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The political economy of revenue pressure and tax collection efficiency

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  • Satya P. Das

Abstract

Purpose - The purpose of this paper is to develop a political‐economy model to show how political imperatives lead to reforms in administering direct tax collection. Design/methodology/approach - A static, political‐gain approach was used to model employment in the tax collection sector and then the implications of an increase in revenue pressure were derived through a comparative statics method. Findings - As revenue pressure increases, the “political value” in terms of granting employment falls and thus efficiency resulting from purely political motives decreases. Originality/value - This paper is an original work.

Suggested Citation

  • Satya P. Das, 2011. "The political economy of revenue pressure and tax collection efficiency," Indian Growth and Development Review, Emerald Group Publishing Limited, vol. 4(1), pages 38-52, April.
    • Handle: RePEc:eme:igdrpp:v:4:y:2011:i:1:p:38-52
    DOI: 10.1108/17538251111124990
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    References listed on IDEAS

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