The Political Economy of Imperfect Taxation and Sustainable Privatisation: When Do Countries Privatise and Who Gets the Spoils
DELTA Working Paper No. 2002-13
28 Pages Posted: 17 Nov 2004
Date Written: February 2002
Abstract
This article investigates the connection between the apparently uncorrelated issues of tax evasion and privatisation. We first determine how the political process - given a country's level of development and income distribution - will determine the efficiency of its tax system. We then regard how the efficiency of taxation impacts on the outcome of privatisation attempts. We consider under which condition privatisation will proceed, and who will be the political supporters as well as the main winners of the privatisation process. Moreover we investigate the impact of different forms of corruption both on the initial public support for privatisation, as well as its long term political sustainability.
Keywords: Privatisation, Taxation, Political Economy, Corruption, Underpricing
JEL Classification: D72, D78, H21, H26
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
By Simeon Djankov, Caralee Mcliesh, ...
-
By Simeon Djankov, Caralee Mcliesh, ...
-
The Political Economy of Government Responsiveness: Theory and Evidence from India
By Timothy J. Besley and Robin Burgess
-
Handcuffs for the Grabbing Hand? Media Capture and Government Accountability
By Timothy J. Besley and Andrea Prat
-
Handcuffs for the Grabbing Hand? Media Capture and Government Accountability
By Timothy J. Besley and Andrea Prat
-
By Matthew Gentzkow and Jesse M. Shapiro
-
By Matthew Gentzkow and Jesse M. Shapiro