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A framework for tax reforms in developing economies with two sectors (anglais)

The purpose of the paper is to discuss some aspects of the second best taxation in developing economies in relation to the analysis of tax reforms. A brief intuitive review of indirect taxation in the second best is presented first. The insights are then used for the analysis of tax reforms in the distributional content of a developing economy. The most important stylized feature is the division of the economy into a rural and an urban sector. The...
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