (New York: Oxford University Press1983).
BachaEdmar L. and LanceTaylor“Brazilian Income Distribution in the 1960s; ‘Facts,’ Model Results and the Controversy,”Journal of Development Studies (London)Vol. 14 (April1978) pp. 271–97.
BachaEdmar L. and LanceTaylor and Wayne R.Thirsk“The Fiscal Incidence of Some Experiments in Fiscal Federalism: Technical Report” (Ottawa: Canada Mortgage and Housing Corporation1979).
BallentineJ. GregoryEquity Efficiency and the U.S. Corporation Income Tax (Washington: American Enterprise Institute for Public Policy Research1980).
BergAlan“A Strategy to Reduce Malnutrition” Poverty and Basic Needs (Washington: The World BankSeptember1980) pp. 18–21.
BergsmanJoelIncome Distribution and Poverty in Mexico World Bank Staff Working Paper No. 395 (Washington: The World BankApril1983).
BeveridgeW. A. and Margaret R.Kelly“Fiscal Content of Financial Programs Supported by Stand-By Arrangements in the Upper Credit Tranches, 1969–78,”Staff PapersInternational Monetary Fund (Washington) Vol. 27 (June1980) pp. 205–49.
BirdRichard M.“The Incidence of the Property Tax: Old Wine in New Bottles”Canadian Public Policy (Guelph Ontario) supplement (1963) pp. 323–34.
BirdRichard M. and Luc H.De Wulf“Taxation and Income Distribution in Latin America: A Critical Review of Empirical Studies,”Staff PapersInternational Monetary Fund (Washington) Vol. 20 (November1973) pp. 639–82.
BoothAnne (1980a) “The Incidence of Taxation: A Preliminary Analysis” in Issues in Public Finance in Singaporeed. by M.Asher and S.Osborne (Singapore: Singapore University Press1980) pp. 100–32.
BoothAnne (1980b) “The Economic Impact of Export Taxes in ASEAN,”Malayan Economic Review (Singapore)Vol. 25 (April1980) pp. 36–61.
BreakGeorge F.“The Incidence and Economic Effects of Taxation” in The Economics of Public Finance by Alan S.Blinderand others (Washington: The Brookings Institution1974) pp. 110–237.
BrittainJohn A.The Payroll Tax for Social Security (Washington: The Brookings Institution1972).
CatsambasThanos“Gasoline Tax Burden Is Analyzed To Assess Distributional Impact,”IMF Survey (Washington)Vol. 9 (April 211980) pp. 114–16.
ChampernowneD.G.“A Comparison of Measures of Inequality on Income Distribution,”Economic Journal (Cambridge)Vol. 84 (December1974) pp. 787–816.
CheneryHollisMontek S.AhluwaliaC.L.G.BellJohn H.Duloy and RichardJollyRedistribution with Growth (London: Oxford University Press1974).
CnossenSijbrenExcise Systems: A Global Study of the Selective Taxation of Goods and Services (Baltimore: The Johns Hopkins University Press1977).
Comité Permanent Inter-Etats de Lutte contre la Secheressé dans le Sahel (CILSS) Recurrent Costs of Development Programs in the Countries of the Sahel: Analysis and Recommendations (Ouagadougou: CILSSAugust1980).
CordenWarner M.Trade Policy and Economic Welfare (Oxford: Clarendon Press1974).
DanUsherThe Economics of the Rice Premium Discussion Paper Series No. 60 Faculty of EconomicsThammasat University (BangkokJanuary1978).
DaviesDavid G.“An Empirical Test of Sales-Tax Regressivity,”Journal of Political Economy (Chicago)Vol. 67 (February1959) pp. 72–78.
DeatonAngusThe Measurement of Welfare: Theory and Practical Guidelines Living Standards Measurement Study Working Paper No. 7 (Washington: The World BankOctober1980).
de LarosiereJacques (1984a) “Does the Fund Impose Austerity?” (Washington: International Monetary FundJune1984).
de LarosiereJacques (1984b) “The Growth of Public Debt and the Need for Fiscal Discipline” remarks made at the International Institute of Public Finance Innsbruck AustriaAugust 271984.
DervisKemalJamie DeMelo and ShermanRobinsonGeneral Equilibrium Models for Development Policy (Cambridge; New York: Cambridge University Press1981).
DeWulfLucH.“Fiscal Incidence Studies in Developing Countries: Survey and Critique,”Staff PapersInternational Monetary Fund (Washington) Vol. 22 (March1975) pp. 61–131.
DeWulfLucH.“Incidence of Budgetary Outlays: Where Do We Go From Here?” (unpublished, Washington: International Monetary FundJanuary 221980).
DeWulfLucH.“Taxation and Income Distribution in Less Developed Countries: An Economist’s Guide” (unpublished, Washington: International Monetary FundOctober 301981).
