The literature on inflationary finance has dealt only with the case in which inflation leaves the real revenue from the tax system unaffected. However, in most cases, inflation brings about changes in real tax revenue. If the average lag in tax collection is short and the price elasticity of the...

The presence of high inflation raises questions about the usefulness of the conventional measure of the fiscal deficit as a gauge of necessary fiscal adjustment. Economists are divided on this issue: those who believe that regardless of inflation the conventional measure is the relevant one; and...

Tax evasion is universal. It depends on the economic and tax structures, types of income, and social attitudes. The theory of tax evasion has limitations since it rests solely on attitudes toward risk, with full information regarding the tax administration's behavior. Methodologies for...

Corruption is attracting a lot of attention around the world. This paper surveys and discusses issues related to the causes, consequences, and scope of corruption, and possible corrective actions. It emphasizes the costs of corruption in terms of economic growth. It also emphasizes that the...

The literature dealing with the impact of inflation on tax revenue has assumed that two conditions hold, namely, that (1) taxes are paid as they accrue, and that (2) tax systems are generally elastic. When these two assumptions are valid, inflation is likely to lead to increases in real tax...

The elasticity and built-in flexibility of the U. S. individual income tax to changes in national income (referred to as the sensitivity of the tax) have been of particular interest to researchers and policymakers for a long time. The direct measurement of this sensitivity has always been...

In recent years the taxation level in many developing countries has changed dramatically over relatively short periods. These changes are too large and too sudden to be attributed fully to a deterioration in tax administration or to changes in the traditional determinants of tax levels. They can...

This paper discusses major fiscal issues faced by the previously centrally planned economies in their transition to market economies. It focuses on the extent to which the budget deficit should guide policy and the interactions between fiscal policy and other aspects of the macroeconomy.