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A key policy problem in most developing countries is the size of the informal sector and its persistence over time. In need to increase their tax revenues, policy makers face a trade-off between decreasing tax rates (making formalizing potentially more attractive) and alternatively raising tax...
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In this paper we use the new Government Revenue Dataset to analyse fiscal decentralization. We find that developed … fiscally decentralized regions. In our econometric analysis, we examine the relationship between fiscal decentralization and … the shadow economy. We hypothesize that decentralization can negatively or positively affect the size of the shadow …
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's decentralization policies and also, in informing future policymaking. In particular, it highlights the importance of (i) a well …
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