Economists generally assume the existence of sufficient institutions to sustain a market economy and tax the citizens. However, this starting point cannot easily be taken for granted in many states, neither in history nor in the world of today. This paper develops a framework where "policy choices", regulation of markets and tax rates, are constrained by "economic institutions", which in turn r...

This study uses statistical analysis and trends to see the development of Degree Fiscal Decentralization, Ratio Regional Original Income Total Revenue, Autonomy Capacity Palangka Raya City during period 2008-2017 showing positive developments. Meanwhile, for degree between Tax Non-Tax Revenue Sharing, Contribution Assistance Needs showed negative results. situation shows that regional financial...

This paper discusses the issue of taxation and redistribution in economies dominated by Elites with limited state capacity. Within a simple aggregate framework, we discuss the political economy incentives of Elites to tax, redistribute and increase state capacity. In particular, the analysis highlights the role of complementarities or substitutability in the production process between the facto...

This paper discusses the issue of taxation and redistribution in economies dominated by Elites with limited state capacity. Within a simple aggregate framework, we discuss the political economy incentives of Elites to tax, redistribute and increase state capacity. In particular, the analysis highlights the role of complementarities or substitutability in the production process between the facto...

The 2008-09 crisis has shown that some euro area member countries were unable to sufficiently stabilize their economies which has given rise to a debate about deeper fiscal integration in Europe. In this paper, we analyze the redistributive and stabilizing effects of two scenarios of fiscal integration in the Eurozone, namely the introduction of i) a joint tax and transfer system that replaces ...

We apply stochastic dominance tests to investigate trends in inequality in Australia over the period 1983 to 1998. Results show significant levels of inequalities in the income and expenditure distributions for the population as a whole as well as within population groups. We further find that the impact of the government’s tax and transfer redistribution scheme varied greatly among the differe...

The family Quotient: a Tax Structure Consistent with the Relative Lorenz Criterion by Patrick Moyes and Alain Trannoy When households are identical in all characteristics other than income, an average rate of taxation increasing with primary income guarantees that disposable income is more evenly distributed than pretax income. This paper studies whether it is possible to obtain a similar findi...

How did modern and centralized fiscal institutions emerge? We develop a model that explains (i) why pre-industrial states relied on private individuals to collect taxes; (ii) why after 1600 both England and France moved from competitive methods for collecting revenues to allocating the right to collect taxes to a small group of financiers—an intermediate institution that we call cabal tax farmi...