DeWulfLucH.“Taxation and Income Distribution” in Comparative Tax Studies: Essays in Honor of Richard Goodeed. by SijbrenCnossen(Amsterdam; New York: North-Holland1983) pp. 345–70.
DoeLubin K.“Fiscal Policy and Adjustment in the 1980 Fund Financial Programs” (unpublished, Washington: International Monetary FundJune 301983).
DonovanDonal J.“Macroeconomic Performance and Adjustment Under Fund-Supported Programs: The Experience of the Seventies,”Staff PapersInternational Monetary Fund (Washington) Vol. 29 (June1982) pp. 171–203.
EberstadtNick“Hunger and Ideology” Commentary (New YorkJuly1981) pp. 40–49.
FieldsGary S.Poverty Inequality and Development (Cambridge; New York: Cambridge University Press1980).
FullertonDon and John B.Shoven“Replacing the U.S. Income Tax With a Progressive Consumption Tax: A Sequenced General Equilibrium Approach,”Journal of Public Economics (Amsterdam)Vol. 20 (February1983) pp. 3–23.
GandhiVed P.“Tax Burden on Indian Agriculture” (Cambridge, Massachusetts: International Tax Program, Harvard Law School1966).
GandhiVed P.“Sales Taxation of Services in Developing Countries” (unpublished, Washington: International Monetary FundDecember 11977).
GandhiVed P.“Vertical Equity of General Sales Taxation in Developing Countries” (unpublished, Washington: International Monetary FundJuly 181979).
GillespieW. Irwin“Effect of Public Expenditures on the Distribution of Income” in Essays in Fiscal Federalismed. by Richard A.Musgrave (Washington: The Brookings Institution1965) pp. 122–86.
GillespieW. IrwinThe Incidence of Taxes and Public Expenditure in the Canadian Economy Studies of the Royal Commission on Taxation No. 2 (Ottawa1966).
GladeWilliam“The Privatization and Denationalization of Public Enterprises” in Government and Public Enterprisesed. by G.Ram Reddy (London: Frank Cass1983) pp. 67–98.
GoodeRichardGovernment Finance in Developing Countries (Washington: The Brookings Institution1984).
GotschCarl and GilbertBrownPrices Taxes and Subsidies in Pakistan Agriculture 1960–76 World Bank Staff Working Paper No. 387 (Washington: The World BankApril1980).
Government of IndiaIncidence of Indirect Taxation (New Delhi: Department of Economic Affairs, Ministry of Finance1969).
Government of IndiaPublic Enterprises Survey 1982–83 (Highlights) Ministry of Finance (New Delhi1984).
GrootaertChristiaan and Dennis DeTray“Measuring Levels of Living: The Contribution of World Bank Research,”Research News (Washington)Vol. 5 (Summer1984) pp. 3–15.
HansenW. Lee and Burton A.Weisbrod“Distributional Effects of Public Expenditure Programs,”Public Finance (The Hague)Vol. 27 (1972) pp. 414–20.
HarbergerArnold C.“The Incidence of the Corporation Income Tax,”Journal of Political Economy (Chicago)Vol. 70 (June1962) pp. 215–40.
HarbergerArnold C.“Fiscal Policy and Income Redistribution” Chapter VII in Income Distribution and Growth in the Less-Developed Countriesed. by Charles R.Frank Jr. and Richard C.Webb (Washington: The Brookings Institution1977) pp. 259–80.
HellerPeter S.“Public Investment in LDCs with Recurrent Cost Constraint: The Kenyan Case,”Quarterly Journal of Economics (Cambridge Mass.)Vol. 88 (May1974) pp. 251–77.
HellerPeter S.Issues in the Costing of Public Sector Outputs: The Public Medical Services of Malaysia World Bank Staff Working Paper No. 207 (Washington: The World BankJune1975).
HellerPeter S.“Testing the Impact of Value-Added and Global Income Tax Reforms on Korean Tax Incidence in 1976: An Input-Output and Sensitivity Analysis,”Staff PapersInternational Monetary Fund (Washington) Vol. 28 (June1981) pp. 375–410.
HellerPeter S. and Alan A.TaitGovernment Employment and Pay: Some International Comparisons IMF Occasional Paper No. 24 (Washington: International Monetary FundMarch1983).
HerrickBruce H.Urban Migration and Economic Development in Chile (Cambridge Mass.: MIT Press1965).
HirschmanAlbert O.Shifting Involvements: Private Interest and Public Action (Oxford: Martin Robertson1982). International Center for Public Enterprises in Developing Countries Expert Group“The Role of Public Enterprises in Employment Generation in Developing Countries,” Public Enterprise (Ljubljana)Vol. 4 (No. 21983) pp. 5–16.
