Besley, Timothy; Ilzetzki, Ethan; Persson, Torsten - In: American Economic Journal: Macroeconomics 5 (2013) 4, pp. 205-35
Investments in fiscal capacity?economic institutions for tax compliance?are an important feature of economic development. This paper develops a dynamic model to study the evolution of fiscal capacity over time. We contrast a social planner's investment path with politically feasible paths. Three...