synthesizes and extends endogenous growth models with public finance to compare the growth and welfare maximizing tax rates … the range of trade-offs: the growth maximizing tax rate can lie above, below, or on the welfare maximizing equivalent. We … find however that even relatively large differences in growth and welfare maximizing tax rates translate into relatively …

public tasks. But not all countries with a low tax ratio automatically fall into this cat-egory. This paper presents an … influencing factors, such as regional patterns, non-tax revenue and governance. Findings on individual countries or groups of … countries should put governments, donors and international organisations in a better position to decide on tax reform programmes …