International Monetary Fund Fiscal Affairs Department Fiscal Review Division“The Concept of the Current Balance in Government Accounts” (unpublished, Washington: International Monetary FundJune 111976).
International Monetary Fund Fiscal Affairs Department Fiscal Review Division (1986a) Selected Decisions of the International Monetary Fund and Selected Documents Twelfth Issue (Washington: International Monetary FundApril 301986).
International Monetary Fund Fiscal Affairs Department Fiscal Review Division (1986b) A Manual on Government Finance Statistics (Washington: International Monetary Fund1986).
JainShailSize Distribution of Income: Compilation of Data World Bank Staff Working Paper No. 190 (Washington: The World Bank1974).
JalladeJean PierrePublic Expenditure on Education and Income Distribution in Colombia The World Bank Staff Occasional Papers No. 18 distributed by The Johns Hopkins University Press (Baltimore1974).
JencksChristopherand others Inequality: A Reassessment of the Effect of Family and Schooling in America (New York: Basic Books1972).
JohnsonOmotunde and JoanneSalop“Distributional Aspects of Stabilization Programs in Developing Countries,”Staff PapersInternational Monetary Fund (Washington) Vol. 27 (March1980) pp. 1–23.
KakwaniNanak C.Income Inequality and Poverty: Methods of Estimation and Policy Applications (New York: Oxford University Press1980).
KanapathyV.“Public Enterprise and Income Distribution” in The Role of the Public Enterprise in Developmented. by ChakritNoranitipadungkarn (Manila: Europa1979).
KellerWouter J.Tax Incidence: A General Equilibrium Approach (Amsterdam; New York: North-Holland1980).
KellyMargaret R.“Fiscal Adjustment and Fund-Supported Programs, 1971–80,”Staff PapersInternational Monetary Fund (Washington) Vol. 29 (December1982) pp. 561–602.
KillickTony and Graham R.BirdThe Quest for Economic Stabilisation: The IMF and the Third World (New York: St. Martin’s Press1984).
KrongkaewMedhi“The Income Redistributional Effects of Taxes and Public Expenditures in Thailand: An Intertemporal Study” (doctoral dissertation Michigan State University East Lansing1976).
KuznetsSimon“Economic Growth and Income Inequality,”American Economic ReviewVol. 45 (March1955) pp. 1–28.
LamN. V.“Incidence of the Rice Export Premium in Thailand,”Journal of Development Studies (London)Vol. 14 (October1977) pp. 3–13.
LeleUma J.Food Grain Marketing in India: Private Performance and Public Policy (Ithaca, New York: Cornell University Press1971).
LinnJohannes F.The Distributive Effects of Local Government Finances in Colombia: A Review of the Evidence World Bank Staff Working Paper No. 235 (Washington: The World BankMarch1976).
LiptonMichaelPoverty Undernutrition and Hunger World Bank Staff Working Paper No. 597 (Washington: The World BankApril1983).
MallonRichard D.“Performance Evaluation and Compensation of the Social Burdens of Public Enterprise in LDCs” Discussion Paper No. 116 (Cambridge Mass.: Harvard Institute for International Development Harvard University PressApril1981).
MallonRichard D. (1982a) “Public Enterprises Versus Other Methods of State Intervention as Instruments of Redistribution Policy: The Malaysian Experience” in Public Enterprise in Less-Developed Countriesed. by Leroy P.Jones (Cambridge: Cambridge University Press1982) pp. 313–25.
MallonRichard D. (1982b) “Public Enterprise Pricing Policies” Discussion Paper No. 129 (Cambridge, Massachusetts: Harvard Institute for International Development, Harvard University PressFebruary1982).
MannArthur J.“The Fiscal System and Income Distribution: The Case of Puerto Rico,”Public Finance Quarterly (Beverly Hills California)Vol. 4 (July1976) pp. 339–66.
MateusAbel M.Targeting Food Subsidies for the Needy: The Use of Cost-Benefit Analysis and Institutional Design World Bank Staff Working Paper No. 617 (Washington: The World BankNovember1984).
McLureCharles E.Jr. “The Incidence of Taxation in Colombia” in Fiscal Reform for Colombia: Final Report and Staff Papers of the Colombian Commission on Tax Reformed. by MalcolmGillis (Cambridge, Mass.: Harvard Law School1971) pp. 239–66.
McLureCharles E.“The Incidence of Taxation in West Malaysia,”Malayan Economic Review (Singapore)Vol. 17 (October1972) pp. 66–98.
McLureCharles E. (1974a) “The Distribution of Income and Tax Incidence in Panama: 1969,”Public Finance Quarterly (Beverly Hills California)Vol. 2 (April1974) pp. 155–201.
McLureCharles E. (1974b) “On the Theory and Methodology of Estimating Benefit and Expenditure Incidence” (mimeograph Program of Development Studies Rice University Houston1974).
