IDEAS home Printed from https://ideas.repec.org/a/bla/rdevec/v4y2000i3p340-352.html
   My bibliography  Save this article

Size Does Matter: Technical and Scale Efficiency in Indian State Tax Jurisdictions

Author

Listed:
  • Colin Thirtle
  • Bhavani Shankar
  • Puneet Chitkara
  • Somnath Chatterjee
  • Madhu S. Mohanty

Abstract

Data Envelopment Analysis (DEA) is used to measure tax efficiency in 15Indian states from 1980/81 to 1992/93. Tax efficiency is shown to be conditional on state gross domestic product (SDP), agriculture’s share in state SDP,and a poverty index. The considerable remaining efficiency differences areattributable to the small size of some tax jurisdiction rather than to technical inefficiency. Multilateral Malmquist tax indices show that six of the states were consistently efficient, while three were consistently inefficient. Tax efficiency grew at an average annual rate of 3.9% until 1986/87, but growth ceased after that date for all but two states.

Suggested Citation

  • Colin Thirtle & Bhavani Shankar & Puneet Chitkara & Somnath Chatterjee & Madhu S. Mohanty, 2000. "Size Does Matter: Technical and Scale Efficiency in Indian State Tax Jurisdictions," Review of Development Economics, Wiley Blackwell, vol. 4(3), pages 340-352, October.
    • Handle: RePEc:bla:rdevec:v:4:y:2000:i:3:p:340-352
    DOI: 10.1111/1467-9361.00099
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/1467-9361.00099
    Download Restriction: no
    File URL: https://libkey.io/10.1111/1467-9361.00099?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Jenifer Piesse & Colin Thirtle, 1997. "Sector-Level Efficiency and Productivity in Hungarian Primary, Secondary, and Tertiary Industries, 1985-1991," Eastern European Economics, Taylor & Francis Journals, vol. 35(4), pages 5-39, August.
    2. Gilbert, Guy & Picard, Pierre, 1996. "Incentives and optimal size of local jurisdictions," European Economic Review, Elsevier, vol. 40(1), pages 19-41, January.
    3. Buiter, Willem H. & Patel, Urjit R., 1992. "Debt, deficits, and inflation: An application to the public finances of India," Journal of Public Economics, Elsevier, vol. 47(2), pages 171-205, March.
    4. Piesse, Jenifer & Thirtle, Colin & Turk, Jernej, 1996. "Efficiency and Ownership in Slovene Dairying: A Comparison of Econometric and Programming Techniques," Journal of Comparative Economics, Elsevier, vol. 22(1), pages 1-22, February.
    5. Caves, Douglas W & Christensen, Laurits R & Diewert, W Erwin, 1982. "Multilateral Comparisons of Output, Input, and Productivity Using Superlative Index Numbers," Economic Journal, Royal Economic Society, vol. 92(365), pages 73-86, March.
    6. Goel, Rajeev K & Nelson, Michael A, 1998. "Corruption and Government Size: A Disaggregated Analysis," Public Choice, Springer, vol. 97(1-2), pages 107-120, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Subal Kumbhakar & Raquel Ortega-Argilés & Lesley Potters & Marco Vivarelli & Peter Voigt, 2012. "Corporate R&D and firm efficiency: evidence from Europe’s top R&D investors," Journal of Productivity Analysis, Springer, vol. 37(2), pages 125-140, April.
    2. Zárate Marco, Anabel & Vallés Giménez, Jaime, 2019. "Regional tax effort in Spain," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 13, pages 1-32.
    3. Jaime Valles-Gimenez & Anabel Zarate-Marco, 2017. "Tax Effort of Local Governments and its Determinants: The Spanish Case," Annals of Economics and Finance, Society for AEF, vol. 18(2), pages 323-348, November.
    4. Nguyen, Trang T.T. & Prior, Diego & Van Hemmen, Stefan, 2020. "Stochastic semi-nonparametric frontier approach for tax administration efficiency measure: Evidence from a cross-country study," Economic Analysis and Policy, Elsevier, vol. 66(C), pages 137-153.
