Brockmeyer, Anne; Estefan, Alejandro; Ramírez Arras, Karina - National Bureau of Economic Research - 2021
Property taxes in developing countries are plagued by noncompliance and can exacerbate liquidity constraints. We … enhanced enforcement raise revenue, but liquidity constraints also shape taxpayer behavior. Despite the presence of liquidity … constraints, we find that raising tax rates increases welfare. In contrast, enforcement generates higher private costs than …