McLureCharles E.“The Relevance of the New View of the Incidence of the Property Tax in Less Developed Countries” in The Taxation of Urban Property in Less Developed Countriesed. by Roy W.Bahl (Madison: The University of Wisconsin Press1979) pp. 51–76.
McLureCharles E. and Wayne R.Thirsk“The Inequity of Taxing Inequity: A Plea for Reduced Sumptuary Taxes in Developing Countries” Discussion Paper No. 47 (Houston: Program of Development Studies, William Marsh Rice University, Winter1973).
MeermanJacob P.“Fiscal Incidence in Empirical Studies of Income Distribution in Poor Countries” Discussion Paper No. 25 (Washington: United States Agency for International DevelopmentJune1972).
MeermanJacob P.“The Definition of Income in Studies of Budget Incidence and Income Distribution,”Review of Income and Wealth (New Haven)Vol. 4 (December1974) pp. 515–22.
MeermanJacob P.“Subsidies of Major Malaysian Public Utilities” Studies in Domestic Finance No. 16 (Washington:February1976).
MeermanJacob P.“Do Empirical Studies of Budget Incidence Make Sense?”Public Finance (The Hague)Vol. 33 (1978) pp. 295–313.
MeermanJacob P.Public Expenditure in Malaysia: Who Benefits and Why? World Bank study (New York: Oxford University Press1979).
MusgraveRichard A.The Theory of Public Finance: A Study in Public Economy (New York: McGraw-Hill1959).
MusgraveRichard A. and Peggy B.MusgravePublic Finance in Theory and Practice (New York: McGraw-Hill, 2nd ed.1976).
NowotnyEwald“Nationalized Industries as an Instrument of Stabilization Policy: The Case of Austria,”Annals of Public and Co-operative Economy (Liege)Vol. 53 (March1982) pp. 41–57.
O’ConnorJamesThe Corporations and the State: Essays in the Theory of Capitalism and Imperialism (New York: Harper & Row1974).
OkonkwoUbadigbo“Export Taxes on Primary Products in Developing Countries: The Taxation of Cocoa Exports in West Africa” (unpublished, International Monetary Fund, Washington1978).
OkunArthur M.Equality and Efficiency: The Big Tradeoff (Washington: The Brookings Institution1975).
Organización de los Estados Americanos Secretaria GeneralLa Política Tributaria como Instrumento del Desarrollo (Washington1973).
PechmanJoseph A. and Benjamin A.OknerWho Bears the Tax Burden? (Washington: The Brookings Institution1974).
PremchandA.“Nonfinancial Public Enterprises in Korea” (mimeographed, Washington: International Monetary Fund1979).
PremchandA. (1983a) Government Budgeting and Expenditure Controls (Washington: International Monetary Fund1983).
PremchandA. (1983b) “Government and Public Enterprise: The Budget Link” in Government and Public Enterpriseed. by G.Ram Reddy (London: Frank Cass1983) pp. 24–47.
RamR.“Population Increase, Economic Growth, Educational Inequality, and Income Distribution: Some Recent Evidence,”Journal of Development Economics (Amsterdam) Vol. 14 (April1984) pp. 419–28.
SahotaGian S.“The Distribution of Tax Burden Among Different Education Classes in Brazil,”Economic Development and Cultural Change (Chicago)Vol. 19 (April1971) pp. 438–60.
SchaeferJeffrey M.“Sales Tax Regressivity Under Alternative Tax Bases and Income Concepts,”National Tax Journal (Columbus Ohio)Vol. 22 (December1969) pp. 516–27.
SchneiderRobert R.“A Framework for Analyzing Food Subsidies” (unpublished, Washington: International Monetary FundFebruary 211984).
SchneiderRobert R.“Food Subsidies: A Multiple Price Model,”Staff PapersInternational Monetary Fund (Washington) Vol. 32 (June1985) pp. 289–316.
Schultz TheodoreW.ed.Distortions of Agricultural Incentives (Bloomington: Indiana University Press1978).
SelowskyMarceloWho Benefits from Government Expenditure? A Case Study of Colombia (London: Oxford University Press1979).
SheahanJohn B.“Public Enterprise in Developing Countries” in Public Enterprises: Economic Analysis of Theory and Practice by William Shepherd and others (Lexington: Lexington Books1976) pp. 215–19.
ShortR. P.“The Role of Public Enterprises: An International Statistical Comparison” in Public Enterprise in Mixed Economies: Some Macroeconomic Aspectsby Robert H.FloydClive S.Gray and R.P. Short (Washington: International Monetary Fund1984) pp. 110–96.
ShovenJohn B.“Applied General-Equilibrium Tax Modeling,”Staff PapersInternational Monetary Fund (Washington) Vol. 30 (June1983) pp. 394–420.
