Taxation and the Limits of Government

1. Front Matter

   Pages i-vii

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2. Background

   1. Front Matter

      Pages 1-1

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   2. An Introduction to Reform and the Economic Effects of Taxation in New Zealand

      • Gerald W. Scully, Patrick J. Caragata

      Pages 3-16

3. Taxation and Economic Growth

   1. Front Matter

      Pages 17-17

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   2. The Optimal Size Fiscal State

      • Gerald W. Scully

      Pages 19-36

   3. Taxation and Economic Growth in New Zealand

      • Johannah Branson, C. A. Knox Lovell

      Pages 37-88

   4. The Effect of Aggregate Tax Levels on Output Growth in New Zealand

      • John Small, Patrick J. Caragata

      Pages 89-96

4. The Marginal Cost of Taxation

   1. Front Matter

      Pages 97-97

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   2. The Deadweight Costs of Taxation in New Zealand

      • W. Erwin Diewert, Denis A. Lawrence

      Pages 99-113

   3. The Distribution of Estimates of the Marginal Costs of Taxation

      • John P. Small

      Pages 115-126

5. Taxation and Employment

   1. Front Matter

      Pages 127-127

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   2. Taxation and Employment in New Zealand

      • Gerald W. Scully

      Pages 129-143

6. Income Distribution

   1. Front Matter

      Pages 145-145

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   2. Income and Tax Distributions for Individual New Zealand Taxpayers 1991–94

      • Paul V. Dunmore

      Pages 147-172

   3. The Equity-Efficiency Trade-Off in New Zealand: A Preliminary Analysis

      • Gerald W. Scully, Adolf H. Stroombergen

      Pages 173-191

7. The Hidden Economy

   1. Front Matter

      Pages 193-193

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   2. Modelling the Hidden Economy and the Tax-Gap in New Zealand

      • David E. A. Giles

      Pages 195-219

   3. Simulating the Relationship between the Hidden Economy and the Tax Level and Tax Mix in New Zealand

      • Patrick J. Caragata, David E. A. Giles

      Pages 221-240

8. Risk Profiling and Effective Tax Rates

   1. Front Matter

      Pages 241-241

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   2. Modelling the Tax Compliance Profiles of New Zealand Firms: Evidence from Audit Records

      • David E. A. Giles

      Pages 243-269

Recently, a research program on the compliance costs and the economic effects of taxation in New Zealand was undertaken within the Inland Revenue Department. Taxation and the Limits of Government is an edited volume which presents the best of the papers that emerged from that research program. Topical coverage includes a brief history of reform in New Zealand, the effect of taxation on economic growth, the marginal cost of taxation, the employment effects of taxation, income distribution, the hidden economy and taxation, tax compliance, taxation and bankruptcy, and estimates of effective tax rates.

• compliance
• compliance costs
• distribution
• economic growth
• economy
• efficiency
• employment
• growth
• income distribution
• modeling
• regression
• research
• science and technology
• stress
• taxation

• The University of Texas at Dallas, USA

  Gerald W. Scully

• McCallum Petterson Financial Diagnostics Ltd., New Zealand

  Patrick J. Caragata

Gerald W. Scully is Professor of Economics in the School of Management at the University of Texas at Dallas, Richardson, USA. In 1996 he was Visiting Professor at the Inland Revenue Department, Wellington, New Zealand. Patrick James Caragata received his PhD in political economy from the University of Toronto in 1981. In June 1988 he moved to New Zealand and became chief economist at the Ministry of Energy where he redesigned the royalty regime for petroleum. His book Resource Pricing: Rent Recovery Options for New Zealand's Energy and Mineral Industries (1989) is now used as a standard reference tool for designing resource royalties in Asia and Latin America. In 1991 he became chief tax policy adviser with Inland Revenue in New Zealand. He redesigned the petroleum mining taxation regime in 1991, and worked extensively on international tax issues for several years. In 1994 he initiated the work to monitor the Health of the Tax System. As special adviser taxation economics he led the production of 37 working papers and the Report on the Health of the Tax System in September 1997. In October 1997 Dr. Caragata was appointed managing director of McCallum Petterson Financial Diagnostics Ltd. in Wellington. In 1998 he edited The Economic and Compliance Consequences of Taxation: A Report on the Health of the Tax System in New Zealand, also published by Kluwer Academic Publishers.

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