This paper builds on the existing literature to better explain the tax assignment choices made by countries in different economic circumstances. In particular, we explain why the degree of tax autonomy given to subnational governments is significantly greater in industrial than in developing...

This insightful study examines the decentralization experiences from 15 countries in different regions of the world. All of these countries have actively attempted to decentralize, or continue to do so, and have faced obstacles serious enough to either derail or significantly delay their...

The goal in this paper is to build on the existing literature to better explain the tax assignment choices made by countries in different economic circumstances. In particular, we explain why tax assignment to subnational governments is five times greater in industrial than developing countries,...

In this paper, we report the current state of provincial revenue raising and analyze the potential for increased revenue mobilization. In the sections below, we document the current situation regarding local revenue capacity and mobilization in Pakistan using case studies of Punjab and...

The purpose of this study is to review the status of revenue mobilization by sub-national Governments in Pakistan, and to identify reform options that might lead to a higher level of revenues and a better functioning fiscal decentralization. This analysis is based on case studies of Punjab and...

The purpose of this paper is to evaluate the current practice of local government taxation in Pakistan and to point the way toward structural reforms that are both more rational and more in step with Pakistan’s vision for its fiscal decentralization. The analysis here is restricted to sub...

This paper looks at the case of Pakistan’s decentralization reform of 2001– 09 and its impact on civil service management. A key point made in this paper is that the relationship between organizational change and civil service is, by no means, unidirectional. The issues are viewed in the...

Taxation and Development highlights the importance of better understanding the ways in which taxes and expenditure are linked. Focusing on developing countries, the book argues for a broader approach to the topic, with a secondary focus on developing and applying new modeling techniques to...

This study develops a dynamic general equilibrium model, applied to Pakistani data, in which optimizing agents evade taxes by operating in the underground economy. The cost to firms of evading taxes is that they find themselves subject to credit rationing from banks. Our model simulations show...