ShovenJohn B. and JohnWhalley“A General Equilibrium Calculation of the Effects of Differential Taxation of Income from Capital in the U.S.,”Journal of Public Economics (Lausanne) Vol. 1 (November1972) pp. 281–321.
SnodgrassDonald R.“The Fiscal System as an Income Redistributor in West Malaysia,”Public Finance (The Hague)Vol. 29 (1974) pp. 56–76.
TaitAlan A.“A Simple Test of the Re-distributive Nature of Price Changes for Wealth Owners in the United States and the United Kingdom,”Review of Economics and StatisticsVol. 49 (November1967) pp. 651–54.
TaitAlan A.“The Fiscal Policy Objectives of Nonfinancial Public Enterprises and Their Information Requirements: A Simple Taxonomy Suggested” (mimeographed, Washington: International Monetary Fund1977).
TaitAlan A.AngeloG. Faria and Peter S.HellerKorea: Taxes in the 1980s (mimeographed, Washington: International Monetary Fund1979).
TaitAlan A.AngeloG. Faria and Peter S.Heller and Peter S.HellerInternational Comparisons of Government Expenditure IMF Occasional Paper No. 10 (Washington: International Monetary FundApril1982).
TanEdita A.“Taxation, Government Spending and Income Distribution in the Philippines,”in Income Distribution Employment and Economic Development in Southeast and East AsiaVol. 1papers and proceedings of the seminar sponsored jointly by the Japan Economic Research Center and the Council for Asian Manpower StudiesDecember 16–201974 (Manila: Council for Asian Manpower Studies1975).
TanziVito“Redistributing Income Through the Budget in Latin America” Quarterly Review Banca Nazionale del Lavoro (Rome) No. 108 (March1974) pp. 65–87.
TanziVito“Export Taxation in Developing Countries: Taxation of Coffee in Haiti,”Social and Economic Studies (Mona Jamaica)Vol. 25 (March1976) pp. 66–76.
TanziVitoThe Underground Economy in the United States and Abroad (Lexington, Mass.: Lexington Books1982).
TanziVito“Quantitative Characteristics of the Tax Systems of Developing Countries” Chap. 8 The Theory of Taxation for Developing Countriesed. by DavidNewbury and NicholasStern (publication forthcomingOxford University PressWashington).
TanziVito and Luc H.De Wulf“A Distribuçāo da Carga Fiscal por Grupos de Rendimento em Portugal” in the German Marshall Fund and Fundaçāo Calouste Gulbenkian Conferencia Internacional Sobre Economia Portuguesa (Lisbon: Fundacao Calouste Gulbenkian1979) pp. 925–95.
TanziVito and GeorgeIden“Impact of Taxes on Wages in the United States: An Example of Supply-Side Economics?”Monte dei Paschi di Siena Economic Notes (Siena)Vol. 11 (1982) pp. 5–19.
TarrantJ. R.“Food Policy Conflicts in Bangladesh,”World Development (Oxford)Vol. 10 (February1982) pp. 103–13.
TimmerC. Peter and HaroldAlderman“Estimating Consumption Parameters for Food Policy Analysis,”American Journal of Agricultural Economics (Lexington)Vol. 61 (December1979) pp. 982–94.
TodaroM.P.“A Model for Labor Migration and Urban Unemployment in Less Developed Countries,”American Economic Review (Nashville)Vol. 59 (March1969) pp. 138–48.
TrebatThomas J.Brazil’s State-Owned Enterprises: A Case Study of the State as Entrepreneur (Cambridge; New York: Cambridge University Press1983).
TurveyRalphEconomic Analysis and Public Enterprises (London: Allen and Unwin1971).
WangweSamuel M.“Industrialization and Resource Allocation in a Developing Country: The Case of Recent Experiences in Tanzania,”World Development (Oxford)Vol. 11 (June1983) pp. 483–92.
WebbRichard CThe Distribution of Income in Peru Discussion Paper No. 26 Woodrow Wilson School of Public and International Affairs (Princeton: Princeton UniversitySeptember1972).
WebbRichard CGovernment Policy and the Distribution of Income in Peru 1963–73 (Cambridge, Mass.: Harvard University Press1977).
WhalleyJohn“The North-South Debate and the Terms of Trade: An Applied General Equilibrium Approach” Working Paper No. 8205C Center for the Study of International Economic Relations (London, Ontario: University of Western OntarioJanuary1982).
World Bank Agricultural SectorMemorandum on Morocco’s Agricultural Sector: Identification of Issues and Bank Strategy Report No. 2667a-MOR (WashingtonMay 21980).
This view was expressed in Executive Board Decision No. 6056-(79/38), March 2, 1979, International Monetary Fund (1986), p. 26, paragraph 4.