    5. Elena Villar Rubio & Pedro Enrique Barrilao González & Juan Delgado Alaminos, 2017. "Relative efficiency within a tax administration: The effects of result improvement," Revista Finanzas y Politica Economica, Universidad Católica de Colombia, vol. 9(1), pages 135-149, February.
    6. Finn Førsund & Dag Edvardsen & Sverre Kittelsen, 2015. "Productivity of tax offices in Norway," Journal of Productivity Analysis, Springer, vol. 43(3), pages 269-279, June.
    7. José Manuel Cordero & Carlos Díaz Caro & Francisco Pedraja Chaparro & Cristina Polo Fernández, 2020. "Tributos cedidos y eficiencia en la gestión tributaria de las Comunidades Autónomas," Hacienda Pública Española / Review of Public Economics, IEF, vol. 232(1), pages 75-112, March.
    8. Day‐Yang Liu & Hsin‐Hsin Yao & Wen‐Min Lu & Cheng‐Hsien Lin, 2020. "Impulse response function analysis of the impacts of land value‐added tax policy on government performance," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 41(6), pages 1020-1032, September.
    9. Huang, Shwu-Huei & Yu, Ming-Miin & Huang, Ya-Ling, 2022. "Evaluation of the efficiency of the local tax administration in Taiwan: Application of a dynamic network data envelopment analysis," Socio-Economic Planning Sciences, Elsevier, vol. 83(C).
    10. Avellón Naranjo, Blanca & Prieto Jano, María José, 2017. "Los factores determinantes de la eficiencia en la gestión de las Administraciones Tributarias Autonómicas españolas/The Determinants of Efficiency in the Tax Management of the Spanish Regional Tax Adm," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 35, pages 749-776, Agosto.
    11. Luis R. Murillo‐Zamorano, 2004. "Economic Efficiency and Frontier Techniques," Journal of Economic Surveys, Wiley Blackwell, vol. 18(1), pages 33-77, February.
    12. Longjin Chen, 2021. "Tax enforcement interactions among Chinese provinces: A frontier and spatial analysis," Growth and Change, Wiley Blackwell, vol. 52(1), pages 332-348, March.
    13. Juan Aparicio & Jose Manuel Cordero & Carlos Díaz-Caro, 2020. "Efficiency and productivity change of regional tax offices in Spain: an empirical study using Malmquist–Luenberger and Luenberger indices," Empirical Economics, Springer, vol. 59(3), pages 1403-1434, September.
    14. repec:cuf:journl:y:2017:v:18:i:1:valles-gimenez is not listed on IDEAS
    15. Shwu-Huei Huang & Ming-Miin Yu & Ming-Shenq Hwang & Yu-Shan Wei & Ming-Huei Chen, 2017. "Efficiency of Tax Collection and Tax Management in Taiwan's Local Tax Offices," Pacific Economic Review, Wiley Blackwell, vol. 22(4), pages 620-648, October.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. repec:bla:rdevec:v:4:y:2000:i:3:p:340-52 is not listed on IDEAS
    2. Doucouliagos, Hristos & Hone, Phillip, 2000. "The efficiency of the Australian dairy processing industry," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 44(3), pages 1-16.
    3. Barnett, William A. & Erwin Diewert, W. & Zellner, Arnold, 2011. "Introduction to measurement with theory," Journal of Econometrics, Elsevier, vol. 161(1), pages 1-5, March.
    4. Jan Kluge & Sarah Lappöhn & Kerstin Plank, 2023. "Predictors of TFP growth in European countries," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 50(1), pages 109-140, February.
    5. Zaim, Osman & Uygurtürk Gazel, Tuğçe & Akkemik, K. Ali, 2017. "Measuring energy intensity in Japan: A new method," European Journal of Operational Research, Elsevier, vol. 258(2), pages 778-789.
