Traditional explanations for indirect trade through an entrepot have focused on savings in transport costs and on the role of specialized agents in processing and distribution. We provide an alternative perspective based on the possibility that entrepots may facilitate tariff evasion. Using data...

This paper sets out a framework for analyzing optimal interventions by a tax administration, one that parallels and can be closely integrated with established frameworks for thinking about optimal tax policy. At its heart is a summary measure of the impact of administrative interventions—the...

Critics of Governor Michael Dukakis have suggested that this year?s $400 million overestimate of tax revenues in Massachusetts casts doubt on his putative managerial skills. In this paper, we carefully examine the entire Dukakis forecasting record. We find that the 1988 experience was "unusual?...

The canonical theory of taxation holds that the incidence of a tax is independent of the side of the market which is responsible for remitting the tax to the government. However, this prediction does not survive in certain circumstances, for example when the ability to evade taxes differs across...

Executors of estates for decedents in 2010 could choose between an estate tax regime and a basis carry-over regime. For most executors, this created a tradeoff between a current estate tax payment and a future capital gains tax liability for beneficiaries who inherited assets with...

Developing countries collect a far lower share of GDP in taxes than richer countries. This paper asks whether changes in tax administration and tax rates can nevertheless raise substantial additional revenue – and if so, which approach is most effective. We study corporate taxation in...

For most parameter values, increased randomness about how much taxable income an auditor would assess leads to higher reported income and more revenue, When reducing randomness is costly, optimality requires some randomness in assessed taxable Income. Even if reducing randomness g costless,...

While India is distinctive among developing countries for its fast-growing service sector, sceptics have raised doubts about the quality and sustainability of this service-sector growth and its implications for economic development. We show, consistent with the views of the sceptics, that while...

The new trade theory emphasizes the role of market-share reallocations across firms ("stealing") in driving productivity growth, while the older literature focused on average productivity improvements ("learning"). We use comprehensive, firm-level data from India's organized manufacturing sector...

We examine the impact of political reservation for disadvantaged minority groups on poverty. To address the concern that political reservation is endogenous, we take advantage of the state-time variation in reservation in state legislative assemblies in India generated by national policies that...