A study by Anand compared two surveys on the income distribution of Malaysia, taken in 1957 and 1970. These suggested that the Gini coefficient of the income distribution increased from 0.37 to 0.51, suggesting considerably greater equality in the latter period. Anand’s study suggests that even such a large difference gives no indication at all about what actually happened to inequality in Malaysia since the difference in results could be entirely due to differences in income concept and survey coverage.
It is also questionable if income comparisons will lead to meaningful results.
Dollar bills may sometimes replace the domestic currency as the phenomenon of currency substitution becomes prevalent.
If the economy only produced one good for which the demand by the rest of the world was perfectly elastic, reduced domestic absorption would simply imply lower imports or higher exports, and there would be no impact on sector incomes, but in the real world a reduction in aggregate demand affects the various domestic markets differently, and hence the domestic income distribution is affected.
The link between growth and distribution has been the subject of extensive research, but the evidence is still not conclusive. At present, it is generally believed that the absolute level of income earned by the poorest 40 percent rises throughout the development process but that their income share first decreases before increasing later in the development process. See Kuznets (1955), p.; Chenery and others (1974); and Bacha and Taylor (1978), p. 271.
In a recent cross-sectional study of 26 developing countries in Africa, Asia, Europe, and South America, the primary determinants considered for income distribution in the sample countries were increases in population, short-term economic growth, and educational equality. See Ram (1984). In general, taxation policies tend to play a rather marginal role in cross-sectional studies of income distribution.
In some countries the sales tax is progressive up to ranges at which the (progressive) income tax is applicable, so that the tax system as a whole may be progressive.
In a survey of tax incidence studies of 32 developing countries none was found that indicated a tax incidence that was more than moderately progressive. See Bird and De Wulf (1973); for a similar pessimistic view see Harberger (1977) and De Wulf (1983). As another study points out: “The problem is that in less-developed countries the direct tax base is too small to make direct taxes the major instrument of redistribution policy” (Adelman and Robinson (1978), p. 84).
Expatriates receive a disproportionate share of the jobs with high salaries in developing countries, and they often specify and obtain their salaries net of tax.
The level of income represented by the multiple of 30 times per capita income after exemptions and deductions is equivalent to that represented by the multiple of 40 times per capita income before deductions and exemptions.
See Tanzi (publication forthcoming). In a sample of 82 developing countries in Africa, Asia, Europe, and South America, the reliance on wealth and property taxes in overall tax revenue was 2.55 percent in 1979.
At the very lowest income ranges the consumption of goods on which sumptuary taxes are paid may increase faster than income owing to the common practice of low-income residents drinking untaxed home brews and smoking tobacco grown for personal consumption.
See Gandhi (1979). As discussed earlier there may be income levels for which a tax is progressive even though the general impact is regressive. With respect to consumer expenditures, of course, such consumption taxes can, and frequently are, progressive. For evidence on this see Government of India (1969).
See Corden (1974), p. 66 and Booth (1980a), who suggest that if governments need a minimum amount of revenue, export taxes could form part of the first-best tax package, especially if such taxes are easy to collect and administer.
This argument could be generalized to any of the functional expenditure categories, which are identified in International Monetary Fund (1986b), pp. 147–48, as:
1. General Public Service
5. Social Security and Welfare
6. Housing and Community Amenities
7. Other Community and Social Services
8. Economic Services
9. Unallocable and Other Purposes
Some studies have indicated that education may not be an important determinant of income in developed countries. See Jencks, and others (1972).
See Aaron and McGuire (1970), who suggest that these outlays can be related to some presumed utility of money function.
Meerman (1979) concludes that public expenditures are very supportive of redistributional efforts in Malaysia but also observes that redistribution from the more affluent Chinese to the majority Malay has been a central tenet of government policy which has been facilitated by the physical separation of the two groups in urban and rural regions. Tanzi (1974) argues that the lower-income classes in Latin America are predominantly rural individuals who cannot take advantage of government programs and that without greater selectivity public expenditure in that region “may only continue or even aggravate the present redistribution process.”
Tait and Heller (1982) have attempted to approach these issues by using a variety of variables and regression analyses to “explain” different types of functional expenditure and thus determine if countries spend more or less for these purposes than comparable countries. This approach might thus be better characterized as descriptive rather than prescriptive, but it provides some tentative guidelines for comparison.
For a full economic classification of government expenditure, see International Monetary Fund (1986b), pp. 175–76.
Large rural/urban wage differentials have also been cited as causing migration from rural to urban areas, increasing the demand for public services without necessarily creating a corresponding increase in supply owing to the high unemployment among these migrants. See Herrick (1965); and Todaro (1969).
Moreover, the actual amount spent for these purposes is often overstated by the practice of using these appropriations to supplement wages and salaries. In some countries civil servants travel extensively to qualify for relatively generous per diem allowances, while in others government employees sell government goods and services as a regular matter to increase their effective compensation.
For a discussion of the wealth effects of debt financing, see Section VII.