    6. Zanella, Andreia & Camanho, Ana S. & Dias, Teresa G., 2015. "Undesirable outputs and weighting schemes in composite indicators based on data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 245(2), pages 517-530.
    7. Shuhua Zhang & Bingjun Li & Yingjie Yang, 2021. "Efficiency Analysis of Scientific and Technological Innovation in Grain Production Based on Improved Grey Incidence Analysis," Agriculture, MDPI, vol. 11(12), pages 1-21, December.
    8. Mairesse, Jacques & Mohnen, Pierre, 2001. "To Be Or Not To Be Innovative: An Exercise In Measurement," Research Memorandum 038, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
    9. Onel, Gulcan & Utkulu, Utku, 2006. "Modeling the long-run sustainability of Turkish external debt with structural changes," Economic Modelling, Elsevier, vol. 23(4), pages 669-682, July.
    10. Wolfgang Keller, 2002. "Geographic Localization of International Technology Diffusion," American Economic Review, American Economic Association, vol. 92(1), pages 120-142, March.
    11. Aghayi, Nazila & Maleki, Bentolhoda, 2016. "Efficiency measurement of DMUs with undesirable outputs under uncertainty based on the directional distance function: Application on bank industry," Energy, Elsevier, vol. 112(C), pages 376-387.
    12. Henry van der Wiel & Harold Creusen & George van Leeuwen & Eugene Van der Pijll, 2012. "The Dutch Productivity Performance: Cross Your Border and Look Around," Chapters, in: Matilde Mas & Robert Stehrer (ed.), Industrial Productivity in Europe, chapter 14, Edward Elgar Publishing.
    13. Zeeshan Noor Siddiqui, 2017. "Understanding the Linkage among Public Procurement (PP), Corruption, and Tax Morale (TM) Through Agency Theory (AT): A Review," Business & Economic Review, Institute of Management Sciences, Peshawar, Pakistan, vol. 9(3), pages 258-288, September.
    14. Huther, Jeff & Shah, Anwar, 2000. "Anti-corruption policies and programs : a framework for evaluation," Policy Research Working Paper Series 2501, The World Bank.
    15. Sourafel Girma & Holger Görg, 2022. "Productivity effects of processing and ordinary export market entry: A time‐varying treatments approach," Review of International Economics, Wiley Blackwell, vol. 30(3), pages 836-853, August.
    16. Krasachat, W., 2000. "Production Structure and Technical Change in Thai Agriculture, 1972-1994," 2000 Conference (44th), January 23-25, 2000, Sydney, Australia 123688, Australian Agricultural and Resource Economics Society.
    17. Qu, Guangjun & Sylwester, Kevin & Wang, Feng, 2016. "Anticorruption and Growth: Evidence from China," MPRA Paper 72190, University Library of Munich, Germany.
    18. Ben Lockwood, 2008. "Voting, Lobbying, And The Decentralization Theorem," Economics and Politics, Wiley Blackwell, vol. 20(3), pages 416-431, November.
    19. Ito, Keiko, 2004. "Foreign ownership and plant productivity in the Thai automobile industry in 1996 and 1998: a conditional quantile analysis," Journal of Asian Economics, Elsevier, vol. 15(2), pages 321-353, April.
    20. Matthias Arnold, Jens & Javorcik, Beata S., 2009. "Gifted kids or pushy parents? Foreign direct investment and plant productivity in Indonesia," Journal of International Economics, Elsevier, vol. 79(1), pages 42-53, September.
    21. Fredriksson, Per G. & List, John A. & Millimet, Daniel L., 2003. "Bureaucratic corruption, environmental policy and inbound US FDI: theory and evidence," Journal of Public Economics, Elsevier, vol. 87(7-8), pages 1407-1430, August.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:rdevec:v:4:y:2000:i:3:p:340-352. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=1363-6669 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.