On the Indian subcontinent, for example, government procurement of domestically produced foodgrain, along with a mechanism to restrict interstate trading in foodgrains, started during World War II (Lele (1971)).
For an excellent volume devoted to an exploration of many of these issues, see Schultz (1978), especially the contributions by Schultz, Brown, and Able.
A recent numerical examination of food subsidies indicates that the loss in agricultural income owing to the price-depressing effect of food subsidies for the economy as a whole far exceeds the budgetary costs of the subsidy (Schneider (1985)).
In a study of income distribution and poverty in Mexico, Bergsman (1983) notes: “Poverty in Mexico turns out to look pretty much like poverty in virtually every other middle-income country that has much of it.... It is mostly in rural areas, and mostly among people who are not only economically but also socially and usually culturally different from their more affluent compatriots. It appears in countries that exploited agriculture to finance industrialization, by lowering the price of agriculture’s products relative to the price of manufactures. It appears in ‘depressed areas.’ Brazil, Peru, Turkey, and the Philippines all share these characteristics,” p. 43.
See Government of India (1984). It should be noted, however, that it may not always be explicitly stated as an initial objective of enterprises but often becomes an important element of their policy (Tait (1977)).
Distribution has often been considered more as an ethical question and a social act, distinct from the “scientific” or “objective” issues of resource allocation and market efficiency. See O’Connor (1974). Also, distribution was seen as establishing equal opportunity, and economic growth (or increase in the size of the pie rather than its distribution) was viewed as the main answer. In most areas of development economics, there is substantial ambiguity as to which handicaps are to be removed first in economic growth. In the process, some studies have assumed away the problem. For example, Turvey (1971, p. 15), who examined the optimizing possibilities of enterprise operations, assumed that “the distribution of real income is not the concern of a public enterprise so that it should act as though that distribution were always ideal.”
See Premchand (1983a) for a discussion of these experiences. Trebat (1983) provides a detailed account of the experience in Brazil in this regard. Such policies have been pursued in nearly all countries including many industrial economies.
See Glade (1983) and Webb (1977) for a discussion of the experiences of Argentina and Peru. Glade suggests that there was a risk of unwittingly creating a “new class.” In India, the employees of the nationalized banking sector are generally believed to be a privileged class and their wage increases have sparked more demands for similar increases in other enterprises.
Even in regard to those areas where establishment of enterprises was expected to lead to better distribution, Kanapathy (1979) suggests that the new ventures in Malaysia might have “crowded” the traditional business areas owned by Bumiputras, the native Malay section of the population normally favored by government policies. Also, see Mallon (1982b); and Sheahan (1976).
The issue, however, is not simple. It may be assumed that the government knows what it is doing and that it reflects accurately the welfare function of the community at large. If the government decides to borrow and build hospitals rather than, say, a steel mill, this may represent a social choice even if in the long run this leads to a lower measured national output. If society decides that health and welfare are more important than the growth of national output, the lost output is not necessarily part of the burden of the debt. Moreover, private investors often avoid productive investments in favor of stores of value, such as gold, lowering the growth potential of the economy.
Examples of the incidence of particular taxes can be found in: Property Taxes: Bird (1963); Aaron (1975); Linn (1976); McLure (1979). Agricultural Taxation: Gandhi (1966). Sales Tax: Government of India (1969); Gandhi (1977, 1979). Payroll Tax: Brittain (1972). Excise Tax: Government of India (1969); Cnossen (1977); Catsambas (1980). Income Tax: Pechman and Okner (1974); Heller (1981). Wealth Taxes: Harberger (1962); Tait, Faria, Heller (1979),
This study, reported by Alderman and Von Braun (1984), is based on a survey of nearly 2,400 rural and urban households.
Numbers 1, 3, 4, and 21 of the Occasional Paper series are out of print.
Occasional Papers of the International Monetary Fund*
2. Economic Stabilization and Growth in Portugal, by Hans O. Schmitt. 1981.
5. Trade Policy Developments in Industrial Countries, by S.J. Anjaria, Z. Iqbal, L.L. Perez, and W.S. Tseng. 1981.
6. The Multilateral System of Payments: Keynes, Convertibility, and the International Monetary Fund’s Articles of Agreement, by Joseph Gold. 1981.
7. International Capital Markets: Recent Developments and Short-Term Prospects, 1981, by a Staff Team Headed by Richard C. Williams, with G.G. Johnson. 1981.
8. Taxation in Sub-Saharan Africa. Part I: Tax Policy and Administration in Sub-Saharan Africa, by Carlos A. Aguirre, Peter S. Griffith, and M. Zühtü Yücelik. Part II: A Statistical Evaluation of Taxation in Sub-Saharan Africa, by Vito Tanzi. 1981.
9. World Economic Outlook: A Survey by the Staff of the International Monetary Fund. 1982.
10. International Comparisons of Government Expenditure, by Alan A. Tait and Peter S. Heller. 1982.
11. Payments Arrangements and the Expansion of Trade in Eastern and Southern Africa, by Shailendra J. Anjaria, Sena Eken, and John F. Laker. 1982.
12. Effects of Slowdown in Industrial Countries on Growth in Non-Oil Developing Countries, by Morris Goldstein and Mohsin S. Khan. 1982.
13. Currency Convertibility in the Economic Community of West African States, by John B. McLenaghan, Saleh M. Nsouli, and Klaus-Walter Riechel. 1982.
14. International Capital Markets: Developments and Prospects, 1982, by a Staff Team Headed by Richard C. Williams, with G.G. Johnson. 1982.
15. Hungary: An Economic Survey, by a Staff Team Headed by Patrick de Fontenay. 1982.
16. Developments in International Trade Policy, by S.J. Anjaria, Z. Iqbal, N. Kirmani, and L.L. Perez. 1982.
17. Aspects of the International Banking Safety Net, by G.G. Johnson, with Richard K. Abrams. 1983.
18. Oil Exporters’ Economic Development in an Interdependent World, by Jahangir Amuzegar. 1983.
19. The European Monetary System: The Experience, 1979–82, by Horst Ungerer, with Owen Evans and Peter Nyberg. 1983.
20. Alternatives to the Central Bank in the Developing World, by Charles Collyns. 1983.
22. Interest Rate Policies in Developing Countries: A Study by the Research Department of the International Monetary Fund. 1983.
23. International Capital Markets: Developments and Prospects, 1983, by Richard Williams, Peter Keller, John Lipsky, and Donald Mathieson. 1983.
24. Government Employment and Pay: Some International Comparisons, by Peter S. Heller and Alan A. Tait. 1983. Revised 1984.
25. Recent Multilateral Debt Restructurings with Official and Bank Creditors, by a Staff Team Headed by E. Brau and R.C. Williams, with P.M. Keller and M. Nowak. 1983.
26. The Fund, Commercial Banks, and Member Countries, by Paul Mentre. 1984.
27. World Economic Outlook: A Survey by the Staff of the International Monetary Fund. 1984.
28. Exchange Rate Volatility and World Trade: A Study by the Research Department of the International Monetary Fund. 1984.
29. Issues in the Assessment of the Exchange Rates of Industrial Countries: A Study by the Research Department of the International Monetary Fund. 1984
30. The Exchange Rate System—Lessons of the Past and Options for the Future: A Study by the Research Department of the International Monetary Fund. 1984
31. International Capital Markets: Developments and Prospects, 1984, by Maxwell Watson, Peter Keller, and Donald Mathieson. 1984.
32. World Economic Outlook, September 1984: Revised Projections by the Staff of the International Monetary Fund. 1984.
33. Foreign Private Investment in Developing Countries: A Study by the Research Department of the International Monetary Fund. 1985.
34. Adjustment Programs in Africa: The Recent Experience, by Justin B. Zulu and Saleh M. Nsouli. 1985.
35. The West African Monetary Union: An Analytical Review, by Rattan J. Bhatia. 1985.
36. Formulation of Exchange Rate Policies in Adjustment Programs, by a Staff Team Headed by G.G. Johnson. 1985.
37. Export Credit Cover Policies and Payments Difficulties, by Eduard H. Brau and Chanpen Puckahtikom. 1985.
38. Trade Policy Issues and Developments, by Shailendra J. Anjaria, Naheed Kirmani, and Arne B. Petersen. 1985.
39. A Case of Successful Adjustment: Korea’s Experience During 1980–84, by Bijan B. Aghevli and Jorge Marquez-Ruarte. 1985.
40. Recent Developments in External Debt Restructuring, by K. Burke Dillon, C. Maxwell Watson, G. Russell Kincaid, and Chanpen Puckahtikom. 1985.
41. Fund-Supported Adjustment Programs and Economic Growth, by Mohsin S. Khan and Malcolm D. Knight. 1985.
42. Global Effects of Fund-Supported Adjustment Programs, by Morris Goldstein. 1986.
43. International Capital Markets: Developments and Prospects, by Maxwell Watson, Donald Mathieson, Russell Kincaid, and Eliot Kalter. 1986.
44. A Review of the Fiscal Impulse Measure, by Peter S. Heller, Richard D. Haas, and Ahsan H. Mansur. 1986.
45. Switzerland’s Role as an International Financial Center, by Benedicte Vibe Christensen. 1986.
46. Fund-Supported Programs, Fiscal Policy, and Income Distribution: A Study by the Fiscal Affairs Department of the International Monetary Fund. 1986.
International Monetary Fund, Washington, D.C. 20431, U.S.A.
Telephone number 202 623–7430
Cable